This document discusses sources of innovation opportunities. It identifies seven key opportunity areas for innovation, both inside and outside a company. The opportunity areas inside a company include: 1) unexpected occurrences, 2) incongruities, 3) process needs, and 4) industry and market changes. The opportunity areas outside a company include: 5) demographic changes, 6) changes in perception, and 7) new knowledge. Effective innovation starts small, requires knowledge and focus, and involves analyzing sources of new opportunities.

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Group # 3
Krishna Murari 1418
Pushpendra Singh 1421
Sudhakar Kumar 1428
Samir Kr. Mishra 1425

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Introduction ….
Innovation can be systematically managed
if one knows where and how to look

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• The process of translating an idea
or invention into a good or service
that creates value or for which
customers will pay.
To be called an innovation, an idea must be replicable at an
economical cost and must satisfy a specific need.
Dictionary meaning of Innovation

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What is Innovation?
Peter F. Drucker says ……
It is the means by which the entrepreneur either creates
new wealth- producing resources or endows existing
resources with enhanced potential for creating wealth

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Sources of innovation

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Opportunity area : Inside the company
❶ Unexpected occurrence : Had happened which was not expected
a) Unexpected success
• In the early 1930, IBM developed the first modern accounting machine which was designed for
banks. But bank in 1933 did not buy the new equipment. Stock remained unutilized.
• But suddenly demand came from New York Library to buy such machines and IBM sold more
than hundred of his otherwise unsalable machines to libraries.
b) Unexpected failure
• The unexpected failure may be an equally important innovation opportunity source.
• It is precisely because the unexpected jolts us out of our preconceived notions & certainties that it
is such a fertile source of innovation.
• Example : Ford Edsel, first failed but latter on
came out as industry leader

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 Incongruity b/w expectation & result
 The roll –on & roll –off ship
Opportunity area : Inside the company
❷ Incongruities : The state of not fitting in its location or situation
Incompatible, Inappropriate
 Incongruity within the logic or rythm of a
process
 Alcon Laboratory & Incongruity in Medical
technology
• Cataract operation is very common surgical
procedure. Doctors have systematized all the steps
except the ligament cutting which is old fashioned.
• Means this step is incompatible with others. They
often feared during operation
• Now they use an enzyme which can dissolve the
ligament without cutting. Incongruity b/w Economic realities
 The Mini Mills

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Opportunity area : Inside the company
❸ Process Needs
 Innovations created to support other processes and products
 It is looking for “the missing link” in the existing process
 Japan: No modern Highway system
 Process Need: Smooth traffic & less accidents
 Innovative Response: Reflectors
 Media innovation in 1890
 Ottmar Mergenthaler’s Linotype – Produced news paper quickly
and in large volume
 Social Innovations: Modern Advertising invented by the first true
Newspaper publisher, Adolph Pulitzer of the New York World

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Opportunity area : Inside the company
❹ Industry & Market changes
 Industry & market structures may change overnight.
 Such changes creates tremendous opportunity for
innovation
 Change in structure of the industry
 In American financial business : Donaldson, Lufkin and
Jenrette (DL&J) brokerage firm – became leader in
negotiated commissions business.
Established companies are more defensive and less attacking
Thus, Innovators have a chance to gain success

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Opportunity area : Outside the company
❺ Demographic Changes
 Of the outside sources of innovation opportunity, demographics are the most
reliable
 changes occur in populations, it’s size, composition , employment, income
levels, Education, age ranges etc.
 Due to education explosion, Japanese invented robots because they paid
attention to demographics to tackle the problem of labor shortage in industry

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Opportunity area : Outside the company
❻ Changes in perception
 “The glass is half full”
 “The glass is half empty”
 Changing your perception of glass from half
full to half empty opens up big innovations
opportunities
 We are very health conscious now – fear , as
compared to past - led to many health foods,
exercise classes, jogging equipment etc.

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Opportunity area : Outside the company
❼ New knowledge
Success requires careful analysis of the
various kinds of knowledge needed to make
an innovation
The Wright Brothers did this when they
developed the first operational airplane

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• Purposeful, systematic innovation begins with the analysis of the
sources of new opportunities
• Innovation is both conceptual and perceptual -ability to interpret
• To be effective innovation has to be simple and it has to be focused
• Effective innovation start small. They are not grandiose
Principles of Innovation

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So, innovation needs ….
• Innovation is work rather than genius
• It requires knowledge
• It requires ingenuity
• It requires focus
• Innovator rarely work in more tan one area.( Thomas
Edison)
• If diligence, persistence, and commitment are lacking,
talent, ingenuity, and knowledge are of no avail.

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Thanks