In search of innovationDr Lorraine Warren, School of Management, University of SouthamptonRyerson University, January 2012

University…..• www.soton.ac.uk• www.soton.ac.uk/csi• One of the top 15 research-led universities in the UK• Great record of entrepreneurial activity, knowledge exchange,

spin-out• 20,0 00 students

Classical picture (Stage Gate, Cooper)

In control! Planned!

Disruptive Innovation (Christensen)

Death… Kodak

New products (Entrepreneurship?)

Fortune and Glory?

Death…

Death…Avoiding death…

Industry Map SWOT

5 Forces Value Chain

Strategic Assessments

Technology - Product - Market Linkages

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The most basic building block of a Business Concept

Technology Road-Mapping• Vision• Market / Strategy• Technology• Products

© 280 Group

Product Roadmap: A Software Product Example

Putting the components together: ensure that the core

technology is commercially viable

identify required complementary resources

make partnering, leveraging, and acquisition decisions regarding essential assets

networking and placement of opportunity with partners & investors

CORETechnology

Business Plan

Legal Services

AccountingServices

Mgt Team

Outsourcing

IPMgt

MarketingResearch

FacilitiesMgt

Building the Emerging Case

Creating the Business Prop

In control! Planned!

MUPPITS• muppits

MUPPITS timeline

Trajectory of Digital Media Business

Software Development Trajectory

Collaborative Service R&D in non-media business

Digital Technology Development

Business Outside Media

Business Outside mediaFunding Agency

Key issues

• Anticipation of value• Value creation• Value capture• Behavioural change

FlightDirectors• alternativeairlines

Key issues

• Anticipation of value• Value creation• Value capture• Behavioural change

Sensory Threads• http://proboscis.org.uk/category/films/

Key issues

• Anticipation of value• Value creation• Value capture• Behavioural change

Mo-cap

The tools….

Hello world

Multicultural….

One for the business school magazine?

http://www.alternativeairlines.com/

Key issues

• Anticipation of value• Value creation• Value capture• Behavioural change

A science of complexity, emergence and anticipation

Systems in a complex dynamic (unpredictable) economy

Stability and Variation

Flows, emergence and temporary structures

(small worlds -> disruptive innovation)

From To

Situation analysis Experiments and models

Sustainability as engineering

resilience

Sustainability as evolutionary

agility

Value-creating ecologies

• Consumers to co creators of value• Value chains to value networks• Product value to network value• Simple co-operation or competition to complex co-

opetition• Individual firm strategy to strategy in relation to

value ecologies• Hearn, G. and C. Pace, Value-creating ecologies: understanding next generation business

systems. foresight, 2006. 8(1).• Hearn, G., Roodhouse, S. and Blakey, J. (2007), From value chain to value creating ecology,

International Journal of Cultural Policy, 13, 4, pp. 419-436.

Entrepreneurial processes in creating and protecting value

• Experimenting• New structural practices

• Reflexive Identity• What do we take as value in our interactions with others?

• Organising• What should be our everyday practices?

• Sensitivity to Conditions• Anticipation of threats…knowledge… reaction… propensity to

survive…

Individual (Level A)

Intention, agency, personality, cognitive process

Interaction (Level B)

Discourse patterns, symbolic interaction, collaboration, negotiation

Ephemeral Emergents (Level C)

Topic, context, interactional frame, participation structure; relative role and status

Stable Emergents (Level D)

Group sub-cultures, group slang and catchphrases, conversational routines, shared social practices, collective memory)

Social Structure (Level E)

Written texts (procedures, laws, regulations); material systems and infrastructures (architecture, urban design, communication and transport networks)

The Emergence Paradigm (Sawyer 2005, p211), showing the ‘circle of emergence’ (p220), i.e. that area which is subject to social emergence

Emergence

• Entrepreneurial relational processes • Emergents with

causal properties

Anticipation of valueduring innovation

Fuller, T. and Warren, L (2008) Sustaining entrepreneurial business; a complexity perspective on processes that produce emergent practice, International Entrepreneurship and Management Journal, Vol 4/1, pp1-17 Fuller, T. and Warren, L., Thelwall, S., Alamdar, F. and D. Rae (2010), Rethinking Business Models As Value Creating Systems, Leonardo Transactions , VOLUME 43, ISSUE 1, 2010Warren, L. and Fuller, T. (2010), Capturing The Dynamics Of Co-Production And Collaboration In The Digital Economy, Leonardo Transactions , VOLUME 43, ISSUE 2, 2010Warren, L. and Fuller, T., (2009) Contrasting approaches to preparedness: A reflection on two case studies International Journal of Enterprise Information Systems 5/3, 60-71

Emergents as value models:• not ‘real’ artefacts such as products and services• temporal visions of alternate futures consisting of interlinked, multilevel

constructs that resonate between:

• Present and future products and services• Present and future technologies (perhaps supported by tangibles such as proof of

concept, prototype, IP)• Present and future markets or organising domains (perhaps supported by market

research or constructions of future industry sectors)• Present and future dominant logics (extant and potential business practices, relations

with stakeholders, consumer/societal behaviours)• Present and future business models, relating the creation and capture of value: (e.g.

economic, technological, social, cultural, artistic, environmental)• Present and future identities, expertises

• Emergents embrace a discursive understanding of some, or all the above elements, an entity to support the exchange of value in all its forms.

Stabilisation of value model

Processes of value creation (EROS processes)

Processes of stabilisation:Tangibles (IP, contracts, proof of concept, prototype, business plan, incubator)Intangibles (reputation, track record, identity, expertise)

Processes of value capture:Attraction of resource, causality

Value Model Products,

Services….

Fortune and Glory?

Key issues

• Anticipation of value• Value creation• Value capture• Behavioural change