ICP ICT and Company Practise College Innovation Management Dinsdag 3 april 2007 Geleyn Meijer

ICP A services based society? Vitality of European society increasingly based on services >70% productivity (BRP) are services Services are no products The creativity needed to innovate in services is: –closely linked with client interaction and therefore needs to be embedded in the existing day-to-day relations with the clients –is an on-line affair since responding to challenges must be swift –creative results are quickly exposed in the commercial market reality and can have a short life span.

ICP Embedded Innovation (1) Key features: There is no central research or R&D organisation. Instead, the staff involved in the innovation process form a truly virtual organisation within the corporate domain. Innovation management is a coordination function for the activities within the operational divisions. It initiates and coordinates the innovation activites and ensures alignment with the corporate management team. Setting top-down themes, inviting bottum-up initiatives

ICP Embedded Innovation (2) Adoption and hype curves

ICP Embedded Innovation (3) EDEN (Exploration, Development and ExploitatioN)

ICP Embedded Innovation – 3 steps Operating unit CEO Operating unit Portfolio management Innovation management 13 2 Balancing, Handover, Implementation

ICP Case-study 1 Developing a M-ticket service for railway operators 2000 Exploration 2001 Development of prototype Validation pilot 2004 Market take-up

ICP Case Study 1 - Results The lessons learnt : in the exploration phase, involve end-user representatives and academics. manage expectations in delivery units since it takes more than one budget year to get mature solutions. in the solution development phase, don’t stick to ambitions of exploration phase. Market take-up comes in different areas and under different names. in the launching phase, widen up the scope of potential use and look for quick wins, even if that implies to postpone to apply the original exploration results. This requires a shift in involved personnel as well.

ICP Case Study 2 Developing a GRID- service provider 40 M€ 2004 – partners Academic – Industrial Early days for non- academic applications Leads to clock-frequencies dilemma Grid Services VL-e Application Oriented Services

ICP Case Study 2 - Results The lessons learnt: install an internal project team which acts as shadow to the large cooperation project. Use this team to expose the rest of the organisation to the new topic. the shadow team reaps results from the cooperation project and translates these to internal company expectations. These results are focussed on the immediate corporate needs such as strategy formulation, communication, strategic client interaction, retention. Pay constant attention to the hype cycle. Appreciate that there is no easy ride and that actual progress takes time. If the hype rising steeply, it may come down just as swift.

ICP Business case: 06-bier

ICP Business case: 06-Bier Video

ICP 06Bier Register group SMS per participant ‘Paying participant’ is assigned with SMS “Beer on the house” given at random by bar

ICP 06Bier business case Stakeholders Who are stakeholders, investers, users? Value chain Who produces what to whom; who pays for what? Marketing & acceptance Target group, marketing, business case? Go/nogo?

ICP Managed services

ICP Invoice for the Yearly participation fee Amstel Bars and Cafes Users (06Bier players) MSP TELCOs Invoice for the Yearly participation fee Invoice for 06Bier SMS (post-paid users) Invoice for the 06Bier SMS that the MSP sends to the players as feedback. Invoice for the Shared percentage of the extra SMS traffic originated by 06Bier.

ICP Tijd Marketing ICT produkten Acceptatie 1-3 jaar

ICP Diffusion of innovations Innovators Early adaptors Early majority Late majority Laggards Techies Visionaries Pragmatists Conservatives Skeptics

ICP Business case: in-car services

ICP 1.A dvantage to the user; 2.C ompatibility with lifestyle; 3.C omplexity of use; 4.O bservability of the benefits to others; 5.R isk (financial or social) to the user 6.D ivisibility of the application increase perceptions of Advantage, Compatibility, Observability and Divisibility decrease perceptions of Complexity and Risk The ACCORD analysis

ICP Traffic management Access control Dynamic and intelligent speed adaptation Environmental traffic & demand management Incident management Lane control (including speed management) Parking management Ramp metering Re-routing Road status monitoring Traffic monitoring Urban traffic control Vulnerable road user facilities Automatic vehicle guidance Green waves Platooning In-car message signs Traffic and travel information Pre-trip and on-trip information Dynamic Route guidance and navigation Point of interest information Parking information Touristic information On-board diagnostics Remote check-up Remote recovery Payment systems Integrated payment Parking payment Payment for road use Public transport payment Remote payment for services Public transport Car pooling/sharing management Congestion management Demand-responsive public transport Public transport priority Security and emergency management Breakdown and emergency alerts Collision avoidance Public transport security Rescue services incident management Winter maintenance Alarm After theft control with vehicle recovery Entertainment Internet access , fax, … Multimedia on demand

ICP Business case: in-car services Four commercial services 1.Dynamic and intelligent speed adaptation 2.Automatic vehicle guidance 3.Parking information 4.Parking payment Judge adoption rate on scale 0(bad) – 5(good). Present result

ICP Assignment Study the article: “IT doesn’t matter” from Harvard Business Review, by Nicholas Carr Form your own opinion and formulate on paper Form pairs and study the debate that followed the publication Formulate recommendations for the ICT strategy of a telecoms service provider

ICP Tentamen: essay 50% bepalend voor cijfer Schrijf een toekomstvisie over de rol van ICT in bedrijven en ga in op de rol die sourcing, ICT governance, risk management en juridische aspecten zullen spelen. De centrale vraag is: wat bevelen jullie KPN aan wat betreft toekomstige investeringen in ICT. Inzetten op sourcing en alles buiten de deur? Of zorgen voor goed portfolio management? Of focus op innovatie en projecten vooral zelf doen met goede risico beheersing? Omvang essay tussen 2 en drie kantjes A4. Werk in groepen van 3-4 Opbouw: –Achtergrond –Vraagstelling –Analyse –Conclusies –Aanbeveling

ICP Tentamen: presentatie 50% bepalend voor cijfer Voor de presentatie kan gekozen worden tussen twee mogelijkheden: –een presentatie van het essay –een presentatie van een business case Er mag in groepjes van 4 gewerkt worden. Iedere presentatie max 15 minuten met 5 minuten Q&A.