2. Scope
In scope
• Nature of innovation
• Impact of innovation
• Framework around innovation that makes innovation
tangible
Out of scope
• The history of innovation
• The innovation friendly organization
• The legal environment for innovation
• Innovation implementation
-2-
5. Innovation cannot be ruled
• BillGates believed that internet was only a temporarily
phenomena
• Michael Dell started in 1986 and became successful in
1998
• IBM didn’t believe in the personal computer
• Sony had 20 years ago more technology then Apple to
introduce an iPhone
• Larry Page and Sergey Brin who founded Google couldn’t
find any buyer for their new search engine and decided to
commercialize it themselves.
-5-
6. Top of the iceberg
What people
focus on
• To obey rules never
leads to innovation
• Every innovation
started with a failure
The work that is
done before
Eureka
Chaos & failures
-6-
7. Idea
Pitch
Proof of concept
Prototypes
Plan
Innovation Life Cycle
Risk Acceptance
Commitment
Execution
Innovation
Commoditisation
-7-
8. Setting the scene
Market Expansion
High
Execution Excellence
Price per unit
Business Business
Innovation Innovation
Enterprise Innovation
Low
Low High
Cost per unit
V.K. Rangan &
G.T. Bowman -8-
9. What is innovation?
Innovation is not equal to invention
• Invention is the creation of a new idea
• An invention is innovative if it increases
the added value
• Innovation is the practical consequence
of an invention
-9-
10. Voice of customers
Innocents
Defensives
Other users
Clients
Your people
who know
the clients
Client surveys often reproduce the arguments they were told when
they bought your or your direct competitors products and service
-10-
11. Strategic Value Maps
4 Incremental More of the same
Fundamental Value Shuffling
Radical Value Change
3
2
South West
Car Traffic
Competitors
1
0
SouthWest Airlines
-11-
15. Four levels of innovation implementation
Diversity
Recognition
Clients Enthusiasts Pragmatics Conservatives Skeptics
Usability
Innovative Market leaders in
mass markets
Orientation on clients
and service
The Chasm
Innovation-push
of
solution-pull
New idea
Niche-specialists
are born
Phase Incubation Expansion Maturity Acceptation
-15-
Shortage Choice