Driving Business Success through the Power of the

Network Presentation to UKSPA Conference

- September 17th 2009

Contents

• Research on the importance of networks• Role of networks in 3rd generation science

parks• Network philosophy and culture • Practical steps for a Science Park to

develop their network • Business impacts• Summary

Research on networks

• “The traditional independence of small firms is being replaced by a network environment. …. Having a strategic approach to networking will become increasingly important ….. and needs to be recognised as a core business competency in its own right.”

Small firm networks: a successful approach to innovation? V.Hanna & K.Walsh (2002)

• “Cluster development is often particularly vibrant at the intersection of clusters, where insights, skills, and technologies from various fields merge, sparking innovation and new businesses.”

Clusters and the new economic of competition: M.Porter (1998)

Networks in 3rd generation science parks

• “Connectivity and networking at all levels is essential to the 3rd generation science park and its tenants.”

• Requires a management team who have:“considerable understanding of what its tenants are about, and directs appropriate skills, advice and networking opportunities to the tenant.”

• Strategic not tactical • Essential not a “nice to have”• Core to the philosophy and culture

of the science park

Network philosophy and culture

• Engage strategically– Know your companies intimately

• Highest quality of expertise, most accurate targeting– Generic solutions sacrifice value, ultimately it’s not enough

• The collective expertise will accelerate business growth– Saves time & money– Derisks

• Embed the culture in your organisation – Behavioural – how you think, talk and act

• … And your tenants– Maximise value, enable scaleability

Practical steps to develop the network

• Strategic engagement with the Tenant’s management team– Understand their business, strategy &

constraints– Ensure your network meets their

needs • if not find it!

– Develops knowledge for the Science Park

• that’s your currency!

• Development of the “market place”– Create & monitor your network to

match the needs– Have a focal point to bring the network

together– Include all parts of the supply chain

• BUT target areas that need strengthening

– Accept some chaos in this process

SMEs Corporates

Business Support Universities

Consultants Suppliers

Practical steps to develop the network

• Strategic partnerships with other intermediaries– Business Link, UKTI, Universities, RDAs,

Clusters, NHS Innovation hub etc – Look to create “win-win” scenarios– Find like-minded “go to” people

• BUT underpin at the top– Embed them into your organisation

• Be physical– Drive value through events– Be comfortable with a lack of structure– Make your interventions bite size &

relevant– Engage seasoned networkers

Practical steps to develop the network

• Develop and drive a collaborative culture– Recognise its need

• SMEs - great depth but little breadth– Don’t be afraid of competitive conflicts– Make introductions – you never know where

it will lead– Engage with like-minded entrepreneurs

• Complement the physical with the virtual– Physical networks have limitations– Use technology to create new ways to

strengthen the network

– Newshub (www.newshub.daresburysic.co.uk)• Web 2.0 facility

– blog, profiles, requirements, web portal• Currently ~25% of network registered

Practical steps to develop the network

• Develop strategic relationship with Blue chips/ Government organisations– Crucial part of the network

• Customers, collaborators or acquirers

– Major problem engaging with the SME sector• Disparate & difficult to penetrate for relevance• Opportunity to be a node of intelligence

– Targeted strategic engagement• Target those of greatest relevance

– Understand their STRATEGIC requirements• Be persistent, build the relationship• Focus on early, easy wins

– This will deliver significant value to your tenants• Crucial to their success• Huge challenge to get air time with blue chips

“We will acquire 50% of our technologies & products from outside P&G.”A.G. Lafley, CEO Procter and Gamble

“Companies and countries that really play offence vis-à-vis technology and

innovation are going to come out ahead” Jeffrey Imelt CEO, GE

• Tenants Survey – end 2008– Minimised business failure

• 6 failures in 4 years – Accelerated business growth

• 67%/yr sales growth • 55%/yr investment growth

– Greater collaboration• 73% company-company

– Buyer-seller to new businesses• 71% with Research Institute/University

– Super-networkers• Deliver higher than average growth

0

5

10

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20

25

Sales Investment

2007

2008

0

50

100

150

200

Campus

companies

Super-

networkers

2007

2008

% Sales growth

£m

Business Impacts

Business Impacts

• Part of Daresbury SIC metric process to ensure on-going improvement

Summary

• Network development is essential for 3rd generation science parks

• Need to engage strategically with:– Tenant companies– Other intermediary organisations– Blue chips & government organisations

• Embed a network culture– In your organisation and your tenant companies

• Be physical but don’t forget the virtual• Measure your impact