Innovation & Entrepreneurship Full-Term Notes PDF

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OutlineWednesday, 8 January 2020 10:03 PMIntroduction - Context of the entrepreneurial manager: New venture creation - Contexts of the entrepreneurial manager: Family firms - Contexts of the entrepreneurial manager: Social and sustainable entrepreneurship - Contexts of the entrepreneurial manager: C...

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Outline! Wednesday, 8 January 2020! 10:03 PM!

"! Introduction! • Context of the entrepreneurial manager: New venture creation! • Contexts of the entrepreneurial manager: Family firms"! • Contexts of the entrepreneurial manager: Social and sustainable entrepreneurship"! • Contexts of the entrepreneurial manager: Corporate entrepreneurship"! • Group project and proposal discussion! • Entrepreneurial strategy, leadership and resource acquisition"! • Developing new innovative products/services"! • Challenges and key issues in entrepreneurial management"! "! Lecture 1 Introduction to the course! Lecture 2 The Innovation Imperative! Lecture 3 Social Entrepreneurship! Lecture 4 Globalisation, Development and Sustainability! Lecture 5 Individual & Organisational Characteristics 1! Lecture 6 Individual & Organisational Characteristics 2! Lecture 7 Sources of Innovation 1! Lecture 8 Sources of Innovation 2! Lecture 9 Searching for Opportunities 1! Lecture 10 Searching for Opportunities 2! Lecture 11 Building the Case 1! Lecture 12 Building the Case 2! Lecture 13 Exploiting Networks! Lecture 14 Developing New Products and Services! Lecture 15 Creating New Ventures 1! Lecture 16 Creating New Ventures 2! Lecture 17 Exploiting Knowledge and Intellectual Property! Lecture 18 Creating Value and Growing Ventures! Lecture 19 Presentation of Selected Group Projects! Lecture 20 Learning to Manage Innovation! "! "!

Innovation is a vital process in driving change at every level in society: organisations which fail to innovate may find themselves overtaken by competitors to the detriment of economic development and growth on a regional, national and international scale. Innovation as a process is influenced not only by what happens at the level of the organisation but also by aspects of its external environment which constitute the broader innovation system, some of which may facilitate and others impede the process. Innovation happens in both existing and newly emerging organisations when entrepreneurial thinkers leverage benefits from the external environment and marshal resources and internal capabilities to exploit opportunities, taking into account the risks.! "! This course will draw on theories of innovation and entrepreneurship to explore how effective organisations engage in these two strongly integrated processes, exploring, in particular, product, service and process innovation and demonstrating the role of innovation as a driver of organisational growth and development. Recent cases drawn from a range of sectors will be used to illustrate practical aspects associated with implementing innovation strategies and the impact of innovative and entrepreneurial behaviour on economic development.! "! "! "! "!

Questions ! Wednesday, 8 January 2020! 10:05 PM!

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May 2019 ! "! 1. Business models with similar characteristics and behaviours form into business model patterns. Describe an example of one business model pattern from Osterwalder & Pigneur’s (2010) book Business Model Generation and illustrate the application of that pattern within an industry or business. # 2. Critically discuss the arguments for and against the rigor of preparing a business plan prior to the launch of a new venture by a nascent entrepreneur. !

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"! In his book, The Lean Start-up what does Eric Reis mean by the term Minimum Viable Product (MVP). Explain why innovators increasingly develop an MVP rather than a fully functional product. ! "! Our image of an entrepreneur can be influenced with what we see on T.V. Describe a representation of an entrepreneur in film or television drama that shaped your mental image of entrepreneurship, and critically discuss whether this representation gave an inaccurate impression. ! "! Xerox did not successfully commercialise many of the groundbreaking innovations produced at Xerox Parc. Discuss whether this makes Xerox Parc a failure as an innovating organisation. ! "! Clayton Christensen argues in his 1997 book, “The Innovator’s Dilemma” that technological changes often lead to established firms going into decline. Critically discuss an example of this decline and identify reasons why this might happen. !

"! "! "! May 2018 ! "! 1. Explain why developing component innovations is less challenging than developing systemic innovations, using examples to illustrate your argument. # "! 2. Choose a country that you are familiar with, identify a technology that enjoys the support of that country’s government, and critically discuss the reasons for the government’s support. #

3. Explain how Living Labs are used by both the developers of online services and the developers of Internet devices in their

innovation processes, contrasting this approach with conventional innovation processes? ! "! 1. Why is managing a start-up social enterprise often more complex than managing a conventional start-up enterprise? ! "! 1. Describe an example of a recent successful innovative business model and critically discuss the extent to which technological changes made it possible. ! "! 1. Explain Osterwalder’s Value Proposition model for linking customer segments to an innovator’s value proposition, explaining how an innovator can gain information on their potential customers and their value map. ! "! "! May 2017 ! "! 1. Increasingly the interest of innovators, investors and analysts is on business model innovation. Explain why there has been this explosion of interest in business model innovation? ! "! 1. Explain why organisations seeking to innovate may be better off watching how heavy users of their type of product are making innovations rather than asking their existing customers what innovations they would like. ! "! 1. Explain why having a patent can help an innovative firm raise funds and discuss why patents may not always be as valuable to start-up firms as originally hoped.! "! 1. Use Osterwalder’s taxonomy of customer relationships to explain the evolution of Spotify as a music streaming service. ! "! 1. Whyisitvaluableforthefoundersofnewventurestobeabletotellstor iesthat are neither comedies nor tragedies to explain their business proposition? ! "!

1. Explain what is meant by Ries’ term Minimum Viable Product (MVP) and explain why innovators increasingly develop an MVP rather than a fully functional product. !

"! Aug 2016 ! "! 1. Use the Osterwalder/Pigneur business model canvas to describe and discuss the process of 'market segmentation' and explain how it may affect the 'revenue streams' of an entrepreneurial firm by making reference to specific examples. ! "! 1. How does innovation relate to entrepreneurship? Explain your answer by making reference to specific theories and/or examples. ! "! 1. Explain how the use of Living Labs provides the developers of new devices with information that they cannot get by revealing prototypes of their innovations to focus groups. ! "! 1. Explain how Nonaka and Takeuchi’s knowledge spiral provides innovative organisations with a guide to managing the generation and diffusion of knowledge. ! "! 1. Historically the study of innovation has focused on the development of innovative products. Explain, using two recent examples, why the focus of both researchers and practitioners has shifted towards a focus on business model innovation. ! "! 1. Explain why patents were created to encourage innovation and discuss why in many sectors there is a concern that the existence of patents may increasingly act to inhibit innovation. ! "! May 2016 ! "! 1. Frugal innovation is seen as being an important model for innovation in emerging economies. Critically consider whether entrepreneurs in Britain have anything to learn from frugal innovation. !

"! 1. Describe how closely the history of FanDuel fits with Ries’ concept of Lean Startup, critically considering how Ries’ arguments may help future developers of online services? #

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2. It has been reported that Google allow employees to spend 20% of their time working on their own projects. Explain why this policy is seen as being successful for Google but has not been copied by many other companies. ! 1. Thirty years ago the VHS standard became the dominant standard for domestic video recorders after a so-called standards war with the rival Betamax standard. Video tape recorders have slipped into history, but the case is seen to provide valuable lessons for the developers of platform innovations in conflict with the developers of rival platforms. What are the lessons of the VHS versus Betamax tussle for companies developing music streaming platforms? ! 1. Describe how entrepreneurial firms 'create value' by making reference to the 'Timmons Model' of the entrepreneurial process. !

1. Use the Osterwalder/Pigneur business model canvas to describe and discuss how entrepreneurial firms acquire and manage 'key resources' to create and offer their 'value proposition' to prospective customers, making reference to specific examples. ! "! Aug 2015 ! "! 1. Chesbrough proposed the split between “open” and “closed” innovation, arguing that open innovation has become increasingly important. With reference to examples of open innovation, explain why open innovation has become more widely applied as an innovation strategy. #

2. Ries’ Lean Startup was proposed as a model for new technology startup companies. Critically consider how dependent the method is on having accurate data about customer use. #

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3. The Lockheed Skunkworks is held up as an early example of large companies setting up separate units to develop new technologies. Explain why this may be effective and the barriers to firms setting up separate units to develop disruptive technologies. ! 1. Describe the linear model of innovation that goes from theoretical breakthroughs to the launch of new products. Using at least one example, explain why innovation, in practice, is often less linear. ! 1. Increasingly organisations recognise the strategic importance of innovation but for many employees the opportunities to be innovative are reducing. Explain this paradox and suggest how organisations can engage the widest number of employees in being innovative. ! 1. Choose a country that you are familiar with and outline the most distinctive features of its National System of Innovation, discussing whether they are strengths or weaknesses in encouraging entrepreneurs. !

"! May 2015 ! "! 1. It is claimed that Social Entrepreneurship has become a more effective way of tackling social problems than state coordinated initiatives. Using an example of a social enterprise that you are familiar with, critically discuss the advantages and disadvantages of social enterprises as a means of tackling social problems. ! "! 1. Xerox PARC was established in California in 1970 and was responsible for a string of ground-breaking innovations in the

application of information technology. Critically discuss the extent to which PARC’s model of innovation has become a model still followed by innovative organisations today. ! "! 1. In June 2014 Tesla, the US manufacturer of electric cars, made their patents in electric vehicle technologies freely available to other manufacturers. Explain the reasons why Tesla made this decision and consider whether this may be a precursor of other technology firms in other industries making their patents freely available. ! "! 1. Business plans are just stories in which the entrepreneur will be the hero/heroine. Discuss the importance of including a convincing story in an effective business plan. ! "! 1. In his 2005 book Democratizing Innovation Eric Von Hippel argued that the user is frequently a major locus of innovation. Using an example that you are familiar with, explain how a firm has enrolled its customers to drive forward innovation. ! "! 1. For start-up companies their most significant innovation may not be the product or service, but may be the development of a new business model. Using an example of a start-up that you are familiar with that has an innovative business model, discuss whether the example supports the claim that it is easier for start-up companies to develop innovative business models. ! "! Aug 2014 ! "! 1. Discuss whether Eris Ries’ concept of Lean Startup is a major innovation in how firm’s innovate. ! "! 1. New ventures can embrace open innovation through different types of collaborations. Identify the different types of collaborations and briefly describe their primary characteristics. ! "!

1. To what extent is the Google innovation model a template for work organisation in other high-growth technology businesses? ! "! 1. New ventures can embrace open innovation through different types of collaborations. Identify the different types of collaborations and briefly describe their primary characteristics. ! "! 1. How would you describe a business model? Give an example of a business model for a chosen market sector? ! "! 1. Twenty-one year old Palmer Luckey founded Oculus VR to develop 3D head- sets. The company was bought by Facebook earlier this year for £2,000,000,000. What lessons does his experience hold for other budding young entrepreneurs?! "! May 2014 ! "! 1. Critically consider whether patents act as a spur or a hindrance to innovation. ! "! 1. In developing new products or services, is it possible to give the customer too much choice? ! "! 1. Choose a country and consider how its government’s policies stimulate or inhibit the formation of high growth businesses. ! "! 1. Established universities, including the University of Edinburgh, are developing MOOCS (massive online open courses) where anyone can enrol and complete an online course. Explain whether these MOOCS are a potentially disruptive innovation as described by Christensen? ! "! 1. What is the purpose of writing a business plan and what should a business plan reveal?" ! "!

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1. Many new products fail because entrepreneurs are unable to overcome various uncertainties over the product. Briefly describe these uncertainties and how the entrepreneur can overcome them. !

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Lecture 1: Introduction to the course! Sunday, 19 January 2020! 2:57 PM!

"! There will be two components of assessment, coursework and an end of term examination. ! "! 1. Coursework 40%: Made up of a group presentation (10%) focused on the outputs of the group project and an individual reflective essay (1,500 words) based around the content of the group project (30%). ! "! 1. Closed book examination 60%: The examination will be of 2 hours duration and you will be expected to answer 3 out of 6 questions.! "! Each tutorial group will be split into two groups. Each group will choose an innovation within an organisation, or organisations, that they would like to analyse.. Ideally students should draw on direct contact with people directly involved in the innovation, as both customers and innovators. ! "! As a group, prepare a 20 minute presentation on the innovation which will be given during the final tutorial. ! "! The presentation should cover a description of the innovation and a chronology of its development, identifying the roles of key actors and strategic decisions. ! • Students will be expected to share information collected on the innovation and its context. !

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The presentations will be assessed and each group will gain a mark counting 10% of the total course mark. Peer evaluation will be used to determine aspects of the group project process. ! In addition, each student should submit an essay, maximum length 1,500 words, describing the innovation and critically relating it to one of the concepts covered in the course. ! The essay should be clearly split into a descriptive section and an analytic section. ! Student may collaborate on the descriptive sections but the analytic section, relating the innovation to the concept covered in the course, should be wholly the work of the individual student. This individual reflective essay will be assessed and count towards 30% of the total course marks.! "! Topics ! "! "! Innovation:! New ideas increasingly important for competitive advantage ! Management of knowledge and creativity ! Important for countries to foster innovation ! "! Entrepreneurship:! Significant innovations occur in start-up firms ! Significant number of start-ups fail! Perceived weakness in generating new businesses! "!

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Lecture 2: The Innovation Imperative! Sunday, 19 January 2020! 2:57 PM!

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Learning Objectives:$ "! 1 Be able to contrast incremental and radical innovation ! 1 Be able to contrast component and systematic component !

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Realise that separating product and process innovation is often difficult. !

"$ "$ Defining Innovation: “the process of translating ideas into useful new products, processes, or services“ Bessant & Tidd$ "$ Bessant and Tidd’s definition$ "“powerful mixture of energy, vision, passion, commitment and risktaking…” $ "$ Oxford English Dictionary: no definition.. but… $ Entrepreneur: “One who undertakes an enterprise; one who owns and manages a business; a person who takes the risk of profit or loss.”$ "$ Overlap between Innovation and Entrepreneurship! 1 Family businesses and owner managers, new business and require new products and new processes.! 1 Innovation and Entrepreneurship generally takes place in networks: firms, governments, funders, users. ! ◦ Importance of location ! ◦ We shall returns to networks of innovation and entrepreneurship many times. .! "$ Innovation and Entrepreneurship is influenced by:! 1 Technology Studies: ! 1 Economics: how innovation fuels economic growth ! 1 Policy Studies: government influence ! 1 Strategic Management ! "! 1 Marketing! 1 Organisational Studies ! 1 Law ! "! 1 Contrast incremental and radical innovation ! "$ Incremental: $ Producing something marginally better than current. Academics don’t get as excited about incremental innovation which affects the

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coverage of this kind of innovation, due to the bias created. $ "$ Example: KitKat covered in chocolate in UK as compared to Japan where you get Wasabi flavoured KitKat. It is much more innovative with around 40 different flavours of KitKat. If there wasn’t innovation then the popularity of KitKat might not have been in the same level. It also depends on the country and how the market will be affected by this type of innovation. $ "$ Radical:$ Produce something that is completely new. $ "$ Example: Covering vegetables with chocolate, was a trend in Japan. You are not sure that a market exists for this radical innovation. $ "! 1 Contrast component and systemic component ! "$ Most important to the economics of innovation and to the barriers to the acceptance of innovation is the distinction of component and systemic innovation. $ "$ Component: build new component for existing system, attraction of building on establishes. $ "$ Example: Internet exists, develop a software to use on computers. You know who you want to market it to. $ "$ Systemic:" propose a whole new system! 1 Attraction of being able to make components proprietary ! 1 Customers fear being locked in to one supplier, have a monopoly as the provider of this system. Customers are vary of producers offering systemic! 1 Academics like this type of innovation, as it has the potential of being radical. ! 1 Problems of critical mass! 1 Often now termed infrastructures or platforms! 1 "Risks in investing in new systemic innovation as Nescafe could stop the manufacturing of the capsules. !

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"$ Example: Nespresso coffee makers, Nescafe had a monopoly in supplying the coffee capsules, they had a proprietary technology and they could sue people who made a cheaper version. $ "$ Example: Health Care records joined up is radical change. $ "! 1 Realise that separating product and process innovation is often difficult. ! "$ Boundary between ...