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Management of Innovation 301 Digital Multimedia Report Semester 1, 2014

Name: Yong Jen Yap ID: 7E0B7870 / 15653431 Tutor: Mr. Adriel Sim


Table of Contents Table of Contents......................................................................................................................2 1.0 Executive Summary.............................................................................................................4 2.0 Company Profile and Background.......................................................................................5 3.0 Establishing an environment for innovation.......................................................................6 3.1 Intellectual Property Protection (IPP).............................................................................6 3.1.1 Copyright..................................................................................................................6 3.1.2 Patent.......................................................................................................................7 3.1.3 Trademark................................................................................................................8 3.1.4 Trade Secret.............................................................................................................8 3.2 Managing organizational knowledge and innovation strategies.....................................8 3.2.1 Importance of managing organizational knowledge................................................8 3.2.2 Core Competencies..................................................................................................9 3.2.3 Absorptive Capacity ..............................................................................................10 3.3 Collaboration strategies................................................................................................10 3.4 Scope for collaborative strategy...................................................................................10 4.0 Implementing Innovation..................................................................................................11 4.1 Managing innovation and operations management.....................................................11 4.1.1 Pearson’s Uncertainty map....................................................................................11 4.1.2 Organizational characteristics that facilitate innovation........................................11 4.2 New product development (NPD).................................................................................12 4.2.2 Generation business opportunities........................................................................12 4.2.3 Screening of business opportunities......................................................................13 5.0) Question from the CEO....................................................................................................14 As the product manager at GroupMap and allocated with $10,000 to identify the best way to use this for GroupMap, I recommend that use $5,000 to create an event to attract new customer and also collect customer feedback in order to assist new product development. The event could be a competition of create new rules, new templates and new process to GroupMap. The event not only encourages the existing customer to participate with the company and also promoting new product development and innovation. Other than that it will also attract new customer for trying GroupMap. The company also can collect feedback after the event so that the company can do screening of business opportunities, filters out the bad idea and promote the good idea.................14 6.0) Conclusion and Recommendation...................................................................................15 7.0) Reference Lists.................................................................................................................16

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World Intellectual Property Organization, 2014. “What is Trade Sceret.” http://www.wipo.int/sme/en/ip_business/trade_secrets/trade_secrets.htm......................18 8.0) Appendix..........................................................................................................................19 Appendix 1: Jeremy Lu-GroupMap’s Timeline....................................................................19 Appendix 2: Summary of Intellectual Property...................................................................19 Appendix 3: Measures of capturing “competitive advantage” from inventions.................20 Appendix 4: GroupMap trademarks...................................................................................20 Appendix 5: Core competencies, imitability and profits model..........................................21 Appendix 6: Which Club does Your Alliance Belong to .......................................................21 Appendix 7: Pearson uncertainty map................................................................................22 Appendix 8: Network model of NDP...................................................................................22

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1.0 Executive Summary This report highlights and explores the backgourd story of Jeremy Lu who is the founder of GroupMap. The key milestones of GroupMap were also reported in this article. Jeremy well implemented intellectual property protection to protect GroupMap’s innovation. Software copyright, provisional patents, trade secret and trademark was adopted and registered under Australia Intellectual Property Department. Moreover, the core competencies of GroupMap also enable the company to obtain sustained competitive advantages. Other than that strategic alliances also applied by the company. The company creates a strong external relation to create advantages of additional knowledge and ability. The new product development is also discussed in this report. The organization requirement and characteristics to facilities innovation was found in GroupMap. Futher more, idea generation and screening idea will also analysis in the following article. Lastly, an answers and suggestion to CEO question will be provided.

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2.0 Company Profile and Background GroupMap is providing an easy and effective web tool to help team discussion or meeting to do brainstorming, sharing ideas, create consensus and provide instant feedback about what the group is thinking. It provides a easy and effective online group brainstorming with visual templates. Other than that, GroupMap is also designed base on the large groups of users. GroupMap is founded by Jeremy Lu and Brad Ward in 9 September 2012. Jeremy was experiences in many industries, such as education, health management and business consulting. Although the early stage of Jeremy’s employment history was tax accountant and financial accountant during the 1998 to 2002, Jeremy was describing himself as not a typical CPA. It is because after those two accountant job, Jeremy career was shifting toward business consultant, business manager, general manager, lecturer, School Business Manager at Curtin University, program manager and lastly become the co-founder of GroupMap The detail of the employment history and the history of GroupMap is presented in the link below: Online version(2d and 3d): http://www.tiki-toki.com/timeline/entry/296298/Jeremy-Lu-GroupMapTimeline/#vars!date=2010-06-19_03:55:59!

Offline version: Appendix 1 Page | 5


3.0 Establishing an environment for innovation 3.1 Intellectual Property Protection (IPP) Intellectual property is a type of intangible property. An effective Intellectual property protection system must allow buyer to obtain the advantage of using the intellectual property but also allow IP owner retains the power to prohibit that buyer and all others parties from copying through legal enforcement (Mittlestaedt, John and Robert 1997).Conceptually, IPP can be divided into six ways which is natural IP, trada secret law, secrecy, copyright, patent and trademarks(Mittlestaedt, John and Robert 1997).However, trademark , copyright ,patent and trade secret are most common IPP that we use. The different and summary of these four types of Intellectual Property was show at Appendix 2.The level of importance of different intellectual property toward software, medical and biotechnology firms was presented in Appendix 3. 3.1.1 Copyright A theory suggested that copyright protection is having a positive relationship with the number of creative and innovation works available to society (Shih et al. 2009).Other than that the aim of copyright act was protecting the contributors to defend their effort and handwork and assure with a fair return (Carpenter and Craig 2013).Copyright act can be apply to “original works of authorship fixed in any tangible medium of expression, now known or later developed from which they can be perceived, reproduced or otherwise communicated, either directly or with the aid of a machine or device(Carpenter and Craig 2013)�.Moreover, software was specifically added as a type of intellectual property under Copyright Act on 1976(Oz and Effy 1995). The act protected the copyright holder from other peoples who intend Page | 6


to use the software without permission even other developer developed the same software within a period of time (Oz and Effy 1995). In GroupMap, software copyright was used as one of their IPP strategies. All of their computer software is secluded under the copyright act. However, there is no copyright registration in Australia. The individual just need require to present copyright symbol and notification on their original works (Intellectual Property in Australia 2014). Thus, it will increase the business risk of GroupMap. 3.1.2 Patent Patent was granted to the society in order to encourage the innovation. The objectives of patents are to protect profit and benefit of patent holder within a few years in order to grant their innovation, and also prohibited others to copy or steal their idea though legal enforcement (Intellectual Property in Australia 2014). A patent is only protecting the holder within a period of time and the longest patent obtaining time in Australia is 20 years (Intellectual Property in Australia 2014). On the other hand, the work of process, information and the innovation will be discovery publicly once the intellectual property patented, it will arise the business risk that the innovation technologic can be easily accessed by rivals (Trotts 164; Frank 2003, 64).Other than that the costs of obtaining and enforcing patent is an high expenses for small and medium company (Samuelson 2010). However, GroupMap is using provisional patent strategic to protect their innovation technologic. Provisional patent can overcome the risk of publicly and the cost is lower than patent. Provisional patent is not providing patent but give the company a priority date. Generally, provisional patent is offering one year to apply a full patent, but if the company fail to apply the full patent, all the information and data will be destroyed(Intellectual Property in Australia 2014). It’s a good idea for GroupMap to obtain a provisional patent because the product and services of GroupMap was not completely developed and provisional patent can offer protection for the technologic that have been developed by GroupMap. Page | 7


3.1.3 Trademark Trademark can be use as a commercial identifier, it’s consist of something like name, mark, symbol or device that an organization use to differentiate their product and services with their competitors (Mittlestaedt, John and Robert 1997). In Australia , trademark registration was divided into 45 classes and its included all types of product and services enforcement (Intellectual Property in Australia 2014). GroupMap was register their GroupMap logo under the class 42 which categorized as all the development related to computer software since 22 AUG 2013 enforcement (Intellectual Property in Australia 2014). The company can avoid and prohibited their competitor and others company to use their logo and name by trademark registration, this can lead to protecting their company image and reputation. 3.1.4 Trade Secret Generally, trade secret can be defined as all the business data and information which will provide benefit or competitive advantages to an organization (World Intellectual Property Organization 2014).Any unauthorized use of trade secret will treat as a violation of trade secret law, and it can arise case sue against who violated the law(World Intellectual Property Organization 2014). According to Jeremy who was the founder of GroupMap, the company is also applying trade secret. This is a right way to the company, since the company is still applying provisional patent, so there are many other sensitive business information have to be protected. Hence, trade secret is a good choice for GroupMap. 3.2 Managing organizational knowledge and innovation strategies 3.2.1 Importance of managing organizational knowledge During recent decades, many organizations have understand that the power of knowledge. Faster getting hold and utilization of new knowledge will create sustainable competitive advantages (Schiuma et al. 2012).A Page | 8


successful targeted value proposals can be achieved by an effective utilization and management of knowledge resources, because knowledge resources are the fundamental of development of those capabilities that lead the organization toward success(Schiuma et al. 2012). 3.2.2 Core Competencies Core competency of an organization can be described as a unique capability that obtained by an organization, it could be in the form of a resources, operations capacity, professional knowledge worker, knowhow or delivery of services (Gupta 2013). It will also give the organization sustainable competitive advantages in term of quality, special design, manufacturing, logistic of a product or in cost of product and is outlook as a virtual value addition by a potential customer (Gupta 2013).The core competencies of GroupMap is their real time brainstorming and group meeting tools. GroupMap allows their customer reach group consensus, overcome reticence, avoid groupthink, reduce power differences, eliminate manual collation, and simplify complex issues, speed up knowledge, equal air time for ideas, more engaging, time saving and reduce information overload, all of these advantages is relatives as value addition to their customer, because they can’t have those advantages from GroupMap’s competitors such as sticky notes, butchers paper, online collaboration tool, decision support systems and collaborative mind maps. Core competencies, imitability and profits model is a model that determine the capacity of a company to make long-term profit according on their core competencies and the imitability of the core competency (Trott 2012). The core competencies of GroupMap is high because GroupMap have bring the various advantages and values added to their properties customer .The imitability of GroupMap’s core competencies is low because the templates provide by GroupMap is complexity and need highly web-tool developing skill to design such templates. Other than that GroupMap is also under intellectual property protection, so the imitability is consider low .Therefore, the profitability of GroupMap falls under the column of “long-term profits.”

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3.2.3 Absorptive Capacity Absorptive capacity can be described as the organization capabilities of recognize and discover the value of latest, external information, understand it, and implement it to commercialisation (Daspit 2013). Employee knowledge and experiences is the key element to built Absorptive capacity (Trott 2012) Jeremy has very good knowledge and experience in business management and education, and also his partner Brad Ward was very knowledgeable in internet technology, thus GroupMap will have the absorptive capacity. 3.3 Collaboration strategies Strategic alliances can be described as a cooperative agreement that allow organizations to combine and share their assets and capabilities in order to attain competitive advantages (Uddin, Mohammed and Bilkis 2011).Management of alliance and value creation is very importance in strategic alliance. Which Club does Your Alliance Belong to There are various form of strategic alliance, such as licensing, supplier relations, outsourcing, joint venture, collaborations (non-joint ventures) and others (Trott 2012).Collaboration (non-joint ventures) is more importance to Groupmap. Collaboration agreement is more flexible and provides the opportunity to extend the cooperation over time if required (Trott 2012).For example, GroupMap is collaboration with Curtin University to promote their efficiency online brainstorming tools. However, joint venture will be a potential pitfall to GroupMap. Joint venture is usally a legally enforcement contract. Generally, the alliance will affect the equity and the ownership of the company (Trott 2012).

3.4 Scope for collaborative strategy For suggestion, GroupMap can do more collaboration with more business and university body to promote their product. Finding and promoting the product to the potential customer is better than waiting the customer to come themselves. Other than that cooperation with social networking is also Page | 10


an operational strategy. Although the company has the company page on Facebook, Tweeter and LinkedIn, it is not followed by enough subscribers. This is the gap that allows the company to improve and promote their product.

4.0 Implementing Innovation 4.1 Managing innovation and operations management 4.1.1 Pearson’s Uncertainty map Pearson’s uncertainty map presents a structure for exploring and understanding uncertainty and the innovation process (Trott 2012, 88). Click here for Pearson’s uncertainty map. GroupMap’s innovation was under the quadrant 4 which represent the combining market opportunities with technical capabilities in the Person’s uncertainty map (Trott 2012, 88). Jeremy knows the targeted output that he is thinking of and the technical and process part was supported by Brad Ward, thus the uncertainty about output is low and the uncertainty about process is also low in GroupMap. The innovative practice in this quadrant is most certainty.In this situation, Jeremy innovated and combined the process of group meeting, brainstorming, mind-map and templates and developed GroupMap. The major element of GroupMap successful is the speed of development (Trott 2012, 88). GroupMap had improved and combined the existing product, its make a dramatic effect.

4.1.2 Organizational characteristics that facilitate innovation GroupMap is the company that is seeking growth and it is more expected to be concerned in innovation (Trott 2012).Innovation provides a way to accomplishing growth for those growth-oriented company(Trott 2012).GroupMap is receptivity to identify and take useful improvement of externally developed technology ,thus it lead to better innovation. Other than that GroupMap is also have the space for creativity, the product and services of GroupMap is come from the creativity of Jeremy which means that he has the ability to manage the innovation impasse and provide space for Page | 11


creativity(Trott 2012). Moreover, coordination of a diverse range of skills of a company is also importance for a company innovation (Trott 2012). It requires the company have the ability to developing a marketable product with combination of wide range of specialized technologic and knowledge(Trott 2012). GroupMap have this characteristic because GroupMap is the web-tool the combine the function of brainstorming, sticky notes, mind-map, templates and others technologic. 4.2 New product development (NPD) New product development (NDP) is a critical business practices to all organizations, both consumer and marketing oriented business (Hanna et al. 1995).In particular, existing products can be estimated over the route of time to either be replaced by new or improved product (Hanna et al. 1995).Undoubtedly, the long-term health of most organizations is having a tight relationship with their capability of new product development (Alexandre et al. 2003). I

4.2.1 Network model of NPD Network model suggest that new produce development should be observed as a knowledge-accumulation procedure that involved inputs from a wide variety of resource (Trott 2012).Basically, network models weight the external relations tied with the internal performance that have been exposed to contribute to successful product development (Trott 2012).This significant evidence to propose that external relations can help furthers knowledge flows into the company, thus improving the process of product development(Trott 2012).GroupMap is obtaining the several ability and resources to do new product development , but it can be enhance by strategic alliances who can provide additional knowledge and information to the process of new product development. 4.2.2 Generation business opportunities Generation business opportunities in NPD process can be referred as opportunity identification (Trott 2012).It is the procedure of gathering potential trade opportunities that could practically be developed by the company into successful product(Trott 2012).This definition enclosed some Page | 12


requirement, which facilitates to clarify the complexity that company faces(Trott 2012). New product ideas can appear from many sources such as existing products, competitor’s product and reverse engineering, technology, unexploited patents, customer and many other sources(Trott 2012). Customer can be a good source for GroupMap to clarify potential products ideas. GroupMap can collect feedback from their user especially from the employee from differences business body and also from the student. Thus, GroupMap can get some new product idea from those feedbacks. 4.2.3 Screening of business opportunities Screening product ideas is fundamentally an evaluation procedure, its screening out the negative idea and conserving the positive idea to make sure the potential product features and customer demands are developed appropriately (Floren and Frishammar 2012).Appropriate standard capacity are essential for generating ideas to make sure it can gratify market requirements, has high level of achievability, generating value to the business and support with business strategy (Floren and Frishammar 2012). GroupMap is suggested to implement customer screening and technical screening in order to evaluated and analyzed whether the idea is good or bad. (Trott 2012).

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5.0) Question from the CEO As the product manager at GroupMap and allocated with $10,000 to identify the best way to use this for GroupMap, I recommend that use $5,000 to create an event to attract new customer and also collect customer feedback in order to assist new product development. The event could be a competition of create new rules, new templates and new process to GroupMap. The event not only encourages the existing customer to participate with the company and also promoting new product development and innovation. Other than that it will also attract new customer for trying GroupMap. The company also can collect feedback after the event so that the company can do screening of business opportunities, filters out the bad idea and promote the good idea. Another $5000, I suggest the company to do invest in marketing both online and offline. The company and collaborative with social media strategic alliances to advertise and promote GroupMap. Although the company have their own website and pages on the mainstream social network such as Facebook , tweeter and LinkedIn, the follower and subscription of the their pages is not sufficient. If the company can invest and advertise more, I believe that the sales and revenue of the company will increase significantly.

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6.0) Conclusion and Recommendation All in all, GroupMap is an innovative company that has a good business potential. They well implanted the IPP to protect their innovation. Software copyright, trade secret, trademark and provisional patent was adopted and registered with Australia intellectual property department .The core competencies of GroupMap was also identified and it become a sustained competitive advantages to GroupMap. Strategic alliances were also operated by GroupMate. The collaborative strategy can be improved by engage with more other business body and university. GroupMap was also identified at quadrant 4 of Pearson’s uncertainly map which represent the combining market opportunities with technical capabilities. The GroupMap was also obtaining the organization requirement and characteristics of facilities innovation.Futhermore, the new product development was discussed based on the network model on NPD; generate business opportunities and also screening business opportunities. Lastly, a recommendation and answer to the question from the CEO of GroupMap was analyzed.

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7.0) Reference Lists Alexandre, Maria Tereza, Olivier Furrer, and D. Sudharshan. 2003. "A Hierarchical Framework of New Products Development: An Example from Biotechnology." European Journal of Innovation Management 6 (1): 48-63. http://search.proquest.com/docview/211767244?accountid=10382. Alhashmi, S., J. Siddiqi, and B. Akhgar. 2006. "Staying competitive by managing organisational knowledge." Engineering Management 16, no. 2: 43-45. Business Source Complete, EBSCOhost. http://ieeexplore.ieee.org.dbgw.lis.curtin.edu.au/stamp/stamp.jsp? tp=&arnumber=1638106 Alvarez, Sharon A. and Jay B. Barney. 2001. “How entrepreneurial firms can benefit from alliances with large partners.” Academy of Management Executive. 15 (1): 139-148. doi: 10.5465/AME.2001.4251563. http://web.ebscohost.com.dbgw.lis.curtin.edu.au/ehost/detail?sid=83138120-63d74485-a6a4d9feb372ae12%40sessionmgr12&vid=1&hid=20&bdata=JnNpdGU9ZWhvc3 Carpenter, Craig C. 2013. "COPYRIGHT INFRINGEMENT AND THE SECOND GENERATION OF SOCIAL MEDIA: WHY PINTEREST USERS SHOULD BE PROTECTED FROM COPYRIGHT INFRINGEMENT BY THE FAIR USE DEFENSE." Journal of Internet Law16 (7): 1-21. http://search.proquest.com/docview/1267792849?accountid=10382. Daspit, Joshua J. and Derrick D'Souza E. 2013. "Understanding the MultiDimensional Nature of Absorptive Capacity."Journal of Managerial Issues 25 (3): 299-316,219. http://search.proquest.com/docview/1501913713?accountid=10382. Florén, Henrik, and Johan Frishammar. 2012. "From Preliminary Ideas to Corroborated Product Definitions: MANAGING THE FRONT END OF NEW PRODUCT DEVELOPMENT." California Management Review 54, no. 4: 2043. Business Source Complete, EBSCOhost http://web.b.ebscohost.com.dbgw.lis.curtin.edu.au/ehost/pdfviewer/pdfvi ewer?sid=704de1a1-79ed-4a40-bd48e9baf34fde41%40sessionmgr110&vid=4&hid=120 Gupta, R. K. 2013. "Core Competencies for Business Excellence." Advances in Management 6 (10): 11-15. http://search.proquest.com/docview/1462207604? accountid=10382. Hanna, Nessim, Douglas J. Ayers, Rick E. Ridnour, and Geoffrey L. Gordon. 1995. "New Product Development Practices in Consumer Versus Business Products Organizations." The Journal of Product and Brand Management 4 (1): 33. http://search.proquest.com/docview/220579976?accountid=10382.

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Hynes, Briga. 2010. “International Small Business Growth: A Process Perspective.” Irish Journal of Management. 29(2): 87-106. http://web.ebscohost.com.dbgw.lis.curtin.edu.au/ehost/pdfviewer/pdfviewer? sid=d9409ce0-4b04-42fe-94ef-3c399717fbc1%40sessionmgr13&vid=1&hid=1 Intellectual Property in Australia, 2014. “Australia Patents.” http://www.ipaustralia.com.au/patents/ Intellectual Property in Australia, 2014. “Provisional Patent.” http://www.ipaustralia.com.au/patents/faq/Provisional%20patent.htm Intellectual Property in Australia, 2014. “Trademark vs Copyright” http://www.ipaustralia.com.au/trademarks/faq/trademark_vs._copyright.htm Mittlestaedt, John D. and Robert A. Mittlestaedt. 1997. "The Protection of Intellectual Property: Issues of Origination and Ownership." Journal of Public Policy & Marketing 16 (1): 14-25. http://search.proquest.com/docview/211106721? accountid=10382. Oz, Effy. 1995. "Software Intellectual Property ... Protection Alternatives." Journal of Systems Management 46 (4): 50. http://search.proquest.com/docview/199842397? accountid=10382. Samuelson, P 2010, 'Legally Speaking Why Do Software Startups Patent (or Not)?', Communications Of The ACM, 53, 11, pp. 30-32, Business Source Complete, EBSCOhost, viewed 22 May 2014. http://web.b.ebscohost.com.dbgw.lis.curtin.edu.au/ehost/pdfviewer/pdfviewer? sid=4d035578-e3b8-4dd8-baca-cd6055473234%40sessionmgr198&vid=4&hid=123 Schiuma, Giovanni, Daniela Carlucci, and Antonio Lerro. 2012. "Managing Knowledge Processes for Value Creation." VINE42 (1): 4-14. doi:http://dx.doi.org/10.1108/03055721211207815. http://search.proquest.com/docview/921010113?accountid=10382. Shih, Raymond, Ray Ku, Jiayang Sun, and Yiying Fan. 2009. "Does Copyright Law Promote Creativity? an Empirical Analysis of Copyright's Bounty." Vanderbilt Law Review 62 (6): 1667-1746. http://search.proquest.com/docview/198894328? accountid=10382. Trott, Paul. 2012. “Innovation Management and New Product Development.” 5th ed. England: Pearson Education Limited. Uddin, Mohammed Belal and Bilkis Akhter. 2011. "STRATEGIC ALLIANCE AND COMPETITIVENESS: THEORETICAL FRAMEWORK." Researchers World 2 (1): 43-54. http://search.proquest.com/docview/1006465266?accountid=10382

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World Intellectual Property Organization, 2014. “What is Trade Sceret.” http://www.wipo.int/sme/en/ip_business/trade_secrets/trade_secrets.htm Zoltán Buzády. 2005. "Which Club does Your Alliance Belong to? an Empirical Classification of Strategic Alliances in Post-Transition Hungary*." Journal for East European Management Studies 10 (2): 131-155. http://search.proquest.com/docview/232775230?accountid=10382.

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8.0) Appendix Appendix 1: Jeremy Lu-GroupMap’s Timeline

Appendix 2: Summary of Intellectual Property

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Appendix 3: Measures of capturing “competitive advantage� from inventions

Appendix 4: GroupMap trademarks

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Imitability

Appendix 5: Core competencies, imitability and profits model

low

high

Negligible

Long-term

profits

profits

No profits

Short-term profits

Non-core

core

Appendix 6: Which Club does Your Alliance Belong to

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Appendix 7: Pearson uncertainty map

Appendix 8: Network model of NDP

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GroupMap digital multimedia report yong jen yap 15653431  
GroupMap digital multimedia report yong jen yap 15653431  

GrouMap Digital multimedia report -Management of Innocation

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