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Towards more innovative
industrial sector in Jordan


                             Jamil Alkhatib

                             Chamber of Industry
                             19.11.2011
                             Global Entrepreneurship Week

           Copyrights © 2011 Jamil Alkhatib                 1
Opening Questions

• How can I be an innovator?
• How can I use innovation to grow my
  sales and profits?
• How can I convert innovation to JD/$?
• Where do you see potential wasted?
• What are the main barriers to
  innovations Jordanian industry face?
                    Copyrights © 2011 Jamil Alkhatib   2
Jamil Alkhatib
• Founder of IBTECAR
•   (Innovation, Business, Technology, Entrepreneurship and Creativity for the Arab Region)

• MSc. Technology & Innovation Management
• BSc. Electrical Engineering
• Consulting:
     – Change and innovation management
     – SME Development
     – Technology commercialization
     – Product and technology strategy planning
     – Early stage venture assistance ideas2market
     – Creativity techniques
                                                   Copyrights © 2011 Jamil Alkhatib           3
Organizations Supported




         Copyrights © 2011 Jamil Alkhatib   4
Content


•   What is innovation and why it matters
•   Managing innovations in organizations
•   Barriers to Innovation
•   Building an innovative organization
•   Recommendations

                      Copyrights © 2011 Jamil Alkhatib   5
Global Innovation




         Copyrights © 2011 Jamil Alkhatib   6
Global Innovation




         Copyrights © 2011 Jamil Alkhatib   7
Innovation in Jordan




         Copyrights © 2011 Jamil Alkhatib   8
Innovation & Reputation
      Innovation Ranking 2008                        Reputation Ranking 2008
Rank Company                   Country        Rank Company             Country
   1 Apple                    USA                1 Toyota Motor       Japan
   2 Google                   USA                2 Google             USA
   3 Toyota Motor             Japan              3 IKEA               Sweden
   4 General Electric         USA                4 Ferrero            Italy
   5 Microsoft                USA                5 Johnson & Johnson USA
   6 Tata Group               India              6 Tata Group         India
   7 Nintendo                 Japan              7 Kraft Foods        USA
   8 Procter & Gamble         USA                8 Novo Nordisk       Denmark
   9 Sony                     Japan              9 Grupo Bimbo        Mexico
  10 Nokia                    Finland           10 Mirgos             Switzerland
  11 Amazon.com               USA               11 General Mills      USA
  12 IBM                      USA               12 Walt Disney        USA
  13 Research in Motion       Canada            13 Haier Corporation China
  14 BMW                      Germany           14 InfoSys Tech.      India
  15 Hewlett-Packard          USA               15 UPS                USA
 Source: BusinessWeek, 2008                                          Source: Reputation Institute, 2008
                                                                                                 9
                                         Copyrights © 2011 Jamil Alkhatib
Innovation is not Fantasy
                            It is a must
                                     New emerging markets
 Preferred Partnership
                                                                              Globalized Markets

            Changing Customers Behavior
                                    New Technologies
 Short Life-cycle
                    Fund Raising Gaining new customers
 Publicity
                     Attract the best employees/experts

                               New competitors
 Overcoming Recession
             Emerging Disrupting Technologies
                                                                                    Brand name
                              Impress Stake holders
Growth Opportunity

                                           Copyrights © 2011 Jamil Alkhatib                 10
Innovate or Die




         Copyrights © 2011 Jamil Alkhatib   11
Economics & Innovation




           Copyrights © 2011 Jamil Alkhatib   12
SO WHAT IS INNOVATION

           Copyrights © 2011 Jamil Alkhatib   13
INNOVATION 1.0

           Copyrights © 2011 Jamil Alkhatib   14
Innovation Definition

              Innovation 1.0 – idea, product, sell


                       Problem
 Problem                                      Solution
Recognition
                       Solving
                                             Exploitation             Innovation
                     (Invention)




     "Anything that won't sell, I don't want to invent."
                                          Thomas Edison
                                   Copyrights © 2011 Jamil Alkhatib        15
Types of innovations


Product                    Service



                       Business
Process
                        Model

           Copyrights © 2011 Jamil Alkhatib   16
INNOVATION 2.0

           Copyrights © 2011 Jamil Alkhatib   17
A Business Model...

...describes the rationale of how
    an organisation creates,
  delivers and captures value

    • Customers   • Infrastructure
    • Offer       • Financial viability
Business Model Canvas
                                value
           key activities                                               customer
                                proposition
                                                                        relationships


                                                                                  customer
                                                                                  segments
key partners




             cost             key                                             revenue
        structure                                    channels                 streams
                        resources
                                     Copyrights © 2011 Jamil Alkhatib                   19
Customer Development
                Product Development

  Concept/      Product      Alpha/Beta                         Launch/1st
  Bus. Plan      Dev.           Test                               Ship



Innovation 2.0 – idea, share w/ customer, improve, market
test, keep refining the business model (Value)




                             Copyrights © 2011 Jamil Alkhatib                20
INNOVATION 3.0

           Copyrights © 2011 Jamil Alkhatib   21
What is common to these
Companies




          Copyrights © 2011 Jamil Alkhatib   22
Open Innovation




         Copyrights © 2011 Jamil Alkhatib   23
Open Innovation

•   All the best people do not work here
•   Is about communication
•   Global Shift towards ecosystem
•   Every business participate
•   Innovation is about more than just products.
•   Control or contribution?
•   Big corporations can drain a smaller company.
                          Copyrights © 2011 Jamil Alkhatib   24
Innovation 3.0
Idea, collaborate (local/global), test, refine global market test, refine, build
ecosystem (market solutions)


                                                                                   build
                  Idea                       refine,
                                                                                 ecosystem


                                           global
             collaborate
                                         market test



                  test                       refine

                                              Copyrights © 2011 Jamil Alkhatib           25
Innovations

Innovation 1.0 – idea, product, sell

Innovation 2.0 – idea, share w/ customer, improve,
market test, keep refining the business model
(Value)

Innovation 3.0 – Idea, collaborate (local/global), test,
refine global market test, refine, build ecosystem
(market solutions)

                           Copyrights © 2011 Jamil Alkhatib   26
SO FROM WHERE TO
START?
          Copyrights © 2011 Jamil Alkhatib   27
Innovation Management




                                                             Innovation Management
 Invest in                                   Invest in
Innovation                                  Innovation



  Hope                                          Expect**



Occasional                                       Regular
                                                Innovative
 Success                                          Results            28


             Copyrights © 2011 Jamil Alkhatib
Innovation Management
          Impact

Competitive Advantage




                                                Innovation Management
                             Quality


              Productivity
                                                                          Time

                                             Today


                                       Copyrights © 2011 Jamil Alkhatib     29
So can we really manage
innovations?




          Copyrights © 2011 Jamil Alkhatib   30
Can innovation be managed?

•   Innovation is complex and uncertain process
•   Developing of new products is bumpy road
•   Problems in creating new business models
•   Convincing stakeholders: investors, and staff
•   Support of family & friends during process
•   Different goals and expectations
•   The difference between the lab and the market

                          Copyrights © 2011 Jamil Alkhatib   31
Innovation Management
• Management is not about control or
  mechanisms it is about creating the conditions




• On the other hand management of innovation
  has to do with resources to be committed and
  the decisions to be taken and coordination
  among players         Copyrights © 2011 Jamil Alkhatib   32
Innovation Management
               Dimensions

         Structure                          “Successful innovation
                                            requires
                                            choosing, building, and
                                            preparing the right
                                            organization and the right
                                            people for executing and
People
         Innovation
                      Process               scaling the innovation.”
           Mgmt


                                            Clayton M. Cristensen & Tara
                                            Donavan


         Strategy
                       Copyrights © 2011 Jamil Alkhatib           33
Building the innovative organization

INNOVATION
PROCESS
                                  Copyrights © 2011 Jamil Alkhatib   34
Process Characteristic




                                                              Efficiency / Order

         Creativity/ Chaos


                                 Copyrights © 2011 Jamil Alkhatib             35

Adopted from Ebner and Walti
Innovation Process




                                           Copyrights © 2011 Jamil Alkhatib   36

Source: http://www.jpb.com/innovation/index.php
Building the innovative organization

PEOPLE

                                  Copyrights © 2011 Jamil Alkhatib   37
Factory case




         Copyrights © 2011 Jamil Alkhatib   38
Traditional Arguments
• “This stuff doesn’t work in the real world…”

• “We don’t have time to mess with this theoretical
  stuff…”

• “No one will buy it”

• “Our business is fine we do not need to change”

• “Too Risky Investment”

• “We do not know what might happen”

                               Copyrights © 2011 Jamil Alkhatib   39
Innovation Resistance


                             Novelty and
                             Resistance are
                             two sides of the
                             Coin




         Copyrights © 2011 Jamil Alkhatib   40
Creative Thinking
                                            http://www.yout
                                                  ube.com/w
                                                  atch?v=xXr
                                                  IoF-
                                                  sVi8&NR=
                                                  1

                                            •   IBM I Man
                                                Yelling




         Copyrights © 2011 Jamil Alkhatib                 41
Innovation Culture

               Engagement

       Humor                                  Ideas




               Innovation
Risk                                                    Freedom
                 Culture


                     Copyrights © 2011 Jamil Alkhatib             42
Risk Taking


“Success is a lousy teacher. It seduces
  smart people into thinking they can’t lose”
                                   Bill Gates

“If you're not failing every now and again,
it's a sign you're not doing anything very
innovative.”
                                  Woody Allen
                      Copyrights © 2011 Jamil Alkhatib   43
Freedom

• Google engineers are required to allocate
  20 percent of their time working on any
  project idea of their choosing




• 3M's “Friday time” or 15% of their time to
  pursue independent projects

                           Copyrights © 2011 Jamil Alkhatib   44
Innovation Barriers

         Can not          Not
           Do            Willing

Do not                                               Not
Know                                               Allowed
              Innovation
                Barriers


                    Copyrights © 2011 Jamil Alkhatib         45
Innovation Barriers –
          looking for solutions….
• Cash – it takes $ for inventions & products
• Time – of the inventor and team
• Test bed – objective lab for feedback
• Market – where the real answers are
• Founder’s financial stability – innovation
  takes time to become $$ so part time job or?
• Problem – good innovations solve problems
• Sales – start local grow regional/global
                        Copyrights © 2011 Jamil Alkhatib   46
FINAL
RECOMMENDATIONS
         Copyrights © 2011 Jamil Alkhatib   47
Innovation

• Innovation is the ability to respond to
  changes in the environment and
• Learn to adapt

• You can not develop your business model
  alone,
• You can only with the feedback of
  customers
                        Copyrights © 2011 Jamil Alkhatib   48
Recommendation to the
        managers
• Commitment to innovation

• Lean approach (utilize what we have and
  continue building on it)
• Hire infected people
• be crappy and ship as soon as you can

• Kill the cash cows
                       Copyrights © 2011 Jamil Alkhatib   49
Recommendations to
         the staff (innovators)
• Put the company first
• Stay under the radar
• Seek forgiveness (if it comes to this), not
  permission.
• Collect and share data
• Remember you will get in trouble if you
  are a good innovator
• Be ready for success
                        Copyrights © 2011 Jamil Alkhatib   50
Innovation is all about…


             People
             Managers


People
 Customers                              People
                                       Employees



             Innovation
              Innovation



                    Copyrights © 2011 Jamil Alkhatib   51
Thank You
www.ibtecar.me




                      http://www.ibtecar.me
                      http://ibtecar.blogspot.com/
                      http:// www.slideshare.net/jamilkhatib




       Copyrights © 2011 Jamil Alkhatib                    52

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Towards more innovative industrial sector

  • 1. Towards more innovative industrial sector in Jordan Jamil Alkhatib Chamber of Industry 19.11.2011 Global Entrepreneurship Week Copyrights © 2011 Jamil Alkhatib 1
  • 2. Opening Questions • How can I be an innovator? • How can I use innovation to grow my sales and profits? • How can I convert innovation to JD/$? • Where do you see potential wasted? • What are the main barriers to innovations Jordanian industry face? Copyrights © 2011 Jamil Alkhatib 2
  • 3. Jamil Alkhatib • Founder of IBTECAR • (Innovation, Business, Technology, Entrepreneurship and Creativity for the Arab Region) • MSc. Technology & Innovation Management • BSc. Electrical Engineering • Consulting: – Change and innovation management – SME Development – Technology commercialization – Product and technology strategy planning – Early stage venture assistance ideas2market – Creativity techniques Copyrights © 2011 Jamil Alkhatib 3
  • 4. Organizations Supported Copyrights © 2011 Jamil Alkhatib 4
  • 5. Content • What is innovation and why it matters • Managing innovations in organizations • Barriers to Innovation • Building an innovative organization • Recommendations Copyrights © 2011 Jamil Alkhatib 5
  • 6. Global Innovation Copyrights © 2011 Jamil Alkhatib 6
  • 7. Global Innovation Copyrights © 2011 Jamil Alkhatib 7
  • 8. Innovation in Jordan Copyrights © 2011 Jamil Alkhatib 8
  • 9. Innovation & Reputation Innovation Ranking 2008 Reputation Ranking 2008 Rank Company Country Rank Company Country 1 Apple USA 1 Toyota Motor Japan 2 Google USA 2 Google USA 3 Toyota Motor Japan 3 IKEA Sweden 4 General Electric USA 4 Ferrero Italy 5 Microsoft USA 5 Johnson & Johnson USA 6 Tata Group India 6 Tata Group India 7 Nintendo Japan 7 Kraft Foods USA 8 Procter & Gamble USA 8 Novo Nordisk Denmark 9 Sony Japan 9 Grupo Bimbo Mexico 10 Nokia Finland 10 Mirgos Switzerland 11 Amazon.com USA 11 General Mills USA 12 IBM USA 12 Walt Disney USA 13 Research in Motion Canada 13 Haier Corporation China 14 BMW Germany 14 InfoSys Tech. India 15 Hewlett-Packard USA 15 UPS USA Source: BusinessWeek, 2008 Source: Reputation Institute, 2008 9 Copyrights © 2011 Jamil Alkhatib
  • 10. Innovation is not Fantasy It is a must New emerging markets Preferred Partnership Globalized Markets Changing Customers Behavior New Technologies Short Life-cycle Fund Raising Gaining new customers Publicity Attract the best employees/experts New competitors Overcoming Recession Emerging Disrupting Technologies Brand name Impress Stake holders Growth Opportunity Copyrights © 2011 Jamil Alkhatib 10
  • 11. Innovate or Die Copyrights © 2011 Jamil Alkhatib 11
  • 12. Economics & Innovation Copyrights © 2011 Jamil Alkhatib 12
  • 13. SO WHAT IS INNOVATION Copyrights © 2011 Jamil Alkhatib 13
  • 14. INNOVATION 1.0 Copyrights © 2011 Jamil Alkhatib 14
  • 15. Innovation Definition Innovation 1.0 – idea, product, sell Problem Problem Solution Recognition Solving Exploitation Innovation (Invention) "Anything that won't sell, I don't want to invent." Thomas Edison Copyrights © 2011 Jamil Alkhatib 15
  • 16. Types of innovations Product Service Business Process Model Copyrights © 2011 Jamil Alkhatib 16
  • 17. INNOVATION 2.0 Copyrights © 2011 Jamil Alkhatib 17
  • 18. A Business Model... ...describes the rationale of how an organisation creates, delivers and captures value • Customers • Infrastructure • Offer • Financial viability
  • 19. Business Model Canvas value key activities customer proposition relationships customer segments key partners cost key revenue structure channels streams resources Copyrights © 2011 Jamil Alkhatib 19
  • 20. Customer Development Product Development Concept/ Product Alpha/Beta Launch/1st Bus. Plan Dev. Test Ship Innovation 2.0 – idea, share w/ customer, improve, market test, keep refining the business model (Value) Copyrights © 2011 Jamil Alkhatib 20
  • 21. INNOVATION 3.0 Copyrights © 2011 Jamil Alkhatib 21
  • 22. What is common to these Companies Copyrights © 2011 Jamil Alkhatib 22
  • 23. Open Innovation Copyrights © 2011 Jamil Alkhatib 23
  • 24. Open Innovation • All the best people do not work here • Is about communication • Global Shift towards ecosystem • Every business participate • Innovation is about more than just products. • Control or contribution? • Big corporations can drain a smaller company. Copyrights © 2011 Jamil Alkhatib 24
  • 25. Innovation 3.0 Idea, collaborate (local/global), test, refine global market test, refine, build ecosystem (market solutions) build Idea refine, ecosystem global collaborate market test test refine Copyrights © 2011 Jamil Alkhatib 25
  • 26. Innovations Innovation 1.0 – idea, product, sell Innovation 2.0 – idea, share w/ customer, improve, market test, keep refining the business model (Value) Innovation 3.0 – Idea, collaborate (local/global), test, refine global market test, refine, build ecosystem (market solutions) Copyrights © 2011 Jamil Alkhatib 26
  • 27. SO FROM WHERE TO START? Copyrights © 2011 Jamil Alkhatib 27
  • 28. Innovation Management Innovation Management Invest in Invest in Innovation Innovation Hope Expect** Occasional Regular Innovative Success Results 28 Copyrights © 2011 Jamil Alkhatib
  • 29. Innovation Management Impact Competitive Advantage Innovation Management Quality Productivity Time Today Copyrights © 2011 Jamil Alkhatib 29
  • 30. So can we really manage innovations? Copyrights © 2011 Jamil Alkhatib 30
  • 31. Can innovation be managed? • Innovation is complex and uncertain process • Developing of new products is bumpy road • Problems in creating new business models • Convincing stakeholders: investors, and staff • Support of family & friends during process • Different goals and expectations • The difference between the lab and the market Copyrights © 2011 Jamil Alkhatib 31
  • 32. Innovation Management • Management is not about control or mechanisms it is about creating the conditions • On the other hand management of innovation has to do with resources to be committed and the decisions to be taken and coordination among players Copyrights © 2011 Jamil Alkhatib 32
  • 33. Innovation Management Dimensions Structure “Successful innovation requires choosing, building, and preparing the right organization and the right people for executing and People Innovation Process scaling the innovation.” Mgmt Clayton M. Cristensen & Tara Donavan Strategy Copyrights © 2011 Jamil Alkhatib 33
  • 34. Building the innovative organization INNOVATION PROCESS Copyrights © 2011 Jamil Alkhatib 34
  • 35. Process Characteristic Efficiency / Order Creativity/ Chaos Copyrights © 2011 Jamil Alkhatib 35 Adopted from Ebner and Walti
  • 36. Innovation Process Copyrights © 2011 Jamil Alkhatib 36 Source: http://www.jpb.com/innovation/index.php
  • 37. Building the innovative organization PEOPLE Copyrights © 2011 Jamil Alkhatib 37
  • 38. Factory case Copyrights © 2011 Jamil Alkhatib 38
  • 39. Traditional Arguments • “This stuff doesn’t work in the real world…” • “We don’t have time to mess with this theoretical stuff…” • “No one will buy it” • “Our business is fine we do not need to change” • “Too Risky Investment” • “We do not know what might happen” Copyrights © 2011 Jamil Alkhatib 39
  • 40. Innovation Resistance Novelty and Resistance are two sides of the Coin Copyrights © 2011 Jamil Alkhatib 40
  • 41. Creative Thinking http://www.yout ube.com/w atch?v=xXr IoF- sVi8&NR= 1 • IBM I Man Yelling Copyrights © 2011 Jamil Alkhatib 41
  • 42. Innovation Culture Engagement Humor Ideas Innovation Risk Freedom Culture Copyrights © 2011 Jamil Alkhatib 42
  • 43. Risk Taking “Success is a lousy teacher. It seduces smart people into thinking they can’t lose” Bill Gates “If you're not failing every now and again, it's a sign you're not doing anything very innovative.” Woody Allen Copyrights © 2011 Jamil Alkhatib 43
  • 44. Freedom • Google engineers are required to allocate 20 percent of their time working on any project idea of their choosing • 3M's “Friday time” or 15% of their time to pursue independent projects Copyrights © 2011 Jamil Alkhatib 44
  • 45. Innovation Barriers Can not Not Do Willing Do not Not Know Allowed Innovation Barriers Copyrights © 2011 Jamil Alkhatib 45
  • 46. Innovation Barriers – looking for solutions…. • Cash – it takes $ for inventions & products • Time – of the inventor and team • Test bed – objective lab for feedback • Market – where the real answers are • Founder’s financial stability – innovation takes time to become $$ so part time job or? • Problem – good innovations solve problems • Sales – start local grow regional/global Copyrights © 2011 Jamil Alkhatib 46
  • 47. FINAL RECOMMENDATIONS Copyrights © 2011 Jamil Alkhatib 47
  • 48. Innovation • Innovation is the ability to respond to changes in the environment and • Learn to adapt • You can not develop your business model alone, • You can only with the feedback of customers Copyrights © 2011 Jamil Alkhatib 48
  • 49. Recommendation to the managers • Commitment to innovation • Lean approach (utilize what we have and continue building on it) • Hire infected people • be crappy and ship as soon as you can • Kill the cash cows Copyrights © 2011 Jamil Alkhatib 49
  • 50. Recommendations to the staff (innovators) • Put the company first • Stay under the radar • Seek forgiveness (if it comes to this), not permission. • Collect and share data • Remember you will get in trouble if you are a good innovator • Be ready for success Copyrights © 2011 Jamil Alkhatib 50
  • 51. Innovation is all about… People Managers People Customers People Employees Innovation Innovation Copyrights © 2011 Jamil Alkhatib 51
  • 52. Thank You www.ibtecar.me http://www.ibtecar.me http://ibtecar.blogspot.com/ http:// www.slideshare.net/jamilkhatib Copyrights © 2011 Jamil Alkhatib 52

Notas del editor

  1. - Story: Problem Identification- Story: Innovation / Change
  2. http://www.15inno.com/2009/10/07/sme/
  3. Innovations are done now using Trial and Errors
  4. Photo: http://www.harvardbusinessmanager.de/heft/artikel/grossbild-599698-1403271.htmlhttps://www.harvardbusinessmanager.de/heft/artikel/grossbild-599549-1403241.html
  5. - Culture of Accepting failures - Organizations doing well may not able to innovateRemember:Success truly is the result of good judgment. Good judgment in the result of experience, and experience is often the result of bad judgment.