Digital Products and Services – The Journey (DRS Course DLC147)

The Knowledge Center for Innovation at the Technion in collaboration with DigitalRosh initiated this program for a thorough and in-depth solution to managers and innovation leaders in organizations that need to develop products and services in the digital age under constant disruption. This is based on the most up-to-date research knowledge, and through leading academic experts and leading innovation managers in the Israeli industry.

Throughout the course, participants will acquire knowledge and tools, and will actively experience building a digital product/service, in light of the “journey of idea” model developed by Prof. Miriam Erez, the bride of the Israel Prize and founder of the Knowledge Center for Innovation at the Technion. Specifically, during the course, participants will become acquainted with current digital-technology trends; learn how to identify and target challenges; build a bank of ideas; evaluate, prioritize and promote ideas; build prototypes and attack critical assumptions; learn how to deal with resistance to change, and lead change in the organization.

The course is based on research done in the field of innovation, accompanying companies and organizations in the last 13 years, and the training of over 150 organizational innovation managers of various sectors. All, combined with components of digital taught as part of the Technion’s MBA programs.

The course “Digital Products and Services – The Journey” will be held using the LLL method (a combination of peer learning, theory, and practice) and is intended for anyone who is a leader in the organization and has the skills of entrepreneurship and innovation.

At the end of the course, participants will receive a certification. See more details on the DigitalRosh website (Hebrew).

13-Sep-2021: Teva BIO-MIX-2021 competition – a collaboration between DigitalRosh and Teva

On behalf of The National Forum for Bioinnovators by Teva, we are delighted to invite you to participate in the exciting annual BIO-MIX 2021 competition where five teams of BioInnovators will compete for first place with their impactful ventures. This event will take place virtually on September 13, 5-8 PM IL. This event is the culmination of a year-long training program designed to enhance the entrepreneurial skills of outstanding Ph.D. and PostDoc students – thank you for your support in the forum and in your students throughout the year!

Join us to witness as scientists-turned-entrepreneurs dare to innovate!

Register here.

Disruptive Innovation Can be an Opportunity and not Just a Disaster: Case Study: Fujifillm Vs. Kodak

According to Yuichi Itabashi, GM of Fujifilm’s e-Strategy Management Office (Jan 2019 Interview).

Fujifilm is a living example that disruptive innovation can be an opportunity as well as a risk. The company not only survived the disruption of the film and analog photography, but it also executed a successful transformation by taking its in-house expertise in chemical compounds and applied it in new ways entering new markets like cosmetics, healthcare products, pharmaceutical products, computer tapes for datacenters back-up, and of course for digital cameras.

In Heiferman & Sivan’s e-book “Doing Digital,” (Hebrew) they also describe (in chapter 5) the disruptive innovation model as defined by Prof. Clayton Christensen and use the Kodak vs. Fujifilm case studies as examples of how different approaches to the disruptive innovation led Kodak to miss the digital opportunity and Fujifilm to take this opportunity and thrive in the long-term.

Yuichi Itabashi, Fujifilm

How did they do it? In an interesting interview titled “How Fujifilm lives by the maxim: never stop transforming” published on January 2019 by the i_CIO magazine, Yuichi Itabashi, the general manager of Fujifilm’s e-Strategy Management Office, provides some insights to this challenging journey. As he says, it was not an easy transformation and sometimes even a terrifying nightmare. But the bold reaction of Fujifilm’s executive management saved the company from a similar destiny as Kodak’s that had to close its photographic operation in 2012. Fujifilm has transformed from a photographic oriented company into a diversified technology company with about 283 subsidiaries and a wide range of product lines.

As a diversified technology company, new challenges raised “how can it best gain visibility in the market for this vast array of products?” They decided to implement a bold digital marketing strategy and started by establishing the e-Strategy office in 2011 as part of the company’s headquarter. With so many subsidiaries and different product lines, the creation of joined-up thinking in digital marketing was necessary. From there they moved on to the e-commerce operations and worked to tie together the wide range of digital marketing activities and tools. They applied marketing automation tools and much more. As Itabashi says, he’s a great believer in the message he first heard from Prof. Philip Kotler, “Digitize or die.”

Now, New, Next: Innovating the Way Organizations Innovate. Why McKinsey’s 3 Horizons Model of Innovation No Longer Applies

“The pace of change has never been this fast, yet it will never be this slow again” – what a great line from Justin Trudeau, Canada’s Prime Minister’s speech at the Davos 2018 World Economic Forum meeting. The pace of change and disruption is accelerating and will continue to accelerate in the future. To cope with this challenge, organizations will have to rely more and more on innovation and agility.

Innovation by itself has to change, what we call “Innovating innovating.” One of the changes in the innovation process and management was highlighted by Steve Blank, the developer of the methodology that, eventually, became the foundation of the Lean Startup movement and he’s currently an adjunct professor of entrepreneurship at Stanford University and lecturer at other universities. On February 2019 He published an HBR (Harvard Business Review) article titled “McKinsey’s Three Horizons Model Defined Innovation for Years. Here’s Why It No Longer Applies.”

Steve Blank’s article.

McKinsey’s experts published in 2016 a model of three-time horizons for managing the innovation portfolio, in their article “Now, New, Next: How Growth Champions Create New Value.” The model describes the idea that companies should manage their innovation portfolio in three-time horizons (time-buckets):

  • Horizon 1: Now – new ideas based on the current business model and existing core capabilities to provide continuous innovation (also called sustainable by Prof. Christensen).
  • Horizon 2: New – new ideas that extend a company’s existing business model and core capabilities to new customers or markets.
  • Horizon 3: Next – the creation of new capabilities to take advantage of or respond to disruptive opportunities.

McKinsey’s article.

This model was also described in chapter 5 of our e-book “Doing Digital” (https://bit.ly/2odl5th). Steve Blank now claims that in the 21st century, this model has a fatal flaw that risks making companies lag behind their competitors. His main claim is that the focus on the horizons is based on time-frame of each horizon. The Horizon 1 focused on innovations that could be delivered in a short term of 3 to 12 months. Horizon 2 could be delivered in 24 to 36 months and Horizon 3, focused on creating new disruptive business models, could be delivered in 36 to 72 months. This time-based definitions made sense in the past, but are no longer valid in our current and future dynamic business environment. Today, Horizon 3 innovations could be delivered as fast as Horizon 1 innovations.

To make his point Steve Blank uses some examples. Companies like Uber, Airbnb, Lyft, Tesla, Netflix built their disruptive business models using existing technologies (smartphones, GPS, Mobile internet, Big Data and many more) and deployed their solutions in extremely short periods of time. They have used the Minimum Viable Product concept to enter the market with barely finished, iterative, and incremental prototypes (what we call agile working methods). Incumbent companies can’t wait 36 to 72 months to deploy their counter solutions. It’s too late! Therefore organizations must find ways to shorten the Horizon 3 innovations.

Steve Blank provides some ways that incumbent organizations can deal with that challenge:

  • Using startups to build and deliver products rapidly for incumbent organizations.
  • Acquiring external innovators who can operate at the speed of the disruptors.
  • Copy some of the new innovations and use the incumbent business model to dominate.
  • Innovate better than disruptors.

None of the above alternatives are easy for incumbents, but waiting 36 to 72 months for Horizon 3 innovations to be deployed is not an option, in some cases.

In chapter 9 of the e-book “Doing Digital” Raz Heiferman & Prof. Yesha Sivan propose organizations to understand the five platforms for innovation. This conceptual framework provides some ideas of how organizations can speed up their innovation processes (e.g., using ready-made digital components for innovation).

06-Apr-2020: Prof. Sivan presents post-COVID19 Three New Normals model (3NN) at the National Forum for Bioinnovators by Teva

Teva Pharmaceutical Industries invited Prof. Sivan to present the 3 phases of the new normal (3NN) to the national professional community of bioinnovators exploring the Corona age.

Also presented Prof. Michael Zhang from The Chinese University of Hong Kong Business School and Dr. Dorit Shweiki from The Academic College of Tel-Aviv, Yaffo.

Date: Monday, April 6, 2020, by Zoom.

The 3NN framework (three new normals) by Prof. Sivan is also presented in his paper published in the Journal for Virtual Worlds Research (The JVWR), on the issue “The Dark Side of Virtual Worlds.” It details the mental challenge of the COVID-19 black swan and provides a strategic direction. Using the framework, and based on individual internal risk appetite and external market conditions, one should estimate the relative time each New Normal will take. Read more here.

From the talk…

“I have followed the then called Wuhan Virus since the Johns Hopkins University (JHU) site listed less than 20 fatalities. The rise in numbers, together with my direct communication with Wuhan residents – reprogrammed my brain and gave me time to change. Still, I am not sure that my response, while being defensive (e.g., selling stocks), and offensive (e.g., re-aligning my business to 100% virtual) – created enough difference. How to react in such situations is a mental challenge that calls for readjustment of the “operating system.””

17-Mar-2020: Prof. Sivan in Jerusalem Muni Convention: “Innovation in Auditing – Change or Perish”

Prof. Yesha Sivan, CEO of i8 Ventures, was invited to give a lecture about the “Digital Era – Risks & Opportunities in the Changing Role of Auditing” at the convention organized by the Audit Department of the Municipality of Jerusalem (Hebrew).

The convention’s theme and focus is the digital era, innovation, and the transformations in auditing, specifically in municipalities.

Details (in Hebrew) in the attached image.

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31-Mar-2020: Digital Transformation — IDF “Technology on Tuesday” series (Heb.)

Technology on Tuesday – Meetings on communication technologies and digital transformation in organizations.

The Association for commemorating IDF C4I corps (Command & Control, Communications, Computers and Information) in collaboration with the Bureau of Information Technologies in Israel and with the Organization of Communications Systems Consultants (AIMT) are holding a series of professional meetings on contemporary communication topics, designed for the technological community in Israel. The purpose of the meetings is to create an independent and non-binding dialogue and mutual fertilization between the IDF and the academic and industry factors in the field of communication.

The meetings will be presented by IDF needs, trends and technological gaps, while academia and industry will present capabilities, directions, and trends for solutions. The upcoming meeting in the series will deal with the topic of digital transformation.

See the agenda below and click here to see more information on PC Magazine.

Prof. Sivan will present “The Digital Leaders – Mastering Six Transformations.

06-Jun-2019 Haifa, Israel: Prof. Sivan on Data Science – THE Career of the Future

As part of the campaign for the new B.Sc. program in Haifa University, on Data Sciences, led by Prof. Mor Peleg, (who recently won the rector’s award for research,) Prof. Sivan will discuss the emerging nature of the Data Scientists.

More details about the program.

Find the full e-book (Hebrew) on the e-Vrit application.

To receive chapter 7 (PDF), kindly subscribe here and we’ll send it to you.

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[Hebrew] Digital Maturity (Ch 12) – Free Download

An excerpt from the book “Doing Digital” (Hebrew)

Most organizations have embarked, this way or another, on a journey to transform themselves into digital businesses adapted to the challenges of the new digital era. It is a challenging journey that should be planned carefully, monitored all the way, and with a high level of top management commitment.

Digital Maturity is one of the most important practical tools which helps organizations assess their current situation. There is no standardized well-accepted model for Digital Maturity, but there are some leading models and organizations should select one of them to measure their current digital stage.

In our new e-book (Hebrew) titled “Doing Digital: Digital Transformation – Background, Theory, and Practice; Hitchhiker’s Guide to the Journey,” published in 2018 on the e-Vrit application for mobile and desktop, we devote chapter 10 to this vital tool.  We cover several Digital Maturity models to enable organizations a broad view and understanding so that, eventually, they select the model that best suits their needs.

Find the full e-book (Hebrew) on the e-Vrit application.

To receive chapter 12 (PDF), fill the form below.

Are You Ready For the Vampires of Your Industry?

“Value Vampires” sounds quite frightening!! As a matter of fact, there is a good reason to be frightened of them. This is the new breed of digital companies that are sucking the profit pool dry of the incumbent’s companies, companies challenged by the digital economy. Often, the “value vampires” provide products and services cheaper than yours, their global reach is unmatched, and their consumer experience is better than yours.

“Value Vampires” is a term introduced by Prof. Michael Wade, an innovation and strategy professor at the IMD business school and the Director of the Global Center for Digital Business Transformation. He names “value vampires” companies like Uber, Airbnb, and Amazon, companies that have managed to be “winners of everything” due to their digital platforms. These companies scale quickly and almost without any limits; they expand their business from one area into new areas (e.g., Uber expanded from taxi hailing to food deliveries, Amazon from books selling to selling almost everything, to cloud computing, e-book readers, and much more).

The customer experiences and the prices they offer are unmatched, sometimes even free of charge, their service levels are better, they disrupt the markets in which they operate and drive down the profits of almost all the market leaders. Sometimes the market leaders surrender and close their business (e.g., Borders, Blockbuster, and others).

The “value vampires” wipe billions of dollars from the revenues of the incumbents in many industries. An example of a “value vampire” is WhatsApp – they sucked billions of dollars from the revenues of the mobile operators in a very short period. They use the platform business model that competitors can’t match; they have a global presence making it very easy for customers to reach them.

For “value vampires,” even the sky is not a limit!

As Prof. Wade says “Not only is Uber cheaper than most taxi companies they are competing with, but the quality is also better because the way you can hail them via an app, and their service is good. They also offer platform value in that you can hail an Uber almost anywhere in the world via the same app. They use their network to introduce other services.”

A link to the interview of Prof. Wade’s by the Norwegian business magazine Kapital: https://bit.ly/2GTJpeuProf.

Wade is also the author of “The Digital Vortex,” a book we have cited in Chapter 8 of our e-book “Doing Digital“. The book introduces the concept of the digital vortex, a tornado-like behavior of the digital force that is impacting all type of industries.

The combination of the tornado-like behavior and the arrival of the ‘value vampires’ is the perfect example of why companies must make their digital transformation a strategic move, and start their digital journey as soon as possible. This journey is challenging not just due to the need to transform the business employing digital technologies. It is challenging also because of the need to transform your organization into an innovative and agile business, that offers new value to its customers and can respond quickly to the new attackers.

To understand the challenge of becoming an agile organization, we invite you to download our article from Cutter Consortium’s web site (requires registration) at the following link: https://www.cutter.com/offer/agilifying-your-organization-6-steps-get-started

Don’t wait for the ‘value vampires’ to arrive at your market.

Start your digital and agility journey ASAP.