This paper proposes the effective approaches to “Innovation & Entrepreneurial Management Activities” from the points of view of “S-curve theory” and “the Patterns of technical evolutions.

1. ENTREPRENEURSHIP
IDEAS & INNOVATIONS

2. ENTREPRENEUR
An Entrepreneur pursues INNOVATION
for the purpose of VALUE CREATION
GOAL: INNOVATION
PURPOSE: VALUE CREATION

3. NEW
ORIGINATION
IS INNOVATION JUST ABOUT
NOVELTY?
INNOVATION - Synonyms

4. WORTH
SIGNIFICANCE
Value creation is typically
defined in terms of
ECONOMIC & MONETARY
VALUE
VALUE CREATION

5. ENTREPRENEUR = INNOVATION +VALUE CREATION

6. IS INNOVATION JUST ABOUT
NOVELTY?
INNOVATION

8. INNOVATION is the market
Introduction of a Technical or
Organizational novelty
Not just its INVENTION.
Joseph A Schumpeter

9. NEW
TRANSFORMATION
REORGANIZATION
ORIGINATION
USEFUL – COMMERCIAL VALUE
INNOVATION - Synonyms

10. INNOVATION = INVENTION + COMMERCIALIZATION

12. Where do IDEAS for
INNOVATION comes from?

14. Where do IDEAS for
INNOVATION comes from?
Panel Studies of Entrepreneurial Dynamics asked this question to 830 entrepreneurs.
For more information see https://courses.edx.org/courses/course, module 2, Idea development.

15. Where do ENTREPRENEURIAL
IDEAS comes from?
1. Discovery process
2. Creation process
Both focuses on PROCESS: (Knowledge & skills)
Anyone who develops the necessary
knowledge & skills can be Entrepreneurial.

16. ENTREPRENEURIAL IDEAS
1. Discovery Process
Entrepreneur exploit changes in External
Environment that DISRUPTS the status quo
of Industry or Market.
2. Creation Process
Entrepreneur acts as an agent of change
by creating new Products, Services and
Markets.

17. INNOVATION - (DISCOVERY PROCESS)

18. INNOVATION - (CREATION PROCESS)

19. PROBLEM/ISSUE : SHARED SAFE TRANSPORTATION
BUSINESS OPPORTUNITY: PROFESSIONALLY MANAGED CAB SERVICES

20. PROBLEM/ISSUE : HOME DELIVERY OF FOOD & BEVERAGES
BUSINESS OPPORTUNITY: NETWORK OF EATING JOINTS

21. PROBLEM/ISSUE : RELIABLE DOMESTIC SERVICES
BUSINESS OPPORTUNITY: LOCAL NETWORK FOR DOMESTIC SERVICES

22. PROBLEM/ISSUE : AFFORADABLE GLOBAL DISTANCE EDUCATION
BUSINESS OPPORTUNITY: COLLABORATION WITH INTERNATIONAL UNIV.

23. PROBLEM/ISSUE : HOME DELIVERY OF MEDICINES
BUSINESS OPPORTUNITY: HOME DELIVERY OF MEDICINES AT AFFORDABLE PRICE

24. ENTREPRENEURIAL IDEAS
1. Discovery Process
Changes in External Environment DISRUPTS
the status quo of Industry or Market.
Changes in External Environment usually
Have an INFORMATION ADVANTAGE

25. ENTREPRENEURIAL IDEAS
1. Discovery Process
Entrepreneurs actively monitoring the
changes in External Environment are more
likely to IDENTIFY OPPORTUNITIES fast.
Entrepreneurs having ability to relate and
connect two or more DISPARATE pieces of
information IDENTIFY OPPORTUNITIES fast

26. ENTREPRENEURIAL IDEAS
2. Creation Process
Entrepreneur acts as an agent of change
by creating new Products, Services and
Markets.
Creation is facilitated by high degree of
UNCERTAINTY & UNPREDICTABILITY.
Competition is either Product & Service
based OR on there delivery mechanism.

27. 1 in 10 products
launched are successful.
INNOVATION
Of those that are
launched, only
Half earn a profit.

28. Movie (2016):
Innovation: Where Creativity and Technology Meet
Produced by Satheese Gopalan
https://www.youtube.com/watch?v=JyrgUZ176HQ

29. TYPES & PATTERNS OF INNOVATION

30. INNOVATION
Innovation is a multidimensional process
including many activities that leads to
creation of value
KNOWLEDGE
CAPABILITIES
RESOURCES
SKILLS

31. TYPES OF INNOVATION
1. Creation of a New Product & Services
2. Introducing New method of production
3. Developing a New source of supply
4. Creation of a New market
5. New organisation of business/network

32. NO SINGLE GENERALIZATION FOR INNOVATION

33. OTHER CATEGORIES OF INNOVATION
1. Incremental Innovation
2. Radical Innovation
3. Competency Enhancing Innovation
4. Competency Destroying Innovation
5. Architectural Innovation
6. Component Innovation

34. INCREMENTAL INNOVATION
Minor, Cumulative changes in existing products, processes & services

35. RADICAL INNOVATION
Major changes requiring different sets of engineering & scientific principles.
Creates new markets & potential applications

36. RADICAL INNOVATION

37. COMPETENCY ENHANCING INNOVATION
Builds on and reinforces existing skills, competencies & know how..
Leverages current organizational knowledge to next level.

38. COMPETENCY ENHANCING INNOVATION

39. COMPETENCY DESTROYING INNOVATION
Overturns & replaces existing competencies, skills and know how.
Eliminating entire product line or the type of technology

40. COMPETENCY DESTROYING INNOVATION

41. ARCHITECTURAL INNOVATION
Change in the overall design of the system or the way components interact.

42. COMPONENT/GENERATIONAL INNOVATION
Changes in components of a product system without
significant change in the overall design.

43. WHICH CATEGORY OF INNOVATION
IS IMPORTANT?
1. Incremental Innovation
2. Radical Innovation
3. Competency Enhancing Innovation
4. Competency Destroying Innovation
5. Architectural Innovation
6. Component Innovation

44. IMPORTANCE OF ARCHITECTURAL
INNOVATION
1. Competition between designs revolves around
refinements (i.e., component innovation or
incremental innovation) and this makes new
component knowledge more valuable.
2. Successful firms focus their learning about the
dominant design.
3. Dominant Design means single architecture

45. IMPORTANCE OF ARCHITECTURAL
INNOVATION
HOWEVER, firms who are heavily invested
on a dominant design often fail to respond
to other new disruptive technologies that
may enter the market later.

46. PATTERNS OF INNOVATION

47. PATTERNS OF INNOVATION (S – CURVE)
Technology improves slowly & gradually
(Poorly Understanding & Awareness)
Technology accelerates
(Understanding & Awareness increases)
Technology tapers off as approaches limits
(Discontinues when a new technology fulfils
a similar market need by building an
entirely new knowledge based)

48. PATTERNS OF INNOVATION (S – CURVE)

49. PATTERNS OF INNOVATION (S – CURVE)

50. INNOVATION PATTERN – 1
(Disruptive x Radical
Innovation)
NEW MARKETS
INNOVATION PATTERN - 3
INNOVATION PATTERN – 2
INNOVATION PATTERN - 4
PATTERNS OF INNOVATION
RADICAL INNOVATION INCREMENTAL INNOVATION
New Technologies Existing Technologies
DISRUPTIVE
INNOVATION
SUSTAINING
INNOVATION
https://www.researchgate.net/publication/241123910

51. INNOVATION PATTERN – 1
(Disruptive x Radical
Innovation)
NEW MARKETS
PATTERNS OF INNOVATION
RADICAL INNOVATION
New Technologies
DISRUPTIVE
INNOVATION
Innovation Pattern -1 (IP-1) creates new
S-Curve for the next generation products
using new technologies.
IP- 1 is the most powerful innovation
pattern as it is designed to destroy the
products of core companies in existing
markets by creating
New Markets With New Technologies

52. INNOVATION PATTERN – 1
NEW MARKETS
INNOVATION PATTERN - 3
INNOVATION PATTERN – 2
(Disruptive x Incremental
Innovation)
MATURE MARKETS
INNOVATION PATTERN - 4
PATTERNS OF INNOVATION
RADICAL INNOVATION INCREMENTAL INNOVATION
New Technologies Existing Technologies
DISRUPTIVE
INNOVATION
SUSTAINING
INNOVATION
https://www.researchgate.net/publication/241123910

53. DISRUPTIVE
INNOVATION
Innovation Pattern -2 (IP-2) is for the
mature markets. IP-2 encourages
companies to look for new markets or to
create new products for the existing
markets. IP- 2 destroys the products of
traditional companies.
IP- 2 is for
New Markets with Existing Technologies
INNOVATION PATTERN – 2
(Disruptive x Incremental
Innovation)
MATURE MARKETS
INCREMENTAL INNOVATION
Existing Technologies

54. INNOVATION PATTERN – 1
NEW MARKETS
INNOVATION PATTERN – 3
(Sustaining x Radical
Innovation)
EXISTING MARKETS
INNOVATION PATTERN – 2
MATURE MARKETS
INNOVATION PATTERN - 4
PATTERNS OF INNOVATION
RADICAL INNOVATION INCREMENTAL INNOVATION
New Technologies Existing Technologies
DISRUPTIVE
INNOVATION
SUSTAINING
INNOVATION
https://www.researchgate.net/publication/241123910

55. Innovation Pattern -3 (IP-3) is for the
emerging markets. IP-3 is based on new
technologies which emerge after the
obsolescence of core technologies, but
still chases the same existing markets.
IP- 3 is for Emerging Market &
Technologies.
INNOVATION PATTERN – 3
(Sustaining x Radical
Innovation)
EXISTING MARKETS
RADICAL INNOVATION
New Technologies
SUSTAINING
INNOVATION
PATTERNS OF INNOVATION

56. INNOVATION PATTERN – 1
NEW MARKETS
INNOVATION PATTERN – 3
EMERGING MARKETS
INNOVATION PATTERN – 2
MATURE MARKETS
INNOVATION PATTERN – 4
(Sustaining X Incremental
Innovation)
EXISTING MARKETS
PATTERNS OF INNOVATION
RADICAL INNOVATION INCREMENTAL INNOVATION
New Technologies Existing Technologies
DISRUPTIVE
INNOVATION
SUSTAINING
INNOVATION
https://www.researchgate.net/publication/241123910

57. Innovation Pattern -4 (IP-4) is for the
existing markets. IP-4 is is based on the
detailed understanding of established
customer requirements which enhance
customer satisfaction.
IP- 4 is for Existing Markets & Core
Technologies.
INNOVATION PATTERN – 3
(Sustaining x Incremental
Innovation)
EXISTING MARKETS
INCREMENTAL INNOVATION
New Technologies
SUSTAINING
INNOVATION
PATTERNS OF INNOVATION

58. There is NO predictive paths for the
evolution of an Innovation Pattern
The Four Innovation patterns are not
independent.
They evolves and develop while also
influencing the other Innovation patterns.

59. INNOVATION PATTERN – 1
NEW MARKETS
INNOVATION PATTERN – 3
EMERGING MARKETS
INNOVATION PATTERN – 2
MATURE MARKETS
INNOVATION PATTERN – 4
EXISTING MARKETS
EVOLUTION OF INNOVATION PATTERNS/PATHS
RADICAL INNOVATION INCREMENTAL INNOVATION
New Technologies Existing Technologies
DISRUPTIVE
INNOVATION
SUSTAINING
INNOVATION
2
1
Starting
Point
3
https://www.researchgate.net/publication/241123910

60. Innovation Pattern/Path moves in
a cyclical manner from
“Innovation pattern 4”, through
“Innovation pattern 3” and
concluding with
“Innovation Pattern 1”.
It then returns through
“Innovation pattern 3” to
“Innovation pattern 4”.

61. EVOLUTION OF INNOVATION PATTERN (SONY)
https://www.researchgate.net/publication/241123910

62. INNOVATION & SURVIVAL
88% of Fortune 500 firms have
vanished since 1955

64. Innovation activities based on s-curve analysis and patterns of technical evolution-“From the standpoint of
engineers, what is innovation?” - Manabu Sawaguchi
EM Course Slide -Suresh Bhagavatula, Srivardhinik Jhaand DalhiaMani
“Knowing a winning business idea when you see one,” W. Chan Kim and Renee Mauborgne
Odyssey 3.14, Laurence Lehman-Ortega and Helene Musikas
Entrepreneur tool-kit (HBR)
Entrepreneurship in Action, Unpublished Material, SarasSarasvathy
“Note on Developing Start-up Strategies”, Amar V Bhide. HBS Note 9-394-067
References

65. ENTREPRENEURSHIP
IDEAS & INNOVATIONS
ENTREPRENEURSHIP DEVELOPMENT
CA VINOD KR SHARMA
THANK YOU!