Unit 1 (IE)
Unit 1 (IE)
Unit 1 (IE)
INNOVATION
AND
ENTREPRENEU
RSHIP BMB 106
Semester - 1
Unit 1 (4 Hours) Creativity and Innovation:
Meaning, the difference between
innovation and creativity, Innovation types
& Platforms, Business Model Innovation,
Service Innovation, Design-led innovation,
Improvisation, Large firm Vs. Start-up
innovation, Co-creation and open
innovation, developing an innovation
strategy, Sources of innovation, Innovation
Environment, Creative Destruction
Definition of Innovation
The word “innovation” is derived from the
Latin word Innovare, which means to renew..
Innovation means to improve or to replace
something, for example, a process, a product,
or a service. Innovation is a process by which a
product, or a service is renewed and brought
up to date by applying new processes,
introducing new techniques, or establishing
successful ideas to create new value.
Innovation
Meaning of innovation
Innovation is the practical implementation of ideas that
result in the introduction of new goods or services or
improvement in offering goods or services.
innovation means "a new or changed entity realizing or
redistributing value". All the definitions of innovations is
moving around or focus on newness, improvement, and
spread of ideas or technologies.
Innovation often takes place through the development of
more-effective products,
processes, services, technologies, art works or business
models that innovators make available
to markets, governments and society.]
Difference between Creativity
and Innovation
An invention occurs when you are
creating a completely new idea, while
an innovation is improving upon an
existing idea. for example transportation
When the first car was created, it was
an invention, and further improvement
is all innovation.
Difference between Creativity
and Innovation
Business Model Innovation
Watches need winding up, or batteries replacing and they also need
the time to be adjusted every once in a while in order to remain
accurate and then came along solar powered watches and watches
that are radio controlled to automatically set to the correct time.
Industry And Market Changes
Industry and market changes are sources of innovation. Such
changes often result as people change their preferences,
tastes and values.
One example would be peoples particular preference to a
particular style of food. Mexican food becomes popular so up
pops a Mexican fast-food chain such as Taco Bell.
Japanese cuisine becomes popular so up pop restaurants that
demonstrate the art of sushi making, etc.
Drucker suggested that it was feasible for innovation to stem
from any number of these aforementioned opportunities.
Ultimately though innovation still requires hard work/effort and
this is highlighted in the following quote from Drucker in his
article The discipline of innovation, Harvard Business Review:
Innovation Strategy
Innovation Strategy – What is it and how
to develop one?
Strategy is about making choices between a
number of feasible options to have the best
chance at “winning”, and innovation is just one
of the means to achieve your strategic goals.
Without a good one, it’s actually quite difficult
to achieve long-term success and orient
your business for speed in order to secure
competitive advantage.
What is Innovation Strategy?
Innovation is about creating new value
people are willing to use and pay for,
whereas strategy is the plan for harnessing
for example marketing, operations, finance
and R&D to support achieving the
competitive goal
Innovation strategy can be described
as an explicit roadmap for desired
future.
The Strategy Choice Cascade
Building innovation into your strategy
development process starts with making a
deliberate choice of focusing on the best
possible way to win as well as justifying
the reasons behind that choice.
Often, the best approach to this is to make a
set of choices you’re more capable of
putting into practice compared to other
players in your field.
5 Steps for Developing
Your Innovation Strategy
1. Determine objectives and strategic
approach to innovation
The first step in the strategy choice cascade is to
define your winning aspiration. In other words, your
innovation objectives and the why behind your
innovation strategy.
2. Know Your Market: Customers and
Competitors
The second step in the strategy choice cascade is
defining the right playing field, as in, the market
you’re operating in and the customer segment
you’re offering value for.
3. Define Your Value Proposition
Next, and probably the most important
step is to define that unique value
proposition. How will you win? What
type of innovations allow the company
to capture that value and achieve
competitive advantage?
4. Assess and Develop Your Core Capabilities
The first three steps in the strategy choice cascade really come down
to one thing; your fundamental capabilities required for winning.
When assessing your set of capabilities that need to be in place,
consider the following:
Culture
R&D
Behaviors
Values
Knowledge
Skills
For example, if you want to win at delivering breakthrough
technology, you must have internal skills and knowledge to be able
to build that. The ability to connect and develop these capabilities is
key to innovation.
5. Establish Your Innovation Techniques and
Systems
Last but not least, to be able to execute your
innovation strategy in a scalable and integrated
manner, you should find out what systems need to
be in place.
Define: which innovation techniques and systems do
we need in to be able to link our innovation
infrastructure elements together? What are the most
important systems that support and
help measuring the results of our innovation
strategy?
Service Innovation
A service innovation is a service product or service
process that is based on some technology or
systematic method. In services however, the
innovation does not necessarily relate to the
novelty of the technology itself but the innovation
often lies in the non-technological areas. Service
innovations can for instance be new solutions in
the customer interface, new distribution methods,
novel application of technology in the service
process, new forms of operation with the supply
chain or new ways to organize and manage
services."
Areas Of Innovation In
Service
The Service Concept refers to a service concept that is new
to its particular market – a new service in effect, or
terminology, a “new value proposition”. Many service
innovations involve fairly intangible characteristics of the
service, and others involve new ways of organizing solutions
to problems .Examples might include new types of bank
account or information service.
The Client Interface refers to innovation in the interface
between the service provider and its customers. Clients are
often highly involved in service production, and changes in
the way in which they play their roles and are related to
suppliers can be major innovations for many services.
Examples might include a greater amount of self-service for
clients visiting service organizations
The Service Delivery System also often relates to the
linkage between the service provider and its client, since
delivery does involve an interaction across this
interface. However, there are also internal
organizational arrangements that relate to the ways in
which service workers perform their job so as to deliver
the critical services
Technological Options New information technology is
especially important to services, since it allows for
greater efficiency and effectiveness in the information-
processing elements that are prevalent to a great extent
in services sectors..
.
service innovations will almost certainly involve various
combinations of these four dimensions
A new IT system (technology dimension) may be used to
enable customer self-service (interface dimension) as in the
case of a bank contacting its customers.
The ability to track one's order or the location of an item that
one has posted or is expecting to receive.
Services may be delivered electronically, as in the case of
much online banking and cash withdrawals from ATMs.
A new service allowing a client to examine various options and
calculate what they would be paying with different types of
accounts.
A new service will often require a new service delivery system,
and changes at the client interface.
Features of services associated with
service production Technology and Plant (Low
levels of capital equipment; heavy investment in
buildings >>> Reduce costs of buildings by use
of teleservices, toll-free phone numbers, etc.)
Features of Production (Production is often non-
continuous and economies of scale are limited
>>> Standardize production (e.g. 'fast-food'
chains), reorganize in more assembly-line-like
feature with more standard components and
higher division of labor.)
Features of services associated with service
product
Nature of Product (Immaterial, often information-
intensive; Hard to store or transport; Process and product
hard to distinguish. >>> Add material components (e.g.
client cards, membership cards). Use telematics for
ordering, reservation, and if possible – delivery. Maintain
elements of familiar 'user-interfaces'.)
Features of Product (Often customized to consumer
requirements.>>> Use of Electronic data interchange or
Internet for remote input of client details; use software to
record client requirements and match to service product.
Features of services associated with services
consumptionDelivery of Product (Production and
consumption coterminous in time and space; often
client or supplier has to move to meet the other
party.>>> Telematics; Automated Teller Machines
and equivalent information services.)
Role of Consumer (Services are consumer-intensive,
requiring inputs from consumer into
design/production process.>>> Consumer use of
standardized menus and new modes of delivering
orders.)
Features of services associated with
services market
Regulation (Professional regulation common in
some services.>>> Use of databases by
regulatory institutions and service providers to
supply and examine performance indicators and
diagnostic evidence.)
Marketing (Difficult to demonstrate products in
advance.>>> Guarantees; demonstration
packages (e.g. demo software, shareware, trial
periods of use).)
Design Led Innovation
Design Led Innovation is to create innovators who will explore
and apply the understanding of creative and original thinking
through deeper exploration of human behavior, socio political
context, environmental impact, business strategy and
technology.
One popular Design Led Innovation framework developed by
Sam Bucolo, Cara Wringley and Judy Mathews is adopted to
explain the underlying objective of this course. The
framework was developed to assist organizations who have
the desire to grow through opportunity mapping and
embedding strategic value of design within their operations.
The concept acknowledges that within any business a
continuum exists between operational and strategic activities,
and these activities have both internal and external focus.
Design Led Innovation
Framework
Design-Led Innovation concentrates on innovative
interventions in a social or a business context. We
think of Design-Led Innovation not just as “design
driven” in its traditional sense, but more about
“designing for emerging usages and technologies” to
project and foresee what can be. We believe that a
true multidisciplinary space is a key to nurture
creativity and innovation. The program guides an
individual towards creating innovative and sustainable
intervention with the potential to drive positive change
in an organization or society.
Definition of improvisation
“The ability in that very moment to
create something quickly out of nothing,
in collaboration with others. To be bold,
confident, without fear of failure”.
The principles of improvisation