INNOVATION STRATEGIES & MODELS

Presented by:
Kamal Manwani (67) Pranav Mohla (63) Nitin Singh (68) Nitin Sharma Aman Sachdev

INDEX
What is innovation Innovation Vs Invention Types of Innovation Innovation levels

Innovation strategies
Example Innovation models Benefits of Innovation Issues with Innovation Future scope Conclusion

WHAT IS INNOVATION?
Innovation is the application of
better solutions that meet new requirements, inarticulate needs,

or existing market needs.

Innovation generally refers to renewing, changing or creating

more effective processes, products

or ways of doing things.

INNOVATION
Innovation takes place through the interaction of three intermingled factors or forces i.e.
1. What technology is available to produce 2. Whether that technology is viable in the marketplace 3. What features or services are desired by consumers

INNOVATION is

Innovation and Invention

Invention is the creation of new technology or process or

product first time either physically or conceptually. Its the core/new idea.
Innovation, on the other hand, occurs if someone improves on

or makes a significant contribution to an existing product, process or service or when it becomes economically successful. Its the exploited version of that idea.

All innovations are inventions but not vice versa.

Innovation and Invention

Why Innovate?

Types of Innovation
Minor change Incremental Product technology: 486 Microprocessors Process technology: continuous improvement Architectural Product technology: Plain Paper Copiers Process technology: JIT Inventories

Component knowledge
Novel change Modular Product technology: Digital telephone Process technology: Quality Circles Existing

Radical Product technology: VCR Process technology: Robotics in manufacturing

Novel

component configuration

Types of Innovation
Product & Process Innovation
Open & Closed Innovation Incremental & Radical Innovation Modular and Architectural Innovation

Types of Innovation:
Product & Process Innovation

Types of Innovation
Open & Closed Innovation
PROJECT START Concept Development CONCEPT FROZEN Implementation MARKET INTRODUCTION

Closed Model For Innovation PROJECT START Concept Development Implementation Open Model For Innovation CONCEPT FROZEN

MARKET INTRODUCTION

Types of Innovation
Modular Innovation : It refers to significant change in elements of product and process of technology without any significant change to the existing configuration of the elements.

Steam Engine of Car

Modular Innovation Change in Component Technology

Fuel Engine of Car

Types of Innovation
Incremental Innovation :
Represents minor improvements or change in the elements of an existing product or processes. Their incubation and implementation require little new knowledge because they are already aligned with existing organizational skills and capabilities.
Improving inherent processes/inputs to achieve higher output

Types of Innovation
Architectural Innovation :
These innovation requires use of existing organizational practices and technologies but reconfigure them in a new knowledge of how the existing components are to be configured into a new system, which will result in better organizational efficiency.

Architectural Innovation Change in Product Structure

Types of Innovation
Radical Innovation : It represents revolutionary change that require clear departure from existing organizational practices and technologies. They are not aligned with the organizational skills and capabilities and these require significant new knowledge for both component and configuration of the system.

Displacing Existing Technology

Innovation Levels
Innovation Occurs at Three Levels

NATIONAL LEVEL

Govt. Policies & support

ENTERPRISE LEVEL

Enterprise policies, support & initiatives

INDIVIDUAL LEVEL

Individual & group innovation activities

Innovation Strategies
SLOW AND STEADY Access several layers /groups Begins with high value segments GRAB AND GROW Mass market basis Capitalize on early entry into market PICK AND PROTECT Picks the right application Creates the highest customer value MIGRATE AND MAINTAIN Maintains customer base by migrating them to upgraded product

Innovation Models
a) Druckers Model b) Linear Model c) Non Linear Model Stephen Klines Chain Linked Model d) Ralph Gomory circle model e) The holistic model of technological innovation f) Alic Branscombs model g) Henderson-Clark Model

DruckerS Model of Innovation

Prepare for Innovation

Conduct a system of search

Perform diagnostic analysis of resultant opportunities

Innovation Process

Exploit the opportunities

Linear/Pipeline/Ladder/Bucket Model Approach

Each level produces output that are transferred as inputs for next level

R&D Model Explains Link Between Knowledge & Economic Performance

Passed to firms trough publications, patents & scientific correspondence

To customers (Products & Services)

Knowledge discovered in universities

Criticism Of Linear Model

It diverts attention from the social & economic

determinants of scientific research activity. It neglects the non scientific origins of many technological developments. It creates barrier to innovations. It is an expensive model since R & D needs a lot of infrastructure.

Innovation is much Broader than R&D

R & D concentrates on product development, aims at

introducing genuine invention with major or radical innovations. Innovation requires the coupling of the technical and economic know-how to align
Activities in the market + R & D+ production functions

Difference between R&D and Innovation

Reported formal R & D expenditures are only a part of

the innovation related outlays made by firms

Formal R & D not effected by alliances and

relationships of power between agencies & firms

Research sparks innovation but does not initiate it Innovation passes through a design stage , market need appreciation & then commercialization

Non Linear Model: Stephen Klines Chain Linked Model

It emphasizes the social-cultural-technical nature of

innovation in context to industry & technology

The first path of innovation process , central chain of-

innovation, begins with DESIGN & continues through DEVELOPMENT & PRODUCTION to MARKETING

The second path is a series of feedbacks

Chain-Linked models
RESEARCH

SECOND PATH

Existing corpus of knowledge

Potential Market

Invent/ produce analytic design

Detailed design & test FIRST PATH

Redesign & procedure

Distribute & market

The Two Phases

Innovation process at firms level
The innovation chain is visualized as a path starting with

the perception of a new market opportunity and/or a new science & technology- based invention each downstream phase in the central chain with the phase immediately preceding it and longer feedback loops link perceived market demand and product users with phase upstream testing new products and new processes often spawn research engineering disciplines & also in sciences.

Feedback relations are generated : short feedback loops link

Problems identified by the processes of designing and

The Two Phases

Industry focused process of innovation
Innovation takes place with the help of available

knowledge. when corporate engineers confront a problem in technical innovation, they will call first on known science & technology e.g. automobile industry adequate information the industry goes in for R & D in the innovation process . Firms below a certain size cannot bear the cost of an R & D team.

Only when those sources of information fail to provide

Ralf Gomorys Circle Model

Two Phases
1
The Ladder Process

2
Cyclic development Process

New things come from sciencestep by step into practice Scientists play dominant role in basic research & early phases

Relationship of science & technology-repeated, continuous incremental improvement Later stages on already commercial products

The Holistic Model

Productio n Design & Developmen t Industrial R&D Market

Feedback/request from market

Products
Basic Research

Industrial Product Enterprises

Alic-Branscombs Model
Innovation is a social process
Application of knowledge & other inputs to design,

develop, create& market products

D&D: Design and Development Results from artful combination of new with old

Henderson-Clark Model

Thank You !