More Related Content Similar to Understand Innovation in 5 Minutes (20) More from Gordon Graham (6) Understand Innovation in 5 Minutes2. What can you learn from this?
• What innovation is
• Why it’s important
• The types of innovation
• The degrees of innovation
© Gordon Graham 2008
3. What is innovation?
Hundreds of similar definitions can be found
in the literature. Here is the one I use,
adapted from various sources:
“Innovation is the profitable implementation of
ideas.”
© Gordon Graham 2008
4. A Broad, American Perspective:
"Implementing new ideas that create value.”
- Innovation Network, U.S.A.
"The intersection of invention and insight, leading to
the creation of social and economic value."
- U.S. National Innovation Initiative
© Gordon Graham 2008
5. What about the Brits?
"The development of new ideas and their economic
application as new products or processes."
- U.K. Dept. Trade and Industry
© Gordon Graham 2008
6. An innovation can increase profits
on the value side (customers value
an innovation enough to pay more
for it) . . .
© Gordon Graham 2008
7. . . . or the cost side (the company
produces a product offering in a
more efficient way).
© Gordon Graham 2008
8. Either way, value is created for the
firm and the consumer.
$
© Gordon Graham 2008
9. What are the essential ingredients, or
elements, of an innovation
ecosystem?
*
* * *
** *
* *
*
© Gordon Graham 2008
10. There are many. They are rooted in national
culture and can take years to develop: Trust,
Curiosity, Tolerance of Diversity, Faith,
Confidence, Lack of Fear, the Will to a)
make the world a better place and b) wreck
the status quo c) take risks and fail.
© Gordon Graham 2008
11. Some firm-level elements include: a written
innovation strategy, a filter, an innovation
process, a rewards and recognition system,
humility, respect for seemingly insignificant
technologies/competitors (healthy paranoia)
etc.
© Gordon Graham 2008
12. An invention is different from an
innovation at any particular time in
that it doesn’t have commercial
value but . . .
© Gordon Graham 2008
13. . . . it may have in future.
© Gordon Graham 2008
14. Think of invention as the laying of
an egg, innovation as the laying,
incubation and hatching.
© Gordon Graham 2008
15. There is no shortage of ideas and
inventions in the world. The
challenge is to introduce these
successfully to a market.
© Gordon Graham 2008
16. Only then can the idea/invention be
called an innovation.
© Gordon Graham 2008
17. In other words, innovation requires
interplay between a product offering
(technology) and a market (people).
© Gordon Graham 2008
19. A market can be inside or outside
the firm’s physical walls.
© Gordon Graham 2008
25. Old strategies get replicated and,
consequently, margins get squeezed.
© Gordon Graham 2008
29. . . . but all these labels just describe
where something new, better or
different occurs.
© Gordon Graham 2008
31. Product
Process
Service
Business model
Value
Market
© Gordon Graham 2008
32. . . . and many more, depending on
level of detail. Basically, innovation
can occur anywhere in the firm’s
business by anyone. We all have
great potential!
© Gordon Graham 2008
33. Note!
There is another type that needs to be
considered separately. This is “disruptive
innovation,” a term first coined by Clayton
Christensen. Disruptive innovation refers to a
firm’s strategy relative to other firms. Often,
low-cost business models and “good enough”
solutions/products for low-end and/or non-
consumers
© Gordon Graham 2008
36. . . . however, they all describe the
degree of change required by the
innovating firm and/or the market.
© Gordon Graham 2008
41. Here’s a quote:
"He who innovates will have for his
enemies all those who are well off under the
existing order of things, and only
lukewarm supporters in those who might be
better off under the new."
Niccolo Machiaveli, The Prince
© Gordon Graham 2008
42. Thanks!
I completed an MSc dissertation on
Innovation in Taiwanese/Chinese
companies active in multiple international
markets. Please feel free to get in touch if
your firm is working in China, Taiwan
etc., as I’m interested in these areas.
Gordon@ westportwire.com
© Gordon Graham 2008