2.0 Introduction to InnovationFaizal Amin Nur B. Yunus

faizaly @uthm.edu.my

Innovation is a process of taking new ideas to satisfied customers. It is the conversion of new knowledge into new products and services.

What is INNOVATION???

CREATIVITY;INNOVATION;andCREATIVE THINKING are not the same !

Creativity vs Innovation vs Creative Thinking

CreativityBringing into existence an idea that is new to you

InnovationThe practical application of creative ideas

Creative Thinking

An innate talent that you were born with and a set of skills that can be learned, developed, and utilized in daily problem solving

generation

development

sale

Creativity techniques

Incubation, prototypes, tests

Innovations = ideations + project management

What is innovation not

• It is not just clever ideas• It is not just new technology • It is not just new products • It is does not take place in isolation• It is not just new or new to the world• It is not the same as invention

“Innovation means different things to different people”

FUN FACTS ABOUT YOUR "SIDES"• The right side of your body is controlled by the left

side of your brain.• The left side of your body is controlled by the right

side of your brain.• Most people are left-brain dominate, even people

who are left-handed writers.• The left side of your brain controls speech, reading,

writing, and math.• The right side deals with spatial relationships,

abstractions, and your feelings.

FORMS OF INNOVATION

Radical Innovation Incremental Innovation

Types of Innovation

Technology Innovation

Product & service Innovation

Process Innovation

Business model Innovation

Types of Innovation

• Business Model Innovation involves changing the way business is done in terms of capturing value e.g. HP vs. Dell, hub and spoke airlines vs. Southwest

• Process Innovation involves the implementation of a new or significantly improved production or delivery method.

Types of Innovation

• Product Innovation, involves the introduction of a new good or service that is new or substantially improved. This might include improvements in functional characteristics, technical abilities, ease of use, or any other dimension.

• Service Innovation, is similar to product innovation except that the innovation relates to services rather than to products

Don’t Believe the Experts !

“That’s an amazing invention, but who would ever want to

use one of them?” (US President Rutherford B. Hayes, after participating in

a trial telephone conversation between Washington and Philadelphia in 1876).

“Television won’t be able to hold onto any market it captures

after the first six months. People will soon get tired of staring

into a box every night (Darryl F. Zanuck, Head of 20th Century Fox, 1946)

“The horse is here to stay, but the automobile is only a

novelty, a fad” (President of Michigan Savings Bank, 1903, advising Henry

Ford’s lawyer not to invest in the Ford Motor Company – disregarding the advice,

he invested $ 5,000 in stock, which he sold several years later for $ 12,5 million).

“I think there is a world market for about five computers (Thomas J. Watson Sr., Chairman of IBM, 1943)

Don’t Believe the Experts !

The Six Levers of Innovation

Business model Innovation

Technology Innovation

Value proposition

Supply Chain

Target Customer

Changes in the value proposition of the product or service – essentially, what you

sell and deliver to the marketplace – may be entirely new product or service or an expanded proposition for an

existing offering.

Supply chain – how value is created and delivered to the market.

Changes to the supply chain are usually “behind-the-scenes”,

changes that customers typically do not see. This type of business model change affects steps along the value

chain, including the way an entity organizes, partners, and operates to produce and deliver its products and

services.

Changes in to whom you sell – the target customer segments –

usually occur when an organization identifies a

segment of customer to whom it does currently direct its

marketing, sales, and distribution efforts that would

consider its product and services valuable.

Business model Innovation

Technology Innovation

Value proposition

Supply Chain

Target Customer

Product and Service offerings

Process technologies

Enabling Technologies

A change to a product or service that a company offers in the

marketplace – or the introduction of an entirely new product or

service – is the most easily recognized type of innovation

because consumer see the changes first-hand. In today’s fast-changing market, consumers have come to expect significant and recurring technological innovation of this

kind.

Changes in the technologies that are integral parts of product manufacturing and service

delivery can result in better, faster, and less expensive

products and services. These process technology change are

usually invisible to the consumer, but often vital to a products

competitive posture.

Rather than changing the functionality of the product

or the process, enabling technology enables a

company to executes the strategy much faster and

leverage time as a source of competitive advantage.

INNOVATION – MAKING A DIFFERENCE

• Financial backing to innovation• Give opportunities to employees• Skillful recruitment policy• Information from outside the

organization• Target being set for innovation• Employees should be rewarded

INNOVATION STRATEGIES

Stimulants to Work Creativity

1) FREEDOM in deciding work to do or how to do it2) CHALLENGE to work hard on important projects3) RESOURCES needed to do the work4) ENCOURAGEMENT from a supervisor who is a good work model, sets appropriate goals, supports and has confidence in the work group5) WORK GROUP SUPPORTS such as diverse skills, people who communicate well, are open to new ideas, constructively challenge one another’s work, trust and help each other, and feel committed to their work6) ORGANIZATIONAL ENCOURAGEMENT in a culture that supports creativity and communicates a shared vision of organization

Obstacles to Work Creativity

1) ORGANIZATIONAL IMPEDIMENTS such as internal political problems, harsh criticism of new ideas, destructive internal competition, avoidance of risk and overemphasis on the status quo2) WORKLOAD PRESSURES such as extreme time pressure, unrealistic expectations, or distractions