T.C. YAŞAR UNIVERSITY THE FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES DEPARTMENT OF BUSINESS ADMINISTRATIONWHERE INNOVATION CREATES VALUE BUS 482–Marketing Financial Services Submitted to; Assist. Prof. Dr. Osman GÖK
Presentation Outline a. Innovation in a. History of a. Services for Innovation a. Challengesof Definition Innovation b. Innovation for b. Innovative b. Companies Process Tools of b. The Policies Innovation c. Innovation for c. Innovation & Countries Business
An Overview of Innovation Definition of Innovation: What is Innovation ? 1 The introduction of something new 2 A new idea, method or deviceInnovation is the conversion of new knowledge into new products and services. Innovation = Competition
An Overview of InnovationFrom 1950s until 1980s the keyword in producing goods andservices was efficiency. Its roots was in the development ofscientific management. Over the last 25 years, it was changed toquality. Quality methodologies started with Total QualityManagement in the 1960s and evolved to Six-Sigma in the1990s. But cost cutting efficiency and quality are no longerenough to remain competitive … Not just innovation itself, butcontinuous innovation process is now required to survive.
The Infrastructural Needs of InnovationEveryone wants innovation and wants to be innovative, butfew can really succeed that. If so, what are the infrastructuralneeds of an innovation or innovative process ?
Individual (Human Mind) Except the gifted ones, human mind needs help to be innovative. Human Memory"To learn creative and remember it" is more important thanever, because the average knowledge-worker rememberonly about 2-4% of what they were taugh and when thetime comes to apply creative thinking on-the-job, muchmight have been forgotten. Collaborative RelationshipsWork is getting too complex for one person to handle. Moreand more people need to collaborate to get work done.
Individual (Human Mind) Except the gifted ones, human mind needs help to be innovative.Creative & Innovative Talent : Not only is more information and skills needed to perform work, but creative and innovative talent is becoming necessary, because so as change accelerates, the lifespan of knowledge and human skills is growing shorter.
Connectivity Working collaboratively brings forth a synergy that raiseseach person’s level of thinking. Collaboration helps to create a shared understanding and fosters the co-creation of new ideas that no one person could develop alone. The integration of collaborative technologies like the following becomes essential.
Connectivity Web conferencing is used to conduct live meetings or presentations over the Internet. Groupware technology support groups of people working together, often at different sites.Social networks allow anyone from anywhere in the world to meet new people of similar interests and chat with them.
ThinkingThinking is a process that improves knowledge-workerproductivity in the same way of an assembly line improvesmanual-worker labor productivity.Personal Innovation : Individuals are sitting at the heart ofinnovation. The individuals have the skills to innovate andthe companies who encourage individual innovation gainsignificant competitive advantages. Empowering personalcreativity makes improvements in individual thinking.
Thinking Collaborative Innovation :In today’s complex world, no person has all the answers.Innovation works best like a network, with internal andexternal people working together. Enterprise Innovation :Six Sigma,TQM (Total Quality Management), TPS (ToyotaProduction System), Kaizen, PDCA (Plan-Do-Check-Act)... Allare designed to create a successful business. Empoweringmanagement methods is the way to innovative success.
Information Wikis allows users to add and edit content collectively and provide for affordable Knowledge Management systems.Blogs (short for web logs) are interactive online journals that provide commentary or news on a particular subject. Documentum from EMC and SharePoint from Microsoft are document management platforms for developing and deploying content applications. Google of course is the primer internet search engine and turning into a comprehensive data mining platform.
Approaching To Innovation History of Innovation : Impact and Change Although it is the fashionable term of recent times,innovation has a long history. In fact, control of fire by early humans was a very first innovation.
Approaching To InnovationThere have been three great accelerations of innovation :The invention of writing, in Mesopotamia around 3,400 BCE The development of the great cathedrals and the first universities, in Europe in the 11th-13th centuries The development of the steam engine, the factory, the spinning jenny, the railway train, etc., in Europe between 1750-1950
The Innovation Process Although there is no standard innovation process, there have been an usual six-step "Creative Problem Solving Process" that we can call the "Innovation Process"
Six Steps Of Innovation1 Generate Ideas2 Capture Ideas From The First Stage3 Begin the Innovation4 Develop a Business-Effectiveness Strategy5 Apply Business Improvement6 Decline
Innovation & Business Why the need for Innovation ? Staying competitive...Today, in the world of business, quality improvements andprice reductions can be replicated by competitors, as thetechnology can. The only way to have the competitiveadvantage is innovation. If innovation is so important inbusiness, what could be the applications of it ?
Marketing InnovationMarketing innovation consists how the industry is evolvingbecause of new technology and ways of communicating. Thisterm covers the new innovation in marketing from new toolsto how people rethink how to get their messages out. Organizational InnovationOrganizational innovation describes the new ways oforganizing work in areas such as work-force management,knowledge management, value chain management,customer partnership, distribution, finance, manufacturing,etc. that can improve the organizations competitiveness.
Process InnovationProcess innovations increase bottom-line profitability, reduce costs, improveefficiency, improve productivity, andincrease employee job satisfaction.They also deliver enhanced product orservice value to customer.
The Role of Innovation in Today’s World Benefiting From Innovation : Innovation in ServicesIn the last decades, especially industrialized countrieshave experienced a sustained growth of value added andemployment in the service sector. Employment growth inthe service sector was a major engine for the creation ofadditional jobs, but despite its growing weight,productivity growth in services has been slow in manycountries.
The Role of Innovation in Today’s World Benefiting From Innovation : Innovation in ServicesTo strengthen the growth performance in servicescountries are opening their service markets to innovation.New regulations of services markets are creating freshopportunities for firms to develop new services, meetemerging global demands and increase employment. Italso increases the government incentives for companies toinnovate and improve productivity growth.
The Role of Innovation in Today’s World Benefiting From Innovation : Innovation in ServicesInnovations in service industries are often non-technological. They mostly involve small and incrementalchanges in processes and procedures. Many serviceinnovations are not very radical and have often alreadybeen implemented in or by other service organizations.
The Role of Innovation in Today’s World Four Dimensions of Innovation in ServicesMost innovations appear to be a mixture of major andminor changes and adaptations of existing services. Fourdimensions can be used to describe a new service: The Service Concept The Client Interface The Service Delivery System The Technological Options
The Role of Innovation in Today’s World Four Dimensions of Innovation in Services
Innovation for CountriesImpacts of innovative activities in the modern world increase theattention of countries. Developed countries are in the firstpositions, but promoting innovation is becoming also fashionablein developing countries, because both challenges andopportunities arise from the possibilities for modernization oftraditional activities offered by new technologies.
Innovation for CountriesAmerican prosperity owes its continuing existence to itscompetitiveness that is based on innovation. U.S.A. is still leadingthe world despite all the problems in its economy, Two giants,China and India, although their growing scientific and engineeringexpertise to their enormous, low-wage labor forces, are stillbehind U.S.A., because they didnt leave it behind yet ininnovative activities.
Innovation for Countries Innovation Rank Country Overall Innovation Inputs Performance1 South Korea 2.26 1.75 2.552 United States 1.80 1.28 2.163 Japan 1.79 1.16 2.254 Sweden 1.64 1.25 1.885 Netherlands 1.55 1.40 1.556 Canada 1.42 1.39 1.327 United Kingdom 1.42 1.33 1.378 Germany 1.12 1.05 1.099 France 1.12 1.17 0.9610 Australia 1.02 0.89 1.0511 Spain 0.93 0.83 0.9512 Belgium 0.86 0.85 0.7913 China 0.73 0.07 1.3214 Italy 0.21 0.16 0.2415 India 0.06 0.14 -0.0216 Russia -0.09 -0.02 -0.1617 Mexico -0.16 0.11 -0.4218 Turkey -0.21 0.15 -0.5519 Indonesia -0.57 -0.63 -0.4620 Brazil -0.59 -0.62 -0.51
Innovation for CompaniesConsidering the values that innovation brings to the businessworld, innovation does play a major role in competition betweencompanies.
What Is Next ?“Television will never be a serious competitor for radio,because people must sit and keep their eyes glued on ascreen; the average American family hasn’t time for it.” New York Times, 1939It has been characteristic of many of the most importantinnovations of the 20th century that no-one correctlyforecast their future impact. Indeed, we still don’t knowwhat will the future innovations bring. But we live in a verychanging and challenging world. Knowledge, science andtechnology are the main forces that are changing our worldand the signals of new challenges are coming.
Challenges for InnovationProviding new technologies to increase the quality of life.Improving the general health of the world population.Understanding environmental issues and providing solutions.Providing sufficient food for the worlds rapidly growingpopulation.Developing substitutes for diminishing scarce naturalresources.
The PoliciesTo create a more dynamic business environment for firmsto survive the international competition and to face thechallenges, policy makers should understand theimportance innovative activities and encourage the efforts.Innovation is enabling firms in a wide variety of industriesto engage in process innovations throughout the valuechain, develop new applications, and raise productivity.Innovation policies have focused primarily on themanufacturing sector. Services firms face several barriersto innovation, especially the financing of innovation remainsan important barrier for firms. Governments may thereforelook to provide support.
The PoliciesOn the other hand, on the infrastructural basis, youngpeople could be given good support and freedom in theirresearch. They are the greatest source of scientificcreativity, because they are not conservative for scienceand they have the energy and enthusiasm to push newideas. The risks should be taken in supporting new projects.The rule is playing safe when funding is low, but it has to beremembered that the greatest risks have the greatestpayoffs.
ConclusionInnovations come from ideas and directed to creating value.Not just a vision, a thought, a dream nor a wish, butunreasonable demands could be the reason of it. It is acreative process, so it has not a standard roadmap, but it isa collaborative process by its nature. The innovativestructure rises from the unity of human capital, physicalcapital, intellectual capital and knowledge capital. It is notjust the unique advantage of companies and countries incompetition, but also mankinds for the challenges of thefuture.