The document discusses new patterns of innovation and how companies can leverage data and technology to drive innovation. It outlines five patterns: 1) Augmenting products to generate data, 2) Digitizing assets, 3) Combining data within and across industries, 4) Trading data, and 5) Codifying distinctive service capabilities. For each pattern, it provides examples and questions companies can ask to identify opportunities. Overall, the framework is meant to help structure conversations around identifying new business ideas by exploring what data a company has access to and how it can be leveraged through different innovation patterns.

1. The New Patterns of
Innovation
BY RASHIK PARMAR, IAN MACKENZIE AND DAVID GANN

2. “
”
Lives are about imagination
and what we can create.
~Ed Freeman

3. What is Innovation?
 Innovation is the profitable implementation of new ideas
 If we can implement our idea successfully only then can the
idea be called an innovation.
 Why it is important?
1.It reduces waste and environmental damage.
2.It creates growth , increases productivity and economic wealth.
3.It provides better goods and services at cheaper prices.

4. How can we build on the capabilities and assets that
already make us distinctive to enter new businesses and
markets?
 The search for new business ideas and new business models is hit-or-miss
in most corporations, despite the extraordinary pressure on executives to
grow their businesses.
 Traditional, tested ways of framing the search for ideas exist, of course.
One is competency based,another is customer focused and A third
addresses changes in the business environment.

5. How can we create value for customers using data and
analytic tools we own or could have access to?
 In the Research of IBM Clients we’ve seen advances in IT
facilitate the hunt for new business value in five distinct but
often overlapping patterns. Those patterns form the basis of
our framework.
 None of the patterns depends on bleeding-edge technology.

6. Pattern-1
Augmenting Products to Generate Data
 Making Product intelligent.
 Using data that physical objects generate to improve a product or service
or create new BUSSINESS VALUE.
 Design, Operation and Maintainance should be done here and enhance
how an activity is carried out .
 Eg: Insurance Company

7. Pattern -2
Digitizing Assets
 Digitizing Physical assets.
 Making the product available online.
 Customer can access anything by sitting at home like Books,Video,i-
tunes,E-readers,online shopping portals.
 Cost reduction for marketers.
 Eg: International museum of women,managenment of digitization.

8. Pattern-3
Combining Data within and across industries
 Sharing and Co-ordination of information across industries or sectors.
 An example of this is a smart-city initiative like the one inCity of Bolzano,
where private utilities, transportation companies, and city agencies
consolidate information so that they can deal with natural disasters more
effectively.

9. Pattern-4
Trading Data
 A company whose information is valuable to another company sells it.
 Eg: A cell phone service company sells it information to a navigation –
device company
 Improvement Of Traffic Managment..

10. Pattern-5
Codifying a distinctive service capabiloty
 It allows a company to take any process in which it is best-in-class
managing travel expenses, for instance and sell it to other companies,
using cloud computing.
 Devoloped to automate expense reporting process.
 Success Factors are: Strong Technology presence, Inputs from external
parties, Motivated leadership and emotional commitment.

11. Combining the Patterns.
 A helpful way to structure a conversation about new
business ideas.
 These dimensions made it possible to adopt intraday
pricing that reflected demand patterns, to optimize
operations and infrastructure usage, and to provide
customers with the information needed to manage
their own usage.

12. Resource Requirements
 There are some questions when we begin by describing
patterns:
 What do we have..?
 What data can we access that we are not capturing?
 What data could we create from our products or
operations?
 DWhat helpful data could we get from others?
 What data do others have that we could use in a joint
initiative?

13. Questions On Pattern-1
 Which of the data relate to our products and their use?
 Which do we now keep and which could we start keeping?
 What insights could be developed from the data?
 How could those insights provide new value to us, our
customers, our suppliers, our competitors, or players in
another industry?

14. Questions On Pattern-2
 Which of our assets are either wholly or essentially digital?
 How can we use their digital nature to improve or augment
their value?
 Do we have physical assets that could be turned into digital
assets?

15. Questions on Pattern-3
 How might our data be combined with data held by others to
create new value?
 Could we act as the catalyst for value creation by integrating
data held by other players?
 Who would benefit from this integration and what business
model would make it attractive to us and our collaborators?

16. Questions on Pattern-4
 How could our data be structured and analyzed to yield
higher-value information?
 Is there value in this data to us internally, to our current
customers, to potential new customers, or to another
industry?

17. Questions on Patterm-5
 Do we possess a distinctive capability that others would value?
 Is there a way to standardize this capability so that it could be
broadly useful?
 Can we deliver this capability as a digital service?
 Who in our industry or other industries would find this
attractive?
 How could the gathering, management, and analysis of our
data help us develop a capability that we could codify?

18. Thanking You,
By T.Prudhvith,
NIIT University.