Innovation is a multilevel phenomenon. Not only attributes of firms but also the framework conditions within which firms operate matter. Although this has been recognized in the literature for a long time, a quantitative test that explicitly considers this hypothesis has been lacking.Read more

The objective of this treatise is to help readers understand the management of innovation networks [...]]]>

Networks have become an important organization form for creating and disseminating innovations in many sectors. Innovation networks can help to cope with the demands of increasing competition and rapidly changing markets. This view has established also in the logistics sector.

The objective of this treatise is to help readers understand the management of innovation networks based on a case study that examines how the DHL Group, one of the world’s largest providers of logistics services, organizes its innovative activities with its network partners.

The special focus is the network management and competitive advantages for DHL resulting form the network. The network of DHL Solutions & Innovations (DSI), a business unit in which the DHL Group bundles and coordinates its innovation activities, is described and analyzed. DSI utilizes a large international network of heterogeneous partners, which is largely being controlled through focal means and which is configured dynamically. Functions selection, allocation, regulation and evaluation are stringently organized within this innovation network and are highly formalized. The advantages of the chosen organizational format for the network are explained on the basis of the resource oriented approaches and the transaction cost theory.

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To get a glimpse of what tomorrow’s young global managers might be like as leaders, take a look at how today’s young people think about communications.

For one thing, they are devoted to connectivity. In a recent survey of more than 2,800 college students and young professionals in 14 countries, Cisco found [...]]]>

From HBR

To get a glimpse of what tomorrow’s young global managers might be like as leaders, take a look at how today’s young people think about communications.

For one thing, they are devoted to connectivity. In a recent survey of more than 2,800 college students and young professionals in 14 countries, Cisco found that more than half said they could not live without the internet, and if forced to choose, two-thirds would opt to have an internet rather than a car. This intense desire to be connected leads to a demand for greater flexibility: Two out of five people said they’d accept a lower-paying job if the position offered greater flexibility on access to social media, the ability to work from where they chose, and choice on the mobile devices they could use on the job. Tomorrow’s young managers will share these attitudes, and workplaces will inevitably become more flexible.

For another thing, social media is quickly overtaking phones and email and becoming the dominant form of communication. Young people are driving this change, with the one-to-one mode of interacting giving way to a one-to-many mind-set. Young leaders will use social media to create a running dialog with their employees and colleagues, issuing constant updates about their projects and ideas. Employees will use it to provide instantaneous input and feedback. Workers, via this medium, will insist on having a voice in shaping the company’s vision and strategy.

The demand for increased connectivity and flexibility and greater use of social media will shape and change companies from the inside out. Companies will need to think hard about these questions:

• What is the appropriate level of openness? Should employees be prevented from slamming their bosses’ ideas, for example? Should managers be restricted in the kinds of things they can say to or about employees?

• How much blurring of public and private life is too much? Social media encourages people to mix work- and nonwork-related communication, but some workers prefer to keep their social lives strictly off-limits.

• How can the company prevent abuse of social media? Things can get ugly quickly — all it takes is one thoughtless comment. Employees and managers need to know that there will be serious consequences for any misuse of this potentially combustible form of communication.

• When employees from VPs to interns are sharing company information on Twitter, on Facebook, and in blogs while your competition is watching, how do you ensure that your employees understand what information is confidential and what is public?

As companies resolve these issues, management styles will evolve. The days when a leader can confidently say “I know best” will come to an end. Managers will no longer be able to communicate with just a small circle of trusted advisers — they’ll be expected to interact digitally with a much broader range of people both inside and outside the company.

Not every company will be pleased by this turn of events, of course, but those that embrace it will have new competitive opportunities. With knowledge flowing more freely throughout the organization and decisions being made more quickly, the company will be able to react more nimbly to the ever-increasing pace of change.

This post is part of the HBR Insight Center, The Next Generation of Global Leaders.

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Open innovation is key to the success of iHub and can change the working culture of any community of innovators, says Linda Kamau.

iHub is a network and meeting place that enables Kenya’s innovators to bring their ideas to fruition. Through iHub, the technology community, industry, academia, investors and venture capitalists [...]]]>

From SciDev
Linda Kamau

Open innovation is key to the success of iHub and can change the working culture of any community of innovators, says Linda Kamau.

iHub is a network and meeting place that enables Kenya’s innovators to bring their ideas to fruition. Through iHub, the technology community, industry, academia, investors and venture capitalists can meet, share ideas and collaborate.

The centre is the first of its kind to operate in Kenya. It allows technologies to progress from the ideas stage to becoming real products and the key to its effectiveness is open innovation — the process of combining internal and external ideas, as well as internal and external paths to market, to advance the development of new technologies.

iHub has embraced the principles of open innovation by nurturing an enabling environment and a collaborative space where a community of technology entrepreneurs can grow and share ideas. This process can change the working culture of any technology hub and stimulate its capacity to create innovative products.

Open innovation

iHubs work by embracing principles of open innovation. They are driven by members who work together on common interests. Through the space provided by iHub, members develop the skills they need to turn their ideas into actions: they build a vivid vision, a team and a business plan, with help from an in-house business unit. The dynamic synergy created by these interactions is what fuels the community as a whole.

Membership is open and free to those who work in programming, design or research. There are three levels of membership: ‘white’ members are those who wish to be part of the iHub community virtually, but cannot be physically present; those who work on specific projects (‘green’ members) can have face-to-face meetings, socialise, and surf the web; ‘red’ membership offers a semi-permanent desk and priority to use the meeting room, for a monthly fee.

Internet connectivity is often a core part of supporting start-up development. The electronic arts brand Zuku has provided iHub with affordable, high-speed Internet, which helps to accelerate collaborations among members.

With its institutional values of integrity and community, entrepreneurism, quality and continual improvement, iHub offers a welcoming, open and happy environment where members can share experience, skills and friendship.

The collaborative space facilitates open discussions among young entrepreneurs, investors, potential business partners, mentors and other members experienced in working with telecommunication companies such as Google and Nokia.

Sharing knowledge is vital; an isolated community of people in a hub, looked after by a privileged few, will not survive for long. A knowledge-sharing culture built up through collaboration, start-ups helping each other, skill sharing and mentorship are key features of the iHub community.

At an individual level, iHub members strive to improve their skills and knowledge about relevant issues or current trends by engaging with the resources available through the open innovation space, such as education events and mentorship from experts within the community.

Innovations taken to market

Several innovations have arisen out of the iHub model of collaboration.

M-Farm was invented by young Kenyan Jamila Abass. It is a mobile-phone service that delivers real-time information to farmers on current market prices, weather alerts and agro-supplies in their area. It also brings farmers together to buy or sell their products in groups, helping them to gain access to larger markets.

M-Farm enables farmers to carry out a cost-benefit analysis before deciding where to sell their products. The analysis is based on the profile of their business, as well as market prices in different countries. It also answers their queries through the interactive voice response function, with voice controls in both English and Swahili.

Another mobile phone application, iCow, helps in the management of herds by allowing farmers to receive tailored information, for example, about cattle prices and veterinary care.

Innovations such as the eLimu tablet computer are helping Kenyan primary school students to improve their test scores and IT literacy. This is intended to boost their engagement in learning and promote responsible citizenship for sustainable development through education in environmental conservation, applied science, agriculture and human rights.

The eLimu tablet has a simple design and includes features such as 3-D animations to help students understand complex ideas, games to strengthen cognitive thinking, quizzes and access to online Q&A forums with teachers.

The accounting package Uhasibu helps small and medium-sized enterprises to work within Kenya’s legislation and procedures. For a small subscription fee, the online application can be used to generate VAT reports, monitor petty cash and keep track of payments without buying expensive financial management software.

The open innovation process adopted by iHub is not just a powerful tool, but a choice to engage in the 21st century in an entirely different way. It is about co-working, using ideas and knowledge from both within and outside the community, and creating paths to market for new technologies.

Linda Kamau is a software developer at Ushahidi, a non-profit technology company, based in Nairobi, Kenya.
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