Welcome to MDP Module - 5 Introduction to new product mind set - PDF document

19-Jun-19 Wednesday 19 th June 2019   12:30 – 13:30 Lunch  08:00 - 08:30am Arrival of Delegates  Theme :  Theme :  Entrepreneurship Strategic Innovation in  Organisations Entrepreneurial organisation Welcome to MDP Module - 5  Introduction to new product mind set Innovation,  and service development technology and Learning organisation Entrepreneurship   10:00am – 10:30am  15:00-15:15 Tea/Coffee Atul Padalkar Tea/Coffee break Break  Theme :  Theme : Innovation Performance and   Linkages between innovation productivity & entrepreneurship .  Product, service and life cycle Case Study:  Challenges and Risks for the  organisation 1 2 Key Questions….  1. What are the major issues faced by your organisation/s?  2. How will you apply principles of Why are you here? innovation and do things differently?  3. How can this be implemented as a venture WITHIN the organisation?  4. How will you pitch it to the Board? 3 4 American Bald Eagle Our Agreement 5 6 1

19-Jun-19 VUCA Why Innovate? 7 8 9 10 11 12 2

19-Jun-19 What is happening in the Inside World? What is happening in the Outside World? Political Economic Strength Weakness 1 2 Social Techno Opportunity Threat 3 4 13 14 DID YOU KNOW? 6 Worst Company Disasters https://www.youtube.com/watch?v=u06BXgWbGvA&list=WL&index=41&t=0s https://www.youtube.com/watch?v=T0Z73Zbtlyg&list=WL&index=36   15 16 How innovative is your organisation? 17 18 3

19-Jun-19 What is innovation? Introduction to innovation  Innovation is the process and outcome of creating something new, which is also of value. Definitions  Innovation involves the whole process from Dimensions opportunity identification, ideation or invention to development, prototyping, production Drivers marketing and sales, while entrepreneurship only Developments needs to involve commercialization (Schumpeter). 19 20 Definitions What is innovation?  Today it is also said to involve the capacity to  Innovation = Invention + exploitation (Ettlie) adapt quickly by adopting new innovations  A new way of doing things, which is (products, processes, strategies, organization, commercialized. The process of innovation cannot etc) be separated from a firm’s strategic and competetive context (Porter)  Traditionally the focus has been on new products  Adoption of ideas that are new to the adopting or processes, but recently new business models organization have come into focus, i.e. the way a firm delivers value and secures profits. 21 22 What is innovation? Mechanisms of innovation  Novelty in product or service (offering something no one else does)  Schumpeter argued that innovation comes about through new combinations made by an  Novelty in process (offering it in a new way) entrepreneur, resulting in  Complexity (offer something which others find difficult to master)  Timing (first mover advantage, fast follower)  a new product,  Add/extend competetive factors (e.g. From price to quality or  a new process, choice)  opening of new market,  Robust design (contribute a platform on which other variations can build)  new way of organizing the business  Reconfiguring the parts (building more effective business  new sources of supply networks)  ... 23 24 4

19-Jun-19 Dimensions of innovation Drivers for innovation  Extent of change (radical—incremental)  Financial pressures to reduce costs, increase efficiency, do more with less, etc  Increased competition  Modality of change (product—process)  Shorter product life cycles  Complexity of change (component—architecture)  Value migration  Materiality of change (physical—intangible)  Stricter regulation  Capabilities and change (enhances or destroys  Industry and community needs for sustainable development market/technological capabilties)  Increased demend for accountability  Relatedness of change (replaces a firm’s existing product or  Demographic, social and maket changes extends it)  Rising customer expectations regarding service and quality  Appropriability/Imitability (difficult or hard to hang on to)  Changing economy  Cycle of innovation (time between discontinuities)  Greater availability of potentially useful technologies coupled with a need to exceed the competition in these technologies 25 26 Exercise I : Problems and Opportunities Today’s basic model for innovation in Organisations management is interactive  What are the top 3 challenges faced by your Organisations ? Tech-entrepreneurship Commercial world Technological world  Why are these problems? + Administrative capabilities  How did they arise? =  How are they being addressed? Product/process Market Research Development development development  Do you see an opportunity in solving these problems? 27 28 Exercise I : Problems and Opportunities in Organisations  What are the top 3 challenges faced THE WORLD by your Organisations ?  Why are these problems? OF CHANGE  How did they arise?  How are they being addressed?  Do you see an opportunity in solving these problems? Refine the problem to one ‘fixable’ problem to address in the next 30 days 29 30 5

19-Jun-19 The Innovation Process 1. Idea Generation and Mobilization 2. Advocacy and Screening 3. Experimentation 4. Commercialization 5. Diffusion and Implementation 31 32 33 34 How is the Organisation you work for, required to change? 35 36 6

19-Jun-19 Learning Organisation The Fifth Discipline Peter Senge The idea of learning organizations was popularized by Peter Senge’s book The Fifth Discipline (1990) Senge identified five learning disciplines: https://www.youtube.com/watch?v=MQMRMAmT2gg   1. Personal mastery  2. Mental models  3. Shared vision  4. Team learning  5. Systems thinking … what do they mean for you and for your organization?? 37 38 EXERCISE 2  Brainstorm 3 rounds in your group of WHAT IF’s around your problem.  Present the Shortlist of What CAN 39 40 Sales Process – Current Clients Sales Process – New Clients 41 42 7

19-Jun-19 Introduction to Corporate Venturing 43 44 Can we innovate in large companies? Exercise 2: Intrapreneurial Pitch Make a 10 minute pitch to your company about addressing the problem.  https://www.youtube.com/watch?v=6pm1bbLMqZE  Highlight the pain and its impact on the organisation  Its costs and other downside implications  How you propose to solve it innovatively  What resources / permissions you may need  What you will deliver and by when  How it will benefit the organisation 45 46 47 48 8

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19-Jun-19 55 56 57 58 An introduction to the Business Model Canvas Atul Padalkar 59 60 10

19-Jun-19 Is your Business in a ‘Sweet Spot’? How will you create value? 61 62 Business Plan : A document investors make you write that they don’t Developing the Business read. Model Business Model : A single diagram How a company creates value for itself while delivering products and services to customers that describes your business. - Steve Blank 63 64 65 66 11

19-Jun-19 67 68 69 70 Describing a company’s offer Describing who a company offers value to OFFER OFFER CUSTOMER VALUE PROPOSITION VALUE TARGET PROPOSITION CUSTOMER value proposition 1 target customer 1 value proposition 2 target customer 2 … … value proposition 1 value proposition 2 … 71 72 12

19-Jun-19 Describing the relationships a company builds Describing how a company reaches its customers OFFER CUSTOMER OFFER CUSTOMER VALUE DISTRIBUTION TARGET VALUE CUSTOMER TARGET PROPOSITION CHANNEL CUSTOMER PROPOSITION RELATIONSHIP CUSTOMER value proposition 1 distribution channel 1 target customer 1 value proposition 1 relationship type 1 target customer 1 value proposition 2 distribution channel 2 target customer 2 value proposition 2 relationship type 2 target customer 2 … … … … … … 73 74 Describing what capabilities are required Describing how a company makes money OFFER FINANCE CUSTOMER INFRASTRUCTURE OFFER VALUE REVENUE TARGET CORE VALUE PROPOSITION STREAM CUSTOMER CAPABILITIES PROPOSITION value proposition 1 revenue stream 1 target customer 1 core capability 1 value proposition 1 value proposition 2 revenue stream 2 target customer 2 core capability 2 value proposition 2 … … … … … 75 76 Describing what activities are required Describing the partners that leverage the business model INFRASTRUCTURE OFFER INFRASTRUCTURE OFFER CORE VALUE VALUE CORE PARTNER VALUE CAPABILITIES CONFIGURATION PROPOSITION CAPABILITIES NETWORK PROPOSITION core capability 1 activity 1 value proposition 1 core capability 1 partner 1 value proposition 1 core capability 2 activity 2 value proposition 2 core capability 2 partner 2 value proposition 2 … … … … … … 77 78 13