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.
The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
The Roots of Innovation
1. Engineers Association of Rome
raffaele.vincenti2@gmail.com
Raffaele Vincenti – 2011
VP for Innovation
Innovation and New Technologies
The Roots of Innovation
2. The company in the society
In modern society, the entrepreneurial world
is a key driver for development and welfare
of individuals.
3. Each company makes sense if there are the
conditions to create a business.
The company in the society
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
12. The purpose of innovation
In the process of value creation the unifying
element must be found between:
ideas
technologies
economic results
Business
model
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. The four levels of innovation
Business model innovation
Technological innovation
Innovation in products and services
Business process innovation
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. The purpose of innovation
Give the opportunity to live an experience
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. The purpose of innovation
Experience in a market of products /
services increasingly undifferentiated
is the main competitive strength
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.
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. 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. 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. The purpose of innovation
The experience takes the consumer at the center
34. The purpose of innovation
In a world overcrowded by information
36. Our attention is directed towards those
phenomena that lead to interesting or
pleasant experiences
37. But how far have we come?
At what stage of progress are we?
38. How far have we come?
In every age some "enlightened" have believed
that we had reached the peak of knowledge.
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. 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. 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. 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. 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. 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. 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. The Internet will collapse catastrophically in 1996
(Robert Metcalfe, inventor of the Ethernet)
The shortsightedness of the greats of the past
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. We need a paradigm shift ...
But what we need?
49. If you do what you always did
you'll get what you always got.
Anthony Robbins
The why of change
50. … building on past successful experiences.
What we need?
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
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. Inductive approach to innovation
(starting from the specific problem)
Approach and skills
59. “What to do" is less important than
"how to do it"
(the effective approach drive to success)
Approach and skills
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. End of the presentation
Thanks for your attention
Raffaele Vincenti
raffaele.vincenti2@gmail.com
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