Strategic Innovation Capita Selecta Dr Hugo Velthuijsen, lector New Business & ICT

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

Intrapreneurship inside KPN The biggest company turnaround in The Netherlands 8 yrs of continuous change after near bankruptcy Approx. 10.000 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

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

Leadership vs Management Center of Applied Research & Innovation: Entrepreneurship

The Classics (1) NOT: a great idea to start the company Visionary 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

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

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) 15-12-2017 New Business & ICT

The classics (4) Canvas model 9 pieces to the puzzle Understanding 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

Strategisch Omgevingsmanagement Opposition will be there Pre-empt opposition Look for lowest common multiple instead of greatest common divisor 15-12-2017 New Business & ICT

The Network Economy China, India, fomer Soviet Union Extreme competition China, India, fomer Soviet Union 3bn new capitalists India: 400.000 new IT bachelors graduate every year Better educated, more eager Seamless collaboration thanks to New IT / Web 2.0 / Broadband 15-12-2017 New Business & ICT

N = 1 R = G The Network Economy The power shifts to the customer 15-12-2017 New Business & ICT

Market development 15-12-2017 New Business & ICT

Marktbenadering Het echte wonder van Apple en Steve Jobs 15-12-2017 New Business & ICT 14

Gates & Jobs became experts by chance Work hard or work smart Inspiration or perspiratieon The10.000 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

Simon Sinek: the golden circle Marktbenadering Apple is het schoolvoorbeeld van een heart brand Simon Sinek: the golden circle 15-12-2017 New Business & ICT 16

Steve Jobs, The Perfect CEO Wired, 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

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

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

The Network Economy Evolution of supporting tools

Source: David Byrne (Talking Heads) in Wired The 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 15-12-2017 New Business & ICT

Niches are getting more important Thanks 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 15-12-2017 New Business & ICT

Free mobile Free CD Radiohead Free demo software Free web service Nothing in life is free… Free mobile Free CD Radiohead Free demo software Free web service Free club entrance Free drugs Free google search 15-12-2017 New Business & ICT

An example New Business 14 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. 15-12-2017 New Business & ICT

In the Next Industrial Revo-lution, Atoms Are the New Bits The 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

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

The Network Economy Customers: are better informed about you Changing 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

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

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

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 15-12-2017 New Business & ICT

The whole world can help you Open innovation Caveats There are more ideas outside the company than inside Profit from the ideas of others Being smarter more important than being first 15-12-2017 New Business & ICT

Professional networks Xxxxxxxxx Crowd sourcing The Network Economy Some ways to exploit different forms Xxxxx (Out)sourcing Professional networks Shared innovation Xxxxxxxxx Crowd sourcing 15-12-2017 New Business & ICT

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

Thank you Any questions? We, as the whole Hanze University have 20.000 students. Students can choose between 18 different schools. Our academic staff counts roundabout 1100 persons, the supporting staff 900. 15-12-2017 New Business & ICT 34