The document discusses innovation strategies and growth. It provides examples of innovative companies and strategies. Some key points discussed include the importance of creativity and innovation for competitiveness, different types of innovation like product, platform, and business model innovation. Challenges to innovation in India and the projected evolution of India's innovation landscape are also summarized. The document concludes with several takeaways about harnessing creativity, competing through innovation, and applying segmentation strategies for local and global impact.

1. Innovation Strategy
& Growth
by
Firdaus Khan
Assoc. Prof & Trainer at ICBM-SBE
20 December 2012 firdaus@icbm.ac.in 1

2. “It was the best of times, it was the worst
of times,
it was the age of wisdom, it was the age of
foolishness,
it was the epoch of belief, it was the epoch
of incredulity,
it was the season of Light, it was the
season of Darkness, …
we had everything before us, we had
nothing before us”
20 December 2012 firdaus@icbm.ac.in 2

3. SURPRISE!!!
Q: Which is the number one mobile payment
country on earth?
A: It’s Kenya!
20% of its entire GDP passes through its
service mPesa.
20 December 2012 firdaus@icbm.ac.in 3

4. GUESS WHAT !!!
Q: Per capita, which country has the largest
audience/users of youtube?
A: Saudi Arabia
The largest category of videos watched is
educational. The largest demographic is
middle aged women
20 December 2012 firdaus@icbm.ac.in 4

5. GOTCHA !!!
Q: Where is the world's largest collection of
fresh water?
A: Egypt-Libyan desert.
Remarkable solar technology is being
invented to more reliably pump it and
affordably extend food and fertility of land
20 December 2012 firdaus@icbm.ac.in 5

6. Today’s Race for Profitability is..
• not a 100m dash,
• its rather a decathlon
– where success comes from all round
excellence in multiple sports
- sitting out is not an option &
- competing effectively entails mastering a
number of competencies in a balanced
way.
20 December 2012 firdaus@icbm.ac.in 6

7. Clued In
• Confederation of British Industries, UK,
2011 Survey finding:
- Creativity & Innovation were cited by 37%
of businesses as important to
organisational competitiveness (4th among
15 factors)
- 2012 IBM survey reveals: 2 out of 3 CEOs
expect to effect fundamental change in
their organisations through Innovation
20 December 2012 firdaus@icbm.ac.in 7

8. Innovation In India
MIT's Technology Review 2011 Awards
• Ajit Narayananand (Innovator of the Year)
‘Avaz’ tool for speech impaired
• Alefia Merchant (Humanitarian of the Year)
low-cost, readily-available digital camera
technology to photograph a child's eye for
signs of vision-threatening disease
• Gautam Kumar (Social Innovator of the
year) system to detect LPG leakage & warn
concerned people over cell phones
20 December 2012 firdaus@icbm.ac.in 8

9. iWeb Technology Solutions
• Akshay Shah has created a business
process management generator which can
create applications on the fly.
20 December 2012 firdaus@icbm.ac.in 9

10. Innoz Technologies Haryana
• Deepak Ravindran created a mobile based
search engine to deliver information on
any topic.
• His mobile based service, SMSGyan,
promises information on almost any topic
to the user without asking him to click on
any link.
20 December 2012 firdaus@icbm.ac.in 10

11. HCL Technologies
20 December 2012 firdaus@icbm.ac.in 11

12. Google’s 70-20-10 Rule
• 70% Core efforts, 20% Adjacent areas
and expansion, and 10%, anything goes.
• “As we have expanded our breadth of
offerings, it's actually harder and harder to
find the 10% out there. But I think that's
important -- to let people be really creative
and think outside the box."
-CEO Larry Page
20-Dec-12 firdaus@icbm.ac.in 12

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14. Creativity is …
• … the generation of new ideas leading to
- new ways of looking at existing problems
- seeing new opportunities
-exploiting emerging technologies
-exploiting changes in markets
20 December 2012 firdaus@icbm.ac.in 14

15. Innovation is …
• …the successful exploitation of new ideas
resulting in
- new products / services
- new markets
- new processes
- new business models
20 December 2012 firdaus@icbm.ac.in 15

16. Breaking the Innovation Myths
Myth1: Innovation in itself Myth 2: Innovation is the
is valuable same in every company
Innovation should provide Comp. Adv.
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17. 20 December 2012 firdaus@icbm.ac.in 17

18. Four Innovation Zones
Line Extension Enhancement Marketing Experiential
Innovation Innovation Innovation Innovation
Customer
Platform Intimacy
Innovation
Zone
Product
Product Category
Innovation
Leadership Renewal
Renewal Innovation
Zone Zone Harvest
& Exit
Operational
Excellence
Zone
Disruptive Application Value Engineering Integration Process Business Model
Innovation Innovation Innovation Innovation Innovation Innovation

19. Innovation Types for Growth Markets
Product
New Existing
Disruptive Application
New
Innovation Innovation
Market
Product Platform
Existing
Innovation Innovation

20. Application Innovation
(Existing Product, New Market)
• Greenfield opportunities to design & build
products & services with innovative twists
on best-in-class equivalents in
established markets.
• LG
• Haier
• Dabur
• Tanishq
20-Dec-12 firdaus@icbm.ac.in 20

21. Product Innovation
(Existing Market, New Product)
• Reverse Innovation & Bottom-of-Pyramid
Strategies
• Unilever’s Pureit filters
• Airtel Money
• Tata Nano, Swach filters
• Nokia Aasha
20 December 2012 firdaus@icbm.ac.in 21

22. Platform Innovation
(Existing Market, Existing Product)
• Pacific Direct -Luxury Hotel Amenities &
Guest Toiletries is now on Twitter offering
product related news & hotel gossip
• Indian Railways offers mobile
reservations & paperless ticket
• Brand using social media for customer
engagement. Top brands on Facebook are
TataDoCoMo, ICICI, Amity University &
Fastrack.
20 December 2012 firdaus@icbm.ac.in 22

23. Disruptive Innovation
(New Market, New Product)
• Markets without 20th century technologies,
ripe for 21st century innovations
• Africa: poor banking facilities, migrant
workers
• Vodafone has bridged the gap with m-Pesa
mobile payment service
• 250,000 subscribers in its 1st year
• Has now become Kenya’s leading financial
services company
20 December 2012 firdaus@icbm.ac.in 23

24. Business Model Innovation
• IBM radically revamped its functions in
Asia, moving
- human resources to Manila,
- accounts receivable to Shanghai,
- accounting to Kuala Lumpur,
- procurement to Shenzhen &
- customer service to Brisbane.
20-Dec-12 firdaus@icbm.ac.in 24

25. Hot Product + Revenue Stream
= New Business Model
• Pheed is a site that allows users to post
any type of media--photos, videos, audio,
text, live broadcasts--and charge for the
content.
• In 6 weeks, the site has already grown to
over a million users, including celebrities
like Miley Cyrus, and it’s gone viral in
France.
20 December 2012 firdaus@icbm.ac.in 25

26. Value Innovation
Company’s actions favorably affect both its
cost structure and its value proposition.
Cost savings Costs Buyer value is
are made by lifted by
eliminating and raising and
reducing the creating
Value
factors an Innovation elements the
industry industry has
competes on. never offered.
Buyer Value
20-Dec-12 firdaus@icbm.ac.in 26

27. Value Innovation
20-Dec-12 firdaus@icbm.ac.in 27

28. Open Innovation
• IBM’s Eclipse Platform
• P&G’s Connect + Develop platform
• Appfest in Hyderabad
• Internet of Things
• IITs in India:
- IIT-Raj: Aakash
- IIT-Kanpur: Jugnu satellite & MatchBox
railway derailment detection device
20-Dec-12 firdaus@icbm.ac.in 28

29. Jugaad
Innovation in a Resource strapped Environment
Bicycles, car parts, old suitcases….
Six principles :
• seek opportunity in adversity,
• do more with less,
• think and act flexibly,
• keep it simple,
• include the margin and
• follow your heart
20-Dec-12 firdaus@icbm.ac.in 29

30. Innovation through Softscaling
A left and right brain combination of quantitative optimization
and emotion, linked together with data-informed empathy
20 December 2012 firdaus@icbm.ac.in 30

31. Challenges in Indian Context
• Nirmalya Kumar (Mktg Prof. LSB, ‘India
Inside’) states 3 hurdles to India reaching
its full potential in Innovation –
- Intellectual Property Protection System
- Venture Capitalist Ecosystem
- Mirage of mighty Labour Pools.
20-Dec-12 firdaus@icbm.ac.in 31

32. Projected Evolution
of India’s Innovation Landscape
1: R&D & IT innovation veterans (of 5-
10yrs) will make entrepreneurial leaps
2: For Indian companies when growth slows
down or cost goes up, innovation will
emerge as the competitive plank. For this
they will hire people out of the MNC
captives to grow innovation capabilities.
20-Dec-12 firdaus@icbm.ac.in 32

33. TAKEAWAY #1
• Creativity is an abundant natural resource
– harness it.
• Creativity has to be channeled in the right
way. It is a necessary but not sufficient
condition for success.
20-Dec-12 firdaus@icbm.ac.in 33

34. TAKEAWAY #2
• Competing for a share of a contracting
market is a ‘second best’ strategy
• Stimulating the demand side is a ‘first best
strategy.’
• Companies pursuing a first best strategy
FAR outperform those with a second best
strategy.
20-Dec-12 firdaus@icbm.ac.in 34

35. TAKEAWAY #3
• Innovation strategy is akin to taking the
road less travelled,
- challenging business boundaries
- & mental models
- exploring the realm of possibilities
20-Dec-12 firdaus@icbm.ac.in 35

36. TAKEAWAY # 4
• Segmentation strategies should be applied
for local relevance & global scale.
• Innovation = Market opportunities +
Corporate Capabilities + Customer related
Insights
• Do not lend your eyesight to others!
20 December 2012 firdaus@icbm.ac.in 36

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