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IT + IC = Innovation
This document discusses how combining information technology (IT) and intangible capital (IC) can fuel innovation. It provides examples of how IT has enabled innovation in industries like transportation and food provision. The value of companies increasingly comes from intangible assets like brands, data, and culture rather than physical assets. Nurturing an innovative culture requires bottom-up collaboration beyond top-down strategies. Constraints can also drive innovative solutions, as demonstrated by Aravind which provides low-cost eye surgeries using India's poverty and health challenges.
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IT + IC = Innovation
- 1. IT + IC= Innovation Mary Adams, Founder
- 2. This project re-built14 bridges during 10 summer weekends and shows the potential for innovation even in traditional industries.
- 3. Smarter-Companies Inc. We’re livinga seismic change Industrial Era Knowledge Era Agricultural Era As we endeavor to increase innovation, we are often hampered by our industrial roots. This presentation highlights some of the basic management concepts of the industrial era and the knowledge-era equivalent.
- 4. Inspirirani ljudima. IT (informationtechnology)
- 5. Making things Solvingproblems We still make and use city buses but some of the most interesting innovation comes in the use of open data from GPS in the buses that changes the experience of finding and catching a bus.
- 6. Efficiency Effectiveness Kahn provideson-line mini-lectures that can be used for individualized learning. Each student can achieve mastery of each topic rather than everyone moving at the same pace in an “industrial” classroom.
- 7. Cost/Quality Experience Illustration byLoulou & Tummie Sysco, known for industrial food, is testing the provision of locally- grown organic produce to the U of Michigan. IT fuels all these projects.
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- 9. Tangible Intangible Fedex ownshuge numbers of tangible assets but the essence (and value) of the company comes from intangibles like people, processes, data, partnerships, brand and culture.
- 10. Scarcity Abundance One ofthe most exciting thing about intangibles like software, data and knowledge is that they are not subject to the economic laws of scarcity—which is how a company like WhatsApp can build an app that attracts 450 million users with just 55 employees and earn a $19 billion price from Facebook.
- 11. Accounting ICounting WhatsApp alsoillustrates a key challenge with intangibles: how to measure them. We advocate a new approach to complement accounting that identifies financial potential based on how well a company creates value for its stakeholders.
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- 13. Top-down Bottom-up/Outside-in Innovation isimportant to business because the shift to the social/knowledge era requires a constant flow of information and learning in all directions. The answers rarely reside just at the top.
- 14. Strategy Innovation Innovation isthe knowledge-era complement to traditional, top-down strategy. It creates an environment where new strategies and solutions emerge.
- 15. Control Collaboration Amazon’s marketplaceshows how collaboration with other vendors creates much more value (for customers, partners and for Amazon) than keeping their network closed.
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- 17. Chief Innovation Officerstudy Main areas of CIO focus (process) Strengthening innovation processes Developing research capabilities Greatest CIO challenges (ecosystem) Getting the right people and partnerships Obtaining funding for initiatives Making the corporate culture more innovative This survey by my firm of 25 Chief Innovation Officers in the U.S. demonstrated the need for understanding the IC components of the innovation ecosystem.
- 18. Innovation process Idea GenerationSelection Development Commercialize A process like this simple one can be very helpful to encourage and manage innovation.
- 19. Innovation ecosystem IC But asthe study showed, successful innovation also needs to cultivate a healthy intangible capital ecosystem.
- 20. Measuring IC ecosystemstrength ICounting measures the strength of the intangible capital that makes up the ecosystem connecting IT and innovation.
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- 22. The industrial modelis not sustainable Industrialization is losing its power as a management approach. It guides us to do the wrong things in the wrong ways. We must keep the strengths of the past but create new strengths and capacities.
- 23. Luckily, innovation thriveson constraints Aravind shows us that new constraints can be a powerful driver of innovation. Their focus on cataracts as a leading cause of blindness in India has enabled them to provide surgeries for $20 that cost up to $5,000 in the U.S. Constraints are our friends
- 24. Constraints • Poverty • Jobs •Pollution • Waste • Energy use • Health • Education The Opportunity Making everyday life happier, healthier and more productive—how will you help?
- 25. Inspirirani ljudima. IT +IC = Innovation What’s your innovation equation?
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