INNOVATIONS AND INNOVATION MYTHSMika MartikainenBusiness presentation 30.11.2010@English for Communicating in Business –courseUniversity of Eastern Finland, Kuopio

JUST TO THINK..

In Finland

823 million euros of public money

are marked to innovation policy and companies’ internationalization

(from 2011 Budget Proposal to Parliament by Ministry of Finance)

BUT, over 90 % of innovations are done inside the firms and organizations by themselves

CONTENT

Why?

What is innovation?

Six innovation myths and examples

Conclusion and final words

Q&A

WHY? my main subject in Economics: Innovation

management

Bachelor’s and Master’s thesis: Innovation environment in Keuruu region (in social sciences, main subject entrepreneurship)

own interest

my thought: Innovation processes will be normal and continual in all organizations in the future (or maybe even today in some companies)

WHY?

innovations & innovating are ”trendy”:

European Commissions Innovation policy (2008) and Innovation Action Plan (2010?)

Finland’s National Innovation strategy (Ministry of Employment and the Economy 2008)

many regional strategies, like Innovation strategy of Eastern Finland (Tekes 2007)

WHAT IS INNOVATION?

multi-stage process where new ideas are transformed into new/improved products services processes/procedures

which are commercially exploited

so an invention/idea is not an innovation because it doesn’t add value to company/organization

INNOVATION ENVIRONMENT…

= All organizations and operators (public or private sector) in one regional area

city covernment, (regional) development companies, Tekes, Finnvera, banks, insurance companies, accountants, consultants, entrepreneurship organizations, …

and of course enterprises themselves

INNOVATION MYTHS

People – even entrepreneurs – think: innovation =

”something nonsense terminological hype from consults”

or ”it doesn’t concern me/us” or ”I’m not intrested” or ”I don’t understand”

other negative or wrong thoughts about innovations or innovating..coming next.

MYTH #1: ALL IDEAS = INNOVATION

False.

Most ideas are stupid or bad

= illegal, infeasible, nothing new..

pure idea, invention or vision = nothing ..

…if you can’t profit it commercially

MYTH #1: ALL IDEAS = INNOVATION – (BAD) EXAMPLES

sub-prime loans…

new coke in 1985 (Coca Cola Company)…

Iomega zip –drivers…

MYTH #2: CREATIVITY = INNOVATION

False.

Professor Alf Rehn has criticised: ”creativity is a buzzword”…

Erkki KM Leppävuori from VTT: ”innovation is 1 % of idea and 99 % of hard work”

MYTH #2: CREATIVITY = INNOVATION - EXAMPLES

Many big companies are creative and innovative

like Apple and Google..

Google’s offer: 20 % of work time for own projects/ideas

..but most of the projects lack

MYTH #3: INNOVATION PROCESSES ARE FAST

False.

From idea to success innovation can take even years (or decades)

Sometimes processes are fast, for example agile software development (focus on doing/coding rather than planning)

MYTH #3: INNOVATION PROCESSES ARE FAST - EXAMPLE Kitewing / Windsports.net

idea 1987 company founded 1993 in 2009: retails in over 20

countries and four employees

not so fast?

(source: Fogelholm Carl-Magnus: Tuoteideasta innovaatioksi. 2009) (Photo from Flickr.com by laazik, CC-licensed;

http://www.flickr.com/photos/laazik/3391797789/)

MYTH #4: WE DON’T NEED TO INNOVATE

False.

You probably do it all time, specially entrepreneurs

innovate = think different, ”how to make more money”

MYTH #4: WE DON’T NEED TO INNOVATE - EXAMPLE

Interviewed CEO of food industry company (~70 employees):

”innovating is necessity… because of productivity and cost-effectiveness”

MYTH #5: INNOVATING IS LINEAR AND CONTROLLABLE PROCESS

False.

Best ideas come when you expect least

Innovating = human work

Really: you can’t control others’ brain activity

MYTH #5: INNOVATING IS LINEAR AND CONTROLLABLE PROCESS - EXAMPLE

”accident”

production line failed: too few / bad glue

noticed that it sticks passable without dirty => 3M Post-it notes

(Photo from Flickr.com by riNux, CC-licensed; http://www.flickr.com/photos/rinux/631345826/)

MYTH #6: INNOVATING IS DONE BY SMALL INTERNAL TEAM

False.

Open innovation (by Chesbrough 2003)

innovation process is ’open’: innovation sources…

…from customers, subcontractors, interest groups, stakeholders, even competitors..

MYTH #6: INNOVATING IS DONE BY SMALL INTERNAL TEAM - EXAMPLES

Good example: Open Source communities

..like Linux (operating system for computers), other OS softwares

= everyone can program / be part of the innovation processes

Wikipedia.org, … Starbuck’s product ideas crowdsourcing (

http://mystarbucksidea.force.com/) , ...

CONLUSION

Innovation is creativity ideas developing commercializing, but.. slow uncontrollable process

to make new product, service or procedure to get more profit

FINAL WORDS

Keep eyes and mind open

Write ideas down and archive

Wait [or ”make”] for the right moment (or job situation) to share your idea

An entrepreneur?

Ask help from innovation environment (or tell your idea to a friend or share it in the Internet)

QUESTIONS & ANSWERS

and Thank you!

Mika Martikainentwitter.com/mikamartikainenslideshare.net/mikamartikainen