As the world struggles with a steadily deteriorating eco- nomic meltdown, individuals, companies and countries globally are seeking to redefine their roles in the new economy. One
word rings true for all — innovation.
Despite huge investments worldwide
to establish globally competitive school
systems, superior technology incubators,
aggressive capital venture initiatives and
a business-friendly political environment, we all must hang our heads for our
abysmally poor track record in sustainable innovation.
Why do we fail?
First of all, what do we
mean by innovation? I
define innovation as ‘a
process through which eco-
nomic or social value is
extracted from knowledge.’ First, you
must have a creative idea. Next, you must
generate enthusiasm for this idea
amongst those that will finance and help
deliver on this idea. Then, you must
operationalize the idea so that maximum
benefit can be drawn from it. Finally and
most importantly, you must ensure that
the processes are developed to sustain
the operation in a sound business model
to fully leveraged the societal and eco-
nomic value.
Where does this innovation process
break down? It is evident on a global
level that we produce fine minds that
spawn amazing ideas in medicine, entertainment, retail, recreation and business.
But for every one of these success stories,
there are thousands of failures. Indeed,
two out of every three businesses fail
before their fifth anniversary.
Innovation and the start-up
The Datac Doblin Group found that
the innovation initiative success rate
over all industries is a mere 4. 5 percent.
The top three obstacles to innovation in
larger firms, as stated by the Boston
Consulting Group, include long development times, lack of coordination and a
risk-adverse culture. It is proven that
innovation pays shareholders. A study of
global innovation firms found that total
shareholder return reached 14. 3 percent
while the S&P 1100 returned only 11.1
percent.
Finding a solution
How can we all effect the changes necessary to change this momentum of
innovation failure? Business schools can
GINNY DYBENKO
influence a new generation of business
leaders to assist in the necessary cultural
shift that must take place around the
world. But many schools are letting
everyone down — teaching from a textbook point of view rather than from real
life. Most business schools teach business practices that belong to a bygone
era — an era of big stable corporations in
an expanding economy. Few, if any, business professors have any real business
experience — much less experience in
the unique challenges of entrepreneurial
start-ups. Few business schools have the
insight or the expertise to provide training in business skills that are designed to
complement the considerable technology expertise that our schools have been
spitting out for years.
Worldwide, just a few universities have
broken this mold. Case in point, Wilfrid
Laurier University’s School of Business
and Economics. Laurier has recently
introduced a wildly successful new MBA
program, an MBA in innovation and
entrepreneurship. Within this program,
students will not only be exposed to new
and creative courses focused specifically
on the challenges of entrepreneurship,
but they will also have access to the
Entrepreneurship Accelerator Program
to help them found their own new company. Students will complete their MBA
program not only with a degree but also
with their own business ready to go.
Laurier’s curriculum provides a strong
foundation in economic analysis, tech-
nology management, business strategy,
finance, accounting and marketing and
policy specifically tailored for the entre-
preneur. The program provides knowl-
edge, skills and strategic perspectives
required for leaders and senior managers
in larger companies as well. All of this is
done through small classes and research
seminars that support interactive learn-
ing and maximum student-faculty dia-
logue and is informed by faculty on the
cutting edge of research in innovation
and entrepreneurship.
Ginny Dybenko is dean, School of
Business and Economics, Wilfrid
Laurier University.
