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ICT and Company Practise. College Innovation Management Vrijdag 25 april 2007 Geleyn Meijer. Tentamen: essay. 50% bepalend voor cijfer voor dit onderdeel Schrijf een case study over minimaal 2 voorbeelden van open innovatie Vergelijk case study met vragen uit “een beetje verliefd”
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ICT and Company Practise College Innovation Management Vrijdag 25 april 2007 Geleyn Meijer
Tentamen: essay • 50% bepalend voor cijfer voor dit onderdeel • Schrijf een case study over minimaal 2 voorbeelden van open innovatie • Vergelijk case study met vragen uit “een beetje verliefd” • Omvang essay tussen 2 en drie kantjes A4. Werk in groepen van 3 • Opbouw: • Achtergrond • Vraagstelling • Case study 1 • Case study 2 • Analyse • Conclusies
Tentamen: presentatie • 50% bepalend voor cijfer • een presentatie van het essay • Alle groepsleden geven een onderdeel van de presentatie • Iedere presentatie max 15 minuten met 5 minuten Q&A.
A services based society? • Vitality of European society increasingly based on services • >70% productivity (BRP) are services • Services are no products • The creativity needed to innovate in services is: • closely linked with client interaction and therefore needs to be embedded in the existing day-to-day relations with the clients • is an on-line affair since responding to challenges must be swift • creative results are quickly exposed in the commercial market reality and can have a short life span.
Embedded Innovation (1) Key features: There is no central research or R&D organisation. • Instead, the staff involved in the innovation process form a truly virtual organisation within the corporate domain. • Innovation management is a coordination function for the activities within the operational divisions. • It initiates and coordinates the innovation activites and ensures alignment with the corporate management team. • Setting top-down themes, inviting bottum-up initiatives
Embedded Innovation (2) • Adoption and hype curves
Innovation and solution developmentHand-off Hand Off Early stage qualification Innovation domain Defined proposition Execution domain € Research & Innovation Solution Development Client alignment & Internal fit Investments Strategy & Portfolio Management DI DL DJ DF DR Hype Turnover Marketing Sales Private and Confidential
Embedded Innovation (3) • EDEN (Exploration, Development and ExploitatioN)
CEO Innovation management Portfolio management 2 3 1 Operating unit Operating unit Operating unit Operating unit Operating unit Embedded Innovation – 3 steps Balancing, Handover, Implementation
Case-study 1 • Developing a M-ticket service for railway operators • 2000 Exploration • 2001 Development of prototype • 2002-3 Validation pilot • 2004 Market take-up
Case Study 1 - Results The lessons learnt : • in the exploration phase, involve end-user representatives and academics. • manage expectations in delivery units since it takes more than one budget year to get mature solutions. • in the solution development phase, don’t stick to ambitions of exploration phase. Market take-up comes in different areas and under different names. • in the launching phase, widen up the scope of potential use and look for quick wins, even if that implies to postpone to apply the original exploration results. This requires a shift in involved personnel as well.
Grid Services Case Study 2 Developing a GRID-service provider • 40 M€ • 2004 – 2008 • 20 partners • Academic – Industrial • Early days for non-academic applications • Leads toclock-frequenciesdilemma VL-e Application Oriented Services
Case Study 2 - Results The lessons learnt: • install an internal project team which acts as shadow to the large cooperation project. Use this team to expose the rest of the organisation to the new topic. • the shadow team reaps results from the cooperation project and translates these to internal company expectations. These results are focussed on the immediate corporate needs such as strategy formulation, communication, strategic client interaction, retention. • Pay constant attention to the hype cycle. Appreciate that there is no easy ride and that actual progress takes time. If the hype rising steeply, it may come down just as swift.
Business case: 06-Bier Video
06Bier • Register group • SMS per participant • ‘Paying participant’ is assigned with SMS • “Beer on the house” given at random by bar
06Bier business case • Stakeholders Who are stakeholders, investers, users? • Value chain Who produces what to whom; who pays for what? • Marketing & acceptance Target group, marketing, business case? • Go/nogo?
Amstel Bars and Cafes Invoice for the Yearly participation fee Invoice for the Yearly participation fee MSP Invoice for the 06Bier SMS that the MSP sends to the players as feedback. Invoice for the Shared percentage of the extra SMS traffic originated by 06Bier. TELCOs Users (06Bier players) Invoice for 06Bier SMS (post-paid users)
Marketing ICT produkten Acceptatie 1-3 jaar Tijd
Diffusion of innovations • Innovators • Early adaptors • Early majority • Late majority • Laggards • Techies • Visionaries • Pragmatists • Conservatives • Skeptics
The ACCORD analysis • Advantage to the user; • C ompatibility with lifestyle; • Complexity of use; • Observability of the benefits to others; • Risk (financial or social) to the user • Divisibility of the application • increase perceptions of Advantage, Compatibility, Observability and Divisibility • decrease perceptions of Complexity and Risk