Innovation models

Presented by-

Ashish Singh (070)
Gunjan Jain (079)
Surabhi Makhija (080)
Aastha Kawatra (087)
Overview
Meaning of Innovation
Why do we innovate
Models Of Innovation
Druckers Model
Linear Model
Non Linear Model
Flexible Model
Radical And Incremental Model
Henderson Clark Model
Disruptive Technological Change Model

WHAT IS INNOVATION?
Innovation refers to both the
output and the process of
arriving at a technologically
feasible solution to a problem
triggered by a technological
opportunity or customers
need

INNOVATION
Innovation takes place through the
interaction of three intermingled factors
or forces i.e.

1. What technology is available to
produce

2. Whether that technology is viable in
the marketplace

3. What features or services are desired
by consumers


Why Innovate?
Otherwise their
survival chances
are seriously
threatened
Organization
prepare
themselves to
innovate on a
continuing basis
Turbulent and
rapidly changing
economy
Models of Innovation
Druckers Model
Flexible Model
Linear Model
Henderson and Clark
Model
Radical and
Incremental Model
Non Linear Model
Disruptive
Technological
Change Model
Druckers Model
Druckers Innovation process
Prepare for
Innovation
Conduct a
Systematic,
Powerful &
Organized
Search
Perform
Diagnostic
Analysis of
Resultant
Opportunities
Exploit the
Opportunities
Prepare for Innovation
1. Evaluate the lifecycle of existing services and products.

2. Set up a systematic abandonment process.

3. Compute the post abandonment revenue gap.

4. Set up separate organizations with separate reporting
lines, measures, structures, and sufficient resources to
bridge innovation gap.
Conduct a Systematic Search
The seven Innovation sources are:

1. Unexpected occurrences

2. Perception reality incongruities

3. Process weaknesses or needs

4. Industry or market changes

5. Demographic changes

6. Buyers attitude & priority changes

7. New scientific & business knowledge

Perform diagnostic analysis of resultant
opportunities
1. Conduct conceptual analysis what the 7 sources mean to the
organizations services, processes, channels, technologies.

2. Conduct perceptual analysis- listen & understand

3. Conduct perceptual analysis- listen & understand

4. Use focus groups to corroborate the analysis

Exploit the Opportunities
1. Conduct small scale pilot tests

2. Commercialize in stages.

3. Provide adequate resources

4. Evaluate & measure success

Linear Model
Continued..
1. When research is conducted with little or no regard to commercial applications it
is basic research.

2. When commercially useful methods are the subject of examination, the activity
is called applied research.

3. When specific products or processes are being designed and tested, the process
is called development.

4. Applied Research is the typical entry point of industry and Development is
the last major stage in the R&D model, leading directly to Commercialization
Link between knowledge and economic
performance
Knowledge
discovered in
universities
Passed to firms
trough
publications,
patents &
scientific
correspondence
To customers
(Products &
Services)
2 Components of Linear Model
1. Technology Push
2. Market Pull
Non linear Model
It emphasizes the social-cultural-technical nature of innovation in
context to industry & technology

The first path of innovation process , central chain of-innovation,
begins with DESIGN & continues through DEVELOPMENT &
PRODUCTION to MARKETING

The second path is a series of feedbacks
Chain-Linked models
Potential
Market
Invent/
produce
analytic
design
Detailed
design &
test
Redesign &
procedure
Distribute &
market
Existing corpus of knowledge
RESEARCH
SECOND
PATH
FIRST PATH
The Two Phases
Innovation process at firms level

The innovation chain is visualized as a path starting with the perception of a
new market opportunity and/or a new science & technology- based invention

Feedback relations are generated : short feedback loops link each downstream
phase in the central chain with the phase immediately preceding it and longer
feedback loops link perceived market demand and product users with phase
upstream

Problems identified by the processes of designing and testing new products and
new processes often spawn research engineering disciplines & also in sciences.
Industry focused process of innovation

Innovation takes place with the help of available knowledge.
When corporate engineers confront a problem in technical innovation, they
will call first on known science & technology e.g. automobile industry

Only when those sources of information fail to provide adequate
information the industry goes in for R & D in the innovation process .
Firms below a certain size cannot bear the cost of an R & D team.

The Two Phases
Flexible Model
Initially, Innovation was deemed to be linear / directed / palnned
activity.

Now innovation is regarded also as non-linear and ideas / improvements
can emerge from any source and at any stage of innovation process.

The combination of linear & non linearity approaches have led to
emergence of Third Generation models which reflect complexity of real
innovation process.

These models include Technology Push + Market Pull combination, R&D
+ Marketing, Cyclical Model etc.
Continue..
The models attempt to explain the radical innovation process in
rapidly changing business environment.

In these models, phases are over lapped i.e. development in more
than one phase can continue at the same point of time.

No design is locked down earlier than absolute necessary so as not
to miss a newly emerging technology or new opportunity.
Radical and Incremental Model
Innovation is incremental if it will build upon existing knowledge and
resources within a certain company, meaning it will be competence-
enhancing.

Innovation is radical if it differentiates the innovation based on the
technological changes and on the impact upon the market
competitiveness.


An incremental innovation will involve modest technological changes and
the existing products on the market will remain competitive.

A radical innovation will instead involve large technological
advancements, rendering the existing products non-competitive and
obsolete.
Continued
Example..
Henderson-Clark Model
ENHANCED
DESTROYED
ENHANCED
DESTROYED
ARCHITECTURAL
KNOWLEGDE
COMPONENT
KNOWLEDGE
Henderson-Clark Model
1. Incremental
Minor improvement or change
Require little new organizational knowledge
Uses existing organizational skills or capabilities
Planned and managed by Firm

2. Modular
Significant changes in element / practices / technologies
No Significant Changes To Existing Configuration
No new organizational knowledge.
Example: Analog -> digital


Henderson-Clark Model
3. Architectural
Using existing practices/Technologies
Reconfigure in new/different ways. Example: Ceiling Fan to
Portable Fan
Architecture of Product is different


4. Radical
Revolutionary Changes
Clear departure from existing practices/technology
Require new knowledge skill / capabilities
Both components and configuration changes



Disruptive Technological Change Model
Clayton Christensen was the one behind this theory.

Disruptive innovation will often have characteristics that
traditional customer segments may not want, at least
initially. Such innovations will appear as cheaper, simpler
and even with inferior quality if compared to existing
products, but some marginal or new segment will value it.

This theory is easily depicted in Disk Drive Industry.

Example..