entrepreneurship and innovation - iiw.kuleuven.be · 1 entrepreneurship and innovation the “new...
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Entrepreneurship and Innovation The “New Normal” Ecosystems Ambidexterity
Business Coaching Seminar
Kris Vander Velpen
Geel, Jan 9, 2017
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Content
1. Entrepreneurship and Innovation
2. The “New Normal”
3. Ecosystems
4. Ambidexterity
5. Conclusion
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Entrepreneurship and Innovation
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What is entrepreneurship ?
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Entrepreneurship is a nexus of two observable phenomena : An “entreprising individual (the entrepreneur) and an “appealing” opportunity The entrepreneur is any person who sees the opportunity,size up its value and seizes the required resources necessary to make the most of it.
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What is entrepreneurship ? Timmons Model
Leadership
Opportunity Resources
Team
Communication
Business Opportunity Plan
Creativity
Uncertainty
Ambiguity Exogenous forces Fits and gaps
Capital market context
The entrepreneur’s job is to carry the lead by taking charge of the success equation
“Timmons Model of the Entrepreneurial Process”
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Ongoing Operations Innovation
Committing to
an innovative concept
Organizing
Planning
Execution Making it happen
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Strategy
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What is entrepreneurship ?
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What is innovation ? Two building blocks
Innovation is about the ability of recombining/integrating different elements (some new, some old) Grandstand, Patel and Pavitt, 1997; Grant 1996 Ideas, physical components, functionalities, etc. Innovators need to be aware of what elements are available, and of the needs they
might satisfy
ATTENTION
Innovation is also about applying certain rules/procedures/routines
Nelson and Winter, 1982; Feldman, 2000 To favour control and predictability To codify and articulate lessons learnt (even if specific projects fail) To guarantee compliance with guidelines (safety, social responsibility, manufacturability,
etc.)
ROUTINES
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Innovation is the economically successful introduction of a new “technology (or combination of technologies) in order to create a stepwise or radical improvement in the value created for the client”
(De Meyer – Insead, 2003)
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What is « innovation » ?
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EXAMPLE
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What is « innovation » ?
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What is entrepreneurship ?
……tackling an innovation paradigm
Source : Innovation from the inside-out, E. Simanis & S. Hart, MIT Sloan Management 2009
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What is entrepreneurship ?
……tackling an innovation paradigm
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Chess (I) vs. Poker(II)
chess poker
the board is known the future is unpredictable
no new information needed along
the way pay for new information
you know what you’ve got (and your
opponent) from the start
you discover what you have along
the way
plan ahead don’t bet everything on 1 game
pay to play and to keep playing,
stop when you don’t meet your
milestones
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What is entrepreneurship ? Example
2008: Wound care specialisation Kristof - Burn care center Neder-Over-Heembeek
2011: Wound care specialisation Melissa - Ziekenhuis Oost Limburg
2013: Innovation-award province Limburg
2014: Repport online survey complex wound care in Limburg
2012 – 2015: Wound care in home care
2015: Startup wondzorgcentrum
Example
What is entrepreneurship ?
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Entrepreneurship characteristics
Help develop core behaviors through learning activities to practice, exhibit & develop confidence
Demonstrate:
• Opportunity recognition
• Problem Solving
• Taking Action
• Managing Autonomously
• Personal Awareness, perseverance
• Networking and communication
Help discover & develop personal attributes, develop awareness & opportunities to enhance:
•Goals and ambitions
•Self-confidence
•Perseverance
•Internal locus of control
•Action Orientation
•Innovation and creativity
•Optimism
•Self-efficacy
Help develop core skills and opportunities to practice in a range of situations to gain confidence & self-belief
Demonstrate ability:
•Creativity & innovation
•Persuasion & negotiation
•Approach to management
•Decision making
•Networking
•Opportunity recognition
Behaviors Attributes Skills
Source: Adapted fromQAA, Enterprise and entrepreneurship education, Guidance for UK higher education providers, 2012
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Is every starter in Belgium an entrepreneur and/or innovator ? If no, why not? If yes, why ?
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Reflection
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The « New Normal »
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A period of time with « VUCA » challenges
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The « New Normal »
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The « New Normal »
Change
Time
Technology
Ecology
Social
Business
Political
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(*) Mc Kinsey Global Institute Analysis 21
The “New Normal” Disruptive technologies
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EXAMPLE
The “New Normal” 3D Printing
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The “New Normal” Renewable Energy
EXAMPLE
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EXAMPLE
The “New Normal” Advanced Materials
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• Enhanced environmental awareness – Focus on sustainability from a corporate and personal point of
view – Focus on reduction of the expected value of environmental
costs and/or variance of environmental costs • Resources are being redeployed
– Old resources are re-valued – Shale gas recovering – Re-think use of resources
• Pollution is big business and demands organisation – Valuing ecosystem services to protect natural ecosystems – Valuing climate protection – Water pollution – Enough water ?
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The “New Normal” Ecological Change
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The “New Normal” Ecological Change
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The “New Normal” Ecological Change
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• Vibrancy of emerging market growth - Declining dependency ratios (higher disposable income) - Largest urban migration in history • Change in household composition and income
– Increase in number of one person households – Increase in number of double income households
without kids • Increase in life expectancy • Increase in world population – 12 bln people in 40 years • Shift in age structure
– Retiring ‘baby boomers’ in industrialized countries – Growing health – care awareness in industrialized
countries
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The “New Normal” Social Change
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EXAMPLE The “New Normal” Social Change
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Remarkable degree of loss aversion, hence missing potentially value-creating opportunities
The “New Normal” Business Change
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Risk is shifting to individuals in a market-driven global economy.
Pressure on governments is increasing
Global companies create a competitive advantage
through the selection of the right nations to
partner with.
They learn to work within and across multiple
- often divergent – regulatory environments
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The “New Normal” Political Change
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The “New Normal” Political Change
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Ecosystems
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• A Business Ecosystem is an interdependent set of agents, engaged in competition, co-opetition or collaboration, creating value from innovation
• Business Ecosystems consist of several domains; Intermediaries, Complementors, Regulators, Service providers, Substitutors
• Innovations operate in existing or create new business ecosystems
• Ecosystem members compete for delivering customer value forming Value Networks in which they collaborate following a Business Model
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Ecosystem defined
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TYPE OF INNOVATION
Receptive Innovation
Use traditional marketing and alliance strategies
Resistant Innovation
WHAT IS THE GOAL OF
DIFFUSING THE INNOVATION ?
Industrywide goal ?
Consider horizontal cooperation/ coopetition with other industry players
Purely competitive advantage for the company
Consider vertical cooperation with suppliers or distributors
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How to face initial resistance from consumers
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EXAMPLE
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Ecosystem defined
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Public universities or other neutral bodies undertake the initiative to develop innovative utilization of existing externalities
Knowledge and capabilities transferred to entrepreneurial institutions/individuals
Mitigates most issues that ails widespread adoption and implementation of symbiotic ecosystems
Benign externalities New enterprises
Ecosystems enhance symbiosis and speed up the concept development process
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Market
Complementor
Competing Innovator
Technology Supplier
Supplier
Innovator Firm
Technology
License to
Produce
Relation
Competing Innovator
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EXAMPLE
Mapping the ecosystem : an activity system perspective
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Ambidexterity
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Ambidexterity as a dynamic capability: resolving the organizational innovator’s dilemma
• Presence of compelling strategic intent
• Articulation of common vision
• Consensus among senior management, relentless communication and a common fate incentive system
• Separate exploitation & exploration
• Senior leadership able to handle tensions & contradictions Source :O’Reilly & Tushman (2007)
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Hunter
Business Unit A Business Line C
External Parties (vc‟s, corporate
venturing initiatives, customers,
suppliers ) Gatherer
Initial Evaluation
Initiate a
spin-out
Create a joint
venture or strategic
alliance.
INNOVATION & VENTURING HUB • Consults with senior management about using articulation of strategic intent to modulate the level
of disruptive innovative activity. • Implements techniques for stimulating idea generation and strategic assessments • Acts as home base for hunters and gatherers and as the „receiver‟ for disruptive innovations. • Helps the concept champion articulate the opportunity. • Convenes the screening committee and innovation board • Build new connections and partnerships • Fosters sustained action
Gatherer
Return Ideas that
aren‟t “ripe” to the
hub,
which can serve
as a repository.
Gatherer Gatherer
Source: Adapted from ‘Radical Innovation: how mature companies can outsmart upstarts’, by Leifer, Mc Dermott, O’Connor, Peters, Rice, Veryzer, Harvard Business Press, 2000
An innovation hub governs the overall innovation process and the organisational agility
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“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time and still retain the ability to function”
F. Scott Fitzgerald
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Ambidexterity : an organizational test of first-rate intelligence
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Conclusion
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Conclusion
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Financial Times, 15 November 2006
A blend of business economics, creativity and passion !
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Conclusion
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Thank you