Innovation & Ideas

B E S 3 - M : Te c h n o p r e n e r s h i p 1 0 1
Learning Objectives
• Explain innovation and differentiate it from
invention
• Explain need or pain point
• Understand the research and development
• Understand innovation-driven vs small
medium enterprise
• Understand organization-driven vs market-
driven ideas

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Invention VS Innovation
When a unique solution to a problem is created for the first time, we
say that a technology is invented. Invention is thus the creation of a
novel product, apparatus or method which did not exist before.
Usually, an invention is improved to solve problems better. This
conscious improvement of an invention is called innovation.
Innovation
Tom Freston | Co-founder of MTV
“Innovation is taking two things that exist and putting
them together in a new way.”

Willian Brody | Scientist

“What is the calculus of innovation? The cause of innovation is
really quite simple: Knowledge drives innovation, innovation
drives productivity, productivity drives economic growth.”

Theodore Levitt| Renown economist

“Creativity is thinking up new things. Innovation is
doing new things.”
Innovation
Albert Einstein| Mathematician
“You can’t wait for inspiration, you have to go after it
with a club.”

Thomas Edison| Inventor

“I have not failed, I’ve just found 10,000 ways that
won’t work.”

Warren Bennis| Scholar and organizational consultant

“Innovation – any new idea – by definition will not be accepted at first.
It takes repeated attempts, endless demonstrations, monotonous
rehearsals before innovation can be accepted and internalized by an
organization. This requires courageous patience.”
Needs
The “problems” that technology is supposed to solve are also
referred to as “needs” or “pain points”. Needs or pain points are root
problems.
PAIN POINTS ROOT CAUSE

A rice farmer complains about low

pests and diseases
productivity or yield

People standing in long lines in number of customers, number of items per customer,
supermarkets and similar shopping faulty card-readers, slow internet connection, missing
places price tags
Organizational Innovation
The development of a new organizational strategy that will somehow change a
company’s business practices, as well as the way its workplace is organized and its
relationship with external stakeholders.

Examples:
o Four-day week working schedule
o Work from home
Process Innovation
Process innovation is about implementing a new or improved production or
delivery approach, including changes in operational methods, the techniques used
and the equipment or software.

Examples:
o SaaS (Software as a service) technology
o Online booking / application
Product Innovation
Product innovation is the introduction of a new or improved good or service. These
inventions or changes may have to do with improving technical specifications, the
materials or the software used or even advancing on user experience.

Examples:
o Lego has been changing the
materials of its famous bricks to
biodegradable oil-based plastics
o Electric vehicles
o New batteries with longer ranges
Marketing Innovation
Marketing innovation means developing a new marketing strategy that produces
changes in, for instance, the way a product is designed or packed, or even other
decisions regarding price or promotion.

Examples:
o Haagen Dazs’ new waste-free container
o Easy-open can
o Paper straw
Eco-Innovation
An innovation resulting in significant progress towards the 2030 goals sustainable
development established by UN. In practice, it means reducing the impacts of our
production modes on the environment, improving nature’s resilience to
environmental stresses, or achieving a larger efficient and responsible use of
natural resources.
Research and Development
• Research and development (R&D) include
activities that companies undertake to
innovate and introduce new products and
services. It is often the first stage in the
development process.
• The term R&D is widely linked to
innovation both in the corporate and
government world or the public and
private sectors. It allows a company to stay
ahead of its competition. Without an R&D
program, a company may not survive on its
own and may have to rely on other ways to
innovate such as engaging in mergers and
acquisitions or partnerships.
Research and Development
Importance of Research and
Development
• Crucial to survival
• Fast changing environment
• Continuous technology change
• Competition
• Changing consumer preferences
• Fundamental to “marketing”

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Innovation-driven VS Small and Medium Enterprise

IDE’s SME’s
Organizational-driven VS Market-driven Ideas

IDE’s SME’s