Innovation through technology

391 views
326 views

Published on

Slides from my lectures on Management Information Systems at Università Cattolica di Milano. More at www.alessandrocederle.com

Published in: Business, Technology
2 Comments
1 Like
Statistics
Notes
No Downloads
Views
Total views
391
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
13
Comments
2
Likes
1
Embeds 0
No embeds

No notes for slide

Innovation through technology

  1. 1. 1. 2. 3. 4. 5. 6. 7. Innovation in action Why should you innovate? What can you innovate? How can you innovate? Innovation as a cycle Start-up or organic? Roadblocks – tips & tricks
  2. 2. 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 towards innovation based competition which is the key to company success nowadays.
  3. 3. GOOGLE X-LAB http://youtu.be/-XE8Cq-ncj0 "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%"
  4. 4. THE TRIZ METHOD  нрих лович ллер Genrikh Saulovich Altshuller (1926,1998) The inventor of TRIZ Biography      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
  5. 5. 1. 2. 3. 4. 5. 6. 7. Innovation in action Why should you innovate? What can you innovate? How can you innovate? Innovation as a cycle Start-up or organic? Roadblocks – tips & tricks
  6. 6. 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? 1. 2. 3. 4. 5. 6. 7. Competitors are exploiting technology to innovate, regardless Technology is advancing, someone will exploit the opportunity sooner or later Product commoditization as an effect of innovation is pushing down prices and eroding competitive advantages Adjacent markets are producing substitutive products as an effect of new capabilities Innovation is needed for a new comer to enter or to gain a decent positioning on a market The business model all resolves around innovation (e.g. VC firms) The company owns a technology which "per se" can be applied to different market/products
  7. 7. 1. 2. 3. 4. 5. 6. 7. Innovation in action Why should you innovate? What can you innovate? How can you innovate? Innovation as a cycle Start-up or organic? Roadblocks – tips & tricks
  8. 8. 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 by technology Technology abilitates the production of something completely new Technology allows to do something "better" (faster, cheaper, with a shorter time to market, etc.)
  9. 9. PRODUCT SIDE      A brand new product Product features Product positioning Target market Usage habits
  10. 10. PROCESS SIDE      New production machines Process automation New organization (e.g. functional vs. matrix) Insourcing vs. outsourcing Talents and competencies
  11. 11. BUSINESS MODEL     Revenue share between different businesses Product portfolio Company values/success criteria Geographical spread
  12. 12. 1. 2. 3. 4. 5. 6. 7. Innovation in action Why should you innovate? What can you innovate? How can you innovate? Innovation as a cycle Start-up or organic? Roadblocks – tips & tricks
  13. 13. APPROACHES TO INNOVATION     TQM and Six Sigma BPR The blue ocean strategy The lean startup
  14. 14. TQM    Based on small incremental changes Greater personnel control and ownership leads to wider acceptance Vastly popular in the 80s, a lever of the rise to competitiveness of the Japanese industry
  15. 15. 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.
  16. 16. BLUE OCEAN STRATEGY    A 2005 book from the INSEAD, heavily case based. Red oceans are traditional markets where companies compete on a traditional basis (product, cost, differentiation etc.). Inevitably this leads to commoditization and 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".
  17. 17. 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
  18. 18. 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
  19. 19. 1. 2. 3. 4. 5. 6. 7. Innovation in action Why should you innovate? What can you innovate? How should you innovate? Innovation as a cycle Start-up or organic? Roadblocks – tips & tricks
  20. 20. 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.
  21. 21. 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)
  22. 22. 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
  23. 23. 1. 2. 3. 4. 5. 6. 7. Innovation in action Why should you innovate? What can you innovate? How should you innovate? Innovation as a cycle Start-up or organic? Roadblocks – tips & tricks
  24. 24. 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.
  25. 25. PRACTICAL PATHS TO INNOVATION 1. 2. 3. 4. 5. 6. Buy a company that owns what you want (patents, systems, competences, sw or hw, etc.) Buy talent on the HR market Partner with a company that complements with you Use consultants that can teach you the way Find talent in your own ranks Specialize a unit inside the company
  26. 26. 1. 2. 3. 4. 5. 6. 7. Innovation in action Why should you innovate? What can you innovate? How should you innovate? Innovation as a cycle Start-up or organic? Roadblocks – tips & tricks
  27. 27. 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
  28. 28. 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

×