markets and intro to innovation theory

1. 1 | Conrad Overview |
Business Leadership
Program
August 3rd
, 2015
Innovation &
Entrepreneurship

2. 2 | Conrad Overview |
Day 1:
Creating Innovative
Ideas 1

3. 3 | Conrad Overview |
About Tara Scanlan B.I.B (Hons.), MBET

4. 4 | Conrad Overview |
Cold Introductions
The name is Bond, James Bond
I work for Her Majesty’s Secret Service
I’m on an important mission to …
----
My name is ……
I am from …
Entrepreneurship & innovation to me means…

5. 5 | Conrad Overview |
Innovation

6. 6 | Conrad Overview |
Innovation Defined
• A new way of doing things
• A better way of doing things (Wong, S.K.S (2013))
• Offer consumers a better and cheaper way to
do something (a Big Bang Disruptor) (Forbes 2014)
• The process of translating an idea or
invention into a good or service that creates
value or for which customers will pay (Business
Dictionary)

7. 7 | Conrad Overview | Retrieved from Sparkes D, BET 607 Slides (2013)

8. 8 | Conrad Overview |
Innovation Defined Continued
• “An idea must be replicated at an economical
cost and satisfy a specific need … processes
and/or applications” (Business Dictionary)
• Two categories of innovation:
– Evolutionary innovations (continuous or
dynamic innovation): incremental
advances
– Revolutionary innovations
(discontinuous innovations): disruptive and
new

9. 9 | Conrad Overview |
What Makes a Technology Disruptive?
• Has the technology evolved (is the dominant
design/infrastructure) in place?
• Is the market ready for the technology?
– Creation of a market and the change
(destruction) of another
• How much learning do customers need?

10. 10 | Conrad Overview |
Disruptive Innovation Examples

11. 11 | Conrad Overview |
Incremental Innovation Examples
08/06/15
11

12. 12 | Conrad Overview |
Incremental Innovation Example …

13. 13 | Conrad Overview |

14. 14 | Conrad Overview |
Innovation Defined Continued …
• Innovation Output depends on the inputs:
R&D expenditures and firm characteristics
(size, group, team) and government policy (P.
Blanchard et al, (2012))
• Internal: Knowledge, Resources, Finance &
Market Access
• External: Policy, Market

15. 15 | Conrad Overview |
INNOVATION CURVE
Where the
Market comes
in!
population distribution
Chang, W Pivot Consulting 2013

16. 16 | Conrad Overview |
Markets

17. 17 | Conrad Overview |
What types of
Markets exist?

18. 18 | Conrad Overview |
Markets Defined
• “A medium that allows buyers and sellers of a
specific good or service to interact in order to
facilitate an exchange. Price is determined by
a number of factors (supply and demand)”
(Investopedia)

19. 19 | Conrad Overview |

20. 20 | Conrad Overview |
Perfectly Competitive Markets
• Must be more than a single buyer or seller
• Buyers and sellers have equal access to information
• Products are comparable
• Democratic government acts as a referee (balance the
market)
• Easy entry
• No Market Power
• Information Available

21. 21 | Conrad Overview |
Perfectly Competitive Market Examples

22. 22 | Conrad Overview |
Monopoly
• Single seller and multiple buyers
• Market prices may be distorted by a seller or
sellers with monopoly power
• Can reduce efficiency
• Negotiation power distorted
• Government controlled markets
• IP is important here

23. 23 | Conrad Overview |
Monopoly Examples

24. 24 | Conrad Overview |
Oligopoly
• Few Sellers, Many Buyers
– 4 firms control 40%+ of market
• Homogenous (same) or Differentiated Products
• High barriers to entry
• Interdependence
– Price rivalry
– Advertising
– Development

25. 25 | Conrad Overview |
Examples

26. 26 | Conrad Overview |
Within markets, are
organizations

27. 27 | Conrad Overview |
Private Industry
• For Profit: business or organization whose primary goal is making
money (a profit) (business dictionary)
– Corporation
– Partnership
– Sole Proprietor
• Not for Profit: Primary goal to help communities and is concerned
with money that will keep the organization operating (business dictionary)
• Cooperative: owned and run jointly by its members, with profits or
benefits shared among them (Oxford Dictionaries)
• Charity: an organization set up to provide help and raise money for
those in need (Oxford Dictionaries)

28. 28 | Conrad Overview |
What type are
markets are these
products in?

29. 29 | Conrad Overview |
What type of Market is this?

30. 30 | Conrad Overview |
What Type of Market is This?

31. 31 | Conrad Overview |
What market is this?

32. 32 | Conrad Overview |
What type of market is this?

33. 33 | Conrad Overview |
Exercise

34. 34 | Conrad Overview |
Break into groups
• Using magazines identify:
– Innovative products
• Disruptive
• Incremental
– Market (Monopoly, Oligopoly, Perfectly
Competitive)
• 1-2 minute presentation on one market
and one disruptive innovation and one
incremental innovation

35. 35 | Conrad Overview |
Conclusion

36. 36 | Conrad Overview |
What do companies
need to stay
competitive?

37. 37 | Conrad Overview |
Conclusion
• Innovation is Internal and External to an
Organization
• Companies need to:
– Anticipate
– Adapt
– Achieve
• Think about the context of the problems you
are solving!

38. 38 | Conrad Overview |
Kitchener/Waterloo
You are in the heart of innovation & technology
in Canada!

39. 39 | Conrad Overview |
Homework
• Write:
– Find an example of an innovative product in Japan and define
the type of business entity, and industry. Email it to me, 100
word limit.
• Videos:
– http://www.ted.com/talks/tim_brown_urges_designers_to_think_big#t-1

40. 40 | Conrad Overview |
My email
Scanlancmc@gmail.com