innovation bora güngören. about the futility of the subject innovation by definition is something...
TRANSCRIPT
![Page 1: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/1.jpg)
Innovation Bora Güngören
![Page 2: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/2.jpg)
About the futility of the subject
• Innovation by definition is something you cannot predict easily,• Therefore any attempt to describe or even teach innovation is
inherently futile
• But we can discuss past innovations, or how innovative processes work in general
• Special thanks to Prof. Nazlı Wasti from METU, whose slides I have used in some parts of this presentation.
![Page 3: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/3.jpg)
Invention, Commercialization, and Diffusion
Invention
Commercialization
Diffusion
• Innovation is the (sometimes systemic) process of inventions being commercialized. • The output of this process is also
called an innovation.
• So we can talk about the diffusion of innovation(s). • This is very much like chemical
substances diffusing in air or electromagnetic waves propagating in space.
![Page 4: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/4.jpg)
A Generic Model of the Innovation
Process
• This model is the basic gate-keeping model.
• We assume that success at any stage leads to the next stage.
• We also assume that the process is linear and does not involve feedback.
• It is suitable as a learning example, and also applicable to fields where the rate of change (i.e. Technological development) is slow.
Insight/Research
Development Design Production Engineering
Full Scale Manufacture
MarketLaunch
A Generic Model of the Innovation Process
Research & Development (R&D) Commercialisation
Innovation
PilotTesting
![Page 5: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/5.jpg)
Two Basic Types of Innovations
• Product innovations help firms protect profit margins by offering new, differentiated products or product features.• The first Iphone was a product
innovation.
• A hybrid version of an existing automobile usually just improves the features of the model, but it still is a product innovations.
• Process innovations help make producing (i.e. Manufacturing) more efficient.• Agile software development
is a process innovation.
• Take-out pizza is a process innovation.
![Page 6: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/6.jpg)
When Should I Innovate?
• The correct answer is «yesterday» because there is abundance of effort for innovation. And it is much easier to innovate thanks to• Computer aided design,
modelling, simulation, manufacturing, and testing.
• What does a 3D printer do?
![Page 7: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/7.jpg)
Not All Innovations Make Big Bucks
![Page 8: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/8.jpg)
Why the funnel?
• The funnel model assumes that innovations are crafted in-house without feedback from the market. This assumption is often valid because of fear from • Copycats
• Facing the ugly truth about one’s idea (some kind of biased view of your own)
• Having to do it from scratch
![Page 9: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/9.jpg)
Why the funnel?
• The funnel model also assumes that it takes alot of time and effort from the initial idea to the final product. • This assumption is particularly valid if market entry is heavily regulated,
such as in drugs.
• It is also valid if market entry is dependent on checking patents which is a type of self-regulation. This has been the case (until recently) for electric vehicles.
• It is not necessarily valid for the software industry, but not all software can be built within a weekend. Actually if it takes a weekend for you, by the next week you might see several clones around.
![Page 10: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/10.jpg)
How to «bypass» the funnel?
• If possible, you should get early and precise feedback from the intended users of the innovative product or service. • Users is a generic term, it may also
mean anyone who is related to your idea.
• This includes suppliers you might need, marketing channels you will utilize, regulation authorities who might be interested, etc.
![Page 11: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/11.jpg)
How to «bypass» the funnel?
• Whenever possible, you should develop prototypes. • But prototypes do not come for free,
so you might want to have prototypes with less but essential features first.
• When the stakeholders you contact ask for more features, you should be ready to estimate the benefit/cost ratio for that feature in a short time.
• Benefit/Cost is also not a constant, but depends on the size of the market (i.e. Production capacity you aim at.)
![Page 12: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/12.jpg)
Be Ready For Reception
Many innovations are initiated by external factors.
So you should be watching out.
• Daily newspapers.
• Economics magazines.
• Scientific magazines and journals.
• PhD theses.
• Conferences, trade shows.
• Rival companies.
• Users.
![Page 13: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/13.jpg)
Tangibility of Innovations Matter
![Page 14: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/14.jpg)
Creativity and Innovations
• Creativity is the ability to produce something useful. It is an individual ability.
• Organizational creativity is an organization’s capacity to produce something useful. It is not simply the sum of all creativities in the individuals making up the organization. • Systems to collect creative ideas or test them (HP, Google,
Siemens, etc)
• An organizational culture that is positive towards trials (Apple, HP, Google)
![Page 15: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/15.jpg)
Creativity and Innovations
• Innovation is the process of translating creative ideas into products and services that have a societal impact and most often monetary gain.
• Innovation requires resources and expertise, as well as some luck.
• Apple’s iPod • It was the company’s third trial and this time they used an external team.
• The external team had tried it twice, first at Philips and had failed technically.
• They found several high quality suppliers through Appke to commision parts.
• The actual lead engineer got retired shortly after.
![Page 16: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/16.jpg)
Innovation is Strategic
![Page 17: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/17.jpg)
A Better, Strategic Model of Innovation
![Page 18: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/18.jpg)
Universities as Innovators?
![Page 19: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/19.jpg)
Universities as Innovators?
![Page 20: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/20.jpg)
A Third and Even Better Model of Innovation
• Innovations are developed collaboratively in a social network of actors.
• Modes of collaborations exist, and include• Joint ventures
• Licensing and second-sourcing agreements
• Research associations
• Government-sponsored joint research programs
• Informal networks
![Page 21: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/21.jpg)
A Third and Even Better Model of Innovation
• Strong ties between actors provide• Accurate and reliable information
• Aligned strategies
• Weak ties between actors provide• Fast diffusion of new ideas
• Conflicting strategies
• IP spillovers
![Page 22: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/22.jpg)
A Third and Even Better Model of Innovation
• Technology Clusters are regional clusters of firms that have a connection to a common technology
• Technoparks such as Cyberpark form such clusters.
![Page 23: Innovation Bora Güngören. About the futility of the subject Innovation by definition is something you cannot predict easily, Therefore any attempt to](https://reader035.vdocument.in/reader035/viewer/2022062322/56649e905503460f94b9593d/html5/thumbnails/23.jpg)
Thanks for the Opportunity