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Presentation on BusinessPresentation on BusinessInnovationInnovation

Presented to:- Presented By:-Dr. Vinodbhai Patel. Chintan Desai.(01)


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IntroductionIntroductiony

Innovation comes from the Latin innovationem,noun of action from innovare. There is a widelyheld view that Innovation is primarily driven byhigh-end technology and R&D.

y However, high-end technology and R&D areonly two of several sources of Innovation.

y The reach and impact of Innovation is seen

across the value chain to also include other sources of Innovation such as various processesand services, marketing, branding, trade,entrepreneurship, market research, customer

surveys, etc.


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ContCont

It may be achieved by:introducing new or improved goods or services and/or

implementing new or improved operationalprocesses and/ or implementing new or improvedorganizational/ managerial processes

in order to improve market share,competitiveness and quality, while reducingcosts.


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Distinguishing from inventionDistinguishing from inventiony Invention is the embodiment of something new.

While both invention and innovation have"uniqueness" implications, innovation is relatedto acceptance in society, profitability and market

performance expectation.

y In business, innovation can be easilydistinguished from invention. Invention is theconversion of cash into ideas. Innovation is theconversion of ideas into cash.


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I n organizationsI n organizations"Innovation is generally understood as thesuccessful introduction of a new thing or methodInnovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valuednew products, processes, or services.

Innovation is the multi-stage process wherebyorganizations transform ideas into new/improved

products, service or processes, in order to advance,compete and differentiate themselves successfully intheir marketplace.


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ContCont

y Innovation, like many business functions, is amanagement process that requires specific tools,rules, and discipline.

y For innovation to occur, something more than thegeneration of a creative idea or insight is required:the insight must be put into action to make a genuinedifference, resulting for example in new or alteredbusiness processes within the organization, or changes in the products and services provided.


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M arket outcomeM arket outcomey M arket outcome from innovation can be studied from

different lenses. The industrial organizational approachof market characterization according to the degree of competitive pressure and the consequent modeling of firm behavior often using sophisticated game theoretictools, while permitting mathematical modeling, hasshifted the ground away from the usual understanding of markets.

y The earlier visual framework in economics, of marketdemand and supply along price and quantity dimensions,

has given way to powerful mathematical models whichthough intellectually satisfying has led policy makersand managers groping for more intuitive and lesstheoretical analyses to which they can relate to at apractical level.


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V alue of experimentationV alue of experimentationy When an innovative idea requires a new

business model, or radically redesigns thedelivery of value to focus on the customer, areal world experimentation approach

increases the chances of market success

y New business models and customer

experiences can't be tested through traditionalmarket research methods. Pilot programs for new innovations set the path in stone tooearly thus increasing the costs of failure.


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G oalsG oalsy

Programs of organizational innovation are typicallytightly linked to organizational goals and objectives,to the business plan, and to market competitivepositioning. One driver for innovation programs in

corporations is to achieve growth objectives.

y "Companies cannot grow through cost reduction andreengineering alone... Innovation is the key elementin providing aggressive top-line growth, and for increasing bottom-line results"


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Cont..Cont..y systematic programs of organizational

innovation are most frequently driven by:1. Improved quality2. Creation of new markets3. Extension of the product range4. Reduced labour costs5. Improved production processes6. Reduced materials7. Reduced environmental damage8. Replacement of products/services9. Reduced energy consumption

10. Conformance to regulations


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F ailureF ailurey Failure is an inevitable part of the innovation

process, and most successful organisationsfactor in an appropriate level of risk.

y It is because all organisations experiencefailure that many choose not to monitor thelevel of failure very closely.

y The impact of failure goes beyond the simpleloss of investment. Failure can also lead toloss of morale among employees, an increasein cynicism and even higher resistance tochange in the future.


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FailureFailure

y Failure in the cultural infrastructure varies betweenorganizations but the following are common acrossall organisations at

1. Poor Leadership2. Poor Organization

3. Poor Communication4. Poor Empowerment5. Poor Knowledge M anagement


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Cont.Cont.y

Common causes of failure within theinnovation process in most organisations canbe distilled into five types:

1. Poor goal definition2. Poor alignment of actions to goals3. Poor participation in teams

4. Poor monitoring of results5. Poor communication and access to information


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