leadership and innovation
DESCRIPTION
Presented to masters degree classes in computer science at Trinity College.TRANSCRIPT
University of Dublin Trinity College
Leadership & Innova0on
Presenta)on to M.Sc. classes
13th February 2013
Paul Woods
Background • Commercial experience
Led teams winning customer service and ICT team of the year.
Successful design, launch and scaling of many products.
Direct transac)on experience; acquisi)ons and sales.
Integrated start-‐up into Vodafone in 2008.
Opera)ons management (IT / Service / logis)cs / call centres).
• Technical experience
Strong knowledge of engineering, product and process design.
Managed P&L of eircom’s infrastructure division.
Programmed fault tolerant distributed systems.
Evaluated IPR ranging from encryp)on, early cancer detec)on,
hea)ng, energy, food preserva)on …
Leadership • Leadership and management differ
Leaders role is to set a vision and inspire and mo)vate a team desire to execute.
Managers role is to plan, organise and coordinate.
Natural born leaders enjoy leadership and developing the poten)al of their followers.
• Leadership poten)al can be developed
Develop innate knowledge of weaknesses.
Challenge yourself to con)nuously develop.
• How do leaders you admire lead and behave?
What values do they hold?
How do they start and finish their day?
Strategic vision: Amazon versus Apple?
Innova)on • Innova)on comes from the La)n word innovare: “to change”
Passion is key to innova)on, willingness to go beyond the status quo.
Lack of innova)on can quickly damage large companies; Microsoe, HP, Dell …
• Difficult tradeoff in ensuring business focus while retaining innova)on
This tradeoff usually provides gaps for new start-‐ups.
Many corporate companies allow start-‐ups take the risk and acquire if successful.
Understanding value-‐add key • Problems that can be solved
Iden)fying new markets or beher products / services for exis)ng markets.
Social networks, a new market based on humanity’s innate social dimension.
A Kindle allows you to carry thousands of books.
• Opera)ng efficiency
Opera)ng efficiency can offer value-‐add, either due to lower overheads or directly in product design.
A drone can pull a higher g force, fly for longer, an operator can manage many, and that operator isn’t put in danger.
• Ecosystem
Keystone strategy, developing an ecosystem that acts as a biosphere for growth.
Ensuring clear / stable incen)ves to join ecosystem! Example app developers.
Start-‐up culture / team • Convex lens leadership
Think big! Choreograph team like an orchestra.
Darwinian selec)on. Limited resources / )me, understand when to pivot / adapt.
• Team
Many start-‐up CEOs would not make good corporate CEOs and vice versa.
Start-‐up environment only suited to high-‐energy individuals.
It’s easy to find a good idea, pulng in place a great team is hard.
Highly incen)vise team for success, rapidly deal with underperformance.
• Culture
Culture of ‘demo or die’.
‘Will to win’ needs to be cul)vated and protected.
Vectors of differentiation • There are many vectors of differen)a)on including
Free to customer (Google).
Ease of use.
Improving customers produc)vity.
Design aesthe)cs (Apple).
Reducing customers total cost of ownership (cloud compu)ng).
Unique fundamental capabili)es (Kindle versus tablet).
Ecosystem (Amazon / Facebook).
Low cost (airlines).
Thinking outside the box • If a baby incubator cost $25,000, could a product with equivalent benefit be made for $25?
Yes! Engineer insulated infant sleeping bag with wax hea)ng module.
• CLV for the customer (i) using current service can be denoted as:
Where
CFi,k = the net cash flow
D = discount factor
K = )me period
• Time period (K) = Customer length of service (LOS)
Number of transac)ons a customer will make.
Impacted by contract dura)on, compe))veness & special promo)ons.
Long LOS not necessarily correlated to higher CLV.
Acquire customers when CLV > customer acquisi)on costs.
Understanding customer life)me value
• Current value doesn’t provide insight into poten)al value via up/cross selling of add-‐ons or new products.
• Poten)al customer value can also be calculated as:
Where
i = customer who uses service j from compe))ve op)ons available.
ij = profit company can make from customer i.
• Decision tree can be used to evaluate poten)al value for distribu)on of customers, taken into account probability of up-‐selling op)ons.
• Acquisi)on threshold: weighted poten)al value > acquisi)on costs.
Understanding poten)al value
Super trends highlight opportunity ① Popula)on growth and aging
New healthcare products / services and approaches to preventa)ve care.
② Globalisa)on and urbanisa)on
Smart ci)es, grids & water management.
New forms of ci)zen protec)on, ways of working …
③ Intelligence, knowledge and innova)on
Designing and interpre)ng big data.
Decision support tools that can take increasing variety of inputs.
④ Environmental and resource strain
New technologies to op)mise and control use of scarce resources.
Conclusions • Leadership is a choice
Many are born with leadership traits, but skills can also be developed / honed.
Iden)fy key weaknesses and embrace opportuni)es for personal growth.
• Innova)on requires passion
Innovators don’t just consider rewards, love to challenge the status quo.
• Customer value
Understanding value-‐add is key to developing a successful company.
Consider economics of customer acquisi)on and prospec)ve life)me value.
• Super trends
Several super trends emerging, opening up opportuni)es for you all!