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Transcript of Kanopy digital report
2013
MANAGEMENT OF INNOVATION | SATHIASIVAM S/O MUNISAMY 7E1A8408/15439547
KANOPY STREAMING
DIGITAL REPORT
Total file word count 3,443Less direct quotes 409Less tables of content 76Less reference lists 437Total net word count
Table of Contents1.0 executive summary..........................................................................................................................2
2.0Company Profile and Background....................................................................................................3
3.0 Establishing an Environment for Innovation....................................................................................4
3.1 IP Strategies.................................................................................................................................4
3.1.1Intellectual Property code......................................................................................................4
3.2 managing organisational knowledge and innovation strategies..................................................5
3.3 collaboration strategies...............................................................................................................6
4.0Implementing innovation.................................................................................................................8
4.1Managing innovation and operations management.....................................................................8
4.2New product development...........................................................................................................9
5.0 Questions Form the CEO................................................................................................................11
5.1 question 1..................................................................................................................................11
5.2 Question 2.................................................................................................................................11
6.0 conclusion & recommendation......................................................................................................12
7.0 References list...............................................................................................................................13
8.0 Appendix........................................................................................................................................16
1.0 executive summary Kanopy was founded in the year 2007 by Olivia Humphrey. Kanopy was described as a
Netflix of the education sector. Kanopy is a leading global supplier of educational DVD and
online video content. According to Olivia Humphrey the most relevant to Kanopy streaming
service was the ‘intellectual property code’. Moreover, she has developed the knowledge base
of Kanopy through her experiences and believes experiences are also her strength to develop
her company better. In the collaborative strategy, she has cleverly planned to collaborate with
the Media Education sector and these have profited her in term of monetary and large
customer base. Kanopy also has identified that the United States is very active in innovation
and there is good potential to grow their business there. Hence, Kanopy has developed new
apps designed to raise student commitment in the new product development industry.
2.0Company Profile and Background
Kanopy was “founded in the year 2007 by Olivia Humphrey the managing director” (Kostoka
2013). Kanopy is described as a Netflix of the education sector. Kanopy is “a leading global
supplier of educational DVD and online video content” (Kanopy streaming 2013). They
provide stream videos and tapes to university libraries in Australia. Currently, Kanopy is
going global and has also expanded into Asia pacific region (Kanopy streaming 2013). They
have more customers in the United States rather than the rest of the world combined. Olivia
Humphrey has been awarded the ‘2012 WA Innovator of the Year Award ’ under the
Mitsubishi Growth Category and the ‘WA 2012 Commonwealth Bank Business Owner
Award ’ for the Telstra business women award.
Olivia Humphrey graduated as a psychologist from the ‘University of New
South Wales’ but later she decided not to be a psychologist. She moved over to London and
started her media management career in ‘BBC World Wide’. She also was marketing
‘Teletubbies’ and managed ‘Hi5’ worldwide and globally. Hence, BBC World Wide has
entered into the road show entertainment and she was the marketing manager. Olivia
Humphrey noticed that even though streaming video sites “similar to YouTube were very
famous with tertiary students, streaming tools weren’t being used to their complete potential
in the academic area” (Smarter business ideas 2012). In the past she saw many of the students
studying the similar topic and they would need to fight for the only library’s copy of a DVD.
When she entered Kanopy, the mission was “easy access of learning materials through
generating an exclusive website for all organization where altogether their online audio-
visual content would remain in one place” (Smarter business ideas 2012). Moreover, Kanopy
have identified great partners with some of the world’s most inspired filmmakers and
appreciated suppliers, presenting tertiary organizations entrance to an ever-growing library in
excess of 15,000 videos through diverse content areas such as teacher education, architecture,
culture and politics in media, health and safety. The vision of the company will be “to change
the way students learn through the power of video”. The vision is the heart of doing anything
in the service of Kanopy (Smarter business ideas 2012).
However, the timeline of Olivia Humphrey’s path towards commercialization of her
innovation has been illustrated in the figure 3.
3.0 Establishing an Environment for Innovation
3.1 IP Strategies
Intellectual property is defined as the “authorised right which outcome from
intelligent activity in the manufacturing, technical, fictional and imaginative fields” (WIPO
publication 2003). The ‘intellectual property’ is a category of distinct laws which is the
copyright, patents, trademarks, designs and etc (Bently 2012).
3.1.1Intellectual Property code
According to Olivia Humphrey the most relevant to Kanopy streaming service was the
‘intellectual property code’. The intellectual property code can be described as “the
requirements of this ‘Code’ will look after the rights of authors in all activities of the mind,
form of expression, whatever their kind, purpose or merit” (WIPO publication 2003). The
following, in specific, will be considered activities of the mind within the meaning of this
Code. For example, “cinematographic activities and other activities containing of orders of
moving pictures, with or without sound, together referred to as audio-visual activities”
(WIPO publication 2003).
Most of the innovation comes to the business platform is based on this code. For every
application that is quite sensational and Kanopy thinks that it is also their competitive
advantage. Then they have the choice to pay for it and no one else can use the code. The
problem is by patenting it, all the Kanopy competitors will access to our code. Which will
make Kanopy proud, but it will eventually create a very competitive environment. The
competitors also can access to the information of how Kanopy is doing their work. So,
anyone can actually create the same application that Kanopy has and if they are not using the
exact code that Kanopy have, then it is not a breach. In terms of the copyrighting the code, it
is very difficult thing to be done and timely expensive according to Olivia Humphrey.
However, Olivia Humphrey is in the right track because she has overcomed this issue by
continuous upgrading the code every month; So that, the code will be obsolete by the time it
can be patented.
3.2 managing organisational knowledge and innovation strategies
“Knowledge management, guides and improves organisational judgements as to how, when,
and where to generate and account for fresh knowledge” (Egbu, Hari and Renukappa 2005).
It helps training, education, on-the-job experience and technical refreshment. “Core abilities
and competencies are challenging to copy as well as deliver good benefit for the businesses”
(Egbu 2004).
Kanopy is a business which has a core competence by ‘low imitability’ whereby according to
the figure 4 it can remain positioned in the uppermost right hand quadrant. According to
Olivia Humphrey, she has developed the knowledge base of Kanopy through her experiences.
She also believes that her experiences are also her strength to develop Kanopy better. For
example, the experience in the media rights management, customer service and CRM, mass
market channel which is one of her big strength and also has great knowledge about
marketing because her background is about marketing as well. She has built the ‘cloud
operational systems’, where all the data or information is stored in the clouds so anyone,
anywhere can see anything, anytime. They also have intense training for the staff, where even
the staffs themself feel that the training is very intense and made complaints to the
management. In addition, these trainings also done so that every staff member is familiar with
every aspect of the business as that’s how they can add value to the business as a whole. They
don’t have meetings everyday but they have decided to have meeting every Tuesday and
Friday in a week. The meetings are compulsory for all the members because it will keep
everyone in the organization updated.
An absorptive capacity defines as “the capability of a business to identify the importance of
fresh, external evidence, integrate it, and relate it to profitable ends” (Volberda,Foss and
Lyles 2010). However, Olivia Humphrey has not used this absorptive capacity completely in
the Kanopy organization but it will be very helpful for Kanopy if they can adapt to the
characteristic that have been mentioned above.
3.3 collaboration strategies
The collaboration strategy can be defined as “the joint determination of the visualisation and
lasting collaborative objectives for identifying a given social difficulties, along with the
agreement of both organizational and joint courses of action as well as the distribution of
materials to carry out these courses of action” (Clarke and Fuller 2010). In addition,
collaborative strategy also explains about the importance of an organizational strategy that
balances social, monetary values and environmental.
According to Olivia Humphrey, she finds collaboration strategy is a very interesting element
in the business environment and she has also decided to collaborate with many international
media corporations. So, she was planning on how to get 400,000 customers in US with no
mediate financing. She made a clever decision by selecting their supplier which is the ‘Media
Education Foundation’ for collaboration. The Media Education Foundation is a company
based just outside Boston which has a fabulous collection of critical analysis of media. They
have created a very great brand image in Australia and particularly in USA which is their
home market. In the process of approaching MEF to launch Kanopy streaming service in
USA, Olivia Humphrey has mentioned that Kanopy have the Asia Pacific rights and they are
also performing well in the market. Media Education Foundation who is the leading company
in this market, questioned Kanopy, why would they simply provide rights to Kanopy. Hence,
Kanopy came out with an idea, whereby to provide their digital training platform to MEF and
in return obtain customers from them. In order to have a digital platform it will cost MEF
more than 100,000 of dollars. Hence, the deal that was proposed was considered good for
MEF.
According to Alvarez and Barney, “entrepreneurial companies are most at danger of being
occupied benefit of by big agreement partners when the only material they bring to these
agreements is a new technology” (Alvarez and Barney 2001). However, there are two things
happen in this setting. Mainly, to the degree that this new technology has market possible, the
large cooperation is regularly capable to understand this possible. Subsequently,
entrepreneurial companies in these agreements are frequently not capable to develop and
grow, even if their technology has important market potential. Therefore, while these
agreements often generate financial value, most of this value is adopted by the large
cooperation (Alvarez and Barney 2001).
4.0Implementing innovation
4.1Managing innovation and operations management
Innovation can be defined as “ an essential procedure concerned through reintroducing what
the business offers and the techniques in which it produces and delivers these” (De waal,
Maritz and Jen sheih 2010) .
The Pearson’s uncertainty map (Pearson, 1991) delivers an outline for examining and
understanding uncertainty and the innovation process. Therefore, Pearson’s structure divides
uncertainty into separate dimensions which is uncertainty about ends (what is the ultimate
objective of the action or scheme) and uncertainty about means (how to attain this objective).
Pearson's structure, presented in Figure 5, addresses the nature of the uncertainty as well as
the method it changes over time. The structure is created on “the dual dimensions deliberated
above, by uncertainty about ends on the vertical axis and uncertainty about means on the
horizontal axis” (Trott 2012). These battle-axes are then divided, giving four quadrants.
The first quadrant represents activities involving a high degree of uncertainty about means
and ends. The ultimate target is not clearly defined and how to achieve this target is also not
clear. In the area of second quadrant the end or target are clear. For example, a commercial
opportunity may have been identified but as yet the means of fulfilling this has yet to be
established. The third quadrant is uncertainty regarding ends. For example, to discover how
the technology can be most effectively used. The final fourth quadrant is the most similar to
Kanopy streaming services. The fourth quadrant covers “innovative events where there is
most certainty” (Trott 2012). Kanopy have identified that the United States is covering the
innovative activities and has the most certainty to grow their business better. In addition,
Olivia has mentioned that when the last time she went to the United State she got a lot of
interesting opportunities. For instance, she got new agents and alliances of online textbook
company as well as some academies. These show that Kanopy is also creating new services
through the combination of the United States market opportunities and their technical
capabilities.
Based on figure 6 the organisational characteristic that facilitates the innovation process of
Kanopy is growth orientation. The growth orientation can be described as “a commitment to
long term rather than short term profit” (Trott 2012). For example, Olivia has mentioned in
the presentation that Kanopy is also focusing on long-term vision, which is, they want their
videos to be really an integral part of tertiary curriculum. They also want to be recognised as
adding a level of depth to learning and generation of a Kanopy ‘community’ through the
social media. The second characteristic that facilitates them is vigilance and external links
which is the “ability of the organisation to be aware of its threats and opportunities” (Trott
2012). For instance, the new idea or opportunities of Kanopy is to talk with their customer
about what they want to obtain from Kanopy; such as the student circle, libraries and
academics.
4.2New product development
“In an increasingly competitive global environment, some successful firms must be able to
expand their knowledge base and develop new skills,” (Yang and Yu 2002). Moreover, the
firms fail to realize it will be left behind and according to history the leading firms don’t
sustain more than one generation.
So, the importance of a new product development (NPD) has developed intensely over the
past few years, and currently it is the leading driver of competition in many businesses
(Schilling and Hill 1998). NPD progression might be observed as a sequence of “actions, idea
generation, product development and product commercialization” (Yang and Yu 2002). The
new product development is one of the ways to strengthen the business growth and the
perfect methods of classifying the variety of growth options accessible to a corporate is using
Ansoff’s (1965,1968) directional policy matrix. In the interior of this Matrix NPD is
understood as one of four obtainable selections which are the market penetration strategy,
market development strategy, product development strategy and diversification strategy. The
four cells consider various combination of Product market option. The growth can be
achieved through external acquisition and internal development. In this situation, Kanopy has
developed new apps designed to raise student commitment, assist in teaching and curation,
and besides add level of gravity to watching the experience.
Therefore, they are using the new product in the current market whereby it is called the
product development strategy. Product development encounters “diverse consumer
requirements in a different technique it is less likely to use current competitive benefit than
market development” (Taylor 2012).
There are many businesses, particularly small professional industrial businesses, which
remain to operate a craftsman style method to product development. Hence, decision-stage
model symbolizes the “new product development procedure as a sequence of judgment that
essential to be occupied in order to develop the project” (Trott 2012). A goal can’t be attained
without receiving proper feedback from a task that has been completed. Besides, if the
requirement of feedback loops is acknowledged, the element of ‘information exchange’ as an
essential component of NPD flows naturally (Hart and Baker 1994). In this case Kanopy has
created their NPD by empowering the student to define their needs and wants to preview the
requests as well as the Patron Driven Demand.
The next activity in the process of NPD is the generation of business opportunities. It is a
process that can create business opportunities and lead the business to become successful. As
illustrated in figure 8 there many sources can be emerging in creating new product ideas. One
of the sources that Kanopy has used in the organization is brainstorming. However, Olivia
has mentioned in the presentation that they are doing some brainstorming session in the
organization to create new ideas and do product development.
5.0 Questions Form the CEO
5.1 question 1
Kanopy streaming service can continue to innovate to preserve the trajectory of being true
game-changers by the multi partner alliances because great innovations rarely originate from
a single individual or firm only. So, Kanopy have to find more contacts of companies and
customers in the other countries as well. They also shouldn’t focus the United States only
because if there is a downturn in the economic condition of United States, it will directly
affect the Kanopy relationship with their alliances in United State. However, if they would
consider making alliances with other countries, they might get more new ideas and
opportunities to develop their current products and services. While much research in
collaborative innovation assumes consistently available benefits and an exogenously
determined appropriation of these benefits, this study assumes heterogeneity and explores the
degree to which benefits may be endogenously determined (Brown 2010).
Kanopy also should strengthen the connection with supplier and customers to classify target
providers and clients for new delivery system. For example, they should create more effective
delivery process of the requested video to deliver it as fast as possible to sustain the
competitive advantage. Hence, they improve relationship with key supplier and buyers of
kanopy to cushion competitor imitation (Mascarenhas et al. 2002).
5.2 Question 2
Some of the challenges Kanopy will face in scaling up globally are challenging in the
international marketplace essential to internationally introduce innovative products, services
and processes quickly and efficiently. Kanopy also might face challenges in sustaining their
competitive advantage because if Kanopy don’t sustain it then they might lose their
customers and suppliers. However, kanopy will go through challenges in terms of technology
information to accelerate and increase the innovation production (Fallah and Lechler n.d).
6.0 conclusion & recommendation
In conclusion, Kanopy has the most unique business in the Western Australia. So, as
managing director of Kanopy, Olivia Humphrey has sustained their competitive advantage by
implementing the perfect intellectual property code in their business. They have well
expanded their business globally to achieve more customers and profit. However, Olivia
Humphrey has managed the business very systematically. She also implements the relevant
strategies in a business to have more commitment and good relationship among the
employees.
I would like to recommend Kanopy to focus the customers’ needs and to serve them better.
They also should keep theirs customers details; such as, the date of birth and send the wishes
in the email. This will eventually make the customer to feel pleased, and this might attract
more customers. As we all know, a company that cares customers will definitely succeed.
7.0 References list
Alvarez, Sharon A. and Jay B. Barney. 2001. "How Entrepreneurial Firms can Benefit from
Alliances with Large Partners." The Academy of Management Executive 15 (1): 139-
148. http://search.proquest.com/docview/210522005?accountid=10382
Bently, Lionel. 2012. "What is "Intellectual Property"?" The Cambridge Law Journal 71 (3):
501-505. doi:http://dx.doi.org/10.1017/S0008197312000797.
http://search.proquest.com/docview/1205329084?accountid=10382.
Brown, Kory Dee. 2010. "Differential Benefits to Firms Participating in Multipartner
Collaborative Innovation."The University of Utah.
http://search.proquest.com/docview/845929404?accountid=10382.
Clarke, Amelia and Mark Fuller. 2010. "Collaborative Strategic Management: Strategy
Formulation and Implementation by Multi-Organizational Cross-Sector Social
Partnerships." Journal of Business Ethics 94: 85-101.
doi:http://dx.doi.org/10.1007/s10551-011-0781-5.
http://search.proquest.com/docview/858921402?accountid=10382
De Waal, Anton, Alex Maritz, and Chich Jen Shieh. 2010. "Managing Innovation: A
Typology of Theories and Practice-Based Implications for New Zealand
Firms." International Journal of Organizational Innovation (Online) 3 (2): 35-57.
http://search.proquest.com/docview/763161472?accountid=10382
Egbu, Charles O., Subashini Hari, and Suresh H. Renukappa. 2005. "Knowledge
Management for Sustainable Competitiveness in Small and Medium Surveying
Practices." Structural Survey 23 (1): 7-21.
http://search.proquest.com/docview/216607230?accountid=10382
Egbu, Charles O. 2004. "Managing Knowledge and Intellectual Capital for Improved
Organizational Innovations in the Construction Industry: An Examination of Critical
Success Factors." Engineering, Construction and Architectural Management 11 (5):
301-315. http://search.proquest.com/docview/218647425?accountid=10382
Fallah, M. Hosein, and Thomas G. Lechler. "Global Innovation Performance: Strategic
Challenges for Multinational Corporations." Journal of Engineering and Technology
Management 25, no. 1–2 (3// 2008): 58-74.
Hart, Susan J. and Michael J. Baker. 1994. "The Multiple Convergent Processing Model of
New Product Development." International Marketing Review 11 (1): 77-77.
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Kanopy Streaming. 2013. Kanopy: Expanding Educational Horizons.
http://www.kanopystreaming.com/about-us
Kostoka, Ana. 2013. “A teaching revolution: Kanopy's Olivia Humphrey.” Women in Focus,
May 18. https://www.womeninfocus.com.au/docs/DOC-2172
Mascarenhas, Briance, Arun Kumaraswamy, Diana Day, and Alok Baveja. 2002. "Five
Strategies for Rapid Firm Growth and how to Implement them." Managerial and
Decision Economics 23 (4): 317-330.
http://search.proquest.com/docview/206614268?accountid=10382
Schilling, Melissa A. and Charles W. L. Hill. 1998. "Managing the New Product
Development Process: Strategic Imperatives." The Academy of Management
Executive 12 (3): 67-81. http://search.proquest.com/docview/210530183?
accountid=10382
Smarter Business Ideas. 2012. How Kanopy Became 'The YouTube Of The Education
Sector'. http://smarter.telstrabusiness.com/awards/how-kanopy-became-the-youtube-
of-the-education-sector.htm
Taylor, Edward C. 2012. "Competitive Improvement Planning: Using Ansoff's Matrix with
Abell's Model to Inform the Strategic Management Process." Allied Academies
International Conference.Academy of Strategic Management.Proceedings 11 (1):
21-27. http://search.proquest.com/docview/1272101639?accountid=10382
Trott, Paul. 2012, Innovation management and new product development, 5th edn., Pearson
Education Limited, Essex, England.
Volberda, Henk W., Nicolai J. Foss, and Marjorie A. Lyles. 2010. "Absorbing the Concept of
Absorptive Capacity: How to Realize its Potential in the Organization
Field." Organization Science 21 (4): 931-954.
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WIPO publication.2003. Intellectual property code. http://www.wipo.int/wipolex/en/text.jsp?
file_id=180336
WIPO publication. 2008. WIPO intellectual property handbook.
http://www.wipo.int/export/sites/www/freepublications/en/intproperty/489/
wipo_pub_489.pdf
Yang, Jie and Liming Yu. 2002. "Electronic New Product Development - a Conceptual
Framework." Industrial Management + Data Systems 102 (3): 218-225.
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8.0 Appendix
Figure 1 WA Innovator of the Year Award
Figure 2 Commonwealth Bank Business Owner Award
Figure 3 Timeline of Olivia's Path to commercialization of her innovation
Figure 4 core competencies, imitability and profits
Low
High
Imitability
Non-core Core
Extent of coreness
Figure 5 Pearson's Uncertainty Map
High
HighLow
Uncertainty about output (the ends)
Uncertainty about process (the means)
Figure 6 The organisational characteristic that facilitates the innovation process.
Figure 7 Ansoff's Directional Policy Matrix (Trott 2012)
New product
Current Products
Current Markets
New Markets
Generation of business opportunities
Competitors’ products &
reverse engineering
Unexploited patent
Technology
Individual
Existing product Customers
and vendors
Senior and top managementBrainstorming &
synectics
Figure 8 source of business opportunity