Innovative connections final.2010ppt

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Innovative connections final.2010ppt

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

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