an introduction to innovation and intrapreneurship objectives. understand the major challenges faced...
TRANSCRIPT
An introduction to innovation and intrapreneurship
Objectives.
Understand the major challenges faced by companies when trying to implement innovation strategies.
Identify the major components of an innovation system.
Understand the key concepts of innovation, and, understand the links between ideas, invention and innovation.
Be able to identify the key types of innovation.
The year is 2050. As new head of virtual services development of Worldwide Business Machines, the company CEO has sent you to the 25th annual Global Innovation Symposium held this year in Montréal. This year’s them : Innovation : Past, Present and Future. She has asked you to learn more about innovation and the challenges for the company.
Instead of sending your holographic ‘smart’ avatar to the meeting, you’ve decided to come yourself. Your avatar would have surely gathered the information you needed (as it has been gathering information on you since you started working 5 years ago in the Finance department) and asked the right questions but, you’ve come to meet people face-to-face. A big expense, with Hydrogen powered plane tickets going for just a bit over $10,000 – economy class – but a worthwhile investment.
Let’s take a look inside the conference hall…
Welcome to the conference centre
Your interactive personal digital assistant will help you find your way.
A short welcome
Welcome to the conference centre
Click on the area you want to discover at the Conference.
Your interactive personal digital assistant will help you find your way.
A short welcome
Click to learn more
Opportunity Identification : Knowing where to lookOpportunity Identification : Knowing how to look
Creativity : Liberate Yourself and Your OrganisationOrganising for InnovationEvaluating Innovation Projects
Innovation
Innovation should not be a “oneshot” but rather a way of doing business
Companies can become more innovative
Entrepreneurial behavior inside the company can be developed
What is innovation? What are the different types of innovation? These short exercises will open your eyes to what lies ahead.
Discovery Exercise
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
The Dvorak keyboard was a successful innovation.
True
False
Choose the best answer
1
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
The Dvorak keyboard was a successful innovation.
True
False
• Innovations are much more than ideas, concepts, or even prototypes. Innovation is defined around the idea of creating true value for customers. As the keyboard never achieved commercial success, it is difficult to consider it as an innovation.
1
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
True
False
Choose the best answer
Since 1970, between 1/3 and ½ of the Fortune 500 companies disappear for any given 10 year period.
2
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
True
False
• Companies come and go from the famous list at this alarming rate. This high degree of churn suggests that sustainable innovation policies and appropriate management are key to long term success.
Since 1970, between 1/3 and ½ of the Fortune 500 companies disappear for any given 10 year period.
2
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
Singer
Kroc
Choose the best answer
Which of the following persons are NOT famous innovators?
W.H.Hoover
Isaac Singer
Ray Kroc
Hoover
3
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
Singer
Kroc
Choose the best answer
Which of the following persons are NOT famous innovators?
W.H.Hoover
Isaac Singer
Ray Kroc
Hoover
• Hoover and Singer are not innovators but rather they are inventors. Their ideas were however transformed into successful innovations by J. Murray Spengler (Vacuum) and Elias Howe (Sewing machine). Kroc is of course the man who took the McDonalds concept and turned it into the McDonalds we know of today.
3
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
Appliances
Hard Drives
Choose the best answer
Nokia is recognized as a world player in the portable telephone market. However, it’s origins are quite different. In what sector did Nokia start? Lumber
4
Understanding what innovation is – and isn’t.Carefully listen and then answer the question.
Choose the best answer
• Nokia was founded as a lumber mill on the Nokia river in 1865. By the 197às it was a Finnish conglomerate producing various products. Supported by the Finnish government in its development Nokia is considered to be a giant in innovation. Surprisingly in 2004 Nokia started to trim its R&D budget and embarked on activities to have other companies participate in their R&D
Appliances
Hard Drives
Nokia is recognized as a world player in the portable telephone market. However, it’s origins are quite different. In what sector did Nokia start? Lumber
4
So what exactly are we talking about when w e talk about innovation? The following presents some of the basic foundations of innovation.
Listen, read and learn
What is innovation?More than you imagine….
What is innovation?Some definitions
The introduction of something newMerriam-Webster Dictionary
The implementation of a new or significantly improved idea, good, service, process or practice which is intended to be useful.
Wikipedia
Innovation is the process that transforms ideas into commercial valueAnonymous
The distinction between "invention" and "innovation" is that invention is the creation of a new idea or concept, and innovation is turning the new concept into commercial success or widespread use.
Anonymous
What is innovation?The many faces of innovation
Product Service Process
Types of innovation
Degree of perceived“newness”
Incr
emen
tal
Rad
ical
Tra
nsfo
r-m
atio
nal
HomeBanking
Improved check fraud
devices
Interestbearing
checking
Creditcards
Requiredreserves
Expert systembased creditevaluation
Electronic check
routing
Adoption ofa commoncurrency
Insurancecounseling
What is innovation?Built around three important business capabilities
Customer problems
Technological change
Societal change
3000 1INNOVATIVENESS
What is innovation?Invention without innovation
Bye Bye !
Unfortunately,invention without innovation does exist.
In many cases, organizations are unable to transform creative talent into useful value and ideas are forever trapped internally.
Frustration is often followed by “creativity draining” of the organization.
the organization
What is innovation?Innovation without invention
You can buy almost everything today.
You can buy ideas, you can buy knowledge, you can buy materials and resources, you can even buy (the use of) money.
The only thing you cannot buy is the courage and the persistence to implement creative ideas.
“
”Wofgang Fürniss, Past mayor of a large German city
the organization
What is innovation?The points of view of companies today.
Click to learn more about what various company executives have to say about innovation.
XxxxxPresidentEnterpise XXX“Innovation is a requirement”
ZZZZPresidentEnterpise ZZZZZ“Innovation requires value creation”
YYYYPresidentEnterpise YYYYY“Innovativeness can be managed”
The challenges of innovationFive important features of innovation
It requires the effort of people
It’s hard work
It cannot be mandated
Innovative behaviors can be learned
The speed of change determines appropriate innovation
The challenges of innovationThe need for speed of innovation
Rapidly changing environment
Faster adoption rates
SWIFTQUICKRAPIDSpeed is essential to capture value
The challenges of innovationBut what if some innovation isn’t valued by customers today ?
Incremental InnovationSteady improvementsSustaining technologiesCan be rapidly implementedImmediate gainsDevelops customer loyalty
BUTMay hinder radical change
Radical Innovation Fundamental re-think Capture new markets Can create new standards
BUT Disruptive technologies Long periods of nurturing Worse initial performance
Valued by customers today Valued by customers tomorrow
The challenges of innovationBut what if some innovation isn’t valued by customers today ?
Har
d dr
ive
capa
city
Year
5.25
driv
e ca
pacit
y
Capacity demanded for
mini-computers
8 inch
drive ca
pacity
Capacity demanded for
PCs
The challenges of innovationThe points of view of companies today.
Click to learn more about what various company executives have to say about innovation.
XxxxxPresidentEnterpise XXX“Innovation is a requirement”
ZZZZPresidentEnterpise ZZZZZ“Innovation requires value creation”
YYYYPresidentEnterpise YYYYY“Innovativeness can be managed”
Active Reading
When prompted, please click on the various parts of the screen.
An innovation system is composed of four separate subsystems. Click on each component to learn more.
The innovation system
The innovation strategy clearly defines why the company needs to innovate, in what areas it focuses innovation efforts and through what means innovation is to be addressed.
Innovation StrategyInnovation Strategy
WhereWhereWhy How
The key innovation processes carry ideas through the innovation funnel. Because the company must manage a portfolio of projects, each innovation project is evaluated across the funnel and resource allocation is adjusted accordingly.
The innovation system
Key Innovation ProcessesKey Innovation Processes
OpportunityIdentificationOpportunityIdentification
OpportunitySelection
OpportunitySelection
Development &
Testing
Development &
Testing
Production&
Launch
Production&
Launch
Managing the PortfolioManaging the Portfolio
Research and development feeds directly into innovation – but remember – it is only a part of the innovation system !
The innovation system
Bas
ic &
App
lied
Res
earc
hB
asic
& A
pplie
d R
esea
rch
Support structures and systems support the innovation processes, making them both more effective and efficient.
The innovation system
Innovation Support Structures and SystemsInnovation Support Structures and Systems
Innovation StructuresInnovation Structures
Innovation MeasuresInnovation Measures
Innovation Policies and SystemsInnovation Policies and Systems
C H I L D R E N
P A R E N T S
G R A N D P A R E N T S
Comprehension exerciseThe innovation “family tree”
INNOVATIONINNOVATION
Opportunity
Necessity
Values
Change
Invention
Innovativeness
Higherquality of life
Higherliving standard
Directions : Place the elements from the right in the appropriate boxes of the innovation “family tree”.