Creating Abundance Through Innovation - Rutgers …civet.rutgers.edu/pdf/seminars/Carlson.pdf ·...

Creating Abundance Through InnovationInnovation is our only path to growth, prosperity, environmental sustainability, and security

Rutgers University

Dr. Curtis R. CarlsonPresident and CEOSRI InternationalMenlo Park, CA 94025

November 4th 2009

SRI International

Innovation economy – value creation

Knowledge economy – programming

Industrial economy – drafting

Agrarian economy – animal husbandry

The Innovation EconomyEducation must change for us to thrive

SRI International Copyright SRI International 2009

Innovation Economy: Abundance of opportunities; rapid, exponential improvement; intense global competition

Important Societal NeedsAn imperative for improvement

SRI International

Many country’s populations are declining and aging Costs are increasing

Loss of tax revenues as fewer work Social costs with aging Environmental costs

Global competition is incredibly intense To sustain standards of living productivity must increase by

several percent per year, but: Big companies are growing slowly, if at all The venture business is in a downturn

Many see this as a time of scarcity; not abundance

Copyright SRI International 2009

Innovation is the creation and delivery of new customer value in the marketplace with sustainable value for those producing it


Definition of Innovation

Not just R&D and knowledge creationNot just creativityNot just collaboration or teamworkNot just entrepreneurship

But we have major challenges we must face

A World of Abundance, Not Scarcity

In the Innovation Economy there are no limits to ideas and creativity


SRI International

Accelerating Global CompetitionShanghai, Singapore, Beijing, Dalian, Bangalore, and …


The Main-Street Media Miss the StoryJobs come from the innovation driven parts of the economy

Small Medium

Large

Copyright SRI International 2008SRI International

Sorry, No RoomIs this really in the long-term interest of the U.S.?

SRI International

So How Do You Think We Are Doing?


The Waste Is EnormousOur innovation ability can improve greatly

Consumer Products1 of 10-20 succeed

High growth entrepreneursEven in Silicon Valley only 1 of 5-7 succeed

H P


University “Technology Transfer”These programs are mostly unsuccessful: even the name is wrong!

The Brutal Corporate RealityEssentially the rule

"Every CEO will at least give lip service to the idea that the world is moving faster and that we need to do a better job at innovation …

but if you go into an organization and ask people to describe their innovation system, you get blank looks … they have none."

Gary Hamel: Harvard University

We at SRI have worked with 100s of international companies, and we strongly agree


• U.S. born students are opting out of science and engineering at the best time ever

• It takes us >5 years to make a straight-A Ph.D. productive

• What they don’t know:• Innovation – their profession• Teamwork and multi-disciplinary

collaboration – the keys to impact• Presentation and writing skills plus the basics

of intellectual property and management

The Brutal Educational RealityWe are not adapting to the new global realities


We’re really not doing a verygood job at innovation

SRI International

InnovationReport Card

C-

Imagine if we did just a few percent better?


SRI International

The Way We Work Is Our Most Important Innovation


SRI InternationalHistory of world-changing technological innovations

• Silicon Valley nonprofit• Founded by Stanford University in 1946• 2,200 staff members: $0.5 billion per year

• What we do• R&D and new products for commercial and government

• Info, bio, and nano• Education, health, and economic development

• Form new ventures and license technology

Princeton, NJ

St. PetersburgTokyoBangaloreTaipeiBelgiumMiddle East12 US citiesMenlo Park, CA


Several of SRI’s Disruptive InnovationsHundreds of billions of dollars in economic value created

First Arpanet logon.com .org .gov HDTV, color TV, … Computer mouse

Address reading

Electronic Banking Color film reproduction

Low cost solar-grade silicon

Cognitive Assistant that Learns and Organizes

“Siri is one of the top-10 new companies most likely to change

the way we live and work.” MIT Technology Review 2009CALO award-winning team

16Copyright SRI International 2009

SRI International

SRI’s Innovation ProgramsDeveloping and sharing innovation best practices with leading companies, universities, and governments


INSTITUTE FOR INFORMATION INDUSTRY

“The one-week SRI 5 Disciplines of Innovation workshop was moreuseful than the five-week course I took at a prestigious Northeastern management school.” Jana Bennett, Dir. of TV, BBC

Creating Abundance in the Innovation Economy


New

val

ue

Time

3. Continuous value creation processes in place

1. Customer focus

2. Shared language, concepts, and tools for customer value

Value Creation HierarchyFew reach the “Black Belt” level needed to thrive


9/10 Fail

SRI International

Role Models Best practices change over time

DemingKnowledge economyQuality, quality, quality

FordIndustrial economyCost, cost, cost


SRI’s EngelbartInnovation economyValue, value, value

• Successful innovation is a disciplined, continuous improvement process with an unrelenting focus on the customer

• It is a process that applies to all enterprises, including government, industry, and academia

SRI “Five Disciplines of Innovation”We teach these ideas to all staff

• Important customer needsX

• Value creationX

• Innovation championsX

• Innovation teamsX

• Organizational alignment=

Success

I T


Time

B

Valu

e

Start overC

New ideas

A

Important customer and market needs

World-leading R&D

Value Creation Is a ProcessGoal: connect A and B faster than the competition


Presenter

Presentation Notes

Start with product development curve, which they have seen before Most companies focus on B -> C (as do most processes). 5DoI is a process for the early part of the curve, where high-value, breakthrough innovations are created (vs. incremental) Six steps, from NABC Value Propositions to Commercialization transition in one click at a time Fundamental approach on how to get from A -> B with a major focus on the customer

What Is Customer Value?Most important definition in business, including education


=Benefits

CostsCustomer

Value

Value PropositionsThe second most important definition in any business


Approach

Need

Benefits/costs

Competitionn bc

Value Creation ForumsRapid, continuous iteration required


Value proposition

Need

Benefits per costs

ApproachCompetition

Innovation plan

Funnel and Pipeline Structures FailThis only works when there is little innovation

Innovation

VP1

Ideas1.2.3.4.5.6.7.…

VP3 Corporate approval

CustomersVP2 Legal and QC


• Engineering – innovation and new knowledge

• Math and physics – innovation and …

• Economics and business – innovation and …

• Architecture, media, and art – innovation and …

• Social sciences and psychology – innovation and …

• Political science – it should be innovation!

Purpose of Much of EducationInnovation


Worcester Polytechnic Institute’s “Plan” Technical education plus innovation and human skills

• Project-based technical education• Global perspective• 20 sites including China and Africa• Teach innovation

• Real-world problem solving• Small teams• Iterate – early and often• Stand up and present – often• Required output – innovation


Silicon Valley’s Girls Middle SchoolForstering entrepreneurship at a very early age

• All girls: 6th, 7th, 8th grades • Mountain View, CA• Diverse student body• Project-based curriculum

• Entrepreneurial Program• Teams of 4-5 girls create and run their own businesses• Write BP, request capital from VCs, design the

product, and manufacture and sell the product• Learn creativity, teamwork, communication

skills, and personal responsibility


Digital, On-Line, Interactive Math & ScienceAllows the bottom 25% to perform like the top 25% today

• Teaching 7th and 8th grade algebra• $6M NSF evaluation after >10 yrs research• Future of math, science, and innovation-based education

• SRI International is writing the US strategy for the DoEd for digital on-line math, science, and innovation


Time

B

Valu

e

Start overC

New ideas

A

Important customer and market needs

World-leading R&D

Value Proposition: NABC

Fundamentals of InnovationThe fundamentals must always be satisfied

• Important market need• Customer needs driven• Process to connect A to B• Extremely rapid iteration• Continuous improvement


Presenter

Presentation Notes

Start with product development curve, which they have seen before Most companies focus on B -> C (as do most processes). 5DoI is a process for the early part of the curve, where high-value, breakthrough innovations are created (vs. incremental) Six steps, from NABC Value Propositions to Commercialization transition in one click at a time Fundamental approach on how to get from A -> B with a major focus on the customer

Final ThoughtsCreating an ecosystem for innovative success

• Societal costs are rapidly increasing• Improved ability to innovate is the only path for growth,

prosperity, environmental sustainability, and security• Consider the positive impact on society if the

disciplines of innovation were broadly:• Used by our teams• Adopted by our enterprises• Reported on accurately by our media• Used and promoted by our governments• Taught broadly and seriously by our schools and universities

• Thanks to your important work, they will be


Thank you for your attention

Discussion

Dr. Curtis R. [email protected]

+1 650 859 2878

SRI International

Creating Abundance Through Innovation - Rutgers …civet.rutgers.edu/pdf/seminars/Carlson.pdf ·...

Documents

Transcript of Creating Abundance Through Innovation - Rutgers …civet.rutgers.edu/pdf/seminars/Carlson.pdf ·...