Entrepreneurship and Innovation - iiw.kuleuven.be · 1 Entrepreneurship and Innovation The “New Normal” Ecosystems Ambidexterity Business Coaching Seminar Kris Vander Velpen Geel,

1

Entrepreneurship and Innovation The “New Normal” Ecosystems Ambidexterity

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

Kritayuga_No

reproduction

without permission

Business Coaching Seminar_ January 2017

3

Entrepreneurship and Innovation

4

What is entrepreneurship ?

Kritayuga_No

reproduction

without permission

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.


5

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”

Kritayuga_No

reproduction

without permission


6

Ongoing Operations Innovation

Committing to

an innovative concept

Organizing

Planning

Execution Making it happen

Kritayuga_N

o

reproduction

without

permission

Strategy



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

Kritayuga_No

reproduction

without permission


8

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)

Kritayuga_No

reproduction

without permission

What is « innovation » ?


9

EXAMPLE

Kritayuga_No

reproduction

without permission

What is « innovation » ?


10

Kritayuga_No

reproduction

without permission



……tackling an innovation paradigm

Source : Innovation from the inside-out, E. Simanis & S. Hart, MIT Sloan Management 2009

11

Kritayuga_No

reproduction

without permission



……tackling an innovation paradigm

12

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

Kritayuga_No

reproduction

without permission


13

Kritayuga_No

reproduction

without permission


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


15

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

Kritayuga_No

reproduction

without permission


16

Is every starter in Belgium an entrepreneur and/or innovator ? If no, why not? If yes, why ?

Kritayuga_No

reproduction

without permission


Reflection

17

The « New Normal »

18

Kritayuga_No

reproduction

without permission

18


19

19

A period of time with « VUCA » challenges

Kritayuga_No

reproduction

without permission



20

Kritayuga_No

reproduction

without permission



Change

Time

Technology

Ecology

Social

Business

Political

21

Kritayuga_No

reproduction

without permission

(*) Mc Kinsey Global Institute Analysis 21

The “New Normal” Disruptive technologies


22

Kritayuga_No

reproduction

without permission 22

EXAMPLE

The “New Normal” 3D Printing


23

Kritayuga_No

reproduction

without permission


The “New Normal” Renewable Energy

EXAMPLE

24

Kritayuga_No

reproduction

without permission


EXAMPLE

The “New Normal” Advanced Materials

25

• 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 ?

Kritayuga_No

reproduction

without permission

25

The “New Normal” Ecological Change


26


Kritayuga_No

reproduction

without permission


27

27 Kritayuga_No

reproduction

without permission



28

• 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

Kritayuga_No

reproduction

without permission

28

The “New Normal” Social Change


29

Kritayuga_No

reproduction

without permission

EXAMPLE The “New Normal” Social Change


30

Kritayuga_No

reproduction

without permission

Remarkable degree of loss aversion, hence missing potentially value-creating opportunities

The “New Normal” Business Change


31

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

Kritayuga_No

reproduction

without permission

The “New Normal” Political Change


32

Kritayuga_No

reproduction

without permission

The “New Normal” Political Change


33

Ecosystems

34

• 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

Kritayuga_No

reproduction

without permission

Ecosystem defined


35

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

© :

Ove

rco

min

g C

on

sum

er R

esis

tan

ce t

o In

no

vati

on

–

MIT

Slo

an M

anag

emen

t R

evie

w,

Sum

me

r 2

00

7

Kritayuga_No

reproduction

without permission


How to face initial resistance from consumers

36

EXAMPLE

Kritayuga_No

reproduction

without permission

Ecosystem defined


37

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

Kritayuga_No

reproduction

without permission


38

Market

Complementor

Competing Innovator

Technology Supplier

Supplier

Innovator Firm

Technology

License to

Produce

Relation

Competing Innovator

Kritayuga_No

reproduction

without permission

EXAMPLE

Mapping the ecosystem : an activity system perspective


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)

41

Kritayuga_No

reproduction

without permission


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

42

“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


Ambidexterity : an organizational test of first-rate intelligence

Kritayuga_No

reproduction

without permission

43

Conclusion

44 Business Coaching Seminar_ January 2017

Conclusion

Kritayuga_No

reproduction

without permission

45

Kritayuga_No

reproduction

without permission

Financial Times, 15 November 2006

A blend of business economics, creativity and passion !


Conclusion

46

Kritayuga_No

reproduction

without permission


Thank you

Documents

Entrepreneurship and Innovation - iiw.kuleuven.be · 1 Entrepreneurship and Innovation The “New Normal” Ecosystems Ambidexterity Business Coaching Seminar Kris Vander Velpen Geel,