Innovation Strategies1

8/13/2019 Innovation Strategies1

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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

Documents

Innovation Strategies1