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An introduction to innovation and intrapreneurship Objectives. Understand the major challenges faced by companies when trying to implement innovation strategies.

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Presentation on theme: "An introduction to innovation and intrapreneurship Objectives. Understand the major challenges faced by companies when trying to implement innovation strategies."— Presentation transcript:

1 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.

2 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 years 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, youve 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, youve 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. Lets take a look inside the conference hall…

3 Welcome to the conference centre Your interactive personal digital assistant will help you find your way. A short welcome

4 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 look Opportunity Identification : Knowing how to look Creativity : Liberate Yourself and Your Organisation Organising for Innovation Evaluating Innovation Projects

5 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

6 What is innovation? What are the different types of innovation? These short exercises will open your eyes to what lies ahead. Discovery Exercise

7 Understanding what innovation is – and isnt. Carefully listen and then answer the question. The Dvorak keyboard was a successful innovation. True False Choose the best answer 1

8 Understanding what innovation is – and isnt. 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

9 Understanding what innovation is – and isnt. 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

10 Understanding what innovation is – and isnt. 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

11 Understanding what innovation is – and isnt. 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

12 Understanding what innovation is – and isnt. 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

13 Understanding what innovation is – and isnt. 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, its origins are quite different. In what sector did Nokia start? Lumber 4

14 Understanding what innovation is – and isnt. 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, its origins are quite different. In what sector did Nokia start? Lumber 4

15 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

16 What is innovation? More than you imagine….

17 What is innovation? Some definitions The introduction of something new Merriam-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 value Anonymous 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

18 What is innovation? The many faces of innovation ProductServiceProcess Types of innovation Degree of perceived newness Incremental Radical Transfor- mational Home Banking Improved check fraud devices Interest bearing checking Credit cards Required reserves Expert system based credit evaluation Electronic check routing Adoption of a common currency Insurance counseling

19 What is innovation? Built around three important business capabilities Customer problems Technological change Societal change 3000 1 INNOVATIVENESS

20 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

21 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

22 What is innovation? The points of view of companies today. Click to learn more about what various company executives have to say about innovation. Xxxxx President Enterpise XXX Innovation is a requirement ZZZZ President Enterpise ZZZZZ Innovation requires value creation YYYY President Enterpise YYYYY Innovativeness can be managed

23 The challenges of innovation Five important features of innovation It requires the effort of people Its hard work It cannot be mandated Innovative behaviors can be learned The speed of change determines appropriate innovation

24 The challenges of innovation The need for speed of innovation Rapidly changing environment Faster adoption rates SWIFTQUICKRAPID Speed is essential to capture value

25 The challenges of innovation But what if some innovation isnt valued by customers today ? Incremental Innovation Steady improvements Sustaining technologies Can be rapidly implemented Immediate gains Develops customer loyalty BUT May 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 todayValued by customers tomorrow

26 The challenges of innovation But what if some innovation isnt valued by customers today ? Hard drive capacity Year 5.25 drive capacity Capacity demanded for mini-computers 8 inch drive capacity Capacity demanded for PCs

27 The challenges of innovation The points of view of companies today. Click to learn more about what various company executives have to say about innovation. Xxxxx President Enterpise XXX Innovation is a requirement ZZZZ President Enterpise ZZZZZ Innovation requires value creation YYYY President Enterpise YYYYY Innovativeness can be managed

28 Active Reading When prompted, please click on the various parts of the screen.

29 An innovation system is composed of four separate subsystems. Click on each component to learn more. The innovation system

30 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 Strategy Where WhyHow

31 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 Processes Opportunity Identification Opportunity Selection Development & Testing Production & Launch Production & Launch Managing the Portfolio

32 Research and development feeds directly into innovation – but remember – it is only a part of the innovation system ! The innovation system Basic & Applied Research

33 Support structures and systems support the innovation processes, making them both more effective and efficient. The innovation system Innovation Support Structures and Systems Innovation Structures Innovation Measures Innovation Policies and Systems

34 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 exercise The innovation family tree INNOVATION Opportunity Necessity Values Change Invention Innovativeness Higher quality of life Higher living standard Directions : Place the elements from the right in the appropriate boxes of the innovation family tree.


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