ecosystem innovation - how ecosystem innovations lead to sustained competitive advantage

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  • 8/13/2019 Ecosystem Innovation - How ecosystem innovations lead to sustained competitive advantage.

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    E-choupal,

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    The Purpose of Innovation is

    not to do something new

    It is to create transformational impact.

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    The innovation success

    strike rate

    1 in 3 successfulinnovations scale up

    successfully.

    Scale is

    key to impact

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    What does it take to create

    Transformational impact?

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    Mindsets

    From Linearity toLeapfrog

    RedefineResources

    No Compromises,no trade-offs

    Re-DesignEcosystem

    Strategy

    Innovation Scale Up

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    1stMindset:From Linearityto Leapfrog

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    You want to be a leader in thenewspaper industry because only

    leaders really make money.

    But its a long, hard route that takes atleast 5 years.

    What do you do?

    Porus Munshi

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    Biology

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    2,40,000 die in India every year ofpreventable disease: Hepatitis-B

    Vaccines are available but cost Rs.750per dose and are out of reach for the

    common man.

    What do you do?

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    Shantha Biotech eliminate Hepatitis B From Rs.780 a dose to Rs.50

    a dose.

    From live with Hepatitis B to

    Eliminate Hepatitis B

    80,000 To 100 million vaccinations/year

    Today Rs.15 a dose, 60% of WHO vaccines from Shantha Bio

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    Shantha BiotechEliminate Hepatitis B

    From 80,000 To 10 crore vaccinations/year

    Today at Rs.15 a dose,

    60% of WHO vaccines from Shantha Bio

    From Rs.750 a dose to

    Rs.50 a dose.

    From living with Hepatitis B

    To Eliminate Hepatitis B

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    You want to put working children into

    fulltime school.

    But in what class do you put a 13 year

    old child whos never had a day ofschooling in his life?

    What do you do? #Porus Munshi

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    PhysicsPorus Munshi

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    You are in a plague ridden city

    and its impossible to change the 350

    year old culture.

    !"#$!%&

    What do you do?

    Porus Munshi

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    Surat Municipal CorporationTransform the city in 3 months

    HH incomes rise byRs.2,000/month

    2nd cleanest city in 20

    months

    (From contributing 50%

    of malarial deaths inGujarat to zero

    deaths)

    Health improves so much

    that

    60% of doctors migrate

    from Surat

    Legacy exists even after 16

    years

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    Eliminate unnecessary blindnessEliminate Hepatitis-BMake the worlds slimmest water-resistant watchHelp save a million livesBe leaders from day-1LeapfrogChallenges not

    incremental goals!!!Porus Munshi

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    But what about resources?

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    2ndMindset:RedefineResources

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    Trichy260 cops (1/10th of police force) transformed a city of 10.2 lakhs.Thats 1 cop for every 3,923 citizens!

    Transformed:Crime down 40%Budding extremism and terrorism nippedRecovery of stolen property up from 41% to 90%Crime solution rate up from 74% to 95%

    NO tougher laws, no new weapons/equipment, just a newway of thinking, strategizing and working.Seoul hotel

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    Tarun Bharat Sangh

    From Registhan

    TO Khetisthan

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    Tarun Bharat Sangh High technology

    solution:

    From water dark to Water white5 seasonal rivers became perennial

    Migration stoppedIncome 10X

    Girls in full time school

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    Porus Munshi

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    Aravind Eye 30-70-40Shantha Biotech Rs.50Surat 6 monthsMyshkin no anemia deaths across the worldIpca no malarial deathsThe boss

    Porus Munshi

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    Youve taken on a leapfrog challenge,redefined resources and refused to

    compromise.

    But then your aspiration and idea that

    seemed so good on paper hits the wallof reality.

    And the paper crumbles.

    What do you do?

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    Leapfrog Strategy: Re-Design Ecosystem:

    Redesign Ecosystem to overcome:

    Vested Interests: Shantha Biotech, Surat, MVF,BSE, Ipca,

    Lack of Resources/Technology: Trichy Police,Seoul Hotel, Tarun Bharat Sangh, Dainik, Apple

    Build compelling competitive advantage: E-choupal, SAP Ganges

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    To Re-Design Ecosystem:

    1. Bring in new entities (Shantha Biotech, BSE,Dainik, Apple, Seoul Hotel, Ipca)

    2. Change roles and dynamics between existing

    entities (Trichy Police, MVF, Surat, Tarun BharatSangh)

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    REFLECTIONS Linearity to Leapfrog

    Much more with Far Less

    No Compromises

    Bring in the ecosystem

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    Leapfrog Innovation Using the Ecosystem

    1. What business impact do we want to create?2. What resource challenges do we have to overcome?3. What vested interests do we need to overcome?4. How can a shift in the ecosystem enable the above?5. Spotting Opportunities

    1. Whats unchanged in our industry for a long time?2. What ecosystem shifts would help create a

    competitive space? Vision Spring ToucHB (Myshkin) Porus Munshi

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    Every project in everydepartment has the

    potential to change

    the DNA of the

    organization.

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    40Reflect

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    !"Porus Munshi

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    Porus Munshi