INNOVATION

WHAT IS INNOVATION
• A Blind man is taken to an elephant and is asked to determine by
which the species of animal in front of him. Unable to tell it from
its behind, his reaction is “this is a large animal with two tails”.
• What is Innovation?
– Is the ability to look forward, to exude a passion about the future, to be
curious, to be a contrarian, and think about the present from two different
perspectives.
• What are the two factors to be cultivated?
To achieve an innovation mindset, requires time, patience,
information and desire to discover
– E.g. Rubbermaid products, Apple Computer, The BODY SHOP, Starbucks –
result of bearing innovation mindset.
• What is the key?
Key is not to think in the present or ponder the past. The right
Approach is to think about what could be in the future
 Innovation Principles
• Five Innovation principles that underscore any successful
attempt to make innovation happen
– Innovation is a mindset – a new way to think about business
strategies and practice
– Innovation is the key to gaining competitive advantage.
– Effective Innovation can boost stock price.
– Entrepreneurs must lead and be held accountable for innovation
– Entrepreneurs must be committed to and instill in in others a
passion for innovation.
• To adhere to the cited principles means espousing innovation as a
core business strategy. It means accepting that conventional business
thinking and practices have not allowed innovation to flourish
• Only once old habits are broken and innovation is accepted as a long
term investment can orgns.. Can look forward to a future sustained
growth and continued prosperity.
 Difference Between Invention And Innovation

The creation of Results in

Invention
something new Knowledge

The Transformations
Results in New
Innovation of an idea or
Products or services
resources into new
or processes
applications

Elements in the innovation process

Transformation of creative idea into a new application

Analytical Planning Organizing resources Implementation

TO identify To obtain : To Accomplish

Materials Organisational
•product design Commercial
•Market Strategy Technology
Goal Application
Human
•Financial Need Product and
Resource
Design To provide :
Capital Value to customers
Manufacturing Rewards for employees
Services Revenues for investors
Satisfaction for founders
 Creative
Source Champion Sponsor

Inventor or Entrepreneur Or Person or

Originator Who Manager Who Organisation That
Creates Something Pursues the Idea, backs Innovation
New Though Providing with Finances,
Personal Vision Leadership For Advice and
And Effort Applications Contracts

“Creating an Innovation mindset is an

investment, but its well worth the cost“
“Creativity must be captivating Innovation
Must be Motivating”
 Fostering an Innovation Mindset
• An innovation mindset in one person can gradually be transmitted
to an entire organization. You know a coy with an innovation
mindset when you see the ways employees interact one another.
They treat one another write respect, admiration and cooperation.
They smile, laugh. They express consideration and thoughtfulness.
They listen, they focus on benefits desired by consumers rather
than on their personal gain
• They come to work with an optimistic enthusiasm, because they
believe that what they do each day really does count. *they focus
on future rather than on the past*. They exude self confidence,
posses a healthy self esteem and believe in their own capabilities
and strengths. They have faith in innovation in each other.
– Creating and innovation mindset is an investment, but its well worth
the cost
 An Innovation Mindset
• Consumer Driven Process : A step wise development process that is systematic but flexible. The
process begins with the identification of potential problem categories and consumer problems/
needs and ends with market testing and commercialization
• Dedicated Terms : The formation of cross functional teams with motivated members. At a
minimum, the team leaders should be dedicated full time to the team with no other operating
responsibilities than innovation
• Performance based rewards : Psychic towards including peer recognition, descriptive praise,
exposure to top management and achievement awards. In addition, use compensation approaches
that reward new product performance and simulate an entrepreneurial experience by providing a
mechanism for participants to invest in new products being developed
• Innovation norms and Values : Innovation values or beliefs and innovation norms, which set up the
communication approaches and behavioral guidelines for the teams and functional participants to
work by
• Measurements : Metrics that identify the return on innovation and investment requirements and
innovation indices that track and monitor progress.
– It is essential to recognize that each of these “lobes” must be in place to create an innovation mindset.
Achieving two or three out of the seven is not enough. All have to be in place and reinforce each other. They
should link together in a way that enables all employees to understand and share in the importance of
innovation to the company.
– Why doesn’t an innovation mindset appear more frequently in companies? The primary fault lies with the
ever present bureaucratic mindset that pervades most corporations. It precludes the opportunity for an
innovation mindset to grow.
 Mindsets
• Domestic Mindset
– Functional Expertise
– Prioritization
– Structure
– Individual Responsibility
– No Surprises
– Training against surprises
• Global Mindset
– Broader Picture
– Balance of
Contradictions
– Process
– Diverse Teamwork
– Change as Opportunity
– Openness to survive