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innovation in a crisis

laufmaschine
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innovation and creativity

what to expect
why innovation?
“Because its purpose is to create a customer,
the business has two – and only two
functions:
MARKETING and INNOVATION.
Marketing and Innovation create value, all the
rest are costs.”

Peter Drucker
Marketing and Innovation
what is innovation?

video
Link to Video Shown in Class:
https://www.youtube.com/watch?v=IiyMkOfycOg

Link to Video Suggested in Class

History of our world in 18 minutes):
https://www.youtube.com/watch?v=yqc9zX04DXs
course syllabus
 bonus content:
innovation during covid-19

video
Link to Video Shown in Class:
https://www.youtube.com/watch?v=zPyOnZpeFnQ
 Defining
Innovation
innovation

its many definitions

“…the successful conversion of new concepts and knowledge into new
products, services, or processes that deliver new customer value in the
marketplace.” (American Society for Quality- ASQ)

“Innovation is the multi-stage process whereby organizations transform ideas

into new/improved products, service or processes, in order to advance,
compete and differentiate themselves successfully in their marketplace.”
(Baregheh, Rowley, & Sambrook, 2009, p. 1334)

“Innovation represents the core renewal process in any organization. Unless it

changes what it offers the world (product/service innovation) and the ways in
which it creates and delivers those offerings (process innovation) it risks its
survival and growth prospects.” (Bessant, Lamming, Noke, & Phillips, 2005, p.
1366)

“…is the creation and capture of new value in new ways.” (LeAnna J. Carey)
“…innovation is the process that turns an idea into value for the customer and
results in sustainable profit for the enterprise.” (Carlson & Wilmot, 2006, p. 4)

“A change in a product offering, service, business model or operations which

meaningfully improves the experience of a large number of stakeholders”(Hutch
Carpenter)

“…the art of applying creative ingenuity to either solving business problems or

creating material value through a product, service or experience.” (Steve
Cover)

“Innovation is creativity with a job to do.” (John Emmerling)

“The design, invention, development and/or implementation of new or altered

products, services, processes, systems, organizational structures, or business
models for the purpose of creating new value for customers and financial
returns for the firm.’’ (Innovation Measurement, 2007, p. 18627)
“The design, invention, development and/or implementation of new or altered
products, services, processes, systems, organizational structures, or business
models for the purpose of creating new value for customers and financial
returns for the firm.’’ (Innovation Measurement, 2007, p. 18627)

“Innovation is an invention that has demonstrated its’ ability to create value.”

(submitted by Eugene Ivanov)

“Innovation is executing new ideas to create value.” (Tim Kastelle)

“Innovation is the process of making changes, large and small, radical and
incremental, to products, processes, and services that results in the introduction
of something new for the organization that adds value to customers and
contributes to the knowledge store of the organization.” (O’Sullivan & Dooley,
2009, p. 5)
 in sum…

1. new/novel (product/service/process/solution).
2. “creating” value for customers / stakeholders.
3. capturing value for the firm.
 The
Innovation Process
 Advocacy &
Screening Commercialization

01 02 03 04 05

Idea Generation & Experimentation Diffusion &

Mobilization Implementation
 The Five Stage Process
o Idea Generation and Mobilization: New ideas are created during idea generation.
Mobilization occurs when the idea is moved to a different physical or logical location, such
as an outside firm or another department. Example: Richard Drew (3M) and Scotch Tape

o Advocacy & Screening: Not all ideas are worth implementing. Advocacy and
screening help evaluate an idea and measure its potential benefits and problems. From
there, a decision can be made about an idea’s future.

o Experimentation: The experimentation stage tests an idea, such as with a prototype

or pilot test. Example: Amazon Fresh in 2007

o Commercialization: Commercialization aims to create market value for an idea by

focusing on its potential impact. This step makes the idea appealing to the audience; the
focus shifts from development to persuasion.

o Diffusion & Implementation: Diffusion is the companywide acceptance of an

innovative idea, and implementation sets up everything needed to develop and utilize or
produce the innovation.
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Disruption # 1
Disruption # 2
Disruption # 3
Disruption # 4
What’s Next?
47
Ansoff’s Growth Matrix
 Types
of
Innovation

3
Four Types:
Greg Satell
 Sustaining Innovation
oSustaining innovation. Most innovation happens here;
organizations are seeking to get better at what they’re already
doing, to improve existing capabilities in existing markets. They
have a clear idea of what problems need to be solved and what
skill domains are required to solve them.

oConventional strategies like strategic roadmapping, traditional

R&D labs, and using acquisitions to bring new resources and
skill sets into the organization are usually effective. Design
Thinking can also be helpful if both the problem and the skills
needed to solve it are well understood.
 Breakthrough Innovation
o Breakthrough innovation. Sometimes, organizations run into
a well-defined problem that’s just devilishly hard to solve. In cases
like these, they may need to explore unconventional skill domains,
such as adding a marine biologist to a team of chip designers.

o Open Innovation strategies can be highly effective in this context

because they help to expose the problem to diverse skill domains.

o We advance in specific fields by creating paradigms, which

sometimes can make it very difficult to solve a problem within the
domain in which it arose — but the problem may be resolved fairly
easily within the paradigm of an adjacent domain (Thomas Kuhn)
 Disruptive Innovation
o Disruptive innovation (Clayton Christensen). When basis of
competition changes, because of technological shifts or other
changes in the marketplace, companies can find themselves getting
better and better at things people want less and less. When that
happens, innovating your products won’t help — you have
to innovate your business model.

o Lean Startup (Steve Blank) methods and tools such as the Business
Model Canvas (Alex Osterwalder) are useful for organizations that
finds themselves in such a situation
 Basic Research
o Basic research. Pathbreaking innovations never arrive fully
formed. They always begin with the discovery of some new
phenomenon.To this day, Einstein’s discoveries play essential roles
in technologies ranging from nuclear energy to computer
technologies and GPS satellites.

o Universities are also a major source. Some large enterprises,

like IBM and Procter & Gamble, have the resources to invest in
labs to pursue basic research. Others encourage researchers and
engineers to go to conferences and hold internal seminars on what
they learn. Google invites 30 top researchers to spend a sabbatical
year at the company and funds 250 academic projects annually.
 Innovation
Landscape
Map: Gary
Pisano (HBR
2015)
 Innovation
Matrix
(A loose
adaptation of
Gary Pisano’s
Landscape Map)
Difference
between
Disruptive
and
Radical
Innovation
 Christian Hopp , David Antons , Jermain
Kaminski and Torsten Oliver Salge (2018)

o Using a natural language processing approach, we analyzed and organized 1,078 articles
published on the topics

o Disruptive innovation research describes a process in which new entrants challenge

incumbent firms, often despite inferior resources. This may happen in two ways. Entrants
may target over-looked segments of the market with a product considered inferior by
incumbent’s most-demanding customers and later move up-market as their product
improves. Or, they may create markets where no market exists and turn non-consumers
into consumers. Importantly, the research landscape we mapped out suggests that
disruption is not about technology alone, but rather the combination of technologies and
business model innovation.

o Radical innovations, on the other hand, stem from the creation of new knowledge and the
commercialization of completely novel ideas or products. Research on radical innovation
therefore focuses on the types of organizational behavior and structures that explain and
predict the commercialization of breakthrough ideas.
 Disruptive Innovation
To be disruptive, a business must –
o first gain acceptance in the low end of the market, the segment by and large ignored by
incumbents in lieu of more profitable high-end customers.
o Example: Netflix. The initial mail-order movie rental business was not appealing to a large
group of Blockbuster customers. It appealed to a niche of film nerds. Netflix able to grow
its business and eventually offer on-demand movies and TV to a huge audience,
conveniently and cost-effectively. It was the initial encroachment from the low-end of the
market that made Netflix disruptive. A focus on a larger market segment initially might
have induced a fighting response by Blockbuster. Gaining a low-end foothold allowed
Netflix to move upmarket with a completely different business model that was eventually
attractive to Blockbuster’s core customers.
o The Netflix case also shows that disruption may take time (Christian Hopp , David
Antons , Jermain Kaminski and Torsten Oliver Salge 2018)
 Radical Innovation
o While disruptive innovation is inextricably linked to variations of business
models and low-end market encroachment, radical innovation is reliant on
organizational capabilities and individual and organizational human capital.
o Whereas incremental innovation — e.g. a razor company’s fifth razor
blade — helps firms to stay competitive in the short-term, radical
innovation focuses on long-term impact and may involve
displacing current products, altering the relationship between
customers and suppliers, and creating completely new product
categories.

o In doing so, firms often rely on advancements in technologies to

bring their firm to the next level. time (Christian Hopp , David
Antons , Jermain Kaminski and Torsten Oliver Salge 2018)
 Ten Types:
Keeley, Pikkel,
Quinn, Walters
ten types of innovation

video
Ten Types of Innovation (Video):

https://www.youtube.com/watch?v=JGQQEq5ZQ7Q
 Eight Types
(In Jest):
Tom Fishburne
 Bonus Videos
o Short Videos to Explain Concepts we Discussed in Class

o HBR Explainer: Disruptive Innovation

•https://www.youtube.com/watch?v=aMsvWmvTmxw

o Video Book Summary: The Innovator’s Dilemma

•https://www.youtube.com/watch?v=yUAtIQDllo8
 This
Week’s
Team Challenge
 Team Exercise:
Apply Ansoff’s Matrix to Twitch
team presentation (november 16)

project brief
 Innovation Team Project
o Select a traditional industry (e.g., agriculture, construction, retail) ripe
for digital innovation
o Analyze current pain points and inefficiencies in that industry
o Apply the Jobs-to-be-Done framework to identify core customer needs
o Research existing digital solutions and identify gaps in the market
o Propose an innovative digital solution for a focal firm
o Develop a minimum viable product (MVP) concept
o Develop an innovative business model using BMC framework
o Outline required organizational capabilities and changes
o Create a digital/physical integration strategy
o Address potential risks and mitigation strategies
o Define success metrics and monitoring approach
Have an Awesome
Week!