1. Creating and Sustaining Innovation to Support Institutional Excellence Joanne Kossuth, CIO Franklin W Olin College of Engineering Seminars on Academic Computing August 8/2005

2. What Is Innovation? How would you define innovation within the context of your organization? How would you define innovation within the context of your organization? Is innovation low or high on the priority scale at your institution? Is innovation low or high on the priority scale at your institution? How do you think this impacts your work? How do you think this impacts your work? How do you think it impacts the reputation of your organization? How do you think it impacts the reputation of your organization?

3. What Do Others have to Say About Innovation? Embrace change Embrace change Growth through innovation Growth through innovation Innovation and emerging technologies payoff Innovation and emerging technologies payoff End user generated innovation End user generated innovation Creativity for the long haul Creativity for the long haul

4. Embrace Change “Embrace Change or Perish” Rob Preston in Network Computing 6/23/2005, http://www.nwc.com p. 10 “Embrace Change or Perish” Rob Preston in Network Computing 6/23/2005, http://www.nwc.com p. 10http://www.nwc.com From Friedman, when the world is flat you can innovate without having to emigrate From Friedman, when the world is flat you can innovate without having to emigrate Why is that important, can anyone supply examples? Why is that important, can anyone supply examples? What do we need to do? What do we need to do?

5. Friedman’s View Friedman says we need to invest in education, training and infrastructure that will empower US entities to exploit their competitive advantage Friedman says we need to invest in education, training and infrastructure that will empower US entities to exploit their competitive advantage His bottom line is: Adapt, learn, innovate or be doomed His bottom line is: Adapt, learn, innovate or be doomed Is higher education looking to this model? Is higher education looking to this model?

6. Growth Through Innovation “The Search for Growth through Innovation”, Lior Arussy, Customer Relationship Management, July 2005 p. 22, www.destinationcrm.com “The Search for Growth through Innovation”, Lior Arussy, Customer Relationship Management, July 2005 p. 22, www.destinationcrm.com www.destinationcrm.com Efficiency based efforts have prevailed, damaging customer relationships and reducing entity’s ability to grow Efficiency based efforts have prevailed, damaging customer relationships and reducing entity’s ability to grow Does this paradigm sound familiar? Does this paradigm sound familiar? Have you seen it on campus? Have you seen it on campus?

7. GE Case Hired people who conformed and were less creative that fit efficiency driven culture Hired people who conformed and were less creative that fit efficiency driven culture To innovate: tying pay to customer satisfaction, customer longevity, number of unprofitable customers kept To innovate: tying pay to customer satisfaction, customer longevity, number of unprofitable customers kept Start for a revolution but GE will need to report results of initiatives to investors and find metrics to understand innovation Start for a revolution but GE will need to report results of initiatives to investors and find metrics to understand innovation

8. Innovation and Emerging Technologies Payoff CIO Insight Research Study CIO Insight Research Study “Innovation Makes Emerging Technologies Payoff” CIOInsight 6/2005 p. 64 “Innovation Makes Emerging Technologies Payoff” CIOInsight 6/2005 p. 64 5.4% corporate budgets spent specifically on innovation 5.4% corporate budgets spent specifically on innovation 73% of IT depts. Involved in new product and service innovation 73% of IT depts. Involved in new product and service innovation

9. Emerging Technologies and Payoff,Cont. 28% of companies are early adopters of IT 28% of companies are early adopters of IT 68% of companies receive significant payoffs from adopting emerging technology 68% of companies receive significant payoffs from adopting emerging technology 64% say emerging technologies play an integral role in supporting corporate innovation 64% say emerging technologies play an integral role in supporting corporate innovation Must keep the learning going Must keep the learning going

10. End User Generated Innovation Eric Von Hippel, CIOInsight 6/2005 p. 56-60 Eric Von Hippel, CIOInsight 6/2005 p. 56-60 “Major innovations companies find to create new product lines are coming from outside, from lead users, but they come in by unacknowledged pathways” “Major innovations companies find to create new product lines are coming from outside, from lead users, but they come in by unacknowledged pathways” e.g. video games designed with proprietary engines that they can make money from and let users build and modify games e.g. video games designed with proprietary engines that they can make money from and let users build and modify games Complementary to manufacturers since manufacturers are not good at sensing markets Complementary to manufacturers since manufacturers are not good at sensing markets

11. Where Do “We” Stand? “The Innovations Arms Race” CIOInsight Analysis p. 37 6/2005,Michael Fitzgerald “The Innovations Arms Race” CIOInsight Analysis p. 37 6/2005,Michael Fitzgerald High schools cannot teach our students what they need to know so they are obsolete (a Bill Gates statement) High schools cannot teach our students what they need to know so they are obsolete (a Bill Gates statement) 2005 National Science Foundation budget cut in R&D for first time since 1996 and 2006 budget includes 1/10th percent increase in R&D funding, most for homeland security. 2005 National Science Foundation budget cut in R&D for first time since 1996 and 2006 budget includes 1/10th percent increase in R&D funding, most for homeland security.

12. Where do “We” Stand, Cont. More than 68% of countries R&D funded by private companies versus 20 years ago when the majority was financed by the federal government More than 68% of countries R&D funded by private companies versus 20 years ago when the majority was financed by the federal government When money is tight, R&D budgets get slashed When money is tight, R&D budgets get slashed R&D now seen as a percentage of sales R&D now seen as a percentage of sales

13. Where Do “We” Stand, Cont. Foreign countries such as India invest in universities to help fill gaps and to leverage the innovation infrastructure of the US Foreign countries such as India invest in universities to help fill gaps and to leverage the innovation infrastructure of the US Sponsoring chairs and research centers at MIT,CMU Sponsoring chairs and research centers at MIT,CMU Walking away with the intellectual property that is created Walking away with the intellectual property that is created

14. Where Do “We” Stand,cont. Europe and Asia are graduating record numbers of students in science and engineering Europe and Asia are graduating record numbers of students in science and engineering Asian universities accounted for 1.2million science and engineering degrees compared to 850,000 in Europe and 500,000 in the US Asian universities accounted for 1.2million science and engineering degrees compared to 850,000 in Europe and 500,000 in the US

15. Creativity for the Long Haul “Creativity for the Long Haul” Warren Bennis, CIOInsight 6/2005, p.31 32 “Creativity for the Long Haul” Warren Bennis, CIOInsight 6/2005, p.31 32 Question is how to make creativity stay? Recognize and encourage on an ongoing basis Question is how to make creativity stay? Recognize and encourage on an ongoing basis Everyone is creative but anything that interferes with intrinsic motivation is a creativity killer e.g. money, depression, pressure, fear of negative consequences, Everyone is creative but anything that interferes with intrinsic motivation is a creativity killer e.g. money, depression, pressure, fear of negative consequences,

16. Creativity for the Long Haul Organizations are most creative when taking on external enemies or competitors Organizations are most creative when taking on external enemies or competitors It is our own job to stay creative and keep your staff the same through educational opportunities built into the normal workplace environment. It is our own job to stay creative and keep your staff the same through educational opportunities built into the normal workplace environment. Survival means looking forward and not back Survival means looking forward and not back

17. A Different Take IT department as purveyor of tool kits for innovation on the part of users rather than end solutions IT department as purveyor of tool kits for innovation on the part of users rather than end solutions Avalanche web site where companies are crosslisting and cross licensing their software to one another Avalanche web site where companies are crosslisting and cross licensing their software to one another Wikis? People that do not damage vending machines will not damage corporate documents Wikis? People that do not damage vending machines will not damage corporate documents

18. IT Matters “IT Matters Today and Tomorrow” Dave Molta, Networkcomputing 6/23/2005 “IT Matters Today and Tomorrow” Dave Molta, Networkcomputing 6/23/2005 Enrollment in computer science is down because of a culture that views an IT degree as a ticket to nowhere Enrollment in computer science is down because of a culture that views an IT degree as a ticket to nowhere

19. IT Matters Transformational power of technology will continue to be felt in new ways and organizations that leverage information using the tools of technology will continue to enjoy competitive advantage Transformational power of technology will continue to be felt in new ways and organizations that leverage information using the tools of technology will continue to enjoy competitive advantage What will it take to create and sustain the innovation to support our institutions? What will it take to create and sustain the innovation to support our institutions?

20. Contact Information Joanne Kossuth Joanne Kossuth 781-292-2431 781-292-2431 Joanne.kossuth@olin.edu Joanne.kossuth@olin.edu