ICP

ICT and Company Practise

College Innovation Management

Dinsdag 3 april 2007

Geleyn Meijer

ICP 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.

ICP 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

ICP Embedded Innovation (2)

• Adoption and hype curves

Reality

Expectation(hype)

Time

1

2

3

4

ICP Embedded Innovation (3)

• EDEN (Exploration, Development and ExploitatioN)

Exploration Development Exploitation

Reality

Expectation(hype)

Time

New Business ItemsMonitoring Choices Steer

1

2

3

4

ICP Embedded Innovation – 3 steps

Operating unit

CEO

Operating unit

Operating unit

Operating unit

Operating unit

Portfolio management Innovation management

13

2

Balancing, Handover, Implementation

ICP 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

ICP 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.

ICP 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

Grid Services

VL-e Application Oriented Services

ICP 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.

ICP

Business case: 06-bier

ICP Business case: 06-Bier

Video

ICP 06Bier

• Register group

• SMS per participant

• ‘Paying participant’ is assigned with SMS

• “Beer on the house” given at random by bar

ICP 06Bier business case

• StakeholdersWho are stakeholders, investers, users?

• Value chainWho produces what to whom; who pays for

what?

• Marketing & acceptanceTarget group, marketing, business case?

• Go/nogo?

ICP Managed services

ICP

Invoice for the Yearly participation fee

Amstel Bars and Cafes

Users (06Bier players)

MSP

TELCOs

Invoice for the Yearly participation fee

Invoice for 06Bier SMS (post-paid users)

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.

ICP

Tijd

Marketing ICT produkten

Acc

ep

tati

e

1-3 jaar

ICP Diffusion of innovations

• Innovators• Early adaptors• Early majority• Late majority• Laggards

•Techies

•Visionaries

•Pragmatists

•Conservatives

•Skeptics

ICP

Business case: in-car services

ICP

1. A dvantage to the user;

2. C ompatibility with lifestyle;

3. C omplexity of use;

4. O bservability of the benefits to others;

5. R isk (financial or social) to the user

6. D ivisibility of the application

• increase perceptions of Advantage, Compatibility, Observability and Divisibility

• decrease perceptions of Complexity and Risk

The ACCORD analysis

ICP

Traffic management• Access control • Dynamic and intelligent speed adaptation • Environmental traffic & demand management • Incident management • Lane control (including speed management) • Parking management • Ramp metering • Re-routing • Road status monitoring • Traffic monitoring • Urban traffic control • Vulnerable road user facilities • Automatic vehicle guidance• Green waves• Platooning• In-car message signs

Traffic and travel information• Pre-trip and on-trip information • Dynamic Route guidance and navigation • Point of interest information• Parking information• Touristic information

On-board diagnostics• Remote check-up• Remote recovery

Payment systems• Integrated payment • Parking payment • Payment for road use • Public transport payment • Remote payment for services

Public transport• Car pooling/sharing management • Congestion management • Demand-responsive public transport • Public transport priority

Security and emergency management• Breakdown and emergency alerts • Collision avoidance • Public transport security • Rescue services incident management • Winter maintenance • Alarm• After theft control with vehicle recovery

Entertainment• Internet access• E-mail, fax, …• Multimedia on demand

ICP Business case: in-car services

Four commercial services

1. Dynamic and intelligent speed adaptation

2. Automatic vehicle guidance

3. Parking information

4. Parking payment

Judge adoption rate on scale 0(bad) – 5(good).

Present result

ICP Assignment

• Study the article: “IT doesn’t matter” from Harvard Business Review, by Nicholas Carr

• Form your own opinion and formulate on paper

• Form pairs and study the debate that followed the publication

• Formulate recommendations for the ICT strategy of a telecoms service provider

ICP Tentamen: essay

• 50% bepalend voor cijfer• Schrijf een toekomstvisie over de rol van ICT in bedrijven en ga in op de rol

die sourcing, ICT governance, risk management en juridische aspecten zullen spelen. De centrale vraag is: wat bevelen jullie KPN aan wat betreft toekomstige investeringen in ICT. Inzetten op sourcing en alles buiten de deur? Of zorgen voor goed portfolio management? Of focus op innovatie en projecten vooral zelf doen met goede risico beheersing?

• Omvang essay tussen 2 en drie kantjes A4. Werk in groepen van 3-4

• Opbouw:– Achtergrond– Vraagstelling– Analyse– Conclusies– Aanbeveling

ICP Tentamen: presentatie

• 50% bepalend voor cijfer

• Voor de presentatie kan gekozen worden tussen twee mogelijkheden:– een presentatie van het essay– een presentatie van een business case

• Er mag in groepjes van 4 gewerkt worden.

• Iedere presentatie max 15 minuten met 5 minuten Q&A.