2. Defining the Innovation …..
The creativity is an essential building block for innovation. The other
said: “the innovation equalling creativity plus (successful)
implementation” (Henry 1991; von Stomm, 2003).
The innovation is a process of
transforming the new ideas, new
knowledge into new products and
services (McDaniel, 2002: 57-58;
Gadaf, and Veland, 2013):
The innovation as a process by which a novel idea is brought to the
stage where it eventually produces money. It is a dynamic technical,
economic and social process involving the interaction of people
coming from different horizons, with different perspectives and
different motivations (Lionnet, 2003: 6; Gadaf and Veland, 2013).
3. The innovations as a process of creating a new product or service,
new technologic process, new organization, or enhancement of existing
product or service, existing technologic process and existing
organization (Ramadani and Gerguri, 2011: 8; Shqipe, Gadaf, and
Veland, 2013).
The innovation as the successful
exploitation of new ideas and it is
central to meeting this challenge; it
involves investments in new products,
processes or services and in new ways of
doing business (Department of Trade and
Industry (2003, p.18; Shqipe, Gadaf, and
Veland, 2013)
Defining the Innovation …..
4. Defining the
Innovation
Innovation is an idea, practice, or object that is considered
new by an individual one another adoption unit (Rogers, in
Suwarno (2008: 3) .
The innovation may be a new
product or service, a new
production process technology,
system structure and a new
administration or a new plan for
members of the organization
(Damanpour, in Suwarno, 2008: 3).
5. INNOVATION
=
Idea generation + Concept Development +
Implementation + Exploitation
Creativity and innovation involve the creation of something new which
is central to the organization. Innovation is considered an imperative for
organizational survival. The approach of organizations should be to
constantly rethink the product portfolio, the supply chain, the marketing,
the distribution, the pricing, the services and so on. Innovation is the
creation, recognition and accomplishment of new thoughts,
processes, products or services it is the process of developing
them into practical use (Aggarwal and Bhatia , 2011).
Defining the
Innovation
6. The A Process of
Innovation
Resource: Prof. Martin Binks, Dr Simon Mosey, Paul Kirkham, 2014.
Need
Problem
Opportunity
Innovation
Improvement
Exploitation
CONCEPT
Define
Discover
Determine
Develope
Design
Deploy
Pre-concept relevance determines
the quality of ideas generated
Pre-concept relevance determines
the extent to which the potential of
new ideas is realised
Successful
innovation depends
upon the quality
of the concept.
The ingenuity
guide for clear
thinking optimises
the prospects of
success by applying
creative thinking
at the heart of and
throughout the
innovation process
Cost
Income
7. The Aspects of the
Innovation
• The aspect of customers: innovation means
products with better quality and better services,
which together mean a better way of life.
• The aspect of businesses: innovation means
sustainable growth and development,
realization of great profit.
• The aspect of the employees: innovation
means new and more interesting job, which
requires more mental faculty, which results in
higher salaries.
• The aspect of whole economy: innovation
represents a bigger productivity and prosperity
for all.
9. Tipe Inovasi Karakteristik
Inovasi Produk Produk, jasa, atau kombinasi keduanya yang sifatnya baru
Inovasi Proses Metode atau cara baru dalam menjalankan kegiatan yang
memiliki nilai tambah (added value), misalnya, pola distribusi
atau produksi hingga menghasilkan produk yang lebih baik
dan lebih murah
Inovasi
Organisasional
Metode atau cara baru dalam hal pengelolaan (managing),
pengorganisasian (organizing), dan mengawasi (controlling)
pegawai, kegiatan, dan pelaksanaan tugas dan tanggung
jawab.
Inovasi Bisnis Inovasi yang berkaitan dengan kombinasi perancangan
produk, proses, dan sistem organisasional yang baru, yang
lazim disebut business model.
Sumber: Radenakers (2005)
10. Competing againts Time
Time has been defined as “an essential aspect of strategy”. Time becomes a factor or
fundamental strategic actor, and firms have the not so easy and ambitious task of “competing
against time” .
• Philosophy of value added production: continually improve any function that produces
value added by impacting production and the delivery of the product to the customer
• Reduction in the complexity of the organizational system: seek simplicity by reducing
codes, standardizing parts, modularizing, and simplify-ing production processes
• Global vision of the process: make the process more streamlined and fluid by eliminating
“waste”; that is, those activities that do not add value to the product
• Incremental improvement in products: anticipating and incrementally achieving product
improvements
• Interconnected information systems: design and set up information systems that guarantee
the immediate circulation and use of information
• Partnerships with suppliers: undertake long-term relationships with suppliers based on trust
and reliability
• Decentralize decision-making: decentralize decision-making to eliminate wasting time for
authorization requests
• Sharing of values and learning organization: involve and give responsibility to collaborators
at all organizational levels
11. Resource: Jane Henry (1991; von Stomm, 2003)
The Innovation and
Competitive Advantage
• A strong relationship between market performance
and new products.
• New products help maintain market shares and
improve profitability.
• Growth also by means of non-price factors (design,
quality, individualization, etc.).
• Ability to substitute outdated products (shortening
product lifecycles).
• Innovation of processes that lead to production time
shortening and speed up new product development
in comparison to competitors.
According to Tidd et al. (2006; Hana, 2013) innovation contributes to achieving a
competitive advantage in several aspects. The most important characteristics of
innovations include:
12. Time-Based Competition
Resource: Yahya, 2014.
“When a time-base competing can
open up response advantage with
turn-around time tahree or four
times faster than its competitor, it
will almost always grow three
times faster than the average for
the industry and will be twice as
profitable as the average for all
competitors”.
Geogre Stalk, Competing againts Time, 1990.
George Stalk
13. Interrelation among Competition,
Innovation, and Globalization
GLOBALI
ZATION
INNOVA
TION
COMPET
ITION
The competition could drive
globalization (Hamel and
Prhalad, 1985).
The competition is a key
driver for competitive
advantages and be a driver
for innovation (Yeung,
1999)).
The impact of
innovation-based
view on global
strategy (Soliman,
2013)
14. Competing againts Time
Time-Base Advantage
Resource: Yahya, 2014.
Higher effiency
Higher producitivity
Lower overhead
Faster inventory
Capital turn over
Lower cost
Greater product range
Faster availability of product to
customer
Higher price
premium
New segments
of market
Larger market
share
Higher Profitability
15. The Activity in Several
Steps to Innovation
a.
a.
b.
b.
c.
d.
e.
Type of
Innovation
Type of
Competitive
Advantage
INOVASI
DAYA
SAING
16. The Activity in Several
Steps to Innovation
• Introducing a new product and service: the entrepreneur should produce and
introduce a new product which can be easily sold and which is not offered in the
market;
• Introducing a new method of production: innovation should offer a new scheme
of production which through existing inputs can lead to an increased output,
decrease of costs per unit product, introduction of new inputs and change of
existing ones;
• Opening new markets: innovations can increase the sell in new regions, and also
increase the number of customers;
• Finding of appropriate sources of raw materials: The raw material supplier can
often lower raw materials’ quality or increase their price and this directly influences
over the quality and the selling price of the new product;
• Establishing a new organization in the industry: creating conditions through
which the entrepreneur would take the monopoly position in the market.
Schumpeter divides this activity in several steps (McDaniel, 2002: 57-58; Shqipe,
Gadaf, and Veland, 2013):
19. PLUS …
• Focus on customer
satisfaction
• High level of
employee dedication
20.
21. • There are thousands of
coffeehouses in the
United States and coffee
is one of the most
commonly traded
commodities in the
world. Why is there
only one Starbucks?
(In 2010, Starbucks did $5.3B in
sales. It has more than 8,500
locations in 30 countries)
22. Efficient scale
Standardization
Design for low production
cost
Control of overheads and R
& D
Quality
Innovation
Design
Credibility
Brand name
Reputation
Environmental posture
Customer service
Integrated services
Differentiation
Cost Leadership
