The document discusses 9 innovation principles: 1) Co-creating value with customers by developing unique solutions, 2) Involving users early in the innovation process to understand problems, 3) Accessing globally-dispersed knowledge as no single location provides all needed knowledge, 4) Forming collaborative networks as no single company has all needed knowledge, 5) Leveraging dynamics between large and small companies to foster entrepreneurship, 6) Environmental concerns driving new markets, 7) Meeting needs in developing countries which also drives innovation elsewhere, 8) Collaboration between public and private sectors spurring innovation, and 9) Technology enabling but not driving company innovation.

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Dr.Rajesh Patel, Director,NRV MBA

2. Innovation Principle-1
Co-creating Value with Customers
In the new age of innovation, companies will co-create unique
individual solutions with customers. The number of
customers each company can co-create with might, in some
cases, be virtually unlimited.
Of course, there has always been a market for unique
products, but this has tended to target a relatively small and
exclusive customer group, and has been costly and time-
consuming. Companies will need to use digital platforms to
handle a lot of customers – in real time – at the same time. In
addition, companies must collaborate with other companies
through different networks, sometimes forming partnerships.
1/30/2015 4:32:45 PM 2Dr.Rajesh Patel, Director,NRV MBA

3. Innovation Principle 2
Users involvement in Innovation Processes
Companies have started involving users at an earlier
stage in the innovation process. Companies are
observing users to understand what problems they
face and need solved, and are including users at the
beginning of the innovation process. By carefully
planning user involvement in the innovation process,
companies get access to user knowledge which can be
crucial for developing new concepts and market-
shaking innovations.
1/30/2015 4:32:45 PM 3Dr.Rajesh Patel, Director,NRV MBA

4. Innovation Principle 3
Accessing and Combining Globally-Dispersed Knowledge
No single location alone can provide all the knowledge
required for innovation, in particular for discontinuous
innovation in the form of new products and solutions or new
business models. The innovation process is becoming global,
requiring companies to access and combine knowledge that is
available in different locations around the world. Certain
knowledge elements can be codified and accessed at a distance
, but other knowledge elements are of a tacit and context-
specific nature, and remain embedded in their original
localities.
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5. Innovation Principle 4-
Forming Collaborative Networks and Partnerships
No single company has all the elements of knowledge
required to innovate on their own. Companies are
forming collaborative networks and partnerships for
innovation. The increasing complexity related to
innovation today calls for a combination of skills,
which can be obtained by collaborating across different
types of companies. No single company possesses the
vast amounts of specialist knowledge that is needed to
solve today’s market challenges and create new and
valuable solutions.
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6. Innovation Principle 5
Levering Dynamics between Large Companies and
Entrepreneurs
Large companies use a range of methods to become more
innovative. As companies grow and become big, they tend
to lose some of the innovative capacity which was present
when they were smaller or newly-started. Large companies
are therefore creating programmes to foster
entrepreneurship internally, or working together with
start-ups to take advantage of the knowledge and
innovative culture held within the smaller companies.
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7. Innovation Principle
6
Environmental Concerns drive Innovation
New markets are being formed in response to
the environmental challenges we face. Increased
awareness of global challenges is creating
demand for environmentally-friendly products.
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8. Innovation Principle
7
Needs in Developing Countries drive Innovation
New products and services are being developed to meet the needs of consumers in
emerging markets. In order to deliver goods and services to markets in developing
countries, firms must re-think their traditional business models – using new ways
of selling and distributing products, levering new types of partners and employing
new types of competencies in innovation teams. In many cases, the innovations
developed for the developing countries also have a market value in the developed
world. The insights gained from developing products and services for consumers
in developing countries drive innovation everywhere.
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9. Innovation Principle
8
Welfare System Concerns drive Innovation
Companies have started seeing the public sector as a
market. Instead of merely supplying the public sector with
products and services demanded, companies have started
working together with the public sector to deliver new
innovative solutions. The mix of public and private
collaboration is spurring innovation in new areas.
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10. Innovation Principle
9
Technology’s Role as an Enabler
of Innovation
In the new era of innovation, technology will become an
indispensable enabler of company innovation, but new technology
will be less and less the driver of company innovation. Already,
digital technology is an indispensable element in nearly all
innovation, and the internet will enable companies to innovate in
new ways., where service innovation and new business models will
play a major role.
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