CIS 215 IS Innovations and New Technologies PDF

CIS 215 IS Innovations and New Technologies WVSU-CICT (Information Systems Department)  CC 201 Introduction to Computing...

CIS 215 IS Innovations and New Technologies WVSU-CICT (Information Systems Department)  CC 201 Introduction to Computing Unit 1: Introduction to Innovation 3rd year, First Semester Presented by Prepared by Sigen Marc C. Miranda Doblin [email protected] https://doblin.com Lecturer I, Information Systems Department Doblin-Deloitte Business WVSU-CICT  Updates ! We are now in a REMOTE set-up! 19 20 21 22 BSIS 3B BSIS 3A BSIS 3B BSIS 3A (10AM-11:30AM) (10AM-11:30AM) (10AM-11:30AM) (10AM-11:30AM) Unit 1: Introduction to Unit 1: Introduction to Activity #1: Activity Activity #1: Activity Innovation Innovation Objectives Comprehended the basic terminologies of Innovation Applied creativity in the process of producing innovation Recognized Doblin’s Innovation Framework to understand other companies or products innovation process Course Outline Introduction to Innovation Innovation Definitions Dimensions Drivers Developments The Secret Formula Creativity: A Trait behind Innovation Doblin’s Ten Types of Innovation (and as a Innovation Framework) Introduction to Innovation Definitions | Dimensions | Drivers| Developments Definitions of Innovation Innovation is the process and outcome of creating something new, which is also of value. Innovation involves the whole process from opportunity identification, ideation or invention to development, prototyping, production marketing and sales, while entrepreneurship only needs to involve commercialization (Schumpeter). Innovation is the introduction of new ideas, goods, services, and practices which are intended to be useful (though a number of unsuccessful innovations can be found throughout history). The main driver for innovation is often the courage and energy to better the world. An essential element for innovation is its application in a commercially successful way. Innovation has punctuated and changed human history (consider the development of electricity, steam engines, motor vehicles, et al) Today it is said to involve the capacity to quickly adapt by adopting new innovations (products, processes, strategies, organization, etc) Also, traditionally the focus has been on new products or processes, but recently new business models have come into focus, i.e. the way a firm delivers value and secures profits. Schumpeter argued that innovation comes about through new combinations made by an entrepreneur, resulting in a new product, a new process, opening of new market, new way of organizing the business new sources of supply Dimensions of innovation There are several types of innovation Process, product/service, strategy, which can vary in degree of newness: Incremental to radical, and impact: continuous to discontinuous Drivers for innovation Financial pressures to reduce costs, increase efficiency, do more with less, etc Increased competition Shorter product life cycles Value migration Stricter regulation Industry and community needs for sustainable development Increased demend for accountability Demographic, social and maket changes Rising customer expectations regarding service and quality Changing economy Greater availability of potentially useful technologies coupled with a need to exceed the competition in these technologies Gary Hamel argued that today’s market place is hostile to incumbents, who now needs to conduct radical business innovation: Radically reconceiving products and services, not just developing new products and services Redefining market space Redrawing industry boundaries New conditions for innovation Small start-up entrepreneurs increasingly depend on large firms: as suppliers or customers for venture finance, for exit opportunites, for knowledge (production, markets and R&D) and for opening new markets. New conditions for innovation Large firms increasingly depend on small start-ups for NPD, as suppliers of new knowledge (which they cannot develop themselves), or organizational renewal, for experimentation with busienss models, for opening new markets, etc Developments in innovation raises new issues and problems Greater emphasis on commercializing scientific discoveries, particularly in IT and the bio-sciences Speed and potential value of scientific progress leads to emphasis on solid and well-designed portfolios of research projects Universites as active drivers of innovation: Academic entrepreneurship and the entrepreneurial university University-industry partnerships Increased search for radical innovation and top-line growth. The Secret Formula Innovation = Creativity + Commercialization Bill Ford on Innovation “..if we want to succeed as a company – and as an industry – we must drive innovation into everything we do: into technology, into safety, into design and into real-world solutions for environmental issues, like the impact of energy usage on our world.” Chairman Bill Ford's speech, NATIONAL PRESS CLUB WASHINGTON, DC November 22, 2005 “Innovation is going to be the compass by which this company sets its direction.” Bill Ford, Remarks On Innovation, Dearborn, Michigan, September 21, 2005 Types of innovation Types of innovation In business and economics, innovation is often divided into five types: 1. Product innovation, which involves the introduction of a new good or service that is substantially improved. This might include improvements in functional characteristics, technical abilities, ease of use, or any other dimension. 2. Process innovation involves the implementation of a new or significantly improved production or delivery method. 3. Marketing innovation is the development of new marketing methods with improvement in product design or packaging, product promotion or pricing. 4. Organizational innovation (also referred to as social innovation) involves the creation of new organizations, business practices, ways of running organizations or new organizational behavior. 5. Business Model innovation involves changing the way business is done in terms of capturing value e.g. Compaq vs. Dell. Innovative Thinking: Six Simple Secrets by Padi Selwyn, M.A. Are you creative?  What is Creativity? According to social psychologist Teresa Amabile, there are three basic ingredients to creativity: Domain skills - Domain skills are developed as one becomes an expert in a field. To be a creative mechanical engineer, one must first master the fundamentals of the discipline. Creative thinking skills - Creative thinking skills include seeking novelty and diversity, being independent, being persistent, and having high standards. Intrinsic motivation - Intrinsic motivation implies that the reasons for doing things come from within - from passion and pleasure, not as a result of external demands, pressures, or rewards. Everyday Creativity: Principles for Innovative Design. Dr. Larry G. Richards Portrait of a Creative Person “Creative people pay attention to their world, see things differently, challenge assumptions, take risks, are not afraid to fail, and strive to generate multiple solutions to problems. They are passionate about creativity and seek opportunities to innovate.” Everyday Creativity: Principles for Innovative Design. Dr. Larry G. Richards Six Tips To Help You Enhance Your Creativity 1. Open Your Mind - Have one new experience every day; no matter how small. New experiences stimulate the brain and help you make new and original connections; critical for boosting breakthroughs. 2. Diversify - Involve others in your problem-solving efforts who bring a different perspective or cultural experience than yours. 3. Mental Floss – Relax; Stress, exhaustion, boredom and even pain can block our pathways to creativity. 4. Stop Looking For the Right Answer - Look for many right answers. 5. Discover Your Creative Rhythm - Start paying attention to when you get your best ideas. 6. Health Makes Wealth - Regular exercise not only benefits your body, it boosts brain performance as well. Innovative Thinking: Six Simple Secrets by Padi Selwyn, M.A. … and another one: Find what you love to do “We know that people do their most creative work when they love doing what they’re doing. There’s no substitute for intrinsic motivation, that is, motivation that comes from within. Although such motivation doesn’t guarantee creativity, dislike or lack of interest in work practically guarantees non-creativity.” Ten Keys to Creative Innovation by Robert J. Sternberg, Ph.D. and Todd I. Lubart, Ph.D.  This approach to innovation that looks at innovation through the lens of 10 dimensions, was invented at Doblin, around 1997. Doblin is a global innovation agency, founded in 1981 by Jay Doblin and Larry Keeley. According to Doblin’s website, the agency is approaching innovation based on people and multidisciplinarity. On the website, you can always see the evolution of the agency, including the 1997 moment when the 10 types of innovation approach was developed.  After testing and various improvements, in 2013 Larry Kelley, one of the Doblin co-founders publishes the book – Ten Types of Innovation: The Discipline of Building Breakthroughs. https://issuu.com/doblin/docs/tentypesofinnovation_bookpreview https://issuu.com/doblin/docs/tentypesofinnovation_bookpreview  The 10 types of innovation theory is the result of almost 40 years of studies and research on over 2000 successful companies, such as Amazon, IBM, and Ford. The people at Doblin aimed to identify patterns in companies which have successfully innovated in the past, as well as the reasons for these types of initiatives to fail.  The research results of over 40 years of research are presented in the book. There, the authors start by mentioning that innovation and innovations aren’t only based on bright ideas and creativity but discipline. Then, the authors offer examples for each type of innovation and key moments that happened throughout the years inside these innovative ecosystems. Profit Model Profit Model Innovation deals with how your organization makes money – to innovate, think about where your revenue is coming from, and what you can do to generate more. Model profit innovation takes place when a company finds new ways to develop, deliver, and most importantly, captures value. For this, you must analyze your customers’ needs and find new ways to monetize based on their unsolved needs. Profit Model Innovation Example – Netflix – For the way in which it managed to radically transform the movie rental business, at first, into a DVD-delivery one and only then, into the streaming industry. Network Network Innovation looks the way in which your company deals with the relationship with the stakeholders and how you approach the strategies behind the partnerships. Take a look at your supply chain – is there room for improvement? Network Innovation is a form of open innovation, an approach to innovation which „uses internal and external flows of information to accelerate internal innovation and to extend the market for the external use of innovation.” In other words, open innovation is the result of the sharing of knowledge and expertise between multiple companies. Structure To innovate at a structural level you must look at the tasks and processes which stand at the base of the organization – from IT to payroll and others – you must think what is necessary, what isn’t and what needs improvement (by investing in new technologies, for example) and what can be outsourced. An example of structure innovation comes from Google, with its 20% Project, where employees can work, for 20% of their time, on personal projects that can also benefit the company. Process Process Innovation is when the processes inside the company are improved for their efficiency either to reduce production time or to reduce certain costs. McDonald’s is one of the most famous process innovation examples. First of all, they have the kitchen process that made the company famous. It is what is going on in the kitchen, some sort of „efficiency ballet” as the movie The Founder shows us. Secondly, McDonald’s is still innovating at process level to this day. Close to Los Angeles is a call center which takes drive-through orders from several restaurants across different USA states. This innovation helps them save a few seconds for every order. Product Performance For Product Performance Innovation, take a look at how can your products and their performance be improved. From all aspects – their look, their efficiency etc. Product performance innovation focuses on the value and the features and quality of the products. This is done by developing new products or by improving products that already exist. In an interesting way, this is connected with process innovation, another approach to innovation that we wrote about in this article. An example of product performance innovation is Gorilla Glass, made by Corning, which is the result of 160 years of testing and improvement. Product System Similar to Product Performance Innovation, Product System Innovation is about the company’s offer – what can you do to improve it? More precisely, along the main products, what other complementary offers can you add to them to satisfy the customers’ needs better, which will bring you profit? A Product System Innovation example is Nike+, a kit and an app that brings together multiple Nike products and offers, such as Nike+ Run Club or Nike+ Training Club. Service Service Innovation deals with the relationship between your customer and the company – How do you behave with them? How does your relationship look like? How can you improve it? How do you bring in more value? On the other side, it deals with the „relation” between the customers and your product, especially the improvement of the product in terms of usability. Zappos, a company which sells clothing and footwear, prides itself with the client service, saying it delivers a WOW experience, even has the tagline – „To Live and Deliver WOW”. It is about the very personal relationship they manage to form with the customers via phone customer support Channel This is about all the channels where your customers and potential customers can find out about your company and its offering, as well as the way in which your company communicates and maintains that relationship. A really interesting example of channel innovation that we encountered is from the New York Public Library which created the Insta Novels – a very efficient way to connect with a new generation of readers, offering them the right content on the right platform. Brand Innovation Brand innovation is about your company’s brand – it makes sure that the potential customers place your brand before those of the competition. For a strong brand strategy, you must take into consideration your company’s values, the positioning, benefits and many other elements that we covered in the article about the Go- To-Market Strategy. A great example of Brand Innovation is Virgin Media, a giant which until this day has extended its brand all the way to the industry of soda with Virgin Cola or the tourism industry with Virgin Holidays. Customer Engagement Innovation Customer Engagement Innovation deals with what your customers think about your product or service and how you can interact with them in a more efficient way. Customer Engagement Innovation is done by identifying the needs of the consumers. A great Customer Engagement Innovation example is Apple. Whenever Apple launches new products it manages to keep a solid loyal customer base.  CC 201 Introduction to Computing Unit 1: Introduction to Innovation 3rd year, First Semester Presented by Prepared by Sigen Marc C. Miranda Marlon Dumas, Marcello La Rosa, [email protected] Jan Mendling, Hajo A. Reijers Lecturer I, Information Systems Department https://link.springer.com/book/10.1007/978-3-662-56509-4 WVSU-CICT Springer