This is the presentation I used to start the 2011 activities of the CIET commission (Innovation & New Tech) at the Engineers Association of Rome. I explored the roots of innovation explaining its purpose in any organization. The definition of business model is essential to pursue innovation and to do that it is important to understand what exactly is and which is the underlying philosophy. The real aim of design in any successful product or service is highlighted and explained as well.

1. Engineers Association of Rome
raffaele.vincenti2@gmail.com
Raffaele Vincenti – 2011
VP for Innovation
Innovation and New Technologies
The Roots of Innovation

2. The company in the society
In modern society, the entrepreneurial world
is a key driver for development and welfare
of individuals.

3. Each company makes sense if there are the
conditions to create a business.
The company in the society

4. Business definition
A business is characterized by three elements:
• The customers served
• The needs of customers to satisfy
• The technology (or know-how) used

5. The business pillars
BUSINESS
INNOVATION
MARKETING
Peter Drucker

6. Vision
Innovation is a key for the progress of society ...

7. Vision
... and it is essential to define
the business strategy.

8. Vision
Implement, promote and support innovation is
an indispensable task for a society that wants
to pursue freedom, prosperity and growth.

9. What is innovation?
Transformation of knowledge into money

10. What is not?
RESEARCH
Transformation of money into knowledge

11. The purpose of innovation
Value creation

12. The purpose of innovation
In the process of value creation the unifying
element must be found between:
 ideas
 technologies
 economic results
Business
model

13. Business Model
ORGANIZATION
Business initiative
Potential Value
A business model explains how, through a business
initiative, an organization translates its potential into value.

14. Specify a value proposition
or better still
What is the value for users?
Purpose of a business model

15. Identify a market segment
or better still
Who are the potential users?
Purpose of a business model

16. Identify the value chain
or better still
Starting from the raw material to get to the end customer
Purpose of a business model

17. Describes the organization's position in the
value chain and identifies the
complementary activities
Purpose of a business model

18. Specifies the mechanism of profit creation
given the cost and profit margins
Purpose of a business model

19. Identifies a competitive strategy to achieve
and maintain a competitive advantage over
the competition
Purpose of a business model

20. Business model creation
Problem
definition
Solution
(product/service)
Value
proposition
Construction
of a scenario
Identification
of enabling
technologies
Strategic
alliances
Identification of
complementary
assets
Business
Model
Innovation
Source: (c) 2011 Alberto Di Minin
www.diminin.it - Business Model Innovation

21. Structure of a business model
WHOHOW WHAT
HOW MUCH
Activity Perspective Product/Service Customers Perspective
Financial Perspective
Strategic
Partners
Key
Activities
Key
resources
Customers
Relation
Distribution
channels
Customers
segment
Costs Profits
Value
proposition
Source: (c) 2011 Alberto Di Minin
www.diminin.it - Business Model Innovation

22. The four levels of innovation
Business model innovation
Technological innovation
Innovation in products and services
Business process innovation

23. The added value of a product is less and less
related to the size of performance and more
to the ability to evoke unique experiences
The purpose of innovation

24. The purpose of innovation
Give the opportunity to live an experience

25. The purpose of innovation
Samsung LE37B650
:TV LCD, 37“,
widescreen, full HD
LG 37LH400 :TV
LCD, 37“,
widescreen, full HD
Bravia 37W5500:TV
LCD, 37“,
widescreen, full HD
Ford Fiesta: segmento
B, diesel, 1300cc, euro
4 FAP, Esp
Fiat Punto: diesel,
1300cc, euro 4 FAP,
Esp
Opel Corsa: diesel,
1300cc, euro 4 FAP,
Esp
HP PavilionS3560: 1.6
GHz Intel Pentium
Dual-Core, Ram 2 GB,
160 GB hard disk
Acer Aspire IE-3214 :
1.6 GHz Intel Pentium
Dual-Core, Ram 2 GB,
160 GB hard disk
Dell Vostro 410 : 1.6
GHz Intel Pentium
Dual-Core, Ram 2 GB,
160 GB hard disk

26. The purpose of innovation
Experience in a market of products /
services increasingly undifferentiated
is the main competitive strength

27. The purpose of innovation
The experience associated with a product or a
service:
• justifies the price paid by the consumer;
• engages the customers;
• creates word of mouth.

28. The designed experience

29. The designed experience
Experience becomes
the new design paradigm

30. The designed experience
The focus of the purchase process moves
from the possession of the product to the
experience enabled by the product

31. The economic value moves toward the experience
Value
Raw
materials Goods Services Experiences
Casual
experience
Predictable
experience
Designed
experience
• inconsistent
• unaware
• consistent
• aware
• undifferentiated
• consistent
• aware
• differentiated
Level of
customization

32. Experience as progressive product customization
Price definition Enanced
(premium price)
From the
market
undifferentiated
differentiated
Competitive
positioning
Customers
needs
Relevant to
the customers
Irrelevant to the
customers
Raw material
extraction
Products
manufacture
Services
delivery
Access to the
experience
Customization
Customization
Massification
Massification

33. The purpose of innovation
The experience takes the consumer at the center

34. The purpose of innovation
In a world overcrowded by information

35. are effective only those that capture our attention

36. Our attention is directed towards those
phenomena that lead to interesting or
pleasant experiences

37. But how far have we come?
At what stage of progress are we?

38. How far have we come?
In every age some "enlightened" have believed
that we had reached the peak of knowledge.

39. The shortsightedness of the greats of the past
The cinema is an invention without a future.
(Antoine Lumière - father of the brothers who invented the cinema – 1895)

40. Americans need the telephone, not us: we have many
kids who act as messengers.
(Sir William Preece, British Post Office Director – 1876)
The shortsightedness of the greats of the past

41. The shortsightedness of the greats of the past
This 'telephone' has too many shortcomings to be
seriously considered as a means of communication
and has no value to us.
(Internal note of the Western Union Telegraphs - 1876)

42. Flying machines heavier than air? Impossible!
(Lord Kelvin, member of the Royal Society of Science - 1895).
The shortsightedness of the greats of the past

43. Everything that can be invented has already been invented
(Charles H.Duell, Commissioner, US Office of Patents - 1899)
The shortsightedness of the greats of the past

44. I think there is a world market for ... mah I would say 5 computers
(Thomas Watson, IBM - 1943)
The shortsightedness of the greats of the past

45. There is no reason for people to have a PC at home
(Ken Olson, Digital Equipment Corporation - 1977)
The shortsightedness of the greats of the past

46. The Internet will collapse catastrophically in 1996
(Robert Metcalfe, inventor of the Ethernet)
The shortsightedness of the greats of the past

47. Reading the opinions of the past today we
sense that there is still much to be invented
But how far have we come?

48. We need a paradigm shift ...
But what we need?

49. If you do what you always did
you'll get what you always got.
Anthony Robbins
The why of change

50. … building on past successful experiences.
What we need?

51. Approach to innovation
The approach to the development of products/services of
success should give equal importance to the following
three aspects:
• ability to meet real needs  People
• economic sustainability of the offer  Business
• potential of technology  Technology

52. Approach to innovation
Business
(sustainable)
People
(desirable)
Technology
(possible)
DESIGN

53. Design comes back to play a central role in innovation.
The design should create experiences and not only products.

54. The experience is the emotional and
cognitive relationship of oneself in the world
and occurs in a context.
Innovation design oriented

55. Approach and skills
Economic
Humanistic Technical
Innovation is characterized by a
multidisciplinary mix of expertise.

56. Approach and skills
Economic
Humanistic Technical
The skills do not fall exclusively
in the sphere of the designer
but become a company asset.

57. Approach and skills
Economic
Humanistic Technical
The approach is based on
observation of reality and the
search for concrete and effective
solutions to the problem.

58. Inductive approach to innovation
(starting from the specific problem)
Approach and skills

59. “What to do" is less important than
"how to do it"
(the effective approach drive to success)
Approach and skills

60. Communicating through prototypes
(a more effective way of promoting an idea)
Approach and skills

61. Look around to get inspiration
(gather elements to get creative ideas)
Approach and skills

62. Leave space to the randomness
(an innovative idea can be born by chance)
Approach and skills

63. Changing mindset
Overcoming the individual vision

64. The key element
KNOWLEDGE
CREATIVITY
Sir Ken Robinson

65. The wrong slogan
KNOWLEDGE IS POWER
KNOWLEDGE IS JUST POTENTIAL
Albert Einstein

66. The slogan
ACTION IS POWER

67. The tactic
READY, AIM … FIRE!
READY, FIRE … AIM!

68. Identify the context
HUMAN
BEING
ENVIRONMENT
KNOWLEDGE PSICHOLOGY
INSTITUTIONS
COMPANIES
FINANCE
MARKETPLACE

69. The alchemy of success

70. The power of psychology
Napoleon Hill

71. Would you ever have believed it?
They did!
The power of psychology

72. The intuition
We can accomplish all that our mind can
conceive.
Just want it…
… and be ready to pay the price.

73. The target
Results

74. The phylosophy
Consistent focus
Massive action

75. Mission
Promote the implementation of innovation at
strategic and tactical levels and the spread
of its culture, supporting it for the benefit of
society through the professionalism and the
value that engineers can provide in their
different areas of specialization.

76. End of the presentation
Thanks for your attention
Raffaele Vincenti
raffaele.vincenti2@gmail.com

77. References
• Peter Drucker – Innovation and Entrepreneurship
• Alberto Di Minin (Scuola Superiore S. Anna) – Business Model Innovation
• Andrea Granelli (Kanso) - Innovation Lab 2010
• Guy Kawasaki – The Art of the Start
• Anthony Robbins – Unlimited Power
• Napoleon Hill – Think and Grow Rich