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MODULE 2 TYPES OF INNOVATION 1

MODULE 2 TYPES OF INNOVATION 1. DEFINITION OF INNOVATION Definition source: Innovation

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Text of MODULE 2 TYPES OF INNOVATION 1. DEFINITION OF INNOVATION Definition source: Innovation

  • MODULE 2

    TYPES OF INNOVATION1

  • DEFINITION OF INNOVATIONDefinition source:http://es.fpdgi.org/upload/projecte/aprender-a-emprenderesp.pdfInnovation is:

    The creation of new or improved knowledge with potential on implementation to business of the company, with positive impact and market acceptance.Keywords:new/improved knowledge, implementation to business.2

  • CONTENT3

  • Think ...simple4

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  • You're in a high street coffee shop (see pictures).Imagine a "Future coffee shop" , "Internet caf" or Cybercafe, based on new progress in IT.8

  • Internet cafLapcoffeeWi-Finetwork9

  • Business innovation involves a wide spectrum of original concepts, including development of: - new ways of doing business, - new business models, - business application of technology and communications, - new management techniques, environmental efficiency, - new forms of stakeholder participation, telecommunication, transport and finance.

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  • In some cases, the innovation rests not in the technology or product or service, but in the business model itself.It is much related to non-technological innovation and to innovative services.11

  • ... is the implementation of a new organisational method in the firms business practices, workplace organisation or external relations.12

  • Strategy innovation is about challenging existing industry methods of creating customer value in order to meet newly emerging customer needs, add additional value and create new markets and new customer groups for the sponsoring company.

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  • Why strategy innovation?speed, openness, flexibility, forward-focused thinking.

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  • In China, some doctors are paid monthly when their patients are healthy. If you are sick, its their fault, so you dont have to pay that month. Its their goal to get you healthy and keep you healthy so they can get paid.Doctor s arent paidDoctors are paidStrategy innovation example15

  • 16Toilet paper - example

  • A marketing innovation is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. OECD The OSLO ManualSocial media17

  • A product innovation is the introduction of a good or a service that is new or significantly improved with respect to its characteristics or intended uses.http://www.davison.com/creators/category/product-innovation/18

  • Types ofproduct innovation19

  • Exercise:Propose some idea to improve this product :20

  • Possible solution:21

  • A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software.22Example 1

  • 1913Cars were built individually by handCar mass productionFORD Assembly line Example 223

  • FORD Assembly line Principles:interchangeable parts;continuous flow;division of labor;reducing wasted effort. Benefits:increase of productivity;wage growth (from 2.5 $/h to 5.0 $/h);raise of company profit (from $30 ml. in 1914 to $60 ml. in 1916);attraction of best mechanics.New verb: to Fordize(to standardize in the interests of efficiency and mass production)24

  • Technology innovation: implemented technologically new products and processes and significant technological improvements in products and processes. Explosive technology Implosive technologyThe product or process should be new from the point of view of the firm that introduced it. 25

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  • Discussion 27Marketing or technology innovation ?

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  • The attitude to look beyond the current reality and become something we are not yet.

    There is no motivation without future vision, and without motivation there is no possibility to innovate, to undertake, to assume new risks.

    Having a future vision allows venturing to exercise our creative thought.Creative personality is made, not bornhttp://es.fpdgi.org/upload/projecte/aprender-a-emprenderesp.pdf29

  • Thank you!30

    Overview of types of innovation.**The definition of the innovation, agreed by ITP consortium.*The content of the presentation.**Free idea, brainstorming.*What business innovation involves: the marketing departement, the production, the process, the organization, strategy and last but not least technology.*Technology, product and process innovation are called TECHNOLOGICAL innovations.Organisational, marketing and strategy innovation are called NON-TECHNOLOGICAL innovations.*You're in a high street coffee shop. All around you people are having coffee:some are chatting with friends; others are using their mobile phone;few individuals seem to be working, reading the newspaper, scribbling notes etc.*Possible future coffee shop, based on Information Technology and Marketing innovation.It is not mandatory for the people to drink coffee and talking as they did in 1906; the variety of accents and languages, and the mix of races and sexes might be surprising.http://www.treehugger.com/urban-design/future-everything-will-be-coffee-shop.html

    Stephen Gordon argues that with the ever increasing availability of online goods and services, universities, book stores, retail shops, and offices will all shrink to the size of coffee shops.*Wide spectrum of development using business innovation.*Business innovation is core of all types of innovations.*New structure of the organisation is possible (virtual company, new distribution of project team.)**A new approach to strategy innovation*Strategy innovation is based on other vision of business.*Marketing innovation example toilet paper.*Social media improves the business. The 7th positive effects are:1- Increase communication with clients2- Drive traffic to your site3- Remind your prospects of your brand4- Improve of your Online Influence5- Reach the friends of your clients and prospects with your message6- Inform your audience in real time7- Increase your Search Engine Optimisation ranking

    *It is the most common type of innovation.*New products include the first MP3players on the market (Figure 1), cardiovascular stents, the digital camera, mobile/cell phone with a built-in digital camera and the first microwave oven Improved products include kinetic watches, new models of mobile/cell phones, flat screen TV and high definition TV.New services include 24 hour banking, online insurance brokerages, first dating services and music download services.Improved services include broadband internet, free minutes from telephone service providers and online banking addition of bill pay facilities

    *Product that is intended to be improved.*Useful storage space for bathroom items.*1. Example of process innovation based on significant changes in software presentation of an interior home design.*Example 2. Process innovation based on new technique and equipments.Ford's solution was to invent a moving industrial production line. By installing a moving belt in his factory, employees would be able to build cars one piece at a time, instead of one car at a time. This principle, called "division of labor," allowed workers to focus on doing one thing very well, rather than being responsible for a number of tasks.

    *Example 2. Process innovation based on new technique and equipments.Ford's solution was to invent a moving industrial production line. By installing a moving belt in his factory, employees would be able to build cars one piece at a time, instead of one car at a time. This principle, called "division of labor," allowed workers to focus on doing one thing very well, rather than being responsible for a number of tasks.

    *There are two types of technology innovation:implosive technology, in other words technology which enriches domains (eg. microelectronics, composite materials, chemical analysis, genetic manipulation);explosive technology, in other words technology which expands domains, (eg. Space research, deep-sea exploration.

    *Technology innovation based on Human-Computer interaction.**Starting with the creation of the creative climate, the company progresses using innovation triangle elements: creativity, R&D, innovative elements of the external environment.*We can improve creativity, we can motivate the persons to innovate.*Think new, motivated, creative and be so innovative!