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Group # 3
Krishna Murari 1418
Pushpendra Singh 1421
Sudhakar Kumar 1428
Samir Kr. Mishra 1425
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Introduction ….
Innovation can be systematically managed if one knows where and how to look
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• The process of translating an idea or invention into a good or service that creates value or for which customers will pay.
To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need.
Dictionary meaning of Innovation
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What is Innovation?
Peter F. Drucker says ……
It is the means by which the entrepreneur either creates new wealth- producing resources or endows existing resources with enhanced potential for creating wealth
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Sources of innovation
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Opportunity area : Inside the company
❶ Unexpected occurrence : Had happened which was not expected
a) Unexpected success
• In the early 1930, IBM developed the first modern accounting machine which was designed for banks. But bank in 1933 did not buy the new equipment. Stock remained unutilized.
• But suddenly demand came from New York Library to buy such machines and IBM sold more than hundred of his otherwise unsalable machines to libraries.
b) Unexpected failure
• The unexpected failure may be an equally important innovation opportunity source.
• It is precisely because the unexpected jolts us out of our preconceived notions & certainties that it is such a fertile source of innovation.
• Example : Ford Edsel, first failed but latter on came out as industry leader
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Incongruity b/w expectation & result
The roll –on & roll –off ship
Opportunity area : Inside the company
❷ Incongruities : The state of not fitting in its location or situation Incompatible, Inappropriate
Incongruity within the logic or rythm of a process
Alcon Laboratory & Incongruity in Medical technology
• Cataract operation is very common surgical procedure. Doctors have systematized all the steps except the ligament cutting which is old fashioned.
• Means this step is incompatible with others. They often feared during operation
• Now they use an enzyme which can dissolve the ligament without cutting. Incongruity b/w Economic realities
The Mini Mills
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Opportunity area : Inside the company
❸ Process Needs
Innovations created to support other processes and products It is looking for “the missing link” in the existing process
Japan: No modern Highway system Process Need: Smooth traffic & less accidents Innovative Response: Reflectors
Media innovation in 1890 Ottmar Mergenthaler’s Linotype – Produced news paper quickly
and in large volume Social Innovations: Modern Advertising invented by the first true
Newspaper publisher, Adolph Pulitzer of the New York World
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Opportunity area : Inside the company
❹ Industry & Market changes
Industry & market structures may change overnight.
Such changes creates tremendous opportunity for innovation
Change in structure of the industry
In American financial business : Donaldson, Lufkin and Jenrette (DL&J) brokerage firm – became leader in negotiated commissions business.
Established companies are more defensive and less attackingThus, Innovators have a chance to gain success
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Opportunity area : Outside the company
❺ Demographic Changes
Of the outside sources of innovation opportunity, demographics are the most reliable
changes occur in populations, it’s size, composition , employment, income levels, Education, age ranges etc.
Due to education explosion, Japanese invented robots because they paid attention to demographics to tackle the problem of labor shortage in industry
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Opportunity area : Outside the company
❻ Changes in perception “The glass is half full”
“The glass is half empty”
Changing your perception of glass from half
full to half empty opens up big innovations opportunities
We are very health conscious now – fear , as compared to past - led to many health foods, exercise classes, jogging equipment etc.
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Opportunity area : Outside the company
❼ New knowledge
Success requires careful analysis of the various kinds of knowledge needed to make an innovation
The Wright Brothers did this when they developed the first operational airplane
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• Purposeful, systematic innovation begins with the analysis of the
sources of new opportunities
• Innovation is both conceptual and perceptual -ability to interpret
• To be effective innovation has to be simple and it has to be focused
• Effective innovation start small. They are not grandiose
Principles of Innovation
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So, innovation needs ….
• Innovation is work rather than genius
• It requires knowledge
• It requires ingenuity
• It requires focus
• Innovator rarely work in more tan one area.( Thomas Edison)
• If diligence, persistence, and commitment are lacking, talent, ingenuity, and knowledge are of no avail.
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Thanks
