LUMS Innovation course final lecture Dec 2012

1. Innovation Overview
summary and conclusions 2012
Mike Parsons and Mary B.Rose

2. Where were we in 2004 ?
• Is Google Desktop search an
MS ‘Longhorn’ challenge?
• The iPod and the new music
sales channels.
• Digital camera sales overtake
roll film.
• Walmart decides on RFID.
• Dixons stops selling VCR.
• Sony Blue-laser battles with
Toshiba HD-DVD.
• VOIP –Disruptive technology
at its most lethal?

3. Where are these on the diffusion curve
December 2012
(December 2004) Roll film
Digital Camera camera
users VCR
Digital
music Digital
Digital music
downloads downloads Cameras
Roll film and VCR
discontinued
Desktop Search RFID
VOIP
RFID VOIP
Desktop
Search Time

4. Innovation Search 2012
• 135 iSearches
across two courses
• Here are the trends
as we see them to
help your final
course work

5. What has shaped your choices?
Criteria for choice
Country of origin
Cultural background
Academic Background
Trends in innovation

6. But what trends in 2012 Innovation Search
choices ?
• Funding for Innovation
• Incubation and Open
Innovation
• Process Innovation
and productivity
• Business Model
Innovation

7. 2012 iSearch Trends
• 3D printing
• SoLoMo and SoLoMoe
• Mobiles as universal tools
• User interface UI design
• Imaging
• SMART textiles
•
• Biomimetics
• Prosthetics

8. Crowd-sourcing funding for Innovation
Silicon valley trend of early
exposure
Kickstarter
Indiegogo
Sponsume
Abundancegeneration
Funding circle
no loss of equity for entrepreneur
start ups
builds early market awareness
and even first product volumes

9. New Start up failure rates very high.
90%
'Incubation' support to improve
Start-Up Chile
Government incubation
aims for cluster of Chilean entrepreneurs
Moscow University visitor also has
incubation
support

10. Alternative ENERGY slows
the swarm of new products
and processes has resulted
,,,,,,,creative destruction
Solyndra pv
BetterPlace, interchangeable
car batteries has crunched

11. Alternative ENERGY
air and water to petrol?
problem is energy
needed to convert
how to get more out that
goes in
5 yr timeline
targeting FI fuel

12. Process and Productivity: IBM
Globalisation means
sourcing in multiple
locations and selling
in global markets.
Globalisation puts
huge demands on
supply chain logistics
'IBM Global Processing
Services' acts globally
for brands without that
reach.

13. Process Innovation
glass is 4,000 yrs old
Electro-chromatic glass -
windows
Gorilla glass - for mobile
phones

14. Process innovation
Pharmaceutical industry
begins shift from batch
to continuous process
time to market drops from
months to days
Dangers for those companies
who fail to move

15. PROCESS INNOVATION
Baxter - low cost robot helps reshoring

16. BIGGEST news in process innovation
rapid prototyping & rapid
manufacturing
aka 3D printing ++
the shift to making at
location of market
customising possible
customising needed to lift
perceived value

17. 3D Printing has potential to transform
manufacturing: craft and customisation
means local & reshoring?

18. 3D Printers the new PC ?

19. 3D Printed Guitar

20. 3D printer for Orthotics

21. Business Model Innovation
PUBLISHING
all biz models under stress
Pearson: World's largest publisher
books, newspapers, magazines
Disruptive innovation in publishing
and in education
Shift in business model to
consultancy and online delivery of
educational resources.

22. IMAGING
innovation slows
a 'ball camera '
finds a niche market
war and fire zones
other dangerous
environments
toss the ball and it send
360 degree pictures
from location
but how to get it back?

23. The Samsung Galaxy : The Social
Camera
• the phone camera waiting to
happen!
• first camera with full on-
screen/software controls
• why did it take so long?
• power usage?
• awaiting battery innovation?
• the forerunner for other device
controls

24. Shifts in technology

25. SMART phone as universal tool:
iPhone/Android
unlock doors, lockotron
control thermostats
dim windows, electro' glass
control mech for kids toys
pays for goods - NTC
park and collects your car from
multi-s park, Nissan
56% of N Americans have one

26. Smartphones & Tablets v PCs
Sales Inflection point 2010:
installed base inflection point 2013

27. SoLoMo
• interlocking trends of social
media,
• emerging technologies of
mobile phones
• GPS linking friends and
services

28. But where do the trends come from?

29. 2004 Quite a Year to Start a course! : Social
Software, Social Networking and Web 2.0

30. Web 1.0 and Web 2.0 compared
• Web 1.0 • Web 2.0
• Dial up • Broadband
• Yahoo • Google
• Personal websites • Blogging
• Britannica online
• Wikipedia
• Software license fees
• Publishing • Open Source
• Directories • Participation
• Software licensing • Tagging
• CD sales o Picture recognition, human
• Bits of information tags, computer analysis
• Hosted services
• MP3/podcast
• Facebook

31. On the verge of a Schumpeterian
long wave ?

32. Web 2.0 taken for granted
o Tipping Point
approaching for
interrelated
technologies
o Swarms of innovation
in mobile technology
o Are we witnessing a
major paradigm shift
?

33. Web 2.0 as platform
• SAAS = total business system on the web.
• SAAS aka Hosted services
• Web not optional addition.
• Mobile/wearable technologies
• Web for broadcasting –TV, radio and pod-
casting
• Web as total information
• Web as social connection

34. Strategic Battles
• Economist Dec '12
• Battle between
Apple, Google,
Fb and Amazon
• MS not even
included
• mobile technology
will be central
• monopoly concerns
now beginning 'G' is
under investigation

35. 'Cloud Computing'
the battle in the clouds
SaaS/PaaS/IaaS
• Amazon,early mover EC2
• Microsoft, Azure Oct 2008
• and BPOS Federal
• Google, 'Gov Cloud'
• Salesforce.com
• Rackspace
• Yahoo&HP&Intel Jul 2008
• Oracle launched, date?

36. Facebook : Web as Business Model
• How has it grown, who funds
and what is it worth?
• 2004-2012
o Funding raised $516m
o Microsoft $240m
o Share flotation May 2012-
Facebook valued shares at
$38 (values company
$104bn
o August 2012 Share Value
$18.75
o December 2012 Share value
$27.46
o But where does the
revenue come from?

37. Facebook Growth: 800m Users in 2011

38. Facebook Advertising
• Target advertising
o Local
o National
o International

39. My Facebook Ad Page
• My Profile • 58
• Female
• Mountains,
Gardening, Bird-
watching

40. Mary’s Facebook Ad Page

41. Disruption and education
• Increasingly personalised information
• Whither Higher education or certainly
paradigm shift?
• Helps convert information to knowledge
• ENTR 313 and EBIN 504 a small
contribution

42. How this course came to be designed – the history of an
innovation : from craft to mass to lean in teaching
1978 2004
• Typical Student: Staff Ratio • Typical Student: Staff
 1978 8:1
Ratio
 2004 17:1 (UK average)

43. Evolution of a process
• Large seminars and group learning
 Collaboration
 Group learning
 Presentation skills
 BUT dialogue and seminar interaction limited
the presentation became the objective rather
than vehicle
 Hard to monitor individual understanding
• OMM project and LUVLE
• Econ 120 Pilot of online workshops/learning logs

44. New Combinations and Innovation
• New combinations lead
to innovation
• January 2000 – May
2003 : Mike Parsons
and Mary Rose and
Invisible on Everest :
Innovation and the Gear
Makers
 Shared vision
 Shared knowledge
 Shared leadership
 Trust and complementary
skills
 Flexibility

45. Innovation Course Starting Point
Launched October 2004

46. Teaching and Learning
Challenges identified 2004
1. How to set current
innovation and
management practices
alongside theoretical
analysis
2. Developing critical
analytical skill relating to
the business press
3. Motivation
4. 80/20 rule
5. Plagiarism
6. Attendance

47. Philosophy and pedagogy: where business,
academia and technology meet (1)
Mary : 'Past experience with Econ 120 showed that
combining online materials, interactive workshops
and a learning log was inspirational for both students
and staff'

48. Philosophy and pedagogy: where business,
academia and technology meet (1)
• Mike : “Mary agreed to my proposal
that I treat the students as I would
employees during an extensive period
of management change."

49. Course Design response to challenges
and needs
1.Academic and business collaboration
2.Opening and closing keynote lectures
3.Weekly 2 hour interactive workshops
4.Assessment designed to address key
challenges
o Academic Learning Log
o Innovation Search
5.Based on LUVLE platform until 2006

50. Course Achievements Stage
1: to 2004-6
• Key design principles unchanged
• Process of continuous improvement
• Achieved :
• Theory and practice
• High levels of student engagement and motivation
• Originality in coursework allowing stretching of mark range
• Consistently high student ranking despite high workload
• Hard to plagiarise
• University Prize for UG Teaching 2005

51. Course achievements Stage 2:
Continuing Challenges in 2006
• Assessment was individual but with associated group working.
• How to achieve team working?
• How to store Innovation Search?
• Shift from LUVLE to SAKAI – opened up
opportunities and brought unpredicted benefits

52. New Practices
• Wiki the platform for group assignment around
Innovation Search
• Forum tool adapted for weekly Innovation Theory
Preparation
• Active use of VLE in workshops

53. The design of Innovation course: from
mass teaching to interactive learning
• New Learning Process Inter-group
Tutors
?
Individual
Groups

54. Academic process and business
process
• Pragmatic process
• How do we get that process to work
• Strong parallels with business – innovation
was the result rather than end itself
o Processes are
 Understandable
 Controllable
 Improvable

55. Are the courses innovation ?
• Diffusion?
• Productivity
o Large groups better than small
o integrates business and academic world
o Platform for development

56. UK chancellor and 5 year projection
latest Weds Dec 5th 2012
growth prospects very poor
of many problems
GREATEST was poor
productivity improvement
PROCESS
IMPROVEMENT is the way,
the route, the method
GO THERE!
as you know how

57. What have we learned ?
• collaborative knowledge
• We have learnt from you
• Mike’s business : theory has benefited practice
• Research – already a paper in progress with several others
• Institute for Entrepreneurship and Enterprise Development
• Your feedback helps us improve
o Enthusiasm for approach and subject matter
o One of highest rated LUMS courses
o Innovation Search in teams
o The shift to group assessment of Innovation Search
o The idea for web-based course materials and workshop
findings

58. What do we hope you will take
away ?
• But at the heart of innovation is creativity,
curiosity and imagination to appreciate :
 Potential new combinations
 The significance of knowledge from other spheres
 The ‘big picture’
 The strengths and weaknesses of a course of action
 The relationship between an innovation and its business
context