Entrepreneurship and Innovation The New Normal Ecosystems Ambidexterity. Business Coaching Seminar Kris Vander Velpen Geel, Jan 9, 2017
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1 Entrepreneurship and Innovation The New Normal Ecosystems Ambidexterity 1 Business Coaching Seminar Kris Vander Velpen Geel, Jan 9, 2017
2 Content 1. Entrepreneurship and Innovation 2. The New Normal 3. Ecosystems 4. Ambidexterity 5. Conclusion 2
3 3 Entrepreneurship and Innovation
4 What is entrepreneurship? 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. 4
5 What is entrepreneurship? Timmons Model Communication Ambiguity Opportunity Business Opportunity Plan Fits and gaps Resources Exogenous forces Creativity Uncertainty Team Leadership 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 5
6 What is entrepreneurship? Ongoing Operations Strategy Innovation Committing to an innovative concept Organizing Planning Execution Making it happen 6 Kritayuga_N o without
7 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 7
8 What is «innovation»? 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) 8
9 What is «innovation»? EXAMPLE 9
10 What is entrepreneurship? tackling an innovation paradigm Source : Innovation from the inside-out, E. Simanis & S. Hart, MIT Sloan Management
11 What is entrepreneurship? tackling an innovation paradigm 11
12 Chess (I) vs. Poker(II) chess the board is known no new information needed along the way you know what you ve got (and your opponent) from the start plan ahead poker the future is unpredictable pay for new information you discover what you have along the way don t bet everything on 1 game pay to play and to keep playing, stop when you don t meet your milestones 12
13 What is entrepreneurship? Example 13
14 What is entrepreneurship? 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 : Wound care in home care 2015: Startup wondzorgcentrum Example
15 Entrepreneurship characteristics Behaviors Attributes Skills 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 15 Source: Adapted fromqaa, Enterprise and entrepreneurship education, Guidance for UK higher education providers, 2012
16 Reflection Is every starter in Belgium an entrepreneur and/or innovator? If no, why not? If yes, why? 16
17 17 The «New Normal»
18 18 1 8
19 The «New Normal» A period of time with «VUCA» challenges
20 The «New Normal» Technology Ecology Change Social Business Political Time 20
21 The New Normal Disruptive technologies (*) Mc Kinsey Global Institute Analysis
22 The New Normal 3D Printing EXAMPLE 22 22
23 The New Normal Renewable Energy EXAMPLE 23
24 The New Normal Advanced Materials EXAMPLE 24
25 The New Normal Ecological Change 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?
26 The New Normal Ecological Change 26
27 The New Normal Ecological Change
28 The New Normal Social Change 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
29 The New Normal Social Change EXAMPLE 29
30 The New Normal Business Change Remarkable degree of loss aversion, hence missing potentially value-creating opportunities 30
31 The New Normal Political Change 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 31
32 The New Normal Political Change 32
33 33 Ecosystems
34 Ecosystem defined A Business Ecosystem is an interdependent set of agents, engaged in competition, coopetition or collaboration, creating value from innovation Innovations operate in existing or create new business ecosystems Business Ecosystems consist of several domains; Intermediaries, Complementors, Regulators, Service providers, Substitutors Ecosystem members compete for delivering customer value forming Value Networks in which they collaborate following a Business Model 34
35 TYPE OF INNOVATION MIT Sloan Management Review, Summer 2007 How to face initial resistance from consumers 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 : Overcoming Consumer Resistance to Innovation 35
36 Ecosystem defined EXAMPLE 36
37 Ecosystems enhance symbiosis and speed up the concept development process 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 37
38 Mapping the ecosystem : an activity system perspective EXAMPLE Competing Innovator Competing Innovator Supplier License to Produce Market Technology Supplier Technology Innovator Firm Relation Complementor 38
39 39 Ambidexterity
40 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) 40
41 An innovation hub governs the overall innovation process and the organisational agility Return Ideas that aren t ripe to the hub, which can serve as a repository. Initiate a spin-out Initial Evaluation 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 Gatherer Build new connections and partnerships Fosters sustained action Hunter Business Unit A Gatherer Business Line C Gatherer External Parties (vc s, corporate venturing initiatives, customers, suppliers ) Gatherer Source: Adapted from Radical Innovation: how mature companies can outsmart upstarts, by Leifer, Mc Dermott, O Connor, Peters, Rice, Veryzer, Harvard Business Press,
42 Ambidexterity : an organizational test of first-rate intelligence 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 42
43 43 Conclusion
44 Conclusion 44
45 Conclusion A blend of business economics, creativity and passion! 45 Financial Times, 15 November 2006
46 Thank you 46
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