CBM 121

STRATEGIC INNOVATION
AND
ENTREPRENEURSHIP
Presented by:
Jocie Jane S. Panisa
Jasmine M. Raboy
Cherry Jean N. Tunda-an
Eric Dave A. Eduaba
 UNDERSTANDING INNOVATION
Innovation- plays a large part in the strategies of organizations that meant to
move to a new better position where they are more profitable and valuable. It is a
powerful driver in the competitive process and enables firms to redefine the
marketplace in their favor and achieve growth.

2 PROCESS FOR INNOVATION CATALYSTS FOR SUCCESFUL INNOVATION

• Consciousness
• Idea building • Multiplicity
• Connectivity
• Idea analysis
• Accessibility
• Consistency
 CHALLENGES AND LESSONS
FOR INNOVATORS

• INNOVATION DOES NOT ONLY MEAN PRODUCT

DEVELOPMENT.
• SUCCESSFUL INNOVATORS OFTEN USE AN "INNOVATION
PYRAMID".
• BUSINESS PROCESSES AND CONTROLS CAN STIFLE
AND BLOCK INNOVATION.
• INNOVATIVE BUSINESSES ALLOW DEVIATIONS FROM
THE PLAN.
• STRONG LEADERSHIP.
INNOVATION
• INNOVATIONS NEED CONNECTOR PEOPLE WHO CAN
PYRAMID
COMBINE THINGS, EITHERAND MAKE THINGS HAPPEN.
BOTTOM-UP AND TOP DOWN INNOVATION

-Innovation can come from bottom-up with ideas and the drive to see them through
originating in marketing outposts, not from the top of the organization. Top- down innovation
in financial service has since resulted in automated teller machines (ATM) and telephone
inernet banking .

COMPETITION DRIVEN BY
INNOVATION
-Invention describes the discovery of any new product, process, or the modification and
recombination of existing ones; innovation concerns the commercialization .The successful
commercialization of a new product or service allows a firm to extract temporary monopoly
profits.
AVOIDING PITFALLS
A.Premium-position captivity
- Theterm refers to the inability of a firm to respond satisfactorily to new,
low-cost competitive challenges or to a significant shift in customer views of a product.

B.Breakdowns in innovation management

-This is when a problem arises in the management of internal processes
for updating existing products and services and creating new ones.

C.Abandoning a core business

-A further cause of decline in revenue or innovation is a failure to fully
exploit opportunities in the core business.

D. A shortfall in talent and skills

- Firms frequently fail to innovate because they lack people with the necessary skills.

E. Failing to understand the market

-A questioning approach is a way to make sure a business is market aware of everything.
SIGNS THAT INNOVATION IS WEAK OR
WEAKENING
1. People laugh at new ideas.

2. The phrase "you can't do that because we've always done it this way" is often used to counter
new ideas.

3. No one can remember the last time anyone did anything really radicaL.

4. People think innovation is about R&D.

5.People have convinced themselves that competing on price is normal

6.The organization is focused more on process than on results

KEY QUESTIONS TO ASSESS EFFECTIVENESS OF
INNOVATION STRATEGY
SIX (6) R'S APPROACH:

• RESEARCH - WHAT CAN YOU LEARN FROM PEOPLE OR ORGANIZATIONS THAT DO THIS ACTIVITY
WELL?

• REFRAME - WHAT IS A COMPLETELY DIFFERENT WAY OF THINKING ABOUT THIS?

• RELATE - WHAT IDEAS CAN YOU BORROW FROM ANOTHER ACTIVITY OR FIELD?

• REMOVE - WHAT CAN YOU ELIMINATE?

• REDESIGN - WHAT CAN YOU DO TO IMPROVE THIS ACTIVITY, PROCESS OR PROCEDURE?

• REHEARSE - WHAT CAN YOU DO TO BE CERTAIN YOU HAVE A GOOD IDEA?

TO IDENTIFY IMPROVEMENTS, HAVE YOU:

• ASKED YOUR CUSTOMERS FOR IDEAS?

• TALKED TO PEOPLE IN OTHER AREAS WHO DEAL WITH SIMILAR ISSUES?
• TALKED TO OTHER COMPANIES AND EXPLORED HOW THINGS ARE DONE IN ANOTHER
INDUSTRY OR COUNTRY AND THOUGHT ABOUT IDEAS YOU CAN BORROW, ADAPT OR
COMBINE?
• TALKED TO CREATIVE PEOPLE WHO KNOW NOTHING ABOUT THE AREA BUT WHO MAY
HAVE DIFFERENT PERSPECTIVES? • GATHERED A GROUP TOGETHER TO BRAINSTORM
IDEAS?

IF YOU ARE FACED WITH A SPECIFIC PROBLEM OR CHALLENGE, HAVE

YOU CONSIDERED THE FOLLOWING:
• IF THIS PROBLEM WAS SOLVED, WHAT WOULD THE SOLUTION LOOK LIKE?
• WHAT WOULD RADICALLY CHANGE WHAT YOU DO?
• HOW YOU COULD REVERSE THE WAY YOU THINK ABOUT THE PROBLEM?
• HOW YOU COULD BUILD ON THE CURRENT PLUSES AND ELIMINATE THE MINUSES?
INNOVATION AND THE INDUSTRY
LIFE CYCLE
INNOVATION frequently lead to the birth of new industries. Industries
tend to follow a predictable industry life cycle

FOUR DISTINCT STAGES

• Introduction
• Growth
• Maturity
• Decline
INNOVATION AND THE INDUSTRY
LIFE CYCLE
The number and size of competitors change as the
industry life cycle unfolds. Likewise, different types
of consumers enter the markets at each stage. Each
stage of the industry life cycle requires different
competencies in order for the firm to perform well
and satisfy that stage's unique customer group.
lInnovation can emerge at any stage of the industry
life cycle, which in turn can initiate a new cycle.
 STRATEGIC
ENTREPRENEURSHIP
Entrepreneurship- describes the process by which people undertake economic
risk to innovate - to create new products, processes, and sometimes new
organizations.

- If successful, entrepreneurship not only drives the competitive process, it also

creates value for the individual entrepreneurships and society at large.

Entrepreneurs- innovate by commercializing ideas and inventions.

Strategic entrepreneurship- describes the pursuit of innovation using tools and
concepts from strategic management. We can leverage innovation for
competitive advantage by applying strategic management.

Although many new ventures fail, many achieve success and some achieve
spectacular success. Examples are:

- Jollibee Food Enterprise

- Goldilocks
- Amazon.com
- Apple, Inc.
TYPES OF INNOVATION
 4 TYPES OF INNOVATION

new
ARCHETICTURAL RADICAL
INNOVATION INNOVATION
Markets
existing

INCREMENTAL DISRUPTIVE
INNOVATION INNOVATION

existing new
Technologies
 INCREMENTAL
INNOVATION
Incremental innovation is a series of small improvements or upgrades
made to a company's existing products, services, processes or
methods. The changes implemented through incremental innovation
are usually focused on improving an existing product's development
efficiency, productivity and competitive differentiation.

•Benefits:
Lower Cost Innovation
Stay Competitive
 DISRUPTIVE INNOVATION
• Disruptive innovations are characterized by the introduction of new technologies
to open up entirely new markets. These innovations often start with niche markets
and gradually gain broader acceptance, eventually disrupting existing markets and
business models.

• By considering both the technological and market dimensions, this framework

provides a nuanced understanding of how innovations can vary in their nature and
impact. Different types of innovation may require distinct strategies for
development, adoption, and commercialization.
 ARCHITECTURAL INNOVATION
Architectural innovations involve reconfiguring existing
technologies in novel ways to enter new markets. While
the underlying technologies may not be entirely new, the
innovation lies in the way they are combined or applied to
address different market needs.
 RADICAL INNOVATION
Radical innovations involve the development of
entirely new technologies but are introduced to
existing markets. This type of innovation often
represents a significant departure from the current
state of affairs and can bring about transformative
changes in products or services.
 DISCONTINUITIES: PERIODS OF
PARADIGM CHANGE
• Discontinuities in the context of paradigm
shifts refer to periods of significant and abrupt
change in the fundamental assumptions,
beliefs, and practices within a particular field
or discipline. These discontinuities mark a
departure from existing ways of thinking and
operating, leading to the emergence of a new
paradigm. The concept is often associated with
the philosophy of science, particularly the
work of Thomas Kuhn.
 HYPERCOMPETATION

• Hypercompetition is a strategy with tactics that

an organization uses to disrupt the competitive
advantage held by industry leaders in the
market. Hypercompetition occurs at a rapid
pace, with quick decision-making.