KMME - Williams

www.km-me.com info@km-me.com 1
David Williams
Australian Society of Knowledge Management
University of Canberra
Presenta�on to KM Middle East
March 2016
Innova�on Hubs – Fad or Fantas�c!
Ge�ng value for money out of your R&D investment
Abstract
A fall in the price of oil, gas, iron ore and other commodi�es has
decimated the GDP of Australia. Major LNG projects have recently
been put on hold and a number of mines and processing plants have
closed.
The Australian Government is now looking towards new ideas in
innova�on and science to grow services in the ICT and engineering
sectors to replace the income previously obtain from the minerals
industry.
The emphasis is on start-ups to s�mulate growth through innova�on,
but this is a very high risk ac�vity with most start-ups failing within 5
years. Cri�cs claim that innova�on programs should require a robust
business case, risk analyses and measures to indicate success.
Measuring the return on investment for intangible programmes such
as innova�on are extremely challenging and open to subjec�vity and
interpreta�on.

Keywords: Innova�on, social capital, knowledge management,
intellectual capital, future, networks, learning.

  Types of hubs
  Innova�on Strategies
  Return on Investment
  Impact on the organisa�ons
Scope
Innova�on
1.  The amalgama�on of two separate steps of
Crea�vity and Implementa�on (Tushman & O’Rielly)
2.  The successful exploita�on of new ideas (Dept of
Trade and Industry, UK).
3.  A Quantum improvement for the organisa�on (Peter
Drucker, 1985)
4.  Is signiﬁcant posi�ve change (Sco� Berkun, 2013)

To be an innova�on means not only the crea�on of an
idea, but the successful delivery it to the world as a
product that makes diﬀerence.

Why do we s�ll invest in high-risk ICT start-ups?

Start-ups
  90% of startups fail within 5 years
Forbes 2015
  Causes
– Incompetence
– Unbalanced Experience or
– Lack of Managerial Experience
h�p://www.sta�s�cbrain.com/startup-failure-by-industry/

Innova�on Hubs
A physical or virtual facility that:
  builds collabora�ve communi�es with
entrepreneurial individuals at the centre.
  a�racts diverse members with heterogeneous
knowledge
  facilitates crea�vity and collabora�on in a
physical and/or virtual space, and
  localizes global entrepreneurial culture

Toivonen, T. and N. Friederici (2015)

Innova�on Hub
Case Study - Inspire
  INSPIRE is an innova�on hub and network for
new approaches to learning, communica�on
and collabora�on
  It applies design thinking and learning design
principles for educa�on to work with:
– Principals, teachers and students
– Learning designers
– Government and community organisa�ons
  INSPIRE is a learning commons, a place to
imagine, experiment and design new ways of
working and learning digitally.

Case Study – Rio Tinto
Cri�cism
  Generally do not engage with scien�sts
  Creates division
  Dissuades the majority of workers from
par�cipa�ng
  Creates ﬁghts for funding
  Requires por�olio management
  Detracts from core business

Incubators
  For would-be entrepreneurs and exis�ng and
external Subject Ma�er Experts
  Provides facili�es and exper�se to address their
needs, and
  develop their business ideas, and transform them
into sustainable reali�es.
Case Study
MaRS Toronto, Canada
  Brings together educators, researchers, social
scien�sts, entrepreneurs and business experts
under one roof.
  Founded by civic leaders, with a mission that
is equal parts public and private
  An entrepreneurial venture designed to bridge
the gap between what people need and what
governments can provide.

Accelerators
Are similar to an incubator but o�en take an
equity in externally developed ideas in return
for providing resources, support, small amounts
of capital and mentorship.

Case Study
GRIFFIN Accelerator
A group of seasoned entrepreneurs who invest
in, host, guide and partner with the founders of
selected innova�ve start-ups.
3 month intensive program gets start-ups
moving fast and achieving ini�al business
success.

Organisa�onal Success
  Long term success requires streams of innova�ons
  Need to create ambidextrous organisa�ons
  Celebrate stability and experimenta�on
  Support risk taking
  Tolerate mistakes
  Recognise/reward a�empts
Tushman and O’Reilly
Six Lessons for Corpora�ons building
internal Innova�on Accelerators
1.  Build comprehensive social
networks, internally and
externally
Alasdair Tro�er (2013)

Six Lessons for Corpora�ons
"Innova�on has nothing to do with
how many R&D dollars you have.
When Apple came up with the
Mac, IBM was spending at least
100 �mes more on R&D. It's not
about money.
It's about the people you have,
how you're led, and how much you
get it.“
Steve Jobs 1998
2. Do not throw excessive capital at early stages
3. Funding and poten�al should be based on
tenacity and crea�vity of the team and the
iden�ﬁca�on of a signiﬁcant unsolved problem,
which if solved, would create real value.

4. Develop standard prac�ces for entrepreneurial
methodology
Deﬁne the problem/opportunity
22

5. create a network of mentors and champions to
support their entrepreneurs
6. Focus on speciﬁc business func�ons or
exper�se in certain areas such as a par�cular
technology or an industry ver�cal.

Issues to be addressed
  How is funding provided?
– by whom?
– how much?
– How long?
– Priority?
  Who controls the IP?
  What is the structure of the legal en�ty
created for the business?
  What liabili�es are created?
Uncertainty
High velocity, or high uncertainty environments
require simple rou�nes, and a dependence on
people over process

(Eisenhardt and Mar�n, 2000)

Diversity
We can't solve
problems by using
the same kind of
thinking we used
when we created
them.
Albert Einstein

References and Reading
  h�ps://ia.acs.org.au/tag/innova�on
  h�ps://hbr.org/search?term=innova�on+hubs
  Leifer, R., O'Connor, G. C., & Rice, M. (2001). Implemen�ng radical innova�on in mature firms: The role of hubs.
The Academy of Management Execu�ve, 15(3), 102-113.
  Knight, J. (2011). Educa�on hubs: A fad, a brand, an innova�on?. Journal of Studies in Interna�onal Educa�on,
15(3), 221-240.
  Lange, A., Handler, D., & Vila, J. (2010). Next-Genera�on Clusters Crea�ng Innova�on Hubs To Boost Economic
Growth. Cisco Internet Business Solu�ons Group.
  Boardman, C., & Ponomariov, B. (2011). A preliminary assessment of the poten�al for “team science” in DOE
Energy Innova�on Hubs and Energy Fron�er Research Centers. Energy Policy, 39(6), 3033-3035.
  Da Cunha, I. V., & Selada, C. (2009). Crea�ve urban regenera�on: the case of innova�on hubs. Interna�onal
Journal of Innova�on and Regional Development, 1(4), 371-386.
  Tushman, M. L. (1997). Winning through innova�on. Strategy & Leadership, 25(4), 14-19.
  Leifer, R. (2001). Implemen�ng radical innova�on in mature firms: The role of hubs. The Academy of Management
Execu�ve (1993-2005), 15(3), 102-113.
  Sta�s�c Brain Startup (2016) Business Failure Rate By Industry
h�p://www.sta�s�cbrain.com/startup-failure-by-industry/
  The Steve Jobs MBA Unit 103: Connect your people
h�p://www.wired.co.uk/magazine/archive/2011/07/steve-jobs-mba/unit-103
  Eisenhardt, K. M., & Mar�n, J. A. (2000). Dynamic capabili�es: what are they?. Strategic management journal,
21(10-11), 1105-1121.
  Crea�ng the future of mining [Accessed 12 MAR 2016]
h�p://advanceqld.ini�a�ves.qld.gov.au/innovators/future-mining.aspx
  Tro�er, A. (2013) Six Lessons for Corpora�ons Building Innova�on Accelerators
h�p://www.innosight.com/innova�on-resources/strategy-innova�on/six-lessons-for-corpora�ons-building-
innova�on-accelerators.cfm
  Toivonen, T. and N. Friederici (2015) Time to Define What a “Hub” Really Is
h�p://ssir.org/ar�cles/entry/�me_to_define_what_a_hub_really_is#sthash.V44W3vxB.dpuf

Workshop 5: Using Social Capital to
Build Capability
What can you expect:
  An insight of my study on leveraging Social
Capital
  2 collabora�ve ac�vi�es to explore techniques
and aspects of Social Capital
  Prizes for winning teams
  A takeaway of the results
29
Ques�ons and Discussion
will be at this a�ernoon’s forum 30

KMME - Williams

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