Innovation Strategy& Growth                          by                     Firdaus Khan                   Assoc. Prof & T...
“It was the best of times, it was the worst  of times,it was the age of wisdom, it was the age of  foolishness,it was the ...
SURPRISE!!!Q: Which is the number one mobile payment country on earth?A: It’s Kenya!20% of its entire GDP passes through i...
GUESS WHAT !!!Q: Per capita, which country has the largest audience/users of youtube?A: Saudi ArabiaThe largest category o...
GOTCHA !!!Q: Where is the worlds largest collection of fresh water?A: Egypt-Libyan desert.Remarkable solar technology is b...
Today’s Race for Profitability is..• not a 100m dash,• its rather a decathlon– where success comes from all round  excelle...
Clued In• Confederation of British Industries, UK,  2011 Survey finding:- Creativity & Innovation were cited by 37%  of bu...
Innovation In India              MITs Technology Review 2011 Awards• Ajit Narayananand (Innovator of the Year)  ‘Avaz’ too...
iWeb Technology Solutions• Akshay Shah has created a business  process management generator which can  create applications...
Innoz Technologies Haryana• Deepak Ravindran created a mobile based  search engine to deliver information on  any topic.• ...
HCL Technologies20 December 2012        firdaus@icbm.ac.in   11
Google’s 70-20-10 Rule• 70% Core efforts, 20% Adjacent areas  and expansion, and 10%, anything goes.• “As we have expanded...
20 December 2012   firdaus@icbm.ac.in   13
Creativity is …• … the generation of new ideas leading to- new ways of looking at existing problems- seeing new opportunit...
Innovation is …• …the successful exploitation of new ideasresulting in- new products / services- new markets- new processe...
Breaking the Innovation MythsMyth1: Innovation in itself             Myth 2: Innovation is theis valuable                 ...
20 December 2012   firdaus@icbm.ac.in   17
Four Innovation Zones                Line Extension     Enhancement         Marketing          Experiential               ...
Innovation Types for Growth Markets                        Product                  New              Existing             ...
Application Innovation                (Existing Product, New Market)• Greenfield opportunities to design & build  products...
Product Innovation                     (Existing Market, New Product)• Reverse Innovation & Bottom-of-Pyramid  Strategies•...
Platform Innovation                     (Existing Market, Existing Product)• Pacific Direct -Luxury Hotel Amenities &  Gue...
Disruptive Innovation                   (New Market, New Product)• Markets without 20th century technologies,  ripe for 21...
Business Model Innovation• IBM radically revamped its functions in  Asia, moving- human resources to Manila,- accounts rec...
Hot Product + Revenue Stream                   = New Business Model• Pheed is a site that allows users to post  any type o...
Value Innovation      Company’s actions favorably affect both its      cost structure and its value proposition.     Cost ...
Value Innovation20-Dec-12        firdaus@icbm.ac.in   27
Open Innovation•   IBM’s Eclipse Platform•   P&G’s Connect + Develop platform•   Appfest in Hyderabad•   Internet of Thing...
Jugaad  Innovation in a Resource strapped EnvironmentBicycles, car parts, old suitcases….Six principles :• seek opportunit...
Innovation through SoftscalingA left and right brain combination of quantitative optimizationand emotion, linked together ...
Challenges in Indian Context• Nirmalya Kumar (Mktg Prof. LSB, ‘India  Inside’) states 3 hurdles to India reaching  its ful...
Projected Evolution     of India’s Innovation Landscape1: R&D & IT innovation veterans (of 5-  10yrs) will make entreprene...
TAKEAWAY #1• Creativity is an abundant natural resource  – harness it.• Creativity has to be channeled in the right  way. ...
TAKEAWAY #2• Competing for a share of a contracting  market is a ‘second best’ strategy• Stimulating the demand side is a ...
TAKEAWAY #3• Innovation strategy is akin to taking the  road less travelled,- challenging business boundaries- & mental mo...
TAKEAWAY # 4• Segmentation strategies should be applied  for local relevance & global scale.• Innovation = Market opportun...
20 December 2012   firdaus@icbm.ac.in   37
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  1. 1. Innovation Strategy& Growth by Firdaus Khan Assoc. Prof & Trainer at ICBM-SBE20 December 2012 firdaus@icbm.ac.in 1
  2. 2. “It was the best of times, it was the worst of times,it was the age of wisdom, it was the age of foolishness,it was the epoch of belief, it was the epoch of incredulity,it was the season of Light, it was the season of Darkness, …we had everything before us, we had nothing before us”20 December 2012 firdaus@icbm.ac.in 2
  3. 3. SURPRISE!!!Q: Which is the number one mobile payment country on earth?A: It’s Kenya!20% of its entire GDP passes through itsservice mPesa.20 December 2012 firdaus@icbm.ac.in 3
  4. 4. GUESS WHAT !!!Q: Per capita, which country has the largest audience/users of youtube?A: Saudi ArabiaThe largest category of videos watched iseducational. The largest demographic ismiddle aged women20 December 2012 firdaus@icbm.ac.in 4
  5. 5. GOTCHA !!!Q: Where is the worlds largest collection of fresh water?A: Egypt-Libyan desert.Remarkable solar technology is beinginvented to more reliably pump it andaffordably extend food and fertility of land20 December 2012 firdaus@icbm.ac.in 5
  6. 6. Today’s Race for Profitability is..• not a 100m dash,• its rather a decathlon– where success comes from all round excellence in multiple sports- sitting out is not an option &- competing effectively entails mastering a number of competencies in a balanced way.20 December 2012 firdaus@icbm.ac.in 6
  7. 7. Clued In• Confederation of British Industries, UK, 2011 Survey finding:- Creativity & Innovation were cited by 37% of businesses as important to organisational competitiveness (4th among 15 factors)- 2012 IBM survey reveals: 2 out of 3 CEOs expect to effect fundamental change in their organisations through Innovation20 December 2012 firdaus@icbm.ac.in 7
  8. 8. Innovation In India MITs Technology Review 2011 Awards• Ajit Narayananand (Innovator of the Year) ‘Avaz’ tool for speech impaired• Alefia Merchant (Humanitarian of the Year) low-cost, readily-available digital camera technology to photograph a childs eye for signs of vision-threatening disease• Gautam Kumar (Social Innovator of the year) system to detect LPG leakage & warn concerned people over cell phones20 December 2012 firdaus@icbm.ac.in 8
  9. 9. iWeb Technology Solutions• Akshay Shah has created a business process management generator which can create applications on the fly.20 December 2012 firdaus@icbm.ac.in 9
  10. 10. Innoz Technologies Haryana• Deepak Ravindran created a mobile based search engine to deliver information on any topic.• His mobile based service, SMSGyan, promises information on almost any topic to the user without asking him to click on any link.20 December 2012 firdaus@icbm.ac.in 10
  11. 11. HCL Technologies20 December 2012 firdaus@icbm.ac.in 11
  12. 12. Google’s 70-20-10 Rule• 70% Core efforts, 20% Adjacent areas and expansion, and 10%, anything goes.• “As we have expanded our breadth of offerings, its actually harder and harder to find the 10% out there. But I think thats important -- to let people be really creative and think outside the box." -CEO Larry Page20-Dec-12 firdaus@icbm.ac.in 12
  13. 13. 20 December 2012 firdaus@icbm.ac.in 13
  14. 14. Creativity is …• … the generation of new ideas leading to- new ways of looking at existing problems- seeing new opportunities-exploiting emerging technologies-exploiting changes in markets20 December 2012 firdaus@icbm.ac.in 14
  15. 15. Innovation is …• …the successful exploitation of new ideasresulting in- new products / services- new markets- new processes- new business models20 December 2012 firdaus@icbm.ac.in 15
  16. 16. Breaking the Innovation MythsMyth1: Innovation in itself Myth 2: Innovation is theis valuable same in every companyInnovation should provide Comp. Adv.20 December 2012 firdaus@icbm.ac.in 16
  17. 17. 20 December 2012 firdaus@icbm.ac.in 17
  18. 18. Four Innovation Zones Line Extension Enhancement Marketing Experiential Innovation Innovation Innovation Innovation Customer Platform Intimacy Innovation Zone Product Product Category Innovation Leadership Renewal Renewal Innovation Zone Zone Harvest & Exit Operational Excellence ZoneDisruptive Application Value Engineering Integration Process Business ModelInnovation Innovation Innovation Innovation Innovation Innovation
  19. 19. Innovation Types for Growth Markets Product New Existing Disruptive Application New Innovation InnovationMarket Product Platform Existing Innovation Innovation
  20. 20. Application Innovation (Existing Product, New Market)• Greenfield opportunities to design & build products & services with innovative twists on best-in-class equivalents in established markets.• LG• Haier• Dabur• Tanishq20-Dec-12 firdaus@icbm.ac.in 20
  21. 21. Product Innovation (Existing Market, New Product)• Reverse Innovation & Bottom-of-Pyramid Strategies• Unilever’s Pureit filters• Airtel Money• Tata Nano, Swach filters• Nokia Aasha20 December 2012 firdaus@icbm.ac.in 21
  22. 22. Platform Innovation (Existing Market, Existing Product)• Pacific Direct -Luxury Hotel Amenities & Guest Toiletries is now on Twitter offering product related news & hotel gossip• Indian Railways offers mobile reservations & paperless ticket• Brand using social media for customer engagement. Top brands on Facebook are TataDoCoMo, ICICI, Amity University & Fastrack.20 December 2012 firdaus@icbm.ac.in 22
  23. 23. Disruptive Innovation (New Market, New Product)• Markets without 20th century technologies, ripe for 21st century innovations• Africa: poor banking facilities, migrant workers• Vodafone has bridged the gap with m-Pesa mobile payment service• 250,000 subscribers in its 1st year• Has now become Kenya’s leading financial services company20 December 2012 firdaus@icbm.ac.in 23
  24. 24. Business Model Innovation• IBM radically revamped its functions in Asia, moving- human resources to Manila,- accounts receivable to Shanghai,- accounting to Kuala Lumpur,- procurement to Shenzhen &- customer service to Brisbane.20-Dec-12 firdaus@icbm.ac.in 24
  25. 25. Hot Product + Revenue Stream = New Business Model• Pheed is a site that allows users to post any type of media--photos, videos, audio, text, live broadcasts--and charge for the content.• In 6 weeks, the site has already grown to over a million users, including celebrities like Miley Cyrus, and it’s gone viral in France.20 December 2012 firdaus@icbm.ac.in 25
  26. 26. Value Innovation Company’s actions favorably affect both its cost structure and its value proposition. Cost savings Costs Buyer value is are made by lifted by eliminating and raising and reducing the creating Value factors an Innovation elements the industry industry has competes on. never offered. Buyer Value20-Dec-12 firdaus@icbm.ac.in 26
  27. 27. Value Innovation20-Dec-12 firdaus@icbm.ac.in 27
  28. 28. Open Innovation• IBM’s Eclipse Platform• P&G’s Connect + Develop platform• Appfest in Hyderabad• Internet of Things• IITs in India:- IIT-Raj: Aakash- IIT-Kanpur: Jugnu satellite & MatchBox railway derailment detection device20-Dec-12 firdaus@icbm.ac.in 28
  29. 29. Jugaad Innovation in a Resource strapped EnvironmentBicycles, car parts, old suitcases….Six principles :• seek opportunity in adversity,• do more with less,• think and act flexibly,• keep it simple,• include the margin and• follow your heart20-Dec-12 firdaus@icbm.ac.in 29
  30. 30. Innovation through SoftscalingA left and right brain combination of quantitative optimizationand emotion, linked together with data-informed empathy20 December 2012 firdaus@icbm.ac.in 30
  31. 31. Challenges in Indian Context• Nirmalya Kumar (Mktg Prof. LSB, ‘India Inside’) states 3 hurdles to India reaching its full potential in Innovation –- Intellectual Property Protection System- Venture Capitalist Ecosystem- Mirage of mighty Labour Pools.20-Dec-12 firdaus@icbm.ac.in 31
  32. 32. Projected Evolution of India’s Innovation Landscape1: R&D & IT innovation veterans (of 5- 10yrs) will make entrepreneurial leaps2: For Indian companies when growth slows down or cost goes up, innovation will emerge as the competitive plank. For this they will hire people out of the MNC captives to grow innovation capabilities.20-Dec-12 firdaus@icbm.ac.in 32
  33. 33. TAKEAWAY #1• Creativity is an abundant natural resource – harness it.• Creativity has to be channeled in the right way. It is a necessary but not sufficient condition for success.20-Dec-12 firdaus@icbm.ac.in 33
  34. 34. TAKEAWAY #2• Competing for a share of a contracting market is a ‘second best’ strategy• Stimulating the demand side is a ‘first best strategy.’• Companies pursuing a first best strategy FAR outperform those with a second best strategy.20-Dec-12 firdaus@icbm.ac.in 34
  35. 35. TAKEAWAY #3• Innovation strategy is akin to taking the road less travelled,- challenging business boundaries- & mental models- exploring the realm of possibilities20-Dec-12 firdaus@icbm.ac.in 35
  36. 36. TAKEAWAY # 4• Segmentation strategies should be applied for local relevance & global scale.• Innovation = Market opportunities + Corporate Capabilities + Customer related Insights• Do not lend your eyesight to others!20 December 2012 firdaus@icbm.ac.in 36
  37. 37. 20 December 2012 firdaus@icbm.ac.in 37

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