INNOVATION STRATEGIES & MODELS

Presented by: Kamal Manwani (67)

Pranav Mohla (63) Nitin Singh (68) Nitin Sharma

Aman Sachdev

INDEXWhat is innovation Innovation Vs InventionTypes of InnovationInnovation levelsInnovation strategiesExample Innovation modelsBenefits of InnovationIssues 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

INNOVATIONis

Innovation and InventionInvention is the creation of new technology or process or

product first time either physically or conceptually. It’s 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. It’s the exploited version of that idea.

All innovations are inventions but not vice versa.

Innovation and Invention

Why Innovate?

Types of Innovation

Novel change

Minor change

Componentknowledge

Existing Novel component configuration

Types of Innovation

Product & Process InnovationOpen & Closed InnovationIncremental & Radical InnovationModular and Architectural Innovation

Types of Innovation: Product & Process Innovation

Types of InnovationOpen & Closed Innovation

Concept Development Implementation

PROJECT START

CONCEPT FROZEN

MARKETINTRODUCTION

Concept Development

Implementation

PROJECT START

CONCEPT FROZEN

MARKETINTRODUCTION

Open Model For Innovation

Closed Model For Innovation

Types of Innovation

Modular Innovation Change in Component Technology

Steam Engine of Car

Fuel Engine of Car

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.

Types of Innovation

Improving inherent processes/inputs to achieve higher output

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.

Types of Innovation

Architectural Innovation Change in Product Structure

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.

Types of Innovation

Displacing Existing Technology

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.

Innovation Levels

NATIONAL LEVEL

ENTERPRISE LEVEL

INDIVIDUAL LEVEL

Govt. Policies & support

Enterprise policies,

support & initiatives

Individual & group

innovation activities

Innovation Occurs at Three Levels

Innovation Strategies

Innovation Models

a) Drucker’s Modelb) Linear Modelc) Non Linear Model – Stephen Kline’s Chain Linked

Model d) Ralph Gomory circle modele) The holistic model of technological innovationf) Alic Branscomb’s modelg) Henderson-Clark Model

Drucker’S Model of Innovation

Innovation Process

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

Criticism Of Linear ModelIt 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&DR & 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 Kline’s Chain –Linked ModelIt 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

PotentialMarket

Invent/ produce analytic design

Detailed design &

test

Redesign & procedure

Distribute & market

Existing corpus of knowledge

RESEARCH

SECOND PATH

FIRST PATH

The Two PhasesInnovation process at firm’s 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

Feedback relations are generated : short feedback loops link 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

Problems identified by the processes of designing and testing new products and new processes often spawn research engineering disciplines & also in sciences.

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

Only when those sources of information fail to provide 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.

The Two Phases

Ralf Gomory’s Circle Model

New things come from science-step 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 Ladder ProcessCyclic development

Process

Two Phases1 2

The Holistic Model

Alic-Branscomb’s ModelInnovation 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 !