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Innovation Barriers

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Prepared by: Mohammad Yaqub "Farahi" 2
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Contents
 What is Barriers?
 What does Innovation means?
 Types of Innovation
 The 10 Barriers to Innovation
 Q&A

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What is Barrier

 factors that can prevent newcomers into


a market or industry sector, and so limit
competition. These can include high start-
up costs, regulatory hurdles, or other
obstacles that prevent new competitors
from easily entering a business sector.

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What does Innovation means?
 Innovation mean as a concept, refers to the
process that an individual or organization
undertakes to conceptualize brand new
products, processes, and ideas, or to approach
existing products, processes, and ideas in new
ways.
 Innovation is the most important for economic
growth, development and the creation of
better jobs

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Types of Innovation
In the world of business, there are many different types of
innovation that a company might pursue.
For Example
 Product innovation includes the development of a new
product or the improvement of an existing one.
 process innovation is concerned with improving the
processes involved in creating, delivering, and supporting a
product or service.
 Business model innovation is a broader and more complex
term than product or process innovation.

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The 10 Barriers to Innovation
 1. Fair
 2. Lack of Leadership
 3. Short Term thinking
 4. Lack of Resource/Capacity
 5. Lack of Collaboration
 6. No time
 7. Lack of Focus
 8. Lots of Ideas, no delivery to market
 9.No Clear Process
 10.Lack of Urgency
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1-Fair
 The single biggest reason why most
organisations and individuals do not achieve
their full potential innovation is fear of failure.
There are no guarantees that any new idea will
work. We must accept failing is an important
part of learning, development and progress.

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2. Lack of leadership
 Innovation must be led from the top. Often,
trustees, chief executives and directors do
not support or are not in agreement as to the
strategic importance of innovation as a
business driver and what it would look like
for their organisation. Consequently, they
continue to do what they have always done.

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• 3. Short term thinking

 Most charities calculate on a one year return


on investment. Any new innovation is
expected to have immediate impact. Under
the pressure to deliver return quickly we
conduct inadequate research and rush
processes, leading to failure, the idea being
ditched and innovation being perceived as
not working.

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4. Lack of resource/capacity

 Linked to thinking in the short term, charities


are apprehensive about investing in something
that does not have guaranteed return on
investment and often take a scattergun
approach to innovation or under-resource it.
This has a knock on effect of it not delivering
the impact that it should or could.

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5. Lack of collaboration

 Internal budgeting and structures don’t always


facilitate collaboration between teams.
Individual income targets mean people fight
over budgets and are reluctant to ‘share’
donors, even if the return for the organisation
could be potentially higher if teams worked
together.

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6. No time

There is an understandable focus on


the fundraising here and now.
However, if we don’t start to make
time to take a more long-term view
and develop and test new ways to
generate income, charities will
struggle to survive.
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7. Lack of focus

 If an organisation is not clear on where to


focus, it can easily spend time on activity that
won’t make a difference. It’s easy to become
distracted by new products and new
technology, but if it isn’t helping you achieve
your mission then you should not be investing
time and resource in it.

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8. Lots of ideas, no delivery to
market
 Having ideas is not a problem for most
organisations, but having relevant ideas and
progressing them can be incredibly hard.
 “The sticking point is that people say they want
to be innovative. They come up with ideas and
then don’t do anything”
 Craig Linton

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9.No clear process
 A process is critical to filter and drive ideas forward, yet only
32% of those surveyed have a clear process in place for
innovation.

 “So many ideas slowly die in organisations as they don’t have a


structure or processes for taking ideas forward”

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10-Lack of urgency
 Despite significant changes to the funding landscape and the
economic environment, charities are not responding with
urgency to change. Perhaps they believe that if they do
nothing they will be OK

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Q&A

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Thank You

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