1 Strategic Innovation Capita SelectaDr Hugo Velthuijsen, lector New Business & ICT

2 Dr Hugo Velthuijsen Position Education ExperienceIntroduction 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 ICT company 8 yrs business management ICT company 4 yrs Hanze University of Applied Science Center of Applied Research & Innovation: Entrepreneurship 2 2

3 Intrapreneurship inside KPNThe biggest company turnaround in The Netherlands 8 yrs of continuous change after near bankruptcy Approx lay offs (>30%) Crisis as a means to an end Quarterly results on target without fail Strong in financial results, challenge in innovative power Center of Applied Research & Innovation: Entrepreneurship 3 3

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

5 Leadership vs ManagementCenter of Applied Research & Innovation: Entrepreneurship

6 The Classics (1) NOT: a great idea to start the companyVisionary companies 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 Center of Applied Research & Innovation: Entrepreneurship 6 6

7 The Classics (2) Overcoming mediocraty 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 Center of Applied Research & Innovation: Entrepreneurship 7 7

8 The Classics (3) Crawford model – choose in which to excel Level Access Experience Price Product Service Dominate Solution Intimacy Agent Inspire Customize Differentiate Convenient Care Consistent Dependable Educate At par Easy Respect Honest Credible Accommodate Sub par Hassle Disrespect Misleading Poor Forgettable 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 The classics (4) Canvas model 9 pieces to the puzzleUnderstanding your business Canvas model 9 pieces to the puzzle All parts need to fit and to support each other Center of Applied Research & Innovation: Entrepreneurship 9 9

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

11 The Network Economy China, India, fomer Soviet UnionExtreme competition China, India, fomer Soviet Union 3bn new capitalists India: new IT bachelors graduate every year Better educated, more eager Seamless collaboration thanks to New IT / Web 2.0 / Broadband 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 15-12-2017New Business & ICT 14

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

16 Simon Sinek: the golden circleMarktbenadering Apple is het schoolvoorbeeld van een heart brand Simon Sinek: the golden circle New Business & ICT 16

17 Steve Jobs, The Perfect CEOWired, October 2011 Understanding customers and what the want, even before they know it Mastery of market dynamics Acumen of a poker champ Commitment to excellence Brutal rejection of “good enough” Accountability when things go wrong Charisma that make product launches as exciting as a Bruce Springsteen show “If anybody’s going to make our products obsolete, I want it to be us.” Center of Applied Research & Innovation: Entrepreneurship

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

19 Leiderschapsstijl Steve JobsInspirator of dictator Center of Applied Research & Innovation: Entrepreneurship 19 19

20 The Network Economy Evolution of supporting tools

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

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

23 Free mobile Free CD Radiohead Free demo software Free web serviceNothing 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 An example New Business14 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. New Business & ICT

25 In the Next Industrial Revo-lution, Atoms Are the New BitsThe Network Economy Transaction costs have changed 18.02 Mid-30s: Big organisations exist to minimize transaction costs (Ronald Coarse) Now: transaction costs are much lower Cost of overhead and bureaucracy much less offset In the Next Industrial Revo-lution, Atoms Are the New Bits

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

27 The Network Economy Customers: are better informed about youChanging the relationship of businesses with their customers Customers: are better informed about you are better informed about competitors are better informed about their own preferences are global have more choice expect better service are easier to communicate with

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

29 The Network Economy Trias Politica Legislative Executive JudiciarySocial networks organising citizen participation into a 7th power? Trias Politica Legislative Executive Judiciary Three additional powers Civil service Media External consultants

30 Integrating in business practices Solving SMEs problems?Crowdsourcing 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 New Business & ICT

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

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

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

34 Thank you Any questions?We, as the whole Hanze University have students. Students can choose between 18 different schools. Our academic staff counts roundabout 1100 persons, the supporting staff 900. New Business & ICT 34