Innovation and Transition CSIT Belfast 2015 Zach Tudor, CISSP, CISM, CCP Program Director, Computer Science Lab March 2015 © 2010 SRI International - Company Confidential and Proprietary Information
What Will We Discuss ? • • Why SRI “We Need More Innovation” The Valley of Death We Need New Business Models © 2010 SRI International - Company Confidential and Proprietary Information
SRI- Who We Are A world-leading independent R&D organization • Founded by Stanford in 1946 – – SRI headquarters, Menlo Park, CA Based in Silicon Valley Non-profit corporation Independent in 1970 Acquired Sarnoff Corp (formerly RCA Labs) in 1987 • 2, 500 staff members – 1000 with advanced degrees – More than 22 locations worldwide • Consolidated 2013 revenue ~$550 M Sarnoff, Princeton, NJ SRI Harrisonburg, Virginia SRI State College, SRI Tokyo, Japan SRI Washington, Pennsylvania D. C. © 2010 SRI International - Company Confidential and Proprietary Information SRI St. Petersburg, Florida
A Few of SRI’s Innovations Hundreds of billions of dollars of economic value First Internet logon Computer mouse . com. org. gov Electronic Banking Low cost HDTV, color TV, … Digital film distribution Cognitive Assistant that solar-grade silicon Learns and © 2010 SRI International - Company Confidential and Organizes Proprietary Information Address reading
SRI and Sarnoff Technology Spin-off Ventures Growth opportunities that bring innovations to market Publicly Traded Speech recognition for customer service Surgical robotics DNA testing services* Information Technology Customer service tools* Digital TV equipment* Video enhancement systems Flat-panel displays* LCD technology* Electronic and digital signature solutions Iris biometric identification* Digital TV technologies* New paradigm for the consumer internet Enterprise social media technology Materials Electroactive polymers Wireless mesh networks Video-on-demand services* Panoramic image editing software* Secure content distribution* Bio/Medical Next-generation fuel cells* Digital color printing applications* Anti-counterfeiting systems Super-bright LED light engines* Drug dispensing system* Drug discovery (formerly Rosedale Medical) Portable power systems* Optical network components Metal “print and plate” manufacturing process Environmentally friendly light products © 2010 SRI International - Company Confidential and Proprietary Information Glucose monitoring system Disposable hearing aid* *Acquired or merged
SRI Innovation Partnership Programs Developing and sharing innovation best practices with leading companies, universities, and governments INSTITUTE FOR INFORMATION INDUSTRY © 2010 SRI International - Company Confidential and Proprietary Information
Maughan, D. ; Balenson, D. ; Lindqvist, U. ; Tudor, Z. , "Crossing the "Valley of Death": Transitioning Cybersecurity Research into Practice, " Security & Privacy, IEEE , vol. 11, no. 2, pp. 14, 23, March. April 2013 doi: 10. 1109/MSP. 2013. 31 © 2010 SRI International - Company Confidential and Proprietary Information 7
5 More Innovation !!!! © 2010 SRI International - Company Confidential and Proprietary Information
"Every CEO will at least give lip service to the idea that the world is moving faster and that we need to do a better job at innovation. But if you go into an organization and ask people to describe their innovation system, you get blank looks. They have none. " Gary Hamel: Harvard University © 2010 SRI International - Company Confidential and Proprietary Information
Cybersecurity Tools Abound © 2010 SRI International - Company Confidential and Proprietary Information
Recurring Themes in Cyber Protection • Information Sharing • Better Dashboards • Science in Cyber • New Frameworks Root Cause: We need more useful information!! © 2010 SRI International - Company Confidential and Proprietary Information
SRI’s Definition of Innovation Ensure everyone is working in the same direction Innovation The creation and delivery of new customer value in the marketplace with sustainable value for the enterprise © 2010 SRI International - Company Confidential and Proprietary Information
5 The Valley of Death © 2010 SRI International - Company Confidential and Proprietary Information
Innovation and Value Ideas Inventions $ Innovations $$$$$$$ The Valley of Death “The transition to the marketplace is the Valley of Death” Norm Winarsky, SRI VP of Ventures and Licensing © 2010 SRI International - Company Confidential and Proprietary Information
Traditional Point of View Bridging basic research and commercialization © 2010 SRI International - Company Confidential and Proprietary Information 15 15
Identifying and bridging all the Valleys of Death © 2010 SRI International - Company Confidential and Proprietary Information 16 16
Discipline & Tools Increase Chance of Success Fundamentals of value creation CUSTOMER VALUE Compounding Improvement Process + Shared Language & Tools + Customer Focus Most Projects © 2010 SRI International - Company Confidential and Proprietary Information TIME
Five Disciplines of Innovation (5 DOI) Discipline 1: Important Customer & Market Needs Discipline 2: Value Creation Discipline 3: Innovation Champions Discipline 4: Innovation Teams Discipline 5: Organizational Alignment © 2010 SRI International - Company Confidential and Proprietary Information
SRI’s Five Disciplines of Innovation (5 DOI) • Important customer and market needs – begin with a meaningful problem • Value creation – articulate Need, Approach, Benefit, Competition (NABC) – common language to discuss and create value • Innovation champions – appoint someone who is passionate about the project and its success • Innovation teams – ensure collaboration within and across organzations • Organizational alignment – manage to achieve innovation success © 2010 SRI International - Company Confidential and Proprietary Information 19
5 Disciplines Build Toward Commercialization Venture Plan Business Plan • • • Team Innovation • Value chain • Plan • Go-to-market • • Champion plan Concept • NABC • Business model • Inventor • Value proposition • Goal: funding • Idea • Goal: seed or • Invention internal investment © 2010 SRI International - Company Confidential and Proprietary Information Staff the company Process Production Goal: Commercialize
Cybersecurity R&D Execution Model (aka, “Circle of Life”) © 2010 SRI International - Company Confidential and Proprietary Information 21
Innovation Practice Living Workshops ion Collis s e. I t Ev. On & 5 D amps Bootc Divergent Collab in FA SA U E AT SL EM ST Innovation Education AFIT Tech O v Discovery & Assessment PE Integ & Implement Es nno s I SM ins um Fork a pin S ac ns H o pid h T Ra tos Acq Mgt o als Pr c ati ring uts b o o b in ues Sa ent Sp ag M C e E r. L se Entrepreneur Commercialization U Exchange © 2010 SRI International - Company Confidential and Proprietary Information Center Gov-Commercial Co. Dev
5 Business Models © 2010 SRI International - Company Confidential and Proprietary Information
Approaching New Business Areas © 2010 SRI International - Company Confidential and Proprietary Information
Business Models The business model spells out how a company makes money English inventor Michael Faraday conceived and built the first electric motor, then tried to get the backing of Prime Minister William Gladstone wasn’t impressed with the crudely made invention. “What possible good is it? ” asked Gladstone. Faraday’s reply changed Gladstone’s attitude: “Some day you’ll be able to tax it. ” © 2010 SRI International - Company Confidential and Proprietary Information
Model T Ford A model for business success Technology – Combustion engine Product – Model T Process – Assembly line. Business Model – National dealerships © 2010 SRI International - Company Confidential and Proprietary Information
Business Model Examples • The low-cost supplier business model – Asian electronics companies • The razor and blades business model (bait and hook) – P&G, – HP printers • The cutting out the middleman model – Travelocity, Amazon. com • The auction business model – e. Bay • The servitization of products business model – IBM consulting • The monopolistic business model – Utilities and telecom • The subscription business model – Health clubs • The online content/search business model – Google • Etc. © 2010 SRI International - Company Confidential and Proprietary Information
So ask yourself… What is the business model for my idea? © 2010 SRI International - Company Confidential and Proprietary Information
Change is good, but difficult – Someone must go first! Change is good – you go first © 2010 SRI International - Company Confidential and Proprietary Information
Menlo Park Headquarters SRI International 333 Ravenswood Avenue Menlo Park, CA 94025 -3493 650. 859. 2000 Thank you! zachary. tudor@sri. com Washington, D. C. SRI International 1100 Wilson Blvd. , Suite 2800 Arlington, VA 22209 -3915 703. 524. 2053 Additional U. S. and international locations www. sri. com © 2010 SRI International - Company Confidential and Proprietary Information
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