Systemic Character ofInnovationDr.MScBertSadowskiTechnische UniversiteitTUeEindhovenUniversity of TechnologyWhere innovation starts
Systemic Character of Innovation Dr. MSc Bert Sadowski
StructureConceptof co-creation:Usingsocial mediaSystemicTechnologiesCharacteristicsofSystemicTechnologiesEco-systemsSectoralSystems ofInnovationTechnischeUniversiteitTUEindhoveneUniversity of TechnologyPAGE110/7/2013EcononomicsofInnovation2013
Structure • Concept of co-creation: Using social media • Systemic Technologies • Characteristics of Systemic Technologies • Eco-systems • Sectoral Systems of Innovation Econonomics of Innovation 2013 10/7/2013 PAGE 1
Social mediaandtheHEFUTUREDconcept of co-creationCo-Crealinn UninueVaine with CasinmersC.K.PRAHALALPrahalad&Krishnan(2006)SocialMedia>FunctionLookatnatureof multi-nationalfirm,detectlimitations:Facebook>PersonalLocal experience important:ValueisshiftingfromTwitter > Socialproducts to solutions to experiences (global and local Linked-in > Businessexperiences converge)YouTube >SocialNo company has all resources it needs to create uniquepersonalized experiences (need to accesstotalent,etc.)InternalmanagementsystemtooinflexibleResourcesmustbecontinuallyreconfiguredSpecific models must be configured toenableorganizations tofocus on one consumerNewfunction of social media like Twitter,Facebooktoinvolveusers ininnovationprocessTechnische UniversiteitTUEindhovenUniversity ofTechnologyGoverning10/7/2013Innovations2013
Social media and the concept of co-creation • Prahalad & Krishnan (2006) • Look at nature of multi-national firm, detect limitations: − Local experience important: Value is shifting from products to solutions to experiences (global and local experiences converge) − No company has all resources it needs to create unique personalized experiences (need to access to talent, etc.) − Internal management system too inflexible − Resources must be continually reconfigured • Specific models must be configured to enable organizations to focus on one consumer • New function of social media like Twitter, Facebook to involve users in innovation process 10/7/2013 Governing Innovations 2013 2 Social Media > Function Facebook > Personal Twitter > Social Linked-in > Business YouTube > Social
Tapscott,D.&Williams,A.(2006)Wikinomics:How Mass CollaborationsNewpromiseof masscollaboration">morecollectiveknowledge,capabilityand resourcesembeddedinhorizontalsocial networks(moreWIKINOMICSthan individual firm)How Mass CollabornazionChontges.Everyriing-Example:Toronto-basedgold miningcorporationeDon TapscaftNewPrinciples(differentfromtraditionalmaAnthonyDWiliamseconomics):-“BeingOpen":candor,transparency,freedom,flexibility-“Peering"(Linuxexample)“Sharing"(vs.IPprotection)-“Acting globally"Technische UniversiteitTUEindhovenUniversityofTechnologyPAGE310/7/2013EcononomicsofInnovation2013
Tapscott, D. & Williams, A. (2006) “Wikinomics: How Mass Collaborations Changes Everything” • New promise of mass collaboration”> more collective knowledge, capability and resources embedded in horizontal social networks (more than individual firm) − Example: Toronto-based gold mining corporation • New Principles (different from traditional economics): − “Being Open”: candor, transparency, freedom, flexibility − “Peering”(Linux example) − “Sharing” (vs. IP protection) − “Acting globally” Econonomics of Innovation 2013 10/7/2013 PAGE 3
Usage of Co-creationchallengesWww.mindhoven.nleindhouen.nlQA国O4stadwerkpleinnieuwsnameanteinwonerspleinondernemerspleinmiineindhovenbeleid+home+gemeente,co-creatiezoekCo-creatie Maak 't meeContactNaarhetDigitaal Loket>>Op welke manier moet de gemeente in de toekomst communiceren? Om te horen hoe inwoners enandere belangstellenden hierover denken, schreef de oemeente een uitdaging uit om samen ideeen teTelefoonontwikkelent een co-creatiechallenge.Deze challengeheeft4sideeen opgeleverd metmeerdan2oo14040reactiestEen juryheeft daar de vijf beste ideeen uit.geselecteerd,die vervolgens verderzijnVanuithetbuitenlandofvia enkeleuitgewerkt.internetproviders belt utDaarna was het de beurt aan de inwoners, die uit deze vijf uitgewerkte ideeen via deze site konden(040)238.6000stemmen op hun favoriete idee. Het thema met de meeste stemmen ontvangt de publieksprijsBezockadres:In totaal is er 427 keer gestemd.De publieksprijs is met ruime meerderheid (173 stemmen)Stadskantoor,Stadhuisplein1oaewonnen door de inzenders van het idee Interaction on the Spot. De inzenders ("InnovationQeens"S611 EM EindhovenRianneWolters, Lisanne Saes en Carlijn Aalbers)zullen doorgemeentesecretaris uitgenodigd wordenrouteomdeprijsin.ontvangstte.nemen.Postadres:>> De uitsiag op een rii:Postbus90150,5600RBEindhovenaantal stemmen:thema:ofstuureene-mai1.173Interactiononthe Spot2.94Gerichteberichtgeving3.81ForumEindhoven.nl4.52Gemeenteaeld uitgeven5.B&Wtv27De resultaten van de challenge gebruikt de gemeente Eindhoven als input voor een plan voor dedoorontwikkeling van digitale,interactievecommunicatiemiddelen.Technische UniversiteitTUEindhoven.-University of Technology10/7/2013PAGE4EcononomicsofInnovation2013
Usage of Co-creation challenges Econonomics of Innovation 2013 10/7/2013 PAGE 4 Www.mindhoven.nl
Function of social mediaininnovationprocessUserscanbecomeproducersofknowledgelexperience. Customer develops an idea and takes the initiative totransferittointerestedproducerUsermoreactive role in innovation processes (proactiveinvolvement of users)Usersbecomeco-producersofproducts,services,orvaluein general Other functions Twitter: # trending topics, interaction withotherusers,DMfunctionTechnische UniversiteitTUEindhovenUniversityof TechnologyPAGE510/7/2013EcononomicsofInnovation2013
Function of social media in innovation process • Users can become producers of knowledge / experience • Customer develops an idea and takes the initiative to transfer it to interested producer • User more active role in innovation processes (proactive involvement of users) • Users become co-producers of products, services, or value in general • Other functions Twitter: # trending topics, interaction with other users, DM function Econonomics of Innovation 2013 10/7/2013 PAGE 5
SectoralSystemofInnovation:ExampleofI-PhoneTechnische UniversiteitTUEindhoveneUniversityofTechnology10/7/2013PAGE6EcononomicsofInnovation2013
Sectoral System of Innovation: Example of I-Phone Econonomics of Innovation 2013 10/7/2013 PAGE 6
Smart Phone market (2006-2008)Table 2Global smartphonemarket share,2006-2008PlatformVendor2006 (%)2007 (%)2008 (%)6763.552.4SymbianNkiaonyssn,o7BlackBerry9.616.6Research in Motion1412.211.8WindowsHTC,others2.78.2iPhoneApple69.68.1LinuxMotorola,others5Palm OSPalm1.41.811.01.1Other100Total100100Annual total64.1 million122.3million139.3millionSources: Adapted from Canalys (2007) and Gartner (2009)" Indludes Android.Source:West&Mace,2010TechnischeUniversiteitTUEindhoveneUniversity of TechnologyEcononomicsofInnovation201310/7/2013PAGE7
Smart Phone market (2006 -2008) Econonomics of Innovation 2013 10/7/2013 PAGE 7 Source: West & Mace, 2010
I-PhoneSteveJobsintroducingtheI-Phone2o07http:l/www.youtube.com/watch?v=x7qPAY9JqE4What kind of different industriesare combinedinanI-Phone?Whatkindof differentdynamicsdothese industrieshave?HowdidApple'sl-Phonerevolutionizetheseindustries?TechnischeUniversiteitTUEindhovenUniversity of TechnologyPAGE810/7/2013EcononomicsofInnovation2013
I-Phone • Steve Jobs introducing the I-Phone 2007 • http://www.youtube.com/watch?v=x7qPAY9JqE4 • What kind of different industries are combined in an I-Phone? • What kind of different dynamics do these industries have? • How did Apple’s I-Phone revolutionize these industries? Econonomics of Innovation 2013 10/7/2013 PAGE 8
SystemictechnologiesanddynamiccapabilitiesofthefirmTechnischeUniversiteitTUeEindhovenUniversity of Technology10/7/2013PAGE9EcononomicsofInnovation2013
Systemic technologies and dynamic capabilities of the firm Econonomics of Innovation 2013 10/7/2013 PAGE 9