innovation strategies1
TRANSCRIPT
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Presented By:
Kamal Manwani (67)Pranav Mohla (63)
Nitin Singh (68)
Nitin Sharma(65)
Aman Sachdev
INNO
VATIONSTRATEGIESANDMODELS
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CONTENT
What is innovation
Innovation Vs Invention
Types of Innovation
Innovation levels
Innovation strategies
Innovation models
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INNOVATION
An innovation is something original, new and
important in whatever field- that breaks into a
market or society.
Innovation is the application of better solutions
that meet new requirements, inarticulate needs,
or existing market needs.
Innovation is celebration of Creativity
-Dr. A.P.J Abdul Kamal
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DONT CONFUSE IT WITH CREATIVITY
Innovation stems from Creativity
Innovation is taking risk toImplement Ideas
Turn Fresh Ideas to Reality
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INNOVATIONInnovation takes placethrough the interaction ofthree intermingled factors orforces i.e.
1. What technology is availableto produce
2. Whether that technology isviable in the marketplace
3. What features or services aredesired by consumers
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INNOVATION IS
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Innovation distinguishes between a leader anda follower [Steve Jobs]
Innovation has nothing to do with how many
R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100times more on R & D. Its not about money.Its about the people you have, how youre led,and how much you get it. [Steve Jobs]
If you always do what you always did, you willalways get what you always got. [AlbertEinstein]
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INNOVATION AND INVENTIONInvention is the creation of new technology or process or product
first time either physically or conceptually. Its the core/new idea.
Innovation , on the other hand, occurs if someone improves onor makes a significant contribution to an existing product, process
or service or when it becomes economically successful. Its the
exploited version of that idea.
All innovations are inventions but not vice versa.
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INNOVATION AND INVENTION
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Invention Innovation
1.Creation of new Product, service or process
2. May not be commercialised
3. May be for Non Economic or Economic
motive
4. Activity Restricted to R&D
5. Invention=Innovation-CommercialExploitation
Introduction of Product/service inmarket place2. Results in Commercialisation
3. Usually for Economic motive
4. Activity spread across the organization
5. Innovation= Invention+ CommercialExploitation
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TYPES OF INNOVATION
Modular andArchitecturalInnovation
Open & ClosedInnovation
Incremental &Radical
Innovation
Product &Process
Innovation
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a. Open & Closed Innovation
ConceptDevelopment Implementation
PROJECTSTART
CONCEPTFROZEN
MARKETINTRODUCTION
ConceptDevelopment
Implementation
PROJECT
START
CONCEPT
FROZENMARKET
INTRODUCTION
Open Model For Innovation
Closed Model For Innovation
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b. Product and Process Innovation
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c. Modular and Architectural InnovationModular Innovation It refers to significant change in elements of productand process of technology without any significantchange to the existing configuration of the elements .
Modular
InnovationChange in
ComponentTechnology
Steam Engineof Car
Fuel Engineof Car
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Architectural InnovationThese innovation requires use of existing organizationalpractices and technologies but reconfigure them in a newknowledge of how the existing components are to be
configured into a new system, which will result in betterorganizational efficiency.
ArchitecturalInnovationChange in
Product Structure
http://images.google.com/imgres?imgurl=http://bp3.blogger.com/_kdtaGUBy0c4/R4cRk-TDX9I/AAAAAAAAAEU/2Z3SUAoycj4/s1600/old+samsung.jpg&imgrefurl=http://www.mobilephonefaq.com/?p=27&usg=__vmtsov_-JAvmcI2FNDLEwb6Pm6g=&h=286&w=220&sz=12&hl=en&start=16&um=1&tbnid=Az33D67SSZIScM:&tbnh=115&tbnw=88&prev=/images?q=old+mobiles&hl=en&um=1http://images.google.com/imgres?imgurl=http://www.margretsloan.com/wp-content/uploads/2008/04/newphone.jpg&imgrefurl=http://www.margretsloan.com/category/phones/&usg=__lHgX29Kr33OCd3Aqrj1BwFcP6SA=&h=504&w=360&sz=32&hl=en&start=1&um=1&tbnid=9eOGtogK1hQsSM:&tbnh=130&tbnw=93&prev=/images?q=newphone&hl=en&um=1 -
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d. Incremental & Radical Innovation
Incremental Innovation Represents minor improvements or change in the elements of
an existing product or processes. Their incubation andimplementation require little new knowledge because they
are already aligned with existing organizational skills and
capabilities.
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Radical Innovation
It represents revolutionary change that require clear departure fromexisting organizational practices and technologies. They are not
aligned with the organizational skills and capabilities and these
require significant new knowledge for both component and
configuration of the system.
Displacing ExistingTechnology
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Innovation Levels
Innovation Occurs at Three Levels
NATIONAL LEVEL
ENTERPRISE LEVEL
INDIVIDUAL LEVEL
Govt. Policies &support
Enterprise policies,support & initiatives
Individual & groupinnovation activities
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INNOVATION STRATEGY
A plan made by an organisation toencourage advancements in technology or
services, usually by investing in researchand development activities.
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Factors Affecting Innovation Strategy
Risk taking abilities of the organisation
Risk taking attitude of top management
Organisational goals and policiesDegree of technological changes
Degree of competition
Availability of funds Age of organisation viz. new vs old organisation
Government support and policies for technology and
innovation
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Types of Innovation Strategy
Innovation LeaderFirm seeks to be the first to introduce innovation
Aims at tapping first mover advantages
( early profits, increased reputation, new sales, pre-empting competition etc)
Focus on radical, open, flexible non linear innovation
process.
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Innovation Follower
A firm chooses not to be first on innovations
Aims at learning from the experiences of innovation
leader
( by cost imitation, by bringing better products and services through
improvements etc)
Focus on incremental, closed, linear innovation process
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INNOVATION MODELS
Traditional Phase Gate Model (linear model)
a) Technology push Model
b) Market pull Model
Innovation Process Flexible Model
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Traditional Phase Gate ModelProduct concept frozen at early stage to minimizerisk
Involves series of sequential phases
Each phase passes through a gate before moving tonext phase
Gatekeeper involved at each gate
Gatekeeper examines stated objectives of precedingphase met or not
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Project start Concept Frozen Market Introduction
TRADITIONAL MODEL
ConceptDevelopment Implementation
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Limitations of the model
Low gatekeeper knowledge may lead to poor
judgements
Time consuming as it is a step by step approach
Long review preparation time
More focus on attaining target, less on learning
Concept frozen too early, howevercustomer/market requirements may change at
later stage
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A. Technology push model
First generation linear model
Technology key driver of innovation
Steps involved:
a) Fundamental Research b) Application Research
c) Design Engineering
d) Manufacturing
e) Marketing & Sales
The model ignores consumer needs and market requirements
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B. Market pull modelSecond generation linear model
Consumer needs/ market requirements-key driver of innovation
Steps involved:
a) Assessing consumer needs/market requirements
b) Concept/idea generation
c) Refining idea to meet consumer needs
d) Designe) Engineering
f) Manufacturing
g) Test marketing &sales
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Innovation Process Flexible Model
Explain radical innovation process in rapidly changing business
environment
Phases are overlapped(i.e. Development in more than one phase can continue at the same point of time)
Ideas/improvements can emerge from any source and at any stage
of innovation process
Model includes:
a) Technology push + Market pull combination
b) R&D + Marketing
c) Cyclical Model
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Project start Concept Frozen Market Introduction
FLEXIBLE MODEL
Concept Development
Implementation
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THANK YOU