Innovation L1 L7v, Polibuda, Archiwum
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1. Introduction
Introduction
Innovation Topics
2. Innovation Stages
Innovation Stages
3. Innovation Opportunities
Innovation Opportunities
4. Product vs. Process Innovation
Product vs. Process Innovation
5. Innovation Development Process
Innovation Development Process
Technology Innovation
6. Managing Disruptive Innovation
Managing Disruptive Innovation
7. Crossing the Chasm
Crossing the Chasm
8. Market and Customers
Market and Customers
Prof. Andrzej M. Pawlak
Theories of Innovation
10.Technology Innovation Roadmaps
Theories of Innovation
10.Technology Innovation Roadmaps
11.Innovation Models
11.Innovation Models
12.Technological Revolution & Forecasting
12.Technological Revolution & Forecasting
13.Emerging Technologies
13.Emerging Technologies
14.Innovation Best Practice
TI Class L1- Introduction
14.Innovation Best Practice
15.Organizational Challenge
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15.Organizational Challenge
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Innovation Concept
Innovation Topics
• Innovation Concept
Introduction Topics
• Innovation helps to cross the bridge
Innovation helps to cross the bridge
Innovation Concept
• Darwin
s Innovation
• Innovation Definition
s Innovation
Innovation Definition
• Types of Innovation
Types of Innovation
• Sustaining Innovation
Sustaining Innovation
• Innovation: Creativity
Innovation: Creativity
• Creativity Development
Creativity Development
• Creativity Requirements
Creativity Requirements
• Creativity and Ideas
Creativity and Ideas
• Components of Creativity
Components of Creativity
• Innovation Summary
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Innovation Summary
Introduction to Innovation
Introduction to Innovation
• … there is nothing more difficult…, more
perilous to conduct, or more uncertain in
its success, than to take the lead in the
introduction of a new order of things.
Because the innovator has for enemies all
those who have done well under the old
conditions, and lukewarm defenders in
those who may do well under the new.
This coolness arises partly from fear of
opponents who have the laws on their
side, and partly from the incredulity of
men, who do not readily believe in new
things until they have had a long
experience of them.
Machiavelli: The Prince, Chapter VI 1515
• It is not the strongest of the
species that survives, nor the
most intelligent, but the one
one
most responsive to change
one
Charles Darwin
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11.
1.
2.
22.
Innovation Stages
33.
3.
44.
4.
5.
55.
Innovation Development Process
66.
6.
77.
7.
88.
8.
99.
9.
9. Theories of Innovation
10.Technology Innovation Roadmaps
11.Innovation Models
12.Technological Revolution & Forecasting
13.Emerging Technologies
14.Innovation Best Practice
• Innovation Topics
Innovation Topics
Innovation Concept
Darwin’s Innovation
Darwin
Innovation Definition
Types of Innovation
Sustaining Innovation
Innovation: Creativity
Creativity Development
Creativity Requirements
Creativity and Ideas
Components of Creativity
most responsive to change
most responsive to change…
Innovation Definition
Innovation Definition
• In many fields, something
new must be substantially
different to be innovative, not
an insignificant change, e.g.,
– in the arts,
– economics,
– business and
– government policy.
The term innovation means a
new way of doing something.
new way of doing something.
• It may refer to incremental,
It may refer to incremental,
radical, and revolutionary
radical, and revolutionary
changes in thinking, products,
changes in thinking, products,
processes, or organizations.
processes, or organizations.
• A distinction is typically made
between invention, an idea
made manifest, and innovation,
made manifest, and innovation,
ideas applied successfully.
ideas applied successfully.
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Innovation Definition
• In economics the change must
increase value, customer value,
or producer value.
• The goal of innovation is
positive change, to make
someone or something better.
• Innovation leading to increased
productivity is the fundamental
source of increasing wealth in
an economy.
Innovation Definition
style …
• The act or process of inventing
or introducing something new
• Something newly invented or a
new way of doing things
• The process of adopting a new
thing, idea, or behavior pattern
into a culture
• The act of starting something for
the first time; introducing
something new
style
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Innovation Definition
Experts on innovation
Innovation Definition
Experts on innovation …
• Producing an outcome with:
– An entirely new set of
performance features
– Improvements in known
performance of 5x or greater
– A significant (30 reduction) in
cycle-time and/or cost
Leifer, et.al. (Radical
Innovation,
Innovation is an important
topic in the study of
topic in the study of
economics, business,
economics, business,
technology, sociology, and
technology, sociology, and
engineering.
engineering.
• Colloquially, the word
Colloquially, the word
"innovation" is often
"innovation" is often
synonymous with the output
HBP, 2000)
• Exploration vs. Exploitation
James March
synonymous with the output
of the process.
of the process.
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The term innovation means a
• The term innovation means a
new way of doing something.
It may refer to incremental,
radical, and revolutionary
changes in thinking, products,
processes, or organizations.
A distinction is typically made
between invention, an idea
A distinction is typically made
between invention, an idea
made manifest, and innovation,
Dictionary
Dictionary-style
Experts on innovation
Innovation is an important
• Innovation is an important
topic in the study of
economics, business,
technology, sociology, and
engineering.
Colloquially, the word
"innovation" is often
synonymous with the output
Innovation Definition
Innovation & Invention
• Innovation is the actual use
of a non-trivial change or
improvement in a process,
product, or system.
– A significant change or
improvement
– Results in a positive impact
to success in meeting goals
and objectives
Innovation is also considered a major
driver of the economy, especially
driver of the economy, especially
when it leads to increasing
when it leads to increasing
productivity, the factors that lead to
productivity, the factors that lead to
innovation are also considered to be
innovation are also considered to be
critical to policy makers.
critical to policy makers.
Those who are directly responsible
for application of the innovation are
for application of the innovation are
often called pioneers in their field,
often called pioneers in their field,
whether they are individuals or
whether they are individuals or
organizations.
organizations.
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Innovation & Invention
• Innovation is different than
invention:
– Invention includes:
• Idea generation and
development
– Innovation includes:
• Invention, and
• Implementation and
diffusion of the new idea
Innovation & Invention
• Innovation is
(continued)
single project.
– Innovation occurs when unique
Innovation occurs when unique
problem solving is diffused to other
problem solving is diffused to other
projects and firms.
projects and firms.
– Diffusion confirms the utility and value
Diffusion confirms the utility and value
of the innovation.
of the innovation.
– New to the organization adopting it.
New to the organization adopting it.
– The idea for the change can come
The idea for the change can come
from within, or from outside, the
from within, or from outside, the
organization. May be the transfer of a
organization. May be the transfer of a
product, process, or system from one
product, process, or system from one
industry to another.
industry to another.
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Types of Innovation
• Sustaining innovation
Disruptive innovation (exploration):
• Where they run into trouble is in
handling revolutionary changes in
their markets
• Creates entirely new market by
introducing a new product or
service that mainstream customers
initially sees as worse
• No company has a routine for
handling them
• More difficult for large, mature
companies, easier for smaller,
immature companies
(exploitation): Successful
companies are good at
companies are good at
responding to evolutionary
responding to evolutionary
changes in their markets:
changes in their markets:
• Makes a product or service
Makes a product or service
perform better in ways that
perform better in ways that
mainstream customers
mainstream customers
already value
already value
• Typically developed and
Typically developed and
introduced by industry leaders
introduced by industry leaders
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• Innovation is also considered a major
Innovation is also considered a major
driver of the economy, especially
when it leads to increasing
productivity, the factors that lead to
innovation are also considered to be
Those who are directly responsible
• Those who are directly responsible
for application of the innovation are
often called pioneers in their field,
whether they are individuals or
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Innovation is…(continued)
(continued)
– Different than problem solving on a
Innovation is
Different than problem solving on a
Different than problem solving on a
single project.
single project.
Innovation occurs when unique
problem solving is diffused to other
projects and firms.
Diffusion confirms the utility and value
of the innovation.
New to the organization adopting it.
The idea for the change can come
from within, or from outside, the
organization. May be the transfer of a
product, process, or system from one
industry to another.
Types of Innovation
Disruptive innovation (exploration):
Sustaining innovation
(exploitation): Successful
Disruptive innovation (exploration):
Sustaining innovation
(exploitation): Successful
companies are good at
responding to evolutionary
changes in their markets:
Makes a product or service
perform better in ways that
mainstream customers
already value
Typically developed and
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Types of Sustaining Innovation
• Application Innovation
Types of Sustaining Innovation
• Application Innovation
Product Innovation
• Process Innovation
Take existing products /
services to new markets
services to new markets
–For example
Process Innovation
• Experiential Innovation
For example-- GM On
GM On--star to
star to
Experiential Innovation
• Marketing Innovation
cars;
–Tandem fault
Marketing Innovation
• Business Model Innovation
tolerant
computers to banking as
tolerant
computers to banking as
ATMs
Business Model Innovation
ATMs
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Types of Sustaining Innovation
• Product Innovation
Types of Sustaining Innovation
• Process Innovation
– Streamline supply chain
– Move to on-line trading
– Provide e-learning classes
– process for manufacturing
the recyclable cartons
Established products to the next
level;
level;
–Price reduction;
Price reduction;
–Usability improvements
Usability improvements
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Types of Sustaining Innovation
• Experiential Innovation
– Improve the customer’s experience
– “Delighters” - “You’ve got mail!”
– “Satisfiers”- rapid line management
through airport security
– “Reassures” - FedEx package tracking
Types of Sustaining Innovation
• Marketing Innovation
Improve customer touch,
–on line notification,
on line notification,
–New shopping experience with
New shopping experience with
e-Bay, Amazon
Bay, Amazon…
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Application Innovation
• Product Innovation
Application Innovation
–Take existing products /
Application Innovation
Application Innovation
Product Innovation
Take existing products /
services to new markets
Process Innovation
For example
GM On
Experiential Innovation
cars;
Marketing Innovation
Tandem fault
Tandem fault--tolerant
computers to banking as
Product Innovation
Product Innovation
–Established products to the next
Established products to the next
level;
Price reduction;
Marketing Innovation
Marketing Innovation
–Improve customer touch,
Improve customer touch,
on line notification,
New shopping experience with
Bay, Amazon
Types of Sustaining Innovation
• Business Model Innovation
Innovation Examples
Business Model Innovation
–Reframing an established value
• Valu created by Apple
proposition
–Razor blades to shaving systems;
Razor blades to shaving systems;
–From computing (Apple) to consumer
From computing (Apple) to consumer
lifestyle products.
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Disruptive Innovation
Disruptive Innovation
• Process Innovation
–Resistive welding process, to be
applied by NASA in space to
connect space-stations
–Wafer mass production
manufacturing process of
processors and MEMS
Marketing Innovation
–Internet shopping for hotels, airline
Internet shopping for hotels, airline
tickets, cars
tickets, cars…
–Website as best marketing tool
Website as best marketing tool…
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Disruptive Innovation
Disruptive Innovation
• Product Innovation
– Performs worse (than the incumbent) at least one dimension
of performance when introduced
– May not appeal to the mainstream market at the time of
introduction. Will appeal to it over time.
Product Innovation
–Cellphones
Cellphones provideing
provideing wireless
wireless
service
–Internet, connecting the world
Internet, connecting the world
–Nightvision
Nightvision providing visible infrared
providing visible infrared
spectrum
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Business Model Innovation
Reframing an established value
Reframing an established value
proposition
proposition
Razor blades to shaving systems;
From computing (Apple) to consumer
lifestyle products.
Marketing Innovation
• Marketing Innovation
Internet shopping for hotels, airline
tickets, cars
Website as best marketing tool
Product Innovation
• Product Innovation
Cellphones
provideing
service
Internet, connecting the world
Nightvision
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