Managing innovations; Creating winning partnerships between University & Industry Shanta R Yapa M Sc (Moratuwa) MBA (Sri J.) Vice President – HRD, OD & Corporate Communications EPIC LANKA GROUP

Importance of managing technology Key to wealth creation for individuals, firms and economies. Profitability, growth and sustainability The US example Population involvement in agriculture

Key to wealth creation for individuals, firms and economies.

Profitability, growth and sustainability

The US example

Population involvement in agriculture

Technology and innovations Any change in technology is defined as an innovation (Christensen, 1996) Types of innovation Incremental, architectural, modular, radical Horizontal and vertical Process Vs product

Any change in technology is defined as an innovation (Christensen, 1996)

Types of innovation

Incremental, architectural, modular, radical

Horizontal and vertical

Process Vs product

Are we innovative? .

Where do we stand? R&D expenditure (as a % of sales) Prominence given ?? Examples from the world Nokia : out of over 60,000 employees 1/3 is engaged in active product development/ R&D Where do we stand? Poor local value addition Poor linkages between industries and sectors of economy

R&D expenditure (as a % of sales)

Prominence given ??

Examples from the world

Nokia : out of over 60,000 employees 1/3 is engaged in active product development/ R&D

Where do we stand?

Poor local value addition

Poor linkages between industries and sectors of economy

A conscious effort is mandatory! .

Theory of technology maturity The rate of performance improvement achievable within a given technological approach declines because of scale phenomena or because of system complexity (sahal, 1981)

The rate of performance improvement achievable within a given technological approach declines because of scale phenomena or because of system complexity (sahal, 1981)

Why university assistance is required? As either of the above makes further progress more difficult the only way to maintain the pace of progress is through radical system redefinition. Commercial firms deploy resources including technology subject to constraints. University does not have such boundaries or limitations in knowledge/technology.

As either of the above makes further progress more difficult the only way to maintain the pace of progress is through radical system redefinition.

Commercial firms deploy resources including technology subject to constraints.

University does not have such boundaries or limitations in knowledge/technology.

When a firm faces ambiguity… Patterns of resource allocation heavily influence the type of innovations in firms (Christensen & Bour, 1996) Despite the market demand for innovations, the ambiguity in using new technology may hinder the opportunities available for a firm. The university has a vast knowledge base to help the firm.

Patterns of resource allocation heavily influence the type of innovations in firms (Christensen & Bour, 1996)

Despite the market demand for innovations, the ambiguity in using new technology may hinder the opportunities available for a firm.

The university has a vast knowledge base to help the firm.

In developing core competencies… Many Asian companies have built up advantages in component markets first and have then leveraged off their superior products to move downstream to build brand share. Why not local firms identify their core competencies and develop core products as a move toward brand building? In developing core competencies a university can play a vital role.

Many Asian companies have built up advantages in component markets first and have then leveraged off their superior products to move downstream to build brand share.

Why not local firms identify their core competencies and develop core products as a move toward brand building?

In developing core competencies a university can play a vital role.

When firms show resistance… Innovations in a way challenge the capabilities (= established ways of doing things) of a firm. Therefore, a strong knowledge backing is essential to convince/be convinced at firm level. Here comes the university.

Innovations in a way challenge the capabilities (= established ways of doing things) of a firm.

Therefore, a strong knowledge backing is essential to convince/be convinced at firm level. Here comes the university.

Managing the process of innovation; The five stages model Imagination Synthesizing Leveraging Application Modification Careful examination of each step will show ample opportunities for university-firm interaction

Imagination

Synthesizing

Leveraging

Application

Modification

Careful examination of each step will show ample opportunities for university-firm interaction

Qualifying Vs winning Qualifying factors Price Quality Delivery Winning factors Speed Flexibility Innovation

Qualifying factors

Price

Quality

Delivery

Winning factors

Speed

Flexibility

Innovation

Why collaborations? Profitability, Growth and Sustainability Knowledge when not in use fades out Lord Buddha Commercializing science needs a strong interaction between university and the firm A winning partnership that promotes innovation will help the university to regain its position not only in the industry or economy; but also in the minds of the public, in a knowledge economy.

Profitability, Growth and Sustainability

Knowledge when not in use fades out

Lord Buddha

Commercializing science needs a strong interaction between university and the firm

A winning partnership that promotes innovation will help the university to regain its position not only in the industry or economy; but also in the minds of the public, in a knowledge economy.

The message Industry is in need of the active support of University in the area of promoting innovations The role of university should not confine to producing entry level graduates We need to look at the models of developed economies Lets get together for winning partnerships!

Industry is in need of the active support of University in the area of promoting innovations

The role of university should not confine to producing entry level graduates

We need to look at the models of developed economies

Lets get together for winning partnerships!

What EPIC has identified… Joint research Sponsored research Technology transfer Industry experts to teach in university University to conduct in-house training @ firm Recognize research contributions Industry training and employment Course/curriculum development

Joint research

Sponsored research

Technology transfer

Industry experts to teach in university

University to conduct in-house training @ firm

Recognize research contributions

Industry training and employment

Course/curriculum development

Thank you! .