enterprise  where  digital  technology  and  creative  ability  combine
services  to  world  markets  Inspired  by  a  plethora
 stakeholders  describes  factors  that  influence  cluster  success  and
opportunities  fermented  by  cluster  formations  Key  words  cluster
 economy  media  co- †working      Introduction
 enterprise  creation  and  development  Specific  aims  of  this
 stakeholder  interests  and  influence  •Determine  factors  that
 enterprise  start- †up  growth  and  success  •Evaluate
 economy  as  a  whole  can  be  recognised Â
 Economist  21st  Sept  2013  p  30  3  See
enterprises  † the  hallmark  of  cluster  members  where
 incubators  and  other  informal  co- †working  spaces
 stakeholders  and  enterprises  themselves  Hence  these  make  valid
 subjects  to  draw  on    Clusters  hubs  and
 not- †for- †profit  research- †led  or
 environments  for  working  that  are  emerging  around  the
 environments  that  have  been  designed  and  then  used
 enterprises  in  the  creative  digital  sector  come  together
 stakeholders    Whilst  creative  digital  clusters  do  not
 enterprises  producing  a  critical  mass  of  business Â
 economy  through  investment  employment  infrastructure  and  profitability  Cluster
 members  will  often  trade  together  and  establish Â
 enterprises  commencing  in  a  12- †month  period
 investment  central  government  initiative  local  authority  economic  stimulation
 economy  could  respond  to  addressing  a  problem  meeting
 opportunity  We  could  see  for  example  how  a
 enterprise  opportunities  for  graduates  emerging  from  a  degree
 course  that  has  nurtured  creative  talent  suitable  for
 stakeholders   A  good  example  to  consider  is
 opportunities  and  cut  operating  costs  through  relocating  public
 services  outside  London  The  BBC  was  such  a
 enterprises  within  a  defined  location  has  evolved  to
 economy  and  ecosystems  and  is  our  third  case
 Enterprise  Centres/Parks/Incubators  Centres  of  academic  excellence  â€
 usually  universities  and  other  higher  education  establishments  â€
 non- †profit  mechanisms  and  support  to  aspiring
 enterprise  centres  or  parks  in  our  discussions  of
 joint- †ventures  and  strategic  alliances   We  have
 enterprise  gets  off  the  ground  and  the  business
 enterprise  may  be  supplemented  by  an  incubation  partner
 enterprise  This  can  become  a  two- †way
 enterprise  incubate  and  accelerate  its  growth  and  then
 investment   Mike  Lynch  (founder  of  the  company
 economy  could  be  benefit  from  connecting  the  two
 (Economist  21st  Sept  2013  p30  Figure  Four  below
 services  The  historical  link  to  the  advertising  and
 Investments  articulated  the  competitive  advantage  that  London  enjoys
 environment  in  which  the  enterprise  is  located  and
 reflects  the  atmosphere  culture  and  sociability  of  the
§ï§Investment  Finance  incentives  and  speed  of  response
 Enterprise  owners  value  the  physical  closeness  and Â
 services  from  other  companies   Stakeholder  Interests  and
 Influence  With  recognition  of  the  potential  economic  value
 economies  there  is  a  discernible  interest  by  various
 stakeholders  to  engineer  the  development  of  viable  and
 enterprise  ecosystems  We  identify  these  stakeholders  who  may
 hold  an  interest  and  influence  in  the  development
 environments  •Government  agencies  † regional  regulators  industry
 environment  and  positioning  (location  •Entrepreneurs/owner- †managers
 enterprise  •Investors  † commercial  private  local  authorities
 investment  •Financial  service  providers  † banks  providers
 demand  for  integrated/convergent  entrepreneurial  graduates  and  skilled
•Suppliers/enterprise  partners  † aligning  to  client/partner  needs
 environment  design  •Industry- †specific  partnerships  † identifying
 enterprise  partnerships  and  private  sector  investors  towards  the
 enterprise  growth  are  increasing  through  a  variety  of
 investments  to  promote  and  support  the  creative  tech
 enterprise  space  are  gaining  pace  Infrastructure  development  and
Enterprise  structures  and  cultures  within  the  digital  sector
 environments  Employees  look  forward  to  interacting  with  colleagues
 customers  and  partners  in  the  physical  work- †place
opportunity  to  learn  from  their  fast- †moving  and
 enterprise  will  require  cross  disciplinary  talent  and  universities
 stakeholders  identified  above  and  to  support  nascent  entrepreneurs
 Investment  decisions  need  to  be  based  on  a
 enterprise  success  and  failure  and  how  enterprises  look
 for  guidance  from  experienced  investors   Conclusions  Our
 environments  There  is  still  a  lot  to  be
 investment  can  be  more  persuasive  how  talent  flows
 enterprise  and  the  whole  cluster  itself  This  will
 stakeholder  position  the  reader  adopts  the  development  of
opportunities  for  high- †value  employment  green  economic  growth
investment  are  not  lost  The  authors  are  keen
 opportunities  The  authors  are  quite  clear  where  they
 opportunity  for  all  stakeholders  to  take  advantage Â
of  the  benefits  that  these  clusters  bring  Â
 enterprise  success  † why  do  some  cluster  members
 enterprise  performance  An  expected  outcome  would  be  to
 enterprise  design  † its  architecture  culture  and  leadership
economies  Various  credible  sources  have  offered  data  and
 opportunities  of  clusters  and  their  membership  Business  schools
 services  that  could  include  workshops  simulations  think- â€
 environments  Within  this  dynamic  ecosystem  companies  come  and
 Enterprise  Zone  for  start- †ups  and  others
 Enterprise  Partnership  and  also  acts  as  a  home
 services  games  testing  services  and  digital- †workflow
 facilities  are  all  connected  across  the  top  five
 opportunities  and  mirroring  that  a  trend  for  older
Economist  21st  Sept  2013  p  30  Tech  Nation
a Hasselt University, Faculty of business Economics, KIZOK/Innovation Management, Campus Diepenbeek, Agoralaan-Building D, 3590 Diepenbeek, Belgium
Corporate venture capital Innovation policy 1. Introduction Nowadays, no single company, not even the manufacturing giants, can monopolise the knowledge landscape as it used to be
communities of practitioners, customers or specialists usually referred to as â€oeopen sourceâ€. These are all enablers of open
venture capital; state-of-the-art knowledge. Furthermore, the author concludes that the resulting changes in NSI stimulated and accelerated the emergence of OI in the US
their research within a broader economic growth perspective as this paper reveals that OI practices are connected closely to a
benchmark and developing linked indicators 13 These approaches are developed separately and they emphasise different NSI characteristics.
corporate venture capital (CVC) 3, 23. In technology markets, ï rms purchase, sell, and use technologies developed by other ï rms
and business model thinking are linked tightly to each other. Finally, the buzz on open innovation has triggered many ï rms to
licencing, technology-based acquisition, joint-ventures, non-equity R&d investments, and increasingly, direct technology buying or selling.
demand for knowledge ï ows, NSI scholars have listed IPR protection as one of the key functions within a portfolio and havewidely
especially during the 1990s †as big companies were pressured by shareholders to focus on short-term proï ts.
One of the crucial elements holding the open innovation system together is its human and social capital.
including networking and collaboration skills, corporate entrepreneurship, the ability to license technologies, and carrying out R&d.
In addition, policy-makers need to address postgraduate training and †lifelong learning†for a society's human capital as
mobilising public and private resources for technological innovations and have suggested two complementary investment models 66.
returns can be appropriated from such investments 67. The second is the †collective modelâ€, which fosters innovation through
direct public investments in public knowledge goods 68. This model also progressively employs policy instruments to promote
private investments in R&d 69. Examples of such policy instruments are competition policies, tax policies, and subsidies
Therefore, prior to the OI era, innovation came about either through private R&d spending in ï rms or through government
investments in the public sphere 70. A vast range of social resources, such as retired skilled workers,
Economists have shown that the growth of amore complex division of labour is closely bound to the growth of total production
When closed innovation prevailed, the economy of specialisation was largely conï ned within ï rms 74.
Consequently, there is a major opportunity to beneï t from this strong division of labour through an open innovation model
society's point of view, OI provides greater scope for jointly conï guring the best ideas and business models.
strives to come up with the best ideas and the most suitable business models for commercialisation 49,82.
Conversely, in an OI era, knowledge transfer is driven primarily by ï rms'desire to advance current business models, nurture
are ï rms, universities, venture capital organisations, and public agencies chargedwith innovation policy 29. Institutions embrace
economies Such networks are popular in NSI research. However, many scholars have noticed that even when they include other types of
Open source involves collaboration between ï rms, suppliers, customers, and policy-makers of related products to pool software R&d and generate shared technology.
and knowledge-sharing among innovating ï rms, customers, and other interested parties, have been recorded in the literature 94,96.
developments do not automatically lead to the successful launch of products and services 101. More importantly, considerable
national economies. In this study, we examine how open innovation practices in ï rms have an impact on the regional or national
Besides private and public investments in R&d we also need to include a vast range of social resources
and initiatives of companies, it is vital that policy follows this trend to foster amore open innovation environment.
and newly-emerging technology services facilitating open innovation. Fourth, more attention might be paid to the IPR system:
foster and support institutions channelling human and ï nancial resources towards promising technologies and business models
iii) highlight the reworking of good ideas through suitable business models and highly-efï cient markets for technology and
21 D. J. Teece, Competition, cooperation, and innovation: organisational arrangements for regimes of rapid technological progress, J. Econ.
37 H. Chesbrough, K. Schwartz, Innovation business models with co-development partnerships, Res. Technol. Manage. 50 (1)( 2007) 55†59
Change and Economic theory, Pinter Publishers, London, 1988 41 M. P. Hekkert, S. O. Negro, Functions of innovation systems as a framework to understand sustainable technological change:
46 C. Freeman, Continental, national and sub-national innovation systems†complementarity and economic growth, Res. Policy 31 (2)( 2002) 191†211
NBER Innovation Policy & the Economy, 2 (1), MIT Press, Cambridge MA, 2002, pp. 51†77
49 H. Chesbrough, Open Business models: How to Thrive in the New Innovation Landscape, Harvard Business school Press, Boston, Mass, 2006
Evolutionary Economics and Path Dependency, Elgar, Cheltenham, 1997 61 R. Rothwell, Successful industrial innovation: critical factors for the 1990s, R&d Manage. 22 (1992) 221†239
Knowledge-Based Economy OECD, Paris, 1996 64 M. E. Porter, The Competitive Advantage of Nations, Free Press, New york, 1990
69 S. Hess, Individual behaviour and collective action towards the environment: an economic framework based on the social customs approach, Rational.
73 J. Stiglitz, C. E. Walsh, Economics, third edition W. W. Norton & Company, New york, 2002
The Economics of Innovation and Corporate Strategy, MIT Press, Cambridge and London, 2001 76 D. A. Levinthal, J. G. March, The myopia of learning, Strategic Management Journal 14 (1993) 95†112
79 R. A. Burgleman, Corporate entrepreneurship and strategic management: insights from a process study, Manage.
81 B.-Ã. Lundvall, P. Intarakumnerd, J. Vang-Lauridsen, Asia's Innovation Systems in Transition, New Horizons in the Economics of Innovation Series, Elgar
89 V. Chiesa, R. Manzini, E. Pizzurno, The externalisation of R&d activities and the growing market of product development services, R&d Manage. 34 (1
98 H. Katajisto, J. Kimari, Education, Training and Demand for Labour in Finland by 2015, Finnish National Board of education, Helsinki, 2005
101 H. Chesbrough, Business model innovation: it's not just about technology anymore, Strategy Leadersh. 35 (6)( 2007) 12†17
extending his research on open innovation and open business models by performing joint research with various universities around the globe
Customers expect to engage on a more real-time basis, using social media platforms. Staff members wonder why their work tools aren†t all available as mobile apps,
All of these changes provide huge opportunities for those leading businesses able to move quickly to adopt
demands: learning how to transform business processes around the potential of digital, or identifying where and how they can provide new product and service innovations.
companies, while also opening up new business models at the heart of these firms These changes are already apparent to nearly all of us as
month that passes, more services go digital: from checking and adjusting your home†s energy usage via a mobile app, to borrowing
All of these services now exist, and more are created every day This presents a huge opportunity for CIOS, especially those with the
aspiration, as detailed in our previous The DNA of the CIO report, to have a bigger and more influential role within the business.
1 CIOS see digital as a major opportunity to fulfill their career aspirations From Nestlã †s push into direct online selling as a
services for clients, CIOS at all kinds of firms are using digital technology to transform their businesses.
communication and leadership, strong strategic engagement, and a clear focus on growth. More broadly a majority of IT-intensive industry CIOS (67%)show clear
products and services IT-intensive industries 3 Despite a seat at the top table, not enough CIOS are grasping the potential for digital transformation
transformation and driving business model innovation †and they show a set of six unique traits (see text box
new products and services, compared with just 50%of other CIOS. They show a much stronger appetite for risk
90%cite communication and influencing skills as strongly important to their role, compared with 79%of other CIOS
they actively seek out opportunities to work in other parts of the business and in other geographic regions
and their customers interact. At the same time, these technologies are releasing a wave of IT-led
opportunities. This seems like a natural process within internet companies, which are born digital, but the digital transformation is
opportunity to expand their role and remit, especially for those who have grasped the more strategic elements of their role
ways of interacting with its customers. Its new Kindle tablet, for example, has dedicated a button that connects users to a helpline
has used digital technology to create a whole new business model for its Nespresso range of coffee capsules,
these present a major opportunity to expand their role and remit, especially for those engaged on the most strategic
operations and new business models. Gartner2 agrees: its 2013 CIO Agenda Report notes that, while CIOS have spent the past decade
1. Using digital to enhance traditional business models, such as moving from selling products to providing services †Streetcar
and Xerox are two examples 2. Transforming existing business models to offer new digital services †such as 100flowers selling via Facebook
3. Inventing wholly new types of business models †from virtual currencies in online games, to others selling its digital data
â€oein many cases, digital has moved technology toward becoming the front end of the spear rather than the tail feathers, †argues Bob
Concannon, a partner at executive recruitment firm Kornferry â€oecompanies are recognizing that a judicious use of IT can lead them
toward increases in sales and returns on investment never before possible. †From Mcdonald†s to NBC News, a new job title is taking grip in
understand the opportunities for these changes, and for cutting capital spending and moving toward a more flexible business
Indeed, relatively few CIOS are equipped for the demands of a digital world †and those who are not are increasingly at risk. â€oeas
Opportunities ahead for CIOS in IT-intensive industries Previous research5 revealed that about two-thirds of all CIOS (64
digital can provide this opportunity †at least for those who are able to recognize and adapt to this shift
%representing vast investments in IT, given that their average revenues far exceed US$1B Chart 1
IT services and e-commerce Telecommunications Banking Media and entertainment Other Pharmaceutical and biotechnology 16 %20
address the opportunities and threats that digital transformation provides to their firms, they need to be a part of their executive
development of services and products *72 %76%Discussing IT's role in business transformation 73
so the technology environment is strategically important to building and maintaining trust in the organization, â€
%Communication and inï uencing skills 65 %64 %Technological skills and know-how ON IT trends Percentage of respondents who have chosen 8,
still struggle to translate this need for stronger communication and influencing skills into practical reality.
regulators and end customers aren†t as strong. For IT leaders who hold as much sway as they do to influence other parts of the
business, this is a missed opportunity â€oedigital is creating new demands for leadership. Some CIOS are
ready for that and some aren†t, †notes Kornferry†s Concannon â€oethis talk about †the CIO is dead†is sort of silly,
presents CIOS with a fresh opportunity to become relevant to the business, but this digital CIO needs different DNA
Communication and inï uencing Change management Top three skills needed to succeed IT-intensive industry CIO
Communication and inï uencing Change management Top three skills needed to succeed IT-intensive industry CIO
Communication and inï uencing Change management Top three skills needed to succeed IT-intensive industry CIO
Communication and inï uencing Change management Top three skills needed to succeed IT-intensive industry CIO
demands a different mindset To delve deeper into this mindset, we assessed the characteristics of those CIOS most engaged in the strategic elements of their jobs
business model-related innovation. These are the two elements that The DNA of the CIO identified as the most helpful for CIOS trying to
opportunities are for the organization. Too many CIOS are simply reactive, which is why they lose credibility with the rest of the
vision for the company that is directly linked to its business model, †says Nykredit CIO Lars Mathiesen.
understanding of their companies†underlying business models, and products and services. EY€ s Dave Ryerkerk notes that, in the past
businesses would draw up a major initiative †setting out the required processes and the associated operating model †before
It gives us insight into new opportunities to cross-sell or up-sell, †he says
a business model level and in terms of new products and services †something picked out by 81%of digital-ready CIOS, well ahead of
internet communication and entertainment company. â€oewe don†t trade in oil; we trade in innovation, so IT needs to be far closer to
researching and developing new services or products with the executive management team, compared with just 50%of IT
development of services and products 50 %65 %Participating in strategic decision-making 45 %57 %Discussing mergers
their marketing investment is wasted but do not have any idea which half â€oebut there†s no excuse any more.
their marketing investment is wasted but do not have any idea which half â€oebut there†s no excuse any more.
CIOS must get closer to the firm†s end customers their needs and preferences. Half (52%)of digital-ready CIOS place
regularly meet with customers are still very much the exception, †notes Informationweek†s Preston â€oe Now we†re in a world where things are
stakeholders 58 %73 %Chief executive ofï cer (CEO 63 %75 %Chief ï nancial ofï cer (CFO
Communication is a vital part of any CIO€ s role, and one where many acknowledge the need for improvement.
data to transform their business model, or the medical device CIO who articulates the impact of information technology on their
value-added services. They know how to explain these new business models, which may be more profitable than actually
building the physical products, †says Golz. â€oeso it†s a true business conversation. It†s not about upgrading system XYZ to improve
communication and influencing skills as strongly important to their roles. â€oenow that technology-driven innovation has become critical
key executive stakeholders more vital. At The french-Japanese car alliance Renault-Nissan, Managing director IT/IS Celso Guiotoko
about any issues and opportunities, or about how they can get more value from IT, †he says. â€oein addition,
communication line to the CEO: we meet on a monthly basis. †At the same time, digital-ready CIOS are using media channels to
yourself, that is a huge management demand, so it will affect your abilities on strategy and innovation.
companies any money or serve their customers any better, †argues Informationweek†s Rob Preston. â€oethose who focus solely on this are
Nevertheless, digital-ready CIOS do seek out bigger opportunities in IT infrastructure. But with one such opportunity, the cloud, the
attraction for many IT leaders is that it has the potential to reduce the time and money spent on systems and infrastructure
experiment widely to identify the biggest opportunities for the future. â€oedigital CIOS need to be more innovative
opportunity they hold: 64%are either content to stay in their current position, or are simply seeking out a bigger CIO role.
opportunities. â€oeit was one of the key points of my life, †he says †not least in doubling up a new job with sideline
opportunity to transfer to France, which forced him to embrace a new culture and language, and gave him
dynamics of the business world, including the customers and marketing side, †he says Later positions at National australia bank and Lloyds
or an MSC in engineering, economics or physics, there is typically a dimension beyond IT to their studies.
services, rather than in a wholly different sector External advisory or directorship positions In keeping with digital CIOS€ tendency to actively engage
Corporation, as well as an advisor to Epic Ventures, a venture capital firm, and an advisory board member of the
David Eccles School of business Shorter tenures As a result of their greater willingness to pursue new opportunities, many of these leading CIOS have been in
their posts for a relatively short amount of time. In the IT sector, for example, over half took up their current
Group Software Services Nedbank 2007 Advanced Management Programme, Harvard Business school 2005 †2007 Divisional Director
Application Services SAP AG 2002 †2003 Vice president IT Infrastructure, SAP America, Inc 1998 †2002
Services, i2 Technologies 1996 †1997 Director of Information Systems, Toshiba America Electronic Components 1986 †1988
agency services Nykredit 2011 †today Member, IT think tank â€oedenmark 3. 0†2010 †today
Master of Economics University of Aarhus 1989 MDP program Cranfield University Diego Calegari IBM 2013 †today
communicate with customers, through to wholly new business model opportunities For CIOS, all this brings new demands and
pressures to which they will have to react. In particular, successfully dealing with the digital revolution requires a far stronger
focus on the strategic elements of the role as opposed to the basic execution chores. This
opportunities to deliver radically more efficient processes, as well as wholly new products and services But to truly deliver on this
you†ll need a firm grasp of the corporate business and operating model No CIO can get away
business model level Don†t let operational IT overwhelm you Tasks at a strategic level Co
to the end customers Build close relationships with the front of the business Be a compelling
Steps to setting up a digital enterprise CIOS taking the lead on digital need to enable the rapid assembly
products and services should not be introduced unless the underlying technology is available to efficiently support these
demands rapid-assembly teams that represent views from across the business, including marketing, finance and IT,
CIOS need to balance any new digital opportunities against their associated risks. While it may make a lot of sense to move email and CRM systems
services), financial services, life sciences telecommunications, online and e-commerce In addition to this survey, EY conducted an analysis of the
%Software, hardware and computer services Banking and ï nancial services 19 %8 %Chemical, bio-and medical technology
14 %Telecommunication operators and services 8%Semiconductors and telecommunications equipment 7 %Transport and logistics Media and televison
4 %10 %Other E-commerce, internet and social media 6 %Cable operators and services 1 %Global annual turnover
27 %42 %11 %10 %10 %US$500M-US$999M US$1, 000m-US$4, 999m US$5, 000m-US$9, 999m
The Economist, 27 may 2013 Further reading •Ready for take off? How to make the business fly, EY
•Digital data opportunities: using insight to drive relevance in the digital world, EY, 2011 •â€oepredictive analytics:
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