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Theories of Innovation


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Empatika Open on Theories of innovation

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Theories of Innovation

  1. 1. Theories of Innovation Bayram Annakov, App in the Air
  2. 2. Kondratiev
  3. 3. Shumpeter Economic cycles classification Entrepreneur vs capitalist Creative destruction
  4. 4. Gartner Hype Cycle
  5. 5. Mathematical proof
  6. 6. WTF??
  7. 7. Why? Bad managers? Bad luck? Good competitors?
  8. 8. Theories of Innovation Consumers Competitors Value Networks
  9. 9. Consumers
  10. 10. Overshot “I am not using even 50% of my device features”
  11. 11. Nonconsumers “I rent a car from airport to Convention Center”
  12. 12. 1. Incumbents protect their most profitable customers
  13. 13. Competitors
  14. 14. RPV framework Resources Processes Values
  15. 15. 2. Strengths are weaknesses are strengths :)
  16. 16. Value Networks
  17. 17. Incumbent Dealer Restaurant Traditional 100%50% Low End Disruptor 50% + hardware ?
  18. 18. 3. Disruptors should build new value networks
  19. 19. Recap Consumers Competitors Value Networks
  20. 20. Signals of Change
  21. 21. Customer Groups Identifier Nonconsumers People who lack the ability, wealth, or access to conveniently and easily accomplish and important job for themselves; they typically hire someone to do the job for them or cobble together a less-than-adequate solution Overshot customers Customers who stop paying for further improvements in performance that historically had merited attractive price premiums Consumers
  22. 22. Term Definition What to look for Resources Things company has access to - Tangible assets: technology, balance sheet, products, equipment, distribution network - Intangible assets: human capital, brands, accumulated knowledge Processes Ways of doing business - Difficult problems we know the company has repeatedly solved over time - Typical processes: hiring & training, product development, manufacturing, planning and budgeting, market research, resource allocation Competitors
  23. 23. Term Definition What to look for Values Prioritization determinant (motivation) - Way a company makes money (e.g. mix of sales revenue to postsales service revenue) - Cost structure/income statement - Size and growth expectations - History of investment decisions - what has been prioritised in the past Competitors
  24. 24. Choice What to look for Integration - If performance gap is present, i.e. product functionality & reliability is not yet good enough to address the needs of customers in a given tier of the market - Fewer design freedoms help to maximise what is technologically possible Modularization - the functionality and reliability of a product have become too good —> overshooting - “Commodity” perception - Performance surplus Value networks
  25. 25. But…