This document discusses identifying innovative ideas and approaches to innovation. It begins by outlining the role of ideas in the current globalized economy. It then distinguishes between invention, discovery, and innovation. The document discusses the ideation process and sources of innovative ideas, including changes in population, economics, education and culture. It also discusses different business models for innovation, including those driven by technology, costs, or relationships. The document notes the importance of addressing legal issues like intellectual property protection. It concludes that idea-driven companies need careful planning to balance experience and creativity while promoting the highest value creation with the fewest resources.

1. Identification of Idea and
Approach
Venkatesh Sarvasiddhi

2. Agenda
• Role of Ideas in the New Context
• Invention and Innovation
• Ideation Process
• Sources of Innovative Ideas
• The Marketing Angle
• Approach: Pursuit of Innovation
• Various Business Models
• Legal Issues and IP Protection
• Concluding Remarks
• References

3. Role of Ideas in the New Context
• Globalized Economy
• Sources of Competitive Advantage
• Changing Needs of the Customers
• Entry of Competitors and Substitute Products
• Adaptive Nature of Organizations
• Organic and Inorganic Growth
• Technology for Growth and Survival

4. Invention and Innovation
• Discovery vs. Invention vs. Innovation
• Newton discovered gravity
• A.G. Bell invented telephone or Edison
invented light bulb
• “Desh” Deshpande innovated about optical
routers
• Innovation has an inherent “market” or
“customer” element in it

5. Invention and Innovation……
• Common Sense definition of innovation – new, high-tech,
novel
• An innovative product/service makes a leap in the benefit-
to-cost ratio in some area of endeavor
• Costs – money, difficulty, physical risk, inconvenience
• Benefits – monetary, pleasure, health, fun
• Optical Communications – Speed vs cost
• Flexible Manufacturing System – choice vs cost
• Web-enabled processes – customer satisfaction vs cost

6. Invention and Innovation……
• Management innovation – JIT inventory
• Branding innovation – Starbucks coffee joints
• Marketing innovation – Frequent flier programs
• Pricing innovation – Low budget airlines
• Productivity innovation – Assembly line
KEY
Find gaps in market created as a result of
change in values, perceptions, attitudes,
demographics

7. Invention and Innovation……
• Ready-made food packets, fast-food chains
• Installment buying
• Insurance
• Limited liability companies
• Patents
• Futures and Options (Derivative instruments)

8. Ideation Process
• Rational or Creative -- Left Brain or
Right Brain
• Does experience matter?
• Louis Pasteur: Fortune favours the
prepared mind
• Role of the environment and the
ecosystem
• Disruptive vs Incremental

9. Ideation Process ….
• Periods of Paradigm Changes
– Rules of the game change
– Scale, size, incumbency does not matter
• Microsoft
• Cisco
• Infosys
• Counterexample: Google

10. Sources of Innovative Ideas
• Hitting innovative ideas is a systematic,
organized, rational work usually done in many
stages – analyze, design experiments, run pilot,
collect data, analyze
• Treat change as opportunity, look for new
realities and incongruity between people’s
perception of the reality and what has become
actual reality

11. Sources of Innovative Ideas
• Population – size, age distribution
• Economic class and income distribution
• Educational status
• Cultural preferences
• Rural-Urban shift

12. Sources of Innovative Ideas …..
Core Technologies
Enabling Technologies
Peripheral Technologies
DSP, Routing Algorithms
Processors, ASICS, FPGAs
Packaging, Display, Battery

13. The Marketing Angle
• Features depend on the stage
• Quartz Watch, Mobile Phone, Palmtops
• USP – Unique Selling Proposition
• Differentiator – Unfair advantage
• Mindshare – recognition, recall

14. Approach: Pursuit of Innovation
• Identifying the right business model
• Story – a drama with clearly delineated
characters and their plausible behaviour
• Revenue Model
• What drives the prices and costs
• Path to profitability
• Insight -> Business Model -> Enterprise

15. Various Business Models
• Concept of a value chain
• Raw Material, Production, Distribution, Retailing,
Consumption
• Concept, Design, Detailing, Implementation, Validation,
Delivery, Usage
• Value Creation, Value Delivery and Value Extraction
 High Tech, IP Driven – features, performance
 Cost Driven, Operating Efficiency
 Relationship, Customer Franchise, Branding

16. Legal Issues and IP Protection
• Patents, Copyrights, Trademarks, Design
Registration
• IP Protection Costs
• IP Violation / Infringement
• Financing implications – Catch 22
• Intangible Assets and Valuation

17. Concluding Remarks
• Idea-driven companies need to be promoted
• Highest value creation with least resource inputs
• Need careful planning and addressing of ALL issues
• Right balance between experience and creativity,
left and right brain thinking
• Approach is as important as the Idea

18. References
1. Peter Drucker – Innovation and Entrepreneurship: Practices
and Principles
2. Clayton M. Cristensen – The Innovator’s Dilemma
3. Robert D. Hisrich and Michael Peters – Entrepreneurship
4. James Collins and Jerry Porras – Built to Last
5. Gary Hamel and C.K. Prahalad – Competing for the Future

19. Thank You !!
Questions ?