innovation explained
DESCRIPTION
An explanation of innovation based heavily on the wikipedia definitions of innovation and the innovation models but using a simplified approach to help readers gain an overview of the nature of innovation in business and organisations.TRANSCRIPT
ì “Using Technology Better!”
TechnoVision
Innova'on Explained
TOMI DAVIES
Content
1. What’s Innova.on?
2. What’s NOT Innova.on?
3. Business Innova.on
4. Organisa.on Innova.on
5. Innova.on Sources
6. Linear Model of Innova.on
7. Open Innova.on
8. User Innova.on
9. Innova.on Process
10. Innova.on Diffusion
11. Measuring Innova.on
12. Conclusion
The Great Frontier…
CEO’s want it…..
Strategists write about it….
Marketers talk about it….
Managers aim to deliver it….
So what exactly is it….?
So what is Innovation…?
Innova'on is about solving exis'ng problems with a new idea, device or process that is significantly beDer/faster/cheaper than before.
It can be viewed as the applica'on of beDer solu'ons that meet new requirements, unar'culated needs, or exis'ng market needs to create customer (and business) value.
At it’s core, the aim of innova'on is to create significantly more value.
…and what is not innovation?
Innova'on differs from inven8on in that innova'on refers to the use of a beDer and, as a result, novel idea or method, whereas inven'on refers more directly to the crea'on of the idea or method itself.
Innova'on differs from improvement in that innova'on refers to the no'on of doing something different rather than doing the same thing beDer.
Business
In business and economics, innova'on is the catalyst to growth.
Industries incessantly revolu'onize the economic structure from within, by innova'ng with beDer or more effec've processes and products.
Entrepreneurs are con'nuously look for beDer ways to sa'sfy their consumer base with improved quality, durability, service, and price which come to frui'on in innova'on with advanced technologies and organiza'onal strategies.
Organisations
In the organiza'onal context, innova'on may be linked to posi've changes in efficiency, produc'vity, quality, compe''veness, market share and others.
It is the means by which organisa'ons either create new wealth-‐producing resources or endow exis'ng resources with enhanced poten'al for crea'ng wealth.
All organiza'ons can innovate.
Innovation Sources
Innova'on can occur as a result of a focus effort by a range of different agents, by chance, or as a result of a major system failure.
Other sources of innova'ons include changes in industry or market structure, in local and global demographics, in human percep'on, mood or meaning or end-‐user innova'on where an agent (person or company) develops an innova'on for their own (personal or in-‐house) use because exis'ng products do not meet their needs.
Linear Model of Innovation
The Linear Model of Innova'on is an early model of innova'on that suggests technical change happens in a linear fashion from Inven'on to Innova'on to Diffusion.
It priori'ses scien'fic research as the basis of innova'on, and plays down the role of later players in the innova'on process.
Two versions of the linear model of innova'on are oTen presented: § "technology push" model § "market pull" model.
Inven'on Innova'on Diffusion
Open Innovation
Open innova'on is "innova'ng with partners by sharing risks and rewards.”
it is understood as the systema'c encouragement and explora'on of a wide range of internal and external sources for innova've opportuni'es, the integra'on of this explora'on with the organisa'ons capabili'es and resources, and the exploita'on of these opportuni'es through mul'ple channels.
User Innovation
User innova'on refers to innova'on by intermediate users (e.g. user companies) or consumer users (individual end-‐users or user communi'es), rather than by suppliers (producers or manufacturers).
User innova'on has a number of degrees: innova'on of use, innova'on in services, innova'on in configura'on of technologies, and finally the innova'on of novel technologies themselves.
The Innovation Process
It is increasingly agreed that innova'on process requires:
§ Iden'fying/recognising the macro/micro trends and customer/market needs that drive the innova'on
§ Having or developing competent people with relevant technology,
§ Having/Finding adequate financial support.
§ Managing the complex and oTen itera've feedback loops between marke'ng, design, manufacturing, and R&D.
Innovation Diffusion
Master
Innova'on diffusion manifests in different ways in various cultures and fields and is highly subject to the type of adopters and innova'on-‐decision process but is generally influenced by four main elements: the innova'on itself, communica'on channels, 'me, and a social system.
This process relies heavily on human capital as the innova'on must be widely adopted in order to self-‐sustain with the categories of adopters being innovators, early adopters, early majority, late majority, and laggards.
Measuring Innovation
Master
There are two different types of measures for innova'on: the organiza'onal level and the poli'cal level.
The measure of innova'on at the organiza'onal level relates to individuals, team-‐level assessments, and private companies from the smallest to the largest.
For the poli'cal level, measures of innova'on are more focused on a country or region compe''ve advantage through innova'on.
Innovation Types
Master
In Breakthrough Innova'on, the problem is well defined but domain experts are unclear how to proceed
With Sustaining Innova'on, the problem is well defined and the domain experts know how to proceed
In Disrup8ve Innova'on, the problem is unclear but the domain experts have the knowledge and skills to proceed
With Research & Development, both the problem and solu'on are unclear
Breakthrough Sustaining
R & D Disrup've Prob
lem Defi
ni8o
n Not W
ell D
efine
d Well D
efine
d
Not Well Defined Well Defined Solu8on Defini8on
Conclusion
Master
Innova'on is necessary for a company to grow with purpose, extend the product life-‐cycle and stay relevant in compe''ve markets. It means:
§ Crea'ng outstanding features for exis'ng offers or developing new ones
§ Finding new ways to price for extrac'ng value from customers
§ Finding new ways to support customers before, during and aTer sales
§ Finding new ways to delight customers during every interac'on with the company
§ Finding new ways to to significantly improve the way people in the company go about doing their work
§ Finding new ways to engage with suppliers or engage with different types of suppliers
§ Finding new ways to send the company’s offering to market
