Business Innovation

April 2009

Koen Knaepen

Scope

In scope• Nature of innovation• Impact of innovation• Framework around innovation that makes innovation tangible

Out of scope• The history of innovation• The innovation friendly organization• The legal environment for innovation• Innovation implementation

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Innovation

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Innovation is a hazard

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Chad HurleySteve Chen

Innovation cannot be ruled• Bill Gates believed that internet was only a temporarily phenomena

• Michael Dell started in 1986 and became successful in 1998

• IBM didn’t believe in the personal computer• Sony had 20 years ago more technology then Apple to introduce an iPhone

• Larry Page and Sergey Brin who founded Google couldn’t find any buyer for their new search engine and decided to commercialize it themselves.

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Top of the iceberg

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What people focus on

The work that is done before

EurekaChaos & failures

• To obey rules never leads to innovation

• Every innovation started with a failure

Innovation Life Cycle

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Idea

Pit

ch

Pro

of

of

conce

pt

Pro

toty

pes

Pla

n

Ris

k A

ccepta

nce

Com

mit

ment

Exe

cuti

on

Inn

ovati

on

Com

modit

isati

on

Setting the scene

-8-Cost per unit

Pri

ce p

er

un

it

Low

Low

High

Hig

h

V.K. Rangan &G.T. Bowman

BusinessInnovation

Enterprise Innovation

BusinessInnovation

Market Expansion

Execution Excellence

What is innovation?

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Innovation is not equal to invention• Invention is the creation of a new idea• An invention is innovative if it increases

the added value• Innovation is the practical consequence

of an invention

Voice of customers

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Innocents

Your people

who know the clients

Client surveys often reproduce the arguments they were told when they bought your or your direct competitors

products and service

Strategic Value Maps

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PriceMeals

Lounges

Seat ChoiceHubs

Friendly serviceSpeed

Frequency0

1

2

3

4

South WestCar TrafficCompetitors

Incremental More of the same

Fundamental Value Shuffling

Radical Value Change

SouthWest Airlines

Cirque de Soleil

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Innovation Strategies

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• Humour• Danger and

sensation Weaken Eliminate

• Stars• Animal Shows• Selling

Authorizations• Different podia

Strategic Value Map

As is To be• Theme shows• Refined

Environment• Several

productions• Artistic music• Dance

• Unique Location

Create Enforce

Cirque de Soleil

Innovation Techniques

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Four levels of innovation implementation

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Innovative

Usability

Recognition

Diversity

The

Cha

sm

Incubation Expansion Maturity Acceptation

Enthusiasts Pragmatics Conservatives Skeptics

Innovation-pushof

solution-pull

Niche-specialists are born

Market leaders inmass markets

Orientation on clientsand service

Shortage Choice

Clients

Phase

New idea