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Digital innovations that drive new business models
Dr. A.Mohammadian
Department of IT management
University of Tehran
Overview Innovation Innovation Trends IT innovation Trends IT innovation vs digital innovation changing role of the CIO business model innovation Business model components and taxonomies Workshop: Designing your business model Digital business innovations Workshop: patterns to innovate your business models
Innovation ≠ Incubator
Innovation ≠ Accelerator
Innovation ≠ Startup
Innovation ≠ Lean Anything
Innovation ≠ Open
Innovation ≠ Reorganization
Innovation ≠ Incubator
Innovation ≠ Accelerator
Innovation ≠ Startup
Innovation ≠ Café’s
These are all physical places to do innovation
Innovation ≠ Incubator
Innovation ≠ Accelerator
Innovation ≠ Startup
Innovation ≠ Café’s
These are all physical places to do innovation
Having them does not guarantee any innovation
will happen
Dr. A.Mohammadian
Innovation Development
• Places: – R&D, Engineering, Incubators, Accelerators, Open
Innovation, etc.
• Methodology: – Waterfall, Agile, Lean
• Teaching methods: – Case-studies, Mentors
• Metrics: – KPI’s, Pivots, TRL,…
• Funding – SBIR, VC, Corporate VC, M&A, Incremental, etc.
Incremental vs Radical
Incremental
Doing new things or creating new products and services
Optimizing existing processes
Radical
Complete transformation of how products or services are offered (business model innovation)
Three Levels of Innovation
Known
Unknown
Partially Known
Level of innovation is defined by whether the business model is being executed, extended or explored!
Execute
Explore
Extend
Erik Brynjolfsson (MIT Sloan economist and digital-business expert ):
The biggest driver of innovation today is Information Technology.
Digital innovation vs business model innovation
IBM: business model innovation is dependent upon information technology (IT).
CIOs and the IT organization are an integral part of the enterprise business model
valuable innovation insights from the Global CEO Study have particular relevance to CIOs and the IT organization
IBM study indicates that CEOs will continue to rely on their IT leadership to drive innovation initiatives
CIO is a critical player in a company’s business model innovation
CIOs need to go from being an enabler of the business to becoming THE business
IBM Global CEO Study Your company's next CEO would be a CIO
The CIO’s role in driving business model innovation
Deepen business understanding by leveraging componentisation techniques
Innovate the IT business model first and implement processes to run IT like a business
Implement a flexible, responsive infrastructure capable of supporting innovation initiatives.
IBM Global Technology Services September 2006, Business model innovation –the new route to competitive advantage. Part of the CIO implications series
Business Model
•Customer segment
•Value Proposition
•Customer relationship
•Channels
•Cost & revenue model
•Key Partners
•Key activities
•Key Resources
Technical Inputs
•Feasibility
•Performance
Economic Outputs
•Value
•Price
•Profit
Occurrences of the business model term
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Nasdaq
Business Models
S&P
Occurrences of the term « business model » in business and academic journals(in Business Source Premier) compared to the NASDAQ
ICT سهم کسب و کارهای مختلف در بخش
telecommunication services providers
30%
electronics manufacturers, 26%
IT equipment and systems producers
13%
IT services providers, 11%
semiconductor firms 8%
communication equipment 5%
software publishers 4%
Digital Business
3%
بخش های مختلف حسب بر ICTکسب و کار برتر 250درآمد روند
بوده اند، در حالی که بیشترین رشد درآمدها درصد دارای 31کسب و کارهای اینترنتی با رشد ساالنه درصد بوده است 10حدود ICTدر بخش های دیگر
گروه توسعه کسب و کار در فضای مجازی 38
بر ICTکسب و کار برتر 250اشتغال روند حسب بخش های مختلف
دارای بیشترین رشد اشتغال بوده انددرصد 15رشد کسب و کارهای اینترنتی با.
گروه توسعه کسب و کار در فضای مجازی 39
250میانگین درآمد ایجاد شده از هر کارمند در برحسب بخش های مختلف ICTکسب و کار برتر
925)میانگین درآمد کارکنان در کسب و کارهای اینترنتی باالتر از سایر کسب و کارهای بخش فاوا بوده است ( هزار دالر بوده است 320هزار دالر که باالتر از میانگین
گروه توسعه کسب و کار در فضای مجازی 40
توسط نقش سرمایه گذاری های صورت گرفته ICTدر کل بخش VCشرکتهای
بیلیون دالر بوده است 22حدود 2000بیشترین مقدار آن در سال
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در راه اندازی VCنقش سرمایه گذاری های صورت گرفته توسط شرکتهای کسب و کارهای اینترنتی
که نشان دهنده جذابیت این نوع )%62)بوده است 2000بیلیون دالر در سال 13.5دارای رکورد ، .سرمایه گذاری ها در این بخش نسبت به سایر بخش های فاوا می باشد
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BM innovation typology Frankenberger & Weiblen (2013):
An incremental way to create and capture value by change in one or multiple BM elements
Schneider & Spieth (2013):
Radical change with the use of opportunities in the external environment(BM taxonomies)
Dr. A.Mohammadian
The Crowds
New Funding Models
Open innovation
Business Ecosystem
Sharing Economy
Maker Movement
Disruption
Factors
Digital innovations in business worlds
Platform businesses
Long tails
Paradigm shift(TCE theory): Rethinking WORK on networks
‘Work’ has traditionally constituted value-creating activities performed within the organization. This traditional view of work is based on the fact that the
cost of interacting and coordinating workflows is much lower when carried out within the organization.
However, the rise of the internet, and more recently the cloud, brings down these coordination costs and enables value to be created outside the organization(co-creation)
How Apple's iPhone rapidly destroyed Nokia?
There are more than 1.3 million apps 25 billion download
Unlike pipes, platforms do not just create and push stuff out. They allow users to create and consume value.
http://www.slideshare.net/e27sg/echelon-2013-platform-thinking-business-model-design-by-sangeet-paul-choudary
http://www.slideshare.net/e27sg/echelon-2013-platform-thinking-business-model-design-by-sangeet-paul-choudary
References McKinsey http://www.mckinsey.com/insights/marketing_sales/five_no_regrets_moves_for_superior_customer_engagement
http://digitalinnovationtoday.com/word-of-mouth-still-most-trusted-resource-says-nielsen-implications-for-social-commerce/
http://www.mckinsey.com/insights/consumer_and_retail/how_retailers_can_keep_up_with_consumers
Intel/Autodesk/TechShop /Arduino http://www.anandtech.com/show/7387/intel-announces-galileo-quark-based-arduino-compatible-developer-board
http://gigaom.com/2013/10/10/intel-steps-up-to-help-techshop-fund-its-menlo-park-location-move/
http://www.fastcompany.com/section/most-innovative-companies-2013
http://www.huffingtonpost.com/2013/05/29/robert-scoble-google-glass_n_3354956.html?utm_hp_ref=influencers-and-innovation
http://www.fastcompany.com/section/most-innovative-companies-2013
http://www.innovationmanagement.se/2013/10/03/live-web-event-taking-open-innovation-management-one-level-up/
http://www.fastcompany.com/3019901/nike-ceo-hints-at-collaborative-future-for-fuelband
http://crowdfundbeat.com/crowdfunding-index/
http://www.wired.com/insights/2013/08/innovation-culture-and-social-technologies-getting-real-work-done/
http://www.mixprize.org/story/unleashing-inclusive-innovation
http://www.innovationmanagement.se/2013/09/19/an-industrial-process-for-driving-innovation-and-start-ups/
http://www.mixprize.org/hack/global-solutions-local-failure-overcoming-barriers-implementing-open-innovation
http://www.altimetergroup.com/2013/04/four-disruption-themes-for-business.html
http://www.wired.com/insights/2013/10/why-crowdsourcing-is-the-next-cloud-computing/?utm_content=buffer499c4&utm_source=buffer&utm_medium=twitter&utm_campaign=Buffer#!
http://www.kickstarter.com/projects/mymobilerobots/rk-1-a-wifi-arduino-mobile-robot-for-ios-and-andro?play=1&ref=search
http://www.indiegogo.com/projects/gecko-make-your-smart-phone-smarter
http://www.kickstarter.com/projects/juicetank/juicetank-the-first-ever-iphone-charger-and-case-i?ref=search
http://www.newyorker.com/reporting/2013/07/29/130729fa_fact_gawande?currentPage=all
http://www.tlnt.com/2013/02/26/how-google-is-using-people-analytics-to-completely-reinvent-hr/
http://www.digitaltrends.com/mobile/samsungs-shotgun-phone-strategy/