The University of Sydney Page 1 SIEN6006

Entrepreneurship Module 3 The University of Sydney Page 2 Today’s agenda •A Closer Look at Innovation •Guest speaker: Chris Stevenson, GHD •Recap of innovation material •Looking forward to Module 4 The University of Sydney Page 3 Our guest speaker Chris Stevenson Manager at GHD Digital Innovation and

entrepreneurship ‘Innovation is the specific tool of

entrepreneurs, the means by which

they exploit change as an opportunity

for a different business or service. It is

capable of being presented as a

discipline, capable of being learned,

capable of being practised’

- (Peter Drucker) Page 5The University of Sydney (Simple) process model of innovation Tidd & Bessant (2018) The University of Sydney Page 6 Search Research and

Development? Market research? Government

regulation? Bright ideas? Page 7The University of Sydney Search Tidd & Bessant (2018) ‘Established’ Research &

Development: e.g.,

engineering

Less established Research

& Development: small

business Page 8The University of Sydney Search & select: more traditional frameworks

Page 9The University of Sydney Page 10The University of Sydney The University of Sydney Page 11 Select Possible market and

technological opportunities –

what could we do? Can we build on our

knowledge base? Do we want to do it – does it

fit with our overall business? The University of Sydney Page 12 Select • What are our customers’ needs?

→ Understand customer requirements and preferences • Who / what are our competitors and what are they doing /

not doing?

→ Understand the competition • What are we doing right now?

→ Understand our own business processes The University of Sydney Page 13 The University of Sydney Page 14 Implement How will we execute the

project? How will we manage our

resources?* How will we sustain the

innovation? The University of Sydney Page 15 Challenges in growing a venture • Establishing a product- market fit • Social systems • Leadership for growth Having an innovation

strategy The University of Sydney Page 16 Capture Commercial or social value? Protect from competitors? How can we learn from our

innovation process? Page 17The University of Sydney (Simple) process model of innovation Tidd & Bessant (2018) Page 18The University of Sydney The scope for innovation Tidd & Bessant (2018) Dimension Type of change ‘Product’

Changes in the things

(products/services) which an

organization offers ‘Process’ Changes in the ways in which these

offerings are created and delivered ‘Position’ Changes in the context into which the

products/services are introduced

‘Paradigm’ Changes in the underlying mental

models which frame what the

organization does

Dimensions of innovation: what can we change?

The University of Sydney Page 24 Aspects of innovation – Incremental (or routine) – Disruptive – Radical The University of Sydney Page 25 Routine (or Incremental) Innovation – Builds on a company’s existing resources and capabilities – Fits with its existing business model

→ Fits with existing customer base.

What capabilities, or company strengths, are

Apple leveraging in these incremental steps?

The University of Sydney Page 26 Radical Innovation – Based on introducing technological breakthroughs

– These breakthroughs shift how an industry operates – Focuses on the long-term impact to an industry – Core competencies: new tech resources/capabilities – Better, more appealing products – Radical innovations can originate in completely different

industries to the one they succeed in The University of Sydney Page 27 - • In 2012, a tractor company began

equipping their tractors with

sensors, so farmers could track

and monitor their yields • They knew the potential of big

data and decided to leverage the

technology for their bottom line Radical Innovation: Example “Radical innovation focuses on long-term impact and may involve displacing current

products, altering the relationship between customers and suppliers, and creating

completely new product categories.” Hopp et al, 2018 The University of Sydney Page 28 Disruptive Innovation – Phrase introduced by Bower & Christensen (1995): – innovations, changes, processes that challenge

the status quo (and dominant design) of an

industry and have the potential to completely

upset the make-up of the industry – AKA disruptive innovation / disruptive change – Requires a new business model, but not

necessarily a technological breakthrough The University of Sydney Page 29 Characteristics of Disruptive Innovations The University of Sydney Page 30 Characteristics of Disruptive Innovations Different package of performance attributes (not valued, initially, by

existing, mainstream customers) Disruptive technology inferior on key performance attributes but

improving at a rapid rate, eventually catching up with mainstream

customer preferences →Mainstream customers often see disruptive technologies as too

risky, or not relevant to their needs.

Page 31The University of Sydney Diffusion of Innovations Page 32The University of Sydney Disruptive technology: examples 3D printing disrupts manufacturing Collaborative commerce disrupts

hospitality, e-commerce, retail https://www.youtube.com/watch?v=w3qt04mYIno Manufacture locally Low-cost production Speeds up production Lowers prototyping costs/time Makes new designs possible How? Consumers get what they need from each

other Pay for access to goods and services

rather than owning them How? The University of Sydney Page 44 In summary • Innovation is about growth – about recognising opportunities for doing

something new and implementing those ideas to create some kind of value. It

could be business growth, it could be social change. • Innovation is also a survival imperative.

If an organisation doesn't change

what it offers the world and the ways in which it creates and delivers those

offerings it could well be in trouble.

• And innovation contributes to competitive success in many different ways – it’s

a strategic resource. The University of Sydney Page 45 In summary • Innovation doesn’t happen simply because we hope it will – it’s a complex

process which carries risks and needs careful and systematic management.

• Innovation isn’t a single event, like the light bulb going off above a cartoon

character’s head. It’s an extended process of picking up on ideas for change and

turning them through into effective reality.

The University of Sydney Page 47 Module 4 – Entrepreneurship and Individuals • Understand the premise of psychological approaches to entrepreneurship • Apply the ‘Big Five’ personality and ‘Managerial Mindsets’ models. • Review: Canvas content (released on Thursday); required readings • Lecture: Guest speaker details to be announced on Canvas • Reflection and preparation for our next Workshop: Detailed on Canvas 51作业君版权所有