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What is Innovation?
Innovation can be new ideas, new devices or new processes. It can be defined as something
original and new being introduced to the world. In a management context, Peter Drucker
(2002) has noted that innovation is a specific function of entrepreneurship and its ability to
create new wealth, producing resources or improving the wealth creation ability of existing
resources. Innovation can be intentional or accidental. Innovation is not a value addition, but
the creation of new value. Innovation begins with the analysis of the sources of new
opportunities. The opportunities are the unsatisfied needs. Through innovation, these needs
are being satisfied.
Innovation is said to be an independent factor. It can’t be judged as it will not have any close
or related product to be compared with as it’s new and invented to satisfy an unsatisfied need.
So, it’s independent in nature. Further, it’s believed that innovation stems from perceptional
change rather than reality change. Reality change is a continuous and natural process. But,
perception or imaginary change is discontinuous, unrelated and new. This creates
revolutionary ideas which in turn lead to innovation. For example, the perceptional change of
how we can travel lead to the invention of aircraft. The aircraft had no comparison as only
road vehicles were present at that time, so we can understand the independent factor of
innovation also in this case.
What is Change?
Change can be defined as the “difference in a state of affairs related to different points of
time”. Time dictates change, so the change needs to be conceptualized at different stages of a
certain factor. It may be organizational or personal. The change could be an act of making
(intentional) or becoming (natural). Change always would have two stages. One is the
previous or old stage, and the other is the new stage (after the change). Knowledge of both
stages is a prerequisite to confirm a change has taken place. It’s a comparison of different
stages and evaluation of the differences between such stages. The change could have been
positive or negative. iPhone 5 has been replaced with iPhone 6 which is a good example of
change.
Change can be looked in different context. We will be looking at it in a management context.
Management is the process of planning, organizing, monitoring and controlling in order to
achieve organization goals through effective use of available scarce resources. The element
of controlling is all about change, and it creates a never ending cycle. If the present results are
not in line with the objectives of the organization, new plans are devised and carried forward
which is a change in the management context. But, change is not the purpose of management.
Change is unintentional and occurs naturally in the process of management.
In management, a value can be identified for the change. This will reflect how good or bad
the change has been for the organization. For example, product change could have triggered
10% increase in profit which can be considered the value of change.
Innovation Change
Definition Innovation is something original and The difference in a state of affairs
new, being introduced to the world. related to different points of time.
It can be new ideas, new devices or
new processes.
Knowledge Previous knowledge is not necessary Previous knowledge and resources
for innovation to happen are required for a change to happen.
Comparability Innovation is not easily comparable Change is comparable with a
as it does not have near factors to be previous situation or product and is
compared with as it’s unrelated in relative in nature.
Need Innovation will be the answer to Change will only improve on the
satisfy an unsatisfied need which did ability to satisfy a need which
not have a solution earlier. already has a solution. Change will
not assist in answering an
unsatisfied
Continuity Innovation is discontinuous in nature Change is a continuous and natural
and usually originates from process of adoption and efficiency
perceptional change. improvement.
Triggers come from both internal and external sources and include:
External triggers
❖ Customer needs, desires or expectations
❖ Competitive offers
❖ New technology
❖ Changing demographics
❖ Economic cycle
❖ Geo-political events
❖ Environmental change
❖ Societal change
❖ Industry structural changes
❖ Regulation change
Internal triggers
❖ Decisions
❖ Problems in operations
❖ Company growth or decline
❖ Leadership and personnel change
❖ Changes to inter-organization alliances
Innovation provides a response to these change triggers. Innovation help characterize these
responses, suggesting innovation that could provide a more effective response to a specific
change environment or trigger. With high uncertainty and possibility, managing change and
innovation effectively requires that learning investments be focused on the areas of change
that represent the highest risk and/or opportunity for continued sustainability and growth of
the business.
Of this long list of change triggers, only decisions come fully under control of the firm.
Innovation processes typically include external and internal scanning to provide early
identification of change triggers, moving company responses into the strategic decision and
innovation funnel.
1. Idea identification - Ideas are evaluated for further resourcing. Criteria will often
demonstrate the ability to be accommodated in the current business model, although
spinoffs may be supported. Balance must be developed that will promote promising
ideas while preventing being overwhelmed by evaluation of too many ideas.
2. Concept validation - The concept is developed enough to determine the investment
needed to validate key elements of viability such as value proposition, competitive
advantage, and likely returns.
3. Demonstration development plan - A plan is developed to provide a proof of
concept demonstration to customers. For startups, this could be a product that might
be used with non-paying customers. This plan will seek to minimize investment
needed to validate key hypotheses with targeted customers. A demonstration vehicle
that can accommodate quick and low cost requirements changes will accelerate the
learning process.
4. Customer value validation - The value to the customer is established through their
interactions with the demonstration product. Metrics that show causality will provide
the learning that will continue to reduce uncertainty.
5. Growth plan - commitment to commercialize - For businesses with an established
business model, the plan for full commercialization is developed. This may be the
entry business gate to the more predictable (knowable risks) development process. For
newer businesses, investment is made to develop a product that can scale as business
grows.
Each successive gate in the innovation funnel reduces uncertainty that would prevent
additional investment. The decisions made provide evidence of meeting established factors
needed for success. Factors that facilitate change are increased while factors that work to
resist change are reduced. Needed communication and education are built into the process.
Studies have confirmed that all businesses want to be more innovative. One survey identified
that almost 90 per cent of businesses believe that innovation is a priority for them. The
conclusion is that the importance of innovation is increasing, and increasing significantly. In
the current day economic scenario, innovativeness has become a major factor in influencing
strategic planning. It has been acknowledged that innovation leads to wealth creation. Even
though efficiency is essential for business success, in the long run, it cannot sustain business
growth.
Most often planned and measured a combination of ideas, objects, and people leads to
innovation resulting in new business ideas and technological revolutions. In order to be
termed valuable innovations, new products and services need to be strong enough to progress
through rigorous commercialization processes and into the marketplace. Management expert
Peter Drucker said that if an established organization, which in this age necessitating
innovation, is not able to innovate, it faces decline and extinction. Many organizations are
adopting measures to strengthen their ability to innovate. Such companies are creating a
dependable operating system for innovation, an important indicator of corporate
sustainability.
Research has indicated that competition combined with strong demand is a major driver of
innovation. The intensity of competition is the determinant of innovation and productivity.
Innovation, besides products and services, also includes new processes, new business systems
and new methods of management, which have a significant impact on productivity and
growth.
Today, we need innovators more than any time before. Every organization and business are
feeling the impact of globalization, migration, technological and knowledge revolutions, and
climate change issues. Innovation will bring added value and widen the employment base.
Innovation is imperative if the quality of life in these trying circumstances is to improve.
Innovation will make the world a better place for the younger generation.
15 Types of innovation
1. Incremental innovation: Incremental innovation seeks to improve the systems that
already exist, making them better, faster cheaper.
3. Red ocean innovation: Red Oceans refer to the known market space, i.e. all the industries
in existence today. In red oceans, industry boundaries are defined and accepted, and the
competitive rules of the game are known. Companies try to outperform their rivals to grab a
greater share of existing demand usually through marginal changes in offering level and
price. As the market space gets crowded, prospects for profits and growth are reduced.
Products become commodities, and cutthroat competition turns the red ocean bloody.
4. Service innovation: Service Innovation can be defined as “a new or considerably changed
service concept, client interaction channel, service delivery system or technological concept
that individually, but most likely in combination, leads to one or more (re)new(ed) service
functions that are new to the firm.
5. Business model innovation: Business Model Innovation (BMI) refers to the creation, or
reinvention, of a business itself. Whereas innovation is more typically seen in the form of a
new product or service offering, a business model innovation results in an entirely different
type of company that competes not only on the value proposition of its offerings, but aligns
its profit formula, resources and processes to enhance that value proposition, capture new
market segments and alienate competitors.
8. Blue ocean innovation: Blue Oceans represent the unknown market space, i.e. all the
industries not in existence today. Blue oceans are defined by untapped market space, demand
creation, and the opportunity for highly profitable growth. In blue oceans, competition is
irrelevant because the rules of the game are not set. Blue oceans can be created by expanding
existing industry boundaries or by reconstructing industry boundaries.
11. Experience innovation: Companies that try to create holistic experiences by emotionally
engaging their consumers.
15. Supply chain innovation: Supply chain innovation is about applying best practices and
technological innovations to your own supply chain in order to reduce such cycle and wait
times and other waste (to use a Lean term) in your in-house processes.
8 reasons why innovation is important to businesses today
1. The word is full of problems that are hard to solve and aren’t going away
Albert Einstein famously said that “we cannot solve the problem with the same thinking
we used when we created them”. So simple conventional linear planning and problem
solving processes using the same thinking that created some of these undesirable problems in
the first place aren’t not going to result in the visionary, creative ideas and innovative
solutions required to solve them. The first thing about understanding innovation is that it is,
in essence about seeing, perceiving and solving problems in creative ways! It requires a sense
of urgent passionate purpose and visionary dreaming and thinking to play with solving
wicked problems so as to improve the quality of people lives and the way we live.
4. Competing via blue ocean possibilities with lean & agile start-up methodologies
In their book Blue Ocean Strategy research proves that there are no permanently excellent
companies, and that organizations, like people, all do smart and less smart things. They
suggest that what matters is making smart strategic moves and that the strategic move that
matters centrally is to create ‘blue oceans’ of disruptive, new and uncontested markets.
The emerging business paradigm is shifting towards discovering blue oceans that incorporate
lean and agile start-up methodologies as a way of innovating businesses to create increased
value for customers that they value and cherish.
5. Flowing with advances in technology
The advance of digitization enabled largely by the internet of things has created the
connection and sharing of data between digital devices, ranging from household devices and
heating systems to automobiles, and even jet engines. This connectivity and the resulting
aggregation of data is creating entirely new business models and revenue streams, both for
startups and established companies that leverage existing assets in exciting, profitable new
ways. It also is changing the basis of competition as companies can now compete as part of
ecosystems. The increasing availability and accessibility to free and low cost online
education is encouraging and enabling almost anybody with a desire for learning and a
hunger for knowledge to become subject matter experts in their fields.
Innovative entrepreneurs and lean start-ups are proliferating by via the internet of things,
always connected mobile devices, cloud computing and via the social media. Especially by
the development of software applications aimed at improving the quality of people’s minds
and lives everywhere.
Types of Technology
➢ The evolution of technology in education
➢ The technology of teaching
➢ Instructional technology
➢ Assistive technology
➢ Medical technology
➢ Technology productivity tools
➢ Information technology
Instructional procedures that embody many of these principles include approaches such as
direct instruction (Carnine, Silbert, & Kameenui, 1990), applied behavior analysis (Alberto &
Troutman, 1995; Wolery, Bailey, & Sugai, 1988), learning strategies (Deshler & Schumaker,
1986), and response prompting (Wolery, Ault, & Doyle, 1992). Most often, machines and
equipment are not involved when implementing various technologies of teaching; however,
they can be, as will be seen later.
INSTRUCTIONAL TECHNOLOGY
Although there are differing opinions about the nature of instructional technology, the
Commission on Instructional Technology (1970) provided the following definition:
Instructional technology is a systematic way of designing, carrying out, and evaluating
the total process of learning and teaching in terms of specific objectives, based on
research in human learning and communication, and employing a combination of
human and nonhuman resources to bring about more effective instruction. (p. 199)
Typical applications of instructional technology may use conventional media such as
videotapes, computer assisted instruction, or more complex systems, such as hypermedia
programs in which computers are used to control the display of audio and visual images
stored on videodisc (Blackhurst & Morse, 1996), CD-ROM and digital video discs. The use
of telecommunication systems, particularly the Internet (Williams, 1995) and its World Wide
Web component (Williams, 1996), have great promise for use in classrooms and for distance
education. Computer software systems are now available that can be used to manage the
delivery of instruction via the Web. Such systems have been used successfully to deliver
instruction to undergraduate and graduate students on topics related to special education
(Blackhurst, Hales, & Lahm, 1997).
It is important to note the various components of the above definition and to realize that
technology is actually a tool for the delivery of instruction. In this conceptualization,
technological devices are considered as means to an end and not an end in and of themselves.
Use of technology cannot compensate for instruction that is poorly designed or implemented
ASSISTIVE TECHNOLOGY
Assistive technology employs the use of various types of services and devices designed to
help people with disabilities function within the environment. Assistive technologies include
mechanical, electronic, and microprocessor-based equipment, non-mechanical and non-
electronic aids, specialized instructional materials, services, and strategies that people with
disabilities can use either to (a) assist them in learning, (b) make the environment more
accessible, (c) enable them to compete in the workplace, (d) enhance their independence, or
(e) otherwise improve their quality of life.
Assistive technologies may include commercially available or "home made" devices that are
specially designed to meet the idiosyncratic needs of a particular individual (Blackhurst &
Lahm, 2000). Examples include eyeglasses, communication aids, alternative computer
keyboards, adaptive switches, and services such as those that might be provided by
speech/language pathologists.
MEDICAL TECHNOLOGY
The field of medicine continues to amaze us with the advances constantly being made in
medical technology. In addition to seemingly miraculous surgical procedures that are
technology-based, many individuals are dependent upon medical technology to stay alive or
otherwise enable people to function outside of hospitals and other medical settings. It is not
uncommon to see people in their home and community settings who use medical technology.
For example, artifical limbs and hip and knee implants can help people function in the
environment. Cochlear implants can often improve the hearing of people with auditory nerve
damage. Some devices provide respiratory assistance through oxygen supplementation and
mechanical ventilation. Others, such as cardiorespiratory monitors and pulse oximeters are
used as surveillance devices that alert an attendant to a potential vitality problem. Nutritive
assistive devices can assist in tube feeding or elimination through ostomies. Intravenous
therapy can be provided through medication infusion and kidney function can be assumed by
kidney dialysis machines (Batshaw & Perret, 1992). In addition to keeping people alive,
technologies such as these can enable people to fully participate in school, community, and
work activities.
INFORMATION TECHNOLOGY
Information technologies provide access to knowledge and resources on a wide range of
topics. The Internet, and its World Wide Web component, is the most prominent example of
information technology. The Educational Resources Information Center (ERIC) is another
example. The ERIC system enables people to search and locate much of the world's
educational literature on a given topic. More information about the ERIC System is available
elsewhere on this Web site.
A COMPLEX EXAMPLE
Each of the above types of technology has significant implications for the education of
students with disabilities, in and of itself. It is important to remember, however, that these
also may be used in combination.
For example, a high school student who is paralyzed may require a respirator to assist in
breathing (medical technology). In a course designed to teach about telecommunications,
that individual may use a voice-operated computer (assistive technology) to pursue a tutorial
about how to design databases from a software program (instructional technology) that was
designed according to principles of near-errorless learning (technology of teaching). As a
result of the tutorial, the student will be able to set up a database, enter and retrieve
information necessary to function effectively in class (technology productivity tool) and use
the Internet (information technology) to locate information that could be stored in the
database.
While the above example may be somewhat extreme, it serves to place the various types of
technology into perspective. In reality, it is more likely that only one or two types of
technology would be used at a time. It is important to keep the different types of technology
in mind when considering technology solutions for people with disabilities.
1. THE INTRO STAGE: You’re still building it, and a Beta version is ready to be
tested by early adopters. This is also known as the “bleeding edge”, it’s when revenues are
low and you’re pouring money into its development – most likely out of your own pocket.
2. THE GROWTH STAGE: This is where you’ve moved from beta to launching the
product. And where you’re initial has been recovered. Here you’ll want to take advantage of
the newness of the technology and start creating some hype. Ideally you want to get covered
by all the major blogs to grow your user base and expand your distribution to more people.
3. THE MATURITY STAGE: Good news! This is a stage your technology is being
accepted by the public. The bad news? The market has reached a saturation point where
competitors have caught up. And revenue slows down as your technology becomes a
commodity.
In the early days of a new technology there is enormous potential for application. No-one
knows quite what to do with it — and they may try things which turn out to be impossible.
This phase is characterized by lots of experimenting around the technology and its
applications. People take risks because the stakes are low — no one knows quite what the
future will hold, and the markets for the new applications don't exist — they are just made up
of people who are interested in the new thing.
But gradually these experiments begin to converge around what they call a 'dominant design'
— something which begins to set up the rules of the game. This can apply to products or
processes; in both cases the key characteristics become stabilized and experimentation moves
to getting the bugs out and refining the dominant design. For example, in the chemical
industry we have moved from making soda ash (an essential ingredient in making soap, glass
and a host of other products) from the earliest days where it was produced by burning
vegetable matter through to a sophisticated chemical reaction which was carried out on a
batch process (the Leblanc process) to the current generation of continuous processes which
use electrolytic techniques and which originated in Belgium where they were developed by
the Solvay brothers. Moving to the Leblanc process or the Solvay process did not happen
overnight; it took decades of work to refine and improve the process, and to fully understand
the chemistry and engineering required to get consistent high quality and output.
In product terms the original design for a camera is something which goes back to the early
19th century and — as a visit to any Science Museum will show — involved all sorts of
ingenious solutions. The dominant design gradually emerged with an architecture which we
would recognise — shutter and lens arrangement, focusing principles, backplate for film or
plates, etc. But this design was then modified still further — for example, with different
lenses, motorized drives, flash technology — and, in the case of George Eastman's work, to
creating a simple and relatively 'idiot-proof' model camera (the Box Brownie) which opened
up photography to a mass market. Innovation doesn't stop at the dominant design but it
moves from being big steps and radical experimentation to focusing more on improvement
and refinement.
As the technology matures still further so this incremental innovation becomes more
significant and emphasis shifts to factors like cost — which means efforts within the
industries which grow up around these product areas tend to focus increasingly on
rationalization, on scale economies and on process innovation to drive out cost and improve
productivity.
Finally the stage is set for change — the scope for innovation becomes smaller and smaller
whilst outside — for example, in the laboratories and imaginations of research scientists —
new possibilities are emerging. Eventually a new technology emerges which has the potential
to challenge all the by now well-established rules — and the game is disrupted. In the camera
case, for example, this is happening with the advent of digital photography which is having
an impact on cameras and the overall service package around how you get, keep and share
your photographs. In our chemical case this is happening with biotechnology and the
emergence of the possibility of no longer needing giant chemical plants but instead moving to
small-scale operations using live organisms genetically engineered to produce what we need.
The table below sets out the characteristics of each of these stages in life cycle.
The S-Curve
I would like to take the time to explain the concept of the Innovation S-Curve. As you can see
below the concept of the S-Curve is used to determine performance in regard to time or
effort. These are extremely important due to the fact that understanding where you are in
regard to this system determines how you should proceed in regard to innovation strategy. It
can also assist you in understanding your current risks and how to avoid certain pit-falls
common to products or services in certain phases of maturity.
Now if we look at the same S-Curve in the context of innovation in regard to an industry or
product we can see that there exists four major stages of innovation. These are Ferment,
Takeoff, Maturity, and Discontinuity.
Industry or Product Lifecycle as an S-Curve