Silicon Valley ecosystem as an innovation model
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1 Silicon Valley ecosystem as an innovation model Dr J Craig Mudge FTSE 29 August 2007 Melbourne 1
2 Outline 1. Silicon Valley ecosystem 2. Empathy as an innovation attribute 3. Entrepreneurial component 4. Measures -- it s all about change no wonder it s hard 2
3 Lessons from the Silicon Valley eco-system Google 3
4 Silicon Valley Edge Networks of people Many lead users, early adopters Crossing the chasm? Early Adopters Innovators Early Majority Late Majority Laggards 4
5 Silicon Valley Edge Students as inventors, as disseminators, and as part of the work force 5
6 Silicon Valley -- One big incubator Advisory board members Internet infrastructure Prototyping Mentors Customers Education Entrepreneurs Students Savvy legal, accounting Capital Flexible space 6
7 Si Valley Venture capital firms are hands on A firm is a source of 1. Partners 2. Customers 3. Recruiting 4. Constant management guidance 5. Strategy review 6. Coaching 7. Guidance on liquidity 8. Help with an advisory board 9. Funds 7
8 Empathy --- learning the needs of the customer more deeply and in more dimensions 8
9 Empathy as a top innovation attribute empathetic out in the world Design team enquiry experiential (IDEO,2003) 9
10 Empathy at Xerox PARC Early business anthropologists Later PAIR (PARC Artist in Residence) empathy 10
11 Intel s study of people interacting with technology Intel s ethnographers Thinking about technology placement in the innovation process People not users In the home group -- how people live, what experiences they value Radical innovation over thinking about clock speed, power consumption,. 11
12 Sometimes prototyping is a visualisation Process: in situ observation video recording analysis brainstorming first solution prototype second solution. Australian Transformation and Innovation Centre ATiC Thales Australia 12
13 ACID - an example of ethnographers at work Australasian CRC for Interaction Design - ACID - Brisbane A couple of outcomes; diversionary therapy for kids with severe burns; mobile technologies for mobile groups 13
14 Immersion of Stanford students Design School - Professor David Kelley Dr Tina Seelig, Stanford Technology Ventures Program, uses IDEO techniques, among others, in her course on creativity Summer internships at Silicon Valley firms and executives, too 14
15 A major Australian challenge Australian business leaders and technology - a 1985 OECD Examiners Report said We were struck by what seemed to be a widespread Australian view of technology as in some sense external to national life. Any different in 2007? 15
16 Entrepreneurial component entrepreneurship innovation 16
17 Entrepreneurial mind set 1. Opportunity obsessed 2. Not risk averse, but manages risk 3. Optimistic glass is half full 4. Persistent 5. Often innovative 6. Passionate -Mudge at Price-Babson SEE-22 (Symposium for Entrepreneurship Educators) 17
18 A spirit of enterprise Can entrepreneurship be taught? 18
19 Measures % of sales from new products (those introduced in last 2 yrs) # patents filed R&D as % of sales Sales growth Time to market Profitability Cash curve 19
20 Cash curve from Payback Payback Andrew and Sirkin,
21 Questions? 21
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