Embed Size (px)
DESCRIPTION
IT is ever more available and affordable. But IT alone does not drive innovation. For that, you need to build an ecosystem around IT. We call this ecosystem intangible capital (IC). This presentation by Mary Adams of Smarter-Companies at the Microsoft WinDays14 conference contains lots of ideas and inspiration to drive innovation in your own organization.
Citation preview
IT + IC = Innovation
Mary Adams, Founder
This project re-built 14 bridges during10 summer weekends and shows thepotential for innovation even intraditional industries.
Smarter-Companies Inc.
We’re living a seismic change
Industrial Era �
� Knowledge Era
Agricultural Era �
As we endeavor to increase innovation,we are often hampered by ourindustrial roots. This presentationhighlights some of the basicmanagement concepts of the industrialera and the knowledge-era equivalent.
Inspirirani ljudima.
IT (information technology)
Making things � Solving problems
We still make and use city buses butsome of the most interesting innovationcomes in the use of open data from GPSin the buses that changes the experienceof finding and catching a bus.
Efficiency � Effectiveness
Kahn provides on-line mini-lectures thatcan be used for individualized learning.Each student can achieve mastery of eachtopic rather than everyone moving at thesame pace in an “industrial” classroom.
Cost/Quality � Experience
Illustration by Loulou & Tummie
Sysco, known for industrial food, istesting the provision of locally-grown organic produce to the U ofMichigan. IT fuels all theseprojects.
Inspirirani ljudima.
IC (intangible capital)
Tangible � Intangible
Fedex owns huge numbers oftangible assets but the essence (andvalue) of the company comes fromintangibles like people, processes,data, partnerships, brand and culture.
Scarcity � Abundance
One of the most exciting thing about intangibles likesoftware, data and knowledge is that they are notsubject to the economic laws of scarcity—which is how acompany like WhatsApp can build an app that attracts450 million users with just 55 employees and earn a $19billion price from Facebook.
Accounting � ICounting
WhatsApp also illustrates a keychallenge with intangibles: how tomeasure them. We advocate a newapproach to complement accountingthat identifies financial potential basedon how well a company creates valuefor its stakeholders.
Inspirirani ljudima.
Innovation
Top-down � Bottom-up/Outside-in
Innovation is important to business becausethe shift to the social/knowledge erarequires a constant flow of information andlearning in all directions. The answers rarelyreside just at the top.
Strategy � Innovation
Innovation is the knowledge-eracomplement to traditional, top-downstrategy. It creates an environmentwhere new strategies and solutionsemerge.
Control � Collaboration
Amazon’s marketplace shows howcollaboration with other vendorscreates much more value (forcustomers, partners and for Amazon)than keeping their network closed.
Inspirirani ljudima.
Toolkit
Chief Innovation Officer study
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 theU.S. demonstrated the need for understanding the ICcomponents of the innovation ecosystem.
Innovation process
Idea Generation Selection Development Commercialize
A process like this simple one can bevery helpful to encourage andmanage innovation.
Innovation ecosystem
IC
But as the study showed, successfulinnovation also needs to cultivate ahealthy intangible capital ecosystem.
Measuring IC ecosystem strength
ICounting measures the strength ofthe intangible capital that makes upthe ecosystem connecting IT andinnovation.
Inspirirani ljudima.
Challenges/Opportunities
The industrial model is not sustainable
Industrialization is losing its power as amanagement approach. It guides us to do thewrong things in the wrong ways. We must keepthe strengths of the past but create newstrengths and capacities.
Luckily, innovation thrives on constraints
Aravind shows us that new constraints can be a powerful driver ofinnovation. Their focus on cataracts as a leading cause of blindnessin India has enabled them to provide surgeries for $20 that cost upto $5,000 in the U.S. Constraints are our friends
Constraints
• Poverty
• Jobs
• Pollution
• Waste
• Energy use
• Health
• Education
The Opportunity
Making everyday life happier, healthier and
more productive—how will you help?
Inspirirani ljudima.
IT + IC = Innovation
What’s your innovation equation?
