Innovations and innovation myths

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Innovations and innovation myths

  1. 1. INNOVATIONS AND INNOVATION MYTHS Mika Martikainen Business presentation 30.11.2010 @English for Communicating in Business –course University of Eastern Finland, Kuopio
  2. 2. JUST TO THINK..  In Finland  823 million euros of public money  are marked to innovation policy and companies’ internationalization (from 2011 Budget Proposal to Parliament by Ministry of Finance)  BUT, over 90 % of innovations are done inside the firms and organizations by themselves
  3. 3. CONTENT  Why?  What is innovation?  Six innovation myths and examples  Conclusion and final words  Q&A
  4. 4. WHY?  my main subject in Economics: Innovation management  Bachelor’s and Master’s thesis: Innovation environment in Keuruu region (in social sciences, main subject entrepreneurship)  own interest  my thought: Innovation processes will be normal and continual in all organizations in the future (or maybe even today in some companies)
  5. 5. WHY?  innovations & innovating are ”trendy”:  European Commissions Innovation policy (2008) and Innovation Action Plan (2010?)  Finland’s National Innovation strategy (Ministry of Employment and the Economy 2008)  many regional strategies, like Innovation strategy of Eastern Finland (Tekes 2007)
  6. 6. WHAT IS INNOVATION?  multi-stage process where new ideas are transformed into new/improved  products  services  processes/procedures  which are commercially exploited  so an invention/idea is not an innovation because it doesn’t add value to company/organization
  7. 7. INNOVATION ENVIRONMENT…  = All organizations and operators (public or private sector) in one regional area  city covernment, (regional) development companies, Tekes, Finnvera, banks, insurance companies, accountants, consultants, entrepreneurship organizations, …  and of course enterprises themselves
  8. 8. INNOVATION MYTHS People – even entrepreneurs – think:  innovation = ”something nonsense terminological hype from consults”  or ”it doesn’t concern me/us”  or ”I’m not intrested”  or ”I don’t understand”  other negative or wrong thoughts about innovations or innovating..coming next.
  9. 9. MYTH #1: ALL IDEAS = INNOVATION  False.  Most ideas are stupid or bad  = illegal, infeasible, nothing new..  pure idea, invention or vision = nothing ..  …if you can’t profit it commercially
  10. 10. MYTH #1: ALL IDEAS = INNOVATION – (BAD) EXAMPLES  sub-prime loans…  new coke in 1985 (Coca Cola Company)…  Iomega zip –drivers…
  11. 11. MYTH #2: CREATIVITY = INNOVATION  False.  Professor Alf Rehn has criticised: ”creativity is a buzzword”…  Erkki KM Leppävuori from VTT: ”innovation is 1 % of idea and 99 % of hard work”
  12. 12. MYTH #2: CREATIVITY = INNOVATION - EXAMPLES  Many big companies are creative and innovative  like Apple and Google..  Google’s offer: 20 % of work time for own projects/ideas  ..but most of the projects lack
  13. 13. MYTH #3: INNOVATION PROCESSES ARE FAST  False.  From idea to success innovation can take even years (or decades)  Sometimes processes are fast, for example agile software development (focus on doing/coding rather than planning)
  14. 14. MYTH #3: INNOVATION PROCESSES ARE FAST - EXAMPLE  Kitewing /  Windsports.net  idea 1987  company founded 1993  in 2009: retails in over 20 countries and four employees  not so fast? (source: Fogelholm Carl- Magnus: Tuoteideasta innovaatioksi. 2009) (Photo from Flickr.com by laazik, CC-licensed; http://www.flickr.com/photos/laazik/3391797789/)
  15. 15. MYTH #4: WE DON’T NEED TO INNOVATE  False.  You probably do it all time, specially entrepreneurs  innovate = think different, ”how to make more money”
  16. 16. MYTH #4: WE DON’T NEED TO INNOVATE - EXAMPLE  Interviewed CEO of food industry company (~70 employees):  ”innovating is necessity… because of productivity and cost-effectiveness”
  17. 17. MYTH #5: INNOVATING IS LINEAR AND CONTROLLABLE PROCESS  False.  Best ideas come when you expect least  Innovating = human work  Really: you can’t control others’ brain activity
  18. 18. MYTH #5: INNOVATING IS LINEAR AND CONTROLLABLE PROCESS - EXAMPLE  ”accident”  production line failed: too few / bad glue  noticed that it sticks passable without dirty => 3M Post-it notes (Photo from Flickr.com by riNux, CC-licensed; http://www.flickr.com/photos/rinux/631345826/)
  19. 19. MYTH #6: INNOVATING IS DONE BY SMALL INTERNAL TEAM  False.  Open innovation (by Chesbrough 2003)  innovation process is ’open’: innovation sources…  …from customers, subcontractors, interest groups, stakeholders, even competitors..
  20. 20. MYTH #6: INNOVATING IS DONE BY SMALL INTERNAL TEAM - EXAMPLES  Good example: Open Source communities  ..like Linux (operating system for computers), other OS softwares  = everyone can program / be part of the innovation processes  Wikipedia.org, …  Starbuck’s product ideas crowdsourcing ( http://mystarbucksidea.force.com/) , ...
  21. 21. CONLUSION  Innovation is  creativity  ideas  developing  commercializing, but..  slow  uncontrollable  process  to make new product, service or procedure to get more profit
  22. 22. FINAL WORDS  Keep eyes and mind open  Write ideas down and archive  Wait [or ”make”] for the right moment (or job situation) to share your idea  An entrepreneur?  Ask help from innovation environment (or tell your idea to a friend or share it in the Internet)
  23. 23. QUESTIONS & ANSWERS and Thank you! Mika Martikainen twitter.com/mikamartikainen slideshare.net/mikamartikainen

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