This document discusses how innovation across an organization's value chain can drive growth. It provides examples of product, process, and business model innovation at companies like Tata Motors, Tata Steel, Amul, and Dabbawalas. The document emphasizes that innovation should be institutionalized in an organization's culture, strategy, operating practices, and performance measures. Regular idea generation and continuous improvement should be part of an innovative company's DNA, as exemplified by 3M's ongoing new product development. Innovation can be driven from the top-down or bottom-up in an organization.

1. Unleashing Innovation Across the

Value Chain – A Mantra for Growth
Presented By:
Ayush Gulati (ayush.gulati@greatlakes.edu.in)
Guneet Singh Arneja (guneet.arneja@greatlakes.edu.in)
Great Lakes Institute of Management

2.  Market:
o To gain competitive edge.
o To protect and reinforce market share
 People and organization:
o To attract and retain high caliber staff.
o To attract alliance partners
 Financial:
o To attract funding
o To raise margins and profitability
 One piece of evidence: According to
a study by BCG(2010), for 72% companies, innovation is one of
the top three priorities.

3.  Product Innovation: Be it disruptive or incremental, can
increase profitability, by either increasing revenues, or
by reducing costs. Examples:
o Tata Motors: Disruptive Product Innovation implementation.
o Jaipur Foot: Development of prosthetic limb that matches active
life style
 Process Innovation:
o Tata Steel: Sought best benchmarks for
management, manufacturing excellence, operating
practices, training, branding and customer and retail value.
 Business Model Innovation: Connects technological
potential, unique capabilities, knowledge bases with the
realization of economic value and create an additional
bottom-line
o Amul: Developed a sustainable and efficient model for rural
development
o Mumbai’s Dabbawalas: Achieved Six Sigma level without a formal
documentation of standards.

5.  Strategy: Toyota Prius: example of continuous process innovation.
 Operating Practices: Toyota motors continued process improvement and
development even in financial crisis.
 Measures of Performance: New offerings, number of new ideas, process
improvement rates etc.
 Rewards and Recognition: Recognition and rewards can be based
explicitly on innovation contribution.
 Behaviour and Culture: Achievement of company-wide ―unconscious
competence‖ in systematic innovation.

6.  Institutionalize and
nurture the climate and
culture for fostering
innovation in organizations
 Possession of Innovation
promotion competencies that
transform new ideas/knowledge
into new products, services, schemes, systems and
processes.
 Key Roles of manager:

7. • The majority of
companies that do use
metrics
typically use only a
handful—i.e., five or
fewer.

8.  A majority of respondents also said that their company
measures time to market (59 percent) and idea generation
(55 percent). R&D efficiency, time to volume, portfolio
health, and life-cycle performance are also tracked by
quite a few companies: each netted a yes from over 40
percent of respondents
 Companies do not measure all aspects on innovation
rather they measure innovation outputs, or end
results, which include both cash returns
(and, ultimately, returns for shareholders) and indirect
benefits, such as a stronger brand and acquired
knowledge that can be applied to other offerings and
purposes

9.  An innovative organization continues to innovate:
o not for business success
o not to get more territory
o not to do things better but just as a matter of course
 Its in their DNA. All of the business benefits - quality
improvement, newer products, better markets, are side effects of
that way of BEING.
 Innovation is simply ―Who The Organizations are‖.
 Example: 3M a manufacturing conglomerate at the age of
104 is introducing new products as if it were a startup.
Basic pillars of innovation success of 3M:
o Commitment to innovation from top to bottom
o High spending on R&D
o High base of technology
o Encouraged networking
o Rewards and recognition to individuals

10.  Top-Down Innovation: People in power set
pace, target, objectives and provide funding.
 Examples of Top-Down Approach:
1) Tata motors creation of Nano.
2) Aravind Eye Hospital reengineered cataract surgeries.
 Bottom-Up Innovation: Innovation originates at the bowel
of the organization. People who think differently, ask
questions, bring a different perspective etc are the
innovation centers of this approach.
 Example of Bottom-Up Approach:
1) ―Innovation School of Management‖ developed by Titan
Industries

11.  India’s talent pool is
boosted by around 2.5
million graduates in
science, IT and engineering
every year.
 The IISc (Indian Institute of
Science) produces more
scientific publications than
any other Indian institute, as
well as India’s top-ranking
science journal Current
Science.