Sources of Innovation

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1 Sources of Iovatio

2 Case: Give Imagig s Camera Pill v The Camera Pill: A capsule that is swallowed by patiet that broadcasts images of the small itestie v Iveted by Gavriel Idda & team of scietists Idda was a missile egieer o medical backgroud Project iitiated by Dr. Scapa, a gastroeterologist Idda applied guided missile cocept to problem of viewig the small itestie v Developig the Camera Pill May hurdles to overcome: size, image quality, battery life Formed partership with Gavriel Mero (CEO of Applitec) for capital to commercialize Formed partership with team of scietists lead by Dr. C. Paul Swai to combie complemetary kowledge Resulted i highly successful, revolutioary product

3 Case: Give Imagig s Camera Pill v Discussio Questios: What factors do you thik eabled Idda, a egieer with o medical backgroud, to pioeer the developmet of wireless edoscopy? To what degree would you characterize Give s developmet of the camera pill as sciece-push versus demad-pull? What were the advatages ad disadvatages of Idda ad Mero collaboratig with Dr. Swai s team?

4 Overview v Differet sources of iovatio

5 Discussios v P&G, 구글, GE, HP 등국외거대기업들은이미오픈이노베이션에뛰어들어성공을거두고있다. P&G 는약 150 만명에달하는외부네트워크에 기술요약서 라는기획안을공개하고아이디어를얻는파격적인방식을통해 1990 년대말성장침체위기를벗어났다. 순수익도 4 배이상치솟았다. GE 역시 Imagiatio Breakthough( 상상돌파 ) 프로젝트라는신성장동력개발프로그램을통해차세대청진기, 하이브리드기관차등새로운상품개발을진행하고있는가하면수십억달러의매출성과를올렸다. 외부로부터혁신을가지고들어오는것은어떤장점과단점이있을까?

6 Discussios Closed Iovatio Priciples The smart people i our field work for us To profit from R&D we must discover, develop ad ship it ourselves If we create the most ad best ideas i the idustry, we will wi We should cotrol our IP so that our competitors do't profit from our ideas Free from market pressures Kowledge is created, codified, set ad received Ope Iovatio Priciples Not all the smart people work for us so we must access kowledge ad expertise of bright idividuals outside our compay We do't have to origiate the research i order to profit from it Buildig a better busiess model is better tha gettig to market first If we make the best use of iteral ad exteral ideas, we will wi Disruptive iovatio: passioate users iovate, producers follow Kowledge created by iteractio

7 Creativity v Defiitio v Necessity The geeratio of imagiative ew ideas, ivolvig a radical ew iovatio or solutio to a problem A creative solutio to simply itegrate existig kowledge i a differet way The geeratio of ew ideas or the recombiatio of kow elemets ito somethig ew, providig valuable solutios to a problem 75% of CEOs of the fastest growig compaies claim their strogest competitive advatage is uique products ad services (CSC) 90% of orgaizatios believe iovatio is a strategic priority for 2004 ad beyod (BCG)

8 Creativity v Characteristics accordig to levels Idividual creativity Itellectual abilities (e.g., ability to articulate ideas) Kowledge (e.g., uderstad field, but ot wed to paradigms) Style of thikig (e.g., choose to thik i ovel ways) Persoality (e.g., cofidece i ow capabilities) Motivatio (e.g., rely o itrisic motivatio) Eviromet (e.g., support ad rewards for creative ideas) Orgaizatioal Creativity Fuctios Creativity of idividuals withi the orgaizatio Social processes ad cotextual factors that shape how those idividuals iteract ad behave Methods of ecouragig/tappig orgaizatioal creativity: Idea collectio systems (e.g., suggestio box) Creativity traiig programs Culture that ecourages (but does t directly pay for) creativity

9 Traslatig Creativity ito Iovatio v Iovatio vs. Creativity v Ivetors Implemetatio of creative ideas ito some ew device or process Combiig creativity with resources ad expertise Creativity is a behavior iovatio is ideas i actio Oe te-year study foud that ivetors typically: Have mastered the basic tools ad operatios of the field i which they ivet, but they will have ot specialized solely o that field. Are curious, ad more iterested i problems tha solutios. Questio the assumptios made i previous work i the field. Ofte have the sese that all kowledge is uified. They will seek global solutios rather tha local solutios, ad will be geeralists by ature Such idividuals may develop may ew devices or processes but commercialize few

10 Traslatig Creativity ito Iovatio v Systemic Approaches Customer-Orieted Techology-Orieted Data -Evaluatio of Cusotmers -Voice of Customer(VOC) -Marketig Research -POS -Patet Iformatio -Research reports -Implicit kowledge Methods -QFD -Data Miig -Cojoit Aalysis -Patet Map -TRIZ -Techology Roadmap

11 Traslatig Creativity ito Iovatio v Referece: QFD

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14 Traslatig Creativity ito Iovatio v Referece: TRIZ Method 150 만 Patets [World Wide] Ivetive Patets [40,000 건 ] Key Fidigs Defiitio of Ivetive Problems Levels of Solutio Patters of Evolutio Regularities of Ivetio Process May Stadard Problems May Stadard solutios <Idea geeratio methods> Substitute, Combie Modify, Magify, Miify Put to other uses Elimiate Reverse, Rearrage, My Problem Prism of TRIZ 4 4 Aalogy & Modificatio My Solutio M N

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18 Traslatig Creativity ito Iovatio v Referece: Patet Map *

19 Traslatig Creativity ito Iovatio v Research ad Developmet by Firms Sciece Push: Early 20C Suggest that iovatio proceeds liearly Scietific discovery à ivetio à maufacturig à marketig Demad Pull: After Mid 20C argued that iovatio origiates with umet customer eed Customer suggestios à ivetio à maufacturig A variety of sources ad process: Curret Most frequet collaboratios are betwee firm ad their customers, suppliers, ad local uiversities Iovatio Models (referece) Three phases model of Schumpeter: Ivetio è Iovatio è Diffusio Liear Model: Basic research è Applied research è Developmet è Productio Chai-liked Model

20 Traslatig Creativity ito Iovatio v Chai-liked Model (Referece)

21 Iovatio i Collaborative Network v Types of Collaboratio Joit vetures Licesig ad secod-sourcig agreemets Research associatios Govermet-sposored joit research programs Value-added etworks for techical ad scietific exchage Iformal etworks v Techology Clusters Defiitio: regioal clusters of firms that have a coectio to a commo techology Characteristics Proximity facilitates kowledge exchage. Cluster of firms ca attract other firms to area. Supplier ad distributor markets grow to service the cluster. Cluster of firms may make local labor pool more valuable by givig them experiece. Cluster ca lead to ifrastructure improvemets

22 Iovatio i Collaborative Network v Techology Clusters Factors for costructio of clusters The ature of the techology its uderlyig kowledge base the degree to which it ca be protected by patets or copyright the degree to which its commuicatio requires close ad frequet iteractio Idustry characteristics degree of market cocetratio stage of the idustry lifecycle ad trasportatio costs, availability of supplier ad distributor markets The cultural cotext of the techology populatio desity of labor or customers ifrastructure developmet atioal differeces i how techology developmet is fuded or protected

23 Iovatio i Collaborative Network v Techological spillovers Defiitio Effects The beefits from the research activities of oe etity spill over to other etities Sigificat impacts o techological iovatio Evideces: correlatio betwee patet activity/profit of a firm ad R&D expediture of other firms withi same regio Possibility of techological spillover Stregth of protectio mechaisms (e.g., patets, copyright, trade secrets) Nature of uderlyig kowledge base (e.g., tacit, complex) Mobility of the labor pool

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