Advanced Models in High-Tech Marketing Day 2- Innovation – Blue Ocean and Global Brain modelos avançados em marketing de alta tecnologia

Course Objectives Review of advanced models in high-tech marketing Implementation of these models by the participants in a unique project Implementação Único Projeto Copyrights reserved to Ronen Arbel 20122

Day 2 Objectives Blue Ocean analysis for class projects Projeto Oceano Azul The innovators dilemma O Dilema do Inovador Global Brain Model Cérebro global Copyrights reserved to Ronen Arbel 20123

Course Rational Innovation Diffusion of Innovation Positioning/Branding Revenues Copyrights reserved to Ronen Arbel 20124

Course Rational inovação difusão da inovação Posicionamento/ Gestão de Marcas receita Copyrights reserved to Ronen Arbel 20125

Course Plan Copyrights reserved to Ronen Arbel 20126

Blue Ocean Copyrights reserved to Ronen Arbel 20127

8 What factors should be eliminated that the industry has taken for granted? Eliminate What factors should be reduced well below the industry standard? Reduce What factors should be created that the industry has never offered? Create What factors should be raised well beyond the industry standard? Raise Four Actions to create a Blue Ocean

PillCam Blue Ocean Analysis Copyrights reserved to Ronen Arbel 20149

cérebro global

The Emerging Innovation Agenda … We will acquire 50% of our innovations from outside. We expect a significant part of our offerings to be based on innovation occurring within the open source community. We expect our external innovation initiative to evolve from technology acquisition to the sourcing of more complete product concepts in the next few years. We have set an internal target of sourcing 30% of our product concepts from outside.

The Concept of Network-Centricity network centricity: “network as the focal point and the associated opportunity to extend, optimize, and/or enhance the value of a stand-alone entity or activity”

Network-centric Innovation Innovation inovação Customers clientes Academia Suppliers fornecedores Non-R&D Employees funcionário Independent Inventors inventores Copyrights reserved to Ronen Arbel

Personal Example for Innovation Copyrights reserved to Ronen Arbel

Network-Centric Innovation Applying the concept of Network-Centricity to Innovation: 1.Amplify innovation reach (aumentar) 2.Accelerate innovation speed (acelerar) 3.Improve the quality (qualidade)

Understanding the landscape..… Diffused difuso Community led More informal structures/linkages Etherarchical Centralized Dominant player led More formal structures/linkages Hierarchical Defined definido Clearly defined/structured problem space Exploitation, efficiency Emphasis on ‘known connections’ in knowledge-base Network Leadership Emergent emergente Less defined / unstructured problem space Exploration, novelty Emphasis on ‘unknown connections’ in knowledge-base Innovation Space centralizada

The Four Models of Network-Centric Innovation Creative Bazaar Jam Central OrchestraMOD Station CentralizedDiffused Defined Emergent Network Leadership Innovation Space

The Orchestra Model Characteristics Focused on exploiting the market opportunities based on an explicit innovation architecture that is defined and shaped by a dominant firm Role as the Innovation Integrator Found in markets where a proprietary dominant design has emerged Emphasize modularity and innovation efficiency Highly organized and coordinated innovation processes & support infrastructure Innovation MOD Station Orchestra Jam Central Creative Bazaar EMERGENT Network CENTRALIZEDDIFFUSED DEFINED

Predefined script Conductor or lead entity Defined roles based on expertise Hierarchical (formal) relationships

Boeing 787 Design & Development

787: Key Themes …  From “Build to Print” to “Design & Build to Performance”  Shared risk/reward ($4 billion partner commitment)  Boeing as the Orchestrator  High situational awareness (Virtual Global Collaboration Centers)

The Creative Bazaar Model Characteristics Focused on seeking out and bringing to fruition new innovation opportunities that meet the broad market and innovation agenda of the dominant firm Role as the Innovation Seeker Emergence of new types of innovation intermediaries (e.g. Innovation Capitalist) Found in markets that are diverse in terms of customer choices (e.g. consumer products) or technology application contexts (e.g. enterprise computing) Innovation MOD Station Orchestra Jam Central Creative Bazaar EMERGENT Network DIFFUSED DEFINED CENTRALIZED

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The Jam Central Model Characteristics Focus on exploring novel market/ technological problems Role as the Innovation Champion Members of the community together frame the broad parameters of the problem space Found in markets where complex and a diverse set of knowledge elements have to be brought to bear to solve novel & ill- defined problems Innovation MOD Station Orchestra Jam Central Creative Bazaar EMERGENT Network CENTRALIZEDDIFFUSED DEFINED

Jam Central Classic Total Registered Solvers: 300,000+ from nearly 200 countries Total Solver Reach: 13+ million through our strategic partners Total Solution Submissions: 40,000+ Total Awards Given: 1,500+ Total Award Dollars Posted: $40+ million Range of awards: $5,000 to $1+ million Premium Challenge Success Rate: 85% Copyrights reserved to Ronen Arbel

The MOD Station Model Characteristics Focus on exploiting the knowledge of a community of ‘experts’ to address market/technological issues within a predefined problem space Role as the Innovation Catalyst catalisador Community of innovators come together to create new offerings by “modifying” existing innovations in ways that benefit everybody Value appropriation and governance mechanisms defined by the community (includes social mechanisms) Innovation MOD Station Orchestra Jam Central Creative Bazaar EMERGENT Leadership CENTRALIZEDDIFFUSED DEFINED

Example for MOD

Defined Emergent emergente DiffusedCentralized OrchestraMOD Station Jam Central Creative Bazaar Where do you see your organization on this landscape? difuso centralizada definido

How do you prepare your organization to pursue those opportunities? …. The Capability Platform will depend on the specific model of network-centric innovation and the role your organization plays in it The elements of the capability platform:  Cultivate a culture of ‘openness’ franqueza  organizational structure estrutura organizacional  Adopt a portfolio of success metrics métricas de sucesso

So what is stopping us? … 73% of CEOs strongly agree that: “we could dramatically boost innovation by collaborating with outsiders, even competitors.” However, the same set of CEOs express: “deep dissatisfaction with our knowledge about appropriate strategies, practices, and tools” for such network-centric innovation. - Bain & Co CEO survey 2006  ‘Mindset’ Challenges (Are we okay with this?)  Contextualization Challenges (What is the best approach for us?)  Execution Challenges (Are we prepared for this?)

Some Concluding Thoughts ….  Collaborative innovation & problem-solving: The Way of the Future!  Engage diverse sets of stakeholders: customers, competitors, employees,suppliers  Pursue the “right” network-centric innovation approach  Experiment! Experiment!