An explanation of innovation based heavily on the wikipedia definitions of innovation and the innovation models but using a simplified approach to help readers gain an overview of the nature of innovation in business and organisations.

1. ì
“Using
Technology
Better!”
Innova'on
Explained
TOMI
DAVIES
TechnoVision

2. Content
1. What’s
Innova.on?
2. What’s
NOT
Innova.on?
3. Business
Innova.on
4. Organisa.on
Innova.on
5. Innova.on
Sources
6. Linear
Model
of
Innova.on
7. Open
Innova.on
8. User
Innova.on
9. Innova.on
Process
10. Innova.on
Diffusion
11. Measuring
Innova.on
12. Conclusion

3. The
Great
Frontier…
CEO’s
want
it…..
Strategists
write
about
it….
Marketers
talk
about
it….
Managers
aim
to
deliver
it….
So
what
exactly
is
it….?

4. So
what
is
Innovation…?
Innova'on
is
about
solving
exis'ng
problems
with
a
new
idea,
device
or
process
that
is
significantly
beDer/faster/cheaper
than
before.
It
can
be
viewed
as
the
applica'on
of
beDer
solu'ons
that
meet
new
requirements,
unar'culated
needs,
or
exis'ng
market
needs
to
create
customer
(and
business)
value.
At
it’s
core,
the
aim
of
innova'on
is
to
create
significantly
more
value.

5. …and
what
is
not
innovation?
Innova'on
differs
from
inven8on
in
that
innova'on
refers
to
the
use
of
a
beDer
and,
as
a
result,
novel
idea
or
method,
whereas
inven'on
refers
more
directly
to
the
crea'on
of
the
idea
or
method
itself.
Innova'on
differs
from
improvement
in
that
innova'on
refers
to
the
no'on
of
doing
something
different
rather
than
doing
the
same
thing
beDer.

6. Business
In
business
and
economics,
innova'on
is
the
catalyst
to
growth.
Industries
incessantly
revolu'onize
the
economic
structure
from
within,
by
innova'ng
with
beDer
or
more
effec've
processes
and
products.
Entrepreneurs
are
con'nuously
look
for
beDer
ways
to
sa'sfy
their
consumer
base
with
improved
quality,
durability,
service,
and
price
which
come
to
frui'on
in
innova'on
with
advanced
technologies
and
organiza'onal
strategies.

7. Organisations
In
the
organiza'onal
context,
innova'on
may
be
linked
to
posi've
changes
in
efficiency,
produc'vity,
quality,
compe''veness,
market
share
and
others.
It
is
the
means
by
which
organisa'ons
either
create
new
wealth-­‐producing
resources
or
endow
exis'ng
resources
with
enhanced
poten'al
for
crea'ng
wealth.
All
organiza'ons
can
innovate.

8. Innovation
Sources
Innova'on
can
occur
as
a
result
of
a
focus
effort
by
a
range
of
different
agents,
by
chance,
or
as
a
result
of
a
major
system
failure.
Other
sources
of
innova'ons
include
changes
in
industry
or
market
structure,
in
local
and
global
demographics,
in
human
percep'on,
mood
or
meaning
or
end-­‐user
innova'on
where
an
agent
(person
or
company)
develops
an
innova'on
for
their
own
(personal
or
in-­‐house)
use
because
exis'ng
products
do
not
meet
their
needs.

9. Linear
Model
of
Innovation
The
Linear
Model
of
Innova'on
is
an
early
model
of
innova'on
that
suggests
technical
change
happens
in
a
linear
fashion
from
Inven'on
to
Innova'on
to
Diffusion.
It
priori'ses
scien'fic
research
as
the
basis
of
innova'on,
and
plays
down
the
role
of
later
players
in
the
innova'on
process.
Two
versions
of
the
linear
model
of
innova'on
are
oTen
presented:
§ "technology
push"
model
§ "market
pull"
model.
Inven'on
Innova'on
Diffusion

10. Open
Innovation
Open
innova'on
is
"innova'ng
with
partners
by
sharing
risks
and
rewards.”
it
is
understood
as
the
systema'c
encouragement
and
explora'on
of
a
wide
range
of
internal
and
external
sources
for
innova've
opportuni'es,
the
integra'on
of
this
explora'on
with
the
organisa'ons
capabili'es
and
resources,
and
the
exploita'on
of
these
opportuni'es
through
mul'ple
channels.

11. User
Innovation
User
innova'on
refers
to
innova'on
by
intermediate
users
(e.g.
user
companies)
or
consumer
users
(individual
end-­‐users
or
user
communi'es),
rather
than
by
suppliers
(producers
or
manufacturers).
User
innova'on
has
a
number
of
degrees:
innova'on
of
use,
innova'on
in
services,
innova'on
in
configura'on
of
technologies,
and
finally
the
innova'on
of
novel
technologies
themselves.

12. The
Innovation
Process
It
is
increasingly
agreed
that
innova'on
process
requires:
§ Iden'fying/recognising
the
macro/
micro
trends
and
customer/market
needs
that
drive
the
innova'on
§ Having
or
developing
competent
people
with
relevant
technology,
§ Having/Finding
adequate
financial
support.
§ Managing
the
complex
and
oTen
itera've
feedback
loops
between
marke'ng,
design,
manufacturing,
and
R&D.

13. Innovation
Diffusion
Master
Innova'on
diffusion
manifests
in
different
ways
in
various
cultures
and
fields
and
is
highly
subject
to
the
type
of
adopters
and
innova'on-­‐decision
process
but
is
generally
influenced
by
four
main
elements:
the
innova'on
itself,
communica'on
channels,
'me,
and
a
social
system.
This
process
relies
heavily
on
human
capital
as
the
innova'on
must
be
widely
adopted
in
order
to
self-­‐
sustain
with
the
categories
of
adopters
being
innovators,
early
adopters,
early
majority,
late
majority,
and
laggards.

14. Measuring
Innovation
Master
There
are
two
different
types
of
measures
for
innova'on:
the
organiza'onal
level
and
the
poli'cal
level.
The
measure
of
innova'on
at
the
organiza'onal
level
relates
to
individuals,
team-­‐level
assessments,
and
private
companies
from
the
smallest
to
the
largest.
For
the
poli'cal
level,
measures
of
innova'on
are
more
focused
on
a
country
or
region
compe''ve
advantage
through
innova'on.

15. Innovation
Types
Master
In
Breakthrough
Innova'on,
the
problem
is
well
defined
but
domain
experts
are
unclear
how
to
proceed
With
Sustaining
Innova'on,
the
problem
is
well
defined
and
the
domain
experts
know
how
to
proceed
In
Disrup8ve
Innova'on,
the
problem
is
unclear
but
the
domain
experts
have
the
knowledge
and
skills
to
proceed
With
Research
&
Development,
both
the
problem
and
solu'on
are
unclear
Breakthrough
Sustaining
R
&
D
Disrup've
Not
Well
Defined
Well
Defined
Problem
Defini8on
Not
Well
Defined
Well
Defined
Solu8on
Defini8on

16. Conclusion
Master
Innova'on
is
necessary
for
a
company
to
grow
with
purpose,
extend
the
product
life-­‐cycle
and
stay
relevant
in
compe''ve
markets.
It
means:
§ Crea'ng
outstanding
features
for
exis'ng
offers
or
developing
new
ones
§ Finding
new
ways
to
price
for
extrac'ng
value
from
customers
§ Finding
new
ways
to
support
customers
before,
during
and
aTer
sales
§ Finding
new
ways
to
delight
customers
during
every
interac'on
with
the
company
§ Finding
new
ways
to
to
significantly
improve
the
way
people
in
the
company
go
about
doing
their
work
§ Finding
new
ways
to
engage
with
suppliers
or
engage
with
different
types
of
suppliers
§ Finding
new
ways
to
send
the
company’s
offering
to
market

17. THANK
YOU!
TOMI
DAVIES
ceo@tvcng.com
+234
817
001
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