1. 5 Summary Innovation Strategies
There’s a better way to do it. Find it!
Thomas Edison
Summary
How can an entrepreneur build an effective strategy based on innovation that will lead to a sound technology venture?
An innovation strategy is structured to effectively commercialize new products and services for its customers. Using an idealized model of a window of opportunity, the entrepreneur can decide when to act. The entrepreneur needs to maintain a sense of urgency but avoid being too early or too late to market. Entrepreneurs establish and build a network of partners who work with them to achieve the new venture’s goals.
Chapter 5: Summary
Technology Ventures: From Idea to Enterprise

2. 5 Innovation Strategies Emergent industries:
Newly created or newly recreated industries formed by product, customer, or context changes [Barney 2002].
Chapter 5: Concept
Technology Ventures: From Idea to Enterprise

3. 5 Innovation Strategies
Three Types of Industries and Their Characteristics
Chapter 5: Table 5.1
Technology Ventures: From Idea to Enterprise

4. 5 Innovation Strategies
First Mover Potential Advantages and Disadvantages
Chapter 5: Table 5.2
Technology Ventures: From Idea to Enterprise

5. 5 Innovation Strategies
Creativity is the ability to use the imagination to develop new ideas, new things, or new solutions.
Six Resources for A Creative Enterprise
Knowledge in the Required Domain and Fields — knowing what is new
Intellectual Abilities to recognize connections, redefine problems and envision and analyze possible practical ideas and solutions
Inventive Thinking about the problem in novel ways
Motivation towards Action
Opportunity Oriented Personality and Openness to Change
Contextual Understanding that supports creativity and mitigates risks
Chapter 5: Table 5.3
Technology Ventures: From Idea to Enterprise

6. 5 Innovation Strategies Creativity Process Describe The Problem Start
Reframe and Start Again
Build a Prototype
and Show It to the Customer
Incubation Period: Observe and
Study the Problem
Evaluate
and
Test the Ideas
Intuitive Thinking,
Brainstorming
Insights, Ideas,
Inventive Thinking
Chapter 5: Figure 5.3
Technology Ventures: From Idea to Enterprise

7. Types and sources of innovation
Innovation Strategies 5
Types and sources of innovation
Basic design concepts
Chapter 5: Figure 5.4 – Four types of innovation
Technology Ventures: From Idea to Enterprise

8. 5 Innovation Strategies
Importance reflects the magnitude of the economic value of an invention.
Radicalness measures the degree to which an invention, regardless of economic value, differs from previous inventions in the field.
Patent scope describes the breadth of intellectual property protection for the invention.
Chapter 5: concept
Technology Ventures: From Idea to Enterprise

9. 5 Innovation Strategies
The Factors that Influence the Entrepreneur to Exploit An Independent Invention
1. The Business Interests, Capabilities, and Experiences of the Entrepreneurial Team
2. The Characteristics of the Industry in Which the Invention Will Be Exploited
3. The Characteristics of the Invention
a. Importance of the invention — Economic value and potential payoff
b. Radicalness of the invention — differentiation of the invention from its predecessors
c. The breadth of patent protection of the intellectual property
Chapter 5: Table 5.4
Technology Ventures: From Idea to Enterprise

10. 5 Innovation Strategies
The New Business Formation Process for an Invention
Chapter 5: Figure 5.6
Technology Ventures: From Idea to Enterprise

11. 5 Innovation Strategies
Disruptive or radical innovations introduce a set of attributes to a marketplace different than the ones that mainstream customers historically have valued, and the products often initially perform unfavorably along one or two dimensions of performance that are particularly important to those customers.
The Expected Trajectory of a Disruptive Innovation
High
Range of performance required in the mainstream market
Performance
Expected Trajectory
Current performance of the innovation
Low
Now
Time
Chapter 5: Figure 5.7
Technology Ventures: From Idea to Enterprise

12. 5 Innovation Strategies
The Elements of An Attractive Innovation Strategy
A well defined customer
A key customer benefit that is measurable in dollars
Short period until economic payback and positive cash flow
A high benefit to price ratio for the customer
A proprietary advantage that can be maintained or defended
The core competencies required to exploit the new technology are present or available to the new venture
Access to the necessary resources
Chapter 5: Table 5.5
Technology Ventures: From Idea to Enterprise

13. 5 Innovation Strategies
Technology Factors
Feasibility
Performance
Manufacturability
Business Model
Vision
Target Market
Value Proposition
Strategy
Industry and Competitor Analysis
Expected Competitive Advantage
The four steps to achieve a favorable technology innovation.
Expected Economic Results
Revenue
Profitability
Return on Capital
Time to Profitability
Chapter 5: Figure 5.8
Technology Ventures: From Idea to Enterprise

14. 5 Innovation Strategies
Complement: A complement to a product is any other product that makes the first one more attractive to the customer.
The Value Network
Customers
Competitors
The New Venture
Complementors
Suppliers
Chapter 5: Figure 5.10
Technology Ventures: From Idea to Enterprise

15. 5 Innovation Strategies
An innovation strategy builds on creativity, invention, and technologies, acting within a value network, to effectively commercialize new products and services for its customers.
Chapter 5: Principle
Technology Ventures: From Idea to Enterprise

16. 5 Innovation Strategies
Many people expect a car with a hydrogen fuel cell will be common within 10 years. Use table 5.5 and figure 5.1 to describe the potential for fuel cell vehicles.
Chapter 5: Exercise
Technology Ventures: From Idea to Enterprise

17. Innovation Strategies5
VENTURE CHALLENGE
Describe your venture in terms of timing of entry as illustrated by figure 5.1
Create a value network for your company as outlined in figure 5.3.
Create a partnership strategy as discussed in section 5.4.
Summarize your technology and innovation strategy.
Chapter 5: Venture Challenge
Technology Ventures: From Idea to Enterprise

18. 5 DVD Video “Two Weird Ideas That Work”
Innovation Strategies 5
DVD Video
“Two Weird Ideas That Work”
Bob Sutton (Stanford University)
Chapter 5: DVD Video
Technology Ventures: From Idea to Enterprise