Designing Effective Innovation

Transcription

1 United Nations ESCAP Innovation & Competitiveness Task Force Designing Effective Innovation UNCC Bangkok, November 1, 2015 Maggie Gorse Some ideas for the Task Force How can we have Impact? Innovation Design for more Effective Discovery Business Innovation Transforms Competitiveness Networks, Ecosystems & Grass Roots Innovation Engage CSR to overcome Infrastructure Handicaps

2 Innovation s Path to Impact Discovery Product / Service Access Customer Funding Talent Incubators Mentors Enablers Etc Capital Equipmt Logistics Suppliers Enablers Etc Distributors Ads Support Payment Enablers Etc Monetized Educated Mobile &/or Connected Enabled Etc Some ideas for the Task Force How can we have Impact? Innovation Design for more Effective Discovery Business Innovation Transforms Competitiveness Networks, Ecosystems & Grass Roots Innovation Engage CSR to overcome Infrastructure Handicaps

3 Pharmaceuticals Patents Expire Big Pharma Price = 100 Cost R&D Selling G&A Profit Generics Price = 20 Cost Selling G&A Profit Patent Rights Expiration The Road to Survival = Innovation TuftsUniversityStudy: Successful New Drug Discovery Requirescirca$ 1 Billion and 10 to 15 yearsin R&D Industry Response: 1994 to early 2000 s Massive Mergers to reach Critical R&D Budgets Bigger R&D Budgets $2 Billion Fewer FDA Approvals $500 million Sources: Company Anual reports and ParexelPharma Result was

4 Why Didn t More R&D Resources Produce More R&D Results? Innovation Is a Game of Chance(Risk) To Win, you need both Skill and Probabilities RiskDesign ismore important to Success than More Money or Size Can Money Buy Success? Source: New Drug Approvals provided by Tufts University, Expenditures provided by and converted to constant $ by Tufts

5 Big Pharma Reduces R&D Budget, Uses New R&D Design for Innovation Universities Small Biotechs $ Clinical Test FDA Approv Marketing Distribution Big Pharma R&D IN Out $ $$ Governments Independents A Lessonin RiskDesign More money on owncardsdoesnot increase chance of winning Venture Capitalist «Proprietary Technology» with Copyright Shared Risk, Shared Reward. SameMoney, More Chances to Win

6 GE emphasizes importance of connecting with a community of entrepreneurs to push forward innovation. GE GivesAccess to All Patents on Quirky $ $ $ $ $ $ $ $ $ $ Quirky & GE launch "Wink initiative for inventors: createapp-enabled products, instantly connected with internet. Comment & Vote Collaborative Innovation Site 3000 $ $ Submits Innovation Idea Comment & Vote Sources: May 2013 report in «The Atlantic»: China Has Broad & Rich Talent for Innovation Sun Jifa, farmer in Jilin province, lost his forearms 32 years ago instructed his nephews to build these prosthetic forearms from scrap metal, plastic and rubber. Sun & nephews have sold 300 prosthetic limbs for people in need for 3000 RMB each. September, 2012 (Reuters/Sheng Li) Noah's Ark of China, six-ton survival ball by Chinese inventor Yang Zongfu, in Yiwu, Zhejiang province. Yang spent 2 years &1.5 million RMB to build 4m diameter vessel, capable of housing 3 people with enough food to live 10 months, protected from external heat, water & impact. August, (Reuters/China Daily)

7 Innovation s Path to Impact Discovery Product / Service Access Customer 1. «Innovate» Innovation Design 2. Enable Grass Roots Discovery 3. Eco-system of Networks Some ideas for the Task Force How can we have Impact? Innovation Design for more Effective Discovery Business Innovation Transforms Competitiveness Networks, Ecosystems & Grass Roots Innovation Engage CSR to overcome Infrastructure Handicaps

8 Reaching your Market, Risk & Value Strongly motivated to fight back 50 «Enemies» Already w/customer Unique, New, but Risky Product x 1 x 50 More Risk for Customer! Reaching your Market, Risk & Value Create VALUE : OTA update, interactive, etc Make 50 «friends» Unique, New, but Risky Product x 1 x 50 Reduce Customer Risk

9 Apple s Business Model DEVICES ios OS Android APPs Source: Gorse Analysts and Apple s Business Model Source:

10 Apple s Business Model CUMULATIVE APP DOWNLOADS Source: magazine/2011/04/mf _android/all/1 <! year Traditionalvs Value Design Business Models R&D Phase MfgSetup R&D Phase R&D Phase Mfg Setup time Mfg Setup Flagship Stores D Phase Approx 2 years Collaborative feature updates Continuous small batch releases Every WEEK On-line Pre-sales Collaboration on MIU OS Social Media Marketing Wiki MIU OS Translation into 24 languages Source: } D Phase Design as you Build time User generated help-line & support

11 Innovation s Path to Impact Discovery Product / Service Access Customer 1. Business Creativity is «New Innovator» 2. Enable the Customer in Discovery 3. Eco-system of Networks Some ideas for the Task Force How can we have Impact? Innovation Design for more Effective Discovery Business Innovation Transforms Competitiveness Networks, Ecosystems & Grass Roots Innovation Engage CSR to overcome Infrastructure Handicaps

12 Microsoft Success: Not TechnologyInnovation, but Business Model Innovation Making DOS the Industry Standard by building the Network DOS Manufacturers 10 s Stores 100,000 s Consumers 100,000,000 s 35 Years Later Who Rules? Other Linux ios MacOSX Source:

13 Doing Less Is More UBER The world s largest taxi company owns no vehicles Facebook The world s most popular media owner creates no content Alibaba The world s most valuable retailer has no inventory Airbnb The world s largest accommodation provider owns no real estate World Internet Usage The Big Picture Sources: 05/

14 World Internet Usage The Big Picture Sources: 05/ Innovation s Path to Impact Discovery Product / Service Access Customer 1. Networks empower Grass Roots 2. Networks determine Market Access 3. Networks create powerful competitiveness

15 Some ideas for the Task Force How can we have Impact? Innovation Design for more Effective Discovery Business Innovation Transforms Competitiveness Networks, Ecosystems & Grass Roots Innovation Engage CSR to overcome Infrastructure Handicaps TII May 2015 OUR AMBITION: REVERSE THE TREND Create 50 million new wearers per year by 2020 Scale innovative business models that are non-dilutive & costeffective # uncorrected (in billion of people) If we don t act % -54% 2.4 If we create 50 million new wearers each year

16 Innovation s Path to Impact Discovery Product / Service Access Customer 1. CSR helps disseminate innovation 2. CSR educates& monetizes the less privileged 3. CSR builds infrastructure & Networks Some ideas for the Task Force How can we have Impact? Innovation Design for more Effective Discovery Business Innovation Transforms Competitiveness Networks, Ecosystems & Grass Roots Innovation Engage CSR to overcome Infrastructure Handicaps