Innova&on  Today  and  Tomorrow  |  Some  Thoughts  Dr.  Tim  Jones  |  21  May  2014  

Innova&on  Impact  Most  now  agree  that,  across  many  sectors,  successful  innova?on  is  a  

driver  of  sustained  organic  growth  and  hence  increases  corporate  value  

Innova&on  Focus  The  nature  of  innova?on  has  however  changed  and  in  some  areas  

shiBed  from  a  product  /  technology  focus  to  process  /  business  model  

Focus  for  This  A<ernoon  Today  we  will  look  at  innova?on  changes  through  two  lenses:    Innova&on  Leaders  (What  others  are  doing  well  and  why)    Future  Agenda  (Changes  and  challenges  on  the  horizon)  

WWW.INNOVATIONLEADERS.ORG

The  Innova&on  Leaders  Research  For  the  past  twelve  years  we  have  analysed  the  innova?on    

performance  of  over  2000  firms  and  focused  most  on  a  ra?o  of  innova?on  impact  to  the  resources  being  deployed  

 Each  sector  algorithm  is  based  on:    Innova?on  Output                              Innova?on  Input  

Company  Capabili&es  

Innova&on  Input   Innova&on  Output  

This  provides  what  many  see  to  be  the  most  accurate  assessment  of  current  innova?on  impact

Rolls-­‐Royce    Rolls-­‐Royce  manages  deep,  long-­‐term  research  partnerships  and    has  benefited  by  shiBing  from  selling  product  to  leasing  power  

Narayana  Hrundayalaya    Narayana  Hrundayalaya  leads  the  world  in  hyper-­‐efficient    

cardiac  surgery  through  integrated  process  and  business  innova?on  

LEGO  LEGO  has  grown  to  be  the  global  #2  toy  company  through  a    deep  self-­‐belief  in  a  unique  ability  to  invent  the  future  of  play  

ARM  ARM  has  become  dominant  in  smart-­‐phone  chip  design  by  building  

communi?es  based  on  technology  sharing  and  focusing  on  IP    

Other  IP  Companies  of  Note  Alongside  the  success  of  ARM’s  licensing  business  model,  many  are  interested  in  other  knowledge  shiBs  such  as  how  Amazon  and  Google  

have  built  and  exploited  their  IP  por^olios  over  the  past  decade  

#  US  Patents  Granted  (USPTO)  

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1.  Clear  Ambi&on  –  See  what  is  the  prize,  where  it  is  and  how  to  get  it  

2.  Dis&nc&ve  Competence  –  Know  what  is  the  real,  unique  and  defendable  capability  

3.  Innova&on  Priority  –  Clear  on  where  and  where  not  to  innovate  and  why  

4.  Unique  Insight  –  Place  informed  bets  due  to  non-­‐standard  perspec?ves  

5.  Organiza&onal  Confidence  –  Self  belief  that  they  can  do  it  beger  than  their  peers  

 

Key  Insights  From  these  and  other  examples  we  can  see  the  things  that    make  the  difference  for  successful  and  sustained  growth  

Confirming  the  Financial  Impact  of  Innova&on  A  por^olio  based  on  the  innova?on  leaders  returned  14.5%  CAGR  over  the  past  decade  and  is  now  also  the  basis  of  a  new  investment  fund  

Future  Agenda  The  Future  Agenda  is  the  world’s  largest  open  foresight    programme  that  engages  expert  input  from  over  1500    organisa?ons  to  beger  understand  the  next  decade  

Looking  Forwards  Organisa?ons  increasingly  want  to  iden?fy  and  understand  both  the  an?cipated  and  unexpected  changes  from  within  and  outside  their  

sector  so  that  they  can  be  beger  prepared  for  the  future  

Increased  Environmental  Stresses  In  an  increasingly  resource  constrained  world,  organisa?ons  recognise  the  planetary  stresses  and  seek  to  beger  adapt  to  the  implica?ons  of  climate  change:  Protec?ng  the  wider  ecosystem  becomes  a  priority.  

Increased  Societal  Stresses  Con?nued  urbanisa?on  and  rising  migra?on  highlight  the  widening  gap  between  rich  and  poor  in  many  communi?es,  while  ageing  popula?ons  and  rising  youth  unemployment  add  extra  demographic  pressures.  

Changing  Business  Environment  A  more  connected,  networked  economy,  the  needs  of  new  middle  class  consumers  and  regulatory  shiBs  combine  with  the  impact  of  personal  

and  country  debt  to  blur  the  boundaries  of  the  organisa?on  and  society.  

Big  Collabora&on    Addressing  many  of  the  major  future  challenges  relies  on  deeper    and  wider  collabora?on  between  organiza?ons  with  no  lead    

company  and  value  crea?on  replaced  by  new  type  of  recogni?on.  

Innova&on  and  Intellectual  Property  Innova?on  is  increasingly  moving  beyond  the  established  arenas  of  

product  and  technology  development  where  IP  has  tradi?onally  had  a  major  role  to  play  -­‐  we  need  to  understand  poten?al  future  impact.  

Differen&ated  Knowledge  As  informa?on  is  shared  globally  and  insight  is  commodi?zed,    the  best  returns  go  to  those  who  can  produce  non-­‐standard,  

differen?ated  knowledge.      

The  End  of  IP?  Following  change  in  the  music  industry,  technologies  such  as    3D  prin?ng  are  decoupling  the  produc?on  of  content  from    

the  original  creator  and,  in  doing  so,  IP  is  becoming  irrelevant.  

Business  Model  Open  Innova&on  Increasing  sector-­‐to-­‐sector  transfer  of  know-­‐how  independent    

of  IP  enables  successful  approaches  to  be  adopted  and    adapted  without  value  transfer  between  par?es.  

Projects  Worth  Working  For    In  a  world  where  innova?on  talent  is  global,  fluid  and  agracted  by    

the  challenge  or  reputa?on  more  than  the  paycheck,  the  winners  will    be  the  organiza?ons  that  provide  the  most  interes?ng  projects.  

         More  Details  and  Informa&on    Innova?on  Leaders:    www.innova?onleaders.org    Future  Agenda:      www.futureagenda.org    Tim  Jones:          hgp://uk.linkedin.com/in/innova?onstrategy