The document discusses five patterns of innovation that can be used to create value for customers using available data and analytics. The patterns are: 1) Using data from physical objects to improve products/services, 2) Digitizing physical assets, 3) Combining data within and across industries, 4) Trading data with other companies, 5) Codifying capabilities to sell processes to other companies using cloud computing. It emphasizes that innovation lies in asking the right questions and finding answers by investigating ideas through these patterns to develop new business models. Managers are encouraged to implement these patterns and constantly reframe their business approaches to engage more with the digital economy.

1. The new Patterns of Innovation
Under the internship of Prof. Sameer Mathur, IIM Lucknow
-by Rashik Parmar, Ian Mackenzie, David Cohn and
David Gann

2. Whenever we intend to
frame the search for ideas,
there are various kinds of
questions than can be
asked...and they all melt
down to one point which
is:
How can we create value for customers using data and analytic tools we
own or could have access to?
Find next, the top five patterns that facilitate the hunt for new business
trends…

3. The first one, in fact, is very familiar: using data that physical objects now generate (or could generate) to improve a
product or service or create new business value.

4. For eg. The devices installed in
automobiles that let an insurance
company know how safely someone
drives.
Rolls-Royce’s engine health management (EHM)
capability, retained ownership of the engines and
provided maintenance and repairs, charging
airlines an all-in fee based on actual hours flown,
as part of a “power-by-the-hour” offering.

5. The second pattern is also familiar: digitizing physical assets.
As mobile technologies
continue to fuel this trend,
more creative businesses
are tapping into it and
generating their own
enhanced services or new
business models.

6. Digitization is improving
health care in many other
ways, for e.g. Surgeons are
using digital models of the
body to increase the
accuracy, and reduce the
invasiveness, of highly
sensitive surgery.

7. The third pattern is somewhat more recent: combining data within and across industries.

8. Take the recent
partnership between
Vodafone and TomTom,
a provider of satellite
navigation devices and
services.
With its mobile
network, Vodafone can
identify which of its
subscribers are driving,
where they are, and
how fast they’re
moving.
Such data can be used to
pinpoint traffic jams—
information that is
extremely valuable to
TomTom, which buys it
from Vodafone.

9. The fourth pattern is the Trading data; here, a
company whose information is valuable to
another company sells it.

10. The fifth pattern, codifying a capability, 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.

11. Insights:
The idea of innovation
simply lies in the art of
asking the right
questions, and finding
their correct answers.
The iterated questions
follow the right
patterns that facilitate
innovation of the best
business models.

12. The best unique
business models are
built as a result of
collation and
prioritization of
ideas, their
investigation, key
assumptions
necessary, and
thereby developing a
charged up scenario.

13. Managerial Relevance:
Its is important for
managers to realize that
innovation is the key, and
hence they should ensure
proper implementation of
the above discussed
patterns of operational
and managerial processes
and encourage teams to
support new ideas of doing
business.

14. Not only this, they should
constantly reframe their
‘way’ of doing business, by
thinking through what
implications the five
patterns hold for their
businesses, to find ways to
engage more fully with the
digital economy—and
cash in on its promise.

15. Jahanvi Khedwal
National Institute of Technology, Raipur
jahanvikhedwal.nitrr@gmail.com