What is innovation?
Innovation: ( noun ) a new idea, device, or method;
the act or process of introducing new ideas, devices
or methods. Source: Merriam Webster Dictionary
The word “innovation” itself descends from the Latin
words in and novare, meaning ‘to make new.’
What is innovation?
Innovation is a new idea, more effective device or
process.
Innovation can be viewed as the application of better
solutions that meet new requirements, inarticulated
needs, or existing market needs.
This is accomplished through more effective products,
processes, services, technologies, or ideas that are
readily available to markets, governments and society.
The term innovation can be defined as something
original and more effective and, as a consequence, new,
that "breaks into" the market or society.
Innovation
=
Creativity + Delivery
In what department in your company
does innovation take place?
What is strategic innovation
Innovation Operational Tactical Strategic
Type (Process) (Product) (Business
Models)
Focus Improving processes Improving a market The disruption and
to optimise delivery of position by introducing destruction of existing
an existing new products/services markets to create fertile
product/service to a or business model soil for new markets
defined market
Measurement Throughput, defects, Market share, Share price, Funding,
quality, waste, line Customer satisfaction, Capital, Alliances,
s downs, yields, ROI Customer delight, ROI bankruptcies, takeovers
Department Finance, Quality, Marketing, Sales
Manufacturing Product Development,
HR, Training Technology
development ?
Aim Fulfill existing customer Understand emerging Create a need for
need cheaper needs of customers users they did not even
and fulfill know they had
Boundary The company/group The Market(s)
?
Strategic innovation disrupts and destroys
The Starfish Business Model
OTHER
STARFISH
SUPPLIERS USERS
ADVERTISERS CUSTOMERS
Impact: 10x every 5 years
Who are using strategic
innovation
If you don’t explore new business models – you will go extinct
McKinsey & Co
The large players according MIT
The battle for world domination
Cannibalization
Assassination Competition
Creation Collaboration
Find one error in this picture
Death of the Funnel
Google owns search (Dying)
Apple now support add blockers
Amazon Prime Exploding
Facebook Search used by 1B every day
LinkedIn dominates B2B
Move from desk to mobile
Move from homepage to Apps
Nobody is going to find your products
or homepage anymore.
Unicorns are predominantly
from Silicon Valley
Unicorns
1B$ Cap
147 total
53 in US
13 in EU
505B$ Cap
More Starfish Models
Why is it important
No Industry is safe
The operating logic of most companies is
to compete in a well defined market
Economics is the science of choice in scarcity
What is needed?
Innovation is difficult for well-established companies. By and large, they
are better executors than innovators, and most succeed less through
game-changing creativity than by optimizing their existing businesses.
McKinsey
Strategic Innovation - disruption
Does not accept market rules
Takes advantage of asymmetric faults in market
Collaborate rather than compete
Starfish model: Connects rather than owns
Get users to generate value
Creates new markets
Create new users
Differentiate between customers and users
Experimental rather than professional
If you can be disrupted,
you will be disrupted
unless
you disrupt yourself
Can you cannibalize your own
revenue stream?
The Hedgehog principle
Most companies are build around doing one thing
really well and effective
WE ARE A SUCCESSFUL
COMPANY
You will not change
what you believe is perfect
Rethink your market
• From loyalty to empowerment
• From efficient to intelligent
• From low cost to no cost
• From ownership to access
Time for a reflection
How could you disrupt your own market and company?
Innovate like Google
Google Innovation
• Differentiate between customers and users
• Forget ROI – focus on providing max value for user
• 20% of time allocated to passion projects
• Organisation level does not dictated pay
• Minimum 7 direct employees
• Focus on user, learn from user, learn about user
• Have user generate data, knowledge & Insights
• Experimentation over perfection
Organisations don’t innovate
Engaged employees innovate
Thank You
