Innovation of management by Prof Kedar Murdeshwar

Innovation of management
What is Innovation: It is an idea, practice or object that is perceived as new by
an individual or other unit of adoption.
It is a use of new knowledge to offer a new product or service that customers
want.
Innovation = Invention + Commercialization
Innovation is based on Future Disruptive Projections and not on existing old
assumptions.
Examples
Radio – Black & White TV (Cathode ray tube) – CRT Coloured Cathode ray tube
– Plasma Display panel – LCD (Liquid crystal display) – LED (Light emitting
diode) – OLED
Mobiles, 3D printing
Case Study: Orhino Technology, Aloe Ecell, Zee Kit (Israeli startup)
Failure Examples: Kodak, Yahoo, Orkut, Nokia
Steps
Customer’s Need
Create a pipeline of promising ideas
Pilot Experimentation
Commercial Launch
Improvement Cycle
Characteristics of innovation
✓ There is an object or target which is being changed
✓ It can be a product or process, an individual’s lifestyle an organization’s
strategy or a society culture.
✓ Innovation can vary in extent or magnitude i.e. degree to which one
deviates from the past.
Distinction between Invention and Innovation
Invention Innovation

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Innovation of management by Prof Kedar Murdeshwar

It is a creation of a new product or It is the introduction of new product,

service or process service or process into the market
place
May not be commercialized Results into commercialization
Usually restricted to R&D center Spread across the organization
Precedes innovation Succeeds invention

Goals of innovation
✓ Improving quality
✓ Creation of new markets
✓ Extension of product range
✓ Reducing wastage
✓ Improving production process
✓ Reducing environmental damage
✓ Reducing energy consumption
✓ Conformance to regulation

Types of Innovation
Customer Perspective
Discontinuous innovation: This type of innovation by its very nature is
discontinuous to every customer segment. These innovations reshape market
innovations. (Nokia and Samsung)
Continuous innovation: An existing product undergoes marginal changes
without altering customer habits. (WhatsApp and Zoom changes, Shampoo
and soaps)
Dynamically continuous innovation: The changes in the customer habits caused
by such an innovation are not as large as discontinuous innovation and not as
negligible as in a continuous innovation. (Tv and satellite channels)
Company Perspective
➢ Product replacement
➢ Addition to existing lines (Pentium, Gillete Mach 2,3 etc, Toothpaste)
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Innovation of management by Prof Kedar Murdeshwar

➢ New Product lines (Reliance)

➢ New to the world

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