Innovation is dangerous when it is approached as a buzz. It is important to understand how it can save your company. It can also kill your company if not managed correctly

1. Your company needs you!

2. You will
 be able to predict your competitors movements
 pick up on more entrepreneurial opportunities
 proactively counter threats within your company
 be more resilient to change in your industry
 be as excited as I am about your company 

3. First, the bad news…
 Interruptive innovation is lethal to your company
 Most decisions you are currently making are wrong
 The rules of business are not changing, they have changed
 Data and info are two different things
 Words like, unity, quality, disruption… and many more, will never mean the same
thing again
 Redundancies and retrenchments will be happening more and more…
 Internal processes are killing motivation. Tension between peers are vibrating
under the surface.
 The Sharks are probably not going to make the Super Rugby final. 

4. Some facts
Only small and incompetent companies die due to lack of marketing and cash flow. It is time to question what we know…
Laurence Botha
Today’s medium to big companies face different foes
completely
 Misunderstanding of the term innovation. And the
processes involved
 No road map to work from in the new challenges we
face. Yes, they are new!
 Continuous disruption

5. Use the force… Luke!

6. Forces of nature
NATURAL LAWS:
1. GRAVITY
2. BERNOULLI’S PRINCIPLE
3. LIFT, DRAG AND RESISTENCE
WHEN WE RECOGNISED THESE LAWS AND PRINCIPLES, RATHER THAN FIGHT THEM,
WE WERE FINALLY ABLE TO FLY TO HEIGHTS AND DISTANCES THAT WERE PREVIOUSLY
UNIMANIGINABLE. CLAYTON M. CHRISTENSEN

7. Innovation...?
 The process of translating an idea or invention into a
good or service that creates value for which customers
will pay.

8. a look at innovation
In essence, there are 3 types of innovations
 Empowering innovation
 Sustaining innovation
 Efficiency innovations
Stick with us we will make you famous 

9. Empowering innovations
These innovations transform complicated and costly products available to a few into
simple, cheaper products available to many
 They grow into replacing the old
 They create jobs
 Use more capital initially
 These innovations create consumption
Ford model T, transistor radio, personal computers, LED lights, calculators, ITunes, tablets,
generic medication, unsecured finance, open source software, etc…

10. Sustaining innovations
These innovations replace 1 product with another
 0 deficit on capital and economic activity
 Create few jobs – If any
 They assist with sustaining consumption
 Most innovations happen here
Hybrid cars, upgrade mobile phones, etc…
If you buy a Toyota Prius you are unlikely to purchase the Camry as well. You just replace
one for another

11. Efficiency innovations
These innovations streamline processes
 Reduce nett number of jobs – Yet preserve remaining
ones
 Keep companies from losing market share to their
competitors which are innovating around them
 Frees up capital
 Keeps you competitive for as long as the market still
wants you
Steel mini mills, online insurance underwriting, Wonga, and on and on…

12. A thought
 Industries continuously cycle between the need for all 3
innovations. Companies don’t… WHY?
 Keeping a balance between these is what will keep a
company strong, fresh and competitive.
 Processes are simple to integrate. Mind shift is needed

13. Disruptive innovation..? DI
“Disruptive innovation, a term coined by Clayton Christensen, describes a process by
which a product or service takes root initially in simple applications at the bottom of a
market and then relentlessly moves up market, eventually displacing established
competitors.”

14. The dilemma
 Plan better
 Work harder
 Become more customer driven
 Take a long term perspective
 Sound execution
 Speed-to-market
 Total quality management
 Process reengineering
Every company in every industry works under certain forces – laws of organisational nature – that act powerfully to define what the
company can and cannot do. Faced with Disruptive technologies, this fails companies when these forces overpower them

15. Now for some good news
 The manual might not be written yet. …there are some
ways that we can use to deal effectively with this challenge
 It does take a big mind shift. Understandings you currently
have, and are practicing will have to change completely.
 We will briefly go over 5 laws now, but before we do.
Remember: These are not simple answers, they need to be
understood and studied.
It is possible to overcome these issues alone. But, you must first understand what caused the
circumstances and what forces will affect the feasibility of your solutions.

16. 1’st law is
 Companies depend on Customers and Investors for
Resources
Solution:
Set up a team that is independent from your companies customer and investor supply.

17. 2’nd law
 Small markets don’t solve the growth needs of Large
Companies
FIX:
Give the responsibility of commercialization to a company that fits the size of the market.

18. 3’rd law
 Markets that don’t exist can’t be analyzed
FIX:
Discovery-based planning. Managers assume forecasts are wrong, and their strategy is
also wrong. This causes managers to plan for mistakes. Most effective way to confront DI’s.

19. 4’th Law
 An organisations capabilities define it’s disabilities
FIX:
Understand where your company’s capabilities and disabilities reside.

20. 5’th law
 Technology supply may not equal market demand
FIX:
Measure trends in how your mainstream customers use your products. Than you can catch
the points at which the basis of competition will change in the markets you serve

21. Conclusion

22. Dankie