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DR. DILEEP BHANDARKAR
IEEE LIFE FELLOW
INNOVATION AND BREAKTHROUGH FORUM 2016
23 JANUARY 2016
• 1970: B. Tech, Electrical Engineering (Distinguished Alumnus)
• Indian Institute of Technology, Bombay
• 1973: PhD in Electrical Engineering
• Carnegie Mellon University
• Thesis: Performance Evaluation of Multiprocessor Computer Systems
• 4 years - Texas Instruments
• Research on magnetic bubble & CCD memory, Fault Tolerant DRAM
• 17.5 years - Digital Equipment Corporation
• Processor Architecture and Performance
• 12 years - Intel
• Performance, Architecture, Strategic Planning
• 5.5 years - Microsoft
• Distinguished Engineer, Data Center Hardware Engineering
• Since January 2013 – Qualcomm Technologies Inc
• VP Technology, Data Center Group
DON’T BE AFRAID!
•“Follow the path of the unsafe, independent thinker.
Expose your ideas to the danger of controversy.
Speak your mind and fear less the label of
''crackpot'' than the stigma of conformity.”
– Thomas J. Watson
WHAT IS INNOVATION?
• The process of translating an idea or invention into a good or service that creates value or for
which customers will pay.
• To be called an innovation, an idea must be replicable at an economical cost and must satisfy
a specific need.
• Innovation involves deliberate application of information, imagination and initiative in deriving
greater or different values from resources, and includes all processes by which new ideas are
generated and converted into useful products.
• In business, innovation often results when ideas are applied by the company in order to further
satisfy the needs and expectations of the customers.
Read more: http://www.businessdictionary.com/definition/innovation.html#ixzz3vdjSXCOE
DEFINITION OF INNOVATION
Introduction of new ideas that add ‘value’ to a firm’s activities
OECD The Oslo Manual Page 16
• introduction of a new product or a qualitative change in an
• process innovation new to an industry
• the opening of a new market
• development of new sources of supply for raw materials or other
• changes in industrial organisation
•A better way of doing things
1st Cell Phone
Telephone iPhone 2007
•Innovation is simply the process of creating and
implementing new ideas
•Three main types of innovation exist:
1) Technical Innovation
2) Process Innovation
3) Administrative Innovation
• Technical innovations are defined as new products and processes
and major technological modifications to products and processes.
An innovation is considered performed if it is introduced to the
market (product innovation) or implemented in the production
process (process innovation). Innovation includes many research,
technological, organizational, financial and commercial activities.
• Technical innovation is simply the creation of a new product or service.
• Some examples:
- A new line of automobiles
- The introduction of cellular telephones
ROLE OF RESEARCH & DEVELOPMENT
• R&D represents only one of these activities and can take place during various
stages of the innovation process. It can play not only the role of the original
source of the innovation ideas but also the role of problem solution
framework, which can be turned to at any stage of the implementation.
OECD, Frascati Manual 1992
• Process innovation is achieved through the creation of a new means of
producing, selling, and/or distributing an existing product or service.
• Some examples are:
- Online Banking, etc.
• Administrative innovation is the creation of a new organization design which
better supports the creation, production and delivery of services or products.
• Virtual Teams: any task-focused group that meets w/out all members being in the same
room or even working at the same time.
• Just In Time Manufacturing Supply Chain
• The ability to see a problem in several dimensions
• The ability to truly understand the problem at
• The ability to solve the problem in a more
efficient or effective way
INNOVATION AND BUSINESS
• "Business has only two functions, innovation and marketing."
- Peter F Drucker
• “Creativity is thinking up new things. Innovation is doing
- Theodore Levitt
• “Innovation distinguishes between a leader and a follower.“
- Steve Jobs
THE INNOVATION PROCESS
(product or process)
DIFFUSIONCOMMERCIALISATIONRESEARCH AND DEVELOPMENT
21 2 3 4 5
Source: Greenhalgh and Rogers (2010)
INVENTION, INNOVATION, DIFFUSION
• Invention: creation of an idea to do or make
something (profitability not yet verified)
• Innovation: new product/ process commercially
valuable i.e. successfully developed inventions.
• Diffusion: the spread of a new
invention/innovation throughout society or at least
throughout the relevant part of society.
• Without this cannot gain full benefits
• Some of this represents ‘spillovers’ or ‘positive
SCIENTISTS, KNOWLEDGE AND TECHNOLOGY
• Discover knowledge by research
• Disseminate knowledge (open science?)
• Knowledge is public good(non-rival in use), hence created
• Universities, government labs, some large firms
• It may represent the basis for technological advances
• Application of knowledge to ‘production’
• Firms driven by profit incentive
• Private good: investment (R&D) projects, appropriate, use of
• Product innovation
• A good or service that is new or significantly improved. This includes significant
improvements in technical specifications, components and materials, software in
the product, user friendliness or other functional characteristics.
• Process innovation
• A new or significantly improved production or delivery method. This includes
significant changes in techniques, equipment and/or software.
• Marketing innovation
• A new marketing method involving significant changes in product design or
packaging, product placement, product promotion or pricing.
• Organisational innovation
• A new organisational method in business practices, workplace organisation or
TECHNOLOGICAL & SOCIAL INNOVATIONS
• Technological innovations – based on specific technology, invention, discovery,
• Social innovations – in critical historic periods more important than
technological ones (mail, educational systém, social systém, health care, …)
• Sustaining Innovation that does not affect existing markets. It may be either:
• Evolutionary innovation that improves a product in an existing market in ways that customers are expecting
(e.g., fuel injection)
• Revolutionary (discontinuous, radical) innovation that is unexpected, but nevertheless does not affect existing
markets (e.g., the automobile)
• Disruptive Innovation that creates a new market by applying a different set of values, which
ultimately (and unexpectedly) overtakes an existing market (e.g., the lower-priced Ford Model T)
• Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which
a product or service takes root initially in simple applications at the bottom of a market and then
relentlessly moves up market, eventually displacing established competitors. - See more at:
SUSTAINING VS DISRUPTIVE INNOVATION
Source: Clayton Christiansen
• As companies tend to innovate faster than their customers’ needs evolve, most organizations eventually end
up producing products or services that are actually too sophisticated, too expensive, and too complicated
for many customers in their market.
• Companies pursue these “sustaining innovations” at the higher tiers of their markets because this is what has
historically helped them succeed: by charging the highest prices to their most demanding and sophisticated
customers at the top of the market, companies will achieve the greatest profitability.
• However, by doing so, companies unwittingly open the door to “disruptive innovations” at the bottom of the
market. An innovation that is disruptive allows a whole new population of consumers at the bottom of a
market access to a product or service that was historically only accessible to consumers with a lot of money
or a lot of skill.
• Characteristics of disruptive businesses, at least in their initial stages, can include: lower gross margins,
smaller target markets, and simpler products and services that may not appear as attractive as existing
solutions when compared against traditional performance metrics. Because these lower tiers of the market
offer lower gross margins, they are unattractive to other firms moving upward in the market, creating space
at the bottom of the market for new disruptive competitors to emerge.
- See more at: http://www.claytonchristensen.com/key-concepts/#sthash.C9TVaUe3.dpuf
• Research and development (R&D)
Innovation is an opportunity for something new & different.
It is always based on change.
Innovators do not view any change as a threat but as an opportunity
CHAIN LINK MODEL OF INNOVATION
Source: Organisation for Economic Co-operation and Development OSLO Manual
EVOLUTION OF COMPUTERS
“The phone in your pocket will be as much of a computer as anyone needs”.
– Dr. Irwin Jacobs, Qualcomm Founder, 2000
MY INNOVATION EXPERIENCE
• Failed: Magnetic Bubble Memory versus Hard Disk Drives
• Evolution often beats Revolution especially when incumbent is strong
• Success against Mainframes
• Failure: Denial against RISC Workstation Technology Threat
• Personal Computers
• Success against RISC Workstations
• PC Technology eventually used in Enterprise Servers
• Volume Economics Matters!
• Smartphone Technology is the Next Wave
• Understand what the customer needs but don’t ask what he wants
• Automobile vs Faster Horse
• Never underestimate the incumbent
• Denial is not the name of a river in Egypt
• Strategy without Execution is Doomed
• What worked in the past may not work in the future
• There is often a Time and Place for New Ideas
• Challenge Conventional Wisdom but Be Real
• Do not wear Rose Colored Glasses – Measure The Situation Realistically
• Understand the Risks
• Monetization Strategy is important
• Business Plan is Essential
• Time To Market Matters!
CLAYTON CHRISTIANSEN QUOTES
• “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.”
• “Motivation is the catalyzing ingredient for every successful innovation. The
same is true for learning.”
• “Disruptive technologies typically enable new markets to emerge.”
• "Generally, disruptive innovations were technologically straightforward,
consisting of off-the-shelf components put together in a product architecture
that was often simpler than prior approaches. They offered less of what
customers in established markets wanted and so could rarely be initially
employed there. They offered a different package of attributes valued only
in emerging markets remote from, and unimportant to, the mainstream.“
• “Don’t be encumbered by past history, go off and do something wonderful.”
- Bob Noyce, Intel Founder
“The only way to be truly satisfied is to do what you believe is great work. And
the only way to do great work is to love what you do. If you haven’t found it
yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when
you find it.” - Steve Jobs
• “Be A Nerd” – Mark Zuckerberg
• The difference between theory and practice is always greater in practice than
it is in theory!
• Solve the correct problem with effectiveness and efficiently
• Manage innovation as a project
• Analyze risks
• Use models, scenarios, simulations, proofs of concept
• Study examples of succesful and unsuccesful innovation projects
• Understand Strengths, Weaknesses, Opportunities, and Threats