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304421 MANAGEMENT OF INNOVATION 301 Digital Report

Student Name

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LAI Xin Xin Karen

Student ID

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16091524 / 7e2a9717

Student’s Email Address

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7E2A9717@student.curtin.edu.my

Tutor’s Name

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Dr. Adriel Sim

Tutorial Day and Time

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Thursday, 4:30pm – 7:30pm

Total file word count

3,778

Less direct quotes

41

Less table of content

128

Less reference lists and appendix

926

Total net word count

2,683

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Table of Contents

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Executive Summary This report is to examine how GroupMap formulate and implement its

strategies. There are a few topics will be covered in the following part. This report will study how GroupMap established an environment for innovation by discussing the IP strategies, ways to manage organisational knowledge, the innovative strategies and the collaboration strategies. Besides, this report also discusses how GroupMap implement its innovation. The ways of managing their innovation and operation management will be discussed too. Moreover, the new product development process will be mentioned by comparing with empirical evidence from the Samsung Electronics.

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Company Profile & Background GroupMap is founded by Jeremy Lu and Bardley Ward on September 10, 2012

(AngelList 2014). It is an online idea exchange tool which collects and combines the ideas or suggestions from the individuals when they share their view. As a result, they will be turning into their group perspective automatically. It is designed based on the ideas which provide a place for everyone to think and place or remove their ideas. It motivates the participants participate actively in the group. It will show the feedbacks and insight of the participants and enhance them in making their decision efficiency and effectiveness. It allows users to create their own activity or discussion map with various types of conversation templates given. Different types of conversation template are designed for different purpose to improve the outcomes. For examples, chart is designed to show the value and cost while list is designed to show the agenda planning and the pros and cons suggested from the participants. After creating a discussion map, users can invite their friends to brainstorm via email, link or password. The participants can upload their views and ideas visually in the discussion map. They can edit or remove their views or ideas anytime. GroupMap can show the results based on the discussion instantly after the participants uploaded their views and thoughts. During Jeremy’s teaching life, he wanted to look for a way collaborative and self directed learning environment to get his students engaged in the class. He was looking for a way to let his students to submit their ideas quickly and anonymously in a group. Soon, he came out with an idea to design a discussion map. During the presentation presented by Jeremy Lu in Curtin Bentley, he mentioned that GroupMap has a vision which is “A simple, effective tool for great teams to think, share, talk and decide based on quality insights, focused conversations and collaborative outcomes”. Please refer to the Appendix A to view GroupMap’s graphical timeline.

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Establishing an Environment for Innovation 3.1

Intellectual Property (Please refer to Appendix B)

Intellectual property, (which is also known as IP in short), means the patents or the legal protections use to protect the inventions and designs which are created by someone or a company (Pete 2013, 647). Intellectual property protection is not only used to give some protection for the invention but it is also encouraging innovation at the same time (Lemley 2005, 1031). In order to claim for the intellectual property rights, authors and inventors are required to meet certain minimum requirements (Lemley 2005, 1031). A best-seller novel can be duplicate easily if the author does not apply for copyright. Thus, the creation of the copyright and patents is use to protect the effort of the authors and creators in creating, producing and distributing their intellectual works (Spinello 2007, 13). If a person breaks the rules, he might be punished by fines or imprisonment. According to Australia law, the punishment by fines will be minimum at $50,000 and the maximum will be at $275,000 (IP Australia 2014). If the party is charged to imprisonment, he will be jailed at least 6 months and up to 5 years’ time (IP Australia 2014). GroupMap protects their product by applying the following IP protection strategies: Software Copyright, Provisional Patent, Trademark, domain URL and Methodology. 3.1.1

Software Copyright

Software copyright is used by the software companies to protect all the software they designed to avoid the unauthorised party to copy their idea or products (Kranenburg and Hogenbrik 2005, 111). IT companies will require software copyright before launching their products to the market. Many research papers discuss the pros and cons of getting legal protection for the software (Diallo 2003; Matt and David 2007). Some study shows that software copyright encourages the authors and inventors to invent and create more software as their inventions will be protected while some people argue that the manufacturers will have to invest a lot of money just to protect their products from being threat by the unauthorised party (Kedah.edu 2014).

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Patent is a right granted from the government to those new invented subjects by excluding others from duplicating, producing, using or selling an invention (Chesbrough 2006, 406). A lot of researches illustrated that patents play an important role in the operation of a firm as patents have shows their impacts which are greater than those coming from the economic (Macdonald 2004, 137). According to the Australia law, applicants who are applying for different types of patents are charged at different rates. Applicants who are applying for the provisional patent will have to pay $110 or $210 (IP Australia 2014) (Please refer to Appendix C to view the registration fee). Patentees will have to renew their patents or they will be fined if they are late to renew their patents (IP Australia 2014). However, patentees will fail to apply if they demonstrated their inventions to the market before applying for patent. Some people agree that the organisation should apply for patent as patentees will be benefited from getting more capital (Aylen 2012, 140). Besides, their inventions will be protected (Aylen 2012, 140). Last but not least, patent is a powerful anti-competition tool as patentee is the only one who has the right to develop or manufacturer patented products (Aylen 2012, 140). However, the cost to apply for patent is very high (Aylen 2012, 141). Some individuals might not be able to afford it. As soon as the patent is expired, others might be able to copy it (Aylen 2012, 141). Moreover, individuals have to use a long period of time to apply for patent but it only protects for a short period (Aylen 2012, 141). 3.1.3

Trademark

Trademark is referring to the name of the products or companies (Lemper 2012, 113). It is important for a firm to apply for trademark right after they picked a name for their products or firms to protect them. In order to protect the name of a product or firm, the owner should apply for trademark after picking a name for them (Lemper 2012, 113).

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Domain URL is defined as the area of administrative independence, control or influence in the internet. 3.1.5

Tacit Knowledge

Tacit knowledge is a type of knowledge which is hardly available in text. Intangible factors such as personal benefit, experiences and values are part of the tacit knowledge (Ramasami 2011, 74). The advantage of getting tacit knowledge is it is easy and cheaper (Ramasami 2011, 83). Besides, it will be recognised by getting good responses from the employees (Ramasami 2011, 83). Moreover, the researchers pointed out that tacit knowledge can create more knowledge in the future (Ramasami 2011, 83). In addition, tacit knowledge is not easily to be leaked out (Ramasami 2011, 83). However, there are some downsides of transforming knowledge into tacit form. First of all, individuals might not have knowledge to claim for the tacit knowledge (Ramasami 2011, 84). Next, individuals must update their tacit knowledge frequently (Ramasami 2011, 84). The transferring of tacit knowledge might be costly (Ramasami 2011, 84). The most important key is the organisation might lose their key knowledge when the key people resigned (Ramasami 2011, 84).

3.2 Managing Organisational Knowledge and Innovation Strategies (Please refer to Appendix D) Organisational knowledge is an asset for a firm to build or develop their new products (Rasmussen and Nielsen 2011, 479). It is the competitive advantage of one firm as it transforms the tacit knowledge to become an explicit and useable knowledge (Lundvall and Nielsen 2007, 208). 3.2.2

Resource Based View (RBV)

Resource Based View (RBV) is a framework which can see which resource is the competitive advantage for a firm and how long will it sustains (Williamson et al. 2012, 20).

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Jeremy Lu, one of the co-founders of GroupMap has a lot of experiences and knowledge in business management, business consulting, training, change management and so on (GroupMap 2014). The technical co-founder of GroupMap, Brad Ward, who had few years experiences in the software delivery which includes his position as a Program Manager and Scrum Master with Microsoft (GroupMap 2014). He also worked in the development teams at Microsoft Office Labs and Bing Shopping (GroupMap 2014). This shows that Jeremy and Brad have the knowledge in managing a business and the knowledge in the software designing. In this circumstance, GroupMap is using the Resource based view as their framework. 3.2.3

Dynamic Competence-Based Theory

Dynamic competence-based theory means the firms can get the information such as trends from internal and external of the company and develop themselves according to the environment (Teece, Pisano, and Shuen 1997, 510). Absorptive capacity is the ability of a firm in recognising and learning the new and valuable information before commercialise it (Cohen and Levinthal 1990, 129). In order to get attract more people to use GroupMap, variety discussion templates are designed and uploaded on the GroupMap website. More templates will be designed when GroupMap get more ideas and demands from their users. Users will find it more convenient as they can get the template which is more suitable for their discussion topic (GroupMap 2014). According to the presentation in Curtin Bentley by Jeremy Lu, he said that GroupMap keeps their maps as simple as possible for the users, facilitators and the business. The ways of protecting a firm’s technology assets to avoid others to get a chance to imitate them is also a way for a firm to generate their income (Prahalad and Hamel 1990, 80).

3.3 Collaboration Strategies (Please refer to Appendix E) In the past, firms will collaborate with the suppliers and customers to gain more profits. Nowadays, firms are collaborating with other firms to do undergo research and development to benefit the involved firms (Whipple and Frankel 2000, 22). Strategic alliance is the agreement between two or more companies 8


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corporate in specific business activity to benefit each other from their own strengths (Isoraite 2009, 39). It can develop the relationships among the companies too. 3.3.2

Benefits of Strategic Alliances

There are a few benefits that the firms will get when the firms collaborate with the others. One of the advantage of strategic alliance is the partners can concentrate more on the specific activities which can match their capabilities (Simonin 1997, 1152). Besides, by collaborating with the others, they can learn and get more knowledge from their partners (Simonin 1997, 1152). Moreover, risks can be divided among the collaborated companies. By collaborating with other companies, projects, researches or developments which are complex, expensive and time consuming will be done efficiency and effectively (Simonin 1997, 1153). 3.3.3

Dangers of Strategic Alliances

Although there are a lot of benefits of strategic alliances, there are also the disadvantages too. It might be costly for some companies as the cost of expenses will be higher when collaborating with others. Firms have to spend in hiring managers of strategic planners, tools will be designed to analyse the internal and external environment (Blurtit 2014). Besides, the process will become complex and the firm has to go through many steps to connect to other companies (Blurtit 2014). Moreover, it cannot guarantee that the project will be success (Blurtit 2014). 3.3.4

Collaboration Strategies Used by Jeremy

According to the presentation by Jeremy Lu, he said that “GroupMap has collaborated with Leadership WA, some consulting firms, other collaboration tool companies and universities such as Curtin University� (Lu 2014). GroupMap is using the outsourcing strategy. This is because the other companies are using GroupMap’s tool to undergo their own presentations or promotions. Curtin uses the tool to make the students to interact in the class.

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Implementing Innovation 4.1

Managing Innovation and Operations Management (Please refer to Appendix F)

Operations management is about how is the organisation control the conversion process from its input until its output (Trott 2012, 120). Managing innovation involves developing the potential ideas to generate the creativity of the firms (Trott 2012, 120). In order to help the businesses to manage the uncertainty they meet in their daily operation, Pearson had revealed an uncertainty matrix to ease the business in managing different levels of uncertainty. GroupMap falls in the forth quadrant. This is because at first, it provided a discussion map for the users to discuss their ideas and opinions. It started in 2012 with its black and white version of the discussion room. In 2014, Jeremy and his team is working on developing the third version which aims in providing a better, simpler and a more efficient discussion templates to its users. There are 9 organisational characteristics which can facilitate the innovativeness of a firm. The characteristic that GroupMap obtained is the diverse range of skills. This is related to the past experiences of Jeremy and Brad. Jeremy is expertise in commerce while Brad is expertise in programming. These illustrate that the staffs GroupMap has the ability in both commerce and IT worlds.

4.2

New Product Development (Please Refer to Appendix G)

New product development is the process that a firm is advisible to go through when they are going to commercialise their products to the market (Zahay, Griffin and Fredericks 2004, 662). For a firm, new products can be either changed and developed products or totally new products (Petrick and Echols 2004, 84). Internal and external information of the firm must be shared.

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This process starts with the fuzzy front end (which can be known as a planning stage), follow by the development of the product, testing, validating and preparation stage, and ends when the firms commercialise their products to the market (Zahay, Griffin and Fredericks 2004, 662). There are 8 important internal and external information are needed in this process. They are project management information, customer information, wants and needs, the regulatory of the country, strategic considerations, company’s financial information, technical information and the competitive advantage of the company (Zahay, Griffin and Fredericks 2004, 662). All information will be needed in the first step. Technical information, project management information and the customers’ needs and wants are needed when it comes to the research and development stage (Zahay, Griffin and Fredericks 2004, 662). Companies will develop their new products by the information gathered. After developing their product, companies will test their products. For instance, Samsung test their products in 2 ways: Alpha and Beta testing phase (Samsung 2014). In alpha phase, products will be tested by Samsung’s R&D department whilst in the beta phase, the products will be distribute to a group of selected customers (Samsung 2014). They will use the products for some definite time before giving their opinions to Samsung (Samsung 2014). Samsung will undergo this phase for a few times before the products are qualified for launching (Samsung 2014). GroupMap is planning to develop the 3rd version of their products. The users are currently using the version 2 of the product. During the presentation presented by Jeremy Lu, he pointed out that the users are using the 2nd version of the software. He showed that the first version of the software was in black and white colour. Besides, he and his team are currently developing their software to become a simpler and more convenient tool.

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Questions from CEO As a product manager of GroupMap, I would need to identify my potential customers (who are the ones that needed it). It is indentified that potential target are companies that emphasis on innovation and institutions. I would be investing the $2,000 on survey to improve the product. Feedbacks from customers will be used as considerations for future upgrades. Then, $ 5,000 would be spend on researching the product, GroupMap would need change or new features to fit in the constantly changing needs of customers. Remaining $3,000 will be spend on promoting the product through Facebook advertising, whereby GroupMap page would appear in News Feed of users. Through Facebook, it is able to gain awareness of users (university students). Next, the product will be promoted to companies and institutions that crave for innovative learning e.g. IBM. The implementation would be done as below:

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Survey Improvement Advertising Exhibit 1 *Survey - A 3 days survey will be conducted through online and offline *Improvement – After analyzing the feedbacks, improvement of products should be researched from Day 3 for maximum of 1 month *Advertising is spend from Day 1 for a week.

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Conclusion and Recommendations In conclusion, it is not easy to manage a business. Entrepreneurs not only have to think out of the box to meet the market’s preference but they also have to be alert to the changes in the internal and external of the organisation. They have to know when the expiry date of the patent they applied is. They have to know their right to protect their intellectual properties. Next, the entrepreneur should be able to build organisational knowledge. He should have his own strategies in organising his business. Besides, in order to develop their products, they might have to approach other companies to alliance. Even though it might be risky and the cost might be high, the benefits of the strategic alliance should not be underestimated. Entrepreneur should read more so that they can get many knowledge such as how are they going to face the uncertainties they meet in their business. Entrepreneurs should learn the new product development process. He should gather as much information from the consumers as he can before he develops his new products. Products should be tested for times before launching it to the market.

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7.0 References List AngelList. 2014. GroupMap: Activity. GroupMap. Accessed May 16, https://angel.co/groupmap/activity#all. Australian Government IP Australia. 2014. “Counterfeiting and Piracy.” IP Infringement. Accessed May 16, http://www.ipaustralia.gov.au/ipinfringement/counterfeiting-and-piracy/. Australian Government IP Australia. 2014. “Patent Fees.” Get the IP. Accessed May 16, http://www.ipaustralia.gov.au/get-the-right-ip/patents/time-and-costs/fees/. Aylen, John. 2012. Starting and Running a Small Business For Canadians For Dummies All-in-One. Canada: Wiley. Blurtit. 2014. “What Are The Advantages and Disadvantages of Strategic Planning?” Business and Finance: Strategy. Accessed May 20, http://businessfinance.blurtit.com/608104/what-are-the-advantages-and-disadvantages-ofstrategic-planning. Chesbrough, H. 2006. “Open Business Models, How to Thrive in the New Innovation Landscape.” Journal of Product Innovation Management 25(4): 406-408. doi: 10.1111/j.1540-5885.2008.00309_1.x Cohen, Wesley M., and Daniel Levinthal. 1990. “Absorptive Capacity: A New Perspective on Learning and Innovation.” Administrative Science Quarterly 35(1): 128-152. doi: 10.2307/2393553. Diallo, Barrou. 2003. “Historical Perspectives on IP Protection for Software in Selected Countries Worldwide.” California Law Review 89(1): 19-25. doi: 10.1016/S0172-2190(02)00083-2. Douma, Marc Ulco. 1997. “Strategic Alliances.” Fit or Failure. http://doc.utwente.nl/58679/1/thesis_Douma.pdf.

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Dussauge, P., and B. Garrett. 1995. “The Future of the Defence Firm: Collaboration, Co-operation and Strategic Alliance.” 79(1): 121-132. doi: 10.1007/978-94-0158512-5_10. Faulkner, D. 1995. International Strategic Alliances: Co-operating To Compete. London: Mcgraw-Hill Book Company. GroupMap. 2014. “About”. About. Accessed May 19, http://www.groupmap.com/about/. GroupMap. 2014. “Choose your activity”. Create a Map. https://app.groupmap.com/. Gulati, Ranjay. 1998. “Alliances and Networks.” Strategic Management Journal 19(4): 293-317. doi: 10.1002/(SICI)1097-0266(199804)19:4<293::AIDSMJ982>3.0.CO;2-M. Isoraite, Margarita. 2009. “Importance of Strategic Alliances in Company’s Activity.” Intellectual Economics 1(5): 39-46. doi: http://www3.mruni.eu/~int.economics/5nr/Isoraite.pdf. Jabatan Pendidikan Negeri Kedah. 2014. “Software Copyright.” Atikel. Accessed May 10, http://www.kedah.edu.my/sahc/a_portal/portal_tekvok/ict/nota_com_sys/Micros oft%20Word%20-%20les_57.pdf. Kranenburg, Hans Van, and Annelies Hogenbrik. 2009. “Multimedia, Entertainment, and Business Software Copyright Piracy: A Cross-National Study.” Journal of Media Economics 18(2): 109-129. doi: 10.1207/ss15327736me1802_3. Lemley, Mark A. 2005. “Property, Intellectual Property and Free Riding.” Texas Law Review 83(4): 1031 - . doi: 10.2139/ssrn.582602. Lemper, Timothy A. 2011. “Five Trademark Law Strategies For Managing Brands.” Business Horizons 55(2): 113-117. doi: 10.1016/j.bushor.2011.10.005. Lundvall, Bengt-Åke, and Peter Nielsen. 2007. “Knowledge Management and Innovation Performance.” International Journal of Manpower 28(3/4): 207-223. doi: 10.1108/01437720710755218.

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Macdonald, Stuart. 2004. “When Means Becomes Ends, Considering the Impact of Patent Strategy on Innovation.” Information Economics and Policy 16(1): 135158. http://88.167.97.19/albums/files/TMTisFree/Documents/Economy/When %20means%20become%20ends.%20Considering%20the%20impact%20of %20patent%20strategy%20on%20innovation,%202004.%20Macdonald.pdf. Matt, E. Thatcher, and E. Pingry David. 2007. “[Software Patents] The Good, The Bad, and The Messy.” Communications 50(10): 47-52. doi: 510.004.005. Mowla, Mohammad Masrurul. 2012. “An Overview of Strategic Alliance: Competitive Advantages in Alliance Constellations.” Journal of Business Management and Corporate Affairs 1(1): 1-10. http://m.onlineresearchjournals.org/JBMCA/pdf/2012/sep/Mowla.pdf. Oshana, Robert, and Mark Kraeling. 2013. Software Engineering for Embedded Systems: Methods, Practical Techniques, and Applications. NSW: Newnes. Phan, P. H. 2000. “Knowledge Creation In Strategic Alliances: Another Look At Organizational Learning.” Asia Pacific Journal of Management 17(2): 201-222. doi: 10.1023/A:1015857525048. Petrick, Irene J., and Ann E. Echols. 2004. “Technology Roadmapping in Review: A Tool for Making Sustainable New Product Development Decisions.” Technological Forecasting & Social Change 71(1): 81-100. doi: 10.1016/ S0040-1625(03)00064-7. Prahalad, C.K., and G. Hamel. 1990. “The Core Competence of the Corporation.” Harvard Business Review 33: 79-91. https://faculty.fuqua.duke.edu/~charlesw/s591/willstuff/oldstuff/PhD_20072008/Papers/C08/Prahalad_Hamel_1990.pdf. Ramasami, R. Senapathi. 2011. Knowledge Management. http://books.google.com.my/books? id=POndAgAAQBAJ&pg=PA83&dq=advantages+and+disadvantages+of+tacit +knowledge&hl=en&sa=X&ei=cUZ7U4meHsmn8AXjpYL4AQ&ved=0CDYQ 6AEwAg#v=onepage&q=advantages%20and%20disadvantages%20of%20tacit %20knowledge&f=false. 17


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Rasmussen, Palle, and Peter Nielsen. 2011. “Knowledge Management in the Firm: Concepts and Issues.” International Journal of Manpower 32(5): 479-493. doi: 10.1108/01437721111158161. Samsung. 2014. “Research and Development.” Samsung Electronics. Accessed April 29, http://www.samsung.com/us/aboutsamsung/samsung_electronics/business_area/ rd_page/. Simonin, Bernard L. 1997. “The Importance of Collaborative Know-How: An Empirical Test of the Learning Organisation.” Academy of Management Journal 40(5): 1150-1174. http://www.jstor.org/stable/256930. Spinello, Richard A. 2007. “Intellectual Property Rights.” Library Hi Tech 25(1): 1222. doi: 10.1108/07378830710735821. Teece, David J., Gary Pisano, and Amy Shuen. 1997. “Dynamic Capabilities and Strategic Management.” Strategic Management Journal 18(7): 509-533. doi: 10.2307/3088148. Trott, P. 2008. Innovation Management and New Product Development. 4th ed. Essex: Pearson Education. Whipple, Judith M., and Robert Frankel. 2000. “Strategic Alliance Success Factors.” Journal of Supply Chain Management 36(2): 21-28. doi: 10.1111/j.1745493x.2000.tb00248.x. Williamson, Nicholas C., Joy Bhadury, Kay Dobie, Victor Ofori-Boadu, Samuel Parker Troy, and Osei Yeboah. 2012. “Business Coursework and the ResourceBased View (RBV).” International Journal of Wine Marketing 24(1): 19-32. doi: 10.1108/1751106121123756. Zahay, Debra, Abbie Griffin, and Elisa Fredericks. 2004. “Sources, Uses and Forms of Data in the New Product Development Process.” Industrial Marketing Management 33:657-666. doi: 10.1016/j.indmarman.2003.10.002.

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Appendix Appendix A

Graphical Timeline of GroupMap

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Appendix B Click here to view video.

Type of Patent

Fee (if using eServices)

Fee (other methods)

Provisional Patent

$110

$210

$370

$470

$180

$280

$370

$470

Application Standard Complete Patent Application Innovation Patent Application Patent National Phase Entry Application

Appendix C Registration Fees for Patent

Appendix D Click here to view video.

Appendix E Click here to view video.

Appendix F Click here to view video.

Appendix G Click here to view video.

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