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The Principles of Innovation(4-6)

Manu Joseph Click to edit Master subtitle style Rajendra Kumar Das Ritesh Mehta Rohan Ankush Moon

Forming Collaborative Networks and Partnerships

Principle - 4

Principle 4- Forming Collaborative Networks and Partnerships


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The increasing complexity related to innovation today calls for a combination of skills which can be obtained by collaboration across different types of companies

The partnerships consist of collaborations between companies customers or users, or collaboration with other companies or universities and other knowledge-based organisations to access knowledge globally and innovate

Shared influence over joint innovation processes Knowledge is accessed externally and combined by the partners instead of one company alone owning all the elements of knowledge needed To do partnership innovation, the partners must give up sovereign power and open up It is a move from the hierarchical form of pooling resources to an open and collaborative method of partnering

Partnerships can take on many forms

Research projects to develop new technology New products or services Value Chains : optimise production processes, distribution, sales and so on

Airtel
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Included a whole range of different partners in order to reach as many customers as possible in rural India Partnered with a wide variety of firms - LM Ericsson (for the network), IBM(IT services), retail stores, call centres, and passive infrastructure Worked with large global firms (IBM and Nokia), microfinance institutions, and more than a million local shop owners (small Kirana shops spread across the country) Converted lumpy investments (such as networks) into variable costs by paying a percentage of revenue to the partners Also reduced their risk in making technology bets.

Dynamics between Large Companies and Entrepreneurs

Principle - 5

Principle 5 - Dynamics between Large Companies and Entrepreneurs


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Startups/Smaller companies - frontrunners within their industry, possessing the newest knowledge Tend to lose some of the innovative capacity as they grow and become big Intrapreneurship programs to foster internal entrepreneurship develop and capture ideas anywhere in the organization, catalyzing innovation among employees Joint effort between the large companies and startups to spur innovation which no one of them could have achieved on their own

Startups Then and Now


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Previously Seen as a way of filling technology gaps

Acquisition opportunity newer markets, venture in newer product lines

Today Seen as source of innovation and cooperative partners for business development

Gain competitiveness through innovation

Signs of Change
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Cultural change towards a Go ahead and try it mentality and an acceptance of failure key capabilities to compete on innovation

Google 20 percent of employees time on a new project they are passionate about and present their ideas to top management HP

Introduced Flashpoint Business Plan Competition Incubation hub to foster entrepreneurial mindset and innovation spill overs

Danfoss The Danfoss Golden Gate - venture and incubator program close collaboration with startups and rewards for entrepreneurial managers

Signs of Change
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Interaction with research institutes Production and research facilities located near to universities and knowledge institutions to gain access to talent and specific knowledge Deutsche Telekom Research and Development unit T-Labs (Telekom Laboratories) campus of Technische Universitat Berlin to promote interaction between science and enterprise Intel Working with Clearwire to develop WiMAX Startup companies as a way of staying ahead and innovating within industries that emerge - 400 companies in 20 countries

Gradual Transition

More companies focus on encouraging Intrapreneurship to foster innovation Various new internal programs to remain innovative Changed approach towards startups dynamics between large companies and entrepreneurs an important source of innovation

Visible Consequences

Knowledge institutions, large companies and start-ups locating themselves in proximity to have access to knowledge Creation of specialized knowledge hubs & accessing & combining of knowledge from different hubs around the world cutting edge technology creation of wealth and prosperity

Environmental Concerns Create New Business Opportunities

Principle - 6

Principle 6 - Environmental Concerns Create New Business Opportunities


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Increased awareness among the people of the environmental challenges Increased Demand for environmentally friendly products Increased awareness among companies of the economic perspective to participating in solving environmental problems Problems are opportunities for new business concepts Companies also started considering what effect their behaviour has on the environment Started reconsidering their production processes, energy and water efficiency, materials and pesticide usage, and so on

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Previous Period
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In the Industrial Era, the need for environment was not relevant Therefore, commercial innovation focused on solving the problems faced by companies, without considering the consequences But today, we know that many of those innovations were unsustainable in environmental terms Acid Rain, Polluted Water, and melting glaciers all side effects of the Manufacturing Era It is the governments job, not that of companies or scientists, to determine the ethical consequences of the discoveries they make

Signs of Change
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Companies behavior is changing Increasingly visible blurring in the sharing of responsibilities between companies and governments New markets related to issues such as cleaner energy and less pollution from transport are appearing. Eg- UPS The rising prices of natural resources, scarcity and polluting side effects of fossil fuels are making it profitable for companies to develop alternative and cleaner energy solutions GE- spent 18 months speaking with leaders from various industries to imagine life in 2015 and found out problems we are likely to face Launched Ecoimagination Ecomagination has led to a $17 billion business in new and reformulated products

Project Better Place Denmark


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20% of Denmarks electricity is provided by windmills Electricity produced by windmills unreliable and cannot be stored Electricity is also produced at night, when electricity consumption is low, resulting in wasted electricity Faced with an economic and environmental challenge, DONG Energy has found a profitable solution A solution which would resolve their surplus energy production as well as provide and alternative entry into the transportation business The sale of electricity to battery-powered cars which needs to be charged during the night Better Place Denmarks vision is that 20% of the total Danish car fleet will consist of electrically driven vehicles by 2020

Gradual Transition
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Companies slowly realizing that they can do their part for the environment by doing their day to day operations responsibly IT equipment are high energy consuming and thereby not very environment friendly Danish branch of IBM created a service which focused on reducing the amount of electricity used on large servers and IT equipment Started by evaluating their own performance 80% reduction IBM Denmark now develops climate technologies, not only IT Green IT

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Visible Consequence
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Business Community becoming increasingly vocal about climate change Interesting and unexpected coalitions are forming between business leaders, lobbyist, NGOs and politicians Cleaner energy, more sustainable production, construction, retailing and waste management are all obvious areas for growth

THANK YOU

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