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Co-‐Crea'ng Innova'on Hubs Beirut, Lebanon, October 21st 2014 SLIDE PACK FOR THE WORKSHOP Day 1 21 October 2014
1
Objec&ves The workshop has 2 objec&ves: 1. Co-‐create & define with all stakeholders ac'ons to strengthen the mobile internet
ecosystem. 2. Brainstorm a year of innova'on ac'vi'es among all stakeholders of the ecosystem to
support job growth and compe''veness.
Challenge Create a mobile internet innova'on ecosystem concept that supports technology startups and entrepreneurs to create real & tangible value in terms of jobs & growth. This means that this concept will have to create simultaneous value for all par'cipants in the mobile internet ecosystem.
Introduc'on to the component Team work: objec'ves
2
Day 1 Component 1
Discovering Innova'on Ecosystems Beirut, Lebanon, October 21st 2014
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Workshop flow & methodology of 4D’s
Source: adopted and modified Koria 2013 from the UK Design Council
Discovering Innova'on Ecosystems
Defining Value
Opportunity
Develop Service and Business
Delivering to the Real World
Wide view on policy & system
Tight focus on applica'on &
implementa'on
Feedback through tes'ng
1 Discovering Innova'on Ecosystems
1 2 3 4
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• The idea of the innova'on ecosystems. • Importance of users in ecosystems & their limita'ons • The changing role of business: plaWorms and networks. • The importance to stakeholders, roles of actors. • Components of an entrepreneurial ecosystem (culture, policy, suppor'ng systems, markets, human capital and finance)
• Introducing the ecosystem canvas.
Introduc'on to the component Background & content
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Any defini'on of innova'on involves three main a[ributes:
• Novelty • The new as in previously unknown or as novelty to the circumstance
• Need & U&lity • Innova'on is based on need
• Success • This can imply commercial success, but also widely diffused new
organiza'onal configura'ons or reconfigured assets
ü Without these, there is no innova'on! Innova'on exploits new knowledge and needs to be socially acceptable
Starting with definitions of innovation Innova'on and ecosystems
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Bruce & Bessant 2002: • Innova&on is the successful applica'on of new ideas in
prac'ce in the form of new or improved products, services or processes
• Crea&vity is the ability to combine ideas into new ways to solve problems and exploit opportuni'es
• Design is the purposeful applica'on of crea'vity throughout the process of innova'on
2.4 Design Thinking in Business Innova'on, Crea'vity, Design
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BIZ
GOV
UNI
USERS
Top down
BoCom up
Users in innova'on ecosystems
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• Innova'on can be seen as a “User-‐driven” process: – Increasing customer interac'on – Co-‐crea'on – Users as originators of innova'ons – Open innova'on thinking – Crowdsourcing – Interpreters
ü User (demand) led innova'on is impac'ng on firms, organiza'ons and thus business models and innova'on strategy
User driven innova'on & co-‐crea'on
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• We are moving from pipeline business into plaWorms
• We are also moving from products to services and product-‐service systems that are driven by business models
ü Nature of biz is changing in to networked hybrids, where value is created through interac'on
Changing nature of business
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• Pipes • The conven'onal industry and dominant model of business un'l today
(television, britannica, educa'on systems, industry, services). • Firms create products & services, push them out and sell. • Value is created upstream and consumed downstream. • Linear flow, ohen one way • Our users interact with the so/ware we create. Our product is valuable by itself.
• PlaWorms • Massive shih of business caused by the internet (youtube, wikipedia, airbnb) • Users create and consume value • Different business models from pipes • Need to build up with producers and consumers in mind • Our users interact with each other, using so/ware we create. Our product has
no value unless users use it.
Source: Sangeet Paul Choudary www.wired.com
From Pipes to PlaWorms
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Management of a project-‐based
firm
One firm
Many projects
One project
Management of a project network
Management of a project-‐based firm
Many firms
Many projects
One project
Management of a business network
Management of a single project
Complexity and direct control. Koria 2012, Adapted from Ar[o et al. 2011
Nature of neworked business
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• Originate from the natural sciences, and have many similari'es with biological ecosystems:
• Dynamic in nature • Made up of interconnected organisms that operate in a shared environment.
• The evolve, grow and and contract, and can be destroyed if the environment suffers dras'c changes.
• FINE, BUT: the analogy needs careful considera'on: • In business ecosystems, actors are inteligent and able to to plan and understand the dynamics of the system.
• The goal of business ecosystems is to deliver innova'ons (i.e. expansive growth), whereas natural ecosystems are only aiming at survival.
Ecosystems
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Moore’s (1996) model & stages of ecosystem development
Source: Heikkilä & Kuivaniemi, 2012 Source: Rai'sto, 2013
1. Pioneering
stage
2. Expansion stage
3. Authority stage
4. Renewal stage
Ecosystem models
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Source: Salonoja 2013 aher Isenberg 2010
Ecosystems models
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Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Adapted from Gradl et al. (2008, p.44)
Top-‐down Bo[om-‐up
Top-‐do
wn
Bo[om
-‐up
Leverage own capabili&es Collaborate with other stakeholders
Innova'on ecosystem
BOTTOM UP
TOP DOWN
Hub roles in ecosystems
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Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Adapted from Gradl et al. (2008, p.44)
Top-‐down Bo[om-‐up
Top-‐do
wn
Bo[om
-‐up
Area of high coordina'on and advocacy needs
Innova'on ecosystem
Area of high know-‐how needs
Leverage own capabili'es Collaborate with other stakeholders
Area of best local knowledge
Hub roles in ecosystems: integra'on
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Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Adapted from Gradl et al. (2008, p.44)
Top-‐down Bo[om-‐up
Top-‐do
wn
Bo[om
-‐up
Innova'on ecosystem
Leverage own capabili'es Collaborate with other stakeholders
Tendency of emerging incremental innova'on from local sources
Tendency of emerging radical, disrup've innova'on from externali'es
Hub roles in ecosystems: transla'on
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Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Adapted from Gradl et al. (2008, p.44)
Top-‐down Bo[om-‐up
Top-‐do
wn
Bo[om
-‐up
Area of high constraints to the use of local capabili'es
Innova'on ecosystem
Leverage own capabili'es Collaborate with other stakeholders
Area of best local capability
Hub roles in ecosystems: expanding
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Latent Stakeholders 1. Dormant stakeholder; only power 2. Discre'onary stakeholder; only legi'macy 3. Demanding stakeholder; only urgency Expectant stakeholder 4. Dominant stakeholder; power and legi'macy 5. Dangerous stakeholder; power and urgency 6. Dependent stakeholder; legi'macy and urgency Highly salient stakeholder 7. Defini've stakeholder; all a[ributes Non-‐ stakeholder 8. Non-‐ stakeholder; none of the a[ributes
1
3 2
45
6
7
8
Source: Mitchell, R., Agle, B., Wood, D. 1997
Stakeholder influence in ecosystems
20
SUPPORT – CULTURE - POLICY
HUMAN CAPITAL – MARKETS - FINANCE
CORE BUSINESS
KEY ACTIVITIES
OFFERING
CLIENTS
EXISTING ECOSYSTEM
SERVICE / BUSINESS MODEL
Ecosystem-‐business models-‐offering
CUSTOMER VALUE
SOCIETY 21
Day 1 Teamwork 1
Ecosystems Analysis Beirut, Lebanon, October 21st 2014
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SeNng the Scene The par'cipants introduce themselves and agree on the ground rules for the teamwork. The group is divided into six teams. Char&ng the ecosystem The char'ng assignment of the group-‐work of the component takes the presented ecosystem model as the star'ng point. The whole group of the par'cipants works on char'ng the the same overall ecosystem. Each group analyses a specific set of elements of the innova'on ecosystem model. 1. The first step of the exercise is to iden'fy to actors, and stakeholders of the ecosystem.
2. The second step is to iden'fy the amtudes towards the new as indicated in the canvas. The typical ques'ons maybe altered and/or added to.
3. At the end of the session the teams come together and present the ecosystem components to all the teams, mapping out the ecosystems through flipchart pages and post-‐its on a wide oval map on a wall of the room. The importance of the connec'ons between the key actors should be highlighted in the exercise.
4. Before the coffee break, the overall model is reviewed to iden'fy key missing items and connec'ons.
Teamwork 1: Ecosystems Analysis
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Exercise 1
90 minutes
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What challenge do we want to address with the Innova'o Hub?
10 minutes
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What challenge do we want to address? 4 x 30 seconds
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First step: iden'fy actors and stakeholders of the ecosystem.
Second step: iden'fy the amtudes
towards the new.
15 minutes 27
NEGATIVE POSITIVE
CULTURE Is the ecosystem inward - outward looking? How do the players behave inside the ecosystem? How does the ecosystem react to disruptive innovation?
POLICY Are there feedback loops – does the government listen? What kind of leadership is the government offering? How do policies support developing new ideas?
SUPPORTS How developed is the infrastructure of the ecosystem? Are there any support professions available? Do supporting non-governmental institutions exists?
MARKETS Are players capable of networking inside and outside? What kind of customers and consumers exist? Are the markets open - closed?
HUMAN CAPITAL What kind of human resources exist in the ecosystem? How do the educational institutions support the ecosystem? How much are new ideas and entrepreneurship encouraged?
FINANCE How is the government supporting the ecosystem? Are new ways of financing enabled? How easy is it to fund emerging services / business ideas?
THE ECOSYSTEM CANVAS
28
Presenta'on of the ecosystem of your challenge.
4 x 5 minutes
29
Day 1
Component 2 Defining Value Opportunity Beirut, Lebanon, October 21st 2014
30
Workshop flow & methodology of 4D’s
Source: adopted and modified Koria 2013 from the UK Design Council
Discovering Innova'on Ecosystems
Defining Value
Opportunity
Developing Service and Business
Delivering to the Real World
Wide view on policy & system
Tight focus on applica'on &
implementa'on
Feedback through tes'ng
2 Defining Value Opportunity
1 2 3 4
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• Value as a central component of any business/service/product development process.
• What is meaningful in terms of innova'on? • Value is also always created on mul'ple levels, and we will talk about user, organiza'on/company, ecosystem, and societal levels of value crea'on.
• Business models build up the concept of value
Introduc'on to the component Background & content
32
1.1 Towards innovation ecosystems
Add pic here the
6th Kondra'ev wave
Source: Wilenius & Kurki 2012
High end value crea'on is dependent on current cycle and the degree of the intangibility and scalability
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Development of the value of intangible assets as a percentage of total market value of S&P 500 companies.
The intangible nature of value
Source: Harju2012 34
1.1 Towards innovation ecosystems
Past: Agricultural economy ê
Past: Industrial economy ê
Now: Experience economy ê
Emerging: Knowledge economy ê
Future: Transforma&ve economy?
Mul'ple economies
35
From products to solutions
New mindsets Industrial Economy (1950-‐ )
Experience Economy (1980-‐ )
Knowledge Economy (unfolding)
Transforma&on Economy (future)
People mindset
Cap'va'ng idea Product ownership Experience Self actualiza'on Meaningful being
View Local Global Contextual Systemic
Quest Modernizing life Explore lifestyle idenAAes
Individual empowerment
Address collec;ve issues
Effect ProducAvity + family life
Work hard play hard Develop your potenAal Meaningful contribu;on
Skills SpecializaAon ExperimentaAon CreaAvity Transforma;ve thinking
Approach Follow cultural codes Break social taboos Pursue aspiraAons Empathy & coopera;on
Business mindset
Economic drivers Mass produc'on Marke'ng & Branding Knowledge plaWorms Value networks
Focus Product funcAon Brand experience Enabling creaAvity Enhancing meaning
Quali'es Products Product-‐Service mix Enabling Open-‐tools Inclusive value networks
Value proposi'on CommodiAes Targeted Experiences Enable self-‐ development
Ethical value exchange
Approach Persuade purchase Promote Brand Lifestyle
Enable ParAcipaAon Leverage Coopera;on
Goal Profit Growth Development Transforma;on
Source: den Ouden, 2011 36
New value propositions need to:
Meaningful innova'ons: ü Make it possible to improve quality of life in society ü Enable ecosystems to “do good” and provide value to stakeholders ü Provide opportunity for organisa'ons to “do well” to ensure
con'nuity ü Offer pleasurable experience for the user, which changes
behaviour permanently And mul'ple actors needed to: ü Jointly contribute knowledge, experience, resources ü To deeply understand the societal issues at hand ü To generate ideas that really solve problems
Meaningful innova'ons
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• Internally: – The unexpected success, failure, outside event – The incongruity between reality as it actually is and how it is
assumed to be – Process needs – Changes in the industry & market structure that catches
everyone unawares • Externally:
– Demographics (popula'on changes) – Changes in percep'ons, moods and meanings – New knowledge, both scien'fic and non-‐scien'fic
Source of innova'ons / Drucker
38
Value proposition
• The value proposi'on and offering is why a customer chooses the firm/organiza'on instead of another
• Its solves the customer’s problem, or sa'sfies a need • It is the benefits that that a service / company offers ü Designing innova've value proposi'ons can create real
advantages in both radical and incremental market and technological innova'on
Challenges with opportuni'es
39
Challenges with opportuni'es
40
Goods
Customer Interac'on
Service
New Business & PSS & Concept Innova'ons
Technology Feasibility
Human Factors Desirability
Business Viability
Design innova'on
Offering to clients from the feasibility-‐viability-‐desirability perspec've
Offering to clients from the Product-‐ Service System (PSS) perspec've
Designing the offering
41
Technology, Business & People
42
1. Can use design thinking to make current processes and offering be[er (incremental innova'on)
2. Needs to think “what if” (future orienta'on) 3. Find a place for new business using design-‐driven inno
va'on (radical innova'on) 4. Promote cross-‐func'onal (team) crea'vity in the
organiza'on (to create new offering) 5. Need to create concurrent experiments and real 'me
feedback mechanisms (to manage ambiguity)
Management & Design Thinking
43
SUPPORT – CULTURE - POLICY
HUMAN CAPITAL – MARKETS - FINANCE
CORE BUSINESS
KEY ACTIVITIES
OFFERING
CLIENTS
EXISTING ECOSYSTEM
SERVICE / BUSINESS MODEL
Ecosystem-‐business models-‐offering
CUSTOMER VALUE
SOCIETY 44
Day 1 Teamwork 2
Crea'ng Value Beirut, Lebanon, October 21st 2014
45
The Challenge The par'cipants will form four groups and decide on a perspec've to the challenge to develop jointly. The teams will start the case study development work by idea'on and iden'fying the opportuni'es for meaningful innova'ons. The teams will develop opportunity statements. Crea&ng Value for clients Through the value framework thinking, the teams will examine how to iden'fy services that create value in the chose cases. 1. Through an idea'on process the teams will develop a proposal for an offering
while iden'fying who this offering is meant for. 2. At the end of the session the teams come together and present their idea of
the opportunity statement, a descrip'on of the offering and a value framework.
Teamwork 2: Crea'ng value
46
Delivering value I
• Newness – Sa'sfying an en'rely new set of needs through new offering, ohen technology
related • Performance
– Improving products or services • Customiza'on
– Tailoring products an services to the needs of customers (mass customiza'on, customer co-‐crea'on)
• “gemng the job done” – Helping the customer get things done in their own business
• Design – Differen'a'ng in products and services
• Branding/status – Crea'ng dis'nc'on through products and services
Crea'ng value 1
47
Delivering value II
• Price – Offering similar/superior value at the same or lower price
• Cost reduc'on – Helping customers to reduce their costs
• Risk reduc'on – Reducing risks for customers
• Accessibility – Making products and services available to new groups
• Convenience/usability – Making things easier to use
Crea'ng value 2
48
Economy Psychology Sociology Ecology
Society Wealth Wellbeing Meaningful life Livability of environment
Ecosystem Stability Shared Drivers Reciprocity in networks
Sustainability
Organiza&on Profit Core values Social responsibility
Eco-‐effecAveness
User Value for money Happiness Belonging Eco-‐footprint
Source: den Ouden, 2011
Ques'ons to answer: What is the opportunity that has been iden'fied? What is the offering that can be created to use the opportunity?
Value framework
49
Exercise 2
90 minutes
50
What opportunity can we iden'fy?
10 minutes
51
What offer can we create to use the opportunity?
10 minutes
52
What is the added value of our offer for the different stakeholders?
20 minutes
53
Presenta'on of results.
4 x 5 minutes
54
End of Day 1 Co-‐Crea'ng Innova'on Hubs Beirut, Lebanon, October 21st 2014
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