Guest Lecture April 19th 2017 at University of Oslo (UiO)

Innovation
& Sustainable Growth
Ole Schanke Eikum
Guest lecture
TIK4021 - Innovation and global challenges
University of Oslo
April 19th 2017

Guest lecture: Innovation & Sustainable Growth, by Ole Schanke Eikum
Who am I?
 Ole Schanke Eikum
 Born April 24th 1970
 Married, one daughter
 Email address: ole.schanke.eikum@gmail.com
 Education
 Bachelor, Electrical Engineering (BIH, 1992)
 Master of Science, Electrical Engineering (NTNU, 1996)
 Master of Technology Management (NTNU & MIT Sloan, 2010)
 Experience
 Engineer, grid companies for 5 years
 CEO, Sogn og Fjordane Energi for 12 years
 Head of Jakarta office at Innovation Norway for 4 years
 VP Technology and projects at Statkraft since June 2016
 Various board positions

Disclaimer
 I do not represent any company.
 Any comments and views given during this lecturing are on
my personal account.
 Cases presented and commented on are not necessarily the
complete story, but only used in the purpose to illustrate
some perspectives.

Innovation & Sustainable Growth
 Kva er meint med «Sustainable Growth»?
 Kva er innovasjon?
 Er det ein samanheng mellom innovasjon og berekraftig
vekst?
 Er det ulike former for innovasjon?
 Er det ein samanheng mellom innovasjon og
internasjonalisering?
 Går det an å organisere for innovasjon og berekraftig vekst?

What’s making the difference and decides success?

Introduction to project development
It is about:
 Doing the right project
It is about:
 Doing the project right

Introduction of basic terms
 Innovation
 Disruptive
 Incremental
 Sustainable growth
 Exploration
 Exploitation

Exploration
Exploitation
The sector for
sustainable growth
Companies in
this sector do
not survive
in the long
run
Companies in this
sector do not survive
short term
Laggards
Leaders
The lifecycle and dynamics of the industry,
as well as the company’s resources and capabilities
decides the correct balance between
exploration and exploitation.
”Firms need to mix elements of
explorer and exploiter if they
want to innovate and grow
profitably on an ongoing basis”
John Roberts
The Modern Firm

James March (1991) has distinguished the two tasks that
are involved in firms creating new business and then
running them successfully.
One is to exploit effectively the opportunities inherent in
the current situation – the basic business model the firm has
adopted, the market segments it addresses, the products or services
it offers, and the technology it employs.
The other is to explore for and develop new opportunities.
Exploration and exploitation are quite different tasks, calling on
different organizational capabilities and typically requiring differing
organizational designs to effect them.
Source: The Modern Firm, John Roberts (2004)

The decision and project development process

Case: New Nedre Røssåga HPP
 Statkraft has recently completed new Nedre Røssåga
hydropower plant:
 https://youtu.be/0hHm7XdJpzA

Kongruensmodellen

Berekraftig innovasjon – naudsynt for lønsam vekst på lang sikt?
Presentasjon for konsernleiargruppa i BKK, Svanøy 10. juni 2010
Kongruent org.design for exploitation

Berekraftig innovasjon – naudsynt for lønsam vekst på lang sikt?
Presentasjon for konsernleiargruppa i BKK, Svanøy 10. juni 2010
Kongruent org.design for exploration

The architecture of the firm also must support both
exploratory and exploitative activities. Often it is
middle managers who must recognize and bring forward
the new opportunities that arise out of the work of
their units. The problem is that the same managers who are charged
with exploitation are also responsible for nurturing exploration. If they
are to do both, the rewards for these activities must be carefully
balanced.
Source: Strategic Management, Saloner et. al. (2001)

Internasjonal vekst

Internasjonal vekst – ekspansjonsmodell
1.
Definere og
avgrense
markedet
2.
Markedets
lønnsomhet
3.
Konkurranse-
fortrinn
4.
Ressurs-
anskaffelses-
kostnader
5.
Aggressiv
respons
6.
Valg av
inngangs-
strategi
Etableringsgevinster Etableringskostnader
Sjelden
Viktig
Ikke-imiterbar
Mobiliserbar
Approprierbar
Forskjeller
Store forskjeller
Varige, store forskjeller
Realiserte, varige, store forskjeller
Beholdte, realiserte, varige, store forskjeller
Realiserte konkurransefortrinn

Internasjonal vekst – approprierbar ressurs
Swedish furniture giant IKEA
has lost the right to use its
own brand name in Indonesia
after a legal battle with a local
company that claimed the
trademark, court documents
released earlier this week
showed.
"The clear message is that
any business wanting to open
up in Indonesia has to be very
careful to register all its
trademarks so they don't get
hijacked,“ said Keith Loveard,
head of risk analysis at
Jakarta-based Concord
Consulting.

Internasjonal vekst – ekspansjonsmodell
1.
Definere og
avgrense
markedet
2.
Markedets
lønnsomhet
3.
Konkurranse-
fortrinn
4.
Ressurs-
anskaffelses-
kostnader
5.
Aggressiv
respons
6.
Valg av
inngangs-
strategi
 Etableringskostnader (case Indonesia)
 Ukjent lovverk – lite internasjonale reglar/standardar
 Byråkrati
 Korrupsjon
 Proteksjonisme
 «Alt» er relasjonsorientert (i Asia)
 Local Content requirements
 Fare for å miste eigne konkurransefortrinn (aggressiv respons)

Internasjonal vekst – etableringskostnader
Slår man sammen
driftsunderskudd og
investeringer har
Telenor svidd av nesten
25 milliarder kroner på
satsingen i verdens
nest mest folkerike
land.
Analytikere mente i
oktober at Telenor
kunne få rundt 8
milliarder kroner for de
indiske mobillisensene

Internasjonal vekst - inngangsstrategi
 Generelle inngangsstrategiar
 Oppkjøp
 Eigenetablering
 Alliansar
 Agent
 «Follow the customer»
1.
Definere og
avgrense
markedet
2.
Markedets
lønnsomhet
3.
Konkurranse-
fortrinn
4.
Ressurs-
anskaffelses-
kostnader
5.
Aggressiv
respons
6.
Valg av
inngangs-
strategi

Internasjonal vekst – case Ulstein i Indonesia
– Generelt er det utfordrende å levere
design og ustyrspakker til kunder over
hele verden, der man møter verft og
andre firmaer med ulik erfaringsbakgrunn.
Kulturelle og språkmessige utfordringer
kan også lett undervurderes. Det har
vært en interessant læringsprosess for
alle involverte.
Gunnar Haug, leder Ulstein Asia, til Sysla Maritim 20.01.2015

Internasjonal vekst – case Jotun Indonesia

Oppsummering og avslutting
 Innovasjon
 Sustainable Growth
 Internasjonal vekst
 Spørsmål?
 Då vil eg ønskje lukke til – og håpar at din kunnskap kan
gjere ein forskjell for norske bedrifter.

Guest Lecture April 19th 2017 at University of Oslo (UiO)

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