MODULE 2 TYPES OF INNOVATION 1. DEFINITION OF INNOVATION Definition source: Innovation

MODULE 2

TYPES OF INNOVATION

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DEFINITION OF INNOVATION

Definition source:http://es.fpdgi.org/upload/projecte/aprender-a-emprenderesp.pdf

Innovation is:

“The creation of new or improved knowledge with potential on implementation to business of the company, with positive impact and market acceptance”.

Keywords:new/improved knowledge, implementation to business.

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CONTENT

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Think ...simple

Think ...simple

1. Meaning of innovation

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1. Meaning of innovation

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1. Meaning of innovation

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1. Meaning of innovation

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You're in a high street coffee shop (see pictures).

2. Think innovative –exercise

Imagine a "Future coffee shop" , "Internet café" or “Cybercafe“, based on new progress in IT.

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Internet café

2. Think innovative –exercise

LapcoffeeWi-Finetwork

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3. Types of innovation

Business innovation involves a wide spectrum of original concepts, including development ofdevelopment of: - new ways of doing business, - new business models, - business application of technology and communications, - new management techniques, environmental efficiency, - new forms of stakeholder participation, telecommunication, transport and finance.

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In some cases, the innovation rests not in the technology or product or service, but in the business model itself.It is much related to non-technological innovation and to innovative services.

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... is the implementation of a new organisational method in

the firm’s business practices, workplace organisation or

external relations.

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Strategy innovation is about challenging existing industry methods of creating customer valuecustomer value in order to meet newly emerging customer needsnewly emerging customer needs, add additional value and create new markets and new customer groups for the sponsoring company.

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• Why strategy innovation?

You should respond by

adopting a new approach to

strategy, one that combines:

… speed, openness, flexibility, forward-focused

thinking.

speed, openness, flexibility, forward-focused

thinking.

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In China, some doctors are paid monthly

when their patients are healthy. If you are

sick, it‘s their fault, so you don‘t have to pay

that month. It‘s their goal to get you healthy

and keep you healthy so they can get paid.

Doctor s aren’t paid Doctors are paid

Doctors are paid

Strategy innovation example

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Toilet paper - example

“A marketing innovation is the implementation of a new marketing method involving significant changes in significant changes in productproduct design or packagingdesign or packaging, , product placement, product promotion or pricing.” OECD – The OSLO Manual

Social media

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A product innovation is the introduction of a good or a service that is new or significantly improved with respect to its characteristics or intended uses.

http://www.davison.com/creators/category/product-innovation/

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Types ofproduct innovation

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Exercise: Propose some idea to Propose some idea to improve this product :improve this product :Propose some idea to Propose some idea to improve this product :improve this product :

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Possible solution:

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“A process innovation is the

implementation of a new or significantly

improved production or delivery method.

This includes significant changes in

techniques, equipment and/or software”.

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Example 1

1913Cars were built individually by hand

Car mass production

FORD – Assembly line Example 2

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FORD – Assembly line

Principles:• interchangeable parts;• continuous flow;• division of labor;• reducing wasted effort.

Benefits:•increase of productivity;•wage growth (from 2.5 $/h to 5.0 $/h);•raise of company profit (from $30 ml. in 1914 to $60 ml. in 1916);•attraction of best mechanics.

New verb: “to Fordize”(to standardize in the interests of efficiency and mass production)

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Technology innovation: implemented technologically new products and processes and

significant technological improvements in products and processes.

Explosive technology

Implosive technology

The product or process should be new from the point of view of the firm that introduced it.

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Discussion

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Marketing or technology innovation ?

4. New approach

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The attitude to look beyond the current reality and

become something we are not yet.

There is no motivation without future vision, and

without motivation there is no possibility to innovate, to

undertake, to assume new risks.

Having a future vision allows venturing to exercise our

creative thought.

“Creative personality is made, not born”http://es.fpdgi.org/upload/projecte/aprender-a-emprenderesp.pdf

4. New approach

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Thank you!Thank you!

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