Innovations models and approaches- Scope of innovation

Scope innovation:
Product
Process
Position
Paradigm

Innovation approaches
Incremental innovation
Radical innovation
Disruptive innovation

1. Innovations
models
Sergio Pinzon
This Phoo by Unknown Author is licensed under CC BY-NC-ND

2. Agenda
•Recap
•Scope of innovation
•Innovation approaches
•Announcement and homework

3. Exercise
After watching the video on tequila production, if you were a business analyst tasked with
creating a business model for a tequila manufacturer, consider how you would approach the
following aspects:
•Activities and resources
•Channels
•Revenue streams

4. Final assigment Preparation
•Students will undertake prior research on an organization's
innovations and will write 750 words on the following:
•Communicate your findings on one contemporary innovation
approach, underpin the theory and explain why the approach
you chose plays an important role in organizations today. You
can choose more than one approach
•Deadline: Monday, 28 October 2024

5. The scope for innovation

6. Product innovation
•A new design of car
•A new insurance package for accident-prone babies
•A new home-entertainment system

7. Product innovation
Changes in the things (products/services) an organization offers

8. Process innovation
Changes in the ways these offerings are created and delivered
Henry Ford's invention of the world's first moving assembly line.
E commerce sites
Amazon
AliExpress
E bay
3D printing

9. Position innovation
ONLINE HOME RENTAL LOW-COST AIRLINES
Changes in the context into which the products/services are introduced

10. Paradigm innovation
Changes in mental models – include the shift to low- cost airlines, the provision of online insurance and other
financial services and the reposition
•Ownership to rental
•Mass customization and co-creation
•Service innovation

11. Activity 2- Example of scope innovation
Provide your example of scope innovation:
a)Product
b)Process
c)Position
d)Paradigm

12. Innovation approaches
Incremental innovation focuses on
smaller process improvements and
changes
Examples include the typical improvements
and advances in current products and
services.
Radical innovation includes major
product or process changes or new
product development
It’s the launching of inaugural breakthroughs
such as personal computers and overnight
mail delivery
Disruptive innovation goes beyond radical innovation and transforms
business practice to rewrite the rules of an industry. In other words, the
business practice of an entire industrial sector could be changed radically.

13. This Photo by Unknown Author is licensed under CC BY-
SA
–Builds on a company’s existing resources and capabilities
–Fits with its existing business model
–Fits with existing customer base
Routine(orIncremental)Innovation

14. Page21
-
•In2012,atractorcompanybegan
equippingtheirtractorswith
sensors,sofarmerscouldtrack
andmonitortheiryields
•Theyknewthepotentialofbig
dataanddecidedtoleveragethe
technology fortheirbottomline
RadicalInnovation:Example
“Radicalinnovationfocusesonlong-termimpactandmayinvolvedisplacingcurrent
products,alteringtherelationshipbetweencustomersandsuppliers,andcreating
completelynewproductcategories.”
Hopp
etal,2018

15. Disruptive Innovation
15
innovations, changes, processes
that challenge the status quo (and
dominant design) of an industry and
have the potential to completely
upset the make-up of the industry
AKA disruptive innovation /
disruptive change
Requires a new business model, but
not necessarily a technological
breakthrough
Phrase introduced by Bower & Christensen (1995):

16. https://www.youtube.com/watch?v=w3qt04mYI
Pn
ago
e26
Disruptivetechnology:examples
•3D printing disrupts manufacturing
•ManufacturelocallyLow-costproduction
•Speedsupproduction
•Lowersprototypingcosts/time
•Makes new designs possible
•Consumers get what they need from each other
•Pay for access to goods and services
•rather than owning them
•Collaborative commerce disrupts hospitality, e
commerce, retail

17. Exercise 3- Example of
innovations approach
•Please provide two examples each for the following:
•a. Incremental innovation
•b. Disruptive innovation
•c. Radical innovation

18. Next week announcement and homework
Next week, we will start after 10:30- TBC
Homework: Research the following companies and gather insights on their business models, types of
innovation, and approaches to innovation:
a)Returnr
b)Vanguard Laundry
c)Hysata
d)New Story
e)Brick Save
Bring your findings for discussion