Tells about type of Innovation

1. Understand Innovation - @WisnuDewobroto
What can you learn from this?
• What innovation is
• Why it’s important
• The types of innovation
• The degrees of innovation
What is innovation?
Hundreds of similar
definitions can be
found in the literature.
Here is the one I use,
adapted from various
sources:
“Innovation is the
profitable implementation
of ideas.”
Innovation : Creator and
Sustainer of Enterprise

2. Innovation =
Opportunity :
“This material we’ve invented might be of value to customers”
“ If we could solve this problem,
we could create value for our
customer”
“This might produce a huge cost
advantage!”

3. An innovation can increase profits on
the value side (customers value an
innovation enough to pay more for
it) . . .
. . . or the cost side (the company produces a product
offering in a more efficient way).
©
Why is innovation important?
Innovation reduces waste and
environmental damage.
Innovation creates growth, increases
productivity, and economic wealth
(avoids stagnation).

4. Innovation provides better goods
and services at a cheaper price –
higher standard of living.
©
More interesting work for
employees.
©
What are the types of innovation? Numerous types . . .

5. . . . but all these labels just describe
where something new, better or
different occurs.
Product
Process
Service
Business model
Value
Market
Lets Discuss...!
. . . and many more, depending on
level of detail. Basically, innovation
can occur anywhere in the firm’s
business by anyone. We all have
great potential!
The degrees of innovation.

6. Once again, many labels . . .
©
. . . however, they all describe the
degree of change required by the
innovating firm and/or the market.
©
Incremental (sometimes called
“continuous” or “evolutionary” or
“small”)
Semi-radical

7. Radical (sometimes called
“discontinuous” or “revolutionary”
or “big”)
Incremental and radical innovations
need to be managed differently.
Incremental and Radical
innovation go hand in hand
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8. Factors that favor Incremental
Innovation
Avoid the “more bells and whistles” Syndrome
Dont put all your chips on Incremental innovation

9. "Innovation distinguishes between
a leader and a follower."