Intro to Markets and Innovation Theory_Tara Day 1
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This document provides an overview of innovation and entrepreneurship concepts presented by Tara Scanlan. It defines innovation as a new or better way of doing something that creates value for customers. Innovation can be incremental, involving continuous improvements, or revolutionary disruptive innovations. Markets are classified as perfectly competitive, monopoly, or oligopoly based on the number of buyers and sellers and barriers to entry. The document stresses that companies need to anticipate, adapt, and achieve through internal innovation efforts and responding to external factors like policies and markets to stay competitive. Homework involves writing a 100-word example of an innovative Japanese product and its business entity/industry.
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Intro to Markets and Innovation Theory_Tara Day 1
- 1. 1 | Conrad Overview | Business Leadership Program August 3rd , 2015 Innovation & Entrepreneurship
- 2. 2 | Conrad Overview | Day 1: Creating Innovative Ideas 1
- 3. 3 | Conrad Overview | About Tara Scanlan B.I.B (Hons.), MBET
- 4. 4 | Conrad Overview | Cold Introductions The name is Bond, James Bond I work for Her Majesty’s Secret Service I’m on an important mission to … ---- My name is …… I am from … Entrepreneurship & innovation to me means…
- 5. 5 | Conrad Overview | Innovation
- 6. 6 | Conrad Overview | Innovation Defined • A new way of doing things • A better way of doing things (Wong, S.K.S (2013)) • Offer consumers a better and cheaper way to do something (a Big Bang Disruptor) (Forbes 2014) • The process of translating an idea or invention into a good or service that creates value or for which customers will pay (Business Dictionary)
- 7. 7 | Conrad Overview | Retrieved from Sparkes D, BET 607 Slides (2013)
- 8. 8 | Conrad Overview | Innovation Defined Continued • “An idea must be replicated at an economical cost and satisfy a specific need … processes and/or applications” (Business Dictionary) • Two categories of innovation: – Evolutionary innovations (continuous or dynamic innovation): incremental advances – Revolutionary innovations (discontinuous innovations): disruptive and new
- 9. 9 | Conrad Overview | What Makes a Technology Disruptive? • Has the technology evolved (is the dominant design/infrastructure) in place? • Is the market ready for the technology? – Creation of a market and the change (destruction) of another • How much learning do customers need?
- 10. 10 | Conrad Overview | Disruptive Innovation Examples
- 11. 11 | Conrad Overview | Incremental Innovation Examples 08/06/15 11
- 12. 12 | Conrad Overview | Incremental Innovation Example …
- 13. 13 | Conrad Overview |
- 14. 14 | Conrad Overview | Innovation Defined Continued … • Innovation Output depends on the inputs: R&D expenditures and firm characteristics (size, group, team) and government policy (P. Blanchard et al, (2012)) • Internal: Knowledge, Resources, Finance & Market Access • External: Policy, Market
- 15. 15 | Conrad Overview | INNOVATION CURVE Where the Market comes in! population distribution Chang, W Pivot Consulting 2013
- 16. 16 | Conrad Overview | Markets
- 17. 17 | Conrad Overview | What types of Markets exist?
- 18. 18 | Conrad Overview | Markets Defined • “A medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange. Price is determined by a number of factors (supply and demand)” (Investopedia)
- 19. 19 | Conrad Overview |
- 20. 20 | Conrad Overview | Perfectly Competitive Markets • Must be more than a single buyer or seller • Buyers and sellers have equal access to information • Products are comparable • Democratic government acts as a referee (balance the market) • Easy entry • No Market Power • Information Available
- 21. 21 | Conrad Overview | Perfectly Competitive Market Examples
- 22. 22 | Conrad Overview | Monopoly • Single seller and multiple buyers • Market prices may be distorted by a seller or sellers with monopoly power • Can reduce efficiency • Negotiation power distorted • Government controlled markets • IP is important here
- 23. 23 | Conrad Overview | Monopoly Examples
- 24. 24 | Conrad Overview | Oligopoly • Few Sellers, Many Buyers – 4 firms control 40%+ of market • Homogenous (same) or Differentiated Products • High barriers to entry • Interdependence – Price rivalry – Advertising – Development
- 25. 25 | Conrad Overview | Examples
- 26. 26 | Conrad Overview | Within markets, are organizations
- 27. 27 | Conrad Overview | Private Industry • For Profit: business or organization whose primary goal is making money (a profit) (business dictionary) – Corporation – Partnership – Sole Proprietor • Not for Profit: Primary goal to help communities and is concerned with money that will keep the organization operating (business dictionary) • Cooperative: owned and run jointly by its members, with profits or benefits shared among them (Oxford Dictionaries) • Charity: an organization set up to provide help and raise money for those in need (Oxford Dictionaries)
- 28. 28 | Conrad Overview | What type are markets are these products in?
- 29. 29 | Conrad Overview | What type of Market is this?
- 30. 30 | Conrad Overview | What Type of Market is This?
- 31. 31 | Conrad Overview | What market is this?
- 32. 32 | Conrad Overview | What type of market is this?
- 33. 33 | Conrad Overview | Exercise
- 34. 34 | Conrad Overview | Break into groups • Using magazines identify: – Innovative products • Disruptive • Incremental – Market (Monopoly, Oligopoly, Perfectly Competitive) • 1-2 minute presentation on one market and one disruptive innovation and one incremental innovation
- 35. 35 | Conrad Overview | Conclusion
- 36. 36 | Conrad Overview | What do companies need to stay competitive?
- 37. 37 | Conrad Overview | Conclusion • Innovation is Internal and External to an Organization • Companies need to: – Anticipate – Adapt – Achieve • Think about the context of the problems you are solving!
- 38. 38 | Conrad Overview | Kitchener/Waterloo You are in the heart of innovation & technology in Canada!
- 39. 39 | Conrad Overview | Homework • Write: – Find an example of an innovative product in Japan and define the type of business entity, and industry. Email it to me, 100 word limit. • Videos: – http://www.ted.com/talks/tim_brown_urges_designers_to_think_big#t-1
- 40. 40 | Conrad Overview | My email Scanlancmc@gmail.com
Editor's Notes
- - Be clear and concise: first impressions are hard to break, so the way you introduce yourself, specifcally as a business professionall is improtant .
- How would you define innovation? (write down)
- Wikipedia: http://en.wikipedia.org/wiki/Innovation#cite_note-1 Where there is a will, there is a way: assessing the impact of obstacles to innovation – Pierre Blanchard 2012 – Industrial and Corporate Change http://web.a.ebscohost.com.proxy.lib.uwaterloo.ca/ehost/pdfviewer/pdfviewer?sid=d3ac920e-4f1e-4146-9934-998c16eb358f%40sessionmgr4004&vid=0&hid=4206 http://www.businessdictionary.com/definition/innovation.html http://www.forbes.com/sites/bigbangdisruption/2014/01/10/the-five-most-disruptive-innovations-at-ces-2014/
- Incremental innovation introduces relatively minor changes to existing products. – exploits the potential of the established design – tends to reinforce the dominance of established firms. – often requires considerable skill and ingenuity. – over time has major economic consequences. • Radical innovation is based on a different set of engineering and scientific principles – often opens new markets and potential applications. – Creates difficulties for established firms. • Radical innovation forces capabilities to be re-evaluated – requires development of new skills.
- Give examples
- What makes a technology disruptive? – Competitive Forces (Porter model) – Technological Evolution/Dominant Design Technological “Infrastructure” – Learning/Absorptive Capacity – Competency creation and destruction
- Ipad – challenging the portable computer – leader Skype – you see lots of people trying to emulate Netflix – continuous user base and it is consistantly growing Disruptive innovations don’t have to rule the market , they just have to change the market and force others to follow suite. The goal of disruptive companies is to challenge the conventional market and create a new one http://mashable.com/2011/10/09/7-disruptive-innovations/
- http://www.stephenhicks.org/wp-content/uploads/2013/09/19-early-steamships-everett.jpg
- https://www.youtube.com/watch?v=qDrMAzCHFUU
- Which type of innovation is Better for a Start-up? Why? • Start-up Issues – Market Access – Resources – Knowledge – Finance • What is the impact?
- Two measures
- http://www.investopedia.com/terms/m/market.asp - Markets are a system and have a structure * Some markets are based on barter and some is based on supply and demand
- https://www.youtube.com/watch?v=9Hxy-TuX9fs
- *takes three to have a market so that there is at least one person Relys on much more than just both buers and sellers Idea is there is no market Does not exist in real world anywhere
- Staple goods Vegetables Free software
- http://www.google.ca/imgres?imgurl=http%3A%2F%2Fimg.docstoccdn.com%2Fthumb%2Forig%2F22165788.png&imgrefurl=http%3A%2F%2Fneollar.net%2Flndex.php%3Fu%3Dperfect-competition-examples-characteristics&h=1125&w=1500&tbnid=cXZyfUu07dqkZM%3A&zoom=1&docid=ExufDUNdAi3MZM&ei=WZjfU5m2IffLsQSdhYKoDA&tbm=isch&ved=0CEAQMygdMB0&iact=rc&uact=3&dur=1873&page=3&start=23&ndsp=15
- Automotive industry
- http://www.businessdictionary.com/definition/for-profit-organization.html http://www.oxforddictionaries.com/definition/english/cooperative http://www.oxforddictionaries.com/definition/english/charity
- Street food vendors - PC
- Bombardier
- https://www.google.ca/search?q=tech+companies+in+waterloo&espv=2&tbm=isch&source=lnms&sa=X&ei=M6rfU_f8Ns2wyATqtYCgDw&ved=0CAgQ_AUoAw&biw=923&bih=642#imgdii=_