The scope of innovation Product Process Position Paradigm Incremental innovation Radical innovation Disruptive innovation

1. Innovations models
Sergio Pinzon

2. Agenda
ICE BREAKER SCOPE OF
INNOVATION
INNOVATION
APPROACHES
EXERCISES ASSIGNMENT
2 GUIDELINES
HOMEWORK

3. The innovation dilemma
• https://www.youtube.com/watch?v=
yUAtIQDllo8

4. Discussion
1. Can you list the different types of innovations?
2. After viewing the clip, how would you define the difference
between sustaining innovation and disruptive innovation?
3. What factors contribute to facilitating innovation?
4. What are the stages of the innovation process?

5. The scope for innovation

6. Product innovation
• A new design of car
• A new insurance package for accident-prone babies
• A new home-entertainment system

7. Product innovation
Changes in the things (products/services) an organization offers

8. Process innovation
Changes in the ways these offerings are created and delivered
Henry Ford's invention of the world's first moving assembly line.
E commerce sites
Amazon
AliExpress
E bay
3D printing

9. Position innovation
ONLINE HOME RENTAL LOW-COST AIRLINES
Changes in the context into which the products/services are introduced

10. Paradigm innovation
Changes in mental models – include the shift to low- cost airlines, the provision of online insurance and other
financial services and the reposition
• Ownership to rental
• Mass customization and co-creation
• Service innovation

11. Activity 1- Example of scope innovation
Provide your example of scope innovation:
a) Product
b) Process
c) Position
d) Paradigm

12. Innovation approaches
Incremental innovation focuses on
smaller process improvements and
changes
Examples include the typical improvements
and advances in current products and
services.
Radical innovation includes major
product or process changes or new
product development
It’s the launching of inaugural breakthroughs
such as personal computers and overnight
mail delivery
Disruptive innovation goes beyond radical innovation and transforms
business practice to rewrite the rules of an industry. In other words, the
business practice of an entire industrial sector could be changed radically.

13. This Photo by Unknown Author is licensed under CC BY-
SA
– Builds on a company’s existing resources and capabilities
– Fits with its existing business model
– Fits with existing customer base
Routine(orIncremental)Innovation

14. Page 21
-
• In 2012, a tractor company began
equipping their tractors with
sensors, so farmers could track
and monitor their yields
• They knew the potential of big
data and decided to leverage the
technology for their bottom line
RadicalInnovation:Example
“Radical innovation focuses on long-term impact and may involve displacing current
products, altering the relationship between customers and suppliers, and creating
completely new product categories.”
Hopp et al, 2018

15. DisruptiveInnovation
15
innovations, changes, processes
that challenge the status quo (and
dominant design) of an industry and
have the potential to completely
upset the make-up of the industry
AKA disruptive innovation /
disruptive change
Requires a new business model, but
not necessarily a technological
breakthrough
Phrase introduced by Bower & Christensen (1995):

16. https://www
.youtube.com/watch?v=w3qt04mYI
P
n
ag
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e 26
Disruptivetechnology:examples
• 3D printing disrupts manufacturing
• Manufacture locally Low-cost production
• Speeds up production
• Lowers prototyping costs/time
• Makes new designs possible
• Consumers get what they need from each other
• Pay for access to goods and services
• rather than owning them
• Collaborative commerce disrupts hospitality, e
commerce, retail

17. Exercise 2- Example of
innovations approach
• Please provide two examples each for the following:
• a. Incremental innovation
• b. Disruptive innovation
• c. Radical innovation

18. Research the innovations listed below and define the scope and approach of each. Provide an
overview of the below innovations and explanation for your reasoning
ASKA A5
A flying car V Taiwan
Automated Decision-
Making system in Australia
My gov, Smart Gates
Intermittent Fasting

19. Final assignment Preparation advice
Connect with the topic
Find passion within it
Relate the topic to your career and personal interests to make it more relatable and
engaging
Aim for paragraphs of 5-7 lines
Include references to support your points

20. Homework
discussion
Research the given
companies and gather
insights on:
• Business models
• Types of innovation
• Approaches to innovation
• Role of innovation and
creativity
• Avant-Garde Business Model
Elements
• Elements of Company
Success (culture of
innovation)
• Returnr
• Vanguard Laundry
• Hysata
• New Story
• Brick Saey