Introduction

The definition of innovation is introduction of new ideas that add ‘value’ to a firm’s activities.
Thus Mr. Togar said that innovation it doesn’t always have to be a new idea but innovation talks
about how to better, how to be more efficient, how to be cheaper etc. According to the presenter,
there are five innovations:

1. Product innovation: this includes significant improvements in technical specifications,

components and materials, software in the product, user friendliness or other functional
characteristics.
2. Process innovation: includes significant changes in techniques, equipment and/or
software.
3. Marketing innovation: a new marketing method involving significant changes in product
design or packaging, product placement, product promotion or pricing.
4. Social Innovation: a new approach to addressing social issues that extend and strengthen
civil society.
5. Organizational innovation: a new organizational method in business practices, workplace
organization or external relations.
How do we know if it is an innovation? Here are the components on innovation:
1. Newness: a change, a difference, and some uncertainty and anxiety.
2. Ideation: the idea, the knowledge and the origins of the innovation. Often linked to a
‘gap’.
3. Application: the innovation is used, applied, put into action.
4. Benefit: The innovation has some value, it makes a difference, it has consequences it is to
renew or change something, which is then applied and has some benefits.
Innovative companies are more adaptable and competitive, they make something “old” no longer
relevant, and for example Gojek replaces traditional ojek.
Invention: creation of an idea to do or make something (profitability not yet verified)
Innovation: new product/process commercially valuable i.e. successfully developed inventions.
Diffusion: the spread of a new invention/innovation throughout society or at least throughout the
relevant part of society.
There are 4 groups in the innovation matrix:
 1. Basic Research: This is the type of work done at universities and some R&D labs. There
isn’t a clearly defined outcome. The point is to discover more about how things work.
2. Breakthrough Innovation: In this case, the problem is well defined, but the path to the
solution is unclear, usually because those involved in the domain have hit a wall.
3. Sustaining Innovation: This is the type of innovation that Apple excels at, where there is
a clearly defined problem and a reasonably good understanding of how to solve it.
4. Disruptive Innovation: These tend to be new approaches to old products and services.

Innovation is desirable to users, possible with technology, viable in the marketplace.

 Incremental innovation: The changes implemented through incremental innovation are
usually focused on improving an existing product's development efficiency, productivity
and competitive differentiation.
 Radical innovation: is an invention or change that has not been seen before.
Appropriability is the degree to which a firm is able to capture the rents from others innovation.
For example, Traveloka, imitators like Tiket.com, Pegi-Pegi, etc.
Appropriability is determined by how easily or quickly competitors can copy the innovation,
firms may also attempt to protect innovations through trademarks, copyright, etc.)

Scope of Innovation

Innovation Portfolio

For the design practice it can correlate with many things starting from the product sustainability,
business innovation, and sustainable supply chain management and consumer engagement. From
the consumer engagement it will lead into the consumer use.
Framework of using value uncaptured for sustainable business

The framework describe how we change from the current business model into the new business
model. But first in order to create the new business model, we need to identify the uncaptured
value of the product thus turning the value uncaptured into the value opportunities. After owning
the value opportunities we can change it into our new values and therefore become a value of the
new business model.

The use of spreadsheet for the product backlog is very important. It is used to trace and manage
how and what the product should be managed. The few examples of the automated program tools
is Jira, Axosoft, Version One and many more.

Sprint Design

Sprint design is created by Jake Knapp from Google Venture in 2010. And now the Sprint
Design is being used by many companies across the globe. The structure of the Sprint design is
implemented in 5 days. Within those 5 days, every member of the team will discuss with each
other. Thus resulting in the business plan, product design, prototype, and testing to the early
target market.

There’s a few major key point

1. Understanding: before we proceed, we must first understand the main source of the
problem, and the components of the organization itself first. Who’s the stake holder,
who’s in charge of the design etc. and by using this method below we can understand the
environment of the organization.
a. Interview: by interviewing the customer we can get the necessary feedback that we
need
b. Focus group customer: try to understand what does the customer need and the
problems that they faced in their user journey.
c. Focus group customer service: customer service play a big role since they know what
kind of problem and experience that the customer faced.
d. Survey: make a survey in order to know the technology context, needs, and problem
from the users
 e. Analysis: analyze every problem from the tools or metrics that’s being used to help us
better understand the problem.
2. Diverge: in this stage is where we start to find the solution for the problem that occurs.
And also in this stage we need to find the key strategy for the problem in order to make
the problem solution.
3. Decide: at this stage the members will decide which strategies that will be used to resolve
the problem. The method to choose the problem is done by voting system.
4. Make prototype: during this stage we will create a product prototype and let the users or
testers to test out the product. This is used in order to receive a feedback and identify if
there is another source of problem.
5. Validate: at the validations stage, we give or test out the product to the end customer and
by then we will receive a validation from the end user.

Advantage:

A simple solution for a sophisticated problem that occurs in the business, it’s Efficient and time
saving thus resulting in cost efficiency, and lastly the Sprint Design is Low risk.

Operating model canvas

There are some major building blocks that play a big role some of them are:

1. Supplier: play a major part for supplying our raw materials needed
2. Location: decides whether is the location strategic or not. Because it will affect the
transportation department too.
3. Value delivery chain: this block is important because it will make sure does the value
proposition is being received by the customer or not
4. Organization: organization plays a big role for the company because it contains team
work of a person with the same vision
5. Information: all sort of information is important to keep us in track of the production and
inventory line. By using big data we can also know everything from the customer
satisfaction level down to inventory system

How government functions influence the capability and motivation to innovate

Aruna
Aruna is a smart fisheries application, which has a mission to lead & inspire a sustainable use of
our ocean resources for economic growth, improved human livelihoods, and ocean ecosystem
health. There are several Features in Aruna application:
• Mobile & Web Apps
• Access and input the data real time and easily from your mobile phone and
website
• Fish Logbook
• Record the history of seafood from the fishermen
• Fisheries Big Data Analytics
• Knowing the potential of fisheries production
• Fish Data Reporting
• Help you to manage and analyze the trend of the catch and the fishing ground area

Aruna integrated Fisheries commerce:

a. Integrated Fisheries System is a platform to help fisheries companies manage their data and
operation efficiently
b. Fisheries ecommerce is online Fisheries trading Platform for Fisherman and Customer to
connect each other.

Strategic Partnership:
- Sourcing Side Partner includes Ministry of ICT, Ministry of Village, Perum Perinus (State
owned Enterprise)
- Market Side Partner includes Ministry of Marine & Fisheries, Fisheries Association (APRI,
AP5I, and APPSI)
- Standardization & Certification include WWF
This is the current Indonesia Fisheries Supply Chain model:

ARUNA comes with innovation to make the supply chain way more efficient than before, here is
the supply chain model using ARUNA e-Commerce Platform:
3M Innovation – 3M startegic brand

Vision:

3M

Technology advancing every company

Product enhancing every home

Innovation improving every life

3M is the Global Innovation Company that makes progress possible.

3M create transformational products and solution that enable customer success and improve
people’s lives around the world.
3M’s collaborative, high-energy approach helps solve the toughest problems across industries
and markets.

The 3M open Innovation platform that leads 1 issues to 100 ideas and then convert to 3

innovation

3M STATEMENT

“Research is the transformation of money into knowledge”

“Innovation is the transformation of knowledge into money”

Concluding Remarks

The presentator also give us example about how Google do their innovation this is their 9
principles of innovations:

- Innovation comes from every where

o It’s is the job to innovate, from top to bottom and many times, by allowing each
employee the opportunity to contribute to big innovative ideas.
- Focus on the user
 o Solve customer problems. Design a beautiful and useful user experience and profit
will follow.
- Bet on Technical Insights
o Think about whether your business has any unique insights or information assets that
can be used and combined to innovate something new.
- Launch and Iterate
o Ship your products out to market early and often rather than waiting until they are
absolutely perfect to take them market. The most important button on any product is
the feedback button.
- Think 10 times
o If you improve your process a little each day, you only achieve incremental progress.
Innovative changes means you need to think about how to change things by 10 times
more.
- Default to open
o By opening up your development to world, you are tapping into a huge community of
all the top 1% minds in the world.
- Fair well
o If we don’t fail often, we are not pushing the boundaries of the innovation. Failure is
a badge of honor so be honest with it and fail with pride.
- Have a mission that matters
o The most important principle for innovation in your organization is having a mission
that people can believe on and having a sense of mission and purpose gets people into
condition that they need to be innovative.
- 20% Time
o Give your employees 20% of their time to focus on the items they are most passionate
about. This truly allows everyone in the organization to act on their innovation spirit.

We must also make all of this as a practice of learning not only learn as new lesson but do I
and David Kolb describes this learning step in this 4-step of learning process:

1. Concrete Experiences (What we already know)

2. Observation and Reflection (What our retrospectives help us identify)

3. Abstract Conceptualization (Thinking about the problems and designing potential

solutions)

4. Active Experimentation (Trying something new)

So what to take away from this presentation is that we need to understand that innovation
idea are made by the communities and we need to implement that in our business.