Tag Archive for 'Innovation'

Internationalisation for SME’s is not optional

According to a European project on Supporting the Internationalisation of SME’s (December, 2007),

SMEs that do not consider internationalisation are unknowingly self imposing a severe restriction on their potential for long term survival

According to the report, the barriers SME’s face with regard to internationalisation

are a lack of financial resources but most of all lack of skills or skilled human capital to tackle internationalisation

The report recognises the important role technology has played, and continues to play, in breaking down borders and facilitating globalisation. It also makes an important observation; even if you as an SME decide not to trade internationally, and instead concentrate on your domestic market, you must still be able and willing to compete with international SME’s that target your market.

Therefore, a pro-active attitude to global competition and markets is increasingly becoming not a choice but a matter of necessity.

It is not just access to new markets that is driving SME’s to internationalise but also access to technology and, not surprisingly, those SME’s that do internationalise have shown a greater capacity to innovate.

So what are the drivers?

  • The “international orientation of decision makers”, which is, more often than not, the owner/manager.
  • The size of the SME.
  • The industry/sector to which the SME belongs to.

Interestingly, although the research indicates that international firms are more productive, this is not limited to firms that export. Firms that import are also international and have equally demonstrated increases in productivity.

Finally, seeing it is something close to my heart,

In relation to SME competitiveness, for the vast majority of companies there is a large potential for innovation in operations and management, including the acquisition of IT and quality systems and capabilities. To further highlight this point its is important to remember that “marketing” entrepreneurs will go international before “technical” entrepreneurs and that innovation at plant level is not a guarantee per se of improved or increased performance. In this sense, greater use of the possibilities offered by IT and support for greater use of ecommerce and CRM systems (just to mention two examples) point one way forward and can be the most relevant innovation strategy for small companies, crafts and services.

Technology adoption is not just about the technology

I’ve seen it again recently. This is the scenario. A business decides that it wants to adopt technology in an effort to address some identified issue or capitalise on some identified opportunity. Hopefully it doesn’t start with wanting to adopt technology (although it often does) but rather wanting to improve the business. Either way, the business puts a lot of effort into capturing the requirements of the technical solution and then identifying or developing an appropriate solution. These pre-adoption stages are often heavily influenced by people who are technology savvy, who often want the technology for the sake of the technology itself. The "adoption team" slowly starts to loose sight of the issue/opportunity it is seeking to address and become immersed, and somewhat dazzled, in the technology on offer. The project moves into the deployment phase and the technology is finally switched on. The project team disband (or seriously slows down) as they feel their job is done. The original issue/opportunity remains, for the large part, un-addresses.

The adoption of technology into a business is as much about organisational development as it is about aligning business goals with technology solutions. The organisation has to be prepared for the change the technology will bring about. Peoples fears have to be addresses up-front, training has to be provided and new behaviours have to be enforced. The whole change process has to be effectively managed. If not, then the best one can hope for is that the performance of the business remains unaffected. At worst, business performance will decline.

Innovation Vouchers for small businesses

Enterprise Ireland are currently running an Innovation Voucher Scheme for small businesses (fewer than 50 employees and has either an annual turnover and/or an annual Balance Sheet total not exceeding €10m) designed to help such businesses develop innovative solutions to an opportunity or problem they want to explore. The voucher, worth €5000, can only be used with approved “knowledge providers” of which Tipperary Institute is one. Knowledge providers are essentially 3rd level educational institutes that have been approved for the scheme. According to their web site, eligible activities include:

  • new business model development
  • new service delivery and customer interface
  • new service development
  • tailored training in innovation management
  • innovation / technology audit
  • acquiring knowledge of:
    • efficiency audits, process change
    • supply chain management and logistics
    • product and service testing and economic impact assessment

“Vouchers can also be exchanged for knowledge transfer projects from the knowledge provider. For the purposes of this initiative, a knowledge transfer project is defined as one that transfers knowledge of a scientific, technological or innovative nature that it is new to the small enterprise. The small enterprise may then use the new knowledge to innovate a product, process or service.”

If you are interested you need to send in an application form to Enterprise Ireland and than seek out a knowledge provider who can best assist you.

The broken book

How producers perceive their products can be quite different from how consumers perceive them. Do you view your mobile phone as a camera that can make calls or a phone that can take pictures? My son, who is two and a half, has a “toy” (which has been handed down to him from his cousin) called LeapPad which is essentially a book that sits into an electronic folder that has attached to it a stylus.

LeadPad

You can then use the stylus to trace over the words in the book and the words are spoken to you. My son is a little young for this toy but that still doesn’t stop him playing with it. Anyway, the other day my son asked me could he play with the broken book. The broken book? What was he talking about? As he continued to explain what it was he wanted to play with it dawned on me that he was in fact referring to his LeapPad. Why does he call it the broken book? Obvious. It has a pen that doesn’t write - it’s broken.
Wouldn’t it be great if we could all view the world with such innocent, unconditioned, eyes. He sees a broken book, I see an electronic reading pad and stylus - the curse of knowledge.

Innovating the Business Model

The latest newsletter from TechSearch.ie provides a nice summary of the key points from their recent conference on “Innovating the Business Model - Using Open Innovation to grow your business in new directions”, with the keynote speaker being none other than Professor Henry Chesbrough (author of the excellent book “Open Innovation: The New Imperative for Creating and Profiting from Technology“).

The key points are:

  • Good ideas are widely distributed. If you accept that not all the smart people work for you, then you can recognise the need to open up the search for useful external ideas.
  • Financial Managers must “play poker as well as chess” in that they must not dis-regard the potential value of projects which may fail conventional commercial assessments.
  • Consider the need to Connect & Develop (C&D) as well as Research & Develop (R&D). To manage Intellectual Property (IP), we need to access external IP to develop our own businesses and we need to profit from our own IP by putting it into other business models.
  • Business Model innovation is just as important as Technological innovation.
  • Working in an Open Innovation environment requires an enormous level of trust between partners – it’s critical to maintain and guard this trust.
  • By securing Global partnerships, smaller companies can scale globally.
  • In terms of evolving new business models, managers need to challenge themselves to “think outside the box”

(source: http://www.inspiration.ie/techsearch/december2007/innovating_business.htm)

What makes an innovator

ImagineWhy are some people good innovators and others not? Can one choose to be an innovator? What are the characteristics of an innovator? The people over at Think Simple Now have summarised some of the habits of innovators from Scott Berkun’s book, “The Myths of Innovation“.

They are:

  1. Persistence
  2. Remove Self-Limiting Inhibitions
  3. Take Risks, Make Mistakes
  4. Escape
  5. Writing Things Down
  6. Find Patterns & Create Combinations
  7. Curiosity

For me it starts with escaping - limiting your thought process by your imagination only.

(Image By jpeepz)

Innovation isn’t just about the idea

Irving Wladawsky-Berger, vice-president of Technology Strategy and Innovation at IBM, writes a very interesting blog entitled Business, Innovation and Survival. The blogs describes some of Irving’s experiences with regard to IBM and innovation. For me, it’s core message is that successful innovation isn’t simply about a good idea. Indeed you could be sitting on the best idea/technology in the world but if your organisation hasn’t a culture of innovation then realising your innovation is next to impossible.

You had the idea, developed the prototype, now what?

So your an inventor but are you an entrepreneur? You can develop the technology but can you commercialise it? Lets say we’re talking about a computer game here (an apt example seeing that Tipperary Institute is the home of Robocode Ireland) and lets assume that the game you have developed is actually really good. So where do you go from here?
First things first, having a really good game (even the best game ever) isn’t worth diddly squat unless you can actually commercialise it. You basically have two choices, go it alone or find a partner. Going it alone will require you to develop business skills (namely marketing, sales and finance) and getting your hands on a lot of cash. This is what is known as the closed innovation model - doing it all yourself. The other option is finding a partner that will commercialise your product for you. This is known as the open innovation model, where companies acquire your technology and commercialise it. This is a model that is being used more and more by companies today as they realise that they can’t possibly come up with all the good ideas and that they need to be open to accepting ideas from outside their company. Selecting the right partner isn’t easy. Some potential partners will show high interest, then stall (which Guy Kawasaki, in his book Art of the Start, calls “S-H-I-T-S” tactics). Why would a potential partner use such tactics? For a number of reasons but mainly due to the fact that they like your idea, they don’t want the idea going anywhere else but they don’t have the time/resources to do anything with it just now. If they can stall you long enough the value of the idea may lessen and with it its potential threat.
So what’s the moral of the story? Know what you know, know what you don’t know and know what you need to know. Be patient and prudent. Plan for failure, that’s not the same as planing to fail but if you do fail then learn from it and move on. If you want to make money from your game their is a time at which you will have to concentrate less on the game and more on the gaming business. Remember there is no such thing as a free lunch. Believe in your abilities, get help where necessary, and if you make millions, which I genuinely hope you do, remember who gave you this advice.

EU Report suggests companies moving towards an open innovation model

A recent report from the Economist Intelligence Unit (EUI) suggests that many EU companies are favouring an open approach to innovation. “In the past, companies tended to invest in in-house R&D and ring fence their ideas and technologies, believing it to be the best way to protect and benefit economically from their IP. However, in today’s information-rich environment, many believe this approach to IP protection and business to be obsolete, favouring instead a more open approach to innovation, where ideas flow in and out of companies.”