Faciliation Slides - Lebanon

1. Co-­‐Crea'ng
Innova'on
Hubs
Beirut,
Lebanon,
October
21st
2014
SLIDE
PACK
FOR
THE
WORKSHOP
Day
1
21
October
2014
1

2. Team
work:
objec'ves
Introduc'on
to
the
component
Objec&ves
The
workshop
has
2
objec&ves:
1. Co-­‐create
&
define
with
all
stakeholders
ac'ons
to
strengthen
the
mobile
internet
ecosystem.
2. Brainstorm
a
year
of
innova'on
ac'vi'es
among
all
stakeholders
of
the
ecosystem
to
support
job
growth
and
compe''veness.
Challenge
Create
a
mobile
internet
innova'on
ecosystem
concept
that
supports
technology
startups
and
entrepreneurs
to
create
real
&
tangible
value
in
terms
of
jobs
&
growth.
This
means
that
this
concept
will
have
to
create
simultaneous
value
for
all
par'cipants
in
the
mobile
internet
ecosystem.
2

3. Day
1
Component
1
Discovering
Innova'on
Ecosystems
Beirut,
Lebanon,
October
21st
2014
3

4. 1
Discovering
Innova'on
Ecosystems
Workshop flow & methodology of 4D’s
1
2
3
4
Source:
adopted
and
modified
Koria
2013
from
the
UK
Design
Council
Discovering
Innova'on
Ecosystems
Defining
Value
Opportunity
Develop
Service
and
Business
Delivering
to
the
Real
World
Wide
view
on
policy
&
system
Tight
focus
on
applica'on
&
implementa'on
Feedback
through
tes'ng
4

5. Background
&
content
Introduc'on
to
the
component
• The
idea
of
the
innova'on
ecosystems.
• Importance
of
users
in
ecosystems
&
their
limita'ons
• The
changing
role
of
business:
plaWorms
and
networks.
• The
importance
to
stakeholders,
roles
of
actors.
• Components
of
an
entrepreneurial
ecosystem
(culture,
policy,
suppor'ng
systems,
markets,
human
capital
and
finance)
• Introducing
the
ecosystem
canvas.
5

6. Innova'on
and
ecosystems
Starting with definitions of innovation
Any
defini'on
of
innova'on
involves
three
main
a[ributes:
• Novelty
• The
new
as
in
previously
unknown
or
as
novelty
to
the
circumstance
• Need
&
U&lity
• Innova'on
is
based
on
need
• Success
• This
can
imply
commercial
success,
but
also
widely
diffused
new
organiza'onal
configura'ons
or
reconfigured
assets
ü Without
these,
there
is
no
innova'on!
Innova'on
exploits
new
knowledge
and
needs
to
be
socially
acceptable
6

7. Innova'on,
Crea'vity,
Design
2.4
Design
Thinking
in
Business
Bruce
&
Bessant
2002:
• Innova&on
is
the
successful
applica'on
of
new
ideas
in
prac'ce
in
the
form
of
new
or
improved
products,
services
or
processes
• Crea&vity
is
the
ability
to
combine
ideas
into
new
ways
to
solve
problems
and
exploit
opportuni'es
• Design
is
the
purposeful
applica'on
of
crea'vity
throughout
the
process
of
innova'on
7

8. Users
in
innova'on
ecosystems
BIZ
GOV
UNI
USERS
Top
down
BoCom
up
8

9. User
driven
innova'on
&
co-­‐crea'on
• Innova'on
can
be
seen
as
a
“User-­‐driven”
process:
– Increasing
customer
interac'on
– Co-­‐crea'on
– Users
as
originators
of
innova'ons
– Open
innova'on
thinking
– Crowdsourcing
– Interpreters
ü User
(demand)
led
innova'on
is
impac'ng
on
firms,
organiza'ons
and
thus
business
models
and
innova'on
strategy
9

10. Changing
nature
of
business
• We
are
moving
from
pipeline
business
into
plaWorms
• We
are
also
moving
from
products
to
services
and
product-­‐service
systems
that
are
driven
by
business
models
ü Nature
of
biz
is
changing
in
to
networked
hybrids,
where
value
is
created
through
interac'on
10

11. • Pipes
• The
From
Pipes
to
PlaWorms
conven'onal
industry
and
dominant
model
of
business
un'l
today
(television,
britannica,
educa'on
systems,
industry,
services).
• Firms
create
products
&
services,
push
them
out
and
sell.
• Value
is
created
upstream
and
consumed
downstream.
• Linear
flow,
ohen
one
way
• Our
users
interact
with
the
so/ware
we
create.
Our
product
is
valuable
by
itself.
• PlaWorms
• Massive
shih
of
business
caused
by
the
internet
(youtube,
wikipedia,
airbnb)
• Users
create
and
consume
value
• Different
business
models
from
pipes
• Need
to
build
up
with
producers
and
consumers
in
mind
• Our
users
interact
with
each
other,
using
so/ware
we
create.
Our
product
has
no
value
unless
users
use
it.
Source:
Sangeet
Paul
Choudary
www.wired.com
11

12. Nature
of
neworked
business
One
firm
Management
of
a
project-­‐based
firm
Many
projects
One
project
Management
of
a
project
network
Management
of
a
project-­‐based
firm
Many
firms
Management
of
a
business
network
Management
of
a
single
project
12
Complexity
and
direct
control.
Koria
2012,
Adapted
from
Ar[o
et
al.
2011

13. • Originate
Ecosystems
from
the
natural
sciences,
and
have
many
similari'es
with
biological
ecosystems:
• Dynamic
in
nature
• Made
up
of
interconnected
organisms
that
operate
in
a
shared
environment.
• The
evolve,
grow
and
and
contract,
and
can
be
destroyed
if
the
environment
suffers
dras'c
changes.
• FINE,
BUT:
the
analogy
needs
careful
considera'on:
• In
business
ecosystems,
actors
are
inteligent
and
able
to
to
plan
and
understand
the
dynamics
of
the
system.
•
The
goal
of
business
ecosystems
is
to
deliver
innova'ons
(i.e.
expansive
growth),
whereas
natural
ecosystems
are
only
aiming
at
survival.
13

14. Ecosystem
models
Moore’s
(1996)
model
&
stages
of
ecosystem
development
1.
Pioneering
stage
Source:
Heikkilä
&
Kuivaniemi,
2012
Source:
Rai'sto,
2013
2.
Expansion
stage
3.
Authority
stage
4.
Renewal
stage
14

15. Ecosystems
models
Source:
Salonoja
2013
aher
Isenberg
2010
15

16. Hub
roles
in
ecosystems
Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Bo[om-­‐up
Top-­‐down
Adapted from Gradl et al. (2008, p.44)
Bo[om-­‐up
Top-­‐down
Leverage
own
capabili&es
Collaborate
with
other
stakeholders
Innova'on
ecosystem
BOTTOM
UP
TOP
DOWN
16

17. Hub
roles
in
ecosystems:
integra'on
Leverage
own
capabili'es
Collaborate
with
other
stakeholders
Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Bo[om-­‐up
Top-­‐down
Adapted from Gradl et al. (2008, p.44)
Bo[om-­‐up
Top-­‐down
Area
of
high
coordina'on
and
advocacy
needs
Innova'on
ecosystem
Area
of
high
know-­‐how
needs
Area
of
best
local
knowledge
17

18. Hub
roles
in
ecosystems:
transla'on
Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Tendency
of
emerging
radical,
disrup've
innova'on
from
externali'es
Bo[om-­‐up
Top-­‐down
Adapted from Gradl et al. (2008, p.44)
Bo[om-­‐up
Top-­‐down
Innova'on
ecosystem
Leverage
own
capabili'es
Collaborate
with
other
stakeholders
Tendency
of
emerging
incremental
innova'on
from
local
sources
18

19. Hub
roles
in
ecosystems:
expanding
Adaptation Investment Communities Organisations Government
Regulatory environment
Access to Finance
Physical Infrastructure
Knowledge & skills
Market information
Bo[om-­‐up
Top-­‐down
Adapted from Gradl et al. (2008, p.44)
Bo[om-­‐up
Top-­‐down
Area
of
high
constraints
to
the
use
of
local
capabili'es
Innova'on
ecosystem
Leverage
own
capabili'es
Collaborate
with
other
stakeholders
Area
of
best
local
capability
19

20. Stakeholder
influence
in
ecosystems
Latent
Stakeholders
1. Dormant
stakeholder;
only
power
2. Discre'onary
stakeholder;
only
legi'macy
3. Demanding
stakeholder;
only
urgency
Expectant
stakeholder
4. Dominant
stakeholder;
power
and
legi'macy
5. Dangerous
stakeholder;
power
and
urgency
6. Dependent
stakeholder;
legi'macy
and
urgency
Highly
salient
stakeholder
7. Defini've
stakeholder;
all
a[ributes
Non-­‐
stakeholder
8. Non-­‐
stakeholder;
none
of
the
a[ributes
1
5 4
7
6
3 2
8
Source:
Mitchell,
R.,
Agle,
B.,
Wood,
D.
1997
20

21. Ecosystem-­‐business
models-­‐offering
CLIENTS
OFFERING
KEY ACTIVITIES
CORE BUSINESS
HUMAN CAPITAL – MARKETS - FINANCE
SUPPORT – CULTURE - POLICY
CUSTOMER
VALUE
SERVICE /
BUSINESS
MODEL
EXISTING
ECOSYSTEM
SOCIETY
21

22. Day
1
Teamwork
1
Ecosystems
Analysis
Beirut,
Lebanon,
October
21st
2014
22

23. Teamwork
1:
Ecosystems
Analysis
SeNng
the
Scene
The
par'cipants
introduce
themselves
and
agree
on
the
ground
rules
for
the
teamwork.
The
group
is
divided
into
six
teams.
Char&ng
the
ecosystem
The
char'ng
assignment
of
the
group-­‐work
of
the
component
takes
the
presented
ecosystem
model
as
the
star'ng
point.
The
whole
group
of
the
par'cipants
works
on
char'ng
the
the
same
overall
ecosystem.
Each
group
analyses
a
specific
set
of
elements
of
the
innova'on
ecosystem
model.
1. The
first
step
of
the
exercise
is
to
iden'fy
to
actors,
and
stakeholders
of
the
ecosystem.
2. The
second
step
is
to
iden'fy
the
amtudes
towards
the
new
as
indicated
in
the
canvas.
The
typical
ques'ons
maybe
altered
and/or
added
to.
3. At
the
end
of
the
session
the
teams
come
together
and
present
the
ecosystem
components
to
all
the
teams,
mapping
out
the
ecosystems
through
flipchart
pages
and
post-­‐its
on
a
wide
oval
map
on
a
wall
of
the
room.
The
importance
of
the
connec'ons
between
the
key
actors
should
be
highlighted
in
the
exercise.
4. Before
the
coffee
break,
the
overall
model
is
reviewed
to
iden'fy
key
missing
items
and
connec'ons.
23

24. Exercise
1
90
minutes
24

25. What
challenge
do
we
want
to
address
with
the
Innova'o
Hub?
10
minutes
25

26. What
challenge
do
we
want
to
address?
4
x
30
seconds
26

27. First
step:
iden'fy
actors
and
stakeholders
of
the
ecosystem.
Second
step:
iden'fy
the
amtudes
towards
the
new.
15
minutes
NEGATIVE POSITIVE
27

28. THE ECOSYSTEM CANVAS
CULTURE
Is the ecosystem inward - outward looking?
How do the players behave inside the ecosystem?
How does the ecosystem react to disruptive innovation?
POLICY
Are there feedback loops – does the government listen?
What kind of leadership is the government offering?
How do policies support developing new ideas?
SUPPORTS
How developed is the infrastructure of the ecosystem?
Are there any support professions available?
Do supporting non-governmental institutions exists?
MARKETS
Are players capable of networking inside and outside?
What kind of customers and consumers exist?
Are the markets open - closed?
HUMAN CAPITAL
What kind of human resources exist in the ecosystem?
How do the educational institutions support the ecosystem?
How much are new ideas and entrepreneurship encouraged?
FINANCE
How is the government supporting the ecosystem?
Are new ways of financing enabled?
How easy is it to fund emerging services / business ideas?
28

29. Presenta'on
of
the
ecosystem
of
your
challenge.
4
x
5
minutes
29

30. Day
1
Component
2
Defining
Value
Opportunity
Beirut,
Lebanon,
October
21st
2014
30

31. 2
Defining
Value
Opportunity
Workshop flow & methodology of 4D’s
1
2
3
4
Source:
adopted
and
modified
Koria
2013
from
the
UK
Design
Council
Discovering
Innova'on
Ecosystems
Defining
Value
Opportunity
Developing
Service
and
Business
Delivering
to
the
Real
World
Wide
view
on
policy
&
system
Tight
focus
on
applica'on
&
implementa'on
Feedback
through
tes'ng
31

32. Background
&
content
Introduc'on
to
the
component
• Value
as
a
central
component
of
any
business/service/
product
development
process.
• What
is
meaningful
in
terms
of
innova'on?
• Value
is
also
always
created
on
mul'ple
levels,
and
we
will
talk
about
user,
organiza'on/company,
ecosystem,
and
societal
levels
of
value
crea'on.
• Business
models
build
up
the
concept
of
value
32

33. 1.1 Towards innovation ecosystems
Add
pic
here
the
6th
Kondra'ev
wave
High
end
value
crea'on
is
dependent
on
current
cycle
and
the
degree
of
the
intangibility
and
scalability
Source:
Wilenius
&
Kurki
2012
33

34. The
intangible
nature
of
value
Development
of
the
value
of
intangible
assets
as
a
percentage
of
total
market
value
of
S&P
500
companies.
34
Source:
Harju2012

35. Mul'ple
economies
1.1 Towards innovation ecosystems
Past:
Agricultural
economy
ê
Past:
Industrial
economy
ê
Now:
Experience
economy
ê
Emerging:
Knowledge
economy
ê
Future:
Transforma&ve
economy?
35

36. New
mindsets
From products to solutions
Industrial
Economy
(1950-­‐
)
Experience
Economy
(1980-­‐
)
Knowledge
Economy
(unfolding)
Transforma&on
Economy
(future)
People
mindset
Cap'va'ng
idea
Product
ownership
Experience
Self
actualiza'on
Meaningful
being
View
Local
Global
Contextual
Systemic
Quest
Modernizing
life
Explore
lifestyle
idenAAes
Individual
empowerment
Address
collec;ve
issues
Effect
ProducAvity
+
family
life
Work
hard
play
hard
Develop
your
potenAal
Meaningful
contribu;on
Skills
SpecializaAon
ExperimentaAon
CreaAvity
Transforma;ve
thinking
Approach
Follow
cultural
codes
Break
social
taboos
Pursue
aspiraAons
Empathy
&
coopera;on
Business
mindset
Economic
drivers
Mass
produc'on
Marke'ng
&
Branding
Knowledge
plaWorms
Value
networks
Focus
Product
funcAon
Brand
experience
Enabling
creaAvity
Enhancing
meaning
Quali'es
Products
Product-­‐Service
mix
Enabling
Open-­‐tools
Inclusive
value
networks
Value
proposi'on
CommodiAes
Targeted
Experiences
Enable
self-­‐
development
Ethical
value
exchange
Approach
Persuade
purchase
Promote
Brand
Lifestyle
Enable
ParAcipaAon
Leverage
Coopera;on
Goal
Profit
Growth
Development
Transforma;on
Source:
den
Ouden,
2011
36

37. Meaningful
innova'ons
New value propositions need to:
Meaningful
innova'ons:
ü Make
it
possible
to
improve
quality
of
life
in
society
ü Enable
ecosystems
to
“do
good”
and
provide
value
to
stakeholders
ü Provide
opportunity
for
organisa'ons
to
“do
well”
to
ensure
con'nuity
ü Offer
pleasurable
experience
for
the
user,
which
changes
behaviour
permanently
And
mul'ple
actors
needed
to:
ü Jointly
contribute
knowledge,
experience,
resources
ü To
deeply
understand
the
societal
issues
at
hand
ü To
generate
ideas
that
really
solve
problems
37

38. Source
of
innova'ons
/
Drucker
• Internally:
– The
unexpected
success,
failure,
outside
event
– The
incongruity
between
reality
as
it
actually
is
and
how
it
is
assumed
to
be
– Process
needs
– Changes
in
the
industry
&
market
structure
that
catches
everyone
unawares
• Externally:
– Demographics
(popula'on
changes)
– Changes
in
percep'ons,
moods
and
meanings
– New
knowledge,
both
scien'fic
and
non-­‐scien'fic
38

39. Challenges
with
opportuni'es
Value proposition
• The
value
proposi'on
and
offering
is
why
a
customer
chooses
the
firm/organiza'on
instead
of
another
• Its
solves
the
customer’s
problem,
or
sa'sfies
a
need
• It
is
the
benefits
that
that
a
service
/
company
offers
ü Designing
innova've
value
proposi'ons
can
create
real
advantages
in
both
radical
and
incremental
market
and
technological
innova'on
39

40. Challenges
with
opportuni'es
40

41. Designing
the
offering
Customer
Interac'on
Goods
Service
New
Business
&
PSS
&
Concept
Innova'ons
Offering
to
clients
from
the
feasibility-­‐
viability-­‐desirability
perspec've
Technology
Feasibility
Business
Viability
Human
Factors
Desirability
Design
innova'on
Offering
to
clients
from
the
Product-­‐
Service
System
(PSS)
perspec've
41

42. Technology,
Business
&
People
42

43. Management
&
Design
Thinking
1. Can
use
design
thinking
to
make
current
processes
and
offering
be[er
(incremental
innova'on)
2. Needs
to
think
“what
if”
(future
orienta'on)
3. Find
a
place
for
new
business
using
design-­‐driven
inno
va'on
(radical
innova'on)
4. Promote
cross-­‐func'onal
(team)
crea'vity
in
the
organiza'on
(to
create
new
offering)
5. Need
to
create
concurrent
experiments
and
real
'me
feedback
mechanisms
(to
manage
ambiguity)
43

44. Ecosystem-­‐business
models-­‐offering
CLIENTS
OFFERING
KEY ACTIVITIES
CORE BUSINESS
HUMAN CAPITAL – MARKETS - FINANCE
SUPPORT – CULTURE - POLICY
CUSTOMER
VALUE
SERVICE /
BUSINESS
MODEL
EXISTING
ECOSYSTEM
SOCIETY
44

45. Day
1
Teamwork
2
Crea'ng
Value
Beirut,
Lebanon,
October
21st
2014
45

46. Teamwork
2:
Crea'ng
value
The
Challenge
The
par'cipants
will
form
four
groups
and
decide
on
a
perspec've
to
the
challenge
to
develop
jointly.
The
teams
will
start
the
case
study
development
work
by
idea'on
and
iden'fying
the
opportuni'es
for
meaningful
innova'ons.
The
teams
will
develop
opportunity
statements.
Crea&ng
Value
for
clients
Through
the
value
framework
thinking,
the
teams
will
examine
how
to
iden'fy
services
that
create
value
in
the
chose
cases.
1. Through
an
idea'on
process
the
teams
will
develop
a
proposal
for
an
offering
while
iden'fying
who
this
offering
is
meant
for.
2. At
the
end
of
the
session
the
teams
come
together
and
present
their
idea
of
the
opportunity
statement,
a
descrip'on
of
the
offering
and
a
value
framework.
46

47. Delivering value I
• Newness
– Sa'sfying
Crea'ng
value
1
an
en'rely
new
set
of
needs
through
new
offering,
ohen
technology
related
• Performance
– Improving
products
or
services
• Customiza'on
– Tailoring
products
an
services
to
the
needs
of
customers
(mass
customiza'on,
customer
co-­‐crea'on)
• “gemng
the
job
done”
– Helping
the
customer
get
things
done
in
their
own
business
• Design
– Differen'a'ng
in
products
and
services
• Branding/status
– Crea'ng
dis'nc'on
through
products
and
services
47

48. Delivering value II
• Price
– Offering
Crea'ng
value
2
similar/superior
value
at
the
same
or
lower
price
• Cost
reduc'on
– Helping
customers
to
reduce
their
costs
• Risk
reduc'on
– Reducing
risks
for
customers
• Accessibility
– Making
products
and
services
available
to
new
groups
• Convenience/usability
– Making
things
easier
to
use
48

49. Ques'ons
to
answer:
What
is
the
opportunity
that
has
been
iden'fied?
What
is
the
offering
that
can
be
created
to
use
the
opportunity?
Economy
Psychology
Sociology
Ecology
Society
Wealth
Wellbeing
Meaningful
life
Livability
of
environment
Ecosystem
Stability
Shared
Drivers
Reciprocity
in
networks
Sustainability
Organiza&on
Profit
Core
values
Social
responsibility
Eco-­‐effecAveness
User
Value
for
money
Happiness
Belonging
Eco-­‐footprint
Source:
den
Ouden,
2011
Value
framework
49

50. Exercise
2
90
minutes
50

51. What
opportunity
can
we
iden'fy?
10
minutes
51

52. What
offer
can
we
create
to
use
the
opportunity?
10
minutes
52

53. What
is
the
added
value
of
our
offer
for
the
different
stakeholders?
20
minutes
53

54. Presenta'on
of
results.
4
x
5
minutes
54

55. End
of
Day
1
Co-­‐Crea'ng
Innova'on
Hubs
Beirut,
Lebanon,
October
21st
2014
55