What is called innovation Generations of innovation models The megatrends Innovation types Innovation (new product) development process and tools Business models: NABC and business model canvas Iterative and incremental development Lean startup Freedom to operate: patent search Exercises: executing an innovation

1. EXECUTING AN INNOVATION
T. Thiramonth
National Innovation Agency

2. Agenda
2
• What is called innovation
• Generations of innovation models
• The megatrends
• Innovation types
• Innovation development process and tools
• Business models
• Executing an innovation part I
• Iterative and incremental development
• Lean Startup
• Freedom to operate
• Executing an innovation part II

3. What is called innovation
3
Product ● Service ● Technology ● Design ● Business model

4. What is called innovation
4
“The process of translating an idea or invention into
a good or service that creates values.”

5. Generations of innovation models
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1. Technology push
• 1950/1960s
• High degree of technological novelties
Basic science
Design and
engineering
Manufacturing Marketing Sales

6. Generations of innovation models
6
2. Market pull
• 1970s
• Reverse linear model
Market needs Development Manufacturing Sales

7. Generations of innovation models
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3. Interactive model
• 1990s
Technology push
Idea R&D Manufacturing Marketing Sales
Latest in science &
technology
Advances in society
Needs in society
and the
marketplaceMarket pull

8. Generations of innovation models
8
4. Open innovation
• 2000s

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11. Innovation types
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• Radical innovation
• Major technology novelty
• Demand specialized resources
• Require greater care of management
• Uncertain outcomes
• Incremental innovation
• Business model innovation
• Require few resources
• Easier to predict outcomes

12. Innovation types
12
RADICAL or INCREMENTAL?

13. Innovation types
13
RADICAL or INCREMENTAL?

14. Innovation types
14
RADICAL or INCREMENTAL?

15. Innovation adoption model
15
Roger’s innovation adoption model

16. Innovation adoption model
16

17. Innovation development process
17
Idea generation
Idea screening
Business analysis
Product
development
Test market
Commercialization

18. Innovation development tools
Business Model Canvas
SWOT
Porter’s Five Forces
Lean Startup
Value Chain
Customer Development
Strategy Maps
18

19. Business Models
“A business model describes
the rationale of how an
organization creates, delivers,
and captures value”
- A. Osterwalder and Y. Pigneur, 2010
19

20. NABC
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• Developed by the Stanford Research
Institute (www.sri.com)
• Curtis Carlson & William Wilmot
(Stanford Research Institute, US):
Innovation – The Five Disciplines for
Creating What Customers Want,
2006
• https://www.youtube.com/watch?v=
iHiLAJGDGt4
Need ● Approach ● Benefit ● Competition

21. NABC
21
• NABC in 4 questions
• What is the important customer and market NEED?
• What is the unique APPROACH for addressing the need?
• What are the specific BENEFITS per costs that result
from this approach?
• How are the benefits per costs superior the
COMPETITION’s and the alternatives?

22. NABC
22

23. Business Model Canvas
23

24. 24

25. 25

26. 26

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28. Customer Segments
• To be reached and served
• Different types:
• Mass market
• Niche market
• Segmented
28

29. Value Propositions
• Solves customer problem, or
• Satisfies a customer need
• Quantitative
• Price
• Speed of service
• Qualitative
• Design
• Customer experience
29

30. Channels
• Communicates with and reaches
the customer segments
• 5 distinct phases
• Awareness e.g. advertisement
• Evaluation e.g. survey, interactive activity
• Purchase
• Delivery
• After sales
30

31. Customer Relationships
• Relationships between
a company and its customers
• Different categories:
• Personal assistance
• Self-service
• Automated services
• Co-creation
31

32. Revenue Streams
• The cash a company generates
• Transactions from one-time
customer payments
• Recurring from ongoing payments
• Examples: usage fee, subscription fee,
lending/renting/leasing, licensing
32

33. Key Resources
• Required assets
• Types:
• Physical
• Financial
• Intellectual
• Human
33

34. Key Activities
• Must do to make the business model work
• Different categories:
• Production
• Problem solving
• Platform/network
34

35. Key Partnerships
• Suppliers and partners
• 4 types:
• Strategic alliances between non-
competitors
• Cooperation, strategic partnership
between competitors
• Joint ventures to develop new
business
• Buyer-supplier relationships to assure
reliable supplies
35

36. Cost Structure
• All costs incurred to operate a business
• 2 broad classes
• Cost-driven
• Value-driven
36

37. suppliers
facilities & supply
personnel
hospitals
reduce
cost
purchase
personnel
developers
manufacturing
sales & marketing
37

38. Executing an innovation part I
38
• Fields:
• Retail
• Education
• Career
• Food/ canteen
• Travel
• Service for int’l students
• Tasks:
• Needs - identify unmet needs
• Approach - create solution and the approach
• Benefit - define values
• Fill in business model canvas (BMC)
• https://goo.gl/IoTvN7 ‘use template’
• Deliverable: 5-min presentation

39. Innovation development process
39

40. Iterative development
40
Agile ● Human-centered ● Lean Startup ● Customer development

41. Lean Startup
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• A iterative and incremental methodology for
developing businesses and products
• Aims to shorten product development cycles
• 5 key principles
• Entrepreneurs are everywhere
• Entrepreneurship is management
• Validated learning
• Innovation accounting
• Build-Measure-Learn
• Minimum viable product (MVP)

42. Build-Measure-Learn
42
Build
MeasureLearn
Idea
Pivot, or
Persevere
data
Minimum Viable
Product (MVP)

43. Minimum Viable Product (MVP)
43
“The version of a new product which allows a team
to collect the maximum amount of validated learning
about customers with the least effort"

44. Freedom to operate
44
Intellectual property rights
• Patent
useful ● novel ● non-obvious

45. Freedom to operate
45
Intellectual property rights
• Patent types
utility ● design ● plant

46. Freedom to operate
46
Intellectual property rights
• Patent types
utility ● design ● plant

47. Freedom to operate
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Patent search
• Google Scholar: http://scholar.google.com
• Google Patent: http://patents.google.com
• WIPO (PCT): http://www.wipo.int/pct/en/
• USPTO: https://www.uspto.gov/
• Espacenet (EPO): https://worldwide.espacenet.com
• Department of intellectual property (Thailand):
http://patentsearch.ipthailand.go.th/DIP2013/
simplesearch.php

48. Freedom to operate
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Google patent – “stylus device”

49. Freedom to operate
49

50. Freedom to operate
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51. Freedom to operate
51

52. Executing an innovation part II
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Tasks:
1. Freedom-to-operate analysis
• Patent search
2. Competition
• Identify at least 3 competitors
3. Interview at least 3 potential
customers
• What do they think about your
product/ service?
Deliverable: 5-min presentation

53. https://www.slideshare.net/TheerapornThiramonth
theeraporn@nia.or.th
02 017-5555 ext. 565
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