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INNOVATION STRATEGIES AND MODELS

Presented By: Kamal Manwani (67) Pranav Mohla (63) Nitin Singh (68) Nitin Sharma(65)

Aman Sachdev

CONTENT
What is innovation

Innovation Vs Invention
Types of Innovation

Innovation levels
Innovation strategies Innovation models

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

DONT CONFUSE IT WITH CREATIVITY


Innovation stems from Creativity

Innovation is taking risk to Implement Ideas

Turn Fresh Ideas to Reality

INNOVATION
Innovation takes place through the interaction of three intermingled factors or forces i.e. 1. What technology is available to produce 2. Whether that technology is viable in the marketplace 3. What features or services are desired by consumers

INNOVATION IS

Innovation distinguishes between a leader and a 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 100 times 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 will always get what you always got. [Albert Einstein]

INNOVATION AND INVENTION


Invention 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 on


or 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.

INNOVATION AND INVENTION

Invention

Innovation

1.Creation of new Product, service or process Introduction of Product/service in market place 2. May not be commercialised 2. Results in Commercialisation 3. May be for Non Economic or Economic motive 3. Usually for Economic motive

4. Activity Restricted to R&D


5. Invention=Innovation-Commercial Exploitation

4. Activity spread across the organization


5. Innovation= Invention+ Commercial Exploitation

TYPES OF INNOVATION
Open & Closed Innovation

Modular and Architectural Innovation Incremental & Radical Innovation

Product & Process Innovation

a. Open & Closed Innovation


PROJECT START Concept Development CONCEPT FROZEN Implementation MARKET INTRODUCTION

Closed Model For Innovation PROJECT START CONCEPT FROZEN MARKET INTRODUCTION Implementation Open Model For Innovation

Concept Development

b. Product and Process Innovation

c. Modular and Architectural Innovation


Modular Innovation

It refers to significant change in elements of product and process of technology without any significant change to the existing configuration of the elements.
Modular Innovation Change in Component Technology

Steam Engine of Car

Fuel Engine of Car

Architectural Innovation
These innovation requires use of existing organizational practices and technologies but reconfigure them in a new knowledge of how the existing components are to be configured into a new system, which will result in better organizational efficiency.

Architectural Innovation Change in Product Structure

d. Incremental & Radical Innovation


Incremental Innovation
Represents minor improvements or change in the elements of
an existing product or processes. Their incubation and implementation require little new knowledge because they are already aligned with existing organizational skills and capabilities.

Radical Innovation
It represents revolutionary change that require clear departure from existing 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 Existing Technology

Innovation Levels
Innovation Occurs at Three Levels

NATIONAL LEVEL

Govt. Policies & support

ENTERPRISE LEVEL

Enterprise policies, support & initiatives

INDIVIDUAL LEVEL

Individual & group innovation activities

INNOVATION STRATEGY
A plan made by an organisation to encourage advancements in technology or services, usually by investing in research and development activities.

Factors Affecting Innovation Strategy


Risk taking abilities of the organisation

Risk taking attitude of top management


Organisational goals and policies Degree 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

Types of Innovation Strategy


Innovation Leader
Firm 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.

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

INNOVATION MODELS
Traditional Phase Gate Model (linear model)
a) Technology push Model

b) Market pull Model


Innovation Process Flexible Model

Traditional Phase Gate Model


Product concept frozen at early stage to minimize risk Involves series of sequential phases Each phase passes through a gate before moving to

next phase
Gatekeeper involved at each gate Gatekeeper examines stated objectives of preceding

phase met or not

Project start

Concept Frozen

Market Introduction

Concept Development

Implementation

TRADITIONAL MODEL

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, however customer/market requirements may change at

later stage

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

B. Market pull model


Second generation linear model

Consumer needs/ market requirements-key driver of innovation


Steps involved: a) Assessing consumer needs/market requirements

b)
c) d)

Concept/idea generation
Refining idea to meet consumer needs Design

e)
f) g)

Engineering
Manufacturing Test marketing &sales

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) b) c) Technology push + Market pull combination R&D + Marketing Cyclical Model

Project start

Concept Frozen

Market Introduction

Concept Development Implementation

FLEXIBLE MODEL

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