Ipma pcamp april10th2011.10113754

Five trends … what does it mean for

collaborative product innovation?

Sasken Confidential © 2008 Sasken Communication Technologies

G Venkatesh,

Chief Technology and Strategy Officer

Drivers for Value Creation … the value of the network

• Historically the value creation ability of an organisation was linked to

its size

• Later the idiosyncratic nature of an organisations access to specific

resources defined it’s value creation ability

2© 2008 Sasken Communication Technologies

• The new view is that value creation of a firm is determined by its

linkages to other firms

Why Collaborative Innovation?

• Definition:

Innovation is the ability to create value from inventions

• If value creation is determined by linkages, then how can a firm's

innovation ability be determined in isolation of the linkages?


• Hence Collaborative Innovation

Definition of Collaborative Innovation

• Collaborative innovation begins when companies come together to

solve problems and/or develop customer-centric solutions that are

beyond the scope, scale or capabilities of the individual companies.

• Enables business model innovation.


Why collaborative innovation fails

• “Not Invented Here” Syndrome

• Co-ordination failure

• Risk Perception

• Opportunism and monitoring costs


Where Collaborative Innovation has worked well

• Semiconductor Platforms and Software Partners(Trusted Semi leader, Complementary software)

• Patent Pooling - MPEG, ETSI (GSM), Bluetooth, RFID(Beating the patent trolls)

• Multi-core cell architecture for gaming consoles(Uniting against a dominant player)

• TDS-CDMA(Government directed)

• DoCoMo


• DoCoMo(Monopoly directed)

• Apple (Strong player directed)

• Android(Strong player directed - Uniting against a dominant player)

Strong cause, Institutions for trust

Collaborative Innovation where Indian software companies

have been thriving

• Semiconductor – software ecosystems

• Mobile content

• Product co-development

Cause: Institutions for trust:


Cause:Go where the talent isStretch the R&D dollarGo where the market is

Institutions for trust:Multi-dimensional relationshipsTrack record – dependabilityAccreditations

Trend 1:

From horizontal to vertical … single technology to integration

Value is in integration of technologies into

Component technology is less important

Moore’s law is dead


Value is in integration of technologies into

a solution for end user experience

Indian companies have developed

significant component skills

What about integration skills?

Trend 2:

Neither device alone, nor content alone … but a combination

Multiplicity of devices with I/O innovation

Web + Web2.0 – content explosion

Unstructured (user generated) data


Multiplicity of devices with I/O innovation

The combination is explosive !

Trend 3:

The rise of the community model

Aggregates shift the negotiation

Individuals subsumed to communities


Aggregates shift the negotiation

equilibrium

Creating value from communities

Decoding the Indian marketSource: Visualizing Economics(= GDP/capita x population/sq km)


India is rich per square km !

How do we deal with customer aggregates, rather than individuals?

Attacking the bottom of the pyramid

Total cost


Technology depth

Cost to servecustomers

Cost of deployingtechnology

Product/service aggregates – platform approach

Trend 4:

40 B machines connected to the Internet

… will throw their data into the Internet

4-5 B consumers

But

40 B machines !!!


… will throw their data into the Internet

in the future …

… and the next gen of engineering will be

born … Engg2.0

Trend 5: Frugal innovation –

Is there a new cost model in the making? World PPP figures


Conventional wisdom is that the world should be orangeWhat instead, if the world goes blue?

Frugality as a way of life; being old fashioned is good

Will India be a major market for innovation?

Made in

India

Made for the

world

The rise and rise of the Indian middle class

+ Demographic dividend


Made for

India

Change from being followers to being leaders

Strategy

Product/Service Innovation

Value proposition

Is it innovation or just hype?

Tried and tested methods

Re-focus

Diversify + New Markets

Core + Home Market

Unblock critical resources

Key

Drivers

Being old fashioned is good


Capabilities

Component level

Architectural level

Growth Markets

Growth – developed countries

India-China: growth markets

The burgeoning middle class

Target emerging needs Think Systems and Solutions

Ipma pcamp april10th2011.10113754

Business

Transcript of Ipma pcamp april10th2011.10113754