Innovation, Strategic Resilience and Renewal

1. Innovation, Strategic Resilience and Renewal Andrew McAfee from Management Innovation eXchange (MIX) Tony Kiuru, Elina Lankinen, Lotta Länsiö

2. Introduction to Andrew McAfee

3. Introduction to Andrew McAfee • Publications in Harvard Business Review, The Economist, Forbes, The Wall St. Journal, and The New York Times • Speaks frequently to academics and industry audiences, most notably at TED 2013 • Books: • Enterprise 2.0: New Collaborative Tools for Your Organization's Toughest Challenges • Race Against the Machine with Erik Brynjolfsson: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy • Editors of the technical publishing house Ziff-Davis named McAfee as the number 38 in their list of the “100 Most Influential People in IT.

4. Current Research • Studies how information technology and computerization affects: • Business (the way companies perform, organize themselves, and compete) • Society • Economy • Workforce • Main recent research areas: • Technology’s Effects on the Workforce and the Economy • Enterprise 2.0: the business use of ESSPs • The Competitive Impact of Information Technology • What Makes a Company Good at IT?

5. General Beliefs Modern IT is one of the most important driving forces in the economy Modern IT is the most powerful tool available to business leaders Technologies are racing ahead but many of our skills and organizations are lagging behind We cannot win the race against technology, but we should embrace it - use machines as allies rather than adversaries We are now in the Second Machine Age - this era won’t just be different; it will be better

6. Resilience and RenewalIT is increasing the pace of business competition: companies that embrace IT do better • ‘Investing in the IT that Makes a Competitive Difference’ (HBR, 2008), co-author Erik Brynjolfsson: • Competition in US industries accelerated in the middle of the 1990sas important new technologies like the Web and commercial enterprise software became available to companies • The gap between high performing companies and low performers increased • Turbulence increased • Concentration began to increase after many years of decline • All of these changes occurred in industries that spent more on IT  Greater IT spending is associated with more intense competition at the industry level. • Companies that embrace and invest in IT can gain a competitive advantage, helping them persevere.

7. InnovationModern IT can help accelerate organizational innovation and enhance human capital • IT, such as tools for analytics, crowdsourcing, etc. are increasing the number of good business ideas • Technologies that support communication and workflow help create ideas – innovations that were formerly isolated can now spread globally • ESSPs (emergent social software platforms) • Solve longstanding challenges around knowledge capture and sharing, locating expertise, and harnessing the wisdom of crowds • Support collaborative work and opens up innovation processes • Embracing IT can help companies improve their communication and enhance their innovation.

8. Evolution of McAfee’s Proclamations Acknowledging shortcomings and studying common pitfalls Advocate of resilience from the beginning: not only companies born digital can profit from things like web services and big data; old businesses can gain a competitive advantage as well From plainly promoting IT to educating about challenges and ‘looking at it the right way’: like Coutu (2000) points out, resilience stems from realism IT by itself is not a self-evident road to innovation and will not transform your business unassisted Major IT acquisitions and implementations require unique approaches in unique situations, time and systematic management and other effort Advocate of renewal; transforming businesses

9. Thank You Any Questions?