2.

0 Introduction to Innovation
Faizal Amin Nur B. Yunus
faizaly @uthm.edu.my

What is
INNOVATION???

Innovation is a process of taking new ideas to

satisfied customers. It is the conversion of new
knowledge into new products and services.

CREATIVITY;
INNOVATION;
and
CREATIVE
THINKING
are not the same !

Creativity vs Innovation vs Creative

Thinking
Creativity

Bringing into existence an idea that is new

to you

The practical application of creative

ideas

Creativ
e
Thinkin
g

Innovation

An innate talent that you were born with and a

set of skills that can be learned, developed,
and utilized in daily problem solving

development
generation
sale

nnovations = ideations + project managemen

Creativity techniques
Incubation, prototypes, tests

What is innovation not

It
It
It
It
It
It

is not just cleverideas

is not just new technology
is not just new products
is does not take place in isolation
isnot just new or new to the world
is not the same as invention

Innovation means different things to different

people

FUN FACTS ABOUT YOUR "SIDES"

The right side of your body is controlled by
the left side of your brain.
The left side of your body is controlled by
the right side of your brain.
Most people are left-brain dominate, even
people who are left-handed writers.
The left side of your brain controls speech,
reading, writing, and math.
The right side deals with spatial
relationships, abstractions, and your
feelings.

FORMS OF INNOVATION

Radical
Innovation

Incremental
Innovation

Types of
Innovation

Technology
Innovation

Product &
service

Process
Innovation

Business model
Innovation

Types of Innovation
Business Model Innovation involves
changing the way business is done in terms of
capturing value e.g. HP vs. Dell, hub and spoke
airlines vs. Southwest
Process Innovation involves the
implementation of a new or significantly
improved production or delivery method.

Types of Innovation
Product Innovation, involves the introduction
of a new good or service that is new or
substantially improved. This might include
improvements in functional characteristics,
technical abilities, ease of use, or any other
dimension.
Service Innovation, is similar to product
innovation except that the innovation relates
to services rather than to products

Dont Believe the Experts !

Thats an amazing invention, but who would
ever want to use one of them?

(US President

Rutherford B. Hayes, after participating in a trial telephone

conversation between Washington and Philadelphia in 1876).

Television wont be able to hold onto any

market it captures after the first six months.
People will soon get tired of staring into a box
every night
1946)

(Darryl F. Zanuck, Head of 20th Century Fox,

Dont Believe the Experts !

The horse is here to stay, but the automobile is
only a novelty, a fad

(President of Michigan Savings

Bank, 1903, advising Henry Fords lawyer not to invest in the

Ford Motor Company disregarding the advice, he invested $
5,000 in stock, which he sold several years later for $ 12,5
million).

I think there is a world market for about five

computers

(Thomas J. Watson Sr., Chairman of IBM, 1943)

The Six
Levers of
Innovation

Business model
Innovation

Value proposition
Supply Chain
Target Customer

Supply
chainin to
how
value
Changes
whom
is created
and
delivered
you
sell

the
target
Changes
in
the
value
to the
market.
Changes
to
customer
segments

proposition
of are
the
the
supply
chain
usually
occur
when an
product
or
service

usually
behind-theorganization
identifies
essentially,
whatthat
you
scenes,
changes
a sell
segment
of customer
and
deliver
to
the
customers
typically
do
not
to
whom
it
does
business
may be
see.marketplace
This
type
of
currently
direct
its
entirely
new
product
model
change
affects
marketing,
sales,
and
or
service
or
an
steps
along the
value
distribution
efforts
expanded
proposition
chain,
including
the way
that would
consider
its
for
an
existing
an
entityand
organizes,
product
services
offering.
partners,valuable.
and operates to
produce and deliver its
products and services.

Technology
Innovation

Business model
Innovation
Rather
than
Changes
in the or
A change
to a product
technologies
that
service
that a company
changing
theare
offers in the
marketplace
integral
parts
of of
product
functionality
the
or
the
introduction
of
manufacturing and
product
orproduct
the
anservice
entirely
new
delivery
can
Value
proposition
or
service is
the most
process,
enabling
result
in better,
faster,
easily recognized type of
technology
enables
and less expensive
innovation because
products
and
services.
a company
to
Supply
Chain
consumer
see
the
These
process
changes
first-hand.
executes
theIn
technology
todays fast-changing
strategychange
muchare
usually
invisible
to
the
market,
consumers
have
Target
Customer
faster
and
leverage
come
to expect
consumer,
but
often
significant
recurring
time
aa source
of
vitalas
to and
products
technological
innovation
competitive
posture.
competitive
of this kind.
advantage.

Product and Service

offerings

Process technologies
Enabling Technologies

Technology
Innovation

INNOVATION MAKING
A DIFFERENCE

INNOVATION
STRATEGIES

Financial backing to innovation

Give opportunities to employees
Skillful recruitment policy
Information from outside the
organization
Target being set for innovation
Employees should be rewarded

Stimulants to Work
Creativity
1) FREEDOM in deciding work to do or how to do it
2) CHALLENGE to work hard on important projects
3) RESOURCES needed to do the work
4) ENCOURAGEMENT from a supervisor who is a good
work model, sets appropriate goals, supports and has
confidence in the work group
5) WORK GROUP SUPPORTS such as diverse skills,
people who communicate well, are open to new ideas,
constructively challenge one anothers work, trust and
help each other, and feel committed to their work
6) ORGANIZATIONAL ENCOURAGEMENT in a culture
that supports creativity and communicates a shared vision
of organization

Obstacles to Work
Creativity
1) ORGANIZATIONAL IMPEDIMENTS such
as internal political problems, harsh
criticism of new ideas, destructive internal
competition, avoidance of risk and
overemphasis on the status quo
2) WORKLOAD PRESSURES such as
extreme time pressure, unrealistic
expectations, or distractions