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champions of change




Technology Ventures
Dr Mairi Robertson
New Media Partners
8th July 2010
new media partners
if you don’t move forward, you’re standing still, or worse




         •   We operate on the cutting edge of technology content provision, bringing
             business people, technologists and creative people together; bringing
             clarity, honesty and focus to the table
              –   Our research and consulting arm is the knowledge hub around which the rest
                  of the business revolves
              –   Our bespoke skills development and mentoring programme, nmp Accelerate,
                  is designed to help high growth digital media businesses achieve their
                  commercial potential
              –   We help create highly distinctive Media Cities providing a physical focus for
                  digital media and technology industry activities in the development and
                  regeneration of cities
Market led R&D


Developing novel ideas


Gathering market input
Market led R&D


Developing novel ideas


Gathering market input
One approach – ITI Scotland




        Remit:
           To drive sustainable company growth in Scotland through
          ownership of commercially targeted R&D programmes that deliver
          world-class intellectual assets

        • ITI Scotland was launched by the Scottish Executive in
          September 2003
            – £450 million of funding across 3 ITIs (Intermediary Technology
              Institutes)
            – market-driven R&D centre
            – acts as a catalyst to create world class technology in the digital
              media and communications sectors
            – anticipates future market opportunities in a 3-10 year horizon
            – builds on Scotland's company and research strengths
            – identifies, commissions and diffuses pre-competitive research
            – generates and manages intellectual assets to maximise commercial
              and economic value for Scotland
ITI model
An R & D programme example:
Games based learning




        • Initial idea emerged from foresighting activity
            – growth in interactive teaching methods
            – good skills base in Scotland (strength in Gaming & education)
            – lack of tools dedicated to this market


        • Market scoping
            – in 2005, the Games Based Learning market was estimated to be
              worth $20m in Europe
                 • expected to rise over the next ten years to approximately $125m
            – the serious games movement is growing in strength and numbers
              and the market is poised to embrace this revolutionary new
              approach, if it can solve its biggest problem
            – “how to create games-based learning content quickly and easily
              without the need for specialist programmers”
Requirements were gathered in the programme development phase




       • Requirements gathering
           –   extensive market research – detailed interviews with end users
       • Identified a need for an authoring platform that met the following list
         of requirements:
           –   allows trainers to create their own games-based learning content quickly
               and easily
           –   incorporates best practice from successful e-learning and video game
               applications
           –   is compatible with existing systems and IT infrastructure within the target
               markets
           –   is suitable for use by learning facilitators, so that they can adapt and
               customize games content to deliver particular learning objectives
       • These requirements informed the R&D programme that was
         undertaken
           –   ongoing market engagement tested new ideas coming out of the R&D –
               focus spend on most desirable concepts
Importance of ongoing market validation – you’re trying to hit a moving target!




        •   The World Wide Web did not exist until 1992
        •   Internet 2 – the next generation web – has been under development
            since 1992 but is not yet open to the public
        •   It was not possible ‘to Google’ before 1998
        •   The first version of MySpace was launched in 2003
        •   The term Web 2.0 only became notable in 2004
        •   Flickr launched in 2004
        •   You Tube was created in 2005
        •   Facebook went live in 2006
        •   Twitter arrived in 2006
        •   The first internet-connected multimedia smartphone was made available
            to the public in 2007
        •   HD television was only introduced to the US as the operating standard in
            June 2009
        •   3D TV is here
        •   Super HD is already developed and on the shelf!
Market led R&D


Developing novel ideas


Gathering market input
Closed vs Open innovation



                Research              Development


                                                    New
                                                    Market



                                                    Market




                            CLOSED INNOVATION
                              OPEN
Moving to open innovation requires a change of mindset




              Closed innovation principles                                             Open innovation principles
                                                                                    Not all the smart people in the field work for
              The smart people in the field work for us.
                                                                                   us. We need to work with smart people inside
                                                                                              and outside the company.

                                                                                     External R&D can create significant value:
               To profit from R&D, we must discover it,
                                                                                   internal R&D is needed to claim some portion
                   develop it, and ship it ourselves.
                                                                                                    of that value

           If we discover it ourselves, we will get it to the                        We don't have to originate the research to
                              market first                                                         profit from it.

             The company that gets an innovation to the                              Building a better business model is better
                       market first will win                                               than getting to the market first
                                                                               .
             If we create the most and the best ideas in                               If we make the best use of internal and
                       the industry, we will win.                                            external ideas, we will win.

                                                                                    We should profit from others' use of our IP,
                 We should control our IP so that our
                                           ,
                                                                                    and we should buy others' IP whenever it
                competitors don't profit from our ideas.
                                                                                         advances our business model.

       Source: Chesbrough, H. (2003), "Open Innovation: The New Imperative for Creating and Profiting from Technology", Harvard Business School Press.
Pervasive Media Studio




                     • The Pervasive Media Studio
                         – formal partnership with UWE's Digital Cultures
                           Research Centre and support from HP Labs
                           and the South West Regional Development
                           Agency
                     • Multi-disciplinary lab exploring and
                       producing pervasive media content,
                       applications and services.
                     • Projects
                         – some are commercial, some are cultural.
                         – test projects as early as possible and iterate
Market led R&D


Developing novel ideas


Gathering market input
Use the right techniques




                             Secondary
             Brainstorming                 Focus Group
                              research



                 Survey      Workshop       Interview



               Use cases     Observation   Prototyping
Ask the right questions




        • I’m developing a new oven       • What issues do you have
            – Do you want it be gas or      cooking food?
              electric?                       – “It takes too long – I want to
            – Does it need a separate           cook food in 5 mins rather
              grill?                            than an hour”
            – Etc …
        • Answer                          • Answer
            – A slightly improved oven        – Microwave

            Issues: What are the end user’s unmet needs when doing a
            task?
            Demand: How important are they?
            Differentiator: How close do your/competitor’s products get
            to meeting the unmet needs?
Understand your customers, market position & how competitors fit


                               High performance




         Low cost                                          High cost




                               Low performance
And remember innovation is not just about the technology … commercialisation and
business model must be considered from the beginning of the R&D programme




                   10 types of innovation (Source http://www.doblin.com/)
Market-led R&D

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Market-led R&D

  • 1. champions of change Technology Ventures Dr Mairi Robertson New Media Partners 8th July 2010
  • 2. new media partners if you don’t move forward, you’re standing still, or worse • We operate on the cutting edge of technology content provision, bringing business people, technologists and creative people together; bringing clarity, honesty and focus to the table – Our research and consulting arm is the knowledge hub around which the rest of the business revolves – Our bespoke skills development and mentoring programme, nmp Accelerate, is designed to help high growth digital media businesses achieve their commercial potential – We help create highly distinctive Media Cities providing a physical focus for digital media and technology industry activities in the development and regeneration of cities
  • 3. Market led R&D Developing novel ideas Gathering market input
  • 4. Market led R&D Developing novel ideas Gathering market input
  • 5. One approach – ITI Scotland Remit: To drive sustainable company growth in Scotland through ownership of commercially targeted R&D programmes that deliver world-class intellectual assets • ITI Scotland was launched by the Scottish Executive in September 2003 – £450 million of funding across 3 ITIs (Intermediary Technology Institutes) – market-driven R&D centre – acts as a catalyst to create world class technology in the digital media and communications sectors – anticipates future market opportunities in a 3-10 year horizon – builds on Scotland's company and research strengths – identifies, commissions and diffuses pre-competitive research – generates and manages intellectual assets to maximise commercial and economic value for Scotland
  • 7. An R & D programme example: Games based learning • Initial idea emerged from foresighting activity – growth in interactive teaching methods – good skills base in Scotland (strength in Gaming & education) – lack of tools dedicated to this market • Market scoping – in 2005, the Games Based Learning market was estimated to be worth $20m in Europe • expected to rise over the next ten years to approximately $125m – the serious games movement is growing in strength and numbers and the market is poised to embrace this revolutionary new approach, if it can solve its biggest problem – “how to create games-based learning content quickly and easily without the need for specialist programmers”
  • 8. Requirements were gathered in the programme development phase • Requirements gathering – extensive market research – detailed interviews with end users • Identified a need for an authoring platform that met the following list of requirements: – allows trainers to create their own games-based learning content quickly and easily – incorporates best practice from successful e-learning and video game applications – is compatible with existing systems and IT infrastructure within the target markets – is suitable for use by learning facilitators, so that they can adapt and customize games content to deliver particular learning objectives • These requirements informed the R&D programme that was undertaken – ongoing market engagement tested new ideas coming out of the R&D – focus spend on most desirable concepts
  • 9. Importance of ongoing market validation – you’re trying to hit a moving target! • The World Wide Web did not exist until 1992 • Internet 2 – the next generation web – has been under development since 1992 but is not yet open to the public • It was not possible ‘to Google’ before 1998 • The first version of MySpace was launched in 2003 • The term Web 2.0 only became notable in 2004 • Flickr launched in 2004 • You Tube was created in 2005 • Facebook went live in 2006 • Twitter arrived in 2006 • The first internet-connected multimedia smartphone was made available to the public in 2007 • HD television was only introduced to the US as the operating standard in June 2009 • 3D TV is here • Super HD is already developed and on the shelf!
  • 10. Market led R&D Developing novel ideas Gathering market input
  • 11. Closed vs Open innovation Research Development New Market Market CLOSED INNOVATION OPEN
  • 12. Moving to open innovation requires a change of mindset Closed innovation principles Open innovation principles Not all the smart people in the field work for The smart people in the field work for us. us. We need to work with smart people inside and outside the company. External R&D can create significant value: To profit from R&D, we must discover it, internal R&D is needed to claim some portion develop it, and ship it ourselves. of that value If we discover it ourselves, we will get it to the We don't have to originate the research to market first profit from it. The company that gets an innovation to the Building a better business model is better market first will win than getting to the market first . If we create the most and the best ideas in If we make the best use of internal and the industry, we will win. external ideas, we will win. We should profit from others' use of our IP, We should control our IP so that our , and we should buy others' IP whenever it competitors don't profit from our ideas. advances our business model. Source: Chesbrough, H. (2003), "Open Innovation: The New Imperative for Creating and Profiting from Technology", Harvard Business School Press.
  • 13. Pervasive Media Studio • The Pervasive Media Studio – formal partnership with UWE's Digital Cultures Research Centre and support from HP Labs and the South West Regional Development Agency • Multi-disciplinary lab exploring and producing pervasive media content, applications and services. • Projects – some are commercial, some are cultural. – test projects as early as possible and iterate
  • 14. Market led R&D Developing novel ideas Gathering market input
  • 15. Use the right techniques Secondary Brainstorming Focus Group research Survey Workshop Interview Use cases Observation Prototyping
  • 16. Ask the right questions • I’m developing a new oven • What issues do you have – Do you want it be gas or cooking food? electric? – “It takes too long – I want to – Does it need a separate cook food in 5 mins rather grill? than an hour” – Etc … • Answer • Answer – A slightly improved oven – Microwave Issues: What are the end user’s unmet needs when doing a task? Demand: How important are they? Differentiator: How close do your/competitor’s products get to meeting the unmet needs?
  • 17. Understand your customers, market position & how competitors fit High performance Low cost High cost Low performance
  • 18. And remember innovation is not just about the technology … commercialisation and business model must be considered from the beginning of the R&D programme 10 types of innovation (Source http://www.doblin.com/)