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Showing posts with label Business Collaboration. Show all posts
Showing posts with label Business Collaboration. Show all posts

Sunday, January 22, 2017

Competing Through Joint Innovation 01-22


The Chinese telecommunications company Huawei recently has made significant inroads into European markets using a strategy of innovation partnerships with customers and governments.





Image credit : Shyam's Imagination Library

Emerging markets such as China and India have become the growth drivers of corporate R&D initiatives from all around the world. Although there is growing evidence that Chinese companies are shifting their innovation focus from cost savings to knowledge-based research, the view by many in the West remains that companies based in emerging markets are not ready to take over the role of leading innovators from their Western competitors. As a result, Chinese multinationals have been at a competitive disadvantage, particularly in strategic technology industries.

What can Chinese multinationals do to overcome Western barriers to entry in strategically important technology industries in which “Made in China” or “Designed in China” are viewed as negatives? What dynamic innovation capabilities — or, put another way, what culturally specific processes — should companies focus on to gain acceptance in the competitive global marketplace?

To answer these questions, I studied Huawei Technologies Co. Ltd., the Chinese telecommunications company that has recently made significant inroads in Europe’s mature and strategically important telecommunications industry. (See “About the Research.”) Huawei, which is based in Shenzhen, is one of the first Chinese multinationals to be competitive in the West in a strategic technology industry, making it a potential role model for companies in China and other parts of Asia that hope to transition from being a follower to being a market leader.

To achieve its position, Huawei has aggressively pursued a strategy of joint innovation with leading European customers and governments. In this article, I will discuss how Huawei worked closely with European customers to develop joint innovation capabilities. In the process, the company was able to emerge as a leader in telecommunications in Europe.



Thursday, April 16, 2015

Start-up Innovation: Who Else Shares Your Partner’s Bed? 04-17

Start-up Innovation: Who Else Shares Your Partner’s Bed?



Strategic partnerships can be essential to a start-up’s innovation output. But are your partner’s other alliances affecting the value you get out of the relationship?


A new company’s performance is often judged by its innovation outputs. The greater the output the greater the competitive advantage it will have in the marketplace, and the more likely it is to attract the financing and resources necessary to survive. Gaining access to diverse sets of knowledge and recombining this knowledge in new and interesting ways are key drivers of innovation output, particularly for early stage start-ups. Forming strategic alliances is an important route to accessing these knowledge-based resources. 
But a strong partner for your company is often a good fit for your company’s competitors as well. It’s generally the case that when it comes to young businesses the more like-minded companies there are working in close proximity with one another, the more innovative and productive they are likely to be, but what is often overlooked is the competition that arises when these companies compete for the attention and resources of a shared alliance partner.

Although the value your company might achieve when it comes to a future M&A or IPO might be higher with a more connected alliance partner, when it comes to relationships where deeper, ongoing interactions are necessary – like R&D alliances – the “non-scale free” nature of your partners’ resources could mean that you end up fighting for your partner’s time and attention.
When it comes to the knowledge production process, valuable innovation outcomes are more likely to arise when your partner can devote a larger share of mind to your relationship.
My recent study Alliance Portfolios and Resource Competition: How a Firm’s Partners’ Partners Influence the Benefits of Collaboration, looked at 281 fledgling venture capital-backed biotech companies and found that when a start-up’s R&D alliance partners had a higher share of R&D alliances in their portfolios, together with a greater overlap in the R&D function between their own relationship and that of their partners’ partners, then access to shared resources was diminished, innovation output was lower, and the benefits for the start-up of collaborating with the partner were thus significantly reduced.
But not all alliances will have this effect. The study also found that when start-up firms in the sample could draw on a larger pre-existing knowledge base, thereby capturing a higher share of the knowledge spillovers that occurred through ongoing interactions between themselves and their partners, the downsides of any R&D alliance overlap were diminished. In addition, a higher level of functional overlap between a firm’s alliances and those of its partners were found to be beneficial in boosting the firm’s legitimacy and enhancing its value when it became time to exit, particularly when the alliances in question were marketing-oriented.
It’s a complicated scenario, but one that highlights the importance of knowing who else shares your partner’s ‘bed’, what their relationship involves, what resources they need, and how much attention they are receiving from the alliance.  It also highlights the need for companies to ensure that they are more attractive to the shared partner. If resources are constrained, then it is the start-up with the larger knowledge base and the mechanisms to codify incoming knowledge and put it to productive use that will be more likely to attract the shared partner’s attention and resources.
Strategic partnerships are essential to innovation, but scrutinising a potential partner’s resource portfolio is not enough. The nature of those resources is conditioned by the characteristics of the potential partner’s other relationships.  It’s important to think about how they have configured these relationships and the number of other partners who will be competing for their non-scale free resources.
Before entering into alliances start-ups should identify what their objectives for the relationship are, what resources and space will be allocated to them, and how much time and attention the strategic partner is able and willing to give. Not taking these issues into account can affect the future innovation prospects of your company.

Thursday, March 26, 2015

Collaboration, from the Wright Brothers to Robots 03-26

Collaboration, from the Wright Brothers to Robots





Watson and Crick. Braque and Picasso. The Wright Brothers. Wozniak and Jobs … and Jony Ive. Great collaborations all. Transformative. But what really made them work? How did collaborative relationships so ingeniously amplify individual talent and impact? Was there a secret to success?

When I wrote the book Shared Minds: The New Technologies of Collaboration 25 years ago (!), I found technology central to the answers. The book was the first to explicitly examine how tools and technologies shape creative collaboration in science, business, and the arts. I argued new technology would invite and inspire new forms of collaboration. Like communication, collaboration would have to become more networked and more digital.

But what I didn’t know — and couldn’t anticipate — was how overwhelmingly collaboration’s creative past would influence its innovation future. Successful collaborators don’t just work with each other; they work together through a shared space. 

Shared space — whether physical, virtual or digital — is where collaborators agree to jointly create, manipulate, iterate, capture and critique the representations of the reality they seek to discover or design. This holds true for collaboration around products, processes, services, songs, or the exploration of scientific principles. Shared space is the essential means, medium, and mechanism that makes collaboration possible. No shared space? No real collaboration.

James Watson and Francis Crick didn’t do a single experiment on their way to discovering the double helix and winning the Nobel Prize. But the shared space of their helical metal models proved indispensable to their collaborative success. Wilbur and Orville Wright pioneered wind tunnel designs and tests as shared space for flight design. Steve Wozniak and Steve Jobs, and then Jony Ive, relentlessly prototyped digital devices like obsessive perfectionists.

Character, cognition, and creativity remain undeniably important. But they play out in the collaborative context of shared spaces where the real work gets done. It takes shared space to create shared understandings. That’s the key.

Take, for example, when Tim Berners-Lee had just launched the World Wide Web at CERN — in no small part to help facilitate global collaboration in high-energy physics. It was clear that digital media offered radically different properties than, say, blackboards, whiteboards, and faxes for empowering shared space. Expanding the bandwidths of shared space accelerated opportunities for shared insight.

A quarter century later, the diversity and intensity of digital innovation remains astonishing. But, looking back to look forward, three particular collaborative themes stand out. They’re important because they say more about the human aspects of collaborative relationships than the technological ones. As most digital innovators know, improving technological performance is easy, elevating human performance is what’s hard. Technology remains an indispensable ingredient. But enabling collaborators to get greater value from their shared spaces remains both the most rewarding and frustrating challenge. Here’s what managers need to be thinking about:

Collaborative culture, behaviors, and norms. Knowing what I’ve observed and know now, if I rewrote Shared Minds, I would invest more care and thought into understanding collaborative cultures, not just collaborative relationships. What makes a scientific discipline or artistic community or academic institution or R&D group energized and excited about embracing shared spaces to make collaboration simpler, more accessible, more effective, and more satisfying? How does collaboration become as much a value and a behavioral norm as a core competence and pragmatic means to creative ends?

By emphasizing great collaborations, I inadvertently minimized and marginalized broader cultural contexts. Companies and cultures that celebrate heroes and entrepreneurs and visionaries all too frequently communicate that collaborative relationships are inferior to individual genius. That may not be the intent, but it is surely an outcome. Of course, technology impacts culture, too. 

We live in a time where undetected plagiarism is becoming harder even as public attribution and acknowledgement are becoming easier. All human behaviors live in cultural contexts. Living collaboration as a value is intellectually and emotionally different than just practicing it as a skill. This issue deserves top-management attention and respect from every organization that takes collaboration seriously. Being a holding company of shared spaces and collaborative talent is radically different from actually being a collaborative company.

Collaborative scale. My historical examples of collaborative success were almost exclusively duos, trios, and small groups of intensely creative and committed individuals. The shared space dialogue or conversation dominated. I once half-jokingly remarked that perhaps the future of collaborative conversations would be “kilologues” and “megalogues”… and then came Wikipedia!

Networked reality now offers the intimacies of small team shared spaces where a core three or four can iterate and innovate to their collective minds’ content. But it’s equally possible to craft, scale, and mass produce shared spaces that encourage millions — 100s of millions? — of individuals to collaborate. Is a recommendation engine a collaborative shared space? Is a Kickstarter? Should we think of crowdsourcing as a prototype for mass collaboration? Or is crowdsourcing less shared space than mass exploitation? That might depend, of course, on how one chooses to define “shared” and “sharing.” Sharing  — and its rules — are about as human a behavior as one can find. Scale has huge impact on how sharing is perceived and realized.

Truly successful collaborations have an inherent quid pro quo — that is, the collaborators all know that their individual contributions are meaningful, essential, and acknowledgeable. That’s as true for Watson and Crick as it is for Jobs and Ive as it is for Google’s Larry Page and Sergey Brin. But what happens to those quid pro quos as scale skyrockets into the millions or billions is unclear. The Internet does brilliantly at technically scaling individuals, teams, and organizations. But, emotionally and culturally, how exponentially do networked collaborations scale? That question represents a huge entrepreneurial and institutional opportunity for innovators. If you’re Amazon, Twitter, Facebook, Salesforce.com, or LinkedIn, the answer could be worth 10X to your market cap.

Synthetic collaborations. By far the biggest technical change (to me) since Shared Minds publication has been the pervasive rise of machine learning. The ability to extract and abstract meaningful patterns from humongous datasets is transforming how human beings create and recognize economic value. The onrushing internet of things only accelerates — or exacerbates — that trend. The unavoidable implication? Our best, most loyal, most indefatigable, most challenging, and most creative collaborators may be our machines. Centaur chess is the prototype here. There’s no inherent reason why smarter machines won’t be superb — or superior — collaborators in all kinds of shared spaces.

The rise of synthetic collaboration revitalizes the importance of collaborative culture and scalability. Will tomorrow’s organizations encourage, value and/or reward person/machine collaborations the way they do purely human ones? Similarly, will the most effective human collaborators succeed by having intimate collaborations with two or three machines/devices/programs? Or will harvesting the collaborative contributions of millions of machines become the gold standard in new value creation and discovery? 

Much the way the best machine learning programs make it relatively easy to “train” machines to become pattern recognition experts and recommendation engines, no great conceptual or technical leaps are required to anticipate machine learning software that can be trained to collaborate with other machines. Again, the internet of things may quickly evolve into an “internet of collaborative things” that learn how to create or discover new opportunities for value creation. Collaboration is a behavioral choice, as well as a cognitive capability. Machines now have both. Should they be imbued with collaborative temperaments, as well?

Before the decade ends, oncologists, radiologists, and other medical specialists will be successfully collaborating with networked machine learning systems that recommend diagnoses and interventions that they would not have thought of on their own. The financiers, lawyers, accountants, and auditors won’t be far behind. 

Neither will software developers nor cloud services managers. Arguably one of the most important professional decisions they’ll be making each and every day is whether they’d be more effective collaborating with people, machines or some particular, value-added combination. The best machines — not unlike the better humans — will help innovate shared spaces, not just better collaborate in them. In essence, smartphones will computationally evolve into smarter collaborators. Shared minds need not be human.

That’s why the future of better collaboration is better technology … and the future of better technology will be better collaboration. Full circle.