innovation and entrepreneurship uai experience

Why do we teach innovation?(and how) THE UAI EXPERIENCE

Inti NuñezAssistant [email protected]

Ramón MolinaExecutive [email protected]

Six years ago, the UAI Business School, decided that innovation and entre-preneurship will be a fundamental matter in his development. A cornerstone that adds value together with UAI’s strong links with firms, business leaders and public policies institutions.

Thanks to UAI’s vision and its model that connects business, technology and design the Business School has been able to develop a distinctive in-sight of a world trend, which is design thinking. Sony, Apple, IDEO, and BMW represent good examples of companies that are leaders in this tech-nological wave.

This document remarks UAI Business School commitment to innovation. It shows why it is kept as core and how a complex ecosystem has been built that supports this vision.

Contents

1

2

Context: Issues / Trends that drive our design

The UAI experience

The current MBA market dynamic· The changing social contract for science and the evolution of the university

· Rethinking the MBA: business education at crossroads· The design of business· LATAM opportunity

Teaching Innovation and entrepreneurship· A new value for innovation· Innovation`s nature

The UAI Model· Model· Undergraduate· Graduate

UAI EcosystemSome Figures

1. Context Issues / Trends that drive our design

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The MBA market current dynamic

P. Feres para el Consejo de Innovación (2008); B. Martin (2003): The Changing Contract for Science and the Evolution of the University, Science and Innovation; H. Etzkowitz (2005): Second Academic Revolution: The Incubation of Innovation; R. O’Shea, T. Allen and K. Morse (2005): Creating the Entrepreneurial university: The Case of MIT

Medieval Social Contract European Social Contract Vannevar Bush Social Contract New Social Contract

The changing social contract for science and the evolution of the university

Universities as guardians/keepers of the

truth/knowledge

Universities as responsable of knowledge expansions/

spread

Science, the endless frontier connected to development

xvii - xvii xviii - xx second half of xx 80`s to now

TEACHING SCIENCE DEVELOPMENT

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Martin, B. (2003). The changing social contract for science and the evolution of the university, in A. Geuna et al. (eds.) Science and Innovation: rethinking the rationales for funding and governance. Edwar Elgar: Cheltenham.

“The triple helix theory”

“New revised social contract”Martin 2003

“...fifth phase that can be called the institutional reconfiguration of the university”

Geuna 1998

“The entrepreneurial university”Leydersolorff Etzkowitz 1998

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Martin, B. (2003). The changing social contract for science and the evolution of the university, in A. Geuna et al. (eds.) Science and Innovation: rethinking the rationales for funding and governance. Edwar Elgar: Cheltenham.

Boundaries between University & society are being redefined

“The triple helix theory”

“New revised social contract”Martin 2003

“...fifth phase that can be called the institutional reconfiguration of the university”

Geuna 1998

“The entrepreneurial university”Leydersolorff Etzkowitz 1998

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Rethinking the MBA: business education at crossroads

Datar, S., Garvin, D. and Cullen, P. (2010) Rethinking the MBA: business education at crossroads. Harvard Business Press. Boston, Massachusetts.Lagace, M. (2010) What is the future of MBA Education?. Interview to Mr. Datar and Mr. Garvin. Harvard Business School, Working Knowledge.

WALL STREET MESSAGE

Greed is good” Gordon Gekko

I created nothing. I own” Gordon Gekko

FINANCIALCRUSH

In 2006, 52% of Chicago Booth graduates took jobs in financial service

FINANCIALCRASH

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WALL STREET MESSAGE



“A recent report by the Association to Advance Collegiate Schools of Business points out, we need research that is more practice – oriented and interdisciplinary”

FINANCIALCRASH

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WALL STREET MESSAGE



“Rebalancing must occur”Srikant M. Datar

FINANCIALCRASH

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The common question we heard was about the value added of an MBA degree. In every interview, deans and executives returned repeatedly to the question, as well as to a large set of unmet needs that they identified in areas such as:

Leadership developmentSkills at critical, creative and integrative thinkingUnderstanding organizational realities”

David A. Garvin

123


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harvard medical school

16510.00017

students per year

affiliated hospital

faculty ?Datar, S., Garvin, D. and Cullen, P. (2010) Rethinking the MBA: business education at crossroads. Harvard Business Press. Boston, Massachusetts.Lagace, M. (2010) What is the future of MBA Education?. Interview to Mr. Datar and Mr. Garvin. Harvard Business School, Working Knowledge.

IS THERE A VISION FOR BUSINESS SCHOOLS

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From a mystery to a heuristic (not algorithm)

Moore, W. and Tushman, M. (1982) Managing Innovation Over the Product Life Cycle in Readings in the Management of Innovation, eds. Michael L. Tuschman and William L. Moore, Boston, MA: Pitman. Martin, R. (2009) The design of business. Harvard Business Press. Boston. Massachusetts

maturity

growth

low cost strategy

differentiation strategy

initial stage

HEURISTIC ALGORITHMMYSTERY

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The design of business

Martin, R. (2009) The design of business. Rotman Management

Modern firms must become more like design shops

From Traditional Firms...

Flow of Work Life

Source of status

Style of work

Mode thinking

Dominant attitude

...To “design shop”

· Ongoing tasks· Permanent assignments

· Projects· Defined terms

· Defined roles· Wait until it is “right”

· Collaborative· Iterative

· Managing big budgets and large staffs

· Solving “wicked problems”

· Deductive· Inductive

· Deductive· Inductive· Abductive

· We can only do what we have budget to do· Constraints are the enemy

· Nothing can’t be done· Constraints increase the challenge and excitement

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LATAM opportunity

The Economist, September 2010

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LATAM opportunity

The Economist, September 2010WEF 2010

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LATAM opportunity

The Economist, September 2010WEF 2010

LATAM needs to work in the last 5 factors

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A new value for innovation

BCG 2009 Senior Executive Innovation SurveyBCG 2009 Senior Executive Innovation Survey; BCG Value Science Center Analysis

40

Perc

enta

ge o

f res

pond

ents

30

20

Top priority

Top three priority

Top tenpriority

Not apriority

25

39

26

1010

0

Where does innovation rank among your company`s strategic priorities?

Innovation Remains a Top Strategic Focus for the Majority of Companies

Three and ten-year annualized total share-holder-return premiums of innovative com-panies compared with their industry peers

Innovative Companies are Superior Investments

Innovation is now recogni-zed as the sin-gle most impor-tant ingredient in any modern economy”

The Economist

18

44.3

2.6

1.0

2.8

1.31.0

17.7

5.5

2

0

Annu

aliz

ed T

SR p

rem

ium

(%)

Global Innovators

Three year premium Ten year premium

Americas Innovators

EuropeanInnovators

Asia PacificInnovators

Teaching creativity &

entrepreneurship

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BCG 2009 senior Excecutive Innovation Survey, BCG 2008 Senior Excecutive Innovation Survey, BCG 2007 Senior Excecutive Innovation Survey, BCG 2006 Senior Excecutive Innovation Survey

There is a lack of knowledge about managing innovation”

40

60

20

2006 2007 2008 2009

52

4643

52

80

0

40

60

20

2006 2007 2008 2009

7267

63

58

80

0

40

60

20

2006 2007 2008 2009

41

30 2926

80

0

Percentage of respondents who say they are satisfied with their company´s return on innovation spending

Percentage of respondents who say their company will increase innovation spending in the co-ming year

Percentage of respondents who say their company will increase innova-tion spending significanty (by more than 10%) in the coming year

Persistently low satisfaccion with innovation ROI may be weighing on spending plans


entrepreneurship

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BCG 2009 senior Excecutive Innovation Survey

20

30

10

Moving quickly from idea gene-ration to

initial sales

Enforcing projects ti-

melines and milestones

Ear marking sufficient

funds

Balancing risk time frames and returns across the portafolio

Partnering with suppliers and others of

new ideas

Developing a deep unders-

tanding of customers

Ensuring excecutive

level suport

Fostering a culture of innovation

4541 40 39 38 38

32 31

40

50

0

How strong is your company`s current perfomance in each of the following innovation capabilities?

Speed and Discipline are companies`greatest challenges

Percentage of respondents who said “below average” or “poor”


entrepreneurship

There is a lack of knowledge about managing innovation”

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Based in Stephen J. Kline & Nathan Rosenberg Model

Market Evaluation

Design &Testing

Redesign& Adaptation

CustomerInteractionConception

Research

Knowledge

both public and proprietary

Public, practitioner, proprietary

Innovation - Commercialisation

Kline & Rosenberg`s Systemic ModelTeaching

creativity & entrepreneurship

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entrepreneurship

Based in Stephen J. Kline & Nathan Rosenberg Model

Innovation is process (dynamic)

is systemic (not linear)

is complex

Market Evaluation

Design &Testing

Redesign& Adaptation

CustomerInteractionConception

Research

Knowledge

both public and proprietary

Public, practitioner, proprietary

Innovation - Commercialisation

Kline & Rosenberg`s Systemic Model

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entrepreneurship

Amabile, T. (1996). Creativity and Innovation in Organizations. Harvard Business School Publishing. Boston.

resources

INNOVATION

management practices

organizational motivation

task motivation

CREATIVITY

expertise

creativity skills

IMPACTS

Work Enviroment

Individual/Team Creativity

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entrepreneurship

Amabile, T. (1996). Creativity and Innovation in Organizations. Harvard Business School Publishing. Boston.

resources

INNOVATION

management practices

organizational motivation

task motivation

CREATIVITY

expertise

creativity skills

IMPACTS

Work Enviroment

Individual/Team Creativity

Innovation

is practical knowledge: experiences, abilities, skillsis people, leadership and culture, motivationis enviroment, ecosystem, association, team-upis strategy and management practices

context


entrepreneurship

100

90

50

40Non innovators

Scott Cook

Pierre Omidyar

Michael LazaridiaMichael Dell

Associating Questioning Observing Experimenting Networking

This chart shows how four well known innovative entrepreneurs rank on each of the discovery skills. All our high profile innovators scored above the 50th percentile on questioning, yet each combined the discovery skills uniquely to forge new insight

How Innovators Stack Up

uai

Dyer, J., Gregersen, H. and Christensen, C (2009) “The innovator´s DNA”. Harvard Business Review, December, Boston.

percentile

context


entrepreneurship

100

90

50

40Non innovators

Scott Cook

Pierre Omidyar

Michael LazaridiaMichael Dell

Associating Questioning Observing Experimenting Networking

This chart shows how four well known innovative entrepreneurs rank on each of the discovery skills. All our high profile innovators scored above the 50th percentile on questioning, yet each combined the discovery skills uniquely to forge new insight

How Innovators Stack Up

uai

Dyer, J., Gregersen, H. and Christensen, C (2009) “The innovator´s DNA”. Harvard Business Review, December, Boston.

percentile Teaching innovation represents a challenge for management education

2. The UAI Model and Experience

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the uai model

Gomez, A. & Villena, M (2005), UAI

The UAI model

tech

nolo

gy

design

business model

entrepreneurs

innovators

Business Ecosystem

CUSTOMER

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the uai model

We created (and managed) 8 new work-shops that re-cieve more than 3.000 students per year”

Undergraduate

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the uai model

MSc I&E, Master of Science in Innovation & Entrepreneurship

Two specialized graduate programs

MI, Master of Innovation

Graduate

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the uai model

landing concentraciónbuilding business foundations(4 weeks) (16 weeks)(24 weeks)

innovación y cultura desi. thinking gestión innov.

8 electivosIntl.

week

proyecto tesis

transform. organiz.

inn. y etrepr. biz. models biz. plans

building business foundations focus

(12 weeks) (12 weeks)

fundam. innovación

gestióninnovación

proyecto final

transform. organiz.

Cult. innovdesign think.

Biz. mod. y plan

(12 weeks)(12 weeks) (6 weeks)(6 weeks) (6 weeks)1 1 1

MBA Full time Executive MBA (EMBA) F/S

From 2011, every UAI MBA will attend to a minium 5 courses in a special innovation track

Context and cultureDesign ThinkingManaging InnovationBusiness model and planOrganizational transformation

Graduate

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the uai model

landing concentraciónbuilding business foundations(4 weeks) (16 weeks)(24 weeks)

innovación y cultura desi. thinking gestión innov.

8 electivosIntl.

week

proyecto tesis

transform. organiz.

inn. y etrepr. biz. models biz. plans

building business foundations focus

(12 weeks) (12 weeks)

fundam. innovación

gestióninnovación

proyecto final

transform. organiz.

Cult. innovdesign think.

Biz. mod. y plan

(12 weeks)(12 weeks) (6 weeks)(6 weeks) (6 weeks)1 1 1

MBA Full time Executive MBA (EMBA) F/S

Context and cultureDesign ThinkingManaging InnovationBusiness model and planOrganizational transformation

More than 350 MBA students per year with special training in innovaton and entrepreneurship

From 2011, every UAI MBA will attend to aminium 5 courses in a special innovation track

Graduate

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ecosystem for innovation & entrepreneurship

Ecosystem

In developing economies we have not only the challenge of identify business opportunities and extraordinary entre-preneurs, but also to establish an ecosystem of innovation and entrepreneurship that make possible the miracle of having rapid growth companies with global reach.

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Mission - Vision

· The most efficient ecosystem of innovation and entrepre-neurship, to facilitate the dynamic creation of new busi-nesses, in both established companies and new ventures.

· Relations with those who design the future in various fields, providing methodological support, infrastructure support, networks, expertise, training. We will be partners of the creators of new business areas in the region and the world.

· Reinforce our research teams, innovation, packaging - de-sign, orchestration systems, and global and regional net-works.

From the School of Business at the UAI will position us as the

benchmark in the region of “doing” innovation and entre-

preneurship at the global level.

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Let s̀ have a little tour...

Universities and technology centers are developing strong and large ecosystems around the world. For example: Boston cluster, MIT, UC group, networks, Standford, Oxforbridge, UCL...

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Cambridge (USA)

CAMBRIDGE ENTREPRENEURS

Company Founders

Strong Academic Links

Membership of organizations

MultipleDirectorships

Mentoring

BusinessAngels

Source: Yim M. Myint, Shailendra Vyakarnam

Cambridge entrepreneurs play several roles

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Silicon Valley

Source: Unknow male entrepreneur

Mobile workforce

of qua-lified &

technical talent Mentors

/ informal network

Venture specific services

University strengths in

IT, biotech & business

Government organizing

the economist structure

Sources of funding

Media / Press

THE ENTREPREUNER

“Stem” of assumptions

Flower Petal ModelThis Model named by a male ven-ture capitalist, illustrates the sup-porting network that exist in Silicon Valley to accelerate and sustain succesful entrepreneurship

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Silicon Valley

Source: Unknow male entrepreneur

Mobile workforce

of qua-lified &

technical talent Mentors

/ informal network

Venture specific services

University strengths in

IT, biotech & business

Government organizing

the economist structure

Mobil Labor:Must be experienced, talented and numerous. Critical for senior manage-ment talent to stay within the ecosys-tem. Ideas and knowledge to be shared within an acceptable framework of patents, copyrights and open sources

Capital and experience:Service firms, founding sources and former entrepreneurs –serving as ad-visors– provide experienced guidance and access to various forms of capitals (real and virtual) at every stage of a company`s development

Sources of funding

Media / Press

THE ENTREPREUNER

“Stem” of assumptions

Flower Petal Model

Government:Can establish an economic

structure that`s favorable to entrepreneurship

University-Industry connectionsUniversities serve not only as a training ground in business or technology, but

also as a sourse of breakthrough ideas, talent and relationships

Media:Influences culture and perception of

high-growth business as important contri-butors to the economy and a way of life;

looking at entrepreneurshio as an hono-red profession, promoting both success

and faiture stories.

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ecosystem for R&D &

entrepreneurship

ChileKnowledge suppliers

Financing

Sophisticate suppliers

Starting up

Markets

Culture & Society

Regulaty framework

Venture capitalsSeed capitalGuaranty fundsAngel investors

Local MarketsInternational Markets

CorporationsCompetitiveness of sectors

Legal IssuesAccounting tax issues

IP protectionBranding

Product design

Focused public policyIntellectual propertyMKII - IIIShareholders agreementNDAEasy mechanism to open & close new Co

Value of being entrepreneurTolerance to failure

To live outside / englishDiversity

Role ModelsNetworking

Openess to Innovation

Scientifics labs - R&DAvailables technologieAccess to associationsUniversity incubatorsNetwork - all entrepreneursNetwork of key partnersNetwork users & clientsAccess to technical people

Asset CapitalRaw Materials

DYNAMIC & INNOVATIVE ENTERPRISES

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ecosystem for R&D &

entrepreneurship

UAI BUSINESS SCHOOL

we are working in two levels

12

Technology Transfer Ecosystem

Triple Helix Networks

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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

Empresas

Empresas

Empresas

Empresas

Empresas

Empresas

Incubadoras

Inversionistas

Emprendedores

Consorcios investigación

Emprendedores

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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

Núñez, I. (2010)

technology tranfer systemstructure

Administration service platforms: · Accounting· Proyect managent· Events / Difusion· Innovation technology platform· Strategyc Partnership management

Academic offer/Innovation and entrepreneurship products & services: · Research centers· PHD· Masters· Certificate· Executive education· Reasearch and publications

Technology transfer ecosystem: · Centers· Labs· Programs

System of funds: · Prouf of concepts· Early stage· I + D· Angels· Venture capital

1

5 4

3Governance Board · Representative· Executive

Policies PI 2

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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

Technology transfer ecosystem: There are different business units created , TOP DOWN & BOTTOM UP, by universities, faculties or schools to response the innovation and entrepreneurship challenge. These units are created spontaneously from academic , firms and go-vernment demands. It is necessary to establish policies that regulate activity, for example: intellectual property policy.

1

Núñez, I. (2010)

1technology tranfer systemstructure

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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

Governance board: Board that drive institutional policies, power distribution and authorities role and other. In addition, it is worried about performance (strategy and control), synergies, scale economies, information, brand, growth, and delivery stan-dards. Intellectual property and conflict of interest policies: these issues are central in a technology transfer system.

1

Núñez, I. (2010)


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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

Academic offer/ Innovation and entrepre-neurship products and services: System of technology transfer must be connect with acade-mic university offer, both systems must talk generating lear-ning , this process could generate new models, feedback, contacts, which add experience and service quality.

1

Núñez, I. (2010)


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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

Administration service platforms: administrative units that offer support at: accounting, pro-ject management, events & diffusion, information techno-logy platform, strategic partnership management

1

Núñez, I. (2010)


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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

System of funds: Technology transfer system needs a system of funds align-ment with projects management process, funds that sup-port: research, development, innovation and entrepreneur-ship. This system provides: negotiation capabilities, power, independence, other.

1

Núñez, I. (2010)


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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem system arquitecture & roles

Technology Transfer System Academic Group I&ETechnology Transfer Board

Venture LinkCorporate Governance of the system

OctantisCorp entrepreneurshipNew ventures

Venture LabLast mile innovationOutsource R&DPatenting

Southern Angels

Proof of concepts

PrivateFund

R&D fund early stage

Design LabCommunity understandingPrototypingDesign support

Tecnological Infraestructure

Highly specializaed human capital

Center for I&EResearchAwarenessEducation

Academic ProgramsMaster en InnovaciónMaster en Gestión y empren-dimiento tecnológico

Support PlatformsProject managementAccountingEvents

Others · Companies· Alumni UAI· Entrepreneurs· Government

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ecosystem for R&D &

entrepreneurship

UAI1. Ecosystem

business modeltransfer system

INFRASTRUCTURE VALUE PROPOSITION CLIENTES

Core CapabilitiesBrandCredibilityResearches in Tecnologhy Unfraestructure and asso-ciated services Understanding of techno-logy transfer Financial Capacuty

Cost StructureLeveraging HR costs, distribution and technology infrastructure with the university systemR & D investment by public subsidies; HR areas from recent graduates and engineering curricula, the lower the market cost.; Royalty by brand UAI.

Income / ProfitSale of technology infrastructure services and consulting; Participation in% of sales revenue administration; Participation in % of utility-related business, other businesses, investment funds.

Value UAI TTSbeing a member and support the extension activity of teachers and departments providing: resources, administrative support, brand (credibility), partnerships, staff, infras-tructure, management control, negotiation and dissemination.

PositioningBusiness ExcellencePrestigeInnovation from demandTransparencyEfficiencySecurityConfidenceProximity to private Part-ner Companies

ClientsCompanies wanting to move in: R & D innovation, sophisticated markets, certified.Ministries who wish to certify processes, access to complex engineering ser-vices, advance innovation in the country challenges

DistributionTop down, contacts, con-fidence. Looking for part-ners rather than clients

University AlliancesR&D network Large companiesInternational players of TTInvestorsStakeholders SNIC

ProcessesInnovation and entrepre-neurshipServicing Administration NegotiationDiffusion

NUMBERS

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ecosystem for R&D &

entrepreneurship

UAI2. Triple Helix 1

we truly believe in a deep collaboration between companies, the state and the universities”

The state helping with the initial funds to create the spinCompanies leading the process of new venture creation Universities transferring knowhow and capacities to companies

123

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ecosystem for R&D &

entrepreneurship

UAI2. Triple Helix case study

movistar innova

123

MOVISTAR INNOVA is the first corporate entrepre-neurship initiative where the state, a company and a university work together.

Open innovation: more than 1000 projects presented and 25 new companies supported

Creation of a corporate incubator

New entrepreneurship culture in Movistar

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ecosystem for R&D &

entrepreneurship


movistar innova

Open innovation: more than 1000 projects presented and 25 new companies supported

Creation of a corporate incubator

New entrepreneurship culture in Movistar

123

MOVISTAR INNOVA is the first corporate entrepre-neurship initiative where the state, a company and a university work together.

Value creation · open innovation · strategic orchestration

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ecosystem for R&D &

entrepreneurship


venture lab

KNOWLEDGE

$

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ecosystem for R&D &

entrepreneurship


venture lab

Closeness with companies

Understanding of science and business

World class know how networks

123

VENTURE LAB is a unique platform designed to con-nect science and business.

We transform early stage re-search into applied research for various industries.

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ecosystem for R&D &

entrepreneurship


venture lab

patents ip protection

go to market open innovation

corporate r&d

technology transfer

last mile commercialization

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ecosystem for R&D &

entrepreneurship


tecnology transfer from antartica to markets

1 2 3

Bioreactor 1.0 Production 2,5x Prototype 3D Production 400 x

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ecosystem for R&D &

entrepreneurship


tecnology transfer from antartica to markets

Patents is just the first step

1 2 3

Bioreactor 1.0 Production 2,5x Prototype 3D Production 400 x

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ecosystem for R&D &

entrepreneurship Just focus on:

I D E A S

innovation

design

entrepreneurship

action

sustentability

some figures

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More than 3000 undergraduate students per year in entre-preneurship, innovation and business practices workshops

More than 500 graduate students with courses in innovation and entrepreneurship

More than 350 MBA students per year with courses in entrepreneurship and innovation

Students from more than 8 countries taking entrepreneurship and innovation courses

3.000500350

8

uai context

Branch in US, Miami Program

Dual degree with US TOP 10National MBA1st

some figures Innovation and entrepreneurship has enabled us to generate:

Inti NuñezAssistant [email protected]

Ramón MolinaExecutive [email protected]

innovation and entrepreneurship uai experience

Business

business education

business leaders

harvard business school

innovation innovation

future of mba education

design context uai

harvard business press

current mba market dynamic