digital multimedia report, kanopy
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Management of Innovation 301
Digital Multimedia Report
Semester 1, 2013
Name: Shawn, Mah Shi Yoong
ID: 7E1B8922/ 15802806
Tutor: Mr. Adriel Sim
Total file word count 4551Less direct quotes 225Less table of content 228Less reference list 873Less headings 130Total net word count 2963
Table of Contents1.0 Executive Summary............................................................................................................3
2.0 Company Profile and Background.....................................................................................3
3.0 Establishing an environment for innovation.......................................................................4
3.1 Intellectual Property Protection (IPP).............................................................................4
3.1.1 Patent.......................................................................................................................4
3.1.2 Copyright.................................................................................................................5
3.1.3 Trademark................................................................................................................5
3.2 Managing organizational knowledge and innovation strategies......................................5
3.2.1 Importance of managing organizational knowledge.................................................5
3.2.2 Core Competencies..................................................................................................6
3.2.3 Organisational knowledge and knowledge base creation.........................................6
3.2.4 Absorptive Capacity.................................................................................................7
3.3 Collaboration strategies..................................................................................................7
3.3.1 Licensing.................................................................................................................7
3.3.2 Outsourcing..............................................................................................................7
3.3.3 Collaboration (non-joint ventures)...........................................................................7
3.4 Scope for collaborative strategy......................................................................................8
4.0 Implementing Innovation....................................................................................................8
4.1 Managing innovation and operations management.........................................................8
4.1.1 Pearson’s Uncertainty map......................................................................................8
4.1.2 Organizational characteristics that facilitate innovation...........................................9
4.2 New product development (NPD)...................................................................................9
4.2.1 Ansoff’s Matrix........................................................................................................9
4.2.2 Network model of NPD.........................................................................................10
4.2.3 Generation business opportunities.........................................................................10
4.2.4 Screening of business opportunities.......................................................................10
5.0) Question From the CEO..................................................................................................11
5.1) Pathways for preserving Kanopy’s competitive advantages........................................11
5.2) Challenges in Global Market.......................................................................................11
6.0) Conclusion and Recommendation...................................................................................12
7.0) Reference Lists................................................................................................................13
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8.0) Appendix.........................................................................................................................18
Appendix 1: Olivia’s Timeline..............................................................................................18
Appendix 2: Kanopy Logo...................................................................................................18
Appendix 3: Core competencies, imitability and profits model..........................................19
Appendix 4: Alliance purposes............................................................................................19
Appendix 5: Benefits and Risks of Outsourcing...................................................................20
Appendix 6: Pearson uncertainty map................................................................................21
Appendix 7: Ansoff’s Map...................................................................................................21
Appendix 8: Network model of NDP...................................................................................22
Appendix 9: The Hidden Markov Model.............................................................................23
Appendix 10: Managerial IPP strategies.............................................................................23
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1.0 Executive SummaryThis report highlights and analyzes how the founder of Kanopy Streaming
Service, Olivia develops, manages and implements Kanopy’s innovation, the online streaming service.
Olivia adopts copyright and trademark intellectual property protection (IPP) strategies to protect Kanopy’s innovation. One interesting thing is that Olivia still remains uncertainty although Kanopy has the choices to patent their innovation. A recommendation will be given to justify the proper timing and criteria to patent their innovation.
The resourced-based perspective of Kanopy’s business is important for creating Kanopy competitive advantages. Besides, Kanopy applied strategic alliances to create strong external linkages in order to take advantages of additional knowledge, resources and opportunity for new market entries. A recommendation of strategy go beyond collaboration will be discussed.
Next section shows the intention of Kanopy to enter new markets and what characteristics are important for developing innovation. A recommendation for Kanopy to enter different market segment is mentioned.
Last, the combination of qualitative and quantitative screening approach is suggest as a metric to screen out ‘bad idea’ but keep the ‘good idea.’
2.0 Company Profile and BackgroundKanopy Streaming Service is founded by Olivia Humphrey in 2007 which
specializes in building each university delivery platform where all Kanopy’s online videos are available (Hogan 2012; Women in Focus 2013).
During the time Olivia worked in media industry, she spotted a gap of the streaming technology was not being fully utilized in educational sector and she identified that streaming technology has potential to characterize universities libraries in the future (Fulwood 2013). Consequently, Olivia came out the idea of providing streaming service to education sector and she decided to resign her job to start her business plan.
In 2007, Olivia founded Kanopy and she first started to distribute DVDs to university library to raise Kanopy development fund (Fulwood 2013). In 2010, Kanopy streaming service started formally.
Kapony is a business with small organizational structure and only 12 employees. The head quarter of Kanopy is premised in Subiaco, Perth. The coverage of Kanopy todays does not merely focus on Australia universities, but also cover
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Asia-Pacific and North America area. A subordinate office was set in San Francisco on June, 2013 and the Asia-Pacific region was served by the head quarter office in Perth (Women in Focus 2013; Hogan 2012).
Todays, Kapony offers approximate 15,000 videos to millions of students in two of thirds universities in Australia and the number of customers in US more than the sum of the rest of the world (Hogan 2012; Crisp 2011; Fulwood 2013). Hence, Kanopy is leading the streaming video supplying service in Australia and people call it “the Youtube of education sector.” (Women in Focus 2013).
3.0 Establishing an environment for innovation
3.1 Intellectual Property Protection (IPP)IPP strategy has the main function of protecting the rights, capitalization,
commercialization and marketization of any technology and innovation from pirated, used and copied by third parties through legal enforcement. (Chen and Wang 2010, 187). Click here for tips of IPP.
3.1.1 Patent Patent protect the categories of machines, composition of matter,
process and manufacturing information (Intellectual Property Office). Olivia only revealed that Kanopy has the choices to patent their exclusive apps but she did not state clearly whether Kanopy has actually patented it. In Kanopy’s growing stage, if Olivia does not choose to patent her innovation, she probably on the right track.
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Click here to see my timeline
Once Kanopy’s app is patented, the codes that Kanopy designs to protect the apps have to be disclosure publicly and there will be a risk that their coding technology can easily accessed by competitors (Trotts 164; Frank 2003, 64). Besides, patent obtainment is costly and time consuming. The high expense includes the cost to apply and gain a patent and the potential cost in the lawsuit of infringement (Samuelson 2010). Click here for disadvantages of patent.
However, a patent strategy is suggested to be implemented when Kanopy becomes a large enterprise as large firms patents have higher chance to be granted while patents of small and medium-sized enterprises are withdrawn and rejected frequently (Frietsch et al. 2011).
3.1.2 CopyrightCopyright can protect the original innovation of authorship attached
with tangible form of expression which can be observed, reproduced and communicated (Carpenter 2013, 11). Some of the tangible characteristic can only be expressed in machine or device (Carpenter 2013, 11). The Copyright Act prevented the owner’s work from reproduced, distributed, displayed by others (Carpenter 2013, 11).
Copyright is one of the IIP strategies used by Kanopy. All of the videos and the contents of Kanopy platform are safeguard under the copyright protection in both Australia and others countries (Kanopy). Copyright is essential in Olivia’s business as it does not only protect Kanopy’s content but also protect the videos of Kanopy licensors.
3.1.3 TrademarkTrademark is associated with those distinctive name, symbol, mark or
motto which is displayed graphically for the purposes of identifying the authentic and quality of the product and services (232; Marinkovic 2012, 29).
Olivia trademarks the Kanopy logo in order to avoid the wanton use of their company’s goodwill, reputation and image (Kanopy). Since Olivia intends to penetrate into US market, Kanopy trademark should be applied originally as Kanopy brand represents quality and innovative, US customers would willing to pay for their quality guarantee streaming services.
3.2 Managing organizational knowledge and innovation strategies
3.2.1 Importance of managing organizational knowledgeOrganisational knowledge is defined as the knowledge shared
individually in the organizational level that facilitates the effectiveness and efficiency of the corporate routines and processes (Yang 2009, 1725). The management of organizational knowledge comprises of developing knowledge
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or knowledge based strategy as well as leveraging them to the whole organization in order to ensure decision makers make the right decision (Alhashmi 2006, 43).
3.2.2 Core CompetenciesCore competencies are those attributes or features of a business’
product or service which are valuable, rare and hardly to be imitated or substituted, thus providing value to the customer as well as creating competitive advantages (Boguslauskas and Kvedaraviciene 2009, 77). The core competencies of Kanopy is the cloud based operational system. Click here to see the power of cloud based operational system.
Referring to the core competencies, imitability and profits model which determine whether a business has the ability to generate long term profile based on its core competencies and the imitability of the core competency (Trott 2012). The profitability of Kanopy falls in the column of ‘short-term profits’.
The degree of coreness of Kanopy cloud based operational system is high as the platform act as the medium to provide the licensed streaming video from filmmakers to universities. Kanopy relies on that system to scale up and access any information and data (Women in Focus 2013; Hurwitz).
The imitability of cloud based operational system is high because its simplicity and popularity (Betonio 2011; Wetzlaff et al. 2009). Besides, the cyber-attack or hacking of computing cloud system is very common (Ruquet 2011). Consequently, Kanopy’s unique codes, applications, contents or any business secrets will become imitable (Ruquet 2011).
3.2.3 Organisational knowledge and knowledge base creationKanopy’s knowledge based is created in resource-based perspective
which comprises of both tangible and intangible resources, including knowledge, skills, experiences, cloud based operational system and so forth (Liu and Ko 2011, 253).
Olivia lacks of knowledge in the aspects of IT, legal, finance and accounting and library system and process. Undoubtedly, the knowledge leveraged by Olivia’s team member is crucial to complement the incompleteness of the organization.
For this reason, Olivia insists to have meetings frequently to ensure every staffs contribute ideas or knowledge to the business. Apart from that, Olivia does outsource some part of Kanopy operations which are lack of supportive knowledge. As a result, the collaborative of knowledge which derived from different parties creates competitive advantages to Kanopy (Alhashmi 2006, 44).
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3.2.4 Absorptive Capacity Absorptive capacity is defined as the ability to obtain and discover new
knowledge as well as assimilating and transforming it for commercial use (Wales et al. 2012, 622). Absorptive capacity is built and determined based on the past knowledge or experiences (Trott 2012).
Olivia is has prior knowledge and experience about media right management and marketing when she worked in BBC and Roadshow Entertainment. This gives her an insight regarding the potential of streaming technology in education sector and leads her to have the idea of licensing the online videos to libraries. Besides, Olivia’s experience in media right management provides her an accurate judgment in Kanopy’s intellectual properties protection.
3.3 Collaboration strategiesStrategic alliance is defined as the agreement between companies to
collaborate with each other for the purpose of achieving a set of consensus goals as well as sustaining competitive advantages (Masrurul 2012, 23). Click here to see the alliances purpose.
3.3.1 Licensing Licensing is extremely important as this business model is attractive to
supplier and highly welcomed by university libraries. Kanopy is granted by different filmmakers to supply videos to their platform and Kanopy provides their streaming platform to university libraries (Trott 2012, 239). Licensing enables Kanopy to get access or acquiring the technology or resources they are lacking of. Licensing provide benefit of saving costs to purchase or product a video (Kauser and Shaw 2004, 12).
3.3.2 OutsourcingOlivia does outsource to complement the expertise of IT and library
system and process which Kanopy lacks of. Olivia should avoid outsource core process of Kanopy as it provides company competitive advantages and determines corporate survive (Boguslauskas and Kvedaraviciene 2009, 80). With outsourcing, Kanopy can operate efficiently and effectively by focusing more on their core process and reducing the costs by accessing to external resources (Salanta et al. 2011, 271). Click here to see the benefits and risks of outsourcing.
3.3.3 Collaboration (non-joint ventures)Collaboration (non-joint ventures) exists between Kanopy and Media
Education Foundation (Trott 2012, 241). Media Education Foundation has a persuasive brand may help Kanopy to approach with universities in US. Kanopy provides fully transparent streaming platform to Media Education Foundation which they do not have. Once there is university requires this
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service, Media Education Foundation will give the contract to Kanopy and gaining part of the revenue in this case.
However, there is a risk of collaborate with large institution like Media Education Foundation which may recognize the streaming platform has great potential in education sectors probably and imitate it eventually(Alvarez and Barney 2001, 140).
3.4 Scope for collaborative strategyFor suggestion, Olivia can consider to go beyond collaboration by cooperate
with social networking. According to Moreno (2012), social networks have potential to be the next educations platform as vast of educational resources can be accessed on social networks which enable unlimited teaching and learning.
Social networks have billions of users and the frequency of most people to login in social networks is extremely high. It can be a ‘shortcut’ to gain market share worldwide if the collaboration is form properly.
Most of the people nowadays are familiar with how to use social networks and it provides a platform to communicate and share information which usually lacks of within universities learning platform. Hence, Kanopy applications created in social network can correspond perfectly to the skills and habits of potential users especially students (Banyte and Salickaite 2008, 51).
4.0 Implementing Innovation
4.1 Managing innovation and operations management
4.1.1 Pearson’s Uncertainty mapPearson’s uncertainty map provides an insight for a firm to identify
and analyze uncertainty and the innovation process in dimensions of uncertainty about output and uncertainty about process (Trott 2012, 88). Click here for Pearson’s uncertainty map.
Kanopy’s innovation falls in quadrant 4, integration of market opportunities with technical capabilities where the uncertainties about output and the process are lowest. Olivia has decided Kanopy business as long-tail model which focuses on providing video with non-cinematic contents to target the niche market (Einspruch 2013). Moreover, Kanopy has intended to emphasize on education sectors constantly, the vision of changing the way students learning is set clearly.
Olivia has great understanding in term of how the innovation works and how to drive their innovation to achieve their vision (Trott 2012, 88). She
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has fully engaged with the innovation process since Kanopy is established which includes the Kanopy platform design, cloud based operational system and so forth.
Since Kanopy’s innovation falls in quadrant 4, the priority is to utilize their current technologies and skills to improve their platform contents with quick speed (Pearson and Hauschildt 1992, 48). Hence, Kanopy needs a team with high level of experiences and commitment to successful completion of the innovation (Pearson and Hauschildt 1992, 48).
4.1.2 Organizational characteristics that facilitate innovationKanopy is a growth-oriented business which is seeking for long term
plan by expanding their business from Australia to others markets such as North America and Asia-Pacific. Their innovation, Kanopy platform provides them a competitive advantage to achieve growth (Trott 2012, 93).
Since Kanopy is still operating in small scale, it is common that not all the technologies and capabilities are developed internally (Trott 2012, 93). However, Kanopy has high level of receptivity which adopts strategic alliances to obtain, exchange and take effective advantages of other firms’s technologies and capabilities (Trott 2012, 93; Veilleux et al. 2012; 24).
Apart from that, good communication plays an important role within Kanopy which facilitates the decision making, coordinates different opinions, increases employees’ participation, eliminates the uncertainty and encourages information and knowledge sharing (Trott 2012, 94; Maria 2009, 591). Thus Kanopy’s brainstorms meetings are essential as it provides opportunities for organizational communication.
4.2 New product development (NPD)
4.2.1 Ansoff’s MatrixNPD is merely one of the strategies that may assist a firm in achieving
growth. There are another 3 strategies suggested in Ansoff’s matrix namely: market penetration, market development and diversification (Trott 2012, 422). Ansoff matrix is a framework that provides alternative strategies to a business for achieving growth through measuring existing products or services as well as existing markets and new markets (Richardson and Evans 2007).
Currently, the priority of Kanopy is to exploit their new market in North America with existing innovation, thereby a market development strategy will be appropriate (Trott 2012, 423). Since Kanopy plans to operate oversea, it is important for Olivia to conduct formal risks assessment to analyze the uncertainties such as the culture differences, political uncertainty, differences IT regulations, facilitate fees (bribery or gratuity) needed and so forth (Boet 2008).
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Besides, Olivia is suggested to consider different segments in Australia market. The primary and middle school portfolios may be a sustainable and potential new market segment. The utilization of technologies and software is a must in today modern educational systems (Moraru et al. 2010, 578). Thus, the exploitation of this segment may help Kanopy to achieve growth.
4.2.2 Network model of NPDNetwork model interprets NPD as a process constructed by
accumulation of knowledge from various inputs in terms of marketing, finance, manufacturing and research and development (Trott 2012, 442). Referring to Olivia, Kanopy still lacks of several capabilities and resources which make them difficult to compete with larger firms especially when Kanopy is intent to enter US market.
Nevertheless, Kanopy shows proper network model utilization in order to facilitate product development and build strong linkages with externalities which coordinates with internal activities (Trott 2012, 442). Strategic alliances can assist Kanopy to access additional knowledge and capabilities, thereby contributing to product development process eventually (Trott 2012, 442).
4.2.3 Generation business opportunitiesGeneration of business opportunities in new product development is a
process of referring and scanning various sources in order to identify any business opportunity that has potential to help business in developing new products (Trott 2012, 561).
Customers’ feedback is a good resource for Kanopy to identify possible products ideas (Trott 2012, 562). Kanopy usually collects feedback from librarian, academics and students circles in order to seek for improvement for their online contents. By doing so, Kanopy will have better ideas regarding what kind of videos they should provide more for patron driven demand.
Kanopy weekly meeting and brainstorming section can be another resource for generating new product idea as all the staffs sit together to share imagination, creativity and knowledge liberally (Trott 2012, 563).
4.2.4 Screening of business opportunitiesScreening of ideas is a process filtering ‘bad ideas’ and preserving
‘good idea’ to ensure appropriate product attributes and customer benefits are delivered properly (Floren and Frishammar 2012, 27). Proper standard measurements are necessary for generalizing ideas or concepts to ensure it can satisfy market needs, has high level of feasibility, provides value to the organization and aligns with business strategy (Floren and Frishammar 2012, 27).
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For suggestion, a combination of qualitative and quantitative approaches is appropriate to screening process. For quantitative approach, the hidden Markov model (HMM) is effective in facilitating the idea screening decision by sorting the new product ideas and anticipating the feasibility of the ideas through the systematic evaluation (Chan and Ip, 2010, 976).
Olivia is encouraged to go for both screening and testing in technical and customer based. Technical screening and testing allows the ideas or concepts being evaluated and analyzed by technical experts; while customer screening and testing emphasizes on receiving the feedback and complaints of customers on the developed prototypes (Trott 2012, 566).
5.0) Question From the CEO
5.1) Pathways for preserving Kanopy’s competitive advantagesIn order to seek for better safeguard for intellectual property (IP), there are
three types of strategies in managerial aspects that Kanopy is advised to adopt as it is better for a firm to prepare for the worst sometime rather than depend on legislation.
First, Kanopy may control complementary knowledge by properly reaching agreement with staffs, filmmakers, universities library and customers to ensure their IP will not be published and copied. Second, Kanopy should locate the development of technology in strong IP rights countries which has a large distance between those weak IP rights countries (Aggarwal 2010, 549). Apart from that, Kanopy should take fully control of the internal resources which are important for IP development and protect it by unique organizational knowledge or cross-border approach (Aggarwal 2010, 549).
Apart from IP strategies, the dynamic competence-based business model is another pathway that is able to guarantee Kanopy’s trajectory. Dynamic competence-based model can assists Kanopy in detecting the changes in external environment and initiates the changes of organizational internal environment to respond these changing through develop specific competencies (Trott 2012, 199). Consequently, this requires Kanopy to develop high level of flexibility and less bureaucratic and systematic business policy (Trott 2012, 200).
5.2) Challenges in Global MarketWhen Kanopy scales up globally, it is essential to conduct risk assessment and
opportunities identification as small-medium enterprises like Kanopy will find out the competitions in global market is extremely rigorous (Zarei et al, 2011, 299). Consequently, Kanopy will faces the challenges of lacking managerial, marketing
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knowledge and experience for reaching global market as current business strategy will not be accommodated in global market (Zarei et al. 2011, 300).
Besides, Kanopy will need to assess the new market in order to discover the available customer based and market preferences for tailoring their streaming service to meet customer need (Hynes 2010, 99). Tailoring and modifying their service to suit global market can be a challenge as the modification should take account of the cultural, legal, political, economic, social and technological environment.
6.0) Conclusion and RecommendationIn conclusion, Kanopy’s streaming service is a highly innovative service with
good business concept which has the potential to initiate a revolution in educational sectors. It is crucial to have proper IPP strategies to protect this innovation. Merely depends on Copyright and Trademark is far not enough to protect the innovation, thereby managerial IPP strategies are recommended as they are more effective and efficient indeed.
Besides, Kanopy has a proper management of organizational knowledge as it encourages the sharing of knowledge internally and also has strong external linkages (strategic alliances and external inputs) to strategically take advantages of external knowledge for establishing their competitive advantages. By engaging with this approach, Kanopy is able to learn while operating and knowledge will be accumulated eventually.
Hence, it is possible for Kanopy to develop new products or core competencies as well as cope with the challenge of inadequate knowledge when it scales up globally.
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8.0) AppendixAppendix 1: Olivia’s Timeline
Appendix 2: Kanopy Logo
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low
high
Non-core core
Appendix 3: Core competencies, imitability and profits model
Negligible
profits
Long-term
profits
No profits Short-term
profits
Resource: Trott, 2012
Appendix 4: Alliance purposes
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Imita
bilit
y
Appendix 5: Benefits and Risks of Outsourcing
Resource: Salanta et al. 2011
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Appendix 6: Pearson uncertainty map
Resource: Trott 2012
Appendix 7: Ansoff’s Map
Resource: Trott 2012
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Appendix 8: Network model of NDP
Resource: Trott 2012
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Appendix 9: The Hidden Markov Model
Resource: Chan and Ip, 2010
Appendix 10: Managerial IPP strategies
Resource: Aggarwal 2010
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