Presentation on theme: "Innovation: The Path to Heaven … or … Hell? Po Chi Wu, Ph.D. Adjunct Professor School of Bus. & Mgt. School of Engineering HKUST."— Presentation transcript:
Innovation: The Path to Heaven … or … Hell? Po Chi Wu, Ph.D. Adjunct Professor School of Bus. & Mgt. School of Engineering HKUST
Agenda Context & Perspective PCW background and experience What is innovation? Innovation approaches: past, present, future Knowledge Economy – 21 st Century
Context & Perspective The Entrepreneurial Mindset Seeking opportunities Taking initiative Being accountable Delivering practical outcomes Courage to iterate
PCW background Cross-disciplinary experience Bridge Asia-Pacific-Europe Greater China (Taiwan, Hong Kong) Silicon Valley
Why innovate/change? Natural response to challenges Innovation => Resistance to change When not to innovate?
Investor perspective Long-term return on investment Risk-averse (conditional) Market-driven Innovation-driven Not futurists Insights from society/ecosystem Need stable financial industry infrastructure
Who are innovators? Change agents What do they need? Infrastructure Ecosystem Talent Guidance/nurturing
Space for innovation Why do most innovations fail? What are the conditions for innovation to succeed? External (ecosystem) – Internal Drive for creativity
Innovation approaches TRIZ/ATRIZ – Theory of inventive problem-solving Design-thinking – practical consumer-oriented Agile Innovation – organizational change In practice – try everything Challenge: Find what works for your organization
TRIZ/ATRIZ Early 20 th Century Russian solution for mechanical objects Theoretical study of repeated patterns in patents A study of change, theory of “contradictions” Repeatability, predictability, and reliability to problem- solving process with a structured, algorithmic approach Best for physical/engineering problems
TRIZ/ATRIZ Practical – training broader base of innovators Useful for eliminating “weak solutions” Mindset/philosophy – approach to work Management tool more than a creative tool Key question: What have we missed?
Challenges Starts from internal conceptual design Can be “mechanistic” Where is proprietary, competitive edge?
Samsung consumer electronics Super AMOLED displays Image-processing chips in digital TVs Frequency-filtering technology to reduce smartphone noise Economic value created: €1.5 Billion
Made with TRIZ – P&G http://www.xtriz.com/MadeWithTRIZ.pdf Proctor & Gamble’s most successful product
Principles Origins in architecture & design Focus on human concerns Learn from people’s behavior Find patterns Design principles Make tangible Iterate relentlessly
Design-thinking Knowledge-driven (people) New use of old tools: ethnography, intuition, STORY New technologies Problem definition – by customers, ecosystem Objective: unique, proprietary solutions Creation of new, fundamental IP
Design-thinking Combines empathy for the context of a problem, creativity in the generation of insights and solutions, and rationality in analyzing and fitting various solutions to the problem context.empathycreativityrationality Goal: “Matching people’s needs with what is technologically feasible and viable as a business strategy” - Tim Brown, CEO and president of IDEO Ref: Tom Kelley and Dave Kelley, Creative Confidence, Crown Business, 2013, ISBN 978-0--385-34936-9, pages 19-20. Design Thinking - Thoughts by Tim Brown, http://designthinking.ideo.com http://designthinking.ideo.com
Mobile APPs Newest, most intimate interface Simple, appealing design Designed for customer usability Flexible back-end Leverage – extends reach of knowledge
Intuit SnapTax – prepare tax return using smartphone In 2006 – 6 designers at executive level. In 2014 - 35 http://investors.intuit.com/press-releases/press- release-details/2015/Building-a-Design-Driven- Company/default.aspx
Agile Innovation Organizational change Unique, people-based growth process Facilitated, not “managed” Focus on “resistance” to change Holistic = systematic, disciplined, inspirational Experimentation
Agile Leadership What kind of culture fosters true innovation? What is required of leadership? How is this culture implemented? How is this culture maintained?
Challenges in ecosystem High degree of uncertainty Accelerating change Fierce, global competition Technologies/products more complicated IP an increasingly important strategic asset Knowledge workers are young Senior management challenged to learn
What is disruptive innovation? Technology-driven Redefines industry sectors Shifts power
Industrial Economy Early 20 th Century manufacturing model Based on extraction of resources Production of tangible, physical products Value of human labor – to serve machines Temptation – keep doing the same thing Why innovate (change)?
Knowledge Economy Based on intangible assets Knowledge, IP Value of knowledge Value of knowledge workers
SMEs Challenges of entrepreneurship Entrepreneurs are passionate learners Learn from experience Learn to innovate, beyond surviving New tools/resources China environment unique
Silicon Valley model May be wrong for China Spirit of innovation rooted in local culture Different resource base Different opportunities Different definitions of success Different paths to success Money is not best metric of successful role model
New business models New measures of value in ecosystem Based on “sharing” Platforms of knowledge, communications (ICT) Value of shared knowledge increases Value of unused IP decreases Direction of increasing value is irreversible
Summary Change is inevitable => innovation is essential To survive, we must adapt. Learn from others what might work for us. Accept that we don’t know enough, so experiment wisely.
Conclusion If you do not change direction, you may end up where you are heading Lao Tzu