Innovation is the change in technology. The question is this: how does innovation happen? Many people have believe that new ideas come from brilliant inventors that have lightbulb moments or an epiphany. Greek scholar Archimedes had a Eureka moment, Newton discovered the theory of gravity when the apple fell on his head, and so on. This idea has been popularized, but the truth is quite different. Most discoveries are based on long evaluation - slow hunches, and collaboration. In this lecture we look at how innovation happens. We look at the slow hunch, the liquid network, and serendipity.

1. Lecture L05
INNOVATION

2. “I
have
not
failed.
I've
just
found
10,000
ways
that
won't
work.”
–
Thomas
Edison

3. How does innovation happen?

4. The Brilliant Scientist working in his lab

5. Tomas Edison
Menlo Park
1876-1881

6. Nikola Tesla
http://en.wikipedia.org/wiki/Nikola_Tesla

7. Innovation
Something newly introduced, such as a new method or device

8. Innovation

9. Innovation
Sustaining
Evolutionary
Revolutionary
Disruptive

10. Innovation
Sustaining
Technology
–
Evolutionary
!
An
innovation
that
improves
a
product
in
an
existing
market
in
ways
that
customers
are
expecting
!
Red
Oceans
-­‐
commodities

11. Innovation
Sustaining
Technology
–
Revolutionary
!
An
innovation
that
creates
a
new
market
by
allowing
customers
to
solve
a
problem
in
a
radically
new
way
!
May
not
be
affordable
enough
to
be
disruptive

12. Innovation
Disruptive
Technology
!
An
innovation
that
creates
a
new
(an
unexpected)
market
by
applying
a
different
set
of
values.
!
Affordable
so
the
impact
is
major
Ford
Model
T

13. How does innovation
r eally
happen?

14. "We take the ideas we've
inherited or stumbled across,
and we jigger them
together into some new
shape."
– Steven Johnson

15. The Coffee House

16. The Medici Effect

17. Environment of the space
Where people meet
!
Where ideas have sex

18. The Liquid network
A good idea is a network.
Innovations happens with
collaboration
Steven
Johnson

19. The Liquid network
Innovations happen when
ideas are shared
Steven
Johnson

20. The importance of cities

21. Sir Isaac Newton

22. The Slow Hunch
A lot of ideas linger on,
sometimes for decades,
in the back of people’s
minds
Steven
Johnson

23. Douglas Englebart 1965
Apple Macintosh 1984
Source:
http://www.britannica.com/EBchecked/topic/187881/Douglas-­‐Engelbart

24. The 10/10 Rule
Any technology that is going to have
significant impact over the next 10 years is
already at least 10 years old
Source:
http://www.businessweek.com/innovate/content/jan2008/id2008012_297369.htm

25. The 10/10 Rule
10 years to build a new
platform, 10 years for it
to be adopted
Steven
Johnson

26. What do the following products
have
in
common?

27. LSD
Post-it notes
Viagra
Teflon
Penicillin

28. Serendipity
The accident of finding
something useful or good
without looking for it
Steven
Johnson

29. "In the fields of observation
chance favours only the
prepared mind”
- Louis Pasteur

30. Impact of innovation

31. Gross domestic product

32. Matt Ridley: When ideas have sex

33. Slide from Matt Ridley’s 2010 TED talk

34. Exchange
It is through exchange that
mankind has enjoyed huge
rise in living standards
Matt Ridley

35. The Forth Quadrat

37. 1
MARKET/NETWORK
NON-MARKET/INDIVIDUAL
NON-MARKET/NETWORK
3
4
MARKET/INDIVIDUAL
2

38. TECHNOLOGY ADOPTION LIFE CYCLE

39. Technology Adoption Life Cycle
TECHNOLOGY
CONSUMER

40. Technology Adoption Life Cycle
In the early days
In the later days
!
!
The innovators and technology
enthusiasts drive the market
They demand technology
Small percentage of the market
The pragmatists and conservatives
dominate; they want solutions and
convenience
The big market

41. Liquid network
The Slow Hunch
10/10 Rule
Serendipity

42. NEXT
Diffusion of Innovation