Identification of idea and approach

Identification of idea and approach

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  Identification of Ideaand Approach Venkatesh Sarvasiddhi
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  Agenda • Role ofIdeas in the New Context • Invention and Innovation • Ideation Process • Sources of Innovative Ideas • The Marketing Angle • Approach: Pursuit of Innovation • Various Business Models • Legal Issues and IP Protection • Concluding Remarks • References
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  Role of Ideasin the New Context • Globalized Economy • Sources of Competitive Advantage • Changing Needs of the Customers • Entry of Competitors and Substitute Products • Adaptive Nature of Organizations • Organic and Inorganic Growth • Technology for Growth and Survival
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  Invention and Innovation •Discovery vs. Invention vs. Innovation • Newton discovered gravity • A.G. Bell invented telephone or Edison invented light bulb • “Desh” Deshpande innovated about optical routers • Innovation has an inherent “market” or “customer” element in it
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  Invention and Innovation…… •Common Sense definition of innovation – new, high-tech, novel • An innovative product/service makes a leap in the benefit- to-cost ratio in some area of endeavor • Costs – money, difficulty, physical risk, inconvenience • Benefits – monetary, pleasure, health, fun • Optical Communications – Speed vs cost • Flexible Manufacturing System – choice vs cost • Web-enabled processes – customer satisfaction vs cost
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  Invention and Innovation…… •Management innovation – JIT inventory • Branding innovation – Starbucks coffee joints • Marketing innovation – Frequent flier programs • Pricing innovation – Low budget airlines • Productivity innovation – Assembly line KEY Find gaps in market created as a result of change in values, perceptions, attitudes, demographics
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  Invention and Innovation…… •Ready-made food packets, fast-food chains • Installment buying • Insurance • Limited liability companies • Patents • Futures and Options (Derivative instruments)
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  Ideation Process • Rationalor Creative -- Left Brain or Right Brain • Does experience matter? • Louis Pasteur: Fortune favours the prepared mind • Role of the environment and the ecosystem • Disruptive vs Incremental
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  Ideation Process …. •Periods of Paradigm Changes – Rules of the game change – Scale, size, incumbency does not matter • Microsoft • Cisco • Infosys • Counterexample: Google
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  Sources of InnovativeIdeas • Hitting innovative ideas is a systematic, organized, rational work usually done in many stages – analyze, design experiments, run pilot, collect data, analyze • Treat change as opportunity, look for new realities and incongruity between people’s perception of the reality and what has become actual reality
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  Sources of InnovativeIdeas • Population – size, age distribution • Economic class and income distribution • Educational status • Cultural preferences • Rural-Urban shift
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  Sources of InnovativeIdeas ….. Core Technologies Enabling Technologies Peripheral Technologies DSP, Routing Algorithms Processors, ASICS, FPGAs Packaging, Display, Battery
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  The Marketing Angle •Features depend on the stage • Quartz Watch, Mobile Phone, Palmtops • USP – Unique Selling Proposition • Differentiator – Unfair advantage • Mindshare – recognition, recall
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  Approach: Pursuit ofInnovation • Identifying the right business model • Story – a drama with clearly delineated characters and their plausible behaviour • Revenue Model • What drives the prices and costs • Path to profitability • Insight -> Business Model -> Enterprise
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  Various Business Models •Concept of a value chain • Raw Material, Production, Distribution, Retailing, Consumption • Concept, Design, Detailing, Implementation, Validation, Delivery, Usage • Value Creation, Value Delivery and Value Extraction  High Tech, IP Driven – features, performance  Cost Driven, Operating Efficiency  Relationship, Customer Franchise, Branding
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  Legal Issues andIP Protection • Patents, Copyrights, Trademarks, Design Registration • IP Protection Costs • IP Violation / Infringement • Financing implications – Catch 22 • Intangible Assets and Valuation
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  Concluding Remarks • Idea-drivencompanies need to be promoted • Highest value creation with least resource inputs • Need careful planning and addressing of ALL issues • Right balance between experience and creativity, left and right brain thinking • Approach is as important as the Idea
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  References 1. Peter Drucker– Innovation and Entrepreneurship: Practices and Principles 2. Clayton M. Cristensen – The Innovator’s Dilemma 3. Robert D. Hisrich and Michael Peters – Entrepreneurship 4. James Collins and Jerry Porras – Built to Last 5. Gary Hamel and C.K. Prahalad – Competing for the Future
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  Thank You !! Questions?