technology & the - city hr...entrepreneurial revolution dr gorkan ahmetoglu agenda •technology...

Technology & the Entrepreneurial Revolution

Dr Gorkan Ahmetoglu

AGENDA

• Technology has unleashed Innovation & Entrepreneurship

• Competitive advantage is a function of innovation

• Which is a function of people and the ecosystem they’re in

Start-up rate as % of total employment (OECD, 1955-2013)

Is the world becoming more Entrepreneurial?

Source: Thomson Reuters, Derwent World Patents Index, 2017

Source: Thomson Reuters, Derwent World Patents Index, 2017

Innovation Diffusion

Time-span for innovation reaching 50% household penetration

• Telephones 70 years

• Radio 28 years

• Internet access 10 years

Innovation Diffusion

Time-span for innovation reaching 10 million users

• Facebook (2004) 852 days

• Twitter (2006) 780 days

• Google+ (2011) 16 days

Technological Effects

1. Efficiency/Productivity

2. Changing workforce

3. Changing Business models

4. Exponential innovation

FALC?

Technological Side-Effects

52% of the companies in the Fortune 500 have gone bankrupt, been acquired or ceased to exist since 2000 (2015)

My company will need to become more innovative to survive and thrive in the next 10 to 15 years

Y/N?

To what extent is your company’s success dependent on innovation?

Source: Accenture

My company has a clear strategy for becoming more innovative in the next 10 to 15 years

Y/N?

• Only 7% of executives consider their companies capable of addressing the effects of technology-driven changes

• Only 27% say that innovation is fully integrated into their strategic planning

Sources: Ernst & Young, McKinsey, Harvard Business Review

How do companies become more

entrepreneurial?

First rule

Second rule

• People can only innovate if they have the tools (resources), are allowed to, and encouraged to innovate

“Entrepreneurial Ecosystem”

Innovation output =

Entrepreneurial Talent X Ecosystem

Entrepreneurial Talent X Ecosystem

Relative and Contextual

Not Absolute and General

Conditional Element

Key Questions

1. How do I compare to my competitors in entrepreneurial talent?

2. How do I compare to my competitors in entrepreneurial ecosystem?

Identifying the Entrepreneurial

What do 70% of entrepreneurs have in

common?

They fail

9 years of research with UCL, Harvard, NYU

Studies with over ¼ million people in 25 countries

More than 100 empirical studies

Identifying Entrepreneurial Talent

Identifying Entrepreneurial Talent

Original

Opportunistic Proactive

Visionary

https://www.amazon.co.uk/Handbook-Entrepreneurship-2-V-Set/dp/1118970837

Brain Activation of High vs. Low META Scorers

Assessments

Identifying Entrepreneurial Talent with 85% accuracy

But can you nurture/handle them?

The Innovation Ecosystem

SENIOR LEADERSHIP

LINE MANAGEMENT

TEAMWORK

IDEATION

KNOWLEDGE

DECISION MAKING

REWARD

Ecosystem Components

To what extent do you agree with the following statements?

Leaders in my organisation...

1. Have a bolder, more inspiring vision for the business than competitors Y / N

2. Are more open to testing new ideas than competitors, even when these ideas are challenging or risky to implement Y / N

3. React quicker to market threats and opportunities than competitors Y / N

In my organisation…

1. Rewards for teams that come up with innovative new ideas are higher than that of competitors Y / N

2. We are less afraid of taking risks than competitor organisations Y / N

3. People are less afraid to do things differently than in competitor organisations Y / N

Where do you stand relatively?

Component Relative score

Senior Leadership Above

Line Leadership Above

Teamwork Average

Decision-Making Average

Knowledge Average

Ideation Below

Reward Average

Where do you stand relatively?

Component Relative score

Senior Leadership Below

Line Leadership Below

Teamwork Average

Decision-Making Below

Knowledge Average

Ideation Below

Reward Average

High EngagementLow Turnover

Modest innovation

Modest innovationLow Engagement

High Turnover

Low InnovationModest Engagement

High InnovationHigh Engagement

Low TurnoverIn

no

vati

on

Eco

syst

em

Entrepreneurial TalentLow High

Low

High

Akhtar, Ahmetoglu, Tsivrikos, & Chamorro-Premuzic (2018)

Disruption is Real…

and

In every industry changed by disruption,

the net effect has been total market growth

Thank youg.ahmetoglu@ucl.ac.uk