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Business Innovation.pptx
- 2. Define Innovation 1 : a new idea, method, or device : novelty. 2 : the introduction of something new. A business innovation is a new or improved product or business process (or combination thereof)that differs significantly from the firm's previous products or business processes and that has been introduced on the market or brought into use by the firm A product is a good or service (or combination thereof). Business processes include all core activities by the firm to produce products and all ancillary or supporting activities
- 3. Business Innovation.. A product is introduced when it is made available for use by its intended users. A business process is introduced when it is brought into actual use in the firm’s operations. The minimum requirement for an innovation is that the product or business process must have one or more characteristics that are significantly different from what was previously offered- Utilities that create competitive advantage An innovation can also result from a series of minor improvements The adoption of a new or improved product or business process by a firm that is part of an enterprise group is an innovation Can be categorized to: 1. Product Innovation 2. Process innovation 3. Business Model Innovation
- 4. Need for Innovation MICRO Perspective Successful innovation allows you to add value to your business so that you can increase your profits Innovation helps you stay ahead of the competition-new ideas to the marketplace Innovation helps to take advantage of new technologies. Staying ahead of disruption-Business innovation means keeping track of the market’s direction in response to potential disruptions or a change in consumer demand. Improving your brand Increasing efficiency Attract and retain top talent
- 5. Need for Innovation MACRO Perspective economic growth- Economic growth refers to the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP. Future Jobs through Innovation- Technological advancement and increased productivity means major changes for careers today as well. According to the new World Economic Forum report, nearly 133 million new jobs may be created by 2022 while 75 million jobs are displaced by AI, automation and robotics. increased well-being and communication- Innovation and economic growth increases well- being because living standards rise. Reduced sickness, poverty and hunger Communication and educational accessibility-Technology innovation can also help rural areas thrive and become more sustainable. Although there are some barriers to technology adoption, such as low income or user capability, more people can access information an improve their knowledge despite their socio-economic position or demographic area. Environmental sustainability- Sustainable innovations are bringing positive impact to the society and environment
- 6. Types of Innovation Based on the Industry System: 1. Product Innovation 2. Process Innovation 3. Business Model innovation
- 7. Product Innovation The term “product” is defined in the System of National Accounts and encompasses both goods and services. Products are the economic output of production activities. They can be exchanged and used as inputs in the production of other goods and services, as final consumption by households or governments, or for investment, as in the case of financial products . A product innovation is a new or improved good or service that differs significantly from the firm’s previous goods or services and that has been introduced on the market Relevant functional characteristics include quality, technical specifications, reliability, durability, economic efficiency during use, affordability, convenience, usability, and user friendliness
- 8. Process Innovation The term business process includes the core business function of producing goods and services and supporting functions Distribution and logistics, marketing, sales and after-sales services; information and communication technology (ICT) services to the firm, administrative and management functions, engineering and related technical services to the firm, and product and business process development. A business process innovation is a new or improved business process for one or more business functions that differs significantly from the firm’s previous business processes and that has been brought into use in the firm
- 9. Business Model Innovation Business model innovation is the art of enhancing advantage and value creation by making simultaneous changes both to an organization's value proposition to customers and to its underlying operating model. the conscious change of an existing business model or the creation of a new business model that better satisfies the needs of customers This can be also called as the revenue model, based on which the organization grow in the market competitively
- 10. Based on the opportunities for change: “Jugaad” Innovation ( Ad-hoc Innovation) People do some kind of ad hoc arrangement at the local level, may not be patented or commercialized. Systematic(structured Innovation) The structured or systematic innovation takes place in one kind of enabling environment. Leads to intellectual property creation, which can be converted into technology transfer or some kind of commercialization.
- 11. Based on process of developing the innovation : Incremental Innovation Breakthrough Innovation
- 12. Frugal Innovation Frugal Innovation is closely similar to Social Innovation Provide more value to the customer at the minimum possible cost and this is the idea of a frugal innovation We provide Y product we provide Z product and customer is looking for X product and here lies the success of frugal innovation. If customer is looking for X product provide only X product, do not provide even the least features of Y and Z products.