MBIE1903-8273

Enterprise Innovation

WEEK 1: Innovation Concepts

 ABOUT ME

Education:
• 2019 Doctor of Philosophy (Computer and Information Sciences),
Auckland University of Technology, New Zealand

• 2013 Master of Science (Information Security)

• 2009 Bachelor of Science (Computing)

Industry experience: Over 10 years (Systems Administrator, Systems

Engineer)

Academic experience: Over 5 years (1 year overseas + over 4 years NZ)

INTRODUCE YOURSELF TO THE CLASS

 Introduce yourself to the class

 Your Background?
 Where you are from?
 Your Education?
 Skills
 Experiences
 Hobbies
LEARNING OUTCOMES

1. Review contemporary innovation concepts, theories and tools

2. Assess a range of models for harnessing innovation

3. Critique methodologies for innovation management

4. Critically evaluate innovation frameworks and apply them to

current business cases and scenarios
MBIE/PGDBIE 1903-8273 Enterprise
Innovation
 What will be taught (shared) in this paper?
 Understand Innovation concepts – what and how
 A lots of real world innovation examples
 Methodologies for innovation management
 Understand the innovation theoretical framework
 How to become a successful innovative entrepreneur
 ASSESSMENTS
Assessments
Assessment Assessment Details Individual Paper Learning
Number or Group Weighting Outcomes

1 Essay, 2000 Words Individual 20% 1

2 Individual 20% 1, 2
Case Study Presentation
(15 minutes)

3 Research Report + Group 60% 1 to 4

Presentation
IMPORTANT DATES

 WEEK 5
 Assessment 01 Due (Essay)
 WEEK 9 & 10
 Assessment 02 Due (Individual Presentations)
 WEEK 15
 Assessment 03 Due (Report Submission)
 WEEK 16
 Assessment 03 Due (Group Presentations)
RECOMMENDATIONS

 Please be on time, 100% attendance is required.

 Come to lecture every week and participate.
 Write your assessments in a proper way.
 Prepare the draft of your assignments at least a week before and
discuss with me.
 Get my feedback on your assignments before you submit.
REFERENCING STYLE

 You need to use APA 6th format for citing and listing references.
 Follow “APA Referencing Style (6th Edition).pdf” that is uploaded on
CANVAS.
 It is good to read through this. A lot of students lose marks due to
incorrect citation format.
PLAGIARISM

 TURNITIN is here 
 Paraphrase or rephrase the text properly – Need to learn this !!!
 Don’t change or replace words with Synonyms – Advise
 INNOVATION?
 Innovation refers to the introduction of a new good or a new quality
of a good, market, source of supply, and/or organization in an
industry.
 It also refers to improving on an existing concept or idea using a
step-wise process to create a commercially viable product.
 Innovation is becoming an integrated and fundamental part of all
businesses and aspects of society.
 Management necessary to create a stream of innovations that
create value for organizations.
EXAMPLE - AMAZON

 In 1994, AMAZON used the Internet and created a business model

that transformed the way in which people bought books.

 Then shook up the publishing business again with the introduction of

KINDLE.
 E-Book technology changed all facets of the book business – the
way people publish, buy and read books.
EXAMPLE - INDITEX & SPACE TOURISM

 INDITEX, the company behind ZARA, created a new way of

interpreting fashion that leverages the most advanced logistic
technologies.
 The company has developed multiple brands that leverage its
knowledge of rapid design, distribution and retail.

 SPACE TOURISM industry relies on cutting edge space technology

and innovative ways to sell an experience that only professionals
have lived.
 Companies that are successful at
innovation
 Have innovators with a deep seated culture of innovation.

 Have right mix of behaviors that foster both – VALUE CREATION (via
creativity) and VALUE CAPTURE (via disciplined commercialization)
because one without the other simply does not work.

 Understand the importance of combining innovation with

operational excellence. MICROSOFT, APPLE and SIEMENS are
examples of companies that have achieved this.
 MAKING INNOVATION WORK – MAJOR INSIGHTS

 Technology, Business Model and Marketing Changes define innovation.

 The Innovation Strategy links innovation to business objectives.
 How you innovate determines what you innovate.
 Metrics and Motivators drive innovative behavior.
 Manage the inherent tension between Creativity and Commercialization.
 Leadership plays an important role in Design, Operation and Culture of
Innovation.
TYPES OF INNOVATION

 Disruptive vs. Sustaining innovation

 Radical vs. Incremental innovation
1- Disruptive Innovation

 Disruptive innovation refers to a concept, product or service that creates a

new value network either by disrupting an existing market or creating a
completely new market.

 In the beginning of the life cycle of an innovation, disruptive innovation

generally provides lower performance.
 These kinds of innovations often aren’t “good enough” to satisfy current
customers, they appeal to a different market instead.

 Example, Transistor Radio

2- Sustaining Innovation

 Sustaining innovation, refers to the type of innovations that exist in the

current market.
 Instead of creating new value networks, it rather improves and grows the
existing ones.
 Example, Toyota Prius Car
3- Radical Innovation

 Both sustaining and disruptive innovation can be either radical or

incremental.
 Radical innovation happens when a new technology completely disrupts
existing business and creates a new business model.
 Only about 10% of innovations fall into this category because they are the
most difficult to execute.
 Example, Salesforce, Software-as-a-service (SaaS) cloud service delivery
model.
4- Incremental Innovation

 Incremental innovation refers to a series of small, gradually built

improvements to existing products, processes or methods to maintain
competitive position over time.
 The majority of innovations are incremental, because these types of
innovations are often the easiest and most cost-efficient to implement.
 Example, Cell Phones, Light Bulb
Business, Technology, and Marketing
Innovations
 Usually, innovation falls into one the following categories:
 TECHNOLOGY, BUSINESS and MARKETING Changes
Define Innovation

 Organizations must have a firm handle on six major levers of innovation.

Three Technology Levers – Products/Services, Process Technologies and

Reporting Technologies.

Three Business Model Levers – Value Proposition, Value Network and

Target Customers.

 Insight inspires and informs these six levers.

 Good insights enable exploration of emerging opportunities, spark creativity
and identify potential innovations plus customer insights, markets, trends
and technologies.
 1- TECHNOLOGY INNOVATION

 Technology a critical, core source of innovation (nano technology –

miniature products, telemedicine, driverless cars, new cancer therapies
etc.).
 However, competitors can very quickly match technology innovations. No
significant competitive advantage when this occurs.
 Most companies have developed strong technology change capabilities.
In some industries this is critical as could lead to new opportunities
(medicine, wireless technologies, Internet of Things (IoT)).
 A new technology could be a part of innovation or operate behind the
scenes (visible only to select few in the organization).
 Changes to product/service very visible to customers, competitors and
partners.
 Changes to processes are less visible.
 2- BUSINESS MODEL INNOVATION (how a company
creates, sells and delivers value to its customers)

 Revamp is Value Proposition (modifying what value it delivers to its customers)

 Rewire the Value Network (transforming how it delivers and captures value)
 Change its Target Customers (altering to whom it delivers value)

DELL – redesigned the way in which PCs moved from the manufacturer to the end user,
skipping distributors and retailers.

ZARA – redefined fashion retail by challenging season collections and bringing fashion to its
stores every week.

NESPRESSO – improved the technology to produce excellent coffee and found customers
who wanted an upscale coffee experience. Offers limited coffee collections, uses innovative
advertising and is starting to move into chocolates.
 3- MARKETING INNOVATION

 For a business to succeed, marketing innovation is claimed to be as

important as product innovation.

 Marketing innovation isn’t just about finding new unique channels and
tactics to promote your offering, but about finding new markets and
creating new value propositions that others aren’t able to (or do not want
to) provide.
 Classic marketing innovations are such where an existing product is used to
a whole new purpose and it provides a different value proposition for a
completely new segment.
 Example, Netflix
Questions?