Strategic Innovation Capita Selecta

1. Strategic InnovationCapita Selecta Dr Hugo Velthuijsen, lector New Business & ICT

2. Position Professor Business & IT Leading Professor Center for Applied Research and Innovation on Entrepreneurship Education M. Sc. Mathematics Ph.D. Computer Science/Artificial Intelligence Experience 11 yrs research & development in The Netherlands and the USA 3 yrs Sales @ ICT company 8 yrs business management ICT company 4 yrs professor @ Hanze University of Applied Science Dr Hugo Velthuijsen Introduction Center of Applied Research & Innovation: Entrepreneurship 2

3. Intrapreneurship inside KPN The biggest company turnaround in The Netherlands • 8 yrs of continuouschangeafternearbankruptcy • Approx. 10.000 layoffs (>30%) • Crisis as a means to an end • Quarterlyresultson target without fail • Strong in financialresults, challenge in innovative power Center of Applied Research & Innovation: Entrepreneurship 3

4. Entrepreneurship vs Intrapreneurship Who would you rather like to be? Center of Applied Research & Innovation: Entrepreneurship 4

5. Leadership vs Management Center of Applied Research & Innovation: Entrepreneurship

6. NOT: a great idea to start the company NOT: charismatic leaders NOT: maximising profits NOT: “correct” core values NOT: only constant is change NOT: play it safe (BHAGs) NOT: great places to work for everyone NOT: briljant and complex strategic planning NOT: change from without NOT: focus on beating the competition NOT: “tyranny of the OR” NOT: through vision statements The Classics (1) Visionary companies Center of Applied Research & Innovation: Entrepreneurship 6

7. Level 5 leadership: personal humility and professional will First who, then what Face facts Passion + world class ability + business model Culture of discipline + entrepreneurship Technology accelerators Flywheel The Classics (2) Overcoming mediocraty Center of Applied Research & Innovation: Entrepreneurship 7

8. The Classics (3) Crawford model – choose in which to excel Recipe for success: Dominate with 1 attribute; differentiate with a 2nd, operate at par with the rest (from: “The myth of Excellence”, Crawford & Mathews, 2001) New Business & ICT

9. Canvas model 9 pieces to the puzzle All parts need to fit and to support each other The classics (4) Understanding your business Center of Applied Research & Innovation: Entrepreneurship 9

10. Opposition will be there Pre-empt opposition Look for lowest common multiple instead of greatest common divisor Strategisch Omgevingsmanagement New Business & ICT

11. China, India, fomer Soviet Union 3bn new capitalists India: 400.000 new IT bachelors graduate every year Better educated, more eager Seamless collaboration thanks to New IT / Web 2.0 / Broadband The Network Economy Extreme competition New Business & ICT

12. N = 1 R = G The Network Economy The power shifts to the customer New Business & ICT

13. Market development New Business & ICT

14. Marktbenadering Het echte wonder van Apple en Steve Jobs 3-1-2020 New Business & ICT 14

15. Work hard or work smart The10.000 hour rule Timing is key Gates & Jobs became experts by chance Gates & Jobs came at the right time Inspiration or perspiratieon Center of Applied Research & Innovation: Entrepreneurship 15

16. Marktbenadering Apple is het schoolvoorbeeld van een heart brand Simon Sinek: the golden circle 3-1-2020 New Business & ICT 16

17. Understanding customers and what the want, even before they know it Mastery of marketdynamics Acumen of a poker champ Commitment to excellence Brutalrejection of “goodenough” Accountabilitywhenthings go wrong Charisma thatmake product launches as exciting as a Bruce Springsteen show “Ifanybody’sgoing to makeourproducts obsolete, I want it to beus.” Steve Jobs, The Perfect CEO Wired, October 2011 Center of Applied Research & Innovation: Entrepreneurship

18. IJdel Gierig Jaloers Gulzig Wraakzuchtig Van de zeven hoofdzonden scoort Jobs er vijf Technisch weekblad, 22 oktober 2011 Center of Applied Research & Innovation: Entrepreneurship

19. Leiderschapsstijl Steve Jobs Inspirator of dictator Center of Applied Research & Innovation: Entrepreneurship 19

20. The Network Economy Evolution of supporting tools

21. Production Marketing & Credibility Sales Distribution Business Model Example Music industry The internet has the power to destroy The internet as the great equalizer Source: David Byrne (Talking Heads) in Wired New Business & ICT

22. Thanks to the internet: Smaller markets become addressable Lower marketing & distribution costs More choice Niches are getting more important • Results in: • Decline in “best sellers” • More items • Higher total volume • Market growth New Business & ICT

23. Nothing in life is free… • Free mobile • Free CD Radiohead • Free demo software • Free web service • Free club entrance • Free drugs • Free google search New Business & ICT

24. 14 yrs young Ambition: to make available all information on Earth Business model defined after 5 years Market capitalization is starting to equal Microsoft’s New common enemy (used to be MicroSoft) More recent innovations through acquisitions Google Earth Gmail Etc. An example New Business New Business & ICT

25. The Network Economy Transaction costs have changed 18.02 • Mid-30s: Big organisationsexist to minimizetransactioncosts (Ronald Coarse) • Now: transactioncosts are muchlower • Cost of overhead and bureaucracymuchless offset In the Next Industrial Revo-lution, Atoms Are the New Bits

26. The Network Economy Traditional way of doing business is changing The IT industry is leading

27. The Network Economy Changing the relationship of businesses with their customers • Customers: • are betterinformedaboutyou • are betterinformedaboutcompetitors • are betterinformedabouttheirownpreferences • are global • have more choice • expectbetter service • are easier to communicatewith

28. The impact of social media Unstoppable force and powerful new tool kit Center of Applied Research & Innovation: Entrepreneurship 28

29. The Network Economy Social networks organising citizen participation into a 7th power? • Trias Politica • Legislative • Executive • Judiciary • Threeadditionalpowers • Civil service • Media • Externalconsultants

30. The wisdom of crowds Business communities Social networking Integrating in business practices Solving SMEs problems? Good employees State of the art knowledge Innovative power Global sourcing Crowdsourcing New Business & ICT

31. Caveats There are more ideas outside the company than inside Profit from the ideas of others Being smarter more important than being first The whole world can help you Open innovation New Business & ICT

32. The Network Economy Some ways to exploit different forms Xxxxx(Out)sourcing Professional networks Shared innovation Xxxxxxxxx Crowd sourcing New Business & ICT

33. Adapted Kraljic model Tool for classifying systems & processes high Added value II Service management I workstation management Data centers communication low standard specific specificity

34. Thank you • Any questions? New Business & ICT