Innovation - The Key To Survival

INNOVATION – THE KEY TO SURVIVAL
STRAINNO - 6th February 2014

“Any Business Enterprise has two – and only these two
basic functions: Marketing & Innovation.

A Business is set apart from all other human organizations
by the fact that it markets a product / service.
Peter F. Drucker
(1909 – 2005)

The second function of a business therefore is Innovation.
It is not enough for the business to provide just any
economic goods or services; it must provide better and
more economic ones. It is not necessary for a business to
grow bigger; but it is necessary that it constantly grow
better.”

• A Small Creativity Test

• Some Quotes on Innovation
• What is Innovation?

• Some Innovation Stories
• Types of Innovation

• Trends in Innovation

• Why Innovation(For Businesses)?

• Why Innovation(For Professionals)?

© Copyright 2013. STRAINNO. All Rights Reserved.

Can Anyone Here Prove: Half of 13 is 11


I

LIKE

PARIS IN THE

THE SPRINGTIME


XI + I = X


“Innovation – Distinguishes Between
A Leader And a Follower.”

Steve Jobs (1955 – 2011)


Innovation Has Nothing To Do With How Much R&D
Dollars You Have. When Apple Came Up With The
MAC, IMB Was Spending At Least 100 Times On R&D.
It’s Not About Money. It’s About The People You Have,
How You Are Led And How Much You Get It.

“Innovation Is The Specific Instrument Of
Entrepreneurship. The Act That Endows Resources
With A New Capacity To Create Wealth”

Peter F. Drucker
(1909 – 2005)


“Defending Yesterday (i.e. not innovating) Is Far
More Riskier Than Making Tomorrow”

“We Cannot Solve Our Problems With The
Same Thinking We Used When We Created
Them”

Albert Einstein (1879 – 1955)


Examples of Innovation?


What is Innovation?

Innovation – is a better way of doing things (developing a
product, delivering a service or doing business) which has a
commercial implication and affects people’s lives positively;

sometimes also seen as a better solution to a problem with a
commercial implication and a positive impact over lives of people;


He was an American inventor and was the
founder of the McCormick Harvesting Machine
Company
3 Cent US Postage Stamps were issued in 1940
to commemorate C.H. McCormick
1975, McCormick was inducted into the Junior
Achievement U.S. Business Hall of Fame
Cyrus H. McCormick
(1809-1884)

was a member of the Wayne County Road
Commission (of Wayne County, Michigan), from
1906 to 1938

Edward N. Hines
(1870-1938)

In 1935, Hines was awarded the George S. Bartlett
Award for outstanding contribution to highway
progress

In 1972, he was inducted posthumously into the
Michigan Transportation Hall of Honor for his lifesaving innovation
In 2011, was honored with the first “Paul
Mijksenaar Design for Function” Award


Hospital


Mansukhbhai Prajapati With MittiCool - 2005


Kunwer Sachdev

Tulsi Tanti

•

•

Related Articles – From TOI & ET

http://articles.economictimes.indiatimes.com/2013-09-17/news/42148620_1_chiefmarketing-officer-indian-consumer-consumer-confidence

http://articles.economictimes.indiatimes.com/2013-12-30/news/45711162_1_tata-motorsnano-cheapest-car


• Product Innovation
• Process Innovation

• Business Model Innovation

This categorization is based on “what” is being innovated


Business Model Innovation Story 1

Chester F. Carlson


Business Model Innovation Story 2

Marc R. Benioff


• Reverse Innovation
• Social Innovation

• Jugaad Innovation
• Open Innovation

Here the focus is on “how” innovation is being done

What is Reverse Innovation and Why is It Called RI?

Glocalization – is the process of doing innovation in a developing country (e.g.
US, Europe) and then taking that to developing countries like India, China &
Brazil; whereas RI stands for the process of doing innovation in emerging
countries and then taking them to developed countries
Reverse Innovation is called so, because it is reverse to the traditional way
and flow of innovation known as Glocalization

√ RI @ GE

√ RI @ NH

√ RI in Thailand

Reverse Innovation Stories

√ RI @ Logitech
√ RI @ P&G

√ RI @ EMC


√ RI @ Deere & Company
√ RI @ Harman
√ RI @ PepsiCo

Costs $50,000
and a Single ECG
Scan costs $100

Weights around
140 Kg
Runs on
steady house
current

Comes with a 500 page
manual and expert
technicians are needed
to use this

Costs $400 and a
Single ECG Scan
costs ₡ 10
Weighs less than
a filled coke can

Runs on battery and
once charged can
give up to 750 ECG
scans


Easy enough controls with
very few buttons and
needs minimal / no
training at all

Though started in India currently is being
sold at 225 countries across the globe
including the USA

Costs $50,000 or
more

Open Heat Surgery in US

Hospitals are profit
making enterprises with
margin of 12% (avg)


Quality is determined
by mortality rate within
first 30 days from
operation = 2% (avg)

Costs $1,800

Open Heat Surgery in NH – BLR, India
Hospitals are profit
making enterprises
with margin of 15%
(avg)

1.
2.

3.
60% of its patients
are treated at a
discounted price or
for free

•

•
•


Mortality rate within
first 30 days from
operation = 1.2%
(avg)

Indians have relatively weak hearts
Indians do not go for routine health checkups; hence
by the time they end up at the surgery, the conditions
have worsened
Pollution in Indian is too high which has a negative
impact on survival after

NH is opening its facilities in Cayman Island in USA,
with a capacity of 2000 beds in partnership with
Government of Cayman Island
Largest no. Of paediatric heart surgeries in the world
Asia’s largest cardiac care centre

Organizations need Innovation for
one purpose only: To Survive

In 1917 Forbes published his first list of 100 largest American
companies. In 1987 Forbes republished this original list and did a
comparison to find: 61 of those companies did not exist and out of
remaining 39, only 18 had managed to remain in top 100

Source: Forbes’ Site

Over 40% of the companies that were at the top of the Fortune 500 in
2000 were no longer there in 2010.

Source: Brian Solis’ Future of Business


What Factors Affect Survivability Of Any
Business and How Are These Factors
Changing?


Factors Affecting Business Survival

• Customers (Change in awareness, perception, demographics etc)
• Technology

• Channels of Business (Networks)
• Environmental Changes

– A worsening global economy

• Resources

– An avalanche of new regulations to come


How Are These Factors Changing: Some Facts


Customer

80% of big companies described themselves as delivering “superior”
service, but only 8% of customers say they have experienced “superior”
services from these companies.

Source: The New Yorker

In the past year, 2 in 5 consumers or more in most markets indicate that
they have not completed a transaction or made an intended purchase
because of poor customer service.

Source: America Express Global Customer Service Barometer

$83 billion is estimated to be lost by businesses (only in US) every year
due to poor customer service.

Source: Genesys

It takes 12 positive experiences to make up for one unresolved negative
experience.

Source: HelpScout


Environment

India will add a million new workers every month for the next two
decades. This is equivalent to the entire population of Sweden joining
the labour force in India, every year for the next two decades.

Source: World Bank, 2013

In Purchasing Power Parity (PPP) terms, India became the 3rd largest
economy in the world in 2011, behind the US and China, and pushing
Japan to the 4th place.


Small and Midsized businesses account for over 99% of all businesses in
developed economies and 40-70% of value added in the economy .

Source: OECD “Electronic & Mobile Commerce”, 2013

Note: PPP is a technique used to determine the relative value of
different currencies

Demographics

29% Millennials find love through FB, while 33% are dumped via wall
posts or text messages.

Source: Brian Solis’ Future of Business, 2013

Gen Y will form 75% of the workforce by 2025 and are actively shaping
corporate culture and expectations. Only 11% define having a lot of money
as a definition of success.


Only 7% of Gen Y works for a Fortune 500 company as start-ups
dominate the workforce for this demographic.



Resources

The economic value of assets at risk from floods is expected to be about
$45 trillion by 2050.

Source: OECD “Water: Governments Must Deal with Rising Risks, 2013

By 2050 more than 40% of the world’s population will live under severe
water stress and nearly 20% could be exposed to floods.

Source: OECD “Water: Governments Must Deal with Rising Risks, 2013

In 1990, girls primary school enrolment rate in developing countries
was only 86% of boys. By 2011, it was 97%.


Asian students account for 53% of all students studying abroad
worldwide – the largest numbers of international students are from
China, India and Korea.

Source: Pew Research Center, 2013

Technology

80% of data used on mobile devices is received via WiFi connections to
fixed networks.

Source: OECD Communications Outlook, 2013

The average subscription rate of mobile Internet access in developed
countries as a whole rose to 56.6% in June 2012, up from just 23.1% in
2009.

Source: OECD Communications Outlook, 2013

In 2010, Hans Vestberg, CEO of Ericsson, predicted that by 2020, 50
billion devices would be connected to the internet.

Source: GIGAom, 2013

The next wave of computing is “wearables” (or “drivables” “flyables”,
“scannables”)


Source: Pew Mary Meeker’s Internet Trends, 2013

Innovative Companies

These companies have
established a complete,
structured, scalable
approach to Innovation

They have processes to
identify, evaluate and
prioritize Innovation
projects


And have a Culture that
promotes and rewards
Innovative thinking

You need to Innovate: To Survive

Innovation can help you:

 Find new ways of working

 Find new ways to make money

 Create new business opportunities

 Create new products, services and processes

 Improve old products, services and processes

 Develop solutions to complex business problems
 Revitalize markets

 See problems as opportunities
 Become more productive

 become indispensable to your organization


Guidelines for Innovation

 Try to find more & more problems – and explore the
hidden opportunities

 Be Flexible and Open Minded

 Always explore more than one way of doing things
 Improve continuously

 Create an Innovation Infrastructure which is

Comprehensive, Structured, Sustainable and Scalable


Thank You
Deepak.chaudhury@strainno.com
Web – www.strainno.com
Mobile – 9686 898 400

Innovation - The Key To Survival

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