Undergrad education

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Innovation and EntrepreneurshipIn Undergraduate Education

Innovation

Innovation

Foundations ?

Methods ?

What’s the value ? Entrepreneurs ?

Innovators ?

Leaders ?

What is an innovation ?

What is innovation ?

Types & Categories

Entrepreneurship ?

Innovation


What is an Innovation ? 5

“an idea, practice, or object that is perceived as

new by an individual or unit of adoption.”

1962

Everett Rogers


The embodiment of a useful idea in the market place

• Not Science • Not Invention

Eugene FitzgeraldMIT


Change

Breakthrough

Incremental

Random

Accident

IntentionalUtilitySustainable

Otherwise

INNOVATION

Derived from work by James Selman

Innovation



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“[social development] is just inventions and

imitations.”

What is Innovation ?

Gabriel Tarde 1890

10

“Diffusion is the process by which an innovation is

communicated through certain channels over time among

members of a social system.”


1962

Everett Rogers

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1997

12


Innovation



Types & Categories

Innovation

What’s the value ?



Types & Categories

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What’s the Value ?

“The strategic stimulus to economic development is innovation, defined as the commercial application of

something new … ‘

Joseph Schumpeter 1911

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What’s the Value ?

“If the United States is to maintain its economic leadership … it is agreed that innovation is the key and engineering is essential…”

National Academy of Engineering

2004

Innovation

What’s the value ? Entrepreneurs



Types & Categories

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Who is an Entrepreneur ?

“regarded as living at uncertainty”

Richard Cantillon 1730

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“the person who takes upon himself the

immediate responsibility, risk, and conduct of

industry whether upon his own or borrowed

capital”


Jean Baptiste Say

1803

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Entrepreneurs “carry out new combinations of productive means”


Innovation


Innovators



Types & Categories

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Who is an Innovator ?

1962

Everett Rogers

“Uncertainty [among alternatives] motivates and individual to seek more information.”

Who is an Innovator ?

Innovation


Innovators



Types & Categories

Entrepreneurship

What is Entrepreneurship ?

Entrepreneurship

Small and MediumEnterprise

Local Markets

Innovation Driven Enterprise

Global Markets

Bill AuletMIT

Innovation


Innovators

Leaders



Types & Categories

Entrepreneurship

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Leaders

“ … this kind of labour requires a combination of moral qualities that are not often found together. Judgment, perseverance, and a knowledge of the world, as well as of business … there are abundance of obstacles to be surmounted, of anxieties to be repressed, of misfortunes to be repaired, and of expedients to be devised.”

Jean Baptiste Say 1803

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Leaders

“The leader type appears only when new possibilities present themselves”

“Surmounting this opposition [to innovation] is always a special kind of task which does not exist in the customary course of life, a task which requires a special kind of conduct.” “… to carry any improvement into effect is a task, entirely different from the inventing of it, and a task, moreover, requiring entirely different kinds of aptitudes.”

Joseph Schumpeter

1911

Innovation

Foundations


Innovators

Leaders



Types & Categories

Entrepreneurship

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Foundations

What are the objectives of innovative engineers, managers, and computer scientists ?

• Design

• Decisions

• Discovery

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Predictability

Certainty

Risk-free

Complete information

Deterministic

Unpredictability

Uncertainty

Risk

Incomplete information

Non-deterministic

Foundations

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Foundations

“…Uncertainty must be taken in a sense radically distinct from

the familiar notion of Risk”

Risk: “measureable uncertainty”

“True uncertainty … forms the basis for a valid theory of

profit.”

Frank Knight 1921

Foundations

Order Disorder

Complexity Random

EmergenceSelf organization

Adaptive Criticality

Groups / CollectivesObjectives

Sensing / Learning Interdependency

NonlinearDynamic

Heterogeneous elements

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Foundations

Uncertainty and risk are reduced with new information

Information is developed and insight is attained via

Data, models, processes

Foundations

Data

Models

Processes

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Innovation

Foundations

Methods


Innovators

Leaders



Types & Categories

Entrepreneurship

Design DecisionDiscovery

Methods

Data

Models

: Data Science

: Model Thinking

Processes

Design Thinking

Scientific Method

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Methods: Data Science

Data modeling

Data visualization & exploration

Inferential statistics

Data analytics

Machine learning

Data

Models

Processes

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Methods: Model Thinking

Data

Models

Processes

“Why Model Thinking?” • Clearer thinker

• The Many Model Thinker • Intelligent citizen the world• Understand and use data

• Understand patterns • Predict• Produce bounds • Retrodict• Inform data collection• Estimate hidden parameters • Calibrate

• Decide, strategize, and design

Scott Page

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A model can apply to multiple disciplines This leverages insight across disciplines

Multiple models can be used to study a problem

The wisdom or madness of crowds is due to independence and diversity of models for problem solving

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Methods: Processes 43

Design Thinking

Agile Development

Technology ventures Lean startupLean launch padDisciplined entrepreneurship

Data

Models

Processes

Methods: Design Thinking

Stanford Design School44


Harvard SEAS 45


Stanford Design School46


Harvard SEAS 47

Methods: Agile Development

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Methods: Lean Launch Pad

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Innovation

Foundations

Methods


Innovators

Leaders



Types & Categories

Entrepreneurship

Board Presentation April 201151

Continuously develop curriculum and learning experience in computer science and management with innovation and leadership as integrating themes

Multidisciplinary

Emphasized topics

Innovation & Leadership

Integration

Integrated topics

Interdisciplinary

Connected topics

Create the premier program for the development of innovators and leaders in the global information based economy

TopicsComputer Science: Application software design and developmentManagement: Decision support and value creation via information based methods

IntegrationDevelop curriculum from multi-disciplinary to inter-disciplinary and to integration

Board Presentation April 2011Integrating theme of innovation

Enhance student’s understanding of decision making and design in scenarios with limited information or complex interactions• Primary concepts

– Risk v. uncertainty – Complete v. incomplete information – Systems theory

• Deterministic • Stochastic / random • Complex

• Related concepts – ‘Systems thinking’– ‘Design thinking’ – Creativity (creative v. adaptive thinking)

• Methods based on simulation and on searching, learning, testing, and adapting – Lean startup model

• “Unknown problem” (market opportunity) and “unknown solution” (product) • Uses agile product development vs. waterfall (“known problem, known solution”)

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Mission EnhancementApril 2011

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Academic Mission

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Review & Implementation 2011-12

Current Academic Program

Minor in computer science

Minor in business administration RAIK xxx H

20 honors courses7 business6 computer science4 design studio1 leadership2 communication

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Computer Science

Management

Models and Computation

Software Engineering

Academic Topics

Technology Ventures

Management Science

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Integrating Themes

Technology Ventures

Management Science

Model Thinking

Design Thinking



Topics, Themes & Speakers

Technology Ventures

Management Science

Model Thinking

Design Thinking

Fall 2013

Spring 2014

Spring 2015

Fall 2014 58

What is An Innovation ?

An innovation is a “new combination of productive

means”


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“Schumpeter is now regarded as the founding father of the modern concepts of innovation and entrepreneurship.” The Economist

Theory of Economic Development

1911


David OwensVanderbilt

New change that is positive and implemented

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“Studying innovation means studying complex adaptive social systems.”

2014

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Types of Innovation


Five cases of new combinations• New good• New method of production• Opening of a new market• New source of supply• New organization

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Types of Innovation

Tom Byers2005

“Innovations can be new products, new processes, new services and new ways of doing business.”

Types and Categories

Types

Technology ProcessBusiness ModelsPositionOther

Categories

Disruptive IncrementalLateral

Bill Aulet

Foundations

Basarab Nicolescu

Topic

Multidisciplinarity “ … concerns studying a research topic not in one discipline but in several at the same time. “

Discipline A

Discipline B

Interdisciplinarity “ has a different goal ... it concerns the transfer of methods from one discipline to another.”

Method

Disciplines

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Foundations

• Transdisciplinarity – “concerns that which is at

once between the disciplines, across the

different disciplines, and beyond all

discipline.”

– “Its goal is the understanding of the

world, of which one of the imperatives is

the unity of knowledge.”

Basarab Nicolescu 66

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Computing 1 & 2Design Thinking

Financial AccountingEconomics

Data Structures & AlgorithmsSoftware Engineering

Data Modeling & VisualizationOperations Management

Finance Management Science

Marketing Multi Agent Systems

DS: Development OperationsDS: Software Design Methods

Business Capstone DS: Leading Product Development Teams

DS: Developing for Big Data

Data Science

Freshman

Sophomore

Junior

Senior

Raikes School curriculum

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Model Thinking

Freshman

Sophomore

Junior

Senior


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Design Thinking

Freshman

Sophomore

Junior

Senior



Eugene Fitzgerald, MIT 70

Business Model Canvas

“We believe that it is no longer enough for engineers to leave school with a purely technical education. By embedding innovation and entrepreneurship into the undergraduate experience, we believe that the next generation of engineers will be better able to solve big problems our society is facing, enhance our country’s economic competitiveness, and create new and fulfilling jobs for themselves and others. We’re working with engineering faculty, university leaders, and students themselves to make this happen on a national scale.”

Tom ByersStanford University Technology Ventures ProgramEpicenter

Junior Business

Finance Fall Semester Venture Equity

Foreign exchange

Corporate Finance

Market & Portfolio Models

Project: Portfolio models using R

Innovation MethodsBusiness Innovation: Lean Startup

A startup is a temporary organization designed to search for a scalable and repeatable business model. While companies execute a business plan, startups search for a business model. Steve Blank

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Copied from Steve Blank’s website

Blank: Hypothesis, test, verify

Ries: Build, measure, learn

http://steveblank.com/

Peter Drucker

• Innovation and Entrepreneurship 1985

• “Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity …It is capable of being presented as a discipline, capable of being learned, capable of being practiced.”

• “Systematic innovation consists of the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer for economic and social innovation.”

Chaos

Deterministic

Model ThinkingModels

Predictable Unpredictable

Complex

All possible results are known

Risk

Result can be computed or optimized

Certainty

All possible results are not known

Uncertainty

Random

Non-deterministicDeterministic

Differential equations,

Linear algebra

Stochastic differential equations,

Monte Carlo simulation

Multi Agent SimulationNetwork Models

Nonlinear dynamic differential

equations with sensitivity to initial

conditions

Combining Processes?

Deterministic

Random

Complex

Complete information

Complete predictability

Deterministic

Random

Complex

Statistically significant information

Risk

Aggregate predictability

Deterministic

Random

Complex

Local information

Uncertainty

No a priori predictability

Insight

Deterministic

Random

Complex

Pathways to Innovation Program

“designed to help institutions transform the experience of their undergraduate engineering students and fully incorporate innovation and entrepreneurship into a range of courses as well as strengthen co- and extra-curricular offerings.”

Sophomore Business Topics

Operations Management Fall Semester Time series data: Modeling and forecasting Operations research models (deterministic) Operations research models (stochastic)

Management Science Spring Semester Networks and complexity for evolving systems Optimization with process mining techniques

Machine learning classification methods

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