Presented By:

Nikita Kocharekar
MMS/15/HR

*Meaning of Innovation
*Levels of Innovation
*Types of Innovation
*Theory of Innovation
*Drivers for Innovation

* Innovation is the process and outcome of creating something

new, which is also of value.

* Innovation involves the whole process from opportunity identification,

ideation or invention to development, prototyping, production
marketing and sales, while entrepreneurship only needs to involve
commercialization (Schumpeter).

* Today it is said to involve the capacity to quickly adapt by adopting

new innovations (products, processes, strategies, organization, etc)

* Also, traditionally the focus has been on new products or processes, but

recently new business models have come into focus, i.e. the way a firm
delivers value and secures profits.

*Schumpeter argued that innovation comes about

through new combinations made by an
entrepreneur, resulting in

* a new product,
* a new process,
* opening of new market,
* new way of organizing the business
* new sources of supply

1. Incremental innovation
Incremental innovation seeks to improve the systems that already exist, making
them better, faster cheaper.

2. Process innovation
Process innovation means the implementation of a new or significantly improved
production or delivery method.

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.

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.

6.Sustainable innovation
Eco-innovation is a term used to describe products and processes that contribute
to sustainable development.

7. Frugal innovation
Frugal Innovation is about doing more with less. Entrepreneurs and innovators in
emerging markets have to devise low cost strategies to either tap or circumvent
institutional complexities and resource limitations to innovate, develop and
deliver products and services to low income users with little purchasing power.
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.
9. Radical innovation
Radical innovations (sometime referred to as
breakthrough, discontinuous or disruptive innovations) provide something new to
the world that we live in by uprooting industry conventions and by significantly
changing customer expectations in a positive way. Ultimately, they often end up
replacing existing methods / technologies.

10. Open source innovation / CrowdsourcingIn production and

development, open source is a philosophy or pragmatic methodology that
promotes free redistribution and access to an end products design and
implementation details
11. Experience innovation
Companies that try to create holistic experiences by emotionally engaging their
consumers.
12. (I m)possible innovation

13. Disruptive innovation

A disruptive innovation is an innovation that helps create a
new market and value network, and eventually goes on to disrupt an existing
market and value network (over a few years or decades), displacing an earlier
technology.
14. User led innovations
The user is king. Its a phrase thats repeated over and over again as a mantra:
Companies must become user-centric. But theres a problem: It doesnt work.
Heres the truth: Great brands lead users, not the other way around.
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.

* Diffusion of Innovation (DOI) Theory, developed by E.M. Rogers in 1962, is

one of the oldest social science theories. It originated in communication to

explain how, over time, an idea or product gains momentum and diffuses (or
spreads) through a specific population or social system. The end result of this
diffusion is that people, as part of a social system, adopt a new idea, behavior, or
product. Adoption means that a person does something differently than what
they had previously (i.e., purchase or use a new product, acquire and perform a
new behavior, etc.). The key to adoption is that the person must perceive the
idea, behavior, or product as new or innovative. It is through this that diffusion is
possible.

The stages by which a person adopts an innovation, and whereby diffusion is

accomplished, include awareness of the need for an innovation, decision to adopt (or
reject) the innovation, initial use of the innovation to test it, and continued use of the
innovation. There are five main factors that influence adoption of an innovation,
and each of these factors is at play to a different extent in the five adopter categories.

* Financial pressures to reduce costs, increase efficiency, do more

with less, etc

* Increased competition
* Shorter product life cycles
* Value migration
* Stricter regulation
* Industry and community needs for sustainable development
* Increased demend for accountability
* Demographic, social and maket changes
* Rising customer expectations regarding service and quality
* Changing economy
* Greater availability of potentially useful technologies coupled with
a need to exceed the competition in these technologies