Improving the process of Innovation :
Lessons from Entrepreneurs
Rajiv Tandon, Ph.D.
[email protected](952)-212-2410
Life Makes Sense Only in Hindsight: Connecting the Dots
Year Organization Enduring Impact
1966‐1969 Engineering, India Engineer:Make Something from Nothing
1971‐1986 Corporate, USA Business:Action: Start, Make, Build
1987‐2001 University Academia: Reflection: From Doing it to Preparing Entrepreneurs
1971‐1992Control Data Corp.University of Illinois Education Theory:
Androgogy
1995‐2001 LearningByteLearning Technology: Lower Cost,Higher Quality
2001‐2014 AdayanaDomain: Leading Edge Technology but in the BackgroundThought Leadership
2014‐ ParijaathFacilitator, Incubator, Accelerator:
Why a session on Innovation today?Often wrong but seldom in doubt
• U.S. businesses are aging– Optimized for efficiency and quality and not for innovation– Innovation is treated as a secretive process: hence erratic
• Disruptive innovations come from entrepreneurs– Search for ideas from anywhere– Process is open, understood and replicated
• Entrepreneurs: Likely to be from emerging world– Start‐ups in US dropped from 15% in 1978 to 8% in 2011– Energy needs are soaring – New methods more immediate and intense
• Designed: Innovative Curricula – Plea: Couple it with innovative method(s) of delivery – For broad base of seekers
InnovationNeed and Reality
• Buzzword • Lots of spending • Marginal yields, at best, under Hyperchange
– Comfort : go down rather than change– Problem itself changes: prior solutions worthless – Preferences of leaders: ascended by prior rules‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Q 1: Any lessons from innovators (entrepreneurs)?Q 2: Consistent process for innovation effort?Q 3: Can these lessons be learned?
Responses to Change
Ignore (Frog)Cope (Masses)Revert to status‐quo (Manager)Find new methods (Leader)Exploit disruption (Entrepreneur)
• Seat of the Intellect
to
• Seat of the Pants
Process of Success Creation
STEP PROBABILITY 1. Person with an idea 1 %2. Opportunity 5 %
Hurdle 1: Attract Talent3. Founding Team 10 %4. Venture Plans 15 %
Hurdle 2: Fatal Flaws?5. Funding 25 %
Hurdle 3: Initial Sales6. Beginning Sales 40 %7. Sales Growth 60 %
Hurdle 4: Transition8. Initial Success
Theoretical Construct Entrepreneur: The Driver
I.OPPORTUNITY
III.PLANS& STRATEGY
IV.RESOURCES
II.INDIVIDUAL& TEAM
E
M
© Tandon, 1994
The Qualitative Difference
• Traditional Management:– I’ll believe it when I see it.
• Entrepreneurial Management:– I’ll see it when I believe it.
Insights on Success CreationLaunching a boat to cross the river
• Success : – Doing a little bit better in a number of things
• Failure :– Doing any one of a number of things poorly
• Process of Success Creation : – One by one reduction of areas of risk
Entrepreneurs:Improving the Rate of Success
• Improved: 1. Ideation 2. Selection of Key Ideas3. Developing the Minimum Viable Product4. Market Test5. Pivot6. Grow
Growth Model: Evolution/ Revolution
Definitions
• Idea*– A thought; mental conception; mental image– A form, the look or appearance of things as opposed
to its reality – A plan; scheme; intention; aim
• Implement*– To carry into effect; to fulfill; accomplish
• Innovation* – Act of affecting change in the established order– Introduction of something newInnovation: An idea that is implemented
• Disposition– Inclination– Natural Fitness– Frame of mind
Innovation Process
4. Improvement
Resource Acquisition
Crafting
Business Plan
Opportunity Enhancement
Visualization
2. “Key” Ideas
1. Ideation Tandon, 1994
Pre-Disposition
1. Initiation
2. Transition Planning
3. Growth Planning4. Strategic Planning
5. Venturing 6. Turnaround Planning
BREAKPOINT
7. Portfolio Planning
Tandon, 1994
Same Approach of Innovation ProcessUnder Changing Contexts
(Actionable) Innovation
Innovation = Idea x Implementation
• Not a “Eureka” (chance) thing• Proven process for all four links
1. Ideation: Quality and Quantity of Ideas2. Key Ideas: Selecting the right projects 3. Pilot: Disciplined introduction of new initiatives 4. Improvement: Assimilation/ Commercialization
• Variety of methods and tools for efficiency
Improved Ideation:Key to Innovation
• Based on Whole Brain Model– Logical Methods– Intuitive Methods– Hybrid Methods
• Each one prefers a few methods• Add more tools to your tool box
Logical Methods
• Left Brained, Analytical, Rational, Convergent
• Derivatives of the Scientific Method– Recognize a need– Define the problem– Develop a solution– Develop a method to test viability of solution
– Apply methodology– Compare results with expected results– Summarize findings
Logical Approach to Problem Solving
Mission
Situation Analysis
Strategic Issues
Objectives/Goals
StrategiesProgram and Support Plan
Priorities
Implementation
Control
Improvement
Business Plan
Visualization“Key” Ideas4-A Ideation
Resource Acquisition
Opportunity Enhancement
Crafting
Intuitive Methods
• Right Brained, Integrating, Holistic, Divergent
• Derivatives of the Creative Process– Problem Description– Incubation– Illumination– Verification
Hybrid Methods
• Hybrid, Accordion, Combination• Developing the other method (Logical, Intuitive) gives us more permutations/combinations
Risk Alignment
Stretch Targeted Innovation Clarity of Reason for Innovation Pro-active Search
Low Hanging Fruit Condition Organization Good Ideas for existing SBU’s
Forget It High Risk Unless:
– Required Practice– Minimum Threshold
Minimum Attention Reacting to ThreatAvoid Unless:
– A Must Do– To Protect Base
<<< New MARKETS/PRACTICES Old >>><<
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DIS
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SITI
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Ideation Recap:Two Step Process
1. Start with lots of ideas 2. Select “Key Ideas”
• Remove duplicates, Assign “Low hanging fruit”• Screen
• Is it an opportunity for i) us ii) today?• Product, Market• Cetris Paribus‐ all other things equal• Devil’s advocate: counter arguments• No “Fatal” flaws
• Propel or kill projects on risk alignment• Strategy• Pre‐disposition• Values• Energy
Implementation
B. Opportunity Identification 3. Visualization4. Opportunity Enhancement5. Business Plan
C. Implementation6. Crafting 7. Resource Acquisition
Leadership
Ideation Implementation
Innovation
Disposition
Process of Commercialization
ConclusionThe Original Question
• We have an Innovative Curricula – Can (Should) we couple it with innovative method(s) of delivery
• For broad base of seekers• To get the most societal impact ?
Discussion
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