The document discusses various modern theories and approaches related to strategy and innovation. It describes three main theories: Blue Ocean versus Red Ocean, Disruptive Innovation, and Bottom of the Pyramid. It also discusses why good management can sometimes result in bad outcomes, citing five reasons. Finally, it briefly introduces the concept of innovation process management and disruptive innovation through new low-cost entrants.

1. Strategy and Innovation: New approaches
Frank de Langen

2. Interesting developments in strategy-thinking
• Small, smaller, smallest: from organizations towards makers
Blown to bits: Wurster& Evans, 1997; Makers movement:
Anderson, 2014
• Big data and AI: BISS
• Co-creation and networks: working with the customers
• Innovation as an aggressive strategy: subject of today.

3. Strategy and Innovation
a. Three modern theories:
1. Blue Ocean versus Red Ocean
2. Disruptive Innovation
3. Bottom of the Pyramid
b. Five reasons why good management
will result in bad outcomes
c. Innovatie-Procesmanagement

4. Red Ocean versus Blue Ocean
(figure: https://entrepreneurscan.com/blog/help-my-ocean-is-turning-red/)

5. Blue Ocean benadering
Value
Costs

7. Sorry………………………….

8. Disruptive
innovation
New entrants
offer a product
which is:
- less complex,
- a lower price
- Lower profit
margins
- Both non-
consumers
and
consumers at
the low side
of the market

9. 1980’s
2000’s
??
1973/1993

10. Bottom of the Pyramid: (C.K. Prahalad): Small
profits, Big Revenue

11. Foot replacement: an
example

12. Five reasons why good management will result in
bad outcomes:
• #1: Companies Depend on Customers and Investors for Resources
Expectations of customers and investors are driven by the past.
• #2: Small Markets Don’t Solve the Growth Needs of Large
Companies
Big companies need big profits.
• #3: Markets that Don’t Exist Can’t Be Analyzed
Big data drives big companies.
• #4: An Organization’s Capabilities Define Its Disabilities
People can change, but processes and cultures are based on
successes in the past.
• #5: Technology Supply May Not Equal Market Demand
Functionality and reliance may be inferior to ease of use and price.

13. Next presentation (in Dutch):
VPRO Tegenlicht Meet Up in
Heerlen:
‘De donut economie’
Dinsdag 17 april 2018, vanaf
19.30
Café Pelt, Pancratiusplein 48,
Heerlen