Arctic Innovation 360º Professor Ping Lan University of

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Arctic Innovation 360º Professor Ping Lan University of Alaska Fairbanks, USA April 2012 for Arctic Innovation 360º Professor Ping Lan University of Alaska Fairbanks, USA April 2012 for NAr. FU & SKOLKOVO

Agenda Meaning & Features of Innovation Routines for Realizing Innovation Promote Innovation in Arctic Agenda Meaning & Features of Innovation Routines for Realizing Innovation Promote Innovation in Arctic Region: Alaska Experience Copyright © Ping Lan

1. Meaning & Features of Innovation Innovation Copyright © Ping Lan & Creation Waves 1. Meaning & Features of Innovation Innovation Copyright © Ping Lan & Creation Waves Evaluation Importance Bottleneck

Innovation & Creation Innovation is a portion of creation wave, which enables human beings Innovation & Creation Innovation is a portion of creation wave, which enables human beings to surf on the creativity, and rupture the previous achievements. Innovation is not limited to products. Innovation enables us to get something from nothing or next to nothing. Innovation keeps changing. Copyright © Ping Lan

Innovation Waves Innovation Long Waves Iron Water power Mechanization Textile Commerce 1 1785 Petrochemicals Innovation Waves Innovation Long Waves Iron Water power Mechanization Textile Commerce 1 1785 Petrochemicals Electronics Aviation Space Green Tech Digital networks Biotech Software IT 5 4 3 Chemicals Internal 2 combustion engine Steam power Railroad Steel Cotton 1845 Copyright © Ping Lan 1900 TQ SV DR GL CSR Short Waves 1950 1990 2030 Time

Multi-Criteria for Judging Innovation Function feasibility—Innovation is tied to science and technology development (techpush) Multi-Criteria for Judging Innovation Function feasibility—Innovation is tied to science and technology development (techpush) Cost effectiveness—Innovation is realized through market acceptance (market-pull) Social sustainability—Innovation is confined to collective consciousness. Copyright © Ping Lan

Importance of Innovation As a compass (Ford) Every organization—not As the only way (Microsoft) Importance of Innovation As a compass (Ford) Every organization—not As the only way (Microsoft) just business—needs one core competence: INNOVATION --Peter Drucker (1995) As a denominator (P&G) Copyright © Ping Lan Is imperative (GE)

Innovation Bottleneck Many aspects of innovation ◦ ◦ ◦ Inventor/innovator. Laboratory. Legal system. Infrastructure. Innovation Bottleneck Many aspects of innovation ◦ ◦ ◦ Inventor/innovator. Laboratory. Legal system. Infrastructure. Correlation. Types. Head box. Breaking head box is an important and difficult job. Copyright © Ping Lan

2. Routines for Realizing Innovation source, funnel & stages Innovation paths Innovation approaches/tactics Copyright 2. Routines for Realizing Innovation source, funnel & stages Innovation paths Innovation approaches/tactics Copyright © Ping Lan

Innovation Sources Ideas ◦ Novel ◦ Useful ◦ Implementable Ideas ◦ Core ◦ Supporting Innovation Sources Ideas ◦ Novel ◦ Useful ◦ Implementable Ideas ◦ Core ◦ Supporting Copyright © Ping Lan Genius is not at all a divine and rare gift…but is the destiny of everyone who has not been born a complete idiot. --P. K. Engelmeier

Innovation Funnel 3000: 1 Copyright © Ping Lan Innovation Funnel 3000: 1 Copyright © Ping Lan

Innovation Stages & Gates Varied sources Innovation Stages & Gates Varied sources

Innovation Paths Varied sources Innovation Paths Varied sources

Hybrid Innovation Varied sources Hybrid Innovation Varied sources

Innovation Approaches/Tactics Inside-the-box Outside-the-box Time + analysis Develop entrepreneurship Copyright © Ping Lan Innovation Approaches/Tactics Inside-the-box Outside-the-box Time + analysis Develop entrepreneurship Copyright © Ping Lan

3. Promote Innovation in Arctic Region: Alaska Experience Alaska: USA’s Arctic Region Arctic Innovation 3. Promote Innovation in Arctic Region: Alaska Experience Alaska: USA’s Arctic Region Arctic Innovation Competition (AIC) Beyond the AIC: Arctic Innovation 360º Copyright © Ping Lan

Alaska: USA’s Arctic Region Alaska’s Profile University of Alaska School of Management Copyright © Alaska: USA’s Arctic Region Alaska’s Profile University of Alaska School of Management Copyright © Ping Lan

Alaska’s Profile Purchased in 1867 in $7. 2 m ($120 m) 1/6 land of Alaska’s Profile Purchased in 1867 in $7. 2 m ($120 m) 1/6 land of USA (663 k sq mi) 1/50 population of USA (722 K) 7/10 revenue (GSD$45 B) comes from the oil industry Copyright © Ping Lan

University of Alaska Fairbanks Part of UA Started in 1922 Land/sea/space granted 11 k University of Alaska Fairbanks Part of UA Started in 1922 Land/sea/space granted 11 k students, 1 k faculty; 4 k staff 170 programs 7 campuses Over $100 m research funds Copyright © Ping Lan

School of Management One of 10 college/schools Formed in 1975 Four programs ◦ BA, School of Management One of 10 college/schools Formed in 1975 Four programs ◦ BA, ACCT, ECO, EM Four degrees ◦ BBA, MS, PH. D Over 700 students AACSB accredited Copyright © Ping Lan

Arctic Innovation Competition Origination Features Operation Contestants Copyright © Ping Lan Arctic Innovation Competition Origination Features Operation Contestants Copyright © Ping Lan

Origination of AIC Innovation gap in Alaska Class have students buy –in MBA volunteers Origination of AIC Innovation gap in Alaska Class have students buy –in MBA volunteers A demo site for fundraising Copyright © Ping Lan

Features of the AIC Open to public Focus on ideas Have no topic and Features of the AIC Open to public Focus on ideas Have no topic and region restriction No any charge to participators Use the following selection criterion Novelty Utility Feasibility and Value Copyright © Ping Lan

AIC Website: www. arcticinno. com Copyright © Ping Lan AIC Website: www. arcticinno. com Copyright © Ping Lan

Drill Down of Contestants & Ideas Among Contestants • 45% from Fairbanks and North Drill Down of Contestants & Ideas Among Contestants • 45% from Fairbanks and North Pole, • 35% from other Alaskan regions, • 13% from the contiguous U. S. and • 2% from foreign countries. Among Submitted Ideas Copyright © Ping Lan 36% in Consumer Goods, 15% in Energy & Environ. , 11% in Construction, 11% in Public Policy, 9% in Industry & Equipment, 8% in Biz Improvement, 8% in IT Applications, 5% in Health Care, 3% in Others

AIC Sponsors Internal Sponsors UA: Statewide F UAF F ◦ SOM ◦ CEM ◦ AIC Sponsors Internal Sponsors UA: Statewide F UAF F ◦ SOM ◦ CEM ◦ CNSM Copyright © Ping Lan External Sponsors Government agents F Banks F Native Corps. Private Firms F Non-profit orgs. F

A First Prize Winner Copyright © Ping Lan A First Prize Winner Copyright © Ping Lan

Beyond AIC: Arctic Innovation 360º Wide engagement Dream factory Arctic cooperation Copyright © Ping Beyond AIC: Arctic Innovation 360º Wide engagement Dream factory Arctic cooperation Copyright © Ping Lan

Innovation Engagement AIC Junior Alaska Innovation Report Arctic Innovation Conference Copyright © Ping Lan Innovation Engagement AIC Junior Alaska Innovation Report Arctic Innovation Conference Copyright © Ping Lan

Arctic Dream Factory Raw Materials Pipeline Conversion Ideas Dream Factory AIC Hands dirty $ Arctic Dream Factory Raw Materials Pipeline Conversion Ideas Dream Factory AIC Hands dirty $ Copyright © Ping Lan Value Jobs Seeds Money Real World

Arctic Innovation Cooperation The similar environment Aggregate market size Multiple channels enabled by Information Arctic Innovation Cooperation The similar environment Aggregate market size Multiple channels enabled by Information & Communication Technology Copyright © Ping Lan

Opportunity & Challenge The beauty of innovation is that anyone can do it. The Opportunity & Challenge The beauty of innovation is that anyone can do it. The challenge of innovation for an organization is that you have to keep doing it. You will be more innovative if you could make sense out of changes. Copyright © Ping Lan




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