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INNOVATION STRATEGY

INNOVATION STRATEGY. 2010 Dr Ilan Bijaoui ibii@netvision.net.il. http://www.youtube.com/watch?v=C48YI9gYolY. INVENTION – DEFINITION Two roads diverged in a wood, and I took the one less traveled by, And that has made all the difference Robert Frost from “The Road Not Taken”.

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INNOVATION STRATEGY

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  1. INNOVATION STRATEGY 2010 Dr Ilan Bijaoui ibii@netvision.net.il

  2. http://www.youtube.com/watch?v=C48YI9gYolY

  3. INVENTION – DEFINITIONTwo roads diverged in a wood, and I took the one less traveled by, And that has made all the differenceRobert Frost from “The Road Not Taken”

  4. THE INNOVATION ECOLOGY AND BREAKTHROUGH DILEMNA • University-Education – Multi disciplinary • Research Organizations – Not development • Government funding agencies –find breakthrough researches • Technology companies – Risk (funds, failure) • What is needed –What is possible

  5. INVENTION APPROACHES

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  7. TYPES OF INNOVATION Product Innovation: The creative development and commercialization of radically new products, often grounded in new technology and linked to unmet customer needs Process Innovation: The development of new ways of producing products that lead to advantage in cost. • Business Innovation: • The development of new business and new way of conducting business that provides unbeatable competitive advantage Source:Arthur D. Little “ Global Survey on Innovation” in Jonash R.S. The Innovation Premium, Persus Books, 1999 p 114-136

  8. TYPES OF INNOVATION Position Innovation: Changes in the context in which they are created or delivered.(Ford, Lucozade drink from children convalescence to performance drink) Paradigm Innovation: Changes in the underlying mental models which frame that the organization does, (low cost airlines) Source:Tidd J. Bessant JManaging innovation John Wiley 2006 p 10

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  10. MARKETING HIGH TECH Source: Mohr j. Sengpta S Slater S Marketing High Technology Products and Innovations Second Edition Pearson Prentice Hall 2004 p 1-16

  11. INITIATING FACTORS TO INNOVATION • Business Objectives • Financial goals • Sales growth • Market Share • Globalization • Material costs-availability • Shorter Life Cycle • Suppliers initiatives • Environmental Change • Technology • Regulation • Invention • Demography, lifestyle • Customer requests • Rivalry-Alliances

  12. TOP TECHNOLOGY TREND • Nanotechnology: coal diamond; silicon barrier radiation therapy; • Bioinformatic: genome IBM life science units • Convergence of digital technology: cellphone, television and computer, VOIP, digital photography • Crytography information secure • Quantum computing • XML: Standard for data exchange • Video Games

  13. Potential NT applications : • - Increases in computer speed and storage capacity, • - Therapies for several different types of cancer, • - More efficient lighting • More battery storage, • Major reduction in the cost of desalinating water, • Clothes that never stain • Glass that never needs cleaning.

  14. ENTREPRENEURIAL BREAKTHROUGH VERSUS CORPORATE INCREMENTAL IMPROVEMENTS • Entrepreneurial breakthroughs: unorthodox approach, creativity • Incremental Improvements: body of knowledge conventional way of thinking • Edison little schooling. Steve Wozniak Apple, no graduation; Bill Gates, dropped out Harvard, Michael Dell quite university –Dell Computers (Bhide 2000 p36 • Large firms: Intel instruction per second grew per 3million % ; P&G 1250 PhD, 3800 per years 24000 active patents • Hybrid education? Source; Baumol W.J.(2005) “Education for Innovation” in Innovation Policy and the Economy Vol 5 National Bureau of Economic Researches

  15. INNOVATION AXES Manufacturing Technology (Process) Market Embedded Technology Product

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  17. WHY CONTINUOUS/DISCONTINUOUS INNOVATION? • Discontinuous Innovation • Discovery of new knowledge related to market need or technological capabilities • From horse to car • Business reshaping: kerosene for lighting; ice for cooling; IT+telecom and airline, banking, entertainment • Continuous Innovation • Existing infrastructures • Existing knowledge • Existing markets • Incremental • Convergent thinking- progressive refinements • Increasing specialization

  18. PRINCIPLES OF DISRUPTIVE TECHNOLOGY Good Management is the reason that companies fail because they listened to customers wants and needs , invested in technology to support customers and subsequently lost market Leadership (Christensen,1997)

  19. Companies depend on customers and investors. • Small market doesn’t solve problems of large firms. • Market that doesn’t exist cannot be analyzed • Technology supply may not equal market demand • Disruptive technologies are lower performing • Companies overshoot their market with technology • IBM survived the move to PC’s • More experienced firms made better decisions

  20. SOURCES OF DISCONTINUITY

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