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Understanding Innovation
-Latin innovatio
-"Innovation is the multi-stage process whereby
organizations transform ideas into improved products,
service or processes, in order to advance, compete and
differentiate themselves successfully in their
marketplace." Baregheh (2009)
Linear Model of Innovation
Invention
Innovation
Diffusion
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Views on Innovation
Traditional, Manufacturer-Centered
Manufacturers identify user needs, develop products at
private expenses, and make profit by protecting and
selling what they have developed
User-Centered
Lead Users innovate to solve their own needs at private
expense – and then freely reveal their innovations
Functional Sources of Innovation
-User
-Manufacturer
*Source: Democratizing Innovation
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Recent Examples
1. Who sells the largest number of cameras in India?
2. Who is the biggest in music business in India?
3. Who was the toughest competitor to British Airways
in India in 2008?
4. Alarm Clock?
5. Air Tel?
Driving Innovation
Jorgen Rosted, Director, FORA, in his presentation ‘A New
Nature of Innovation’ has identified the following as
innovation drivers:
1. Co-creation
2. Global Knowledge Sourcing and Collaborative Networks
3. Global Challenges
4. Technology (as enabler)
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Driving Innovation (contd.)
* Source: Presentation by Jorgen Rosted (Director, FORA)
Opportunities for Business Analysts
1. Discovering hidden customer and user needs
2. Finding solutions to satisfy these needs
3. Helping to pick the best solution
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Tools to Use
- Systems Thinking
- Creative Problem Solving
- Proving/disapproving ideas
- Ethics Intellectual Property
Systems Thinking
An approach to problem solving, by viewing
"problems" as parts of an overall system, rather than
reacting to specific part, outcomes or events and
potentially contributing to further development of
unintended consequences
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Systems Thinking (contd.)
The department of an agriculture firm charged with
finding a way to reduce the crop damage created by
insects that have proven resistant to common
pesticides.
Consider: Create stronger pesticide to kill even these
unusually resistant insects
Suggestions for Practitioners
- Experience the problem/pain/solution
- Accept criticism
- Prove your idea
- Remember Value Engineering
- Integrate idea creation with your activities
- Think as an Entrepreneur
- Think as a buyer
- Think sustainability
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Suggestions for Researchers
- Model/method to visualize problem
- Theatre Techniques
- Video based requirements engineering
- Relational Algebra for analysis
- Integrate idea creation with your activities
- Performance metrics for value creation by business
analyst
Aligning Innovation to Strategy
- M.O.S.T. Analysis
- Goal Modeling
- P.E.S.T.L.E.
- HEPTALYSIS
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M.O.S.T.
- Where the business intends to go (mission)
- Key goals which will help to achieve this (objectives)
- What are the options for proceeding forward (strategies)
- Putting these into action (tactics)
Goal Modeling
- Stakeholder objective for the system
- Hierarchy of Goals
- High-level goals to low-level system requirements
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We have covered
1. Understanding Innovation
2. Driving Innovation
3. Aligning Innovation to Strategy
We have covered
1. Understanding Innovation
2. Driving Innovation
3. Aligning Innovation to Strategy
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To Dos
1. Involve team members
2. Encourage questions and answers
3. Draw picture for suggestions
4. Organize group activity
5. Think Systems
6. Be ethical
References
1. Robert W. Stoddard II, Ira A. Monarch, Dennis R. Goldenson (2009). How
Unstated Customer Needs May Drive Innovation. SEI Webinar.
2. Jorgen Rosted (2006). A New Nature of Innovation.
3. Eric Von Hippel (2005). Democratizing Innovation.
4. Dr. Y. L. R. Moorthi (2010). Have Breakfast or Be Breakfast
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