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Innovation & Entrepreneurship - Coggle Diagram
Innovation & Entrepreneurship
Innovation
the process of creating value from ideas
Innovation is all about changes
Value may be defined in terms of creating a product or service which others find useful and which they value
Hamel and Välikangas, (2003) suggested we think of innovation taking place at three levels
resilience, renewal & revolutionary
Renewal: Change for an industry incumbent, rethinking the existing business model
Resilience: Continuous reconstruction (not just improvement) working on values, processes and behaviours
Revolution: The path of creative destruction used by outsiders, changing the fundamentals of the industry
sustaining vs disruptive innovation
Sustaining
sustaining innovation targets demanding, high-end customers with better performance than what was previously available
Some sustaining innovations are the incremental year-by-year improvements that all good companies develop and present to the market
Other sustaining innovations are breakthrough products in their operations and application
established competitors almost always win the battle of sustaining technology
Disruptive
don’t attempt to bring better products to established customers in existing markets. They introduce products and services that are not as good as currently available products but they are simpler, more convenient, and less expensive and appeal to new or less-demanding customers
Once the disruptive product gains a foothold in new or low-end markets, the improvement cycle begins
Successful disruptions are almost always launched by new entrants
In every market, there is a distinctly different trajectory of improvement as innovating companies introduce new and improved products
This pace of technological progress almost always outstrips the ability of customers in any given level of the market to apply it
A company whose products are focused on mainstream customers’ current needs today will probably overshoot these needs in the future
This happens because companies keep striving to make better products that they can sell for higher profit margins to not-yet-satisfied customers in more demanding levels of the market
Closed vs open innovation
Closed
a company generates, develops and commercialises its own ideas
Open
newer model of open innovation, a company commercialises both its own ideas as well as innovations from other firms and finds ways to bring its in-house ideas to market by deploying pathways outside its current businesses.
Chesbrough (2003) notes that some vehicles for accomplishing open innovation commercialisation include startup companies (which might be financed and staffed with some of the company’s own personnel) and licensing agreements
Norms
Organisational structure (in particular ambidextrous organisational design) and effective management of culture becomes critical to mobilising creativity and innovation within the organisation
innovation inherently involves risk taking, non- standard solutions, and unconventional teamwork practices all of which are not easily managed by formal control systems
Organisational ambidexterity refers to an organisation's ability to be efficient in its management of today’s business and also adaptable for coping with tomorrow’s changing demand
organisational design and senior leadership behaviours are powerful levers in driving streams of innovation and that ambidextrous organisational designs permit a business unit to simultaneously explore and exploit
six key norms of innovative organisational cultures
A focus on idea generation.
Supporting a continuous learning culture.
Risk taking.
Tolerance of mistakes.
Supporting change.
Conflict handling
Dyer et al. (2009) identify five capabilities
Associating: drawing connections between questions, problems, or ideas from unrelated fields.
Questioning: posing queries that challenge common wisdom.
Observing: scrutinising the behaviour of customers, suppliers, and competitors to identify new ways of doing things.
Experimenting: constructing interactive experiences and provoking unorthodox responses to see what insights emerge.
Networking: meeting people with different ideas and perspectives