Lesaantekeningen - Innovation & Entrepreneurship

Transcription

1 Lesaantekeningen - Innovation & Entrepreneurship 14/04/2015 Lecture 1.1 Explain open service innovation Open - cooperation withothers - together strong Services - Prevent the commodity trap - Producing is gettingcheaperandcheaper Why open innovation? Open - Most nerds workoutside - External R&D canaddvalue - Participate in R&D - Improved business model - Share Intellectual Property Closed- Most nerds workhere- Ourown R&D is the sources- Selfdiscovered => first on the market- Best ideas = profit- Controle over Intellectual Property Product or services innovation? Succes rate of product innovation is low! Open services innovation should be better, you work together with your customers. Pagina 1 van 40

2 Why is traditional innovation hard to complete these days? These days: harder to compete - Lowercostregions - Increasingflow of knowledge -Shortening product life spans Escaping the commodity trap Shift towards services What is the concept for open services innovation? 1. Think of your business as a service business 2. Co-creation 3. Open innovation 4. Transforming business models Think of your business as a service business - Utilization of resources - Services platform Co-create with customers - Involve customers in the innovation proces - Customer have TACIT knowledge (hard to convey/overdragen) Open innovation - Integration of internal and external knowledge - Creation of a business ecosystem Pagina 2 van 40

3 New business models Metrics product versus service oriented- Products: inventorylevels;grossmargins; failure rate - Services: customer retention; lifetimevalue of customer; customer satisfaction Service functions are a critical element for succes- Managedbyhighlycapablepeople. What are the dutch topsectors for the funding programs? - High tech - Water - Life sciences - Creative industries - Logistic - Agro-food - Chemie - Tuinbouw - Energy 16/04/2015 Lecture 1.2 Defining services How do yourelatetoyourcustomers? How do you construct your business? Unique Selling Point? Latin; servitium = slaveryl US govern.: a change in the condition of a person, or a goodbelongingtosomeeconomicentity, broughtabout as the result of the activitey of someothereconomicentity, with the approval of the first person or economicentity The end of an exchange - Product: delivery of the product - Service: fulfillment of the customer needs Pagina 3 van 40

4 Observations Ted Levitt : customersoften want not the product itself but rather the effect that the product produces. Peter Drucker : What the customer buysandconsidersvalue is never a product. It is alwaysutitlity that is, what a product does forhim. Example : The customers do not want tobuy a power drillitself ; they want holes that the drillwill make. Platform surroundings incorporatinginternalandexternalinnovations, models, tools, etc Manypeople meet, share experienceandknowledge TSMC; OIP Facebook, apple itunes 21/04/2015 Lecture 2.1 Co-creation with your customers Product business: Suppliers developspecifications Customersreceive the output Service business: Hard todevelopspecifications Customersneedtoexplaintheirneeds Pagina 4 van 40

5 Tacit knowledge Tensionbetweenstandardizationandcustomization: Muchknowlegdeinvolved in providing/buying the service Difficultandexpensivetowrite down the knowledge knowlegde is Tacit [=stilzwijgend] The strategic advantage of tacit information Tacit information from the custumers is valuable. It creates a competive advantage. Wallmartexample Custumerneeds in case of a hurricanes Former sales [flavored pop-tarts] Designing experience point Involvecustomers in theirinnovationprocess [andwatchthem] - Combine experience point with physical evidence and onstage contact Ex.: Lego: lettingcustomerscreate designs mind storm [computer lego] was hacked schools used mind storm in their curriculum Difference between co-creation and co-design Co-design the end user is invited to actively participate in the design process. Basic principle of co-design is not technology but the users desires and needs. Co-creation is one method in which users think of solutions and help consider the conceptualization Pagina 5 van 40

6 Principles of co-design 1.Match between technical and social environment 2.User participates in design (varying role from passive to active) 3.User involved throughout entire design process Co-design role of the user User as informer: -Designerinfiltratesin the user s world to become acquainted with the context within which he needs to design. -User assumes a comparatively passive position. User gives answers to questions or shows the designer around. -It is up to the designer to take initiative for such an enquiry. User as expert -Within the design team the user assumes the role of an expert of his own experiences. -Interaction between designer and user takes place based on equity. User as creator -As a creator the user will bring along personal ideas and solutions whether or not in cooperation with the professional design team. -The designer assumes a facilitating position: he is supposed to visualize and crystallize the user s ideas. Pagina 6 van 40

7 23/04/2015 Lecture 3.1 What is the want, find, get, manage model? Want: What are our resource needs? Which ones should we internally develop. Which should we find externally? Find: How do we find and evaluate the external sources of technology and capabilities that will fulfill our wants? Get: What processes will we use to plan structure, and negotiate an agreement to access external resources? Manage: What tools and metrics will we use to implement and manage ongoing collaborative relationships? Want practice 1: incorporate external thinking into the strategic planning process - YOUR company cannot do the whole R&D process and the M&S process. - YOU need Partners. - Think of each point from the perspective ofyour company Start thinking from the developmentprocessand the co-creationprocess Determinewhatyouneed Use the V-model of system engineering Find practice 2: Treat the find effort as a bilateral process Firms must understand the Find effort as a bilateral process: even as the firm is trying to find the best partner for collaboration, potential partners are seeking the best match to meet their own needs. -Know your own strength - Find complementary strength in partners Pagina 7 van 40

8 Get practice 3: negotiate with a focus on 'win-win-lose-lose-lose' Both partners win; win-win Yourcompetitorslose; Lose-lose-lose Together strong Manage practice 2: use the kick-off session to ensure that both firms have the same understanding of the operating principles established in the agreement A project Kick-off meeting is important People meet andgreet Required partners Many kind of partners possible Research and Development Sales/marketing/end-users Advisors Financing Legal Key principles: start with your eye on the finish line You should reach consensus at the very beginning of he project on what will constitute succes at the end. This means that the stakeholders should start with an agreement of what the project should accomplish and the metrics that will be used to measure the succes of the project. this initial focus on the finish line must be sustained by project management as project development progresses and competing interests and project complexities begin to dominate the day-to-day work - The finish line is the use of your product - Process/service improvement Pagina 8 van 40

9 Key principle: stakeholder involvement is key Successful projects involve the customer, users, operators, and other stakeholders in the project development. Systems engineering is a systematic process that includes reviews and division points intended to provide visibility into the process and encourage stakeholder involvement. The system engineering proces includes stakeholders through system verification and acceptance. The stakeholders who are involved in any particular step will very, providing managers, operators, and technical personnel with an opportunity to contribute to the steps in the process where their input is needed. The same as with Co-design R&D partners Marketing & Sales partners Key principle: Define the problem before implementing the solution Very often, you'll have a solution already in mind at the start of a project and may even find yourself 'backing into' requirements to match your solution. Resist this temptation and instead use the systems engineering process to first define the problem. You'll find that there are actually multiple ways to solve the problem, and a good trade study will help you to determine the best solution on the basis of a clear understanding of the requirements. Start withdefining the service you want todeliverinstead of the product Pitfall: whenyou re a product company. Key principle: Delay technology choices Technology is constantly changing. The choices available when a project is initially conceived may well be replaced by better technology by the time the project is implemented. Specifying technology too early will result in outdated technology or constant baseline changes as you try to keep up with technology advancements. It's best to follow the systems engineering process by defining the needs, requirements, and high-level design without specifying technology. You'll have a stable baseline, and you'll be able to make the most appropriate technology choices when it is time to implement. Pagina 9 van 40

10 Design process 1. Start with your eye on the finish line (1. concept of operation 2. validation plan) 2. Stakeholder involvement ( society, government, end-users, designers, engineers, builders) 3. Define the problem 4. Delay technical choices (concept op operations, process/service analyses) The closed innovation paradigm Science and technology base -> research investigations -> development -> new product/services -> the market Open innovation Internal technology base and external technology base -> technology in licensing -> CVC investing -> technology spin-outs -> product business acquisition Other ferms market, new market, current market Specialization and growing markets More specializationógrowingmarkets Farmer 100 yearsago; manycropsandanimals; local market Nowadays; one/few crops or animals; world market, specialized equipment Advantages Economies of scale Greaterspecializedknowledge Pagina 10 van 40

11 Services as a set of processes A business is a set op processes Process engineering is nowcomingto the service sector ètbkérsneeded Core business = coreprocess Economies Economies of scale Reduction of costs of some items as volume increaces. Lowercosts of fixedassets per transaction Increasedknowledgethrough more transactions Economies of scope [synergie voordelen] = 3 Offering multiple items from a single source One-stop-shopping Reduce the totalcoststo the customer Service platforms Build service platforms foreconomy of scope Attractcustomers, contributors, resellers, commentators itunes App Stores Note the difference; Phone manufacturers; product oriented HTC, Motorola Service platform builders; service oriented Apple, Google, MS Pagina 11 van 40

12 Openness Outside-in opennesforeconomies of SCOPE Provideadditional services beyond the compony sownknowledge Ex. Amazon offers alsoproductsfromothers. Inside-out opennesforeconomies of SCALE Yourcoreprocessimproveswhenusedbyotherfirmsaswell. Happy followersinsteadthreatening leaders Ex. P&G TNO explosionresistant door Construct business platforms Improves Economies of scaleand scope Corecapabilities Otherswillinvesttheir time, money, etc in extendingyourinitaitive Your platform becomes more atractive 28/04/2015 Octrooiencentrum Kinds of protection/ intellectual property - Industrial property - Designs - Trademarks - Patents Pagina 12 van 40

13 Copyright Works of literature, science or art' new and creative. (Original work) Protection starts on date of creation Free of charge Duration of the protection: 70 years after the death of the creator Proof of date of creation. Design - The looks of a product - New and own character - Not defined by technical properties - After registering 5 years. and Can be extended 4 times (total 25 years) - Registration for Benelux, EU or worldwide Trademarks - Words and signs to distinguish products and companies - Distinguishable - Not common - Words, character, colors, shapes, smell, melody etc. (words like philips, signs like coca-cola) - Valid 10 years after registration can be extended infinite - Must be used within 5 years - Deposit for Benelux, EU, national of international Pagina 13 van 40

14 What is a patent? A temporary right issued by the government of a country which gives you the right to prevent your competitor: To produce To import To have in stock To trade To use in company Beware: Patent applications and granted patents are published. The 'social contract' implicit in the patent system - reveal invention - Get exclusivity... so that others can learn from it and improve upon it! Requirements for a patent You can apply for a patent for anything technical. You only obtain the patent right when it is: 1. New (worldwide) 2. Inventive 3. Industrial applicable (solution for a problem) Misunderstanding with a patent I am protected Your own responsibility to detect infringement You have to start a legal procedure yourself Patents can be nullified (novelty, inventive step) Pagina 14 van 40

15 NL procedure ROW 1995: Filing application Novelty search + written opinion Always granted! (max 18 months after filing) Examination afterwards by court Validity max 20 years (if fees are paid) European procedure Central application for 38 countries Application in English, German or French Novelty search and written opinion Publication application after 18 months Examination on novelty, inventive step and applicability Decision about grant 4/5 years after filing After grant new publication (B) Enforcing the right in different countries (translation, fee) Valid in a country after registration in national register Pagina 15 van 40

16 PCT= worldwide procedure Central application for 137 countries WIPO Filing in: English, French, German, Spanish, Japanese, Chinese of Russian Novelty search and preliminary examination Publication 18 months after filing Procedure stops after 30 months (no grant!) Procedure continues in countries or regions of choice (By sending PCT application to national office) Important facts of priority Term to go international with your national patent procedure: max 12 months All publications with one priority is called: Patent family or equivalents Worldwide the same procedure (Treaty of Paris 1883) Pagina 16 van 40

17 Facts of the PCT-route Publication has number beginning wit country code WO (World Organisation) WO-publication is NEVER a patent. It is an APPLICATION. More than 150 member states (almost worldwide) A investment of app ,- expanding your priority term form 12 tot 30 months Always a English summary It is a often uses procedure! Misunderstanding 'you are not allowed to use it' Lots of information you can use because: Patent validity is limited to 20 years Patent lapse when fees are not paid Patent is for a certain territory Pagina 17 van 40

18 Structure of patent Prior art - Teapot with one spout Drawbackofpriorart - Time-consuming Problemtosolve - Reduce filling time Detaileddescription - Teapot (1) with handle (2) - has sprouts (3) Solution - Provide a second spout (= Patent CLAIM) What is classification A way of storing and retrieving patent documents Two type are important: IPC en CPC: 1) IPC: International Patent Classification > About IPC-classifications >Are printed on the patent documents 2) CPC: cooperative classification extended IPC from the EPO and USPTO About CPC-classifications Only available in databases (like Espacenet) Pagina 18 van 40

19 Found a document? whats next? Check the status: (Is the application granted and is it still valid) Negotiate about a licence Buy the patent Develop another technique What not to do when considering filing a patent application No publication prior to filing e.g. no article, press release, conference presentation/poster/proceedings or blog entry No sale of products incorporating the invention prior to filing No lecture or presentation prior to filing except under a non-disclosure agreement (NDA) Seek professional advice soon! File before others do! Alternatives to patenting Information disclosure (publishing) Cheap Prevents others from patenting Does not offer exclusivity Reveals the invention to competitors the same invention Pagina 19 van 40

20 Secrecy (creating a trade secret) Cheap (but there is the cost of maintaining secrecy) No protection against reverse- engineering/duplication of invention Difficult to enforce Does not reveal the invention Secrets often leak quite fast Alternatives to patenting Information disclosure (publishing) Cheap Prevents others from patenting Does not offer exclusivity Reveals the invention to competitors the same invention Secrecy (creating a trade secret) Cheap (but there is the cost of maintaining secrecy) No protection against reverse- engineering/duplication of invention Difficult to enforce Does not reveal the invention "Secrets" often leak quite fast Do nothing No effort required Does not offer exclusivity - competitors will often learn details Pagina 20 van 40

21 Advantages of patenting Exclusivity enables investment and higher returns on investment Strong, enforceable legal right Makes invention tradable (licensing) Disadvantages - Reveals invention to competitors (after 18 months) Can be expensive Patent enforceable only after grant (this can take 4-5 years) Importance of intellectual property Essential business asset in the knowledge economy - Swedishsteel-makerSandvik:20%ofitsvalueisfromIP! Increases funding for innovative projects - WithoutIPmanyinnovativeprojectswouldnotbeprofitable because anyone who wanted could simply copy the results Protects small innovative firms - Dolby Laboratories - W.L.Gore&Associates(Gore-Tex ) Needed to release IP into the public domain under controlled conditions: - Linux(GPL):improvementsmustbefreetoo! Pagina 21 van 40

22 04/05/2015 Lecture 4.1 Transform your business model with services Openneshelpstoimprove services More powerfulto combine withredesigning the business model Change in: Distribution channels? Interactionwithcustomers? Value chain? Note: difficultto change your business model! Defining the business model Business Model Canvas Exploreandimproveyour business model -ask partners, customers Pagina 22 van 40

23 Changing the value proposition/business model 1. converting a fixedassetinto a smaller variableexpense. Leverage the utilization advantage Buying a car versus green wheels Redesignthrough co-creationwithcustomers Eg.: lego with building own designs Exploitingknowlegde / info advantage Eg.: Amazon opening new marketsforusing the asset Eg.: Amazon 2. the target customer for the service Health care; personal meters Fromphysicianstopatients 3. redesignvalue chain usingeconomies of scope Eg.: Xerox 4. Change the pricing system Eg.: Ryanairunbundled services 5. link into a larger business network or ecocystem [or createyourown] Dominant logic of the business A set of rules, normsandbelieves Usedtoalignpeopleandactivities It focuses attention Inertia of the dominant logic Advantage: coherence of business model Dell; direct-to-consumer; differentiating Disadvantage: hard to change Delll: Dell DJ [dig.jukebox} failedbecausecustomers wants to touchand feel new products Pagina 23 van 40

24 Tools to transform Map and analyze various business models Your existing business, alternative models Models of your competitors Experiment with new business models Learn and adapt Have a bias for action Analyze your actions and adapt Key advantage for new, small businesses Leading the Change Who leads? CEO or middle manager? Beware of outside inertia form investors, existing customers, etc.. Reorganizing for a services business model Setting up foreconomies of Scaleand Scope Scale: specialize in a few tasks, services Scope: providemany services.one-stop- shopping Linking customer facing front-end [scope] withstandardizedback-end [scale] Remember the figure on this subject? Combining scope and scale Examples Bol.com flexible front end: productsfrommanywebshops Standardisedback-end: buying, delivering RABO-bank Flexible front end: many online services Standardisedback-end: ICT infrastructure HU? Mijn rooster Osiris SP Pagina 24 van 40

25 Nurturing the platform for your business model Most valuable type op business model: the platform business model. Bol.com; othersfirms offer their product Apple: combining ipod, itunes, iphone, ipad Two sided platforms Suppliers providenumerouschoicesforcustomers A lot of customerslooking or a lot of choices Example; app s Apple versus Android versus Windows Whysuccesful or not? What is a business case? This is less obvious than you might imagine. A business case is a recommendation to decision makers to take particular course of action for the organisation, supported by analysis of its benefits, costs and risks compared to the realistic alternatives, with an explanation of how it can best be implemented What provide the recommendation in the business case? The recommendation gives the business case purpose and direction. The options may well be finely balanced, and decision makers may choose tot take a different view but without a recommendation the business case is simply a discussion paper But too often it is not clear what is being recommended. Either the autor wishes to avoid making a recommendation, or it is lost in a welter of data Pagina 25 van 40

26 What provide the business case to decision makers? A business case is designed to lead directly to a decision. So it must be aimed at those with the authority to make it. But too often decision makers (sometimes through rules and processes if their own making) never see the business case, and decision is made on the basis of a side paper What provide the business case to to take a particular course of action? The great strength of a business case lies in it's specificity. You should be proposing a definite change often to be executed through a project or a program, and almost always requiring an investment decision But too often the business case becomes a post hoc rationalization for decisions already taken, or it degenerates into an overlong strategy document What provide the business case for the organization? Normally a business case is only worth writing for significant project at the organisation or major business unit level But too often manager are asked to write a business case for a laptop purchase or a staff party or some such. This is wast of time What provide a business case supported by an analysis of its benefits? The business cas must say clearly why it makes the recommendation it does. This requires exegesis of the strategic rationale, as well as more detailed, systematic analysis of the specific benefits But too often benefits are either ignored, or presented in such an avalanche of jargon that the essential strategic purpose is buried without trace Pagina 26 van 40

27 What provide a business case supported by an analysis of it's costs? Cost estimation is often one of the most difficult aspects of writing the business case, but without it the case cannot be made But too often amazingly, some so-called business case practically omit costs, citing lack of information. This is no excuse. Others present a mass of costing data but fail to analyse it meaningfully What provide a business case supported by an analysis of it's risks? Projects invariably involve risk, and understanding and taking ownership of risk is an essential part of the accountability which a business case invite decision makers to assume But too often risk is rarely ignored entirely but proper focus on strategic risk can be list if risk is relegated to an appendix preoccupied with secondary matters like risk management process of risk scoring methodology What provide a business case compared to the realistic alternatives? If there really is no alternative, there is no decision to be made and no point writing a business case. Usually there is, and the best business case are those which give decision makers genuine choices to make, making the recommended option stronger by testing it against reasonable, viable competitors But too often authors pretend there is no a;terminative, ignoring the fact that even an unavoidable external change (such as new legalization or the end of a lease) can meet a variety of credible responses from an organization. Or unrealistic alternatives are presented to show the preferred option in an better light What provide a business case with an explanation if how it can best be implemented? Providing at least an online implementation plan as part of the business case gives credibility to statement about timescale and dependencies which are often central to the argument But too often planning is consigned to alter stage in the process, after decisions have been taken at cost to the realism and sustainability of the business case Pagina 27 van 40

28 Contents of a business case Task Strategic landscape Scenario; users Innovationidea Partners Novelty IP protection Attractiveness Benefits New marketsentrance Innovative product Market potential; market share Potential turnover for the next 10 years What is yourprofit? Assume 50% of sellingprice What are yourevenues? Product sales, service sales, licenceincome? Costs Development coststhis project Development costs follow-up projects Time-to-market? Subsidy? Achievability Risk analysis Determine the major risks of your project Assesswhether the risks are acceptable Decision points forinvestments? Investment comparedtoannual turnover of company Project planning Duration of the project Duration of required follow-up activities. Time-to-market Options analysis Recommendation Pagina 28 van 40

29 11/05/2015 Lecture 5.1 Innovation policy : two tracks 1. Generic Encourageinnovation in allenterprises, esp. SME: -Provide an excellent innovation climate and promote R&D investments -Availability of innovationfundingand risk capital 2. Topsectors Encourage PPP in 9 Top Sectors: -Joint programming by knowledge institutes, researchers and enterprises (Golden Triangle) -Joint research in TKI s (Topconsortia Knowledge and Innovation) through TKI Allowance -Involve SME s through SME Top Sector Grant (MIT) Innovation proces Fundamental research -> Industrial research ->Experimental research ->Valorisation ->Market introduction During the process high risk change in low risk and low economic value is chaning in high economic value TKI Allowance Supplement (25%) on private (cash) contributions in PPP through TKI (first per enterprise 40% (cash& in kind) TKI sapplyfor the Allowance. TKI Allowancecanbeusedfor: - PPP in R&D - networkactivities - innovation coaches Pagina 29 van 40

30 SME innovation topsectors (MIT) Connectinginnovative SME to topsectors Encourage SME tocollaborate on R&D (witheachother, knowledgeinstitutes) Toolbox: SME - Feasability studies - R&D-collaboration - Knowledge vouchers - Hiringtemporary high educatedstaff TKI - Network activities - Innovation coaches Topsector Life sciences & health TKI LSH Plaza: triangle: knowledgeinstitutes, enterprises (incl. SME), government Ca. 11 mln. TKI-allowance in 2014 (200 PPP s) Privatfinancing min. 40 mln. Total budget PPS: 120 mln. Partners: enterprises, universities, TNO, (medical) insurance companies, charity funds, ZonMW Topsector roadmaps 1. Molecular diagnostics 2. Imaging & image-guided therapies 3. Homecare & self-management 4. Regenerative medicine 5. Pharmacotherapy 6. One health 7. Specialized nutrition, health & disease 8. Health technology assessment & quality of life 9. Enabling technologies & infrastructure 10. Global health, emerging diseases in emerging markets Pagina 30 van 40

31 Process innovation project Building a project Finding partners: knowledge, finance, (research)facilities, Agreements, contracts etc. Financing possibilities: grants, loans, credits Proposal: meet the requirements! Eligibility criteria (formal) Ranking criteria realistic assumptions sufficient facts compelling pitch AAL: clear and concise business plan Ranking criteria, example MIT criteria (R&D-project): -Innovatief/ technologische vernieuwing; -Economische waarde; -Kwaliteit van de samenwerking; -Sectoroverstijgende combinaties. All criteria should be addressed in the proposal! and be well documented Formal steps and documents Project proposal Administrative information Description of Work Selection Criteria Negotiation Consortium Agreement, incl. IPR Description of Work Project Execution Payment Monitoring Dissemination Pagina 31 van 40

32 Policy ingredient for succes for the Netherlands? - Foster education - build strong and dynamic structures of innovation - nurture the climate of investment around innovation Wat zijn relevante issues en grondslagen bij (publieke) interventies? 1.Om welke beleidsmatige doelstellingen gaat het: innovatie, economisch groei, werkgelegenheid, duurzaamheid. 2.Wat zijn de legitimaties voor publieke interventies? 3.Welke (co-)financieringsvormen zijn in welke fase en doelstelling effectief en efficiënt? 4.KSF s bij interventies zijn governance, alignment, risico-rendement-verhoudingen, structurering, professionaliteit... 5.Voorbeelden van resultaten en Lessonslearned Conceptual framework of innovation and economic growth Science -> research -> development -> innovation -> sales -> Growth Ten opzichte van technical risk en economic added value en de typical forms of finance - Grants/ subsidies - Subordinated/soft loans - Grantees/mezzarine finance/vc Positionering financiële intermediairs vs risico rendementverhouding bij investeringen De inzet van risicokapitaalmarkt en den bancaire financiering Pagina 32 van 40

33 Financieel landschap voor ten opzichte van ontwikkelingsfase van het bedrijf risk profile low/high ten opzichte van prepare, start, growth, expansion, consolidation - Loans -FFF/F crowdfunding - Informals - Venture capitalists - Private equity Equity gap Het gat wat tussen level of total venture captatie en de availability of venture capital Tussen 0,2 en 3 miljoen New early stage venture capital funds 13/05/2015 Lecture 5.2 Lessons from large companies Role of tacit information XEROX: maintenance Co-creation KLM; co-createwithcustomerstheir flight experience The role of business models XEROX; from product to service Openness[<= economies of scaleand scope] KLM: Third party arrangementsforground transportation Xerox: offering print services Pagina 33 van 40