Understanding

Innovation

Presented by: Syed Asghar Reza

Innovationis about finding a

better way of doing something
Innovation differs from improvement in that
innovation refers to the notion of doing something
different rather than doing the same thing better.

Invention vs Innovation
Invention
Inventionis the "creation of a
product or introduction of a
process for the first time."
Thomas Edison was an
inventor.

Innovation
Innovationhappens when
someone "improves on or
makes a significant
contribution" to something
that has already been
invented.
Steve Jobswas an innovator.

Grastyexplains it with an analogy:

"If invention is a pebble tossed in the pond, innovation is the
rippling effect that pebble causes. Someone has to toss the pebble.
That's the inventor. Someone has to recognize the ripple will
eventually become a wave. That's the entrepreneur.

The
most
expensive
and
inventive
things
are
not
necessarily the ones that
provide the greatest value to
the market and vice-versa as
well.
- Stefan Thomke.

Stefan Thomke, an authority on the management of innovation, is the

William Barclay Harding Professor of Business Administration at
Harvard Business School. He has worked with US, European and
Asian firms on product, process, and technology development,
organizational design and change, and strategy.

Innovation
Its a much overused word.

The Wall Street Journal did an analysis sometime back where it

counted the number of times the word innovation appeared in
the quarterly and annual reports in the United States in 2011.
They counted more than 33,000 times.
What does it mean?
It means novelty and value. The value requirement is a
really important point. And that makes it different from the
word invention.
Invention is a more legal term. It is about getting patents.
There are companies that have a lot of patents which have
no value for anybody..

Source: Mckinseys Survey on Innovation - 2007

Source: Mckinseys Survey on Innovation - 2007

Source: Mckinseys Survey on Innovation - 2007

Source: www.pwc.com/innovationsurvey

In Vitro Diagnostics

One of the biggest innovations for their customers was an

algorithm, which was essentially a piece of software that ensured
quality control. That was one of their main selling points and
customers would basically buy their equipment because they
highlighted that. They said that I have this insurance that when I
run these tests the equipment automatically checks for quality
and is actually very reliable. And they marketed that. From an
R&D perspective, it was one of the easiest things that they have
ever done. It was really just an algorithm that they figured out
using
data.

Putting more features into a

product
It is a myth that the more features a product has, the
customer actually sits there and counts the features,
and that somehow drives our ability to price it.
Can actually add value to a customer experience by
taking features out, by de-featuring.
Teams should do is think about when they can no longer
take things out of a product rather than when they can
no longer add things to it.

Teams should do is think about when they

can no longer take things out of a product
rather than when they can no longer add
things to it.

Making things simple is difficult

Simplicity is the ultimate sophistication Leonardo Da
Vinci

To make things simpler is very hard because that requires

you to have a very deep understanding of what the user
really wants.
Mark Twain once said, if I had more time I would write a short
letter.
Creating something out of a lot of bells and whistles is a lot
easier.
Creating something that has the essential features is
difficult because that requires a lot more thought and a lot
more research

You buy an iPhone with single leaflet while toaster comes

with a thick manual.

 B&O has no standard process of product development but

it relies on culturally evolved collaborations between
designers, concept developers, engineers and
technicians.
The whole process from idea to market takes 2 years or
longer.
Designer
s

Engineer
s
Anti
thesis

Thesis

Synthesi
s

BMW i3
BMW is launching i3 which is an extremely innovative car, fully
electric car.
BMW figured out how to actually make the entire body shell out of
carbon fibre.
They had to come up with a process innovation.
They had to automate the production of carbon fibre. Once you
make the body of your car from carbon fibre, things like crash
dynamics totally change. Then there was the electric side of it as
well. The i3 is coming out this fall.. It is going to be priced pretty
close to $35,000-40,000 in the United States and close to around
35,000 in Europe. This is a huge bet that they are placing.

Lifebuoy has unveiled a

breakthrough technology in germ
protection Active Naturol
Shield launched as part of the
new Lifebuoy clini-care10 range.

Lifebuoy
Clini
Care 10

10x better germ protection and 10x more skin

care.

TEN TIMES BETTER

The invention which was led by Unilevers R&D centre in
Bangalore, India contains a combination of natural extracts
that, when combined with the best skin cleansing and care
agents, provides a distinct natural germ-kill active that is
clinically proven to deliver 10 times better germ protection, 10
times more skin care compared to other leading germ
protection products.

INDIA LAUNCH
The product has been launched initially in India and will be
available in Bar and Self-Foaming Liquid Hand Wash formats in
two variants Lifebuoy clini-care10 Complete and Lifebuoy
clini-care10 Fresh. Roll-out to other countries will follow at a
later date.

ACTIVE NATUROL SHIELD

Faster and better reduction of a wide range of germs in the
few seconds that consumers typically take to wash their
hands.
Most of the actives in current germ protection soap bars are
slower-acting, effective only after contact times of a few
minutes.
Delivers longer lasting protection to prevent the re-growth
of germs on skin.
Lifebuoy clini-care10 range, the milder and superior skin
care formulation helps prevent skin damage and germ
attack through damaged skin.

Zones of Innovation

Zones of Innovation
Incrementalinnovationsinvolve modest changes to existing
products and services. These are enhancements that keep a
business competitive, such as new product features and service
improvements.
Breakthroughinnovation refers to large technological advances
that propel an existing product or service ahead of competitors. This
is often the result of research and development labs (R&D), who are
striving for the next patentable formula, device and technology.
Disruptiveinnovationisa term coined by Clayton Christensen. In
his best-selling bookThe Innovators Dilemmahe shows that
disruptive innovations result isworseproduct performance, at least
in the near-term. [They] bring to a market a very different value
proposition than had been available previously
Game-changinginnovation transform markets and evensociety.
These innovations have a radical impact on how humans act, think
and feel in some way.

Case in View
Disruptive Innovation: Easy to access, convenient to manage and
cheap to get

Disruptive -When Toyota came out with the Prius, the Hybrid became
more of a disruptive technology as it was able to realize greater
efficiencies than the competition's ultra efficient engines. This helped
Toyota to overtake GM at the time as the largest automaker in the world.
However the biggest disrupter about to hit the auto industry over the next
decade is theElectric Car. The models sold by Tesla Motors achieve over
100MPGs without sacrificing performance, design, or comfort.
ThisEVtechnology truly threatens the old automotive model.
Disruptive
Market Disrupted
Category
Innovation
by Innovation
Communication

Email

Postal Email

Computing

Personal Computers

Mainframes

Medical

Ultrasound

Radiography

Model of Disruptive Innovation

Diffusion of Innovation
Diffusion of innovationsis a theory that seeks to explain how, why,
and at what rate newideas andtechnologyspread
throughcultures.
Diffusion is the process by which aninnovationis communicated
through certain channels over time among the members of a social
system.
There are four main elements that influence the spread of a new
idea:
1234-

The innovation
Communication channels
Time
Social system

Diffusion of Innovation

(contd)

With successive groups of consumers adopting the new product (shown in blue),
its market share (yellow) will eventually reach the saturation level.

Diffusion of Innovation

(contd)

Product Innovation depends on factors:

Modernity: The extent to which the culture is receptive to new things.
In some countries, such as Britain and Saudi Arabia, tradition is greatly
valuedthus, new products often dont fare too well. The United
States, in contrast, tends to value progress.
Homophily: The more similar to each other that members of a culture
are, the more likely an innovation is to spreadpeople are more likely
to imitate similar than different models.
The two most rapidly adopting countries in the World are the U.S. and
Japan.
Physical distance: The greater the distance between people, the less
likely innovation is to spread.
Opinion leadership: The more opinion leaders are valued and
respected, the more likely an innovation is to spread.