Strategic Innovation Capita Selecta Dr Hugo Velthuijsen lector

Strategic Innovation Capita Selecta Dr Hugo Velthuijsen, lector New Business & ICT

Dr Hugo Velthuijsen Introduction • Position • • Professor Business & IT Leading Professor Center for Applied Research and Innovation on Entrepreneurship • Education • • M. Sc. Mathematics Ph. D. Computer Science/Artificial Intelligence • Experience • • 11 yrs research & development in The Netherlands and the USA 3 yrs Sales @ ICT company 8 yrs business management ICT company 4 yrs professor @ Hanze University of Applied Science Center of Applied Research & Innovation: Entrepreneurship

Intrapreneurship inside KPN The biggest company turnaround in The Netherlands ■ 8 yrs of continuous change after near bankruptcy ■ Approx. 10. 000 lay offs (>30%) ■ Crisis as a means to an end ■ Quarterly results on target without fail ■ Strong in financial results, challenge in innovative power Center of Applied Research & Innovation: Entrepreneurship

Entrepreneurship vs Intrapreneurship Who would you rather like to be? Center of Applied Research & Innovation: Entrepreneurship

Leadership vs Management Center of Applied Research & Innovation: Entrepreneurship 5

The Classics (1) Visionary companies ■ ■ ■ NOT: a great idea to start the company NOT: charismatic leaders NOT: maximising profits NOT: “correct” core values NOT: only constant is change NOT: play it safe (BHAGs) NOT: great places to work for everyone NOT: briljant and complex strategic planning NOT: change from without NOT: focus on beating the competition NOT: “tyranny of the OR” NOT: through vision statements Center of Applied Research & Innovation: Entrepreneurship

The Classics (2) Overcoming mediocraty ■ Level 5 leadership: personal humility and professional will ■ First who, then what ■ Face facts ■ Passion + world class ability + business model ■ Culture of discipline + entrepreneurship ■ Technology accelerators ■ Flywheel Center of Applied Research & Innovation: Entrepreneurship

The Classics (3) Crawford model – choose in which to excel Level Access Experience Price Product Service Dominate Solution Intimacy Agent Inspire Customize Differentiate Convenient Care Consistent Dependable Educate At par Easy Respect Honest Credible Accommodate Sub par Hassle Disrespect Misleading Poor Forgettable Recipe for success: Dominate with 1 attribute; differentiate with a 2 nd, operate at par with the rest (from: “The myth of Excellence”, Crawford & Mathews, 2001) 11 -12 -2021 New Business & ICT 8

The classics (4) Understanding your business ■ Canvas model ■ 9 pieces to the puzzle ■ All parts need to fit and to support each other Center of Applied Research & Innovation: Entrepreneurship

Strategisch Omgevingsmanagement • Opposition will be there • Pre-empt opposition • Look for lowest common multiple instead of greatest common divisor 11 -12 -2021 New Business & ICT 10

The Network Economy Extreme competition • China, India, fomer Soviet Union • 3 bn new capitalists • India: 400. 000 new IT bachelors graduate every year • Better educated, more eager • Seamless collaboration thanks to New IT / Web 2. 0 / Broadband 11 -12 -2021 New Business & ICT 11

The Network Economy The power shifts to the customer N=1 R=G 11 -12 -2021 New Business & ICT 12

Market development 11 -12 -2021 New Business & ICT 13

Marktbenadering Het echte wonder van Apple en Steve Jobs 11 -12 -2021 New Business & ICT 14

Work hard or work smart Inspiration or perspiratieon ■ The 10. 000 hour rule ■ Timing is key ■ Gates & Jobs became experts by chance ■ Gates & Jobs came at the right time Center of Applied Research & Innovation: Entrepreneurship

Marktbenadering Apple is het schoolvoorbeeld van een heart brand Simon Sinek: the golden circle 11 -12 -2021 New Business & ICT 16

Steve Jobs, The Perfect CEO Wired, October 2011 ■ Understanding customers and what the want, even before they know it ■ Mastery of market dynamics ■ Acumen of a poker champ ■ Commitment to excellence ■ Brutal rejection of “good enough” ■ Accountability when things go wrong ■ Charisma that make product launches as exciting as a Bruce Springsteen show ■ “If anybody’s going to make our products obsolete, I want it to be us. ” Center of Applied Research & Innovation: Entrepreneurship 17

Van de zeven hoofdzonden scoort Jobs er vijf Technisch weekblad, 22 oktober 2011 ■ IJdel ■ Gierig ■ Jaloers ■ Gulzig ■ Wraakzuchtig Center of Applied Research & Innovation: Entrepreneurship 18

Leiderschapsstijl Steve Jobs Inspirator of dictator Center of Applied Research & Innovation: Entrepreneurship

The Network Economy Evolution of supporting tools 20

The internet has the power to destroy The internet as the great equalizer • Production Example Music industry • Marketing & Credibility • Sales • Distribution Source: David Byrne (Talking Heads) in Wired • Business Model 11 -12 -2021 New Business & ICT 21

Niches are getting more important • Thanks to the internet: – Smaller markets become addressable – Lower marketing & distribution costs – More choice • Results in: – – 11 -12 -2021 New Business & ICT Decline in “best sellers” More items Higher total volume Market growth 22

Nothing in life is free… • • 11 -12 -2021 New Business & ICT Free mobile Free CD Radiohead Free demo software Free web service Free club entrance Free drugs Free google search 23

An example New Business • 14 yrs young • Ambition: to make available all information on Earth • Business model defined after 5 years • Market capitalization is starting to equal Microsoft’s • New common enemy (used to be Micro. Soft) • More recent innovations through acquisitions – Google Earth – Gmail – Etc. 11 -12 -2021 New Business & ICT 24

The Network Economy Transaction costs have changed 18. 02 • Mid-30 s: Big organisations exist to minimize transaction costs (Ronald Coarse) • Now: transaction costs are much lower • Cost of overhead and bureaucracy much less offset In the Next Industrial Revolution, Atoms Are the New Bits 25

The Network Economy Traditional way of doing business is changing The IT industry is leading 26

The Network Economy Changing the relationship of businesses with their customers Customers: • are better informed about you • are better informed about competitors • are better informed about their own preferences • are global • have more choice • expect better service • are easier to communicate with 27

The impact of social media Unstoppable force and powerful new tool kit Center of Applied Research & Innovation: Entrepreneurship

The Network Economy Social networks organising citizen participation into a 7 th power? • Trias Politica • Legislative • Executive • Judiciary • Three additional powers • Civil service • Media • External consultants 29

Crowdsourcing • • The wisdom of crowds Business communities Social networking Integrating in business practices • Solving SMEs problems? – Good employees – State of the art knowledge – Innovative power • Global sourcing 11 -12 -2021 New Business & ICT 30

The whole world can help you Open innovation Caveats • There are more ideas outside the company than inside • Profit from the ideas of others • Being smarter more important than being first 11 -12 -2021 New Business & ICT 31

The Network Economy Some ways to exploit different forms Xxxxx (Out)sourcing 11 -12 -2021 New Business & ICT Professional networks Shared innovation Xxxxx Crowd sourcing 32

Adapted Kraljic model Added value high Tool for classifying systems & processes II I Service management workstation management low Data centers communication standard specificity

Thank you Any questions? 11 -12 -2021 New Business & ICT 34