Presentation isc mshow
-
Upload
david-keck -
Category
Education
-
view
25 -
download
0
Transcript of Presentation isc mshow
1
Thinking about
Innovation and Entrepreneurs
hip
2
Thinking about
Innovation and Entrepreneurs
hip
3
4
The 1st Machine Age
5
6
Forbes Top 100 Companies1917US Steel AT & TStandard Oil of NJBethlehem Steel Armour & Co.Swift & Co.International Harvester EI du Pont Midvale Steel and Ordinance US Rubber General Electric International Mercantile MarineAmerican Smelting & RefiningAnaconda Copper Mining Standard Oil of NYPhelps Dodge Singer Manufacturing Jones & Laughlin SteelWestinghouse ElectricAmerican Tobacco
7July 13, 1987
Forbes Top 100 Companies
8
1917 1987US Steel International Business
MachinesAT & T ExxonStandard Oil of NJ General Electric Bethlehem Steel AT & TArmour & Co. General Motors Swift & Co. EI du Pont International Harvester FordEI du Pont MerckMidvale Steel and Ordinance AmocoUS Rubber Digital Equipment General Electric Phillip MorrisInternational Mercantile Marine Chevron American Smelting & Refining Sears, RoebuckAnaconda Copper Mining MobilStandard Oil of NY Bell SouthPhelps Dodge Eastman KodakSinger Manufacturing Standard OilJones & Laughlin Steel Hewlett-PackardWestinghouse Electric Coca-ColaAmerican Tobacco Wal-Mart Stores
9
Forbes Top 100 Companies
Of the Top 100 in 1917, how many remained in the Top 100 in 1987 ?
18 11 with the same name 7 with a new name or via merger
Forbes Top 100 Companies
10Source: Forbes, July 13, 1987
Growth in Market Capitalization CAGR % 1917 – 1987General ElectricEastman Kodak
DuPontSears Roebuck
Ford MotorGeneral Motors
ExxonProctor & Gamble
AmocoWestinghouse
ChevronDow Jones Average
MobilTexaco
Forbes Magazine Price Pacific Gas & Electric
CitibankSouthern California Edison
AT&TUS Steel
7.8%7.7%
7.2%6.9%6.9%6.9%6.9%
6.7%6.5%
6.0%5.9%
5.2%4.9%
4.7%4.6%
4.2%3.8%
3.3%2.8%
2.1%
11
“ … the dangers of complacency can be seen …”
“…they brought about their demise with an unwillingness to change.”
121975 1980 1985 1990 1995 2000 2005 2010 2015 20200
10
20
30
40
50
60
70
80
90
Was Kodak Unwilling to Change ?
Mega pixels = year 1.23
13
14
15
Businesses throw around the term to show they’re on the cutting edge of everything …. But that doesn’t mean the companies are actually doing any innovating. Instead they are using the word to convey monumental change when the progress they're describing is quite ordinary.
16
September 2015
The 20 most used buzzwords in Australian online media in 2015
Innovation/ innovate212,944Collaboration
120,311Selfie
59,646Best practice
24,867Agile
20,480Big data
16,650
17
18
“Over the 20th century, innovation has become quite a valuable buzzword … the term [innovation] may soon cease to be current, emptied of all meaning by constant overuse.” John Pocock, 1971
“Innovation has come to mean all things to all [people] and the careful student should perhaps avoid it wherever possible, using instead some other word.” Edward Ames, 1961
Quotes from Benoit Godin, Innovation Contested, 2015
19
Marco Polo
Adventurer Merchant
Christopher Columbus
Adventurer Mercantilist
20
Entrepreneurone who undertakes a project such as manufacturing or building
1723
Richard Cantillon
Richard Cantillon
211730 & 1755
22
Richard Cantillon“except the Prince and the Proprietors of Land, all the Inhabitants of a State are dependent; they can be divided into two classes, Undertakers and Hired people; The Hired people are on fixed wages …. All the rest are Undertakers, whether they are set up with capital to conduct their enterprise, or are Undertakers of their own labour without capital, and they may be regarded as living at uncertainty.”
Adam Smith
23
1759 1776
Adam SmithAdventurer“One who hazards, or puts something at risk, as merchant-adventurers”Projector “One who forms wild or impracticable schemes”Undertaker“One who undertakes; one who engages in any project or business”
Webster’s Dictionary, 1828
25
InnovationInnovation means something new, but it has contracted a bad sense, it means something new and bad at the same time.
Jeremy Bentham 1824Innovation: change made by the introduction of something new… often used in an ill sense, for a change that disturbs settled opinions and practices
Webster’s Dictionary 1828
26
Economic Progress
27Ian Morris, Why the West Rules – For Now, 2010
Economic Progress
Thomas Malthus
281798
Thomas Malthus
29
Agricultural production
Agricultural production required
Years
Outp
ut
Labor & land −> outputoutput = f ( labor, land )
Classical Economics
30
output = f ( labor, land, capital )
Jean-Baptiste Say “The entrepreneur launches and manages an enterprise by combining the means of production - labor, land, capital, natural agents, and knowledge.”
1803
John Stuart Mill
321848
Diminishing returns of land and labor could
“be suspended … by whatever adds to the general power of mankind over nature, and especially by any extension of their knowledge, and their subsequent command of the properties and power of natural agents.”
Gabriel Tarde
33
social development is
driven by innovation which
comes from invention and its adoption through
imitation1890
Joseph Schumpeter
“the champion of innovation and entrepreneurship”
“… perhaps the most powerful thinker ever on innovation, entrepreneurship, and capitalism.”
Joseph Schumpeter
35
The … stimulus to economic development is innovation …
defined as the commercial application of something new …
Joseph Schumpeter
36
[innovation] … must be distinguished from invention.
As long as they are not carried into practice, inventions are economically irrelevant.
An innovation is a new combination
of productive means that
appear discontinuously
Joseph Schumpeter
37
1934
New combinations• New good• New method• New market• New source• New
organization
Joseph Schumpeter
38
1934
Joseph Schumpeter
Innovation as a rule is embodied
in new firms which generally
do not rise out of the old ones
Theory of Economic
Development1911
39
Joseph Schumpeter
Theory of Economic
Development1911
40
The carrying out of new combinations, we call enterprise,
the individuals whose function is to carry them out, we call entrepreneurs.
Joseph Schumpeter
41
[The entrepreneur’s] chief function in society was to challenge established ways of doing things.
The leader type appears only when [innovative] possibilities present themselves
42
Innovation As Adoption
43
an idea, practice, or object that is perceived as new by an individual or unit of adoption
Everett Rogers 1962
Growth through Technical Change
44
TECHNICAL CHANGE AND THE AGGREGATE
PRODUCTION FUNCTION
Robert M Solow
1957
45
output = technology f ( labor, capital )Solow
output = f ( labor, capital )Classical
Innovation as Economic Growth
46
Growth through Technological Change
output = f ( capital, labor, technology, human capital)
ENDOGENOUS TECHNOLOGIAL
CHANGE
Paul Romer
1990
Technology
47
A means to fulfill a human purpose
Method, process, or device
Brian Arthur 2009
48
Lean startup / launch pad
Steve Blank
A startup searches for a business model ; a business executes a business plan
Startups are not smaller versions of large companies
Uncertainty: Unknown products and unknown markets
Small or MediumEnterprise
Bill Aulet MIT
Innovation Driven Enterprise
Business
Technology
Human Values
IDEO & Stanford Design School
Businessviability
Technologyfeasibility
Human Values
desirabilityusability
IDEO & Stanford Design School
Innovation
Novel
Disruptive
Wicked Problems
Extreme Uncertainty
Changing and conflicting
requirements
Problem formulation and solution are
coupledRittel & Webber, 1973
Educational Focus
The innovator
The wicked problem solver
The methods and processes supporting
innovation
55
Information is the resolution of uncertainty
Thank You for your interest and
attention !!