Innovation Week 2 PDF

Innovation week 2 Assoc. Prof. Evrim İldem DEVELİ Innovation "new idea, creative thoughts, and new imaginations in form of device or method". the application of better solutions that meet new requirements, silent needs, or existing market needs. Such i...

Innovation week 2 Assoc. Prof. Evrim İldem DEVELİ Innovation "new idea, creative thoughts, and new imaginations in form of device or method". the application of better solutions that meet new requirements, silent needs, or existing market needs. Such innovation takes place through the provision of more effective products, processes, services, technologies, or business models that are made available to markets, governments and society. Innovation the process of turning opportunity into new ideas and of putting these into widely used practice. It is the management of the entire activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product. The process of translating an idea or invention into a good or service that creates value or for which customers will pay. In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers. Innovation Godin (2008) defines 12 concepts of innovation which can be described as follows: innovation as process of doing of something new  innovation as imitation  innovation as invention  innovation as discovery  innovation as human abilities to creative activity  innovation as ingenuity  innovation as creativity Innovation innovation as change in all spheres of life innovation as cultural change innovation as social change innovation as organizational change political change; technological change innovation as commercialization of new product  Importance of Innovation Solving problems: Most ideas are actually derived from attempts to solve existing problems. Adapting to change: In the technological world there are rapid changes defining the business. Change is inevitable. Importance of Innovation Facing up the competition: To retain or establish the company’s cutting edge, you can compete strategically by having a dynamic business that is able to make strategic and innovative moves and thus cut above the rest. Importance of Innovation Customers’ changing tastes and preferences: The current customer has a great variety of products and services available to him and is well informed of his choices than before. The company must therefore keep itself abreast with these evolving tastes and also forge new ways of satisfying the customer. Type of Innovation Type of Innovation Type of Innovation  Type of Innovation 1. Incremental innovation: seeks to improve the systems that already exist, making them better, faster cheaper. 2. Process innovation: means the implementation of a new or significantly improved production or delivery method.  Type of Innovation 3. Red ocean innovation: refers to the known market space, i.e. all the industries in existence today. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Companies try to outperform their rivals to grab a greater share of existing demand usually through marginal changes in offering level and price. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Type of Innovation 4. Service innovation: Service Innovation can be defined as “a new or considerably changed service concept, client interaction channel, service delivery system or technological concept that individually, but most likely in combination, leads to one or more renewed service functions that are new to the firm. Type of Innovation 5. Business model innovation: refers to the creation, or reinvention, of a business itself. Whereas innovation is more typically seen in the form of a new product or service offering, a business model innovation results in an entirely different type of company that competes not only on the value proposition of its offerings, but aligns its profit formula, resources and processes to enhance that value proposition, capture new market segments and alienate competitors. Type of Innovation 6. Sustainable innovation: Eco-innovation is a term used to describe products and processes that contribute to sustainable development. Type of Innovation 7. Frugal innovation: Frugal Innovation is about doing more with less. Entrepreneurs and innovators in emerging markets have to devise low cost strategies to either tap or circumvent institutional complexities and resource limitations to innovate, develop and deliver products and services to low income users with little purchasing power. Type of Innovation 8. Blue ocean innovation: Blue Oceans represent the unknown market space, i.e. all the industries not in existence today. Blue oceans are defined by untapped market space, demand creation, and the opportunity for highly profitable growth. In blue oceans, competition is irrelevant because the rules of the game are not set. Blue oceans can be created by expanding existing industry boundaries or by reconstructing industry boundaries. Type of Innovation 9.Disruptive innovation A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology. In a nutshell, disruptive innovation is that when the basis of competition changes, because of technological shifts or other changes in the marketplace, companies can find they getting better and better at things people want less and less. When that happens, innovating your products won’t help — you have to innovate your business model. Type of Innovation 10. User led innovations: The user is king. It’s a phrase that’s repeated over and over again as a mantra: Companies must become user-centric. But there’s a problem: It doesn’t work. Here’s the truth: Great brands lead users, not the other way around. Type of Innovation 11. Supply chain innovation: Supply chain innovation is about applying best practices and technological innovations to your own supply chain in order to reduce such cycle and wait times and other waste (to use a Lean term) in your in-house processes.