Embed Size (px)
Citation preview
KIDS OUTDOORS 2030KIDS OUTDOORS 2030
KIDS OUTDOORS 2030KIDS OUTDOORS 2030
InnovationAustralian Camps Association
David Petherick
Innovation:Why it is critical to the future of the business of camping and why we
should care. David Petherick – CEO, ACA & MBA Candidate
Innovate or Perish: The business world is littered with examples of strong companies and even whole industries whose failure to innovate or recognise the threat of an innovation led to their downfall.
Why Innovation Matters“Companies that do not invest in innovation
put their future at risk. Their business is unlikely to prosper, and they are unlikely to be able to compete if they do not seek innovative solutions to emerging problems.”
(Australian government website)
Innovation is ‘the motor of the modern economy, turning ideas and knowledge into products and services.’ (UK Office of Science and Innovation)
In successful small and medium-sized enterprises:
• Innovation is consistently found to be the most important characteristic associated with success
(Statistics Canada)
“Innovation will be the single most important factor in determining America’s success through the 21st Century. For the past 25 years, we have optimized our organizations for efficiency and quality. Over the next quarter century, we must optimize our entire society for innovation.”
(The U.S. Council on Competitiveness, Dec. 2004)
BBC World News – October 2014Does Chına have what ıt takes to
be an ınnovatıon superpower?
BBC World NewsSunday 19th October 201498y.o. Futurıst ın Mıamı Florıda
talkıng about ınnovatıve cıtıes of the future
Innovate or Perish?Of the top 12 companies which
made up the Dow Jones Index in 1900 only one – General Electric – survives today.
What is Innovation?The successful exploitation of new
ideas.
Innovations are an outcome of a mindset and a culture where change is seen as an opportunity and is embraced. They depend on a willingness to do things that have not been done before. This mindset towards change is therefore the driving force behind innovation.
‘The whole problem wıth the World ıs that fools and fanatıcs are always so certaın of themselves - and wıse people so full of doubt’
Bertrand Russell
Two types of Innovation:Incremental – do things better
(continuous improvement)Radical/Disruptive – do things
differentlyBoth are important and we need to be able to do
both simultaneously
Sources of Disruption
9/11, TsunamiUnthinkable events
Amazon.com, Ryan Air and other low cost airlines, internet services
New business models –digital disruption
Telecoms, utilitiesRegulatory regime changes
Music industry, ‘green’ products, health issues (smoking, obesity, etc) global warming, energy
Sea change in market or attitudes/behaviour
Kodak, music studiosRunning out of road
Centrally planned, apartheid, trade liberalisationPolitical regime
Mini mills for steel-making, SMSNew market emerges
Nanotechnology, photos to digital, light sources (filament to fluro tubes to LED)
New technology emerges
Source: Based on John Bessant, MMT seminar, Feb 2006 & ’Managing Innovation’ Tidd, Bessant, Pavitt (2005)
37
Incremental Innovation – essential in all markets
….14 million sold daily
Rapid incremental innovation…….
Mobile Phone Market
18
When just doing things better is not enough!
• Invention of the telephone.
Western Union Board said:“this ‘telephone’ has too many
shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.”
Run over by a bus?• The music industry – Napster &
MP3 files• Book sellers – Amazon, eBooks• Kodak – digital photography
Run over by a bus – lessons for camps sector (incremental vs radical)
• Concorde – low cost airlines• Ice industry - refrigeration
15
Good ideas are often simple; but….
How it really happens…..
Process Innovation Model4 Key Phases:1. Search2. Select3. Implement4. Capture Value
1. SearchBringing new ideas to the system. Keeping on top of the search for new ideas.
Absorptive capacity – the ability to find & use new knowledge.
Requires both boundary spanners/absorptive capacity & subject experts
Innovation happens at the edges –so boundary spanning is critical.
Search Strategies:• Ask users – surveys etc• Scan the competition• Scan other sectors/industries
Market Research:Member/Customer Surveys
An important tool – but the answers do not always come from our customers
1984 Bruce Sprıngsteen – Born ın the USAThe last new release by a major artıst on LP
vınyl record (rather than CD)
23
”If I had asked my customers what they wanted, they’d have asked for
a faster horse.”
Henry Ford
2. SelectWhat are we going to do & why?Concerned with strategic choices.Which ideas/innovations are most
likely to help us grow and develop?
3. Implementation• Converting ideas into reality
4. Capturing ValueWe need to capture the benefits of
an innovation
Potential Sources of Innovation• Co-creation: using the ideas,
experience and insights of many people across a community to generate innovation
• Futures & forecastingImagining & exploring alternative trajectories to the dominant version in everyday use – to stimulate imagination around new possibilities.
Cluster DevelopmentWhere business’ (camps) cluster
together geographically for mutual benefit
A Framework for Innovation: a balanced portfolio
Four best practice project management traits to become a successful innovator:
Eco-driven – promoting effective collaboration to create strong external relationships to provide value,
Outside-in – become the best company to do business with,
Fighting trim – be flexible and agile to take advantage of opportunities, &
House in order – focus on efficiencies within the organisation which value collaboration.
A broad portfolio of innovations profiled against four ‘sides’.
‘1. Sell-side – projects that deal with customers and prospects.
2. In-side – projects that improve internal management of the firm.
3. Buy-side – procurement and supply chain-oriented projects.
4. Multi-side – projects that affect multiple stakeholders or constituencies, such as the public, opinion leaders, regulators.’
A companies’ project investments are the truest message of organizational intent. But merely having a collection of projects is no guarantee that your firm is investing effectively in the future. Selecting projects that are (1) aligned with your organization’s objectives, (2) complement each other, and (3) create leverage for the organization should be a key objective.
In Conclusion
• Innovation has been and will be the driver of productivity growth and economic well-being
• However, it has an even bigger role in improving our global society;
• Social innovation, open innovation and collaboration have huge potential for our sector
KIDS OUTDOORS 2030KIDS OUTDOORS 2030
