Dr. Dileep Bhandarkar gave a presentation on perspectives on innovation. He discussed his career journey working in research and development roles at various technology companies. He defined different types of innovation including technical, process, and administrative innovation. Dr. Bhandarkar emphasized that innovation is about improving existing products and services and creating new ones to satisfy customer needs. True innovation disrupts existing markets by applying a new set of values to create a new market.

1. PERSPECTIVES
ON
INNOVATION
DR. DILEEP BHANDARKAR
IEEE LIFE FELLOW
INNOVATION AND BREAKTHROUGH FORUM 2016
23 JANUARY 2016
HONG KONG

2. INNOVATION JOURNEY
• 1970: B. Tech, Electrical Engineering (Distinguished Alumnus)
• Indian Institute of Technology, Bombay
• 1973: PhD in Electrical Engineering
• Carnegie Mellon University
• Thesis: Performance Evaluation of Multiprocessor Computer Systems
• 4 years - Texas Instruments
• Research on magnetic bubble & CCD memory, Fault Tolerant DRAM
• 17.5 years - Digital Equipment Corporation
• Processor Architecture and Performance
• 12 years - Intel
• Performance, Architecture, Strategic Planning
• 5.5 years - Microsoft
• Distinguished Engineer, Data Center Hardware Engineering
• Since January 2013 – Qualcomm Technologies Inc
• VP Technology, Data Center Group

3. DON’T BE AFRAID!
•“Follow the path of the unsafe, independent thinker.
Expose your ideas to the danger of controversy.
Speak your mind and fear less the label of
''crackpot'' than the stigma of conformity.”
– Thomas J. Watson

4. WHAT IS INNOVATION?
• The process of translating an idea or invention into a good or service that creates value or for
which customers will pay.
• To be called an innovation, an idea must be replicable at an economical cost and must satisfy
a specific need.
• Innovation involves deliberate application of information, imagination and initiative in deriving
greater or different values from resources, and includes all processes by which new ideas are
generated and converted into useful products.
• In business, innovation often results when ideas are applied by the company in order to further
satisfy the needs and expectations of the customers.
Read more: http://www.businessdictionary.com/definition/innovation.html#ixzz3vdjSXCOE

5. DEFINITION OF INNOVATION
Basic definition
Introduction of new ideas that add ‘value’ to a firm’s activities
OECD The Oslo Manual Page 16
http://www.oecd.org/sti/inno/2367580.pdf
• introduction of a new product or a qualitative change in an
existing product
• process innovation new to an industry
• the opening of a new market
• development of new sources of supply for raw materials or other
inputs
• changes in industrial organisation

6. INVENTION
A new manmade device or process

7. INNOVATION
•A better way of doing things
•An improvement

8. 1st Cell Phone
Motorola
1983
Blackberry
2003
Invention
Alexander
Graham Bell’s
Phone
1870
Old Phone
Evolution
of the
Telephone iPhone 2007

9. INNOVATION TYPES
•Innovation is simply the process of creating and
implementing new ideas
•Three main types of innovation exist:
1) Technical Innovation
2) Process Innovation
3) Administrative Innovation

10. TECHNICAL INNOVATION
• Technical innovations are defined as new products and processes
and major technological modifications to products and processes.
An innovation is considered performed if it is introduced to the
market (product innovation) or implemented in the production
process (process innovation). Innovation includes many research,
technological, organizational, financial and commercial activities.

11. TECHNICAL INNOVATION
• Technical innovation is simply the creation of a new product or service.
• Some examples:
- A new line of automobiles
- The introduction of cellular telephones

12. ROLE OF RESEARCH & DEVELOPMENT
• R&D represents only one of these activities and can take place during various
stages of the innovation process. It can play not only the role of the original
source of the innovation ideas but also the role of problem solution
framework, which can be turned to at any stage of the implementation.
OECD, Frascati Manual 1992
http://www.uis.unesco.org/Library/Documents/OECDFrascatiManual02_en.pdf

13. PROCESS INNOVATION
• Process innovation is achieved through the creation of a new means of
producing, selling, and/or distributing an existing product or service.
• Some examples are:
- Online Banking, etc.
- E-commerce

14. ADMINISTRATIVE INNOVATION
• Administrative innovation is the creation of a new organization design which
better supports the creation, production and delivery of services or products.
• Examples:
• Virtual Teams: any task-focused group that meets w/out all members being in the same
room or even working at the same time.
• Just In Time Manufacturing Supply Chain

15. CREATIVITY
• The ability to see a problem in several dimensions
• The ability to truly understand the problem at
hand
• The ability to solve the problem in a more
efficient or effective way

16. INNOVATION AND BUSINESS
• "Business has only two functions, innovation and marketing."
- Peter F Drucker
• “Creativity is thinking up new things. Innovation is doing
new things.”
- Theodore Levitt
• “Innovation distinguishes between a leader and a follower.“
- Steve Jobs

17. THE INNOVATION PROCESS
ACTIVITIES
OUTPUTS
Basic research
Discoveries
Ideas
Applied research
Information collation
Inventions
Blueprints
Plans
Development
Testing
Prototypes
Beta-versions
Investment
Innovation
(product or process)
FIRM-LEVEL INITIATIVES
EXTERNAL-
OR FIRM-LEVEL
INITIATIVES
MARKET-LEVEL
PROCESS
DIFFUSIONCOMMERCIALISATIONRESEARCH AND DEVELOPMENT
Adoption or
purchase decision
Market penetration
Adaptation
Improvement
STAGE
AGENTS
21 2 3 4 5
Source: Greenhalgh and Rogers (2010)

18. INVENTION, INNOVATION, DIFFUSION
(SCHUMPETERIAN TRILOGY)
• Invention: creation of an idea to do or make
something (profitability not yet verified)
• Innovation: new product/ process commercially
valuable i.e. successfully developed inventions.
• Diffusion: the spread of a new
invention/innovation throughout society or at least
throughout the relevant part of society.
• Without this cannot gain full benefits
• Some of this represents ‘spillovers’ or ‘positive
externalities’

19. SCIENTISTS, KNOWLEDGE AND TECHNOLOGY
Scientists
• Discover knowledge by research
• Disseminate knowledge (open science?)
• Knowledge is public good(non-rival in use), hence created
externalities
• Universities, government labs, some large firms
• It may represent the basis for technological advances
Technology
• Application of knowledge to ‘production’
• Firms driven by profit incentive
• Private good: investment (R&D) projects, appropriate, use of
intellectual property

20. SCIENCE ENABLES TECHNOLOGY

21. OSLO MANUAL
• Product innovation
• A good or service that is new or significantly improved. This includes significant
improvements in technical specifications, components and materials, software in
the product, user friendliness or other functional characteristics.
• Process innovation
• A new or significantly improved production or delivery method. This includes
significant changes in techniques, equipment and/or software.
• Marketing innovation
• A new marketing method involving significant changes in product design or
packaging, product placement, product promotion or pricing.
• Organisational innovation
• A new organisational method in business practices, workplace organisation or
external relations.

22. TECHNOLOGICAL & SOCIAL INNOVATIONS
• Technological innovations – based on specific technology, invention, discovery,
• Social innovations – in critical historic periods more important than
technological ones (mail, educational systém, social systém, health care, …)

23. INNOVATION CLASSES
• Sustaining Innovation that does not affect existing markets. It may be either:
• Evolutionary innovation that improves a product in an existing market in ways that customers are expecting
(e.g., fuel injection)
• Revolutionary (discontinuous, radical) innovation that is unexpected, but nevertheless does not affect existing
markets (e.g., the automobile)
• Disruptive Innovation that creates a new market by applying a different set of values, which
ultimately (and unexpectedly) overtakes an existing market (e.g., the lower-priced Ford Model T)
• Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which
a product or service takes root initially in simple applications at the bottom of a market and then
relentlessly moves up market, eventually displacing established competitors. - See more at:
http://www.claytonchristensen.com/key-concepts/#sthash.C9TVaUe3.dpuf

24. SUSTAINING VS DISRUPTIVE INNOVATION
Source: Clayton Christiansen

25. DISRUPTIVE INNOVATION
• As companies tend to innovate faster than their customers’ needs evolve, most organizations eventually end
up producing products or services that are actually too sophisticated, too expensive, and too complicated
for many customers in their market.
• Companies pursue these “sustaining innovations” at the higher tiers of their markets because this is what has
historically helped them succeed: by charging the highest prices to their most demanding and sophisticated
customers at the top of the market, companies will achieve the greatest profitability.
• However, by doing so, companies unwittingly open the door to “disruptive innovations” at the bottom of the
market. An innovation that is disruptive allows a whole new population of consumers at the bottom of a
market access to a product or service that was historically only accessible to consumers with a lot of money
or a lot of skill.
• Characteristics of disruptive businesses, at least in their initial stages, can include: lower gross margins,
smaller target markets, and simpler products and services that may not appear as attractive as existing
solutions when compared against traditional performance metrics. Because these lower tiers of the market
offer lower gross margins, they are unattractive to other firms moving upward in the market, creating space
at the bottom of the market for new disruptive competitors to emerge.
- See more at: http://www.claytonchristensen.com/key-concepts/#sthash.C9TVaUe3.dpuf

26. INNOVATION PROCESS
• Research and development (R&D)
• Production
• Marketing
Innovation is an opportunity for something new & different.
It is always based on change.
Innovators do not view any change as a threat but as an opportunity

27. CHAIN LINK MODEL OF INNOVATION
Source: Organisation for Economic Co-operation and Development OSLO Manual

28. EVOLUTION OF COMPUTERS
“The phone in your pocket will be as much of a computer as anyone needs”.
– Dr. Irwin Jacobs, Qualcomm Founder, 2000
Mainframes
Minicomputers
IBM PC
Desktops
Notebooks
Tablets
Smartphones

29. MY INNOVATION EXPERIENCE
• Failed: Magnetic Bubble Memory versus Hard Disk Drives
• Evolution often beats Revolution especially when incumbent is strong
• Minicomputers
• Success against Mainframes
• Failure: Denial against RISC Workstation Technology Threat
• Personal Computers
• Success against RISC Workstations
• PC Technology eventually used in Enterprise Servers
• Volume Economics Matters!
• Smartphone Technology is the Next Wave

30. LESSONS LEARNED
• Understand what the customer needs but don’t ask what he wants
• Automobile vs Faster Horse
• Never underestimate the incumbent
• Denial is not the name of a river in Egypt
• Strategy without Execution is Doomed
• What worked in the past may not work in the future
• There is often a Time and Place for New Ideas
• Challenge Conventional Wisdom but Be Real
• Do not wear Rose Colored Glasses – Measure The Situation Realistically
• Understand the Risks
• Monetization Strategy is important
• Business Plan is Essential
• Time To Market Matters!

31. CLAYTON CHRISTIANSEN QUOTES
• “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.”
• “Motivation is the catalyzing ingredient for every successful innovation. The
same is true for learning.”
• “Disruptive technologies typically enable new markets to emerge.”
• "Generally, disruptive innovations were technologically straightforward,
consisting of off-the-shelf components put together in a product architecture
that was often simpler than prior approaches. They offered less of what
customers in established markets wanted and so could rarely be initially
employed there. They offered a different package of attributes valued only
in emerging markets remote from, and unimportant to, the mainstream.“
https://www.youtube.com/watch?v=qDrMAzCHFUU

32. FAVORITE QUOTES
• “Don’t be encumbered by past history, go off and do something wonderful.”
- Bob Noyce, Intel Founder
“The only way to be truly satisfied is to do what you believe is great work. And
the only way to do great work is to love what you do. If you haven’t found it
yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when
you find it.” - Steve Jobs
• “Be A Nerd” – Mark Zuckerberg
• The difference between theory and practice is always greater in practice than
it is in theory!

33. RECOMMENDATIONS
• Solve the correct problem with effectiveness and efficiently
• Manage innovation as a project
• Analyze risks
• Use models, scenarios, simulations, proofs of concept
• Study examples of succesful and unsuccesful innovation projects
• Understand Strengths, Weaknesses, Opportunities, and Threats

34. LEARN TO WEAR MANY HATS!

35. QUESTIONS?