3. In business and economics,
innovation is the catalyst to growth
4. ORGANIZATION
A social unit of people that is structured and
managed to meet a need or to pursue
collective goals.
An organization or organization is an entity
comprising multiple people, such as an
institution or an association, that has a
collective goal and is linked to an external
environment.
5. Innovation
Innovation is simply the process of creating
and implementing a new idea or ideas.
Three main types of innovation exist:
Process Innovation
Technical Innovation
Administrative Innovation
6.
7. Process Innovation
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:
Supply Chain Mgt
E-commerce
8. Technical Innovation
Technical innovation is simply the creation of
a new product or service.
Some examples:
A new line of automobiles
The introduction of cellular telephones
9. Administrative Innovation
Administrative innovation is the creation
of a new organization design which
better supports the creation, production
and delivery of services or products.
An example is:
Virtual Teams: any task-focused group
that meets w/out all members being
in the same room or even working at
the same time.
10. Christensen (1997)
Incremental innovation in terms of: ‘a change that
builds on a firm’s expertise in component technology
within an established architecture.’
Incremental innovation is a series of small
improvements or upgrades made to a company's
existing products, services, processes or methods. The
changes implemented through incremental
innovation are usually focused on improving an
existing product's development efficiency, productivity
and competitive differentiation.
12. Henderson and Clark’s (1990) terms:
‘Radical innovation establishes a new dominant design,
and hence a new set of core design concepts embodied in
components that are linked together in a new architecture.’
13. Examples of Radical Innovation
In late November 2004, Dixons, a major UK electrical
retailer, announced that they would no longer stock VCRs
(video cassette recorders) because these have been
outmoded by DVDs (digital versatile disks) and digital hard-
disk storage products.
In services, we are currently seeing the decline of
photographic film development and printing services, as
photographers switch to digital cameras and home printers.
The postal service for letters and cards is being replaced by
e-mail and mobile telephone communications.
14. S-Curve is a measure of the speed of
adoption of an innovation.
First used by in 1903 by Gabriel
Tarde, who first plotted the S-shaped
diffusion curve.
This process has been proposed as
the standard life cycle of
innovations can be described using
the S-Curve
19. Where Do Ideas Come From?
• Great ideas do not necessarily come from tech-focused
research. They’re often derived by studying
demographic, geo-political, societal, economic and other
global dynamics
• Brainstorming for ideas does not often work
20. Features or Sustaining
Innovations
Continuing to add features to one product is
not the same as innovation
It really just slightly modifies the one single
s-curve. (i.e. different models of Honda Cars)
a sustaining innovation does not create
new markets or value networks but rather
only evolves existing ones with better value,
allowing the firms within to compete against
each other's sustaining improvements.
Sustaining innovations may be either
"discontinuous" or "continuous"
21. 3 Horizon Growth
Horizon 1 – current business
Horizon 2 – related business
Horizon 3 – completely new business
Alchemy of Growth
Simple type of portfolio management
Great starting point
Teaches about the differences of innovation
24. Examples of Disruptive Innovation
Innovation Disrupted
Market
Details of Disruption
Digital
photography
Chemical
based
photography
First examples of digital cameras were
very poor quality and laughed at
LCD CRT LCD were first monochromatic and low
resolution
Wikipedia Traditional
encyclopedias
Encyclopedia Britannica ended print
production in 2012
LED lights Light bulbs Initial LED lights were only strong
enough to be indicators, now replacing
most lighting
25. Role of Culture & Leadership
There is no innovation without leadership
Innovation is a collaborative activity
No single person can manage the innovation for an
organization
Innovation often happens outside of normal process
Essential roles for managers
Promoting an attitude and expectation of
innovation
Instituting policies and strategies that makes
innovation real
enabling innovation while engaging in dedicated
obstacle obliteration
Remove obstacles for staff