Cambridge Judge Business School Discussions on Innovation

A new five-day Executive Education programme, 'Making Your Organisation Innovative', aims to embed innovation as a core organisational activity rather than the work of one department. Professor Stelios Kavadias says the programme will explain the importance of properly leveraging a key driver of innovation - creativity. Creativity lies not just with individuals but it requires many individuals to collaborate so that ideas flow and new solutions can emerge and be tested.

Macroeconomist Michael Kitson argues that a new and much broader innovation policy is needed to create meaningful economic growth. Although investing in technology innovation is important for long-term growth it will not address the current need. A new and broader innovation strategy should have innovation operating within a system and not just in individual markets. Essential are exchanges of ideas, and the building of both knowledge and networks to help deliver a more innovative economy.

Western demand for frugal innovation has surprised the authors of a book published a year ago, urging the West to look to India, Brazil and China for new approaches. The book - "Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth" - was co-authored by Jaideep Prabhu, Jawaharlal Nehru Professor of Indian Business & Enterprise. He says the amount of interest shown by the West, from both smaller entrepreneurs and larger companies innovating for Western markets, has been particular striking.

Cambridge Judge Business School and its Belgian counterpart Vlerick in Brussels are among the most prominent business schools in Europe. Together they are offering a unique programme on strategy and innovation. The two schools are meeting a demand underlined in recent research indicating that one in four companies fails to effectively leverage and commercialise new ideas.

Professor Michael Barrett has been studying a mobile phone-based solution that offers financial access for populations that have no bank accounts in emerging economies. Called M-Pesa ('M' for mobile, and 'Pesa' a Swahili word for money), it was developed by Sagentia in Cambridge and Vodafone.

According to Professor Balram Bhargava, India is poised to lead the way in a decade of innovation underpinned by the need to be frugal, simple and affordable.

Entrepreneurship and innovation are subjected to too much 'sound-biting and cliche-ing' says Lord Dennis Stevenson, the driving force behind Cambridge Judge Business School's 'Leadership in Action' series that annually attracts high-profile leaders to share their experiences with MBA students.

Peter Thomas, Director, Transforming Whitehall, Institute for Government and Keith Jordan, Managing Director, Hitachi Rail set out their approach to transformation, innovation and success in times of economic restraint.

Daniel Calleja-Crespo, Deputy Director General, European Commission says the blurring of boundaries between manufacturing and services creates new opportunities for business growth and many new jobs.

As European economies bump along the bottom a new approach to manufacturing industries is helping to make businesses more successful in the longer term. Companies which have traditionally manufactured products are now branching out into the service sector. "The Servitisation of Manufacturing" is leading to new alliances and collaborations both in the private and public sector with lessons for all to learn.

Research by Cambridge Judge Business School's Centre for Business Research (CBR) explodes three major myths that have underpinned innovation policy thinking in the UK and elsewhere for decades and identifies the importance of 'lead customers' in the innovation process. CBR Senior Research Associate David Connell explains why the American Small Business Innovation Research (SBIR) programme is the model to follow.

New research into the UK newspaper industry, the US car rental market and the US bond markets shows how dominant firms can be very innovative. Dr Vincent Mak explains why they do it and what macroeconomic conditions are needed to encourage these innovations.

"Collaborative innovation" is the new buzz word for global firms wanting to enlarge their share of the pie. Working closely together in an eco-system is a better bet than competing alone, says Dr Chander Velu.

Dr Ramesh Mashelkar is helping to lead the 'inclusive technology' revolution in India, with 28 honorary doctorates to his name, he told the Centre for India & Global Business how science was a changing landscape.

Dr Chander Velu, an expert on Business Model Innovation, says firms like Google and Thomson Reuters are already aware of how new technology and new entrants to their markets are leading to radical change in their sectors.

In the 1970s, the instant camera company Polaroid was riding high with a reputation for innovative, cutting-edge products. It was in that decade, however, that it made a decision to launch a new, highly ingenious fully integrated instant camera and film system called the SX-70, a decision that would have dramatic and devastating consequences for the company. Dr Kamal Munir of Judge Business School shows in this research how a seemingly innocuous technical decision to develop a new innovation can have unforeseen consequences on a company's production system, supply chain, vendor networks and the financial markets.

"To a certain extent, the failure of banks following the credit crunch was the result of business model innovation," says Judge Business School's Dr Chander Velu, co-author of new research in this field.

Firms and governments across Europe and North America are banking on innovation, or the successful commercial exploitation of new ideas, to kick start economies and help save the west from the current economic crisis and looming recession. Professor Jaideep Prabhu at Judge Business School challenges the consensus that legislation at country level is the best way to boost the ability to innovate within firms and countries. He argues instead that in today's rush to innovate, the successful economies will be those whose firms have internalised attitudes and practices that foster innovation into their corporate.

As the worst recession in recent history takes root worldwide, managers are doing what they always do in tough times: first they start worrying, and then they start cutting costs. This is a natural response to try and balance the books when revenues have started to dry up and credit is hard to come by, but cutting costs involves only half the equation and ignores a more strategic response that could cause less pain in the short run, and result in more gain in the long run. Namely: to use the opportunity provided by hard times to introduce serious innovation into the business, in particular to innovate the firm's business model. This begs the questions: what is a business model, and what does innovating a business model involve? Professor Jaideep Prabhu explains, using Amazon.com as an example of a successful business model innovation that shook the world.

Incorporating high-technology in low-cost products, offering more product choices and turning high-end specialty products into competitively priced mass market items, Chinese companies are rewriting the rules of business. So argues Professor Peter Williamson of Judge Business School in his book, Dragons at Your Door, co-authored with Professor Ming Zeng.

Professor Williamson believes that in 2009, for the first time, it will be the emerging economies who will be providing 100% of the world's economic growth. Their ability, in particular China's, to successfully unlock access to mass markets by providing affordable 'value for money' new technology, is a key driver of their growth. This cost innovation model, he explains, can offer the West invaluable lessons on how to survive the current global economic downturn.

Necessity, goes the adage, is the mother of invention. Alas, mere invention is not good enough these days. Far more important is converting inventions into innovations: namely, products and services that improve consumers' lives and firms' performance. Just ask Steve Jobs and all those who rush to buy every new fruit which falls from the Apple tree. How then can entrepreneurs and firms improve their ability to convert inventions into innovations? Professor Jaideep Prabhu gives his views.

IBM's Steve Street explains why the financial meltdown, which demonstrates the limitations of a purely financial model, will motivate a move towards multiple sources of value. Services are crucial for our economy, the crisis has shown this very clearly, therefore it makes sense to look more scientifically at this important part of our society. We are, Steve believe, on the cusp of a radical transformation in the way services are delivered.

From cranes to bulldozers the East is playing leap-frog with R&D and jumping over the Western economies.

Kola Karim, CEO of Shoreline, explains why being local is best.

Peter Hiscocks is enabling innovation in Abu Dhabi to help the rich Emiratis' strategic long term growth.

Navi Radjou discusses 'polycentric innovation' and explains why Western companies are going East.

Diverse teams within multinational companies thrive on innovation says Professor Lynda Gratton.