Innovation

and
Entrepreneurship
Innovation- Concept- Meaning

Innovation is the
practical
implementation of
ideas that result in the
introduction of new
goods or services or
improvement in
offering goods or
services
Sources of Innovation

Unexpected
Incongruity
Market Structure
Necessity
Demographics
Changing perception
 New Knowledge
Types of Innovation
 Incremental Innovation

Incremental Innovation is the most common form of innovation. It utilizes your existing
technology and increases value to the customer
 Examples include adding new features to existing products or services or even removing
features
Disruptive innovation

Disruptive innovation, also known as strength innovation, involves

applying new technology or processes to your company’s current
market
 It might change the entire business Process or operations.
Architectural innovation

 Architectural innovation is simply taking the lessons, skills and

overall technology and applying them within a different market.
 This innovation is amazing at increasing new customers as long as
the new market is receptive. Most of the time, the risk involved in
architectural innovation is low due to the reliance and reintroduction
of proven technology
Radical innovation

 Radical innovation is what we think of mostly when considering

innovation
 It gives birth to new industries (or swallows existing ones) and
involves creating revolutionary technology.
Peter Drucker theory of Innovation

 Drucker defined innovation as the task of endowing human and

material resources with new and greater wealth-producing
capacity.
 “The large organization has to learn to innovate, or it will not
survive.” He expanded on this with “Managers must convert
society’s needs into opportunities for a profitable busine
Drucker’s Seven Sources for Innovative Opportunities

 The Unexpected
 The Incongruity
 Innovation based on process need -
 Changes in industry or market structure
 Demographics
 Changes in perception, mood and meaning
 New Knowledge
 Drucker’s Five Principles of Innovation
Begin with an analysis of the opportunity.
Analyze the opportunity
To be effective, the innovation must be simple and clearly focused
on a specific need.
Effective innovations start small.
 Aim at market leadership
 Innovation Theory of Schumpeter
 A dynamic theory of entrepreneurship was first advocated by
Schumpeter (1949) who considered entrepreneurship as the
catalyst that disrupts the stationary circular flow of the economy
and thereby initiates and sustains the process of development.
 Embarking upon ‘new combinations’ of the factors of production
– which he succinctly terms, innovation – the entrepreneur
activates the economy to a new level of development.
 Schumpeter defines entrepreneurship as “a creative activity”. An
innovator who brings new products or services into economy is
given the status of an entrepreneur. He regards innovation as a
tool of entrepreneur, The entrepreneur is viewed as the ‘engine of
growth’,
 Concept of innovation and its corollary
development embraces five functions
 The introduction of a new product with which consumers are not yet
familiar or introduction of a new quality of an existing product.
 The introduction of new method of production that is not yet tested
by experience in the branch of manufacture concerned, which need
by no means be founded upon a discovery scientifically new and
can also exist in a new way of handling a commodity commercially.
The opening of new market that is a market on to which the particular
branch of manufacturer of the country in question has not previously
entered, whether or not this market has existed before.
Conquest of a new source of supply of raw material and
 The carrying out of the new organization of any industry
 X-Efficiency Theory
 Proposed by Harvey Leibenstein’s
 X-efficiency is the degree of inefficiency in the use of resources
within the firm: it measures the extent to which the firm fails to
realize its productive potential. According to Leibenstein, When
an input is not used effectively the difference between the actual
output and the maximum output attributable to that input is a
measure of the degree of X-efficiency.
 X-efficiency arises either because the firm’s resources are used in
the wrong way or because they are wasted, that is, not used at al
 Leibenstein’s X-Efficiency Theory

 Leibenstein identifies two main roles for the entrepreneur: (i) a gap
filler and (ii) an input completer.
 These functions arise from the basic assumptions of X-efficiency
theory. Thus it is clear that “if not all factors of production are
marketed or if there are imperfections in markets, the entrepreneur
has to fill the gaps in the market. To put the enterprise in motion, the
entrepreneur should fill enough of gaps
 The second role is input completion, which involves making
available inputs that improve the efficiency of existing production
methods or facilitate the introduction of new ones. The role of the
entrepreneur is to improve the flow of information in the market.
Creative Thinking

 Creative thinking is the ability to consider something in a new

way. It might be a new approach to a problem, a resolution to a
conflict between employees, or a new result from a data set.
 Employers in all industries want employees who can think
creatively and bring new perspectives to the workplace
Barriers to Creativity

 Fear of Failure
 Lack of Adequate Motivation and Commitment
 Lack of Sufficient Funds.
 Lack of Knowledge
 Routinized Thinking
 Premature Evaluation
 Environmental, Cultural, geographical, political barriers.
Techniques for improving creativity

Learn Through Collaboration.

Do Something You Love.
Find Inspiration From Other Industries.
Unplug (Or Just Do Nothing)
Set the Right Mood.
Use the Six Thinking Hats Technique.
 Ask For Advice or Feedback
Sanjeev Bikhchandani

 Sanjeev Bikhchandani is an Indian businessman, who is

the founder and executive vice chairman of Info Edge
which owns Naukri.com, a job portal, as well as the co-
founder of Ashoka University.
 He was given the Padma Shri Award, the fourth Highest
civilian award in India, in January 2020.
Sanjeev Bikhchandani

 He attended St. Columba's School, Delhi and

finished schooling from there in 1981. There after,
he obtained a Bachelor of Arts degree in
economics from St. Stephen's College, Delhi in
1984.
 He completed his MBA from IIMA in 1989.He is
ranked #68 in Forbes India Rich List 2020 with a
net worth of US$2.1 Billion.
 Career

 Sanjeev after his PG left a job marketing Horlicks at

HMM (now known as GlaxoSmithKline) in 1990 to set up
two companies Indmark and Info Edge along with a
partner.
 The first company specialized in pharmaceutical
trademarks and the second produced salary surveys and
reports
Career and Growth

 1993, he and his partner decided to go separate ways.

Both partners got one company each. Sanjeev got Info
Edge.
 In 1997, Bikhchandani set up Naukri.com, jobs portal on
a server in the United States,and later Quadrangle, an
offline executive search business. In 2005, Naukri.com
was reported as being India's largest web-based
employment site.
Continued

 Building up in the websites business, Infoedge later

launched other classified sites like 99acres in real estate,
Jeevansathi in matrimony and Shiksha in education .
 He is also an astute investor, having invested in unicorns
like Policybazaar and Zomato. Additionally, he is a part of
the 'Vision Circle' of FYI (Foundation for Young
Innovators) - a shark tank for social initiatives exclusively
open to high school students.