Innovation Ecosystems as Complex Supply Chains: Concepts and Frameworks

Transcription

1 Innovation Ecosystems as Complex Supply Chains: Concepts and Frameworks Dr. Laoucine Kerbache Director: Policy, Strategy, and Planning; Qatar Foundation VP RDI Professor of OSCM, HEC Paris, France Keynote Speech (II), 4th Asian Innovation Forum, 13:30-14:10 July 10,

2 Outline of presentation Introduction Innovation and Innovation ecosystems Innovation ecosystems as complex supply chains Some basic supply chain concepts and frameworks applied to innovation ecosystems A brief summary of a local innovation ecosystem. 2

3 The Innovation Value Chain Degree of activity Universities/ RCs R & D Organizations Industry & Businesses Education Basic research Application oriented basic research Applied development Tech prototyping Demonstration Commercial prototyping Manufacturing Sales Innovation deployment Human capital & education R&D Commercialization 3

4 Definition of Innovation Ecosystem source: JRC Policy Brief by Mafini Dosso et al., EU 2015 Innovation ecosystem commonly refers to: The collaboration of interconnected actors entrepreneurs, firms, universities, research centers, investors, funding agencies, intermediary agencies, and regulatory organizations, The main goals include the generation of synergies and the creation of new knowledge and innovations. The achievement of this goal implies that different actors should combine resources, capabilities, and products (technologies) to offer a coherent, customer-facing solution. 4

5 Historical milestones of the Concept of Innovation Ecosystem Triple Helix Agglomeration 1890s, Alfred Marshall, pioneered the agglomeration model that makes reference to the phenomenon of the positive economic influence of corporations working in a close vicinity with each other. Historical Origins National System 1850s, the institutional approach for reaching high economic growth 1993;1995, Etzkowitz and Leydesdroff, included the role of three key actorsgovernment agencies, industries, and education institutions. Growth Poles 1960s, Perroux integrated Agglomeration, Industrial districts, and Creative destruction (Schumpeter) in Growth Poles. Regional Innovative Systems 1998;2004, Cooke, the necessity for an innovation cluster to have different types of businesses to cover important aspects of innovation, such as research, education, and implementation The Concept of Clusters 1990, Michael Porter, the geographic concentrations of interconnected companies and firms in related industries and associated institutions SOURCE: JUCEVICIENE, JUCEVICIUS, GAIDELYS & KALMAN,

6 The main Innovation Ecosystems (See Clarysse et al., 2014) Innovation Ecosystems Knowledge Ecosystems The main aim is to generate new knowledge. The knowledge ecosystems are generally centered on universities and/or research institutes Business Ecosystems The main aim is to create value for companies and customers. Large companies are usually the leaders of business ecosystems These two ecosystems need to be examined in an integrated way. Specifically, the interactions or dynamics between knowledge and business ecosystems become highly significant. 6

7 The Knowledge Ecosystems (Daim et al., 2006; Li et al., 2015). Knowledge Ecosystems Science Ecosystems Focus on basic research and generates scientific knowledge. Help researchers identify hidden patterns in the knowledge creation process (Daim et al., 2006; Li et al., 2015). Technology Ecosystems Focus on applied technology and generates industrial knowledge, can be examined using patent analysis. It comes often from any innovative organization with R & D capabilities. 7

8 Understanding the Valley of Death 8

9 Understanding the Valley of Death : Two valleys of death in Innovation Ecosystem Source Juceviciene, Jucevicius, Gaidelys and Kalman,

10 Understanding the Valley of Death THE VALLEY OF DEATH IN MATURE INNOVATION ECOSYSTEM THE VALLEY OF DEATH IN EMERGING INNOVATION ECOSYSTEMS SOURCE: JUCEVICIENE, JUCEVICIUS, GAIDELYS & KALMAN,

11 Bridging the Gap between Research and Commercializatio Supply Sufficient Financial Resources 1 Secure Entrepreneurial Abilities 6 2 Create the Right Environment Enhance Co-investing and Partnerships 5 3 Provide Access to Facilities and Necessary Technology 4 Enhance Interaction among Stakeholders 11

12 Building a robust Innovation Ecosystem The traditional approach to scaling up in Product Development is to begin with a prototype, then a pilot, and finally a full roll-out. This sequential approach is well suited to the world of stand-alone innovation. However, to build a robust innovation ecosystem, Adner (2006) suggests a progressive process that begins with the creation of a Minimum Viable Footprint, (MVF), and expanding step-by-step from there through several stages. MVF is the smallest number of partners that is needed to have within the ecosystem in order to deliver some unique value proposition to attract customers. Then, the staged expansion extends the value proposition by attracting new complementors to the ecosystem, which helps to enlarge the market. 12

13 Needs for concepts and frameworks to successfully manage ecosystems Ecosystems, when successfully managed, allow for the creation of a value higher than those of the single firms would have created alone. The risks as well as the benefits associated with innovation ecosystems reflect their three fundamental dimensions: Interdependence Integration Initiative. 13

14 Mapping the Innovation Ecosystem This is best way to determine whether you have set realistic performance expectations for your innovation strategy. The steps are: 1. Identify all intermediaries that must adopt your innovation before reaching end customer, 2. Identify all the complements required for you and each of your intermediaries to move the offer forward to end customer, 3. Estimate delays caused by your dependencies with your own complementors (adding to your innovation with their own innovations), 4. Estimate delays caused by adoption process and time it takes each intermediary to integrate your solution into their development process, 5. Estimate delays caused by intermediaries interdependence with their own complementors, 6. Based on above; determine time-to-market for your innovation, 7. Reassess your initial performance expectations and innovation strategy. In light of risks, may consider new options. 14

15 Ecosystems as Complex Supply Chains Source: Mark Millar, Global Supply Chain Ecosystems Within these ecosystems, each configuration is unique to the particular enterprise that owns that supply chain the principal. The principal s chosen business partners join together to configure an ecosystem that serves the common purpose of providing an end-to-end supply chain. 15

16 Back to Basics: What is a Supply Chain? Supplier Manufacturer Primary Warehouse Wholesaler Retailer Consumer Supply Chain function = (Managing physical, information, and financial flows) 16

17 Supply Chain Management Supply Chain Management is the design and management of processes across organizational boundaries with the goal of matching supply and demand in the most cost effective way. Supply Demand Challenge: Matching Supply and Demand 17

18 The art of balancing Demand and Supply Demand Supply Key Account Planning Forecasts Customer Service target Constraints Costs Flexibility Flexibility limits Results? Advantages Planning processes are linked & synchronized All functions share aligned targets Improved Customer Service Better production yields Lower operations costs 18

19 Decisions in Supply Chain They fall into three phases depending on the frequency of each decision and the time frame over which a decision phase has an impact: Supply chain strategy or design Planning and Coordination of Supply chain Scheduling and priority management of Supply chain.

20 Supply chain strategy or design (closed-loop) Returns 20

21 Supply-Chain Operations Reference (SCOR) Model SC Strategy Performance Management Differentiators Priorities Strategic Directions Cust. Service Costs Flexibility Assets Supply Chain Processes PLAN SOURCE MAKE DELIVER RETURN Information Systems Organisation Supply-Chain Council,

22 Push/Pull View of Supply Chains Procurement, Manufacturing and Replenishment cycles Customer Order Cycle PUSH PROCESSES PULL PROCESSES Low uncertainty Long lead times Cost minimization Resource allocation Customer Order Arrives High uncertainty Short cycle times Service level Responsiveness Decoupling Point 22

23 Supply Uncertainty Supply Chain Strategic fit in presence of Demand and Supply Uncertainties (Lee, 2002) Demand Uncertainty Low (Functional Products) High (Innovative Products) Low (stable process) Efficient supply chain Responsive supply chain High (Evolving Process) Risk-hedging supply chain Agile supply chain 23

24 Other classification for selecting global supply chain strategies (Christopher et al., 2006) Predictable Demand Unpredictable demand Long Lead Time Lean Supply Chain Plan and Execute Leagile supply chain Postponement Short Lead Time Lean Supply Chain Continuous Replenishment Agile supply chain Quick Response 24

25 Supply Chain Planning Decisions Operations Strategy Strategic Planning Long-Term Demand Management (incl. Portfolio mgt) Industrial & Supply Chain Strategy Material Contracts Sales & Operations Planning Tactical Planning Mid-term Demand Management (incl. Portfolio mgt) Supply Network Planning Production Planning Materials Planning Operational Planning Short-term Demand Planning Short-term Supply Network Planning Short-term Production Planning Materials Requirements Planning Deployment Detailed scheduling Supplier Call-off 25

26 The four maturity levels of SCM Integration Extended optimisation Business Vision Complexity Fragmented and incomplete Supply Chain Supply Chain integrated but limited to in house scope Level 3 Supply Chain extended to the Value Chain Level 4 No Supply Chain Level 2 Level 1 26

27 The risk assessment in innovation ecosystems (Source: Adapted from The Wide Lens: A New Strategy for Innovation) 1. Execution Risk: How to deliver better than the competition the innovations valued by customers? This is the classical risk emphasized by companies. 2. Co-innovation Risk: Who else needs to innovate for my innovation to matter? Measures the likelihood of failures associated with innovation interdependencies or complements. This depends on the probability that all of your ecosystem partners will be able to satisfy their innovation commitments within a specified time frame. The key principle is that the logic of probabilities is one of multiplication, not of average. 3. Adoption chain risk: Who else needs to adopt my innovation before end customer has a chance to assess the full value proposition? Measures the likelihood that the partners placed along the value chain between the innovation and the end consumer will make the necessary adaptations to their own activities to allow planned time-tomarket. 27

28 Supply chain Strategy and Product Life Management 28

29 Case Study of Qatar 29

30 From research to innovation The envisaged and implementable RDI ecosystem Basic research Applied research Research & Development ecosystem Product/ service Innovation Ecosystem Product innovation fund Tech venture fund (start up) EIR program Co funding 500 startups free zone

31 QF RDI Funding The funding vehicles offered by QF RDI encompass a value chain stretching from idea to product: National Priorities Research Program (NPRP) Technology Development Fund (TDF) Product Development Fund (PDF) Tech Venture Fund (TVF) Supports research proposals with potential for tangible outcomes Targets researchers Generates research outcomes Supports additional research to develop promising technologies to prototype stage Targets researchers affiliated with Qatarbased institutions Generates prototype technologies Supports development of innovative products and services Targets private sector SMEs in Qatar Generates new products and services that meet local market needs Supports Qatar s tech entrepreneurship ecosystem Targets local, regional, and international tech entrepreneurs seeking seed-stage capital Generates new tech startups

32 THANK YOU 32

33 Last decade: Laying the foundation of an RDI ecosystem 33