innovation through technology

Innovationthrough and

bytechnology

1. Innovation in action2. Why should you innovate?3. What can you innovate?4. How can you innovate?5. Innovation as a cycle6. Start-up or organic?7. Roadblocks – tips & tricks

Innovation in action

Innovation is at the heart of the use of MIS.Technology has evolved greatly and continues to

do so,creating new markets, products and processes

at every turn of the road,therefore changing the competitive landscape

and the bases for competition.Mastering Information Systems therefore is key

to sustaining the thrust towardsinnovation based competition

which is the key to company success nowadays.

"If you rethink this problems from the ground up you can come up with innovative solutions"Google's R&D 2102 budget = $ 7+ BLN"Larry and Sergey are behind this 100%"

GOOGLE X-LAB

http://youtu.be/-XE8Cq-ncj0

http://www.youtube.com/watch?feature=player_embedded&v=-XE8Cq-ncj0

Ге́7нрих Сау́7лович Альтшу́7лле́р

Genrikh Saulovich Altshuller (1926,1998)The inventor of TRIZBiography

Working as a clerk in a Russian patent office Studied 200,000 patents Found out very few of them are real inventions, most are just

improvements The same set of rules are applied over and over to discover

something new = the 40 Inventive Principles = the TRIZ method An inventive solution does not compromise following a trade-off,

but rather eliminates the contradiction

THE TRIZ METHOD

http://www.aitriz.org/articles/TRIZFeatures/30383039-4D6973687261.pdf

http://en.wikipedia.org/wiki/Patent_examiner

1. Competitors are exploiting technology to innovate, regardless2. Technology is advancing, someone will exploit the opportunity

sooner or later3. Product commoditization as an effect of innovation is pushing down

prices and eroding competitive advantages4. Adjacent markets are producing substitutive products as an effect

of new capabilities5. Innovation is needed for a new comer to enter or to gain a decent

positioning on a market6. The business model all resolves around innovation (e.g. VC firms)7. The company owns a technology which "per se" can be applied to

different market/products

COMPANIES NEED TO INNOVATE

Ask a company executive about his agenda, how much time did he spend last week on innovation, rather than on sustaining what's already there?

WHAT CAN YOU INNOVATE?

Products: we shall do something different Process: we shall do something differently Business models: we shall be something

else entirely

Through and bytechnology

Technology abilitates the production of something completely new

Technology allows to do something "better" (faster, cheaper, with a shorter time to market, etc.)

PRODUCT SIDE

A brand new product Product features Product positioning Target market Usage habits

PROCESS SIDE

New production machines Process automation New organization (e.g. functional vs. matrix) Insourcing vs. outsourcing Talents and competencies

BUSINESS MODEL

Revenue share between different businesses

Product portfolio Company values/success criteria Geographical spread

APPROACHES TO INNOVATION

TQM and Six Sigma BPR The blue ocean strategy The lean startup

TQM

Based on small incremental changes Greater personnel control and ownership

leads to wider acceptance Vastly popular in the 80s,

a lever of the riseto competitivenessof the Japanese industry

SIX SIGMA

Continuous efforts to achieve stable and predictable process results are of vital importance to business success.

Manufacturing and business processes have characteristics that can be measured, analyzed, improved and controlled.

Achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management.

It seeks to eliminate defects from any process.

BLUE OCEAN STRATEGY

A 2005 book from the INSEAD, heavily case based.

Red oceans are traditional markets wherecompanies compete on a traditional basis (product, cost, differentiation etc.).Inevitably this leads to commoditizationand cutthroat competition.

By contrast blue oceans is where the competitive basis is redefined by invention that overcomes set rules and traditional boundaries, creating new space = "value innovation".

THE LEAN STRATEGY

A 2011 book by Eric Ries incorporating his experience and thoughts in start-ups.Specifically originated from high-tech companies.An embodiment of Silicon Valley ethos and beliefs.

Minimum Viable Product Continuous Deployment - based on "agile" way

of thinking and specific sw development techniques

Focus on analytics - pointedly A/B testing Actionable metrics Pivot

AGILE PROCESSES

Agile processes are processes that iterate through a constant renewal cycle of design, deliver, evaluate, redesign, and so on.

Ultimate goal for some are agile processes that reconfigure themselves as they ‘learn.

For a process to be agile necessitates a high degree of use of IT.

Processes that run entirely on the Internet are candidates for becoming agile processes

1. Innovation in action2. Why should you innovate?3. What can you innovate?4. How should you innovate?5. Innovation as a cycle6. Start-up or organic?7. Roadblocks – tips & tricks

INNOVATION AS A CYCLE

The number of transistors on integrated circuits double every two years (Moore’s law)

This s the basis of technology driven innovation It’s embedded And it means that it's always happening, rather

than in discontinuous waves. Therefore "Innovation is a must"; apart from a

few top companies that determine the course of innovation, all the other need to comply with what is happening around them.

DRIVERS OF INNOVATION

Start-ups, VC push The big 5s (e.g. big data) Core hardware technology New applications, new devices (e.g. Kinect) Consumers invent new usage patterns (e.g.

texting) Individuals creativity (e.g. BitTorrent)

LEARNING TO INNOVATE

So the problem is not innovating; it's rather learning to innovate.You need to create a "learning organization" by:

Hiring, recognizing, rewarding talent Creating a "permission to fail" culture Allowing time and resources for discovery (e.g 20% time

rule at Google) Reducing hierarchical distance Developing a well set up approach to innovation (project

management) Creating shared metrics that define success

You cannot buy your way to innovation; innovation is something you become, not

something you insert or attach.Still, innovation through technology requires

the acquisition of a distinct set of systems and competences that by definition were not there

before.Therefore there are a number of paths you

can pursue.

PRACTICAL PATHS TO INNOVATION

1. Buy a company that owns what you want (patents, systems, competences, sw or hw, etc.)

2. Buy talent on the HR market3. Partner with a company that

complements with you4. Use consultants that can teach you the

way5. Find talent in your own ranks6. Specialize a unit inside the company

REAL LIFE HANDS ON ISSUES (1/2)

The first person that needs innovation is ... yourself - the management team is old fashioned or at least not "à la page"

Most of the company people grew up in a pre-Internet revolution world

The set of rules and standards in the company stifles innovation (bureaucratic, hierarchical, centralized, etc.)

Some (a lot) of people have something (a lot) to lose from innovation

Most of the company resources are devoted to maintaining the core business who is under fire; innovation remains a night job

REAL LIFE HANDS ON ISSUES (2/2)

It's hard to attract talent that will run to more fashionable (innovative) companies

Metrics defining success are unclear; this allows individuals to under perform

Innovation calls for a lot of bells and whistles that in reality hinder and hide real matter-of-fact efforts

Innovation was born in a period of strong economy; negative cycles make it necessary to protect young and still weak offsprings