2. Sources of Innovation (1)
Where do innovations come from?
• Shocks to the system
• Accidents
• Watching others
• Recombinant innovation (ideas/applications in one world
transferred to a new context)
• Regulation
• Advertising
• Inspiration
• Knowledge Push
• Design drive innovation
3. Sources of Innovation (2)
• Design drive innovation
• Need Pull
• Users as innovators
• Exploring alternative future and opening up different
possibilities
4. Knowledge Push
• Emerge as a result of scientific research
https://www.youtube.com/watch?v=g90WC4o8hwg
5. Need Pull
• ‘necessity is the Mother of invention’
• Innovation management – develop clear understanding of
needs – find ways to meet those needs
8. Need Pull - Whose needs?
• Need to recognise differences among users
• Working at the fringes of a mainstream market
• ‘Disruptive Innovation’ – focus attention on the need to look
for needs which are not being met, or poorly met…
• For example, low cost airlines
9. Disruptive Innovation (Christensen and
Overdorf, 2000)
• Disruptive innovations create - new market(s) through the
introduction of new kind of products or services, for
example, home PCs
• Disruptive innovations occur so intermittently that no
company has a routine process for handling them
• ‘one of the bittersweet results of success is that, as
companies become large, they lose the ability to enter small,
emerging markets’.
11. Emerging Markets
• ‘bottom of the pyramid’ markets
• Solutions to meet needs – need to be highly innovative
12. Users as Innovators
• ‘Lead users’ are ahead of the market in terms of innovation
needs
• Example, mi-adidas – users are encouraged to co-create
their own shoes.
• Crowd funding: https://www.indiegogo.com/projects/flow-
hive-honey-on-tap-directly-from-your-beehive#/
13. Watching Others
• Copy and develop
• Benchmarking
Example – Aravind Eye Hospitals and McDonalds
• https://www.youtube.com/watch?v=3cjnNPua7Ag
15. Innovators DNA (Dyer et al 2009)
Apple’s Steve Jobs, Amazon’s Jeff Bezose, Bay’s Pierre
Omidyar, and Alibaba’s Jack Ma
How do these people come up with ground breaking new
ideas?
17. Innovators DNA (Dyer et al 2009)
• Discovery Skill 1: Associating
the ability to successfully connect seemingly unrelated
questions, problems, or ideas from different fields - it is central
to the innovator’s DNA
• Discovery Skill 2: Questioning
Ratan Tata puts it, ‘question the unquestionable’
‘They get a kick out of screwing up the status quo,’ Meg
Whitman, CEO of eBay
• Ask ‘Why?’ and ‘Why not?’ and ‘What if?’
• Imagine opposites
• Embrace constraints
18. Innovators DNA (Dyer et al 2009)
• Discovery Skill 3: Observing
‘Why do they do that? That doesn’t make sense.’
Ratan Tata observed the plight of a family of four packed onto
a single motorised scooter – result is a $2,500 Nano
19. Innovators DNA (Dyer et al 2009)
• Discovery Skill 4: Experimenting
Research by Dyer et al (2009) revealed ‘that the more
countries a person has lived in, the more likely he or she is to
leverage that experience to deliver innovative products,
processes, or businesses’
• Discovery Skill 5: Networking
Devoting time and energy to finding and testing ideas through
a network of diverse individuals
21. A Map of Innovation Search Space (2)
Left hand side –
Zone 1 (Exploit):
Search routines are associated with working with key suppliers,
getting closer to customers, and build alliances to deliver
innovations
Zone 2 (Exploration):
Pushing the frontiers but, within an established framework.
22. A Map of Innovation Search Space (3)
Right hand side –
Zone 3 (Reframe):
New business models – for example, fringe markets or bottom
of the pyramid, low cost airlines reframing the business model
Zone 4 (Co-evolve):
‘fluid state’ before the design/pattern emerges
Be in there, be in there early, and be in there actively
24. Assignment Review
- Choose an organisation
Think wisely with regards to choosing the ‘right’ organisation; review CW2 –
CW1 is linked to CW2; the extent to which you are able to gather relevant
information; also the sector/market within which it operates…. Does it offer
you space to research and demonstrate sound debate?
- Innovation history
Use relevant models to show – where the innovations have come from; 4Ps;
what are they? In detail. How do they achieve? The position they have in the
market? (macro and competitive - industry) use appendices to show the
relevance.
25. Assignment Review
- Present level of innovation activities
- Currently, the progress as compared to the industry and competitors?
AGAIN link to previous analyses. (include upstream and downstream
activities)
- Future requirements
- Given the macro and competitive analyses, what are the future
requirements for your organisation?
