5. Elementary level
• The elementary level describes the individual human competence and its
constitution.
• The human competence can be seen as the combination of the capacity
and the
• willingness to act. Capacity to act is influenced by knowledge and skills.
Willingness
• describes the motivation of an employee which and how much of the
existing knowhow will be provided to the organization. It is influenced by
culture, well being, satisfaction and commitment to the organization.
• As basic element in the competence pyramid the personal know how can
be described as combination or sum out of explicit and implicit knowledge,
skills and abilities.
6. Passive Level
• Passive competencies are existing potentials in an organization which
are not actually used for value creation or support of it. This means
that the passive level describes the possible competencies provided
by employees and existing physical resources.
• Organizational competencies are the combination of materials, tools
and employees (see 3 for a definition). Employees are the interacting
element which is needed to apply physical resources. The existing
human competence allows the application of tools and materials to
fulfill certain tasks. Without application this combination is passive
and therefore the description of an existing organizational potential.
7. Active Level
• Active competencies are used for value creation or the support of it.
The usage is mainly influenced by factors collected in the
organizational capacity to act (e.g. culture, human, organization,
technology). This organizational capacity increases or decreases the
passive existing competence on the way to action.
• Active usage could be in processes or projects with product (service)
orientation or also in management processes. Active competencies
are the combination of knowledge with tools and material to reach
defined organizational objectives.
8. Learn and Adaption Loop
• All competencies must be continuously evaluated, and the demand
for new knowledge and resources has to be defined. The loop
describes the feedback to basic elements and resources which is
necessary to build up new knowledge or to order new materials or
tools. As one possible consequence passive competencies could be
activated. Consequence passive competencies could be activated.
• An essential point in creating new competencies is the ongoing
evaluation of use. Like described in the “knowledge life cycle” of
McElroy [McElroy, 2003], new knowledge must be reviewed, spread
and set into action.
10. What is innovation?
• Innovation is the process and outcome of creating something new,
which is also of value.
• Innovation involves the whole process from opportunity
identification, ideation or invention to development, prototyping,
production marketing and sales, while entrepreneurship only needs
to involve commercialization (Schumpeter).
11. What is innovation?
• Today it is said to involve the capacity to quickly adapt by adopting
new innovations (products, processes, strategies, organization, etc)
• Also, traditionally the focus has been on new products or processes,
but recently new business models have come into focus, i.e. the way
a firm delivers value and secures profits.
12. What is innovation?
• Schumpeter argued that innovation comes about through new
combinations made by an entrepreneur, resulting in
• a new product,
• a new process,
• opening of new market,
• new way of organizing the business
• new sources of supply
13. Dimensions of innovation
There are several types of innovation
• Process, product/service, strategy,
which can vary in degree of newness:
• Incremental to radical,
and impact:
continuous to discontinuous
14. Drivers for innovation
• Financial pressures to reduce costs, increase efficiency, do more with less, etc
• Increased competition
• Shorter product life cycles
• Value migration
• Stricter regulation
• Industry and community needs for sustainable development
• Increased demend for accountability
• Demographic, social and maket changes
• Rising customer expectations regarding service and quality
• Changing economy
• Greater availability of potentially useful technologies coupled with a need to exceed the
competition in these technologies
15. What is innovation?
• Gary Hamel argued that today’s market place is hostile to
incumbents, who now needs to conduct radical business innovation:
• Radically reconceiving products and services, not just developing new
products and services
• Redefining market space
• Redrawing industry boundaries
16. New conditions for innovation
• Small start-up entrepreneurs increasingly depend on large firms:
• as suppliers or customers
• for venture finance,
• for exit opportunites,
• for knowledge (production, markets and R&D)
• and for opening new markets.
17. New conditions for innovation
• Large firms increasingly depend on small start-ups
• for NPD,
• as suppliers of new knowledge (which they cannot develop themselves),
• or organizational renewal, for experimentation with busienss models,
• for opening new markets, etc
18. New developments in innovation raises new issues
and problems
• Greater emphasis on commercializing scientific discoveries, particularly in IT and
the bio-sciences
• Speed and potential value of scientific progress leads to emphasis on solid and
well-designed portfolios of research projects
• Universites as active drivers of innovation: Academic entrepreneurship and the
entrepreneurial university
• University-industry partnerships
• Increased search for radical innovation and top-line growth.
19. DESIGN BUSINESS BRIDGE: DESIGNING THE FUTURE OF BUSINESS
STRUCTURE: MODULES
Business
Models
VALUE
Marketing +
Management
CUSTOMER
Statistics +
Operations
DECISIONS
Financial
Management
EVALUATION
Each module will run 4 hours a day for 2 weeks
Assessment and refinements will be made between modules, as required, to meet
student goals
INNOVATION
PROCESS OFFERING DELIVERY FINANCE
20. DESIGN BUSINESS BRIDGE: DESIGNING THE FUTURE OF BUSINESS
INNOVATION
ProcessOffering DeliveryFinance
The Innovation Stream will run through all four modules
exploring Apple and Proctor and Gamble.
Students will explore evolutions in their business models,
marketing and management procedures, strategies,
operations, and finance.
Doblin’s Ten Types of Innovation™ will be referenced
throughout the modules as students track the various
forms of innovation and synergies with design thinking.
21. DESIGN BUSINESS BRIDGE: DESIGNING THE FUTURE OF BUSINESS
PROFIT MODEL
INFRASTRUCTURE CUSTOMERSOFFER
(C) Alex Osterwalder Business Model Innovation Hub
Bridge Overview Structure: Osterwalder’s Business Model Canvas
22. DESIGN BUSINESS BRIDGE: DESIGNING THE FUTURE OF BUSINESS
What is a market
channel?
What is a market
segmentation?
What is a target
market?
What are they key
positions in an
executive
management
team, key
functions ?
What are different strategies
around customer acquisition
and customer retention?
What is the product or
service development
process?
What are
strategic
alliances?
What is the
concept of
cannibalization
and channel
conflict?
Marketing +
Management
CUSTOME
R
How do you engage
the customer in either
creating the value
proposition or
continuous
improvement?
What are pricing strategies?
What is product
positioning and how
and why do you do an
industry analysis?
23. DESIGN BUSINESS BRIDGE: DESIGNING THE FUTURE OF BUSINESS
How can I use
statistics to
measure a market
size?
What does a Chief
Operations Officer
(COO) do ?
How can I use
statistics to define
customer
preferences?
What is knowledge
management?
How can I use
data from my
suppliers or
distributors to
inform product
development?
How can I use
data from my
distribution
channels?
Statistics +
Operations
DECISIONS
How can I get and use
market feedback?
How does your supply chain build your cost structure
How can I use statistics to
understand my offering in
the marketplace against
alternatives?
24. Design Business Bridge: Designing The Future of Business HMcGowan 2009
DESIGN BUSINESS BRIDGE: DESIGNING THE FUTURE OF BUSINESS
How can I
understand the
revenue of each
customer
segment?
How can I
decide how to
finance my
business?
How can I understand my
revenue by customer?
What is cost of sales?
cost of goods sold?
How can I
partner to
reduce my
costs?
What are my sales costs and
how can I minimize these
distribution costs?
Finance +
Economics
EVALUATIO
N
How can I
understand my
revenue
growth,
decline?
What is a gross profit margin? Net
profit? fixed vs. variable costs?
Other concepts
What is a cash flow
statement and why does
it matter
What is a balance sheet
and how do you read it
What is an income
statement and why do I
pay attention to profit and
loss
Why and how are
companies valued