Innovative connections final.2010ppt

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  • 1. Innovative Connections
    Mike Parsons and Mary Rose
    October 2010
    1
  • 2. About us
    • Our collaboration
    • 3. Invisible on Everest : Innovation and the Gear Makers (2003)
    • 4. We represent a ‘new combination’
    • 5. Mike Parsons –businessman, Karrimor, OMM Ltd, Innovator in Residence, IEED
    • 6. Mary Rose, academic, business historian
    • 7. Innovation a result not an objective
     
    2
  • 8. Beyond Invisible on Everest
    • Shared knowledge and trust
    • 9. Innovation Courses
    • 10. Innovation for Extremes
    • 11. www.innovation-for-extremes.net
    • 12. A  OMM Ltd a business start-up 2005
    • 13. IEED
    3
  • 14. Overview
    What is innovation and why does it matter?
    Innovation 2010 Buzz Word
    Innovation is not new
    Innovation as a ‘Dance of Two Questions
    Innovation as new combinations
    Innovation and Survival
    Innovation and Global warming
    4
  • 15. Why do governments promote innovation?
    • Engine of economic growth
    • 16. Key to productivity growth and economic prosperity
    • 17. International Competitive Advantage of nations, regions and firms
    • 18. Competitive pressures and innovation
    5
  • 19. What is innovation not?
     
    •  It is not just clever ideas
     
     
     
     
     
    6
  • 20. What Innovation is not
    It is not just new technology
    7
  • 21. What Innovation is not
    • It is not just new products
     
    • It is does not take place in isolation
    • 22. NB the myth of solo inventors
     
    • Innovation means different things to different people
    8
  • 23. What innovation is not
    • It is not just new or new to the world
     
    • It is not the same as invention
    9
  • 24. Inventions v innovations
    • The patent office is full of inventions that never see the light of day.
    • 25. 1-3% were successful
    • 26. These we call innovations because they succeeded and were commercialised
    10
  • 27. So how do inventions become innovations?
    • Process complex and often messy
    • 28. Imagination to see new connections
    • 29. People the heart of innovation
    • 30. Networks of skill and knowledge from outside firm
    • 31. Customers
    11
  • 32. Innovators are not lone geniuses
    • Networks allow:
    • 33. Knowledge and resource sharing
     
     
    12
  • 34. Innovation inside and outside companies
    Not just in R&D Departments of large companies
    13
  • 35. Where does innovation occur?
    • Supply Chain
    • 36. Lead users
    • 37. Collaboration with other companies
    • 38. Collaboration with universities
    • 39. Employees
    14
  • 40. Networks and knowledge sharing
    • Boundary crossing and moving out of silos 
    • 41. Between individuals
    • 42. Between firms
    • 43. Between organisations
    15
  • 44. Innovative connections
    • Isaac Newton:
    • 45. ‘ If I have seen further than other men, it is because I have stood on the shoulders of giants
    16
  • 46. Innovative Connections
    Thomas Edison, Menlo Park, USA
     
    creator of lighting system 
    not the lightbulb
    Great networker;
    with
    investors, 
    scientists,
    politicians
    technicians,
    manufacturers
    17
  • 47. Innovative Connections: Not just new knowledge
    • ‘Anyone who wants to design for the future has to leaf through the past’
       André Malraux
      quoted at the BMW    Museum, Munich
    • Past and present knowledge and skill
    18
  • 48. Why is past important ?
    • Product and process development are path dependent and this affects selection 
    • 49. Combinations of old and new knowledge contribute to innovation
    19
  • 50. Influence of past
    Innovative designs shaped by past knowledge and skills
     
    Remington's First Typewriter
    20
  • 51. Influence of past
    New combinations of old and new can be radical
     
     
     
    Weaving Light                             
    21
  • 52. Why might inventions not become innovations?
    • Solutions to non existent problems
    • 53. High costs
    • 54. Not user friendly
    • 55. No market or user group
    • 56. Ahead of international standards, eg. Fax Machine, 1907
    22
  • 57. Innovation is about more than new products
    23
  • 61. McDonalds
    • Did not invent hamburger
    • 62. Did invent a system of standardised delivery
    • 63. A process innovation
    24
  • 64.
    • Larry Page and Sergey Brin didn’t invent search engines
    • 65. New approach to search engine funded by advertising revenue
    • 66. Business model
    25
  • 67. Innovation is not just 'new to the world'.......
    Radical innovations have significant implications for the environment all companies operate in. 
    Radical innovation  can also occur
    • at the level of the sector
    • 68. even at the level of the individual company
    • 69. Innovation is NOT just 'new to the world' but may be within    -sectors    -individual firmsOften new combinations
    26
  • 70. A different way of thinking about innovation
    These changes could be of 4 types-
    • product or service,
    • 71. process,
    • 72. paradigm (shift from what's known understood and trusted) 
    • 73. positioning (brand)
     
    they may be interrelated degree = ranges between incremental and radical
    27
  • 74. Innovation Space
    ( BUSINESS MODEL)
    ‘PARADIGM’
    (Incremental… radical)
    PRODUCT
    PROCESS
    INNOVATION
    (SERVICE)
    (Incremental… radical)
    (Incremental… radical)
    (Incremental… radical)
    POSITION(brand)
    Source: Tidd.J, Bessant. J, Pavitt. K: Managing Innovation, 3rd ed, Wiley
    28
  • 75. Innovation did not begin with the ‘Information age’ or even the industrial revolution
    29
  • 81. Man's Innovation Journey 
    • 60,000 yrs ago man* left Africa; (fishing skill?)
    • 82. 30,000 yrs ago; central heated caves in the Pyrenees
    • 83. 20,000 yrs ago; end of last great ice age (clothing)
    • 84. 10,000 yrs ago beginning of farming to support  cities and so grew great civilisations............
    • 85. Where? the great river valleys of the Indus, Nile, Euphrates & Tigris, Yangtze, Danube
    • 86. their civilisations came ..............and went
    • 87. why?
    • 88. * 'man' meaning 'anatomically modern humans';  
    30
  • 89. Innovation is about ingenuity, creativity, curiosity and survival
    • What fosters creativity & what stifles it ?
    • 90. rulers 
    • 91. type of society 
    • 92. discontinuity - often of thousand of years
    • 93. progress is neither certain 
    • 94. nor a straight line
    31
  • 95. Creativity and Science
    natural phenomena and their associated technologies long used for controlling and stabilising society
     
    stars for forecasting the seasons, flooding
    geometry for building and measuring land 
     
     
    The Greek civilisation was the first where used for changing
     
    but was lost for a thousand years 
     
    re-emerging - 16th Century renaissance 
     
    32
  • 96. 10th Century China  
    • Cultivation of rice
    • 97. Replacement of the scratch plough with iron plough
    • 98. Seed drills, weeding rake and deep tooth harrow
    33
  • 99. 10th Century China (2)
    • Blast furnaces -1500 years ahead of Europe
    • 100. Textiles – while spinning wheel appeared in China and West at same time (13th century) –it advanced at a faster rate in China and applied power to yarn production multiple spinning frame
    • 101. Water power –again paralleled Europe but 8th century AD Chinese were using hydraulic trip hammers, 1280 vertical water wheel
    34
  • 102. 10th Century China (3)
    • 10th and 11th centuries Chinese built accurate clocks
    • 103. 960 AD the compass
    • 104. Ocean going junks
    • 105. Chinese invented paper – 1000 years before it reached the West
    • 106. Porcelain
    • 107. Gunpowder 10th century AD
    35
  • 108. Yet this wave of innovation did not evolve further what went wrong ?
    • No such thing as physical property rights let alone rights to inventions
    • 109. Movable type printing press of much less significance with Chinese characters
    • 110. Increasing isolation 
    36
  • 111. What can be learnt from the Chinese example ?
    • Intellectual Property rights are of crucial importance to innovation.
    • 112. Innovation may be evolutionary but there are discontinuities.
    • 113. Established innovative nations and companies can lose momentum
    • 114. Innovations can be still-born
    • 115. Isolation can eradicate innovation
    • 116. Innovation needs an open minded and tolerant society.
    37
  • 117. Path dependence and rail tracks
    • 60% world railways standard gauge : width 1,435mm or 4 ft 8½in Why?
    38
  • 118. Deepening wheel ruts and the width of a carthorse
    • Roman Chariots
    • 119. Wheel ruts and broken axles
    • 120. Mineral extraction
    • 121. First Railways
    39
  • 122. Deepening wheel ruts and the width of a horse
    40
  • 123. Railways in Europe, United States and much of Asia
    41
  • 124. 21st century
    42
  • 125. Past, future radical change and economic crisis
    43
  • 126. Science + technology = Innovation
    • Fire – in use for at least 500K years
    • 127. Basic tools 1.5 m years ago
    • 128. The Wheel 5000 years ago
    • 129.  
    • 130.  dramatic acceleration of Innovation from 1800 
    • 131. SCIENCE explained natural phenomena 
    • 132. wind = wings = flight = energy 
    • 133. lightning = electricity 
    • 134.  
    • 135. Technology  harnesses the science behind natural phenomena
    • 136. creates devices which change our world
    44
  • 137. Impact of the age of synergy : 1869 + Concatenation of events leading to radical change and the world economy today
    • There was a concatenation(chaining together of ) events, science, technology, medicine world had ‘a different programme to guide its future’. (Smil 2005)
    • 138. Internal Combustion Engine
    • 139. New Materials and New Syntheses
    • 140. Communication and Information
    • 141. New business systems and processes
    • 142. United States especially rapid diffusion
    45
  • 143. From 19th Century to Present Day
    • Yet past knowledge and skill shaped
    • 144. Set the world on an energy intensive trajectory
    • 145. Carbon emissions tripled since 1950
    46
  • 146. History is about Continuity and Change:75% of all around us today had its origins between 1866 - 1914
    47
  • 147. Radical innovations have shifted economic systems:Energy generation
     Before 1860 :
    power from water
     
    steam from coal
    electricity from steam turbines and oil
    electricity transmission
     
    48
  • 148. Radical innovations have shifted economic systems:Communications
    49
  • 149. Radical innovations have shifted economic systems:Materials
    50
  • 150. What Implications for 2010?
    51
  • 151. The earth at night 2007
    52
  • 152. Global Warming
    53
  • 153. US Coastal Areas and Global Warming
    54
  • 154. 'New Scientist' suggests that to debate the end of civilisation as we know it could be valuable!
    55
  • 155. A new style of capitalism?
    'A message that businesses may find they are surprised to agree with.' Financial Times
    Jonathon Porritt grapples with capitalism's reality - a system capable of delivering sustainability and enhancing well being,  Adair Turner (Director General of CBI 1995-9)
    56
  • 156. Mass manufacturing v Mass disassembly
    • 1908 Ford T mass manufacturing and assembly. 
    • 157. 2008 - Mass Disassembly for recycling.
    • 158. Not so much - how could more recycled components be used
    • 159. but how to dis-assemble for recycling?
    • 160. Is the Patagonia 'Sugar and Spice' shoe the process revolution we need?     
    57
  • 161. Innovating to Survive: End of the 'nice decade'
    The credit cycle has turned and commodity prices are rising' (Mervyn King, Governor of the Bank of England May 2007)
    August 2008 The UK is facing its worst economic crisis in 60 years
    October  09 Recession collides with technical innovation threatening established business models. 
     
    October 2010  UK expenditure cuts, threat to science research 
    58
  • 162. Business Model threatened : Newspapers and publishing
    Wednesday 3 June 2009 The GuardianMagazines and newspapers face 'lethal threat' [from recession and internet] Advertising                         Circulation 
    59
  • 163. So what is innovation and what does it involve?
    • Creativity and stepping out of line  
    • 164. Entrepreneurship; the recognition and assessment of opportunities and threats
    • 165. More than just a spark of an idea 
    its about 'The Dance of Two Questions'..........
    'what is needed and what is possible?'
    60
  • 166. We are on the cusp of dramatic change?recession as a driving force for innovation? ENERGY the new focus
    • Productivity declining some products and food
    • 167. China products labour intensive, but labour costs increasing in China -  Food yields improvement slowing - R&D decreased since 1996 - we had surplus food!
    • 168. CARS  - Oil to Electricity?Homes/offices  - new eco standards
    • 169. IT and carbon footprint
    61
  • 170. Messages to take away
    • Innovation is about knowledge and people and making new connections.
    • 171. Personal/people networks are vital in making new connections
    • 172. Innovation is a chaotic process initially
    • 173. Successful innovation needs the chaos to turn to structures, systems and organisation.
    • 174. Innovation is about survival
    62
  • 175. Knowledge and Imagination
    •  'I have more imagination than memory but without memory I would have no imagination’
    • 176. A combination of memory and imagination CRUCIAL to innovation they combine past and future
    63
  • 177. Our measures of success?
    • If just one student could be inspired to become an innovator
    • 178. If just 10 of you could influence your future boss on how things are done
    • 179. And if all of you could be just a little bit more knowledgeable about innovation and innovative processes ………………
    • 180. Everything would be worthwhile and have made a contribution to understanding the innovation process……………
    • 181. Team working and ability to work collaboratively. 
    64