The Roots of Innovation

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This is the presentation I used to start the 2011 activities of the CIET commission
(Innovation & New Tech) at the Engineers Association of Rome.
I explored the roots of innovation explaining its purpose in any organization.
The definition of business model is essential to pursue innovation and to do that it is important to understand what exactly is and which is the underlying philosophy.
The real aim of design in any successful product or service is highlighted and explained as well.

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The Roots of Innovation

  1. 1. Engineers Association of Rome raffaele.vincenti2@gmail.com Raffaele Vincenti – 2011 VP for Innovation Innovation and New Technologies The Roots of Innovation
  2. 2. The company in the society In modern society, the entrepreneurial world is a key driver for development and welfare of individuals.
  3. 3. Each company makes sense if there are the conditions to create a business. The company in the society
  4. 4. Business definition A business is characterized by three elements: • The customers served • The needs of customers to satisfy • The technology (or know-how) used
  5. 5. The business pillars BUSINESS INNOVATION MARKETING Peter Drucker
  6. 6. Vision Innovation is a key for the progress of society ...
  7. 7. Vision ... and it is essential to define the business strategy.
  8. 8. Vision Implement, promote and support innovation is an indispensable task for a society that wants to pursue freedom, prosperity and growth.
  9. 9. What is innovation? Transformation of knowledge into money
  10. 10. What is not? RESEARCH Transformation of money into knowledge
  11. 11. The purpose of innovation Value creation
  12. 12. The purpose of innovation In the process of value creation the unifying element must be found between:  ideas  technologies  economic results Business model
  13. 13. Business Model ORGANIZATION Business initiative Potential Value A business model explains how, through a business initiative, an organization translates its potential into value.
  14. 14. Specify a value proposition or better still What is the value for users? Purpose of a business model
  15. 15. Identify a market segment or better still Who are the potential users? Purpose of a business model
  16. 16. Identify the value chain or better still Starting from the raw material to get to the end customer Purpose of a business model
  17. 17. Describes the organization's position in the value chain and identifies the complementary activities Purpose of a business model
  18. 18. Specifies the mechanism of profit creation given the cost and profit margins Purpose of a business model
  19. 19. Identifies a competitive strategy to achieve and maintain a competitive advantage over the competition Purpose of a business model
  20. 20. Business model creation Problem definition Solution (product/service) Value proposition Construction of a scenario Identification of enabling technologies Strategic alliances Identification of complementary assets Business Model Innovation Source: (c) 2011 Alberto Di Minin www.diminin.it - Business Model Innovation
  21. 21. Structure of a business model WHOHOW WHAT HOW MUCH Activity Perspective Product/Service Customers Perspective Financial Perspective Strategic Partners Key Activities Key resources Customers Relation Distribution channels Customers segment Costs Profits Value proposition Source: (c) 2011 Alberto Di Minin www.diminin.it - Business Model Innovation
  22. 22. The four levels of innovation Business model innovation Technological innovation Innovation in products and services Business process innovation
  23. 23. The added value of a product is less and less related to the size of performance and more to the ability to evoke unique experiences The purpose of innovation
  24. 24. The purpose of innovation Give the opportunity to live an experience
  25. 25. The purpose of innovation Samsung LE37B650 :TV LCD, 37“, widescreen, full HD LG 37LH400 :TV LCD, 37“, widescreen, full HD Bravia 37W5500:TV LCD, 37“, widescreen, full HD Ford Fiesta: segmento B, diesel, 1300cc, euro 4 FAP, Esp Fiat Punto: diesel, 1300cc, euro 4 FAP, Esp Opel Corsa: diesel, 1300cc, euro 4 FAP, Esp HP PavilionS3560: 1.6 GHz Intel Pentium Dual-Core, Ram 2 GB, 160 GB hard disk Acer Aspire IE-3214 : 1.6 GHz Intel Pentium Dual-Core, Ram 2 GB, 160 GB hard disk Dell Vostro 410 : 1.6 GHz Intel Pentium Dual-Core, Ram 2 GB, 160 GB hard disk
  26. 26. The purpose of innovation Experience in a market of products / services increasingly undifferentiated is the main competitive strength
  27. 27. The purpose of innovation The experience associated with a product or a service: • justifies the price paid by the consumer; • engages the customers; • creates word of mouth.
  28. 28. The designed experience
  29. 29. The designed experience Experience becomes the new design paradigm
  30. 30. The designed experience The focus of the purchase process moves from the possession of the product to the experience enabled by the product
  31. 31. The economic value moves toward the experience Value Raw materials Goods Services Experiences Casual experience Predictable experience Designed experience • inconsistent • unaware • consistent • aware • undifferentiated • consistent • aware • differentiated Level of customization
  32. 32. Experience as progressive product customization Price definition Enanced (premium price) From the market undifferentiated differentiated Competitive positioning Customers needs Relevant to the customers Irrelevant to the customers Raw material extraction Products manufacture Services delivery Access to the experience Customization Customization Massification Massification
  33. 33. The purpose of innovation The experience takes the consumer at the center
  34. 34. The purpose of innovation In a world overcrowded by information
  35. 35. are effective only those that capture our attention
  36. 36. Our attention is directed towards those phenomena that lead to interesting or pleasant experiences
  37. 37. But how far have we come? At what stage of progress are we?
  38. 38. How far have we come? In every age some "enlightened" have believed that we had reached the peak of knowledge.
  39. 39. The shortsightedness of the greats of the past The cinema is an invention without a future. (Antoine Lumière - father of the brothers who invented the cinema – 1895)
  40. 40. Americans need the telephone, not us: we have many kids who act as messengers. (Sir William Preece, British Post Office Director – 1876) The shortsightedness of the greats of the past
  41. 41. The shortsightedness of the greats of the past This 'telephone' has too many shortcomings to be seriously considered as a means of communication and has no value to us. (Internal note of the Western Union Telegraphs - 1876)
  42. 42. Flying machines heavier than air? Impossible! (Lord Kelvin, member of the Royal Society of Science - 1895). The shortsightedness of the greats of the past
  43. 43. Everything that can be invented has already been invented (Charles H.Duell, Commissioner, US Office of Patents - 1899) The shortsightedness of the greats of the past
  44. 44. I think there is a world market for ... mah I would say 5 computers (Thomas Watson, IBM - 1943) The shortsightedness of the greats of the past
  45. 45. There is no reason for people to have a PC at home (Ken Olson, Digital Equipment Corporation - 1977) The shortsightedness of the greats of the past
  46. 46. The Internet will collapse catastrophically in 1996 (Robert Metcalfe, inventor of the Ethernet) The shortsightedness of the greats of the past
  47. 47. Reading the opinions of the past today we sense that there is still much to be invented But how far have we come?
  48. 48. We need a paradigm shift ... But what we need?
  49. 49. If you do what you always did you'll get what you always got. Anthony Robbins The why of change
  50. 50. … building on past successful experiences. What we need?
  51. 51. Approach to innovation The approach to the development of products/services of success should give equal importance to the following three aspects: • ability to meet real needs  People • economic sustainability of the offer  Business • potential of technology  Technology
  52. 52. Approach to innovation Business (sustainable) People (desirable) Technology (possible) DESIGN
  53. 53. Design comes back to play a central role in innovation. The design should create experiences and not only products.
  54. 54. The experience is the emotional and cognitive relationship of oneself in the world and occurs in a context. Innovation design oriented
  55. 55. Approach and skills Economic Humanistic Technical Innovation is characterized by a multidisciplinary mix of expertise.
  56. 56. Approach and skills Economic Humanistic Technical The skills do not fall exclusively in the sphere of the designer but become a company asset.
  57. 57. Approach and skills Economic Humanistic Technical The approach is based on observation of reality and the search for concrete and effective solutions to the problem.
  58. 58. Inductive approach to innovation (starting from the specific problem) Approach and skills
  59. 59. “What to do" is less important than "how to do it" (the effective approach drive to success) Approach and skills
  60. 60. Communicating through prototypes (a more effective way of promoting an idea) Approach and skills
  61. 61. Look around to get inspiration (gather elements to get creative ideas) Approach and skills
  62. 62. Leave space to the randomness (an innovative idea can be born by chance) Approach and skills
  63. 63. Changing mindset Overcoming the individual vision
  64. 64. The key element KNOWLEDGE CREATIVITY Sir Ken Robinson
  65. 65. The wrong slogan KNOWLEDGE IS POWER KNOWLEDGE IS JUST POTENTIAL Albert Einstein
  66. 66. The slogan ACTION IS POWER
  67. 67. The tactic READY, AIM … FIRE! READY, FIRE … AIM!
  68. 68. Identify the context HUMAN BEING ENVIRONMENT KNOWLEDGE PSICHOLOGY INSTITUTIONS COMPANIES FINANCE MARKETPLACE
  69. 69. The alchemy of success
  70. 70. The power of psychology Napoleon Hill
  71. 71. Would you ever have believed it? They did! The power of psychology
  72. 72. The intuition We can accomplish all that our mind can conceive. Just want it… … and be ready to pay the price.
  73. 73. The target Results
  74. 74. The phylosophy Consistent focus Massive action
  75. 75. Mission Promote the implementation of innovation at strategic and tactical levels and the spread of its culture, supporting it for the benefit of society through the professionalism and the value that engineers can provide in their different areas of specialization.
  76. 76. End of the presentation Thanks for your attention Raffaele Vincenti raffaele.vincenti2@gmail.com
  77. 77. References • Peter Drucker – Innovation and Entrepreneurship • Alberto Di Minin (Scuola Superiore S. Anna) – Business Model Innovation • Andrea Granelli (Kanso) - Innovation Lab 2010 • Guy Kawasaki – The Art of the Start • Anthony Robbins – Unlimited Power • Napoleon Hill – Think and Grow Rich

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