Entrepreneurship and Innovation in AXA Group and Qaboos University - Case Study Example

Student Name: Tutor: Title: Entrepreneurship and Innovation Course: Table of Contents Table of Contents 2 Task 1: AXA Group 3 Task 2: Qaboos University 5 Task 3: Plan 7 References 12 Task 1: AXA Group There are several characteristics that facilitate the innovation process at the French multinational company AXA. AXA has an innovation centre in Silicon Valley where the company hopes that the gold rush-infused entrepreneurial culture of the Valley will impact positively on its innovative efforts. AXA insurance company is also investing heavily in order to facilitate innovation. Innovation is at the core of AXA corporate culture. Innovation finds expressions within the support provided to startups by creating an ecosystem of structures that are specifically dedicated to investment as well as innovation (Storey & Kahn, 2010). The company has an emerging trend detector known as AXA Lab to be on the lookout of emerging customer needs. The company recognizes the changing trends in customers’ needs and the dynamism in the competitive business world. Innovation cannot happen without enough resources allocated to the innovation efforts. AXA has a venture capital fund known as AXA Strategic Venture (ASV). This fund is specifically set aside to facilitate any innovation efforts within the company. Many startups have suffered setbacks due to inadequate funding and AXA recognizes the need of having a special kitty of funds directed towards facilitating innovation. The kitty has about £200 Million venture capital targeted at evaluating emerging strategic innovations connected to insurance, financial technology, asset management, as well as healthcare service industries. AXA Strategic Ventures is described by the company as dedicated to improving customer experience and fostering entrepreneurial discovery (Ross, 2016). Despite having its headquarters in Paris, the venture has offices in New York, Zurich, London, Berlin, Hong Kong and San Francisco. The establishment of ASV resonates with an important trend in insurance technology that involves investments in startups. The company has done much more in facilitating innovation through having AXA Factory as an accelerator of innovation. This is a place where members of the organizations can be facilitated to develop their ideas into new products that can give the company a competitive edge over the others in the same industry. AXA has facilitated innovation through AXA partners who act as business partnership facilitator (Storey & Kahn, 2010). The company has developed partnerships with other innovative companies like BlaBlaCar and Linkedin. The investments and partnerships make AXA a business leader in the technological and digital developments and provide innovative services in move to better meet and anticipate the needs of the customers. AXA has accelerated its investments in Asia to further support its innovation capabilities. The company has setup AXA Lab Asia in China in Shanghai to facilitate innovation. AXA has established Data Innovation Lab in Singapore and installed AXA Strategic Ventures in Hong Kong. Asia is a key strategic focus for AXA and the company targets one hundred million clients within the region by the year 2030. In 2015 the company announced the establishment of three new structures that are tailored towards investment and innovation within Asia to connect the company to the rapidly developing talents, entrepreneurs as well as new business models within the region (Ross, 2016). The development of the new structures will support the existing presence of AXA in North America and Europe with the objective of improving customer experience using pilots, investments and partnerships. Task 2: Qaboos University Sultan Qaboos University is an institution of higher learning with international repute. Sultan Qaboos University encourages competition in developing young talents and encouraging innovation. A team from the University took part in the Eco-Friendly House Competition where they engaged in designing as well as building an eco-friendly house (Goksoy, Vayvay & Ergeneli, 2013). The eco-friendly competition is inspired through the traditional Omani architecture. The winning team is anticipated to blend design excellence and consumer appeal with maximum efficiency and optimal energy production. The Research Council initiated the competition with the purpose of encouraging a culture of innovations and research of high quality in promoting cost-efficient and cost-effective buildings. The competition involved both private and public institutions of higher learning that provide academic programs like engineering, architecture and design. The Coordinator of the Department of Civil and Architectural Engineering at Sultan Qaboos University highlighted the competition as a public event that is purposed to enhance awareness concerning residential energy consumption (Lasserre, 2012). The evaluation criterion calls for teams to design, build, as well as operate energy-efficient homes that can generate adequate energy the electricity needs as well as maintain optimal indoor thermal conditions applying construction techniques that are sustainable. There are various developments that the university management and community at large can engage in to foster the culture of research and innovation. For instance, the Scientific Journals in Sultan Qaboos University make use of an old system as well as a manual. It is important to develop a way that can make the students to access the scientific journals with easy and using simple operations (Goksoy, Vayvay & Ergeneli, 2013). There are strategic changes that can be applied to enhance innovation management at the University. Some of the strategies that can enhance improvement of innovation in the university include: Setting aside resources: It is important to invest in innovation. Innovation cannot place without enough resources being set aside for that specific purpose of fostering innovation. Good ideas have to be incubated before they developed into innovative products. Partnerships: Important of partnerships cannot be reemphasized; partnerships are fundamental in exploring innovation. It is essential to learner from organizations that have been at the forefront in entrepreneurship and innovation (Lasserre, 2012). Sultan Qaboos University has to partner with other universities in teams of research, innovation and encouraging a consultative environment. Creating an enabling environment: Old bureaucratic systems that are rigid to change cannot facilitate innovative ideas and encourage young talents to be experimental and innovative. Any organization has to create an environment that will foster innovation and encourage the members to give new ideas. One of the biggest unrealized opportunities within organizations of higher learning is the fully leveraging of ideas and knowledge in order change operation processes into perpetual innovation (Ross, 2016). Global operations and markets compel companies to revise business innovation and go ahead and research activities and hence overall competitiveness. Business research and innovation contribute largely to the improvement in enterprise quality and innovation, integral elements of business strategy as well as strategy. Entrepreneurial skills can be taught in institutions of higher learning. Rewarding innovation: There should be an elaborate system of rewarding innovation. Any student or member of staff that comes up with an idea that helps to solve problems within the university or community has to be rewarded for his effort in order to encourage a culture of innovation. Task 3: Plan Sultan Qaboos University Plan for creating and/or Sustaining an Innovative Environment Strategies Program Activities Tasks Resource Allocation 1. Resource Allocation: Resource allocation is fundamental since it sets the tempo for innovation and helps in creating a roadmap towards an innovative culture. An individual will get involved in innovative ideas when he/she knows that the ideas can be funded properly. Establishing a team that will be engaged in sourcing for funds for innovative ideas and research -Fundraising for the purpose of innovation. -Reaching out to organizations that support research and development for support. -go to companies that can support the innovative agenda -seek the support of the government funding on innovation This is the foundation of any innovative agenda. A special kitty fund has to be established specifically for fostering innovation. £100M is amount that can be set aside purposefully for innovation and research. Innovative ideas have to be funded. 2. Partnerships: Partnerships are crucial to creating an innovative culture. The university can learn a lot from other partners have created innovative centres successfully. Identify universities and other important institutions to work with in encouraging an innovative culture. -organizing exchange programs with other universities to exchange ideas in research and development. -encouraging partnerships between departments of the university and other institutions -Visiting other incubation centres of companies that are well established. -offering innovative ideas to companies in the development of new products and operation systems Resources have to be set aside as travelling and communication expanses for teams from Sultan Qaboos University who are engaging in research partnership with other institutions. £1M will be appropriate for such expenses like food, accommodation, communication and travelling. 3. Creating an enabling environment: Incubating and investing in innovation is important. Students and staff members have to be allowed to work on individual projects outside the academic calendar in order to foster innovation and research. Members of the university must have access to laboratories and libraries within the university for them to engage in constructive research that results into new ideas. Setting aside facilities to be used in developing innovative ideas. -organizing workshops to sensitize students on the importance of innovation -inviting well known innovators and entrepreneurs to share their success stories on innovation. -Calling on students to submit innovative ideas for funding. -Funding startups by students Funds have to be set aside in facilitating innovation. The university has to be ready to fund startups and encourage students to be innovative and engage in continuous research. £5M will be appropriate in creating an enabling environment. 4. Rewarding Innovation: It is important to reward innovation efforts in order to encourage students and members of staff to engage in research and development. Innovative ideas will be developed when people understand that they will be rewarded for their effort. Develop a reward program for innovation -organizing competition in research and innovation -ranking innovative ideas and acknowledging young innovators. -Sporting and rewarding innovative ideas -training students on patenting their innovative ideas and importance of intellectual property. The university set aside £10M as refund kitty to reward innovative efforts demonstrated by any member of the university within the university and the community. Recommendations: The Sultan Qaboos university is working in the right direction towards creating an enabling environment to enhance an innovative culture. The management has to do more beyond creating a portal on the university website that asks members of the university to submit innovative ideas in order to get support. The management has to reach out to the students and members of staff directly in workshops and awareness meetings to sensitize them on the important of innovation and research to an institution of a higher learning. The taken by Sultan Qaboos University in hosting and piloting the first program of Academic Innovative Assistance launched by the Research Council is commendable and in good spirit of innovation (Ross, 2016). The outcome of the program will assist in the launching of similar programs in other institutions of higher learning. The university has to create an ideal environment of improving and discovering capabilities and talents of researchers. The lecture time has to be allocated in a way that it builds the personality of the learner and allows him to keep in touch with the advancement in technology and culture. The agenda of innovation has to be precisely captured in the institution’s mission and vision. The university has to carry out research and identify the barriers to innovation. The student community can share on the challenges that they encounter in their quest to be innovative. Identifying the challenges to innovation can help in creating a roadmap towards an enabling environment for innovative ideas. The issue of intellectual property has to be discussed from a legal perspective in order to assure young innovators that their ideas are safe once they come up with something new (Aho, 2012). Students have to learn the procedure of securing their ideas through patents before they are stolen by players in the corporate world and developed into new products. The leadership has to recognize young talents and appropriately reward innovative ideas in order to encourage the rest of the university community to engage in research and innovation. Students have to be encouraged to take part in nonacademic research that is geared towards new product development. The university has to continue fostering relationships with renowned universities in academic excellence and innovation and research. References Aho, L., 2012. The Global Giants and Climate Change: how do world’s largest companies respond to the challenge? Goksoy, A., Vayvay, O. and Ergeneli, N., 2013. Gaining competitive advantage through innovation strategies: an application in warehouse management processes, American Journal of Business and Management, 2(4), pp.304-321. Lasserre, P., 2012. Global strategic management. Palgrave Macmillan. Storey, C. and Kahn, K.B., 2010. The role of knowledge management strategies and task knowledge in stimulating service innovation, Journal of service research. Ross, A., 2016. Establishing a system for innovation in a professional services firm, Business Horizons, 59(2), pp.137-147. Read More