SYSTEMATIC APPROACH TO BUILDING INNOVATION CAPACITY

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SYSTEMATIC APPROACH TO
BUILDING INNOVATION CAPACITY
INNOVATION
Global Competitiveness World Citizenship Confere
nce, Istanbul 12-14 November 2007

• Bob Barbour
• Director Chief Executive
• Centre for Competitiveness
• Belfast, N. Ireland.

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GLOBAL COMPETITIVENESS WORLD
CITIZENSHIP

• AGENDA
• Nature Significance of Innovation
• Critical Innovation Success Factors
• Building Innovation Capacity in Companies
• Building Innovation Capacity through Clusters /
  Collaborative Networks
• Innovation Capacity looking East and West
• Common Global Approaches to Innovation
• What makes a Nation Successful?

Systematic Approaches to Building Innovation
Capacity
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Whats at Stake?

• Gordon Brown "far-reaching and fundamental
  changes in technology, production and trading
  patterns are shifting the balance of global
  economic activity and supporting the rise of fast
  growing emerging economies, notably China and
  India
• ..The most successful economies will be those
  that are able to respond quickly to rapid
  technological and market changes, promote
  enterprise, productivity and Innovation

!!This is the Challenge for all European
Economies !!
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Nature Significance of Innovation
METHODOLOGY
SCIENCE
60s 70s
80s
Psychology of creativity Science of change and
transformation
TECHNOLOGY
Whole systems design Decision-support
systems Creative/innovative thinking
Implicit/intuitive knowledge capture Innovation
Processes Computer-assisted group creativity,
decision, and collaboration systems. Cultures
systems for continuous innovation and knowledge
creation
90s
00s
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Nature Significance of Innovation

Innovation Definition
Theodore Levitt Creativity is thinking up new
things. Innovation is doing new things
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Nature Significance of Innovation
Capture the Innovation Gold

• Continuous Be paranoid, Build a renewal
  strategy e.g. Wireless technology / Mobile
  Computing
• Context Challenge conventional wisdom e.g.
  Intel Inside / Tele Medicine
• Creation Develop new options e.g. optical
  technologies at the edge, Food as Medicine
  (Functional Foods)

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Innovation Maturity Curve

• Level 3
• Continuous Innovation
• Disciplined process
• Customer-centric
• Innovation targets
• Advanced tools techniques

• Level 2
• Incremental Improvement
• Problem-solving
• Idea Generation
• Evaluation
• Project Mgmnt

• Level 1
• Invention By
• Chance
• Random Tools Techniques
• Idea Generation

• Level 4
• RE-Inventing the Business
• Creating a total replacement

FarSight Group
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Cultivating a Culture of Innovation
Technology Award of Excellence
Rewards individuals and small teams whose
innovations deliver clear customer value, exhibit
exemplary behaviors, and contribute to overall
industry leadership
Innovator's Forum
"The best way to have a good idea is to have lots
of ideas" ... Linus Pauling
An Innovator's Forum creates a simple and
supportive environment where ideas can be heard.
Ideas Portal.
Patents Awards
Designed to reflect the importance that companies
have assigned to intellectual property rights as
a key tool in enhancing their competitive
position. Monetary Reward ????? per patent
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Critical Innovation Factors

• Active, committed top management support
• Strong strategic direction
• Customer-centered approach
• Skilled Innovation leaders
• Deliberate idea generation processes
• Marketing, technology and business development
  working together
• Seamless Innovation process with robust tools and
  methods

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Building Innovation Capacity in Companies
Building the Innovative Organization People Devel
opment Processes Tools Capabilities Finances
New Products, Services, Processes and
Businesses Long-Term Development Extending the
Enterprise Building the Innovation Portfolio
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A.T. Kearneys House of Innovation
Building Innovation Capacity in Companies

Holistic Approach to Innovation management
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Advanced Innovation Process
C
E
P
R
S
S
O
pportunity
urpose
esearch
reate
olution Development
ee
valuate
(1)
(2)
(3)

Innovation
Strategy
(3)
Identify

Internal /
Audit
External
(3)
Customer Deep
Info Gathering
Needs
Process of
(4)
Deep Needs
Value-Adds
Identify
(5)
(6)

Innovation
Targets
Generate
(7)
Concepts
Screening
Testing
(8)
Segmentation
Market
Business
Strategies
Competitive
Business
Analysis
Analysis
Definition
Scaling
Commercialize
Offering
Tactics
60 to 70 of total process
Feedback
-------
Measures
Farsight Group, USA
Represents 30 of the work to be done on average
Represents 70 of the work to be done on average
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Evolution of Business Systems
Manufacturing Systems
Selling Systems
Financial Systems
Information Systems
Management Systems
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Combining Marketing, Technology Business
Processes Integrated into regular business
processes
Aligned System
Business Results
Rapid Implementation
Strategic Opportunity
Innovation Creation
Resources
Tools and Technologies
Innovation Leadership Process
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• Building Innovation Capacity
• Through Clusters
• (Examples)

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Building Innovation Capacity Through Clusters

1
Can take up to 4 months
Facilitation Required
Identifying Cluster/ Collaborative Network
Opportunity Engage with Companies
Can take up to 12 months
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2
Scoping Study / Market Analysis / Capability
Study (Introduce Relevance engage Stakeholders)
Prioritise collaborative opportunities and form
collaborative network leadership groups
Can take up to 4 months
4
Agree short term tactical agenda Establish base
line data
Can take up to 24 months
5
Long term strategic agenda/ Establish
International Linkages
Firms Join Forces to Harness Ideas and Collaborate
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Innovation Cluster - Rules of Engagement
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Intranet Online Communities
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CLUSTER Advance Materials Curtain Sides
We would position our collaboration at level 4
Collaborators


COMPANIES Cunningham Covers (UK) Soltex
Global Ltd UK Meltit (CZ) APM (PT) W-Trailer
(UK) Redhead International (FR) Road Haulage
Assoc (UK DAppollonia (IT)
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Building Innovation Capacity Through Clusters
CFF 3D Clustering Model
Competence
HP Europe CISCO SYSTEMS MICROSOFT INTEL Queens
University
Capacity
Capability
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Building Innovation Capacity Through Clusters
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• Building Innovation
• Capacity
• Looking East West
• (Examples)

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Building Innovation Capacity Looking East

• South Korea (Western European Model)
• Three Linked Systematic Approaches
• Industrial techno-nationalism
• Scientific techno-nationalism
• Ubiquitous innovation
• Distinctive Innovation Components
• The State as a Partner (Not Driver) of Innovation
• Good Education
• Technically Literate Population
• Outstanding Infrastructure
• Modern Multi-nationals
• Dynamic younger generation
• International Collaboration

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Building Innovation Capacity Looking East

• China From Imitation to Innovation (next
  science superpower?)
• Worlds largest Technocracy ruled by Scientists
  Engineers
• Innovation Approach Government Top Down
• Rapid Mobilization of Resources (Large Scale)
• Major Investments in Research / Innovation
• 68 priority goals spread across 11 areas of the
  economy
• 16 Special Research Projects
• 8 cutting edge technology areas
• 8 cutting edge science challenges
• 4 Major new research programmes

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Building Innovation Capacity Looking East

• India The Uneven Innovator (Kirsten Bound)
• Quote Indias future cannot be one half
  California and half sub-Saharan Africa
• A Global Innovation Approach
• Innovation Potential based on Ancient Excellence
  in Scientific Developments
• Today Innovation is partly based on
  Interdependence, open for global business,
  international networks- knowledge sharing and
  outsourced business models.
• Flows of people, ideas cultures 20 million
  Indians spread around the globe are scientists,
  technologists, engineers and entrepreneurs.
• The Brain Drain Banked Overseas now returning
  to India for at least part of their time bringing
  money, ideas, contracts skills.

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Building Innovation Capacity Looking
WestNorthern Ireland PLC / UK Government
Partnerships
Infrastructure
Think Create Innovate Gov Policy
100 Broadband Availability
Unlocking Creativity Gov Policy
Supporting Creativity Innovation
Support Funding
Top Class RD with Businesses
Commercialisation
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Global Competitiveness - Mass Innovation Comes of
Age

• There is no Global Standard Innovation Model
• Common Global Approaches to Innovation
• Have an Infrastructure to Support Innovation
• Have Clear Objectives on Outcomes
• Have a Systematic approach to Innovation with
• People Processes to Achieve the Outcomes.
• Be Consciousness of the Changing Approaches
• to Managing Innovation (EG Open Systems /
  Networks)

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So what makes a Nation successful?

• According to World Economic forum
• A combination of factors taken together
• A Macroeconomic management sound public
  finances
• Efficiency in the use of Public Resources means
  more money to invest in Education, Public Health,
  Infrastructure
• Highly Trained Labour Forces adopt New
  Technologies and are at the forefront of
  Innovation
• Businesses invest in Innovation, Higher
  Productivity and increase their Competitiveness

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Keys to innovation in 21st Century

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Thank You
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