Managing Innovation & Entrepreneurship Introduction AGENDA z z z z z Introductions Definitions & motivations Goals for the course Course outline Course deliverables A pause for definitions: z Invention An object, process, or technique which displays an element of novelty Technological innovation? A Working Definition Innovation is the entire process by which an organization generates creative new technological ideas (invention) and converts them into novel, useful and viable commercial products, services, and business practices for (potential) economic gain Who Cares? 2006 6.5% 21.5% 28.0% 31.6% 40% advantage lies in the ability to create an economy driven not by cost efficiencies but by ideas and intellectual know-how” (HBR 2007) National Leaders - “economic growth comes from effectively linking the twin powers of the competitive market & the scientific method” (Romer, 2004) 2005 18.1% z Top managers & entrepreneurs - “competitive 47.4% z Where does innovation rank among your company's strategic priorities for 2006? Top 3 Top priority Data: Boston consulting group Top 10 6.9% z Not on the list What are the key innovation challenges (BCG Survey 2006) If you are not completely satisfied with the return on your investments in innovation, what are the obstacles you face? Development times too long 32% 28% Lack of coordination 26% Risk-averse culture 25% Limited customer insight 21% Selecting the right ideas 21% No good way to measure 18% Not enough great ideas 18% Marketing or communication 17% Insufficient Sr. management support Data: Boston consulting group 9% In-market performance is below expectations 8% Competitors are more innovative Goals for a Course on Managing Innovation z z z z Provide the industrial & strategic context for managing technological innovation (Classes 1 & 2) Analyze the foundations you need to design & build teams, organizations & strategies that are more effective at technological innovation (MODULES 1-3) Focus on how these challenges arise in established firms facing “disruption” (MODULE 4) Provide knowledge & skills to go into a firm and diagnose its innovation challenges & to organize your own innovative projects (iTeams, eLab, 100k) Course Organization Markets Technologies Exploring Innovations Executing Innovations Exploiting Innovations Key processes Key organizational choices Key strategic choices Managing exploration, executing & exploitation in periods of disruption Your Responsibilities Deliverables z Class participation (50%) z z z z Assignments (40%) z z z z z Attendance (don’t miss more than 3 classes) In-class discussion Blogging related to assignments Three assignments – one each for modules 1-3 Teams of 3 Short memos based on “live” interviews in local firms around module themes Basis for the MIT Server-based blogging (using Forums on the MIT Server) Final Assignment (10%) z Individual reflections on module 4– 3 pages