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Communities of Practice and Creativiy        "
shifting innovation value                                




  Summer School on Management of Creativity in an Innovation Society
                                                                   
                    Barcelona. 13th July, 2010

                           jcramos@avanzalis.com
                                                                       1
Objectives
Why to be creative and innovative
   Knowledge era. KIA’s
“Creativity  Innovation  KIHPA” value chain
   Innovation Map
   Creativity to innovate in BM
   Creativity to launch businesses
The successful communities. Characterizing them
The Bazaar paradox




                                                   2
aware about
                      the critic role of
                         creativity




 … to shift specific types of innovation, that
drive business model transformation or create
      new activities to success in market




                                                3
4
competitiveness
                                                                           cycle
                                  New paradigms demand
                                      new capacities




                                                             Pioneers develop a new
         Consolidation of the
                                                             capacity that becomes a
       capacity as a standard
                                                              temporary competitive
       between all competitors
                                                                    advantage




                                                                     pioneers ≈ innovators
                                       The capacity is
                                  systematized and tools
                                  developed. Becomes a
                                   differentiate capacity

Fuente: avanzalis 2009
                                                                                              5
Incipient
                     Developed
             Advanced


                           Labour and natural               Eficiency and
      Impuls factors
                                                                  Knowledge
                               resources
                    productivity



    Competitiveness
                Price
                  Diferentiation
            Innovation



            Products
      Basics and consum
                     Quality
           New and Unique



Wealth and standard
                                    Low
                         Moderate
                High
            of living


countries (133)                               38 
18               
26        
 14       
37

       Source: Own elaboration based on data from CGI of WEF




                                                                                                       6
R&D




            New ideas,                                               Market success,
                                        Innovation
            knowledge
                                                   wealth




Talent

                         No method ! 
 business
          creativity
                         Almost arts
     sense
                                                                            s
                                                                     y kind
                                                             ar e man nd
                                                      There ovation a         …!
                                                         of inn uccesses
                                                               s s
                                                      b usines

                                                                         here
                                                               al g ood t !
                                                         but re ly a few!
                                                           are on



                                                                                       7
8
• Open Innovation (Chesbrough)
• User Innovation (von Hippel)
• Virtual Customer Methods (Dahan and Hauser)
• Innovation communities
• Commons-based Peer-Production (Benkler, Herstatt and Raasch)
• Crowdsourcing (Howe, Brabham)
• Personal Fabrication (Gershenfeld)
• Soft Innovation and Design Innovation (NESTA, Stoneman, Verganti)
• User Created Content (OECD)
• Value innovation (Kim and Malbourgne)
• Eco-Innovation Models (Stahel, Braungarth, Lovins)
• Service Innovation Patterns (Miles)
• Innovation in the Public Sector (Windrum and Koch)
• Social Innovation


                                                                       9
Extern
                                                          Intern

                                                         Business model
                                                           innovation
         Core competencies and
  Strategic,
                                      Value chain
                                   capacities
 significative
                                                                Global



                                                      Brand


                                      Product/ service                                              Management
Organizational,
                                         innovation
                                                 innovation
  moderate
                New products
                                             People management
                           Collaboration
                                  New markets
                                                                                                     Organization
        Partners relationships
                                          Channels



                                                                                                    Technological innovation
                                                                             Cuotidiane
 Operational,                                                                innovation
    low
                                                                                           Processes innovation




                                                                                                                                        10
http://www.guardian.co.uk/uk/video/2010/feb/08/amphibus-stagecoach-river-clyde
                                                                             11
“BMW products are moving works of art that express
              the driver’s love of quality… 
        My job is to oversee 220 artists, mediating the
      corporate pragmatism and the artistic passion and
               mind-sets within the company”*




                                                          Picture. Flickr. CC by marcp_dmoz
                                                                                   12
*Chris Bangle, global chief of design for BMW
13
Picture. Flickr. CC sergio.sergiampietri@gamil.com




                            everything seems
                                                    create brilliant
                                                     impossible to
                                                 At ground seems




                                      Picture. Flickr. CC by marcp_dmoz
                                         grey



14
                                                          ideas…
over-cloud effect®




                               15
          Copyright: Ramos, JC. 2010
KIHPAs
       




Other KIAs
         
         16
Profitability
                                    Low 
         
       
        
High




                       
High
Knowledge intensity
            KIBS
                             KIHPA’s

                                        Other KIA’s
                       
                       




                                  Comodities
                   Productivity
                       Low 




                                                                                17
3.  Scalable
                                   intensive product
                               2.  Based in a knowledge
                                                              (platform, blue ocean…)
                                                          1.  A creative Business Model
                                                                                          KIHPA




i.e.: movie industry, sw licensing model, a 1st level technological product
(computer, green energy, cars, consumer…)
18
19
Do you know any
                                       place where…?

Core activity is based on selling a commodity product…

It is a red, rotten ocean

Surprisingly they won’t serve you



  
 … and despite of this, they still success!
                                             
                                                          20
21
Business
              model


the way an organization gets profits


                                       22
Key
                                                                         Customer
        activities
                 
                                                                    relationships
                                                                                                  



    Key                                                                                   Customer
   partners
          
                                                                               segments


                                                                                              Value
   Key                                                                                      proposition
                                                                                                      
resources
        

                                                                                              Channels


  Costs                                                                                     Incomes
 structure
         
                                                                                    stream




                                                                                                      23
                     Source: bmgeneration.com. Alexander Osterwalder & Yves Pigneur
Value
                 proposition


so that customers are willing to pay


                                        24
Product/ Service Precio Lo que paga el cliente Calidad/
Puntualidad Ajustado a especificaciones y compromisos Disponibilidad/ Plazo
   Plazo de entrega   Selección/ Gama Gama de productos Funcionalidad/

Rendimiento Posibilidades del producto Relationship Servicio Apoyo al
cliente en problemas con nuestros productos/ servicios  Asociación Apoyo al cliente en su

            negocio Image Marca Notoriedad y posicionamiento, confianza




                                                                                            25
Product/ Service Price Lo que paga el cliente Quality/
Punctuality Ajustado a especificaciones y compromisos Availability/ Time Plazo de
          entrega   Selection/ Spectrum Gama de productos Features/

Preformance Posibilidades del producto Relationship Service Apoyo al
 cliente en problemas con nuestros productos/ servicios  Partnership Apoyo al cliente en su

             negocio Image Brand Notoriedad y posicionamiento, confianza




                                                                                              26
27
lessons from successful
                   communities
Common passion
gift giving economy
No path dependency
Only Talent is needed to contribute
Thousand “eyes” for reviewing and improving
Structure and Organization:
Bazaar and Cathedral mixed balance structure
Enabling Infrastructures 



                                                28
29
30
Eliminate             Reduce                  Raise                                     Create
High


                                                                                                                    spotify
Offering level




                                                                            traditional



Low

                 Printing   Distribution   Price   Marketing Advertising   Variety    Availability   Quote   Personalization




                                                                                                                               31
the bazaar paradox
                 
                               KIHPA   high profit
                                        success




                                KIBS   business
                                        viability
                     Tipping
                      point




                                         failure




                                                    32
2010. Universitat de Barcelona y avanzalis knowledge associates.
Creative Commons. Author:

Jose Carlos Ramos jcramos@avanzalis.com

Most of the pictures and compositions obtained from StockExpert, Fliker and others


You are free: to Share — to copy, distribute and transmit the work
Under the following conditions:
Attribution. You must attribute the work in the manner specified by the author or licensor (but not in any way
      that suggests that they endorse you or your use of the work).
Attribute this work: Avanzalis Knowledge Associates (www.avanzalis.com)
Noncommercial. You may not use this work for commercial purposes.
Share Alike. If you alter, transform, or build upon this work, you may distribute the resulting work only under
     the same or similar license to this one.




Do you want a speech? Comments, suggestions?
                              jcramos@avanzalis.com
                                                              33

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Communities of Practice and Creativity Shifting Innovation Value

  • 1. Communities of Practice and Creativiy " shifting innovation value Summer School on Management of Creativity in an Innovation Society Barcelona. 13th July, 2010 jcramos@avanzalis.com 1
  • 2. Objectives Why to be creative and innovative Knowledge era. KIA’s “Creativity  Innovation  KIHPA” value chain Innovation Map Creativity to innovate in BM Creativity to launch businesses The successful communities. Characterizing them The Bazaar paradox 2
  • 3. aware about the critic role of creativity … to shift specific types of innovation, that drive business model transformation or create new activities to success in market 3
  • 4. 4
  • 5. competitiveness cycle New paradigms demand new capacities Pioneers develop a new Consolidation of the capacity that becomes a capacity as a standard temporary competitive between all competitors advantage pioneers ≈ innovators The capacity is systematized and tools developed. Becomes a differentiate capacity Fuente: avanzalis 2009 5
  • 6. Incipient Developed Advanced Labour and natural Eficiency and Impuls factors Knowledge resources productivity Competitiveness Price Diferentiation Innovation Products Basics and consum Quality New and Unique Wealth and standard Low Moderate High of living countries (133) 38 18 26 14 37 Source: Own elaboration based on data from CGI of WEF 6
  • 7. R&D New ideas, Market success, Innovation knowledge wealth Talent No method ! business creativity Almost arts sense s y kind ar e man nd There ovation a …! of inn uccesses s s b usines here al g ood t ! but re ly a few! are on 7
  • 8. 8
  • 9. • Open Innovation (Chesbrough) • User Innovation (von Hippel) • Virtual Customer Methods (Dahan and Hauser) • Innovation communities • Commons-based Peer-Production (Benkler, Herstatt and Raasch) • Crowdsourcing (Howe, Brabham) • Personal Fabrication (Gershenfeld) • Soft Innovation and Design Innovation (NESTA, Stoneman, Verganti) • User Created Content (OECD) • Value innovation (Kim and Malbourgne) • Eco-Innovation Models (Stahel, Braungarth, Lovins) • Service Innovation Patterns (Miles) • Innovation in the Public Sector (Windrum and Koch) • Social Innovation 9
  • 10. Extern Intern Business model innovation Core competencies and Strategic, Value chain capacities significative Global Brand Product/ service Management Organizational, innovation innovation moderate New products People management Collaboration New markets Organization Partners relationships Channels Technological innovation Cuotidiane Operational, innovation low Processes innovation 10
  • 12. “BMW products are moving works of art that express the driver’s love of quality… My job is to oversee 220 artists, mediating the corporate pragmatism and the artistic passion and mind-sets within the company”* Picture. Flickr. CC by marcp_dmoz 12 *Chris Bangle, global chief of design for BMW
  • 13. 13
  • 14. Picture. Flickr. CC sergio.sergiampietri@gamil.com everything seems create brilliant impossible to At ground seems Picture. Flickr. CC by marcp_dmoz grey 14 ideas…
  • 15. over-cloud effect® 15 Copyright: Ramos, JC. 2010
  • 16. KIHPAs Other KIAs 16
  • 17. Profitability Low High High Knowledge intensity KIBS KIHPA’s Other KIA’s Comodities Productivity Low 17
  • 18. 3.  Scalable intensive product 2.  Based in a knowledge (platform, blue ocean…) 1.  A creative Business Model KIHPA i.e.: movie industry, sw licensing model, a 1st level technological product (computer, green energy, cars, consumer…) 18
  • 19. 19
  • 20. Do you know any place where…? Core activity is based on selling a commodity product… It is a red, rotten ocean Surprisingly they won’t serve you … and despite of this, they still success! 20
  • 21. 21
  • 22. Business model the way an organization gets profits 22
  • 23. Key Customer activities relationships Key Customer partners segments Value Key proposition resources Channels Costs Incomes structure stream 23 Source: bmgeneration.com. Alexander Osterwalder & Yves Pigneur
  • 24. Value proposition so that customers are willing to pay 24
  • 25. Product/ Service Precio Lo que paga el cliente Calidad/ Puntualidad Ajustado a especificaciones y compromisos Disponibilidad/ Plazo Plazo de entrega   Selección/ Gama Gama de productos Funcionalidad/ Rendimiento Posibilidades del producto Relationship Servicio Apoyo al cliente en problemas con nuestros productos/ servicios  Asociación Apoyo al cliente en su negocio Image Marca Notoriedad y posicionamiento, confianza 25
  • 26. Product/ Service Price Lo que paga el cliente Quality/ Punctuality Ajustado a especificaciones y compromisos Availability/ Time Plazo de entrega   Selection/ Spectrum Gama de productos Features/ Preformance Posibilidades del producto Relationship Service Apoyo al cliente en problemas con nuestros productos/ servicios  Partnership Apoyo al cliente en su negocio Image Brand Notoriedad y posicionamiento, confianza 26
  • 27. 27
  • 28. lessons from successful communities Common passion gift giving economy No path dependency Only Talent is needed to contribute Thousand “eyes” for reviewing and improving Structure and Organization: Bazaar and Cathedral mixed balance structure Enabling Infrastructures 28
  • 29. 29
  • 30. 30
  • 31. Eliminate Reduce Raise Create High spotify Offering level traditional Low Printing Distribution Price Marketing Advertising Variety Availability Quote Personalization 31
  • 32. the bazaar paradox KIHPA high profit success KIBS business viability Tipping point failure 32
  • 33. 2010. Universitat de Barcelona y avanzalis knowledge associates. Creative Commons. Author: Jose Carlos Ramos jcramos@avanzalis.com Most of the pictures and compositions obtained from StockExpert, Fliker and others You are free: to Share — to copy, distribute and transmit the work Under the following conditions: Attribution. You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). Attribute this work: Avanzalis Knowledge Associates (www.avanzalis.com) Noncommercial. You may not use this work for commercial purposes. Share Alike. If you alter, transform, or build upon this work, you may distribute the resulting work only under the same or similar license to this one. Do you want a speech? Comments, suggestions? jcramos@avanzalis.com 33