Innovation and IS Kieran Mathieson. What is Innovation? Long definition Successful innovation is...

Innovation and IS

Kieran Mathieson

What is Innovation?

Long definition Successful innovation is the creation and

implementation of new processes, products, services and methods of delivery which result in significant improvements in outcome efficiency, effectiveness or quality.

Short definition Ideas that work.

Outline

Why Innovate? National Innovation System Innovation in Your Firm Barriers to Innovation IS and Innovation Developing IS

Why Innovate?

Product’s total valueto the customer

Replicable value(competitors canreproduce this value)

Unique value(competitors can’treproduce this value)

Basis of Competition?

Unique

Replicable

Which one would you rather compete on?

Compete on Replicable Value

This is cost competition A race to the bottom (price)

Competition based on production and distribution processes

Attractive strategy when you have natural cost advantages

But: A competitor beats you on cost, even just a little Demand for the class of products changes

Compete on Unique Value

Your price can reflect the value that only you can add

Value-added can compensate for cost disadvantages

Example: IBM

Sources of Unique Value

Legal protection Patents State monopolies

Market domination Monopoly

Product perceptions Innovation

Expiration, new technology

Political trends

Vulnerabilities

Legal action, privatization, new tech

Counter promotion (e.g., generics)

Must be continuous

Innovation lets you offer customers real value that others cannot replicate.

Outline


Steven W. Popper and Caroline S. Wagner, New Foundations for Growth: The U.S. Innovation System Today and Tomorrow - An Executive Summary, 2001

National Innovation System

A nation with innovative companies: Generates more economic value for its

citizens Don’t need to pay starvation wages to compete

Will be less vulnerable to international competition Innovation barriers replace trade barriers

Innovation needs support from both the public and private sectors

Government Policies

Resource availability Natural resources Education and training Basic research (from universities and others) General policies encouraging innovation

E.g., tax credit for research expenses Focused policies in growth areas Data – access to government databases

Government Policies

Regulatory and budgetary environment Intellectual property protection National standards Infrastructure, e.g., Wireless Oakland Partnerships, e.g., university/industry Encourage innovation in the public sector Measure national performance

Government Policies

Communications Coordination within the public sector

Agencies should work together to encourage innovation

Promotion to the general public E.g., why they should expect continual training

Promote nation’s support for innovation to companies in other nations

National Innovation System

The bottom line:

Nations can encourage or discourage innovation within their borders.

This can affect the quality of its citizens’ lives.

Outline


Geoff Mulgan and David Albury, Innovation In the Public Sector, 2003

A Model

Generating Possibilities

How can we stimulate and support ideas for innovation? Only about half of all innovations are top

down Pay attention to users, frontline staff and middle

managers Exploit employee diversity Constant scanning – part of many jobs Work backwards from goals Create time and space Breaking the rules Competition between employee teams

Incubating and Prototyping

What mechanisms help develop promising ideas and manage attendant risks? Good ideas are easily killed by existing

bureaucratic procedures Select innovations for development, and give them

some slack Prototyping and piloting Incubators – separate organizations Modeling and simulation Involve end users

Replicating and Scaling Up

How can we promote the rapid and effective diffusion of successful innovation? Incentives Opinion leaders Use project management methods

Analyzing and Learning

How should we evaluate what works and what doesn’t to promote continuous learning and improvement? Metrics for success Peer and user involvement in identifying

lessons Identify inhibitors

Outline


Barriers to Innovation

Outline


Geoff Mulgan and David Albury, Innovation In the Public Sector, 2003

Innovation and IS

Change Resources

PeopleProcesses

ProductsIS

PeopleProcesses

ProductsIS

Things Being Changed

IS help changeoccur

IS are changed

Generating Possibilities

KM – gather and disseminate information about the industry, products, processes, etc.

Easy access to information sources Research papers, databases, …

Virtual communities Can be global

Gathering feedback from customers, frontline staff, etc. Surveys, “Contact us” forms, Web usage

data, …

But…

IS can obscure work processes Processes are out of sight Few people know enough about them to

generate ideas for improvement

Email not as rich as face-to-face

Incubating and Prototyping

What mechanisms help develop promising ideas and manage attendant risks? Simulation software helps people evaluate

and improve ideas Some software models can serve as

prototypes E.g., ATMs Evaluate users’ responses

Easier communication with potential end users

Replicating and Scaling Up

How can we promote the rapid and effective diffusion of successful innovation? Monitor use of innovations Communication Project management tools

But … IS can be costly and time consuming to change Resistance to deskilling and other effects of IS

Analyzing and Learning

How should we evaluate what works and what doesn’t? Automate measurement Make project data available to all Communication

Outline


SDLC

http://softbrains.com/services/softdev/sdlc.html

Prototyping

http://www.trell.org/ikt/systemutvikling.html

Prototyping Technology

http://www.charlyrobot.com

http://www.snyderconsulting.net

http://aig.cs.man.ac.uk

Outline


Innovation and IS Kieran Mathieson. What is Innovation? Long definition Successful innovation is...

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