X.N. Iraki, PhD, CDN
A process of determining, acquiring, analyzing, synthesizing, and disseminating relevant data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that, in turn, maximize business performance
Research Formal vs. Informal Public vs. Private Innovation Formal vs. informal New Firms, Growth of old ones, DEATH? Economic growth and development GNH
New Research Perspectives (Investment vs. Cost) Information Overload Technological Connectivity Computing Power & Speed Battle for Analytical Talent (thinkers are rare!) Factors Shifting Global Economics Critical Scrutiny of Business (profit=revenue-costs) Government Intervention (regulations, new laws) 1-5
Organizational Mission Business Goals Business Strategies Business Tactics 1-6
Country R&D/GDP (2011): World Bank Korea, Rep. 4.03919 Israel 3.97351 Finland 3.79677 Japan 3.38807 Sweden 3.38709 Denmark 2.97599 Germany 2.89286 Austria 2.76578 United States 2.76264 Iceland 2.60487 Kenya 0.97617 (2010)
Country(R&D % of GDP) 1960-2007 Country(researcher per million people) Average Israel 4.3529 Finland 7197.483 Sweden 3.8188 Iceland 6631.773 Finland 3.3290 Sweden 5410.814 Japan 3.1893 Japan 5319.753 Switzerland 2.7488 Denmark 4669.956 Korea, Rep. 2.7264 Norway 4656.316 Iceland 2.7102 Singapore 4612.669 United States 2.6609 United States 4590.873
Research at Corporate level
How much money do you put into research? How many of you work in research? AIBK- great work, conferences ought to share the latest in research Where do you do your research? Local vs. global Markets. Do you benchmark (not MCA style) Your research focus? Markets Behaviour- VIP lift, Bad news, names e.g Ethan, Jayden, Ryan, Brian, Ian, Kevin Religion vs. Insurance How far will bank eat into your market? Technology-threat or opportunity (Bank handling of Mpesa) Our needs, do not assume ( Nigerian well, FGM, Witchcraft)
Research Formal vs. Informal Public vs. Private Innovatio n Formal vs. informal New Firms Growth of old ones DEATH? Economic growth and developmen t GNH
New product or their improvement or unique ways of offering services; Invention-completely new eg radio Duplication-within the law, phones, Extension-incremental improvement, from Iphone 5 to 6 Synthesis-chemistry, writing, metallurgy, Boeing 747 windows, witchcraft
Aerosol can 1926 Air conditioning 1902 Airbag, automotive 1952, Airplane, engine-powered 1903 alphabet c. 1700 1500 American Sign Language 1817 Animation, motion-picture 1906, Answering machine, telephone 1898 Aspirin 1897. Assembly line 1913 Mobile phone, 1973 (2 kg)
Patents are key indicators because of commercialization
A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application. Lasts for about 20 years; Why generics are cheaper Categories filings and grants Resident domestic filings Non-resident filings coming in from other countries Abroad filings going out to other countries
0 20 40 60 80 100 120 140 160 180 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Patents-Kenya Patents
70000 Patents-South Korea 60000 50000 40000 30000 Patents 20000 10000 0
29
30
31
6-39
450000 400000 350000 300000 250000 200000 Japan United States China 150000 100000 50000 0 2015.11.06. X N Iraki
14-52
Innovations at corporate level
Table 1: 2011 U.S. Patent Leaders Firm Number of Patents 1. IBM 6,180 2. Samsung 4,894 3. Canon 2,821 4. Panasonic 2,559 5. Toshiba 2,483 6. Microsoft 2,311 7. Sony 2,286 8. Seiko Epson 1,533 9. Hon Hai 1,514 10. Hitachi 1,465 Sources: http://www-03.ibm.com/press/us/en/pressrelease/36463.wss
Innovations in Insurance Type of innovation Examples from insurance Product innovation? Process innovation? Organisational innovation? Management innovation? Production innovations? Commercial/marketing innovations-coca Cola Service innovations-google?.
Name Brokers Communication (fear VS. SECURITY ; suppose you broke a leg) Investment versus risk management (we are very religious) Go beyond the law, if insurance was not mandatory? Consolidation: too many firms?
*Guilty till proved innocent, no claim discount *Do research on attitudes across regions and ages *Get them young- English Premier League Start! Who did KQ fly in Dreamliners *Diversity? USA Universities, Nairobi and 50 per cent of GDP *Married people get discounts? *Mpesalize insurance : how? CBA vs. others *Applize insurance
Apple quarterly results $18bn profit ( 11.8bn) - biggest ever by a public company $142bn ( 93bn) net cash reserves 74.5m number of iphones sold 39.9% profit per product 22% fall in sales of ipads Apple (Figures for three months to end December 2014).
We would create lots of new firms and lots of jobs like Walmart-2.2m Mcdonalds-420,000 Toyota - 333,500 TSC-275,000
Research Formal vs. Informal Public vs. Private Innovatio n Formal vs. informal New Firms Growth of old ones DEATH? Economic growth and developmen t GNH
25.00 20.00 15.00 10.00 5.00 Series1 0.00-5.00-10.00
HDI is the best measure of economic development, better than GDP growth rate. Literacy Life expectancy Per capital income NOTE: Economic growth is a necessary but not sufficient condition for Economic development Michael Todaro(UoN once) definition of Economic growth: High living standards, higher self esteem, freedom from oppression and greater choices. Let insurance catalyze economic development through innovation and research
HDI-Kenya 0.54 0.52 0.5 0.48 HDI 0.46 0.44 0.42 0.4 1980 1985 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013