Management and Commercialization of Open Technovation: the emerging economies’ dilema by Musa...

30th Anniversary SCIP International Conference & Exhibition

GAME CHANGERS: Exploring Innovative IntelligenceMAY 11 – 14, 2015 | ATLANTA MARRIOTT MARQUIS | ATLANTA, GEORGIA

www.SCIP2015GameChangers.com #SCIP

Musa Khumalo

Business Intelligence Consultant

IQ Business (South Africa)[email protected]

+27 73 058 6071

mailto:[email protected]






Who is the real game changer?

MANAGEMENT AND COMMERCIALIZATIONOF OPEN TECHNOVATION,

THE EMERGING ECONOMIES’ DILEMMA




THE STORY, IN SHORT

• Innovation – Open & Closed

• The death of an idea

• Commercialization

• The “Game changer”




OPEN OVER CLOSED INNOVATION

The Closed Innovation pipeline Source: Chesbrough (2003)




The Open Innovation pipeline Source: Chesbrough (2003)




OPEN INNOVATION SUCCES STORIES

• GE ‘Ecomagination’ Challenge

• Cisco Entrepreneurs in Residence program

• Samsung Accelerator

• Shell GameChanger

• Google for Entrepreneurs program

• Proctor & Gamble Tremor Competitive Intelligence

• Dell IdeaStorm Ideas and Insights

• Kraft First Taste Testing




?

>1.43 million apps

>50 billion applications downloaded (July 2013)

71% of mobile developers develop for it (2013)

>over one billion active monthly users

largest installed base of all general-purpose OS’s




…BUT ALL THIS ISN’T WHY I’M HERE…

INNOVATE. AND THEN WHAT ?




THE COMMERCIAL IMPERATIVE

Innovation – should be new and value creating

- Joseph Schumpeter, 1942




What lies between ideas and outcomes? Source: Dan Maycock




Breaking the product or service into the market

• Nokia – ‘The curious case’

• Kodak – ‘What’s wrong with the picture?’

• Xerox – ‘The faded copy’

• The Great Depression – do we blame Henry Ford or Innovation?




THE INNOVATIVE LEADER: CANDIDATES FOR GAME CHANGERS

• Invest substantially in the management process from beginning to end

• Risk-taking is calculated and delivery is not left to chance • Combined with open innovation streams, more ideas are

considered and less, but better quality, of those ideas are developed

• All stages of the product or service realization process are approached consciously, as part of an innovation strategy

• Innovation strategy itself is part of the bigger corporate business strategy




I had a friend, who was very smart. He got everything right but I barely got much right… today he’s a Microsoft Software Engineer

- Bill Gates




PROPONENTS TO THIS CASE

None of my arguments is new:

“What the customer buys and considers value is never a product. It is always utility – that is, what a product does for him.”

– Peter Drucker, Management: Tasks, Responsibilities, Practices

“People don't want to buy a quarter inch drill. They want a quarter-inch hole!”

– Ted Levitt, Marketing Myopia

• McKinsey

• A.T. Kearney

• Harvard Business Review

• Gartner

• Forrester




WHY EMERGING MARKETS?

• That’s where I come from and I have vested interest

• Research says the global economic engine is now being powered by the southern hemisphere

• Emerging markets were the most resilient in the global economic meltdown

• Therefore, no longer are they just ‘emerging’ markets – these are ‘opportunity’ markets




FORWARD STEPS

• Bridge the IT/Business divide – integration and partnerships among business units

• IT strategy a part of business strategy (a predominant problem in non-IT enterprises)

• The Innovation – Innovation Management –Commercialization continuum.

• Shift of delivery focus from IT-driven to business-driven• Elimination of innovation roadblocks (status quo,

resources, silos, tools)• The 3-tier framework for the innovation dilemma:




(OPEN) INNOVATION

- Idea- Product- Service- Dimensions & degrees

INNOVATION MANAGEMENT

- Leadership- Integration- Engagement- Selection- innovation strategy, implementation - organisational (corporate) structure, culture

COMMERCIALIZATION

- Market(ing)- Sales- Evolution

FDI forcesInnovation policyExternal supplier pressurePressure to catch-upThe “rising market” tag




INNOVATION. SO NEAR, YET SO FAR

• “Failure Age” – The New York Times

• This is not an exhaustive piece - it doesn’t ask all the questions that need to be asked. It begs for relevant answers to the plight of many, perhaps too many, an enterprise.




MY CONCLUSION

1. Why take the lonely path? Open up your Innovation function

2. Managing the development & commerce of an idea is a sterner test than its advent

3. Innovate or die? Nonsense. Sell or die !




BUT WHY DO I CARE?




Qs

• Innovation & commercialization are both valuable, but not of equal weight, what’s more valuable and why ?

• Same resources, very different results: is business acumen perhaps ‘in-built’ ?

• Do you agree that I’ve been talking bulls**t the whole time? If you don’t, why ?

Management and Commercialization of Open Technovation: the emerging economies’ dilema by Musa...

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