...National Chiao Tung University GMBA Program Global Technology Strategy McKinsey Quartely Creating value through Innovation Team Lolo - 9988542 Alfonso – 9988 Date: May 31, 2011 Summary Innovation, according to the article, involves the development of new products or processes and the knowledge that produces them and those new products can either take the form of high-level building blocks, midlevel intermediate goods and ground-level final products. The underlying knowledge for new products includes high-level general principles, midlevel technologies, and ground-level, context-specific rules of thumb but technological innovations, especially high-level ones, usually have limited economic or commercial importance unless complemented by lower-level innovations. The world that we live in facilitate the quick dissemination of knowledge and breakthroughs travel easily, but their national origins are fundamentally unimportant and the debate as to whether innovations or innovators make the greatest contribution to economic prosperity, is deemed as ‘not helpful’, because they all play necessary and complementary roles. The enhancement of research in China and India, and their share of ‘cutting-edge work’, will improve living standards in the United States, implying that other countries can benefit from the advances without them actually affecting the country’s economy. Many cross-border flows are important to innovators, namely, the dissemination of knowledge including...
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...Media & Innovation What are the Effects of Netflix’s Innovation of the Value Chain? Source: (Netflix, n.d.a) WS 15/16 Current Issues in Media and Communication 1 Table of Contents • Key Slides • Getting to know Netflix • Disruptive Innovation of the Value Chain • Effects of the Innovation • Outlook • Bibliography WS 15/16 Current Issues in Media and Communication 2 Key Slides 1/3 Netflix can be regarded as a service business model within the video-ondemand area. It is known for being the pioneer offering its users entertainment content for a subscription fee. Since the foundation of Netflix in 1997 the new business concept turned into a success story with more than 70 million members around the world. People in 190 countries have access to Netflix‘s wide range of media entertainment possibilities and Netflix plans to add more to its list. The fact that their previous expansion meant 130 new countries in one go forecasts that Netflix will become a very important and influential global player in media entertainment industry. But how does all of it start? Innovation was the key. Netflix’s success in the new video rental business was based on the idea to offer an online DVD mail service. Adding new technology to a breakthrough idea created a combination which was meant to succeed. WS 15/16 Current Issues in Media and Communication 3 Key Slides 2/3 The users of the Netflix service are those who pay for it. In exchange...
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...relevant tool to generate innovation, value and new customer? Summarize the benefits and the limitation of this strategy. What can corporate do to minimize the impact of this unavoidable imitation/competition? 1. Blue Ocean Strategy (BOS): Benefits, limitations and risks Blue Ocean Strategy signifies all the industries which are not in existence today. In this kind of strategy, the market spaces are unfamiliar, unpolluted by competition. In this strategy, the demand is created rather than fought over. There is sufficient chance for growth which is swift and profitable. Competition is inappropriate because the rules of the game are waiting to be set. 1.1. Benefits of Blue Ocean Strategy The Blue Ocean Strategy is appropriate tool to generate innovation, value and new customers. Considering the condition of CLV it is suitable for this organization to go for it to generate value and innovation. This strategy encourages organizations to attain new ways of thinking which are different than the competitors. With the help of this strategy, organizations can create a new area of demand namely a Blue Ocean and get rid of an intensely competitive market namely a Red Ocean. When any organization successfully creates new markets without competitors they can have a clear Blue Ocean. According to this strategy the organizations must not only focus on the existing competition rather they should make the competition irrelevant. This can be done by creating value to the customers in...
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...Entrepreneurship and Innovation Session 3: Entrepreneurial Strategy Baden U’Ren buren@bond.edu.au Level 4, Room 9 5595 2212 Overview Review of the readings Innovation and Entrepreneurship Entrepreneurship in a Corporate Context Entrepreneurial Strategy What is Innovation? Something NEW that creates VALUE What is Innovation? “Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced” - Peter Drucker Source: Schaper & Volery (2007) Entrepreneurship and Small Business 2nd Edition. Wiley. p.69 Creativity ideas, concepts & inventions Innovation the process of development and commercialisation Entrepreneurship couples opportunities and resources Innovation Exploit Incremental Explore Radical Kirzner The producer-entrepreneur •Alert and responsive to opportunities that exist •Exploits disorder (gaps) to move the market back to equilibrium Schumpeter The innovator-entrepreneur: •Creates products and processes to disturb market equilibrium •Creates opportunities Innovation & Performance Some ‘stylised facts’ about the relationships between innovation and performance: Relationships between R&D, patents, new products and performance are strongest at the industry level, weakest at the firm level Returns from process innovation are typically...
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...Group 16 Innovation in Product Submission #2 Anant Jain B15131 Ankit Goel B15132 Anshul Jain B15134 2015 1. Introduction Innovation is refinement in a product, process, method, or a part thereof. Innovation has become a buzz-word in recent years, with increasing relevance of ‘innovation-centred business models’, and ‘innovation-led-entrepreneurism’. In fact, the success stories of Industrial America, technological Silicon Valley, American financial market, etc., are tales of constant innovations. ‘Digitization’ has shifted access to knowledge and information from a privilege to convenience: anyone who is willing and able to pay, has an access. Also, sharing of information and flow of payments and tenders through internet has changes businesses like never before. 1.1 What is Product Innovation? Product Innovation can be defined as creating a new product, or making changes in the existing product, or creating a differentiation in terms of utility or features of the product. Light Bulb, telephone, microprocessors, digital displays were great innovation in terms of making of new products, i-pods, cell phone, integrated circuits were innovations in terms of modification in existing products. Not all product innovations are technological breakthroughs- take a safety pin for example. Even candle, fountain pen, and scissors are examples of path-breaking revolution, that didn’t require significant technology, or invention capabilities. On the other...
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...Best Snacks Problem Solution Lashanna Dipiano MMPL/550 May 12, 2011 Phillip Norris Best Snacks Problem Solution Best Snacks, Inc is a 150 year old company that has been held publicly for more than 100 years. Although the company has enjoyed many years of success, it has recently failed sustain its success due to the lack of innovation and creativity over the last 5 years. In today’s business environment innovation is necessary to sustain success and is an integral part of the business model. The ability to learn faster, better, and more cheaply than the competitor can mean the difference between maintaining market leadership and barely surviving (Davila, Epstein& Shelton, 2006). To regain its long held standing as a leader in the snack industry Best Snack, Inc must implement a plan that focuses on creating a culture that cultivates innovation, developing management systems that are aligned with the new strategy, and creating a new product line that will bring the company back to the forefront in the snack industry. Describe the Situation Issue and Opportunity Identification Best Snacks, Inc has been a leader in the snack industry for many years. As the snack industry began to change to meet the demands of a consumer market that is more health conscious, Best Snacks has failed to meet the challenge. Best Snacks has been slow to adapt to change and stray away from its tried-and-true research, development, and marketing activities (University of Phoenix, 2006). The...
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...Journal Article Review 3: Innovations in Logistics Outsourcing Relationships: Proactive Improvements by Logistics Service Provider as a Driver of Customer Loyalty BUSI 613: Supply Chain Management Abstract The purpose of this journal article review is to discuss the article, Innovation in Logistics Outsourcing Relationships: Proactive Improvement by Logistics Service Providers as a Driver of Customer Loyalty by Carl Marcus Wallenburg. Currently, the number of outsourced logistics service providers has risen as a result of companies demanding their services. With more and more entering the market, competition between the providers is becoming more intense, and they must innovate their own logistics systems. With innovation, the providers may expect to their customer loyalties to grow and expand as they keep current customers and win over new ones. The question arises as to whether the providers seek to innovate and improve their services to offer lower prices, or to provide the customers with more efficient services. In his research, Wallenburg finds that customers prefer that the quality of services increases rather than seeing the service prices decrease. This report also takes a brief look into the survey results of Wallenburg’s findings, as well as the implications managers should consider when deciding how to improve their logistics service systems. Author’s Purpose The single most important issue in the journal article, Innovation in Logistics Outsourcing Relationships:...
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...The main alternative energy sources to fossil fuel are biofuels which have received much attention worldwide and they have already generated 45% of all energy from natural fuels in Brazil.(Sims & Taylor, 2008) The most widely used biofuel is the first generation biofuel which is make from plants like sugarcane, oilseed. By using these kinds plants, ethanol and oil can be produced.(Ahmad, Mat Yasin, Derek, & Lim, 2011) In this essay, innovations in biofuels will be divided into 3 sectors with examples illustrated. 2. The Innovation Dimension 3.1 Innovation Type Innovation can be divided into four types: production innovation, process innovation, position innovation and paradigm innovation. (Tidd, Bessant, & Pavitt, 2005)In the biofuel sector, product innovation and process innovation are widely used. Product innovations are changes in the products which an organization offers. Process innovations are changes in the ways in which they are created and delivered. 3.2.1 Product Innovation Product innovations take place when the market requires new features of the established product. (Tidd, Bessant, & Pavitt, 2005)For example, first generation biofuel has been used as vehicle energy source for decades and become mature. However, it was not able to apply in the aircraft engine. New regulations were made...
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... Unit 2 Assignment 1 Erica Burnette December 1, 2012 MBA 6006 Dr. Douglas Buck The process of changing organizational culture is a long-term and difficult process. There is an undeniable resistance to change the former way to the new and evolving way of doing business. As businesses continue to expand in the global markets, it will require a strong leadership commitment to change the vision of what the goal of change will be in order to sustain continuous innovation. In the excerpt of Vineet Nayar’s, “Recasting the Role of CEO: Transferring the Responsibility for Change. How Leaders Tap the Creative Energy of Employees”, it demonstrates the concept that if management can remove itself and allow employees to lead that the collaboration process will lead to continuous and sustaining innovation. This assessment will explore the transformation that Nayar implemented within HCLT to change the organizational structure, culture, and processes to support and sustain innovation in the changing global markets. Recasting the Role of CEO is as it states is the role reversal change that Nayar implemented to change the organizational structure of thinking within his organization. From that trend he developed and equally important initiative call Employee First Councils which evolve from EPIC. As Nayar points out he saw that his organization would need to rethink the role of CEO and to transfer much more responsibility for change to the employee (Nayar...
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...International Journal of Innovation Management Vol. 5, No. 3 (September 2001) pp. 377–400 © Imperial College Press DEVELOPING INNOVATION CAPABILITY IN ORGANISATIONS: A DYNAMIC CAPABILITIES APPROACH BENN LAWSON Department of Accounting, The University of Melbourne Victoria, 3010, Australia e-mail: blawson@unimelb.edu.au DANNY SAMSON Department of Management, The University of Melbourne Victoria, 3010, Australia e-mail: d.samson@unimelb.edu.au Received 1 February 2001 Revised 18 August 2001 Accepted 21 August 2001 This paper draws together knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an “innovation capability” construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational structures...
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...Customer Clusters as Sources of Innovation-Based Competitive Advantage Vishal Bindroo, Babu John Mariadoss, and Rajani Ganesh Pillai ABSTRACT The authors examine the effect of customer clusters on a firm’s innovation. They argue that knowledge leveraged from customer clusters can help the firm develop innovations. The authors specifically concentrate on the effect of a firm’s geographical proximity and diversity of customer clusters on innovation outcomes. In addition to showing the importance of customer cluster proximity on firm innovation, they explore the effect of customer cluster heterogeneity on innovation in an international marketing environment. They test the theoretical model using multicountry data (N = 288) drawn from the U.K. innovation survey implemented by the Economic and Social Research Council, which collected the data across five European countries. Theoretical constructs operate largely as hypothesized and explain a substantial proportion of the variation in the different innovation outcomes tested. Keywords: radical innovation, customer cluster, cluster heterogeneity, proximity, innovation speed I nnovation is frequently acknowledged as the source of organizational renewal and growth, the primary source of competitive advantage (Porter 1990), and central to marketing strategy (Varadarajan and Jayachandran 1999). Because innovation is linked to superior financial performance and survival ability of firms (Agarwal, Cockburn, and McHale 2006), creating...
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...DARE TO DISRUPT!! DARE TO DISRUPT!! Theme: Means to tackle disruptive innovation Name: Prasun Kumar Das PGPM Participant, Batch 1114 Information Management S. P. Jain Institute of Management & Research Mobile - +91 7506793925 DISRUPTION – The New Age Competitive Strategy Everything is fair in love and war; and competition in a business environment is like a cold war. Innovation has always been the major strategy used by businesses around the world to stay competitive. The traditional paradigm of innovation was to improve the performance of the existing technology, thereby steeping up the performance trajectory. However, value creation for customers may be much simpler than high performing technology. There is always a threshold level till which customers can absorb and appreciate which the traditional paradigm fails to address. This has lead to a gradual shift in paradigm, over the last five decades, from a continuous performance improvement to that of something called ‘Disruption’. Clayton Christensen coined this term and today it has become a big buzzword. He identified ‘Disruptive Innovation’ as a product or service, so compelling in nature that everyone rapidly abandons their current way of doing things to this new approach. IT has been the big enabler of this disruption. The fundamental aspect of disruption is to use the right benchmark, which becomes additive with time. When that happens, we find entire product lines – even the whole market...
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...compatibility between adopted innovations and the selection of a business action by a small –medium enterprise? In other words innovations implemented in company, a) make the desired grade of change at company level and/or b) produce the value desired in the environment? The actions that a business selects are always dependable on the potential of the company. Before a business plans how to proceed with a new action, it has to research its potential and the already adopted innovations so as to find a way to break new ground. In doing that, it makes the desired grade of change at a company level and produce the value desired in the environment. * P. Drucker supports: In order to be able to innovate, a company should separately organize the new from the old and existing. Do you agree or not and why? The above statement suggests that in the process of innovating, the company should act independently of what it used to do. Drucker suggests that in trying to implement a new form of things in a company, either this is a product or service, they should not take into consideration the old form and the existing one. Whether acting on a totally new platform is beneficial or not depends on several factors, the most important one being the potential of the company. Implementing an innovation needs the necessary promoting strategies which in turn depend on strong financial resources. Large enterprises can rely on it for their innovation to succeed. They do that firstly...
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...How to foster innovation in your business Presentation on the occasion of the Credit Suisse event 7th September 2013, Zurich Dr. Reto Müller Chairman of the Board of Directors Helbling Holding AG Helbling - a Leader in Technological Innovation and Business Consulting Helbling Group Key figures 2012 We are unique through our ability to integrate a spectrum of professional know-how, experience and skills. 458 employees Our ability to link technological expertise with business competence results in entrepreneurial success for our clients. Companies in Switzerland, Germany, USA and China Revenues CHF 110.9m International Network Offices (Corporate Finance International) Owned by 25 managing partners 2 Examples of innovations at Helbling Extract out of some thousand innovation projects in more than 50 countries Innovation leaders collaborating with Helbling: Nestlé, Roche, ABB, Airbus, Siemens, Medtronic, Schindler, Pfizer, Novartis, Sonova, Google, BSH, Geberit, Sika, V-Zug, Source: Helbling Qiagen, Tecan and many others 3 Strategic innovation management – selected Helbling references Companies Why Helbling? We measure ourselves - e.g. on the increase of the value of your innovation pipeline We are senior experts with over 15 years consulting experience and a focus on the topics "Increasing innovation success and increasing the power of innovation» We use self-developed tools and instruments ...
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...precise illustration, explain how BMW has planned innovation and new product development to manage its technology life cycle, i.e., product life cycle The ways in which BMW has planned innovation, and new product development, to manage their technology life cycle and product life cycle, has been accomplished through consistent innovation. In consideration of the life cycle of BMW, there are many factors taken into account when developing a marketing strategy. Life Cycle Value Assessment (LCVA), or life cycle analysis, is a tool used to determine environmental, economic, and other various determining factors which can influence the entire life cycle of a given product. It also serves to influence important business decisions. The continued growth and success of BMW can be defined by the way in which they focus on culture as a company. According to the article, Innovation: A Strategic HR Imperative, “For example, BMW’s continued success is its strategic focus on developing customer-friendly innovations, coupled with an approach to innovation management that is unique within the automotive industry” (Stanleigh, 2012). BMW sets themselves apart because they prescribe to the philosophy of a company knowing what it stands for, and capitalizing on its strengths; by doing so it can more easily develop and implement a clear strategy. While some companies put their primary focus on manufacturing, BMW also incorporates innovation throughout every department within the organization...
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