strategic innovation slideshare
TRANSCRIPT
What is innovation?Innovation: ( noun ) a new idea, device, or method; the act or process of introducing new ideas, devices or methods. Source: Merriam Webster DictionaryThe word “innovation” itself descends from the Latin words in and novare, meaning ‘to make new.’
What is innovation?Innovation is a new idea, more effective device or process.Innovation can be viewed as the application of better solutions that meet new requirements, inarticulated needs, or existing market needs.This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society. The term innovation can be defined as something original and more effective and, as a consequence, new, that "breaks into" the market or society.
Innovation Type
Operational (Process)
Tactical(Product)
Strategic(Business Models)
Focus Improving processes to optimise delivery of an existing product/service to a defined market
Improving a market position by introducing new products/services or business model
The disruption and destruction of existing markets to create fertile soil for new markets
Measurements
Throughput, defects, quality, waste, line downs, yields, ROI
Market share, Customer satisfaction, Customer delight, ROI
Share price, Funding, Capital, Alliances, bankruptcies, takeovers
Department
Finance, Quality, ManufacturingHR, Training
Marketing, SalesProduct Development, Technology development
?Aim Fulfill existing
customer need cheaper
Understand emerging needs of customers and fulfill
Create a need for users they did not even know they had
Boundary The company/group The Market(s)
?
What is strategic innovation
Who are using strategic innovation If you don’t explore new business models – you will go extinct McKinsey & Co
Death of the Funnel
Google owns search (Dying)Apple now support add blockersAmazon Prime ExplodingFacebook Search used by 1B every dayLinkedIn dominates B2BMove from desk to mobileMove from homepage to Apps
Nobody is going to find your products or homepage anymore.
What is needed?Innovation is difficult for well-established companies. By and large, they are better executors than innovators, and most succeed less through game-changing creativity than by optimizing their existing businesses.
McKinsey
Strategic Innovation - disruptionDoes not accept market rulesTakes advantage of asymmetric faults in marketCollaborate rather than competeStarfish model: Connects rather than ownsGet users to generate valueCreates new marketsCreate new usersDifferentiate between customers and usersExperimental rather than professional
Rethink your market• From loyalty to empowerment• From efficient to intelligent• From low cost to no cost• From ownership to access
Google Innovation• Differentiate between customers and users• Forget ROI – focus on providing max value for user • 20% of time allocated to passion projects• Organisation level does not dictated pay• Minimum 7 direct employees• Focus on user, learn from user, learn about user• Have user generate data, knowledge & Insights• Experimentation over perfection