Innovation Management/ lecture 2: People and Teams for Innovation Success

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1/. The Myths of Innovation 2/. People and Teams for Innovation Success 3/. Customer Focused Innovation 4/. Speed: New thoughts on an old idea 5/. Co-Creation to build more value 6/. Eco-system development 7/. Selecting Ideas / Theories to tie things together

Business

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
start End
Class Update 5 16:00 16:05
Working in groups/ first thoughts 25 16:05 16:30
People and groups to be innovative 50 16:30 17:20
Break 15 17:20 17:35
Application of wise: Crowds Mymicro Invest 40 17:35 18:15
Biognoysis 15 18:15 18:30
Next week's assignment 10 18:30 18:40
160

Bryan Cassady Guest Professor, Bryan@fast-bridge.com

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
A + A + A = “A performance”
(unlikely, but maybe possible)
A + A + A = “B performance”
(too often the case)
A + B + C = “A performance”
(where the potential lies)

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Video to be inserted

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
The issue… When you focus on 25 things
it is hard to focus…

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
His conclusion… the idiots errors
cancelled each other out

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
“Bringing new members into the organization, even if they’re
less experienced and less capable, actually makes the group
smarter simply because what little the new members do know
is not redundant with what everyone else knows.”
(p.31)

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Alpha Group
138
132 135
139
135
137
Diverse Group
121 84 111
75 135 31

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
“Most of the time” the diverse group outperforms the
group of the best by a substantial margin.
See Lu Hong and Scott Page Proceedings of the
National Academy of Sciences (2002)

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Alpha Group
ABD
ADE BCD
ABC
BCD
ACD
Diverse Group
AHK FD AEG
EZ BCD IL

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
collective intelligence increases as the “herd mentality”
decreases and the people in the group express what they
genuinely think rather than going along with whatever
everyone else is saying.
“The more influence a group’s members exert on each other,
and the more personal contact they have with each other, the
less likely it is that the group’s decisions will be wise ones.”
(p.42)

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Decentralization means everyone in the crowd will try their own
approach to the problem rather than having their efforts
directed from the top down.

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Mon Tue Wed

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Brad: (8-8)2
+(10-12)2
+(10-9)2
= 5
Matt: (10-8)2
+(12-12)2
+(8-9)2
= 5
Crowd: (9-8)2
+(11-12)2
+(9-9)2
= 2

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
(Brad-Crowd)2
= 1 + 1 + 1 = 3
(Matt-Crowd)2
= 1 + 1 + 1 = 3

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Implication: Diversity can trump skill

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
“If a group satisfies those conditions [diversity, independence,
decentralization, aggregation] , its judgement is likely to be
accurate. Why? At heart, the answer rests on a mathematical
truism. If you ask a large enough group of diverse, independent
people to make a prediction or estimate a probability, and then
average those estimates, the errors each of them makes in
coming up with an answer will cancel themselves out. Each
person’s guess, you might say, has two components:
information and error. Subtract the error, and you’re left with
the information.”
– James Surowiecki

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
• Individual ability can grow, but it is hard
• Collective diversity is easy to build
• Diversity is our best hope to solve
problems and to create innovations.

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Why not just hire an expert…
Because, groups usually do better than experts

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
BREAK

Bryan Cassady Guest Professor, Bryan@fast-bridge.com
Date Lecture Student Presentation Assignment
11-02-14 The 7 myths of innovation Discussion definition Innovation
First thoughts on an Audit/ how
will you do it
18-02-14
People: the real source of
innovation
Group 1: First thoughts on an
Audit/ how will you do it
Biognosys move into B2C: your
team recommendation
25-02-14 Customer focused innovation
Group 2: Biognosys move into B2C:
your team recommendation
Biognosys: How to test potential
using research markets
27-02-14
Speed / the myth of first
movers
Group 3: Biognosys: How to test
potential using research markets
Nomadesk : what now
11-03-14 IP Class None No assignment
18-03-14
Working together to innovate
(co-creation)
Group 4: Nomadesk : what now
A co-creation plan for the Founders
Institute
25-03-14 Innovation ecosystems
Group 5: A co-creation plan for the
Founders Institute
Selling Belgium as an innovation
center
01-04-14
Living the life of an
innovator/Innovation process
Group 6: Selling Belgium as an
innovation center
No assignment

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Innovation Management/ lecture 2: People and Teams for Innovation Success

2. Bryan Cassady Guest Professor, Bryan@fast-bridge.com start End Class Update 5 16:00 16:05 Working in groups/ first thoughts 25 16:05 16:30 People and groups to be innovative 50 16:30 17:20 Break 15 17:20 17:35 Application of wise: Crowds Mymicro Invest 40 17:35 18:15 Biognoysis 15 18:15 18:30 Next week's assignment 10 18:30 18:40 160

3. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

6. Bryan Cassady Guest Professor, Bryan@fast-bridge.com A + A + A = “A performance” (unlikely, but maybe possible) A + A + A = “B performance” (too often the case) A + B + C = “A performance” (where the potential lies)

7. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

8. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

9. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

10. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

11. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Video to be inserted

12. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

13. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

14. Bryan Cassady Guest Professor, Bryan@fast-bridge.com The issue… When you focus on 25 things it is hard to focus…

15. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

16.

17. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

18. Bryan Cassady Guest Professor, Bryan@fast-bridge.com His conclusion… the idiots errors cancelled each other out

19. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

20.

21. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

22. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

23. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

24. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

25. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

26. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

27. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

28. Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Bringing new members into the organization, even if they’re less experienced and less capable, actually makes the group smarter simply because what little the new members do know is not redundant with what everyone else knows.” (p.31)

29. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

30. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

31. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Alpha Group 138 132 135 139 135 137 Diverse Group 121 84 111 75 135 31

32. Bryan Cassady Guest Professor, Bryan@fast-bridge.com “Most of the time” the diverse group outperforms the group of the best by a substantial margin. See Lu Hong and Scott Page Proceedings of the National Academy of Sciences (2002)

33. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Alpha Group ABD ADE BCD ABC BCD ACD Diverse Group AHK FD AEG EZ BCD IL

34. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

35. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

36. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

37. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

38. Bryan Cassady Guest Professor, Bryan@fast-bridge.com collective intelligence increases as the “herd mentality” decreases and the people in the group express what they genuinely think rather than going along with whatever everyone else is saying. “The more influence a group’s members exert on each other, and the more personal contact they have with each other, the less likely it is that the group’s decisions will be wise ones.” (p.42)

39. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Decentralization means everyone in the crowd will try their own approach to the problem rather than having their efforts directed from the top down.

40. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Mon Tue Wed

41. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Mon Tue Wed

42. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Mon Tue Wed

43. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Brad: (8-8)2 +(10-12)2 +(10-9)2 = 5 Matt: (10-8)2 +(12-12)2 +(8-9)2 = 5 Crowd: (9-8)2 +(11-12)2 +(9-9)2 = 2

44. Bryan Cassady Guest Professor, Bryan@fast-bridge.com (Brad-Crowd)2 = 1 + 1 + 1 = 3 (Matt-Crowd)2 = 1 + 1 + 1 = 3

45. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Implication: Diversity can trump skill

46. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

47. Bryan Cassady Guest Professor, Bryan@fast-bridge.com “If a group satisfies those conditions [diversity, independence, decentralization, aggregation] , its judgement is likely to be accurate. Why? At heart, the answer rests on a mathematical truism. If you ask a large enough group of diverse, independent people to make a prediction or estimate a probability, and then average those estimates, the errors each of them makes in coming up with an answer will cancel themselves out. Each person’s guess, you might say, has two components: information and error. Subtract the error, and you’re left with the information.” – James Surowiecki

48. Bryan Cassady Guest Professor, Bryan@fast-bridge.com • Individual ability can grow, but it is hard • Collective diversity is easy to build • Diversity is our best hope to solve problems and to create innovations.

49. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

50. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

51. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Why not just hire an expert… Because, groups usually do better than experts

52. Bryan Cassady Guest Professor, Bryan@fast-bridge.com BREAK

53. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

54. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

55. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

56. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

57. Bryan Cassady Guest Professor, Bryan@fast-bridge.com

58. Bryan Cassady Guest Professor, Bryan@fast-bridge.com Date Lecture Student Presentation Assignment 11-02-14 The 7 myths of innovation Discussion definition Innovation First thoughts on an Audit/ how will you do it 18-02-14 People: the real source of innovation Group 1: First thoughts on an Audit/ how will you do it Biognosys move into B2C: your team recommendation 25-02-14 Customer focused innovation Group 2: Biognosys move into B2C: your team recommendation Biognosys: How to test potential using research markets 27-02-14 Speed / the myth of first movers Group 3: Biognosys: How to test potential using research markets Nomadesk : what now 11-03-14 IP Class None No assignment 18-03-14 Working together to innovate (co-creation) Group 4: Nomadesk : what now A co-creation plan for the Founders Institute 25-03-14 Innovation ecosystems Group 5: A co-creation plan for the Founders Institute Selling Belgium as an innovation center 01-04-14 Living the life of an innovator/Innovation process Group 6: Selling Belgium as an innovation center No assignment

Innovation Management/ lecture 2: People and Teams for Innovation Success

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Innovation Management/ lecture 2: People and Teams for Innovation Success