2. Agenda
2
What is Innovation?
Why is Innovation Important?
How Behavior Effects Innovation
Desire
Emotion
Knowledge
Business Model Innovation
3. What is Innovation?
• Innovation is not a singular event or activity, it is a chain of events & the process of taking ideas to
reality.
• Innovation is not always something new but could be fresh ideas on products, process, and
technology.
• Innovation is a process through which economic or social value is extracted from knowledge—
through the creation, diffusion, and transformation of ideas—to produce new or improved
products, services, or processes.
• Although closely related, the concept of innovation is sometimes confused with the term invention
http://www.pbs.org/idealab/2012/03/the-difference-between-invention-and-innovation086/
http://money.cnn.com/2014/08/20/technology/innovationnation/google-search/index.html
• Invention can be defined as the creation of a product
or introduction of a process for the first time.
• Innovation occurs if someone improves on or makes
a significant contribution to an existing product,
process or service.
4. Why Innovation is Important?
• Emergence of the Global Marketplace.
• Response to Competition and Market Trends.
• Increased push to improve efficiency and effectiveness of organizations .
• High Consumer expectations at Lower Costs.
• Continuous Improvement in Product & Services.
• Solve Problems Today that Position us to address Unforeseen Problems
Tomorrow.
• Decreased Time to Market and Improved Agility.
• Demographic & Geographic Needs.
• Widespread Proliferation of Technology.
5. "Human behavior flows
from three main sources:
Desire, Emotion, and
Knowledge."
– Plato
How Behavior affects Innovation?
6. Desire
A personal interest in the topic at hand encourages individuals to
continue pursuing innovation outside their daily routine.
“My dream was to connect all the Internet users so they can relate to each
other, it can make such a difference in people's lives” -Orkut Büyükkökten
• Orkut is a Turkish software engineer who developed the social
networking services Club Nexus, inCircle and Orkut.
• Considering his desire to connect world, family and friends as well as
industry leaders such as Google and Yahoo! encouraged him to
innovate according to his Desire.
• He named his creation orkut.com and at its peak it had over 33 million
registered users.
7. Emotion
By creating a personal connection with change (innovation) employees are
engaged. This creates an excitement and energy in individuals which is highly
contagious to those around them.
• Building encouragement through emotion Dr. Robert Metcalfe successfully tested & implemented the 1st packet
based communication service (ARPANET).
• His emotion was so strong he built his doctoral dissertation on it and pressed on even after Harvard rejected it.
• A 1972 demo of ARPANET for 10 AT&T executives came to a sudden halt when the system crashed mid-demo.
The response by the executives was to smile and laugh because to them, this technology would never work or
be competitive.
• Today, the entire world is connected via packet switching.
• "Ethernet, at the time, was controversial," recalls Gib Myers, a general partner at the Mayfield Fund. "But in our
business, when you meet a guy like Metcalfe who is clearly a leader and a guru in his field, you just say, 'Let's go
with this horse.' He was a technical beacon, but he had the personality and the leadership skills, and you want
someone like that when you're backing a small company in a new market."
• Dr. Metcalfe one of favorite use of network “GAMING” acquire big internet market in todays world .
History of Internet: http://www.youtube.com/watch?v=aKi-cj39-xg
http://archive.wired.com/wired/archive/6.11/metcalfe_pr.html
8. Knowledge
Hiring and training the right people with the right skills to
succeed, grow and innovate.
• Hiring and Training people with the right skills (knowledge) is paramount to innovation.
• Innovation becomes stagnant when knowledge isn't shared
• A sharing of knowledge and skills fosters an environment of innovation.
• In a large company no one knows everything. Great leaders arise from great teams. Great teams
arise from the sharing of knowledge both internally and externally.
• Knowledge Management is an organizational process that aims to create centralize knowledge
source within the organization that acquire, assimilate, distribute, integrate, share, retrieve and
reuse the internal and external, explicit and tacit to bring innovation in the organization in the
form of the product, people and organizational process.
• By studying several empirical and conceptual studies, we find [Knowledge Management] has a
significant positive effect in bringing innovation through transformation of knowledge into
knowledge assets in organizations.
http://www.researchgate.net/publication/259239982_Role_of_Knowledge_Management_to_Bring_Innovation_An_Integrated_
Approach
9. Business Model Innovation
• Business Model innovation plays an important role in organization progress, bringing new
revenue sources and reducing operations cost. This is a driving factor for any organization
innovation.
• The important difference in Business Model innovation is a step down approach where ideas
serve big benefits to organization & actual investment/time to achieve this goal are very small
• Business Model Innovation video from the University of St. Gallen:
https://www.youtube.com/watch?v=B4ZSGQW0UMI
Initiation
Ideation
Integration
Implementation
Business
Level
ROI
10. Why Business Level Innovation is important:
• BLI always gives a high ROI on a small investment.
• Provides reference material available for benchmarking &
calculating risk.
• Industry examples abound.
• Minimal direct research and development cost.
• Re-usability of existing resources, process , technology &
line of business.
• Allow you to use third party resources more effectively.
• Brings 3rd party resources up to your level growing their
business under your domain.
