Your SlideShare is downloading. ×
0
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Collaborative entrepreneurship 08282013
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Collaborative entrepreneurship 08282013

373

Published on

New and futuristic ways for companies to collaborate and maximize deployment of resources in open and transparent ways. Stanford scholars Raymond Miles, Grant Miles and Charles Snow wrote the book.

New and futuristic ways for companies to collaborate and maximize deployment of resources in open and transparent ways. Stanford scholars Raymond Miles, Grant Miles and Charles Snow wrote the book.

Published in: Business, Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
373
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • 3/15/2007
  • Transcript

    • 1. Collaborative Entrepreneurship HOW
    • 2. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 2 COMMUNITIES OF NETWORKED FIRMS USE CONTINUOUS INNOVATION TO CREATE ECONOMIC WEALTH CollaborativeEntrepreneurship HOW
    • 3. OPEN WINDOW Member Firms Affiliated Firms Project Management & Accounting Infrastructure Continuing Education Central Services Innovation Catalogue Venturing Advisor Council Leader Council Facilitators Innovation Teams CONTINUOUS INNOVATION
    • 4. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 OpenWindow March 15, 2007 First Light L.L.C. jgillis767@aol.com 4 Open Window as a whole does not have clearly defined product or service lines (though its individual member firms do), and it has even more vaguely defined industries and markets. Open Window is a theoretical concept that will in time redefine the concept of the firm. For now, think of Open Window as a company of companies based on the idea of continuous entrepreneurship as a deliberate strategy. Open Window cannot be centrally directed or controlled. It depends on the widespread ability to collaborate – vertically and laterally within a particular firm and horizontally across firms in the Open Window network.
    • 5. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 OpenWindow 5 Open Window cannot support its business strategy of market exploration with a traditional structure. Instead, the widespread use of collaboration requires a self-managing organization that relies heavily on the competence of member firms as well as ad hoc organization structures specifically developed for each entrepreneurial initiative. The basic notion that Open Window member firms are willing to share their ideas freely in an effort to generate new knowledge and products without carefully calculating in advance the distribution of returns is contrary to the motivational assumptions of existing economic and management theory.
    • 6. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 6 Meta-Capability Each time in business history that a truly new strategy has been invented, it has required a new structure and a new capability essential to its operation. The Open Window model requires appropriate investments in collaborative capability at several levels – within the firm, within the network of member firms, and even in society itself. As we know from earlier meta-capabilities, the wealth creating impact of each new capability is multiplied as it pervades firms and economies. We foresee a meta-capability of collaboration – a widely distributed social asset that will drive continuous innovation.
    • 7. OPEN WINDOW Member Firms Affiliated Firms Project Management & Accounting Infrastructure Continuing Education Central Services Innovation Catalogue Venturing Advisor Council Leader Council Facilitators Innovation Teams CONTINUOUS INNOVATION
    • 8. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 8 BusinessModels Relationship to Market Penetrate or Segment Explore Type of Innovation Planned, Periodic Planned/Unplanned, Continuous Growth Direction Vertically, Laterally Horizontal (within a given industry) (across several industries) Old Models New Model
    • 9. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 9 OrganizationModels Type of Structure Functional, Matrix, Divisional Network Number of Associated Firms One or Few Several or Many Management System Hierarchical Self-Managed (rules, planning, control) (based on market factors, protocols) Old Models New Model
    • 10. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 10 BusinessStrategies Market Penetration Market Segmentation Market Exploration Coordination Delegation Collaboration •Forecasting •Planning •Budgeting •Controlling •Joint Goal Setting •Decentralization •Employee Development • Trust Building • Protocol Building • Project Team Development Old Models New Model
    • 11. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 11 CompetitiveStandards Open Window member firms share information and knowledge that may be used by any other member firm without specific permission, and they often commit resources to inter-firm projects whose full returns cannot be calculated until after the fact. This is not how most managers have been taught to behave, either in their formal educations or in their everyday experience.
    • 12. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 12 Knowledge-SharingPotential Competition Cooperation Coopetition Collaboration low high low high Motivation Trust
    • 13. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 13 CollaborativeEntrepreneurship o Open Window Transparency o Market Exploration Workshops o Pay for Time o Competence and Trustworthiness o Continuous Stream of Innovative Products and Services o Open Ended vs. Special Purpose o Provider Equity and Satisfaction CONTINUOUS INNOVATION
    • 14. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 14 CommunityofCreation o A common interest o A sense of belonging o An explicit economic purpose o A sponsor o A shared language o Ground rules for participation o Mechanisms to manage intellectual property rights o Physical support of the sponsor o Cooperation as a key success factor CONTINUOUS INNOVATION A WORKABLE BALANCE BETWEEN ORDER AND CHAOS OPEN WINDOW
    • 15. OPEN WINDOW Member Firms Affiliated Firms Project Management & Accounting Infrastructure Continuing Education Central Services Innovation Catalogue Venturing Advisor Council Leader Council Facilitators Innovation Teams CONTINUOUS INNOVATION
    • 16. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 16 CollaborativeEntrepreneurship o Central Services • Continuing Education • Collaborative skills • Collaborative process • Inter-firm collaboration • Continuing process analysis • Write-up of successes and failures • Innovation Catalogue • Usable ideas, processes, products, templates • Electronic Project Management • Linking a virtual community that crosses company lines
    • 17. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 17 CollaborativeEntrepreneurship o Central Services • Accounting Infrastructure • Linking a virtual community that crosses company lines • Venturing • Finding companies • Acquiring capital • Venture process • Venture education o Input like Cisco • Search for Innovative Firms o Output like Intel • Search for Innovative Applications
    • 18. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 18 CollaborativeEntrepreneurship o Operating Protocols • Like Johnson & Johnson “Credo” • Like Ritz Carleton “Gold Standard” • Demonstrate trust by immediately sharing something valuable. • Stimulate equitable reciprocity by volunteering a generous distribution of jointly created returns. • Publicly give credit to collaborators for their contributions to innovative projects. • Positive (Principles) vs. Negative (Rules)
    • 19. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 19 CollaborativeEntrepreneurship o Advisor Council • Twelve members • Two-year staggered terms • Approval of all practices • Represent all services (for firm approval) • Represent all systems (for firm approval) • Positive (principles) vs. negative (rules) • Operating protocol principle • Minimal organization principle • Self-management principle
    • 20. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 20 CollaborativeEntrepreneurship o Leader Council • Works for its member firms, not the other way around. • Executive level • Appointed by Advisor Council • Technical / market knowledge • Collaborative skills • Meets periodically • Assess all ongoing projects • Offer assistance as appropriate • Informed by Facilitators of progress, spin-off ventures, needs
    • 21. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 21 CollaborativeEntrepreneurship o Facilitators • Middle-level managers at member firms • Facilitate operations • Assess their projects • Inform Leader council of project progress • Work with Innovation Teams • Enter materials in the Innovation Catalog • Offer assistance as appropriate • Participate in innovation discussions with facilitators of other Innovation teams
    • 22. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 22 CollaborativeEntrepreneurship o Innovation Teams • Self-managing work teams, across firms and with customers and suppliers • Maintain customer satisfaction data • Record all costs • Maintain minimum profit margin of 12% • Think about member firms as they develop their own technologies, products, or markets • Self-schedule to customer needs • Their various bosses assist them in meeting their own goals and objectives.
    • 23. Collaborative Entrepreneurship BARRIERS
    • 24. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 CollaborativeEntrepreneurship This sounds good, but it won’t work. First you’re going to have to write another book to explain how to put this thing together legally. Second, it’s way too complex. How can anyone manage an organization like this? Putting together even a temporary alliance with two or three firms requires an huge amount of effort and usually doesn’t generate much in the way of results. At least one of the firms will try to take advantage of you. When you keep innovation inside your own firm, you can control the process, prevent information leaks and make certain that any returns go straight to your own bottom line. Even if, as you claim, firms waste as much as 80% of their potential to innovate, I still say a firm should go it alone. In fact, I’d rather waste the 80% than run the risk that someone else will take advantage of me or my firm.
    • 25. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 25 CollaborativeEntrepreneurship o Organizational Barriers • Tight departmentalization • Unit boundaries • Information flows • Performance evaluations • Reward allocation • Existing leadership & planning • Control & reward systems • Decision-making processes
    • 26. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 26 CollaborativeEntrepreneurship o Institutional Barriers • Current accounting conventions • G & A tight controls / cost reduction • Lack of investment in collaborative capabilities and trust-building activities • Lack of knowledge-management systems • Lack of valuing and accounting for intellectual capital • Lack of sharing of knowledge assets • Common ownership and commitment of key resources to joint activities
    • 27. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 27 CollaborativeEntrepreneurship o Societal Barriers • Childhood education and training • Large and continuing investments • Collective will • Change traditional economic measures • Wealth generated from innovation • Knowledge and learning skills • Measures of human capital • Benchmarks of meta-capability • Internal (corporate governance) and external (stock ownership) opportunism
    • 28. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 28 CollaborativeEntrepreneurship o Philosophical Barriers • Self-determination and self-reliance • Free markets and liberal individualism • How wealth is created and allocated • Focus on distribution of societal wealth vs. generation of societal wealth • Legal concept of ownership rights vs. common ownership of key resources • Commitment without precise prior agreement • State ownership and control of infra- structure mechanisms
    • 29. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 29 CollaborativeEntrepreneurship o Conceptual Barriers • Familiar components / Unfamiliar package • No critical mass conception or justification • Organization = many independent firms vs. organization = one firm • Nonstop product and service innovation • Open sharing of information • Self-management governance vs. hierarchy and control • Non-traditional theory • No “practice-to-theory-and-back-to-practice”
    • 30. Collaborative Entrepreneurship BUT THEN…
    • 31. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 31 CollaborativeEntrepreneurship The old theory of the firm focuses on the behavior of a single firm rather than groups of firms. The new strategy of continuous innovation relies on resources and capabilities jointly owned by multiple firms. The theory of the firm needs to mentally expand its unit of analysis to incorporate joint ownership of assets and resources.
    • 32. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 32 CollaborativeEntrepreneurship Given that the current concept of the firm is that of a mechanism for accumulating and employing commonly held resources, the idea of extending this view to include networks of independent firms sharing a common resource would seem to be a logical extension.
    • 33. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 33 CollaborativeEntrepreneurship In a trust-supported organization of independent firms, one could expect knowledge resources to be exchanged with low cost and high returns.
    • 34. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 34 CollaborativeEntrepreneurship End of Part I
    • 35. Raymond E. Miles + Grant Miles + Charles C. Snow Stanford University Press, 2005 March 15, 2007 First Light L.L.C. jgillis767@aol.com 35 BusinessIntelligence highlow highAdvantage Intelligence Standard Reports Ad Hoc Reports Queries Alerts Statistical Analysis Forecasting/Extrapolation Predictive modeling Optimization Thomas H. Davenport + Jeanne G. Harris Competing on Analytics – Harvard Business School Press, 2007 What’s the best that can happen? What will happen next? What if these trends continue? Why is this happening? What actions are needed? Where exactly is the problem? How many, how often, where? What happened?
    • 36. Veritas March 15, 2007 First Light L.L.C. jgillis767@aol.com 36

    ×