Faciliation Slides - Lebanon

Co-‐Crea'ng Innova'on Hubs Beirut, Lebanon, October 21st 2014 SLIDE PACK FOR THE WORKSHOP Day 1 21 October 2014

1

Objec&ves The workshop has 2 objec&ves: 1.  Co-‐create & define with all stakeholders ac'ons to strengthen the mobile internet

ecosystem. 2.  Brainstorm a year of innova'on ac'vi'es among all stakeholders of the ecosystem to

support job growth and compe''veness.

Challenge Create a mobile internet innova'on ecosystem concept that supports technology startups and entrepreneurs to create real & tangible value in terms of jobs & growth. This means that this concept will have to create simultaneous value for all par'cipants in the mobile internet ecosystem.

Introduc'on to the component Team work: objec'ves

2

Day 1 Component 1

Discovering Innova'on Ecosystems Beirut, Lebanon, October 21st 2014

3

Workshop flow & methodology of 4D’s

Source: adopted and modified Koria 2013 from the UK Design Council

Discovering Innova'on Ecosystems

Defining Value

Opportunity

Develop Service and Business

Delivering to the Real World

Wide view on policy & system

Tight focus on applica'on &

implementa'on

Feedback through tes'ng

1 Discovering Innova'on Ecosystems

1 2 3 4

4

•  The idea of the innova'on ecosystems. •  Importance of users in ecosystems & their limita'ons •  The changing role of business: plaWorms and networks. •  The importance to stakeholders, roles of actors. •  Components of an entrepreneurial ecosystem (culture, policy, suppor'ng systems, markets, human capital and finance)

•  Introducing the ecosystem canvas.

Introduc'on to the component Background & content

5

Any defini'on of innova'on involves three main a[ributes:

•  Novelty •  The new as in previously unknown or as novelty to the circumstance

•  Need & U&lity •  Innova'on is based on need

•  Success •  This can imply commercial success, but also widely diffused new

organiza'onal configura'ons or reconfigured assets

ü  Without these, there is no innova'on! Innova'on exploits new knowledge and needs to be socially acceptable

Starting with definitions of innovation Innova'on and ecosystems

6

Bruce & Bessant 2002: •  Innova&on is the successful applica'on of new ideas in

prac'ce in the form of new or improved products, services or processes

•  Crea&vity is the ability to combine ideas into new ways to solve problems and exploit opportuni'es

•  Design is the purposeful applica'on of crea'vity throughout the process of innova'on

2.4 Design Thinking in Business Innova'on, Crea'vity, Design

7

BIZ

GOV

UNI

USERS

Top down

BoCom up

Users in innova'on ecosystems

8

•  Innova'on can be seen as a “User-‐driven” process: –  Increasing customer interac'on –  Co-‐crea'on –  Users as originators of innova'ons –  Open innova'on thinking –  Crowdsourcing –  Interpreters

ü User (demand) led innova'on is impac'ng on firms, organiza'ons and thus business models and innova'on strategy

User driven innova'on & co-‐crea'on

9

•  We are moving from pipeline business into plaWorms

•  We are also moving from products to services and product-‐service systems that are driven by business models

ü Nature of biz is changing in to networked hybrids, where value is created through interac'on

Changing nature of business

10

•  Pipes •  The conven'onal industry and dominant model of business un'l today

(television, britannica, educa'on systems, industry, services). •  Firms create products & services, push them out and sell. •  Value is created upstream and consumed downstream. •  Linear flow, ohen one way •  Our users interact with the so/ware we create. Our product is valuable by itself.

•  PlaWorms •  Massive shih of business caused by the internet (youtube, wikipedia, airbnb) •  Users create and consume value •  Different business models from pipes •  Need to build up with producers and consumers in mind •  Our users interact with each other, using so/ware we create. Our product has

no value unless users use it.

Source: Sangeet Paul Choudary www.wired.com

From Pipes to PlaWorms

11

Management of a project-‐based

firm

One firm

Many projects

One project

Management of a project network

Management of a project-‐based firm

Many firms

Many projects

One project

Management of a business network

Management of a single project

Complexity and direct control. Koria 2012, Adapted from Ar[o et al. 2011

Nature of neworked business

12

• Originate from the natural sciences, and have many similari'es with biological ecosystems:

•  Dynamic in nature • Made up of interconnected organisms that operate in a shared environment.

•  The evolve, grow and and contract, and can be destroyed if the environment suffers dras'c changes.

• FINE, BUT: the analogy needs careful considera'on: •  In business ecosystems, actors are inteligent and able to to plan and understand the dynamics of the system.

•  The goal of business ecosystems is to deliver innova'ons (i.e. expansive growth), whereas natural ecosystems are only aiming at survival.

Ecosystems

13

Moore’s (1996) model & stages of ecosystem development

Source: Heikkilä & Kuivaniemi, 2012 Source: Rai'sto, 2013

1. Pioneering

stage

2. Expansion stage

3. Authority stage

4. Renewal stage

Ecosystem models

14

Source: Salonoja 2013 aher Isenberg 2010

Ecosystems models

15

Adaptation Investment Communities Organisations Government

Regulatory environment

Access to Finance

Physical Infrastructure

Knowledge & skills

Market information

Adapted from Gradl et al. (2008, p.44)

Top-‐down Bo[om-‐up

Top-‐do

wn

Bo[om

-‐up

Leverage own capabili&es Collaborate with other stakeholders

Innova'on ecosystem

BOTTOM UP

TOP DOWN

Hub roles in ecosystems

16



Access to Finance


Knowledge & skills

Market information



Top-‐do

wn

Bo[om

-‐up

Area of high coordina'on and advocacy needs

Innova'on ecosystem

Area of high know-‐how needs

Leverage own capabili'es Collaborate with other stakeholders

Area of best local knowledge

Hub roles in ecosystems: integra'on

17



Access to Finance


Knowledge & skills

Market information



Top-‐do

wn

Bo[om

-‐up

Innova'on ecosystem


Tendency of emerging incremental innova'on from local sources

Tendency of emerging radical, disrup've innova'on from externali'es

Hub roles in ecosystems: transla'on

18



Access to Finance


Knowledge & skills

Market information



Top-‐do

wn

Bo[om

-‐up

Area of high constraints to the use of local capabili'es

Innova'on ecosystem


Area of best local capability

Hub roles in ecosystems: expanding

19

Latent Stakeholders 1.  Dormant stakeholder; only power 2.  Discre'onary stakeholder; only legi'macy 3.  Demanding stakeholder; only urgency Expectant stakeholder 4.  Dominant stakeholder; power and legi'macy 5.  Dangerous stakeholder; power and urgency 6.  Dependent stakeholder; legi'macy and urgency Highly salient stakeholder 7.  Defini've stakeholder; all a[ributes Non-‐ stakeholder 8.  Non-‐ stakeholder; none of the a[ributes

1

3 2

45

6

7

8

Source: Mitchell, R., Agle, B., Wood, D. 1997

Stakeholder influence in ecosystems

20

SUPPORT – CULTURE - POLICY

HUMAN CAPITAL – MARKETS - FINANCE

CORE BUSINESS

KEY ACTIVITIES

OFFERING

CLIENTS

EXISTING ECOSYSTEM

SERVICE / BUSINESS MODEL

Ecosystem-‐business models-‐offering

CUSTOMER VALUE

SOCIETY 21

Day 1 Teamwork 1

Ecosystems Analysis Beirut, Lebanon, October 21st 2014

22

SeNng the Scene The par'cipants introduce themselves and agree on the ground rules for the teamwork. The group is divided into six teams. Char&ng the ecosystem The char'ng assignment of the group-‐work of the component takes the presented ecosystem model as the star'ng point. The whole group of the par'cipants works on char'ng the the same overall ecosystem. Each group analyses a specific set of elements of the innova'on ecosystem model. 1.  The first step of the exercise is to iden'fy to actors, and stakeholders of the ecosystem.

2.  The second step is to iden'fy the amtudes towards the new as indicated in the canvas. The typical ques'ons maybe altered and/or added to.

3.  At the end of the session the teams come together and present the ecosystem components to all the teams, mapping out the ecosystems through flipchart pages and post-‐its on a wide oval map on a wall of the room. The importance of the connec'ons between the key actors should be highlighted in the exercise.

4.  Before the coffee break, the overall model is reviewed to iden'fy key missing items and connec'ons.

Teamwork 1: Ecosystems Analysis

23

Exercise 1

90 minutes

24

What challenge do we want to address with the Innova'o Hub?

10 minutes

25

What challenge do we want to address? 4 x 30 seconds

26

First step: iden'fy actors and stakeholders of the ecosystem.

Second step: iden'fy the amtudes

towards the new.

15 minutes 27

NEGATIVE POSITIVE

CULTURE Is the ecosystem inward - outward looking? How do the players behave inside the ecosystem? How does the ecosystem react to disruptive innovation?

POLICY Are there feedback loops – does the government listen? What kind of leadership is the government offering? How do policies support developing new ideas?

SUPPORTS How developed is the infrastructure of the ecosystem? Are there any support professions available? Do supporting non-governmental institutions exists?

MARKETS Are players capable of networking inside and outside? What kind of customers and consumers exist? Are the markets open - closed?

HUMAN CAPITAL What kind of human resources exist in the ecosystem? How do the educational institutions support the ecosystem? How much are new ideas and entrepreneurship encouraged?

FINANCE How is the government supporting the ecosystem? Are new ways of financing enabled? How easy is it to fund emerging services / business ideas?

THE ECOSYSTEM CANVAS

28

Presenta'on of the ecosystem of your challenge.

4 x 5 minutes

29

Day 1

Component 2 Defining Value Opportunity Beirut, Lebanon, October 21st 2014

30

Workshop flow & methodology of 4D’s

Source: adopted and modified Koria 2013 from the UK Design Council

Discovering Innova'on Ecosystems

Defining Value

Opportunity

Developing Service and Business

Delivering to the Real World

Wide view on policy & system

Tight focus on applica'on &

implementa'on

Feedback through tes'ng

2 Defining Value Opportunity

1 2 3 4

31

•  Value as a central component of any business/service/product development process.

•  What is meaningful in terms of innova'on? •  Value is also always created on mul'ple levels, and we will talk about user, organiza'on/company, ecosystem, and societal levels of value crea'on.

•  Business models build up the concept of value

Introduc'on to the component Background & content

32

1.1 Towards innovation ecosystems

Add pic here the

6th Kondra'ev wave

Source: Wilenius & Kurki 2012

High end value crea'on is dependent on current cycle and the degree of the intangibility and scalability

33

Development of the value of intangible assets as a percentage of total market value of S&P 500 companies.

The intangible nature of value

Source: Harju2012 34

1.1 Towards innovation ecosystems

Past: Agricultural economy ê

Past: Industrial economy ê

Now: Experience economy ê

Emerging: Knowledge economy ê

Future: Transforma&ve economy?

Mul'ple economies

35

From products to solutions

New mindsets Industrial Economy (1950-‐ )

Experience Economy (1980-‐ )

Knowledge Economy (unfolding)

Transforma&on Economy (future)

People mindset

Cap'va'ng idea Product ownership Experience Self actualiza'on Meaningful being

View Local Global Contextual Systemic

Quest Modernizing life Explore lifestyle idenAAes

Individual empowerment

Address collec;ve issues

Effect ProducAvity + family life

Work hard play hard Develop your potenAal Meaningful contribu;on

Skills SpecializaAon ExperimentaAon CreaAvity Transforma;ve thinking

Approach Follow cultural codes Break social taboos Pursue aspiraAons Empathy & coopera;on

Business mindset

Economic drivers Mass produc'on Marke'ng & Branding Knowledge plaWorms Value networks

Focus Product funcAon Brand experience Enabling creaAvity Enhancing meaning

Quali'es Products Product-‐Service mix Enabling Open-‐tools Inclusive value networks

Value proposi'on CommodiAes Targeted Experiences Enable self-‐ development

Ethical value exchange

Approach Persuade purchase Promote Brand Lifestyle

Enable ParAcipaAon Leverage Coopera;on

Goal Profit Growth Development Transforma;on

Source: den Ouden, 2011 36

New value propositions need to:

Meaningful innova'ons: ü  Make it possible to improve quality of life in society ü  Enable ecosystems to “do good” and provide value to stakeholders ü  Provide opportunity for organisa'ons to “do well” to ensure

con'nuity ü  Offer pleasurable experience for the user, which changes

behaviour permanently And mul'ple actors needed to: ü  Jointly contribute knowledge, experience, resources ü  To deeply understand the societal issues at hand ü  To generate ideas that really solve problems

Meaningful innova'ons

37

•  Internally: –  The unexpected success, failure, outside event –  The incongruity between reality as it actually is and how it is

assumed to be –  Process needs –  Changes in the industry & market structure that catches

everyone unawares •  Externally:

–  Demographics (popula'on changes) –  Changes in percep'ons, moods and meanings –  New knowledge, both scien'fic and non-‐scien'fic

Source of innova'ons / Drucker

38

Value proposition

•  The value proposi'on and offering is why a customer chooses the firm/organiza'on instead of another

•  Its solves the customer’s problem, or sa'sfies a need •  It is the benefits that that a service / company offers ü  Designing innova've value proposi'ons can create real

advantages in both radical and incremental market and technological innova'on

Challenges with opportuni'es

39

Challenges with opportuni'es

40

Goods

Customer Interac'on

Service

New Business & PSS & Concept Innova'ons

Technology Feasibility

Human Factors Desirability

Business Viability

Design innova'on

Offering to clients from the feasibility-‐viability-‐desirability perspec've

Offering to clients from the Product-‐ Service System (PSS) perspec've

Designing the offering

41

Technology, Business & People

42

1.  Can use design thinking to make current processes and offering be[er (incremental innova'on)

2.  Needs to think “what if” (future orienta'on) 3.  Find a place for new business using design-‐driven inno

va'on (radical innova'on) 4.  Promote cross-‐func'onal (team) crea'vity in the

organiza'on (to create new offering) 5.  Need to create concurrent experiments and real 'me

feedback mechanisms (to manage ambiguity)

Management & Design Thinking

43

SUPPORT – CULTURE - POLICY

HUMAN CAPITAL – MARKETS - FINANCE

CORE BUSINESS

KEY ACTIVITIES

OFFERING

CLIENTS

EXISTING ECOSYSTEM

SERVICE / BUSINESS MODEL

Ecosystem-‐business models-‐offering

CUSTOMER VALUE

SOCIETY 44

Day 1 Teamwork 2

Crea'ng Value Beirut, Lebanon, October 21st 2014

45

The Challenge The par'cipants will form four groups and decide on a perspec've to the challenge to develop jointly. The teams will start the case study development work by idea'on and iden'fying the opportuni'es for meaningful innova'ons. The teams will develop opportunity statements. Crea&ng Value for clients Through the value framework thinking, the teams will examine how to iden'fy services that create value in the chose cases. 1.  Through an idea'on process the teams will develop a proposal for an offering

while iden'fying who this offering is meant for. 2.  At the end of the session the teams come together and present their idea of

the opportunity statement, a descrip'on of the offering and a value framework.

Teamwork 2: Crea'ng value

46

Delivering value I

•  Newness –  Sa'sfying an en'rely new set of needs through new offering, ohen technology

related •  Performance

–  Improving products or services •  Customiza'on

–  Tailoring products an services to the needs of customers (mass customiza'on, customer co-‐crea'on)

•  “gemng the job done” –  Helping the customer get things done in their own business

•  Design –  Differen'a'ng in products and services

•  Branding/status –  Crea'ng dis'nc'on through products and services

Crea'ng value 1

47

Delivering value II

•  Price –  Offering similar/superior value at the same or lower price

•  Cost reduc'on –  Helping customers to reduce their costs

•  Risk reduc'on –  Reducing risks for customers

•  Accessibility –  Making products and services available to new groups

•  Convenience/usability –  Making things easier to use

Crea'ng value 2

48

Economy Psychology Sociology Ecology

Society Wealth Wellbeing Meaningful life Livability of environment

Ecosystem Stability Shared Drivers Reciprocity in networks

Sustainability

Organiza&on Profit Core values Social responsibility

Eco-‐effecAveness

User Value for money Happiness Belonging Eco-‐footprint

Source: den Ouden, 2011

Ques'ons to answer: What is the opportunity that has been iden'fied? What is the offering that can be created to use the opportunity?

Value framework

49

Exercise 2

90 minutes

50

What opportunity can we iden'fy?

10 minutes

51

What offer can we create to use the opportunity?

10 minutes

52

What is the added value of our offer for the different stakeholders?

20 minutes

53

Presenta'on of results.

4 x 5 minutes

54

End of Day 1 Co-‐Crea'ng Innova'on Hubs Beirut, Lebanon, October 21st 2014

55

Faciliation Slides - Lebanon

Presentations & Public Speaking

Transcript of Faciliation Slides - Lebanon