Improving the process of Innovation :

Lessons from Entrepreneurs

Rajiv Tandon, Ph.D.

rajivtandon@gmail.com(952)-212-2410

Life Makes Sense Only in Hindsight: Connecting the Dots

Year Organization Enduring Impact

1966‐1969 Engineering, India Engineer:Make Something from Nothing

1971‐1986 Corporate, USA Business:Action: Start, Make, Build

1987‐2001 University  Academia: Reflection: From Doing it to Preparing Entrepreneurs

1971‐1992Control Data Corp.University of Illinois Education Theory:

Androgogy

1995‐2001 LearningByteLearning Technology: Lower Cost,Higher Quality

2001‐2014 AdayanaDomain: Leading Edge Technology but in the BackgroundThought Leadership

2014‐ ParijaathFacilitator, Incubator, Accelerator:

Why a session on Innovation today?Often wrong but seldom in doubt

• U.S. businesses are aging– Optimized for efficiency and quality and not for innovation– Innovation is treated as a secretive process: hence erratic

• Disruptive innovations come from entrepreneurs– Search for ideas from anywhere– Process is open, understood and replicated

• Entrepreneurs: Likely to be from emerging world– Start‐ups in US dropped from 15% in 1978 to 8% in 2011– Energy needs are soaring – New methods more immediate and intense

• Designed: Innovative Curricula – Plea: Couple it with innovative method(s) of delivery – For broad base of seekers

InnovationNeed and Reality

• Buzzword • Lots of spending • Marginal yields, at best, under Hyperchange

– Comfort : go down rather than change– Problem itself changes: prior solutions worthless – Preferences of leaders: ascended by prior rules‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Q 1: Any lessons from innovators (entrepreneurs)?Q 2: Consistent process for innovation effort?Q 3: Can these lessons be learned?

Responses to Change

Ignore (Frog)Cope (Masses)Revert to status‐quo (Manager)Find new methods (Leader)Exploit disruption (Entrepreneur)

• Seat of the Intellect

to

• Seat of the Pants

Process of Success Creation

STEP PROBABILITY 1. Person with an idea 1 %2. Opportunity 5 %

Hurdle 1:  Attract Talent3. Founding Team 10 %4. Venture Plans 15 %

Hurdle 2:  Fatal Flaws?5. Funding 25 %

Hurdle 3:  Initial Sales6. Beginning Sales 40 %7. Sales Growth 60 %

Hurdle 4:  Transition8.   Initial Success

Theoretical Construct Entrepreneur: The Driver

I.OPPORTUNITY

III.PLANS& STRATEGY

IV.RESOURCES

II.INDIVIDUAL& TEAM

E

M

© Tandon, 1994

The Qualitative Difference

• Traditional Management:– I’ll believe it when I see it.

• Entrepreneurial Management:– I’ll see it when I believe it.

Insights on Success CreationLaunching a boat to cross the river

• Success : – Doing a little bit better in a number of things

• Failure :– Doing any one of a number of things poorly

• Process of Success Creation : – One by one reduction of areas of risk

Entrepreneurs:Improving the Rate of Success

• Improved: 1. Ideation 2. Selection of Key Ideas3. Developing the Minimum Viable Product4. Market Test5. Pivot6. Grow

Growth Model: Evolution/ Revolution

Definitions

• Idea*– A thought; mental conception; mental image– A form, the look or appearance of things as opposed 

to its reality  – A plan; scheme; intention; aim

• Implement*– To carry into effect; to fulfill; accomplish

• Innovation* – Act of affecting change in the established order– Introduction of something newInnovation: An idea that is implemented

• Disposition– Inclination– Natural Fitness– Frame of mind

Innovation Process

4. Improvement

Resource Acquisition

Crafting

Business Plan

Opportunity Enhancement

Visualization

2. “Key” Ideas

1. Ideation Tandon, 1994

Pre-Disposition

1. Initiation

2. Transition Planning

3. Growth Planning4. Strategic Planning

5. Venturing 6. Turnaround Planning

BREAKPOINT

7. Portfolio Planning

Tandon, 1994

Same Approach of Innovation ProcessUnder Changing Contexts

(Actionable) Innovation

Innovation = Idea x Implementation

• Not a “Eureka” (chance) thing• Proven process for all four links

1. Ideation: Quality and Quantity of Ideas2. Key Ideas: Selecting the right projects 3. Pilot: Disciplined introduction of new initiatives 4. Improvement: Assimilation/ Commercialization

• Variety of methods and tools for efficiency

Improved Ideation:Key to Innovation

• Based on Whole Brain Model– Logical Methods– Intuitive Methods– Hybrid Methods

• Each one prefers a few methods• Add  more tools to your tool box

Logical Methods

• Left Brained, Analytical, Rational, Convergent

• Derivatives of the Scientific Method– Recognize a need– Define the problem– Develop a solution– Develop a method to test viability of solution

– Apply methodology– Compare results with expected results– Summarize findings

Logical Approach to Problem Solving

Mission

Situation Analysis

Strategic Issues

Objectives/Goals

StrategiesProgram and Support Plan

Priorities

Implementation

Control

Improvement

Business Plan

Visualization“Key” Ideas4-A Ideation

Resource Acquisition

Opportunity Enhancement

Crafting

Intuitive Methods

• Right Brained, Integrating, Holistic, Divergent

• Derivatives of the Creative Process– Problem Description– Incubation– Illumination– Verification

Hybrid Methods

• Hybrid, Accordion, Combination• Developing the other method (Logical, Intuitive) gives us more permutations/combinations

Risk Alignment

Stretch Targeted Innovation Clarity of Reason for Innovation Pro-active Search

Low Hanging Fruit Condition Organization Good Ideas for existing SBU’s

Forget It High Risk Unless:

– Required Practice– Minimum Threshold

Minimum Attention Reacting to ThreatAvoid Unless:

– A Must Do– To Protect Base

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Ideation Recap:Two Step Process

1. Start with lots of ideas 2. Select “Key Ideas”

• Remove duplicates, Assign “Low hanging fruit”• Screen  

• Is it an opportunity for i) us ii) today?• Product, Market• Cetris Paribus‐ all other things equal• Devil’s advocate: counter arguments• No “Fatal” flaws

• Propel or kill projects on risk alignment• Strategy• Pre‐disposition• Values• Energy

Implementation

B. Opportunity Identification 3. Visualization4. Opportunity Enhancement5. Business Plan

C. Implementation6. Crafting 7. Resource Acquisition

Leadership

Ideation Implementation

Innovation

Disposition

Process of Commercialization

ConclusionThe Original Question

• We have an Innovative Curricula – Can (Should) we couple it with innovative method(s) of delivery 

• For broad base of seekers• To get the most societal impact ?

Discussion