Innovation - The Key To Survival

STRAINNO - 6th February 2014“Any Business Enterprise has two – and only these twobasic functions: Marketing & Innovation.

A Business is set apart from all other human organizationsby the fact that it markets a product / service.

The second function of a business therefore is Innovation.It is not enough for the business to provide just anyeconomic goods or services; it must provide better andmore economic ones. It is not necessary for a business togrow bigger; but it is necessary that it constantly growbetter.”

INNOVATION – THE KEY TO SURVIVAL“Any Business Enterprise has two – and only these twobasic functions: Marketing & Innovation.

A Business is set apart from all other human organizationsby the fact that it markets a product / service.

The second function of a business therefore is Innovation.It is not enough for the business to provide just anyeconomic goods or services; it must provide better andmore economic ones. It is not necessary for a business togrow bigger; but it is necessary that it constantly growbetter.”

Peter F. Drucker(1909 – 2005)

• A Small Creativity Test• Some Quotes on Innovation• What is Innovation?• Some Innovation Stories• Types of Innovation• Trends in Innovation• Why Innovation(For Businesses)?• Why Innovation(For Professionals)?


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Can Anyone Here Prove: Half of 13 is 11



ILIKEPARIS IN THETHE SPRINGTIME


ILIKEPARIS IN THETHE SPRINGTIME

XI + I = X© Copyright 2013. STRAINNO. All Rights Reserved.

XI + I = X




“Innovation – Distinguishes BetweenA Leader And a Follower.”


Steve Jobs (1955 – 2011)

Innovation Has Nothing To Do With How Much R&DDollars You Have. When Apple Came Up With TheMAC, IMB Was Spending At Least 100 Times On R&D.It’s Not About Money. It’s About The People You Have,How You Are Led And How Much You Get It.

“Innovation Is The Specific Instrument OfEntrepreneurship. The Act That Endows ResourcesWith A New Capacity To Create Wealth”


Peter F. Drucker(1909 – 2005)

“Defending Yesterday (i.e. not innovating) Is FarMore Riskier Than Making Tomorrow”

“We Cannot Solve Our Problems With TheSame Thinking We Used When We CreatedThem”


Albert Einstein (1879 – 1955)




Examples of Innovation?


What is Innovation?Innovation – is a better way of doing things (developing aproduct, delivering a service or doing business) which has acommercial implication and affects people’s lives positively;sometimes also seen as a better solution to a problem with acommercial implication and a positive impact over lives of people;


What is Innovation?Innovation – is a better way of doing things (developing aproduct, delivering a service or doing business) which has acommercial implication and affects people’s lives positively;sometimes also seen as a better solution to a problem with acommercial implication and a positive impact over lives of people;




He was an American inventor and was thefounder of the McCormick Harvesting MachineCompany3 Cent US Postage Stamps were issued in 1940to commemorate C.H. McCormick


Cyrus H. McCormick(1809-1884)

3 Cent US Postage Stamps were issued in 1940to commemorate C.H. McCormick1975, McCormick was inducted into the JuniorAchievement U.S. Business Hall of Fame

In 1935, Hines was awarded the George S. BartlettAward for outstanding contribution to highwayprogress

was a member of the Wayne County RoadCommission (of Wayne County, Michigan), from1906 to 1938


Edward N. Hines(1870-1938)In 1972, he was inducted posthumously into theMichigan Transportation Hall of Honor for his life-saving innovationIn 2011, was honored with the first “PaulMijksenaar Design for Function” Award

In 1935, Hines was awarded the George S. BartlettAward for outstanding contribution to highwayprogress


Hospital


Mansukhbhai Prajapati With MittiCool - 2005


Tulsi TantiKunwer Sachdev

• http://articles.economictimes.indiatimes.com/2013-09-17/news/42148620_1_chief-marketing-officer-indian-consumer-consumer-confidence• http://articles.economictimes.indiatimes.com/2013-12-30/news/45711162_1_tata-motors-nano-cheapest-car

Related Articles – From TOI & ET• http://articles.economictimes.indiatimes.com/2013-09-17/news/42148620_1_chief-marketing-officer-indian-consumer-consumer-confidence• http://articles.economictimes.indiatimes.com/2013-12-30/news/45711162_1_tata-motors-nano-cheapest-car





• Product Innovation• Process Innovation• Business Model Innovation• Product Innovation• Process Innovation• Business Model Innovation


This categorization is based on “what” is being innovated

Business Model Innovation Story 1


Chester F. Carlson

Business Model Innovation Story 2


Marc R. Benioff




• Reverse Innovation• Social Innovation• Jugaad Innovation• Open Innovation

• Reverse Innovation• Social Innovation• Jugaad Innovation• Open Innovation


Here the focus is on “how” innovation is being done

What is Reverse Innovation and Why is It Called RI?Glocalization – is the process of doing innovation in a developing country (e.g.US, Europe) and then taking that to developing countries like India, China &Brazil; whereas RI stands for the process of doing innovation in emergingcountries and then taking them to developed countries

Reverse Innovation is called so, because it is reverse to the traditional wayand flow of innovation known as Glocalization


√ RI @ GE√ RI @ NH√ RI in Thailand

√ RI @ Logitech√ RI @ P&G√ RI @ EMC

√ RI @ Deere & Company√ RI @ Harman√ RI @ PepsiCo

Reverse Innovation Stories

Glocalization – is the process of doing innovation in a developing country (e.g.US, Europe) and then taking that to developing countries like India, China &Brazil; whereas RI stands for the process of doing innovation in emergingcountries and then taking them to developed countries

Reverse Innovation is called so, because it is reverse to the traditional wayand flow of innovation known as Glocalization

Costs $50,000and a Single ECGScan costs $100

Weights around140 Kg


Weights around140 Kg

Runs onsteady housecurrent

Comes with a 500 pagemanual and experttechnicians are neededto use this

Costs $400 and aSingle ECG Scancosts ₡ 10

Weighs less thana filled coke can


Weighs less thana filled coke can

Runs on battery andonce charged cangive up to 750 ECGscans

Easy enough controls withvery few buttons andneeds minimal / notraining at all

Though started in India currently is beingsold at 225 countries across the globeincluding the USA

Costs $50,000 ormore

Quality is determinedby mortality rate withinfirst 30 days fromoperation = 2% (avg)


Quality is determinedby mortality rate withinfirst 30 days fromoperation = 2% (avg)

Hospitals are profitmaking enterprises withmargin of 12% (avg)

Open Heat Surgery in US

Costs $1,800

Mortality rate withinfirst 30 days fromoperation = 1.2%(avg)

Hospitals are profitmaking enterpriseswith margin of 15%(avg)

Open Heat Surgery in NH – BLR, India1. Indians have relatively weak hearts2. Indians do not go for routine health checkups; hence

by the time they end up at the surgery, the conditionshave worsened

3. Pollution in Indian is too high which has a negativeimpact on survival after


Hospitals are profitmaking enterpriseswith margin of 15%(avg)

60% of its patientsare treated at adiscounted price orfor free

1. Indians have relatively weak hearts2. Indians do not go for routine health checkups; hence

by the time they end up at the surgery, the conditionshave worsened

3. Pollution in Indian is too high which has a negativeimpact on survival after

• NH is opening its facilities in Cayman Island in USA,with a capacity of 2000 beds in partnership withGovernment of Cayman Island

• Largest no. Of paediatric heart surgeries in the world• Asia’s largest cardiac care centre




Organizations need Innovation forone purpose only: To SurviveIn 1917 Forbes published his first list of 100 largest Americancompanies. In 1987 Forbes republished this original list and did acomparison to find: 61 of those companies did not exist and out ofremaining 39, only 18 had managed to remain in top 100 Source: Forbes’ Site


Over 40% of the companies that were at the top of the Fortune 500 in2000 were no longer there in 2010. Source: Brian Solis’ Future of Business

What Factors Affect Survivability Of AnyBusiness and How Are These FactorsChanging?


What Factors Affect Survivability Of AnyBusiness and How Are These FactorsChanging?

Factors Affecting Business Survival• Customers (Change in awareness, perception, demographics etc)• Technology• Channels of Business (Networks)• Environmental Changes

– A worsening global economy

– An avalanche of new regulations to come

• Resources


• Customers (Change in awareness, perception, demographics etc)• Technology• Channels of Business (Networks)• Environmental Changes

– A worsening global economy

– An avalanche of new regulations to come

• Resources

How Are These Factors Changing: Some Facts


Customer80% of big companies described themselves as delivering “superior”service, but only 8% of customers say they have experienced “superior”services from these companies. Source: The New YorkerIn the past year, 2 in 5 consumers or more in most markets indicate thatthey have not completed a transaction or made an intended purchasebecause of poor customer service.Source: America Express Global Customer Service Barometer


In the past year, 2 in 5 consumers or more in most markets indicate thatthey have not completed a transaction or made an intended purchasebecause of poor customer service.Source: America Express Global Customer Service Barometer$83 billion is estimated to be lost by businesses (only in US) every yeardue to poor customer service. Source: GenesysIt takes 12 positive experiences to make up for one unresolved negativeexperience. Source: HelpScout

EnvironmentIndia will add a million new workers every month for the next twodecades. This is equivalent to the entire population of Sweden joiningthe labour force in India, every year for the next two decades.Source: World Bank, 2013In Purchasing Power Parity (PPP) terms, India became the 3rd largesteconomy in the world in 2011, behind the US and China, and pushingJapan to the 4th place. Source: World Bank, 2013


In Purchasing Power Parity (PPP) terms, India became the 3rd largesteconomy in the world in 2011, behind the US and China, and pushingJapan to the 4th place. Source: World Bank, 2013Small and Midsized businesses account for over 99% of all businesses indeveloped economies and 40-70% of value added in the economy .Source: OECD “Electronic & Mobile Commerce”, 2013Note: PPP is a technique used to determine the relative value ofdifferent currencies

Demographics29% Millennials find love through FB, while 33% are dumped via wallposts or text messages. Source: Brian Solis’ Future of Business, 2013Gen Y will form 75% of the workforce by 2025 and are actively shapingcorporate culture and expectations. Only 11% define having a lot of moneyas a definition of success. Source: Brian Solis’ Future of Business, 2013


Gen Y will form 75% of the workforce by 2025 and are actively shapingcorporate culture and expectations. Only 11% define having a lot of moneyas a definition of success. Source: Brian Solis’ Future of Business, 2013Only 7% of Gen Y works for a Fortune 500 company as start-upsdominate the workforce for this demographic.Source: Brian Solis’ Future of Business, 2013

ResourcesThe economic value of assets at risk from floods is expected to be about$45 trillion by 2050. Source: OECD “Water: Governments Must Deal with Rising Risks, 2013By 2050 more than 40% of the world’s population will live under severewater stress and nearly 20% could be exposed to floods.Source: OECD “Water: Governments Must Deal with Rising Risks, 2013


By 2050 more than 40% of the world’s population will live under severewater stress and nearly 20% could be exposed to floods.Source: OECD “Water: Governments Must Deal with Rising Risks, 2013In 1990, girls primary school enrolment rate in developing countrieswas only 86% of boys. By 2011, it was 97%. Source: World Bank, 2013Asian students account for 53% of all students studying abroadworldwide – the largest numbers of international students are fromChina, India and Korea. Source: Pew Research Center, 2013

Technology80% of data used on mobile devices is received via WiFi connections tofixed networks. Source: OECD Communications Outlook, 2013The average subscription rate of mobile Internet access in developedcountries as a whole rose to 56.6% in June 2012, up from just 23.1% in2009. Source: OECD Communications Outlook, 2013


The average subscription rate of mobile Internet access in developedcountries as a whole rose to 56.6% in June 2012, up from just 23.1% in2009. Source: OECD Communications Outlook, 2013In 2010, Hans Vestberg, CEO of Ericsson, predicted that by 2020, 50billion devices would be connected to the internet. Source: GIGAom, 2013The next wave of computing is “wearables” (or “drivables” “flyables”,“scannables”) Source: Pew Mary Meeker’s Internet Trends, 2013

Innovative Companies


These companies haveestablished a complete,structured, scalableapproach to InnovationThey have processes toidentify, evaluate andprioritize Innovationprojects

And have a Culture thatpromotes and rewardsInnovative thinking




You need to Innovate: To SurviveInnovation can help you:

Find new ways of working Find new ways to make money Create new business opportunities Create new products, services and processes Improve old products, services and processes Develop solutions to complex business problems Revitalize markets See problems as opportunities Become more productive become indispensable to your organization


Innovation can help you: Find new ways of working Find new ways to make money Create new business opportunities Create new products, services and processes Improve old products, services and processes Develop solutions to complex business problems Revitalize markets See problems as opportunities Become more productive become indispensable to your organization

Guidelines for Innovation Try to find more & more problems – and explore thehidden opportunities Be Flexible and Open Minded Always explore more than one way of doing things Improve continuously Create an Innovation Infrastructure which isComprehensive, Structured, Sustainable and Scalable


Try to find more & more problems – and explore thehidden opportunities Be Flexible and Open Minded Always explore more than one way of doing things Improve continuously Create an Innovation Infrastructure which isComprehensive, Structured, Sustainable and Scalable

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