How to Support and Develop the Innovation-oriented

Entrepreneurship in Turbulent VUCA conditions

Ilkka Kakko (in collaboration with Jari Kaivo-oja and Kari Mikkelä)21.9.2016, Tangsel Selatan Global Innovation Forum

Content

Ø Postnormal VUCA EraØ Cyclical Innovation Model as ecosystem driverØ Platform thinkingØ Serendipity managementØ Case: Espoo Innovation Garden, FinlandØ Vucability assessmentØ Conclusions

Postnormal Era - VUCA

Postnormal Era (ref. Boyd)=> Organizations are becoming fast-and-loose, reconfiguring

around social networks instead of business processes, becoming more decentralized and as autonomy increases, more egalitarian. We will belong to our networks – which are our own – and not to institutions that require us to subordinate our interests and selves.”

Postnormal times (ref. Sardar)=> complexity, chaos, contradictions

VUCA (ref. US Army)=> Volatile, Uncertain, Complex, Ambigous

Postnormal Era - VUCA

Other VUCA world visions include:* Big Shift (ref. John Hagel III, John Seely Brown, Lang Davison)

* The Age of the Unthinkable -> Seventh Sense (ref. Joshua Cooper Ramo)

* Anti-fragility (ref Nassim Nicholas Taleb)

Main characteristics:

> low or no predictability> non-linear development

> emergence of new, unexpected combinations of competences and business models

> legacy organizations face huge transformation challenges

Triple Helix ?

=> Triple Helix has been the dominant regional development theory⇒  It has a proven track record in “Normal Era” conditions, when the

business environment:> was predictable> followed linear development models> was mastered by pipeline thinking> support and infra were funded by public means> when regional or national approach and ambition was enough

⇒ These conditions still apply in many areas of business, but…..An increasing number of industries around the globe will be hit with disruption, chaos and emergence of new competition=> And STP world will not stay an isolated island in this storm.

Cyclical Innovation model (CIM) => Cyclical model of technological entrepreneurship and innovation links SMEs and entrepreneurship to four domains:

-  (1) scientific exploration, -  (2) technological research, -  (3) market transitions and-  (4) product creation.

⇒ No linear pipeline⇒ Innovation may start anywhere on the circle

Ref. Berkhout, A.J., Hartmann, D., van der Duin, P. & Ott, R. (2006) Innovating the innovation process. International Journal of Technology Management, 34(3-4), pp. 390-404. See also Trott, P., Hartmann, D., van der Duinn, P. & Scholten, V. and Ortt, R. (2016) Managing Technology Entrepreneurship and Innovation. London and New York: Routledge, p. 20.

CIM as an ecosystem driver

Ecosystem development

=> The competition is moving from enterprise level to ecosystem level

⇒ To generate ‘pull’ instead of ‘push’, Gravity as the main factor!

⇒ The evolvement of the ecosystem is based on principles of ⇒  self-organization with the help of orchestarators ⇒  bottom up approach, ⇒  grass-root level activities, ⇒  peer-to peer support and ⇒  the use of breeding environment type of platform

Platform thinking

“Firms that once sought advantage based on the strength of their internal resources and channel access now face competitors that harness armies of connected users and ecosystems of resources.Ø   Platforms will displace high cost gatekeepers with

meritocratic crowds;Ø  Platforms will aggregate disconnected players in

fragmented industries; Ø  Platforms will unlock new value from spare resources

and user-generated content.

Ref. Sangeet Paul Choudary

Pipeline vs. platform - thinking

Talent platforms, Mc Kinsey study

Serendipity Management

“Serendipity is the art of benefiting from unexpected ”“Serendipity management is a comprehensive set of

tools and facilitation methodologies, which by the help of tailored workspace design — both physical and virtual and through the facilitation of unexpected encounters

and collective insight, will support the emergence of new combinations of competences and the generation of

breakthrough ideas”

Project management vs Serendipity management

(RefKakko&Inkinen)

Espoo innovation Garden, Finland

•  Joku hyvä kuva

Espoo innovation Garden, Finland

•  Tähän ydinasiat

Espoo Innovation Garden, Finland

Ø Technopolis left Triple Helix scheme => space for new entities to emerge

Ø No more top down Ø Loose coordination but STRONG

collaboration Ø Gravity is enormous Ø New entities easily added (Vertical!) Ø Taxpayer’s money saved

Vucability assessment

“Vucability is the ability to prosper in VUCA conditions – on individual, community, ecosystem,

organizational and regional levels” => Evaluation and monitoring tool pilot available => Assessment and improvement potential:

> sophistication of ecosystem development > density of serendipity thinking > utilization of platforms

Vucability assessment

Conclusions

⇒  Triple Helix has worked well in “Normal Era”

⇒  We are entering VUCA world in an ever increasing speed

⇒  Vucability will be the vital characteristics of a successful innovation environment

⇒  Ecosystem development, platform thinking, serendipity management practises and global approach essential in VUCA conditions

⇒  Case example Espoo Innovation Garden proves that new solutions are already implemented successfully

⇒  How to transform, complement or replace the traditional Triple Helix model is the big challenge of the near future

The benefits of coworking

© Lee Fleming 2004 /HBR November 2004

YogiBerra

”The future ain’t what it used to be”

Thank you!

For further information: Ilkka Kakko

+ 358 50 536 2941

Twitter: @Serendipitor

ilkka.kakko@karostech.fi

www.karostech.fi

www.respectserendipity.com