IMBA_ICMT_DARPA FINAL
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DARPA is the Defense Advanced Research Projects Agency, established in 1958 with a mission to prevent strategic surprise for the US. It has an annual budget of $2.9 billion and focuses on radical innovation through short term project teams with top talent. Suggestions are made to enhance DARPA's innovation, including improving commercialization to create alternative revenue streams, expanding its network and projects to social sciences, and establishing a knowledge management office to better capture and reuse learnings.
IMBA_ICMT_DARPA FINAL
- 1. Innovation 'Audit' and Innovation Plan Based on 'Ten Types of Innovation' AUEB / IMBA INNOVATION, CREATIVITY & THE MANAGEMENT OF TECHNOLOGY Chronopoulos Christoforos Karakalos Athanasios Markoulatos Zafeirios Pitsikas Leonidas Protopapadaki Evdokia Roussou Athina
- 2. COMPANY PRESENTATION – 1/2 AUEB / IMBA / ICMT / 10 TYPES / DARPA 1 Property Value Name Defense Advanced Research Projects Agency Established 1958 Budget FY 2014 Thousands $ 2,865,087 Current Director Arati Prabhakar Mission Creating & Preventing Strategic Surprise Personnel 240 (140 technical). Products Internet (1969), GPS (1959), UAV (1960s), Stealth technology (1983), Motion-sensing micromachines (1990s), Revolutionary Prosthetics (Current), Carbon Composites (1970s), da Vinci telepresence surgical system (2000).
- 3. COMPANY PRESENTATION – 2/2 AUEB / IMBA / ICMT / 10 TYPES / DARPA 2 Property Value Client U.S. Department of Defense Idea generation • Recognize that a scientific field has emerged or reached an inflection point, and that it can solve, often in a new way, a practical problem of importance. • Uncover an emerging user need that existing technologies cannot address. Client involvement Through liaisons, field trips and assigned officers. Project duration Typically 3-5 years. Project description Fast iterations with go / no-go milestones. Owns research labs No. Research is outsourced. DARPA manages the Project teams.
- 4. CURRENT INNOVATIONS ASSESSMENT – 1/3: CONFIGURATION AUEB / IMBA / ICMT / 10 TYPES / DARPA 3 Profit Model Not for Profit Government agency. Not selling directly to its clients. Government funds held until project teams pass go/no-go milestones. Assessment: N/A Network Military, Academia and Industry University researchers and technology firms from not relevant sectors. Operational Liaisons: Military officers keep DARPA well connected with the problems of the agencies. Assessment: STRONG Structure Flat, Agile, Top talents Outsources all R&D. Interdisciplinary temporary teams with role rotation. Only 3 layers of hierarchy. Attracts top talents with short term contracts. Assessment: STRONG Process End Game Approach Differentiation against the traditional way research (basic / applied) is conducted. Not open-ended, early exit in the absence of progress is part of the strategy, huge budgets, high-risk projects / deliverables. Assessment: STRONG
- 5. CURRENT INNOVATIONS ASSESSMENT – 2/3: OFFERING AUEB / IMBA / ICMT / 10 TYPES / DARPA 4 Product Performance Technological Surprise DARPA focuses on radical innovation, not incremental. However, DARPA moves from fundamental technological advances to prototyping, and then hands off the system development and production to the military services or the commercial sector. Assessment: STRONG Product System Different Technologies Complement DARPA uses interdisciplinary teams to create and combine different technologies from different disciplines in order to meet the strategic objective of each program. Assessment: NORMAL
- 6. CURRENT INNOVATIONS ASSESSMENT – 3/3: EXPERIENCE AUEB / IMBA / ICMT / 10 TYPES / DARPA 5 Service Proactive Personalized service (DoD example: meeting with military individuals who bring problems in and take solutions out) DARPA management team visits to the field (practical use of innovation and on-site identification of possible problems). Assessment: STRONG Channel Distributing innovation The channel is distributing innovation to its customer (DoD) and between the companies. The Small Business Technology Transfer fosters small business teaming. Assessment: NORMAL Brand “Elite organization with a storied history” DARPA has multiple attractions in order to attract top talents: Performing service to your country, the honor of being asked to work for an elite organization with a storied history, and the opportunity to pursue something amazing, often countercultural. Assessment: STRONG Customer Engagement Operational Liaisons Operational Liaisons - Military officers that keep DARPA well connected with the problems of the agencies. However, because of its role in the DoD, DARPA has only one customer and its one customer only chooses DARPA for strategic innovation. Assessment: NORMAL
- 7. SUGGESTIONS FOR ENHANCING INNOVATION – 1/4 AUEB / IMBA / ICMT / 10 TYPES / DARPA 6 Profit Model Enhancement – Commercialization. Funded by the US government, DARPA returns value through R&D. By improving its commercialization activities, DARPA will create alternative sources of revenue. • Value created will be commercialized through: • Licensing. • Ventures. • New Product Spinoffs. • As a nonprofit research agency, DARPA is driven by stakeholder value, not shareholder value. The revenue generated by the new commercialization activities, and marketplace solutions is reinvested in DARPA capabilities and staff to advance its mission. • Alternative revenue streams will improve DARPA independence and autonomy, while private investments will further fuel R&D.
- 8. SUGGESTIONS FOR ENHANCING INNOVATION – 2/4 AUEB / IMBA / ICMT / 10 TYPES / DARPA 7 Product Performance, Profit Model and Service – Innovation Management Consulting, Intangible assets capitalization attitude. • Diffuse knowledge about innovation / consulting services both in private and public sector. • Product System and Product Performance: • Unique product features (prototype innovation model). • Integrated and Interconnected with firm’s business as usual activities. • Profit model: • New Revenue stream (consulting fees). • Risk free Revenues (capital requirements are zero).
- 9. SUGGESTIONS FOR ENHANCING INNOVATION – 3/4 AUEB / IMBA / ICMT / 10 TYPES / DARPA 8 Network, Product Performance and Product System – Expansion to Social Sciences. DARPA can use its unique structure, process and brand to offer Strategic Advantage to the U.S. in expanded fields of modern warfare. The recent economic crisis calls for an advance in the social sciences, especially in the field of economics. • DARPA clientele can expand to the Federal Reserve System (Fed) and its network can expand to the credit rating agencies (S&P, Moody’s, Fitch) and investment firms. • The DARPA network can bring together advanced computer companies and AI specialists with Social Network Scientists and Economists. • The product system can be a set of theories, algorithms along with the respective software and hardware that will be able to predict and prevent (or smooth-out) future economic or social crises. • The finalized products can lead to a new era of mankind – much like the Atomic bomb and the Internet (along with their inherent disadvantages) created our modern world.
- 10. SUGGESTIONS FOR ENHANCING INNOVATION – 4/4 AUEB / IMBA / ICMT / 10 TYPES / DARPA 9 Process – Knowledge Management Application. Given that DARPA is also a learning organization we propose that a KNOWLEDGE OFFICE could also be established. • Structure and Process Enhancement: KNOWLEDGE MANAGEMENT OFFICE • Application of special Knowledge Management Programs guided by Knowledge and Intellectual Property Managers. Collaboration between Project Managers and Knowledge Managers or training of the Project Managers for the Knowledge Management Principles and Practices. • Applying the Knowledge Circle (learning before, whilst, after) in every single project should result in: • Creativity enhancement (greater ideas). • Control and capturing of the new knowledge, created during projects of limited duration and by constantly rotating scientists, for future exploitation. • Increased rate of successful projects.
- 11. CONCLUSION AUEB / IMBA / ICMT / 10 TYPES / DARPA 10 DARPA is the company responsible for the most ground-breaking innovations. However our proposals may: • Shield the company from political games (alternative revenue streams-consulting). • Ventures and funds will further fuel the innovation race (spin-offs). • Stakeholder value will increase (society will benefit from the expanding to social sciences). • Synergy between parallel ongoing programs (knowledge management).
- 12. REFERENCES AUEB / IMBA / ICMT / 10 TYPES / DARPA 11 • DARPA Official site: www.darpa.mil • Wikipedia: http://en.wikipedia.org/wiki/DARPA • “Special Forces” Innovation: How DARPAAttacks Problems – HBR, October 2013 • DARPA's Approach to Innovation and Its Reflection in Industry: http://www.ncbi.nlm.nih.gov/books/NBK36337/ • Statement by Dr. Tony Tether (Director of Defense Advanced Research Projects Agency) to Subcommittee on Terrorism, Unconventional Threats and Capabilities (House Armed Services Committee – United States House of Representatives) on March 13, 2008: http://web.archive.org/web/20080802030708/http://www.darpa.mil/body/news/2008/hasc3- 13-08.pdf