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Different kinds of competition
and its effect on innovation
Dr. Shawn Cunningham
www.mesopartner.com
Some basics on innovation
• Four kinds of innovative behavior
– Product or service innovation
– Process innovation
– Business model innovation
– Social innovation
• There is a close relationship between
innovation and the way knowledge is
generated, recognized and processed
More basics on innovation
• Most enterprises innovate because
– they have to solve a problem
– Their customers demand something specific
– New equipment allows them to do more
• Sometimes enterprises innovate by accident
• Few have a formal system to reflect and adjust
• Very few involve the
whole organization in
innovation
Competition
• Enterprises that are facing competition are
more likely to innovate
• Competition is not liked because it is compared
to competition in sport
• There are fundamental
differences between
competition in sport and
competition in business
Practical examples of how competition
shapes innovation
5 kinds of competition that influences
innovative behavior
• Running to stay in the same place
• Running to stay ahead of competitors
• Running to catch up with competitors
• A Big leap into the 20th century
• Pushing back the cutting edge
Conclusion for enterprises
• Decide that you want to be innovative
– Think with your staff about trends, shifts, lessons
– Formalise things that work, confront things that
don’t work
– Attack “not invented here” and “status quo”
• Decide to be competitive
– Assess your current competitive behaviour
– Set targets that stretch your enterprise, and then
allow your organization to innovate
Conclusion for supporting
organisations
• Stimulate competition and rivalry in your target
sector
– Highlight what seems to be working
– Highlight the trends, shifts and patterns
– Assist firms that can specialise or differentiate
• Go beyond product innovation
– Assist enterprises to recognise their knowledge and to
use it to innovate
• Disconnect technology (hardware) from
innovation
Thank you
Shawn Cunningham
sc@mesopartner.com
www.mesopartner.com
Blog at www.cunningham.org.za

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Different kinds of competition and its effect on innovation

  • 1. Different kinds of competition and its effect on innovation Dr. Shawn Cunningham www.mesopartner.com
  • 2. Some basics on innovation • Four kinds of innovative behavior – Product or service innovation – Process innovation – Business model innovation – Social innovation • There is a close relationship between innovation and the way knowledge is generated, recognized and processed
  • 3. More basics on innovation • Most enterprises innovate because – they have to solve a problem – Their customers demand something specific – New equipment allows them to do more • Sometimes enterprises innovate by accident • Few have a formal system to reflect and adjust • Very few involve the whole organization in innovation
  • 4. Competition • Enterprises that are facing competition are more likely to innovate • Competition is not liked because it is compared to competition in sport • There are fundamental differences between competition in sport and competition in business
  • 5. Practical examples of how competition shapes innovation
  • 6. 5 kinds of competition that influences innovative behavior • Running to stay in the same place • Running to stay ahead of competitors • Running to catch up with competitors • A Big leap into the 20th century • Pushing back the cutting edge
  • 7. Conclusion for enterprises • Decide that you want to be innovative – Think with your staff about trends, shifts, lessons – Formalise things that work, confront things that don’t work – Attack “not invented here” and “status quo” • Decide to be competitive – Assess your current competitive behaviour – Set targets that stretch your enterprise, and then allow your organization to innovate
  • 8. Conclusion for supporting organisations • Stimulate competition and rivalry in your target sector – Highlight what seems to be working – Highlight the trends, shifts and patterns – Assist firms that can specialise or differentiate • Go beyond product innovation – Assist enterprises to recognise their knowledge and to use it to innovate • Disconnect technology (hardware) from innovation