SACRED HEART DIOCESAN SCHOOL

“Where peacemaking is life-giving”

Molave, Zamboanga del Sur
S.Y 2020 – 2021

Student’s Learning Activity in ENTREPRENEURSHIP 9

Learner’s Name: Grade Level : 9

Learner’s Contact #: Module No. 3
Lesson Title: Introduction to Innovation Quarter / Week:
1-4
Values : Creativity Activity No.
3
Reference/s: Wikipedia; Entrepreneurship in the Philippine
Setting by Winefreda B. Asor, Ph. D
Teacher: Mrs. Geraldine P. Martel (09482188316)
CONTENT STANDARD/S: The learners demonstrate an understanding of the different types of innovation.
 PERFORMANCE STANDARD/S: The learners shall be able to: differentiate the different
types of innovation.
OBJECTIVES: At the end of the lesson, the students will be able to:
 Define innovation.
 Give examples of innovative products in the market.
I TRANSITION (Linking Statements/Motivation)
10 USES
Come up with 10 uses for old newspapers (or unused pizza boxes, or outdated computer materials).
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ESSENTIAL IDEAS (CONCEPT NOTES )
What is innovation?
Innovation is commonly defined as the "carrying out of new combinations” that include “the introduction of new
goods, new methods of production, the opening of new markets, the conquest of new sources of supply and the
carrying out of a new organization of any industry”.
Types of Innovation
 Radical innovation - establishes a new dominant design and, hence, a new set of core design concepts embodied
in components that are linked together in a new architecture.
Examples:
1. NETFLIX - Netflix is an excellent example of the role radical innovation can play to disrupt an industry. When
Netflix entered the home entertainment industry in 1997 (as a mail-order DVD rental service), Blockbuster, an
established company and Netflix’s main competitor, underestimated Netflix’s threat. Instead of clamoring for
radically innovative change to counter Netflix’s market entry, Blockbuster sat back and did nothing. We know how
this story ends: Netflix disrupted the industry, claiming smaller markets’ loyalty and putting Blockbuster out of
business. Now, Blockbuster is obsolete, and Netflix is a household name.
2. APPLE - The iPhone is another example of radically innovative change. Despite the device’s worldwide
popularity, many do not know how it came about. The iPhone was not new technology – its software and
interface were derived from the iPod, an existing Apple technology. It was the iPhone’s computer capacity that
 was the real radical innovation. Rather than add a few new features to an existing phone (i.e. incremental
innovation), Apple shifted its concept underpinning the iPhone. By introducing a product equipped to meet users’
total communication needs in real time, Apple transformed the digital communications industry. By applying its
core competencies (technology) to a future goal (hand-held computers), Apple achieved a radical innovation
whose impact is felt worldwide.
 Incremental innovation – are just a little better than the previous version of the product or service and has only
slight variations on an existing product formulation or service delivery method. Products can be made smaller,
easier to use or more attractive without changing the core functionality of it and services can be made more
efficient through constant improvement.

 Examples:
1. COCA-COLA - The brand’s line extensions such as Cherry Coke, Coke with Lime and more recently Coca-Cola Life
have enabled a 130 year old brand to stay relevant, tap into emerging trends and bring something new to its
customers over the years.
2. CADBURY - Cadbury has innovated through introducing line extensions. As well as developing new flavors, the
brand has also created new formats. By using an incremental approach to innovation, Cadbury has been able to
open up additional sources of revenue.
 Disruptive Innovation - refers to a process by which a new product or service creates a new market eventually
displacing established competitors.
Examples:
1. APPLE ITUNES - The year of 2001 saw the release of the first iPod, a portable media player that could hold an
average of 1,000 songs. In itself, the iPod was not an attempt at disruptive innovation. A range of other such
devices already existed and although the iPod was considered a better product than the majority of these, it did
not target a new market. Crucially, it was the combination of the iPod and the simultaneous release of iTunes that
brought a fresh disruption, opening up new ways of buying and playing music. iTunes is both a media library and
music marketplace. It locked iPod users into purchasing music from the iTunes store but more importantly, it
offered convenience and a lower price point. By integrating the Internet into the music curation process, Apple
used disruptive innovation to change the very foundations of the way consumers listened to music.  As a result,
Walkmans, CDs, MP3 players and record stores are generally considered ancient artefacts in today’s market.
2. WIKIPEDIA - Traditional, for-profit general encyclopedias with articles written by paid experts have been
displaced by Wikipedia, an online encyclopedia which is written and edited by volunteer editors. Former market
leader Encyclopædia Britannica ended its print production after 244 years in 2012. Britannica's price of over
$1000, its physical size of dozens of hard-bound volumes, its weight of over 100 pounds (45  kg), its number of
articles (about 120,000) and its update cycles lasting a year or longer made it unable to compete with Wikipedia,
which provides free, online access to over 6 million articles with most of them updated more frequently.
Wikipedia not only disrupted printed paper encyclopedias; it also disrupted digital encyclopedias.
Microsoft's Encarta, a 1993 entry into professionally edited digital encyclopedias, was once a major rival
to Britannica but was discontinued in 2009. Wikipedia's free access, online accessibility on computers
and smartphones, unlimited size and instant updates are some of the challenges faced by for-profit competition in
the encyclopedia market.
 Sustaining Innovation - Sustaining innovation is the opposite of disruptive innovation as it exists in the current
market and instead of creating new value networks, it improves and grows the existing ones by satisfying the
needs of a customer. Just like incremental innovation, the product performance of sustaining innovation is made
slightly better with every iteration, reducing defects. The new improved version of the product can be more
expensive and have higher margins than the previous one if it targets more demanding, high-end customers
with better performance than what was previously available.
 Example:
1. PFIZER - the world’s biggest pharmaceutical company by revenues. Hoque notes the company’s ongoing success
with blockbuster medicines and vaccines with household names, such as Zithromax, Lipitor and Viagra. The
company was founded in 1849 as a manufacturer of fine chemicals, and a year later, it discovered Terramycin
(oxytetracylcine), launching the company’s successful and ongoing expansion into a research-based
pharmaceutical company. It augmented its research by building its brands, pipeline and profile through major
acquisitions.

Vocabulary:
1. MARKET – refers to the group of consumers or organizations that is interested in the product, has the resources
to purchase the product, and is permitted by law and other regulations to acquire the product.
2. PRODUCT - anything that can be offered to a market that might satisfy a want or need. It is either goods or
services.
3. GOODS - tangible things that are produced, bought or sold, then finally consumed.
 tangible – something that can be touched.
4. SERVICES - a transaction in which no physical goods are transferred from the seller to the buyer.
II LEARNING EXPERIENCE
A. CLARIFYING UNDERSTANDING (i.e. Cooperative Strategy & Active Learning
Give at least 5 examples of an innovative product.
Example: LG introduced a new type of screen that is flexible enough to roll up like a newspaper.
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B. PROCESSING QUESTIONS (Checking for Understanding, HOTS)
Answer the following questions concisely.
1. Differentiate Radical Innovation from Incremental Innovation.

2. Differentiate Sustaining Innovation from Disruptive Innovation.

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C. ASSESSMENT (Formative/Summative)
Innovate the following products.
Ex. BALLPEN – a ballpen with an earphone.
1. KNIFE - ________________________________
2. PILLOW - ______________________________
3. SOAP - ________________________________
4. PHOTO ALBUM - ________________________
5. SLIPPERS - _____________________________

Ballpen w/ earphone

III. FRAMING CONCEPT

Fill in the colorful squares with the information that is asked.
1 thing you learned today 1 thing you changed your 1 thing you are inspired
mind today to do today

IV. MASTERY EXERCISES (Post Assessment)

Identify whether the following phrases refer to RADICAL or INCREMENTAL innovation. Write R on the space provided if
Radical, I if it is Incremental.
_______1. explores new technology
_______2. exploits existing technology
_______3. focuses on feature improvements in existing products and services
_______4. focuses on products and services with unprecedented performance features
_______5. improves competitiveness within current markets or industries
Identify whether the following phrases refer to SUSTAINING or DISRUPTIVE innovation. Write S on the space provided if
Sustaining, D if it is Disruptive.
_______6. does not create new markets or values, but rather merely develop existing ones
_______7. focus on existing market
_______8. does not create new markets but rather merely develop existing ones
_______9. reinvent a technology, business model, or simply invent it all together
_______10. alter and improve a product or service in ways that the market did not expect
V. LIFELONG LEARNING
Proverbs 22:29 “Do you see someone skilled in their work? They will serve
before kings; they will not serve before officials of low rank.”

Do you think being an entrepreneur requires some skill? Why or why not?
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Do you need to be skillful in order to be innovative? Explain your answer.
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