Ro l e o f I n n ov at i o n i n S e c u r i n g S t r at e g i c A d v a n t a g e
Innovation as
Fountain Head of
Strategy
1
AGENDA SLIDE
1
2
3
4
5
AGENDA ITEM 01
What is Innovation?
AGENDA ITEM 02
Why Innovation is Important in Strategy?
AGENDA ITEM 03
Innovation Matrix based on Technology and Market
Dimension and Typologies of Innovation
AGENDA ITEM 04
Benefits of Innovation
AGENDA ITEM 04
Risk of not Innovating
What is Innovation?
The word “innovation”
is derived from the Latin
verb “Innovare” , which
means to renew.
Innovation is the engine
of Organization and
Economic Growth.
Innovation
Innovation can be a new
idea, product or method
that is translated into a
good or service that
creates value or for
which customers are
willing to pay.
Ro l e o f I n n o va t i o n i n S e c u r i n g S t r a t e g i c
A d va n t a g e
Innovation is turning
new concept into
commercial success
and widespread use.
It Allows Adaptability
Innovation is often necessary for companies
to adapt and overcome the challenges of
change.
Why Innovation
Important in Strategy?
It Fosters Growth
Achieving organizational and economic
growth through innovation is key to staying
afloat in today’s highly competitive world.
It Separates Business from Competition
Most industries are populated with multiple
competitors offering similar products or
services. Innovation can distinguish your
business from rivals.
Role of Innovation in Securing Strategic Advantage
4
Innovation Matrix based on two Dimensions : Technology and Market
Sustaining Innovation
Disruptive Innovation
✓ Focuses on large changes to gain or maintain a market
leader position.
Impact on the Market
✓ Focus on creating new features on products/services that
differentiate from all its competitors.
✓ Most Well Known among the Innovation Type
✓ It comes with effective use of new technology and high
impact results
✓ The best way to protect organizations position in the
market.
✓ Most common organization is start up organizations
targeting overlooked market segment to deliver more
affordable, convenient and simpler product/service than
the established players can.
Incremental Innovation
Radical Innovation
on
✓
Typically uses breakthrough or new technology , transforms
industries and creates new market
✓ Focuses
on
small
improvements
to
existing
products/service in the aim of increasing customer value
and customer satisfaction.
✓
Completely changes how an organization interacts with the
marketplace.
✓
Underlying technological shift to drive this innovation type is
through organization’s behavior and capabilities that create the
right condition of new ideas to be successfully commercialized.
✓ Constitutes a gradual, continues improvement
products, service or its business operations.
✓ Often easy to sell because companies don’t need to
explain the key principles of the products/services.
People are already familiar with the way it works.
Technology Newness
Typologies of Innovation
Ro l e o f I n n o va t i o n i n S e c u r i n g S t r a t e g i c A d va n t a g e
6
7
BENEFITS OF INNOVATION
Improve
Productivity
Reduce Costs
Increase
Competitiveness
The more innovative a
company is, the more it
can drive productivity.
Forming
products/service
together, eliminating
Innovation provides
differentiated
competitiveness in terms of
In turn, this increased
productivity allows the
workforce to be more
unnecessary parts, and
improving processes ,
all goes a long way in
quality and function, which
offers incentives for
customers to choose. This
creative and innovative.
reducing costs
allows companies to win
competition, secure a
market-leading position, and
create market performance
by attracting new customers
Increase
Brand
Recognition
and Value
The future of brands is
defined through new
products and services,
helping to bring
a brand strategy
brand to life through
memorable experiences
and tangible items for
customers to bring
the experience home
with them.
Increase
Profitability
Innovation can increase a
company's revenues in
numerous ways:
From reducing employee
turnover and cutting costs to
differentiating the product
and keeping the company
alive, innovation is a
cornerstone of any company
that wants to be great.
Innovation can deliver significant benefits. It is one of the
critical skills for achieving success in any business. It can help
solve problems, generate profit, increase market share and
edge out competitors.
Benefits of Innovation
Role of Innovation in Securing Strategic Advantage
8
9
OF NOT
INNOVATING
LOSING
MARKET SHARE
TO COMPETITOR
FALLING
PRODUCTIVITY
AND EFFICIENCY
Role of Innovation in Securing Strategic Advantage
LOSING
KEY STAFF
REDUCE
MARGIN AND
KEY STAFF
GOING OUT
OF BUSINESS
THANK YOU
Presenter Name
Marian Nita P. Morillo
1 1 / 1 7/ 2 0 2 2
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Topic 6: ROLE OF INNOVATION IN SECURING STRATEGIC
ADVANTAGE
UNIT V PRESENTATION
INNOVATION
CONTENT & PROCESS
ROLE OF INNOVATION IN SECURING STRATEGIC ADVANTAGE
KEY ELEMENTS OF
INNOVATION
Collaboration
Ideation
Implementation
Value Creation
KEY ELEMENT OF
INNOVATION
COLLABORATION
IDEATION
Teamwork
Relationship
Process
Outcome
New/Fresh idea
Learnings
Experience
Competition
IMPLEMENTATION
Execution
Business Goals
VALUE CREATION
Measure
Improvement
Feedback
Innovation Management
Process
Example
T E S L A
The first high technological car
References
Cowan, K. M., Haralson, L. E., & Weekly, F. (2021, December 9). The four key elements of
Innovation: Collaboration, ideation, implementation and value creation. Saint Louis Fed Eagle.
Retrieved November 16, 2022, from https://www.stlouisfed.org/publications/bridges/summer2009/the-four-key-elements-of-innovation-collaboration-ideation-implementation-and-valuecreation#:~:text=%3E-,The%20Four%20Key%20Elements%20of%20Innovation%3A%20Collabo
ration,Ideation%2C%20Implementation%20and%20Value%20Creation&text=Innovation%20requi
res%20collaboration%2C%20ideation%2C%20implementation,these%20elements%20during%2
0breakout%20sessions.
Innovations and concepts • BT standard. BT Standard. (2021, February 23). Retrieved November
16, 2022, from https://www.managebt.org/book/demand/innovations-and-concepts/
Innovation & Creativity at tesla. (n.d.). Retrieved November
https://jeremybonioni.mystrikingly.com/blog/innovation-creativity-at-tesla
16,
2022,
from
INTRODUCTION
DESIGN THINKING IS PROMOTED AS A USER-CENTERED
APPROACH TO INNOVATION, IT HAS BEEN INTRODUCED AS A
MANAGEMENT APPROACH THAT BRINGS CREATIVITY AND
USER-CENTEREDNESS TO ORGANIZATIONS AS A NEW WAY
OF WORKING (BROWN, 2008).
IT HAS ALSO STARTED TO RECEIVE INCREASED ATTENTION IN
BUSINESS SETTINGS. THIS IS BECAUSE THE DESIGN OF PRODUCTS
AND SERVICES IS A MAJOR COMPONENT OF BUSINESS
COMPETITIVENESS, TO THE EXTENT THAT MANY KNOWN
COMPANIES HAVE COMMITTED THEMSELVES TO BECOME
DESIGN LEADERS (RAZZOUK & SHUTE, 2012)
WHAT IS DESIGN THINKING?
* DESIGN THINKING IS A HUMAN-CENTERED APPROACH TO
INNOVATION ANCHORED IN UNDERSTANDING CUSTOMER’S
NEEDS, RAPID PROTOTYPING, AND GENERATING CREATIVE
IDEAS THAT WILL TRANSFORM THE WAY YOU DEVELOP
PRODUCTS, SERVICES, PROCESSES, AND ORGANIZATIONS.
* BY USING DESIGN THINKING, YOU MAKE DECISIONS BASED
ON WHAT CUSTOMERS REALLY WANT INSTEAD OF RELYING
ONLY ON HISTORICAL DATA OR MAKING RISKY BETS BASED
ON INSTINCT INSTEAD OF EVIDENCE.
* DESIGN THINKING BRINGS TOGETHER WHAT IS DESIRABLE
FROM A HUMAN POINT OF VIEW WITH WHAT IS
TECHNOLOGICALLY FEASIBLE AND ECONOMICALLY VIABLE.
3 FOCUS LENSES OF DESIGN THINKING
DESIRABILITY:
WHAT MAKES SENSE TO PEOPLE
AND FOR PEOPLE?
FEASIBILITY:
WHAT IS TECHNICALLY POSSIBLE
WITHIN THE FORESEEABLE FUTURE?
VIABILITY:
WHAT IS LIKELY TO BECOME PART OF
A SUSTAINABLE BUSINESS MODEL?
DESIGN THINKING PROCESS
- "DESIGN THINKING IS NOT LIMITED TO A PROCESS. IT’S AN ENDLESSLY
EXPANDING INVESTIGATION." —SANDY SPEICHER, IDEO CEO
FRAME A QUESTION:
MAKE IDEAS TANGIBLE:
*INSPIRE YOUR TEAM TO THINK ABOUT YOUR
CUSTOMERS (WHO YOU’RE DESIGNING A
SOLUTION FOR) AND WHAT THEY ACTUALLY
NEED.
*BUILD ROUGH PROTOTYPES AND
WHAT’S WORKING AND WHAT’S NOT.
GATHER INSPIRATION:
TEST TO LEARN:
*GO OUT INTO THE WORLD AND SEEK
INSPIRATION BY OBSERVING AND DISCOVERING
WHAT PEOPLE REALLY NEED.
*TEST
YOUR
PROTOTYPES,
FEEDBACK, AND ITERATE.
GENERATE IDEAS:
*USE THE INSPIRATION YOU GATHER TO HELP
PUSH PAST THE OBVIOUS TO COME UP WITH
FRESH SOLUTIONS TO YOUR PROBLEM.
FIND
GATHER
SHARE THE STORY:
*ONCE YOU’VE ARRIVED AT THE RIGHT
SOLUTION, CRAFT AND SHARE THE STORY
TO INTRODUCE IT TO YOUR COLLEAGUES,
CLIENTS, AND CUSTOMERS.
WHY DESIGN THINKING IS VALUABLE?
WE LIVE AND WORK IN A WORLD OF INTERLOCKING SYSTEMS,
WHERE MANY OF THE PROBLEMS WE FACE ARE DYNAMIC,
MULTIFACETED, AND INHERENTLY HUMAN.
IDEO | GLOBAL DESIGN & INNOVATION COMPANY
LEADING GLOBAL DESIGN & INNOVATION FIRM
TRANSFORMING BUSINESSES
INNOVA SCHOOLS IS A PART OF INTERCORP, A FAMILY OF 35 BUSINESSES THAT SPAN
EVERYTHING FROM BANKS TO RETAIL STORES AND ADDED SCHOOLS TO ITS PORTFOLIO. IN
2010, THE COMPANY HAD FIVE EXISTING SCHOOLS BUT REALIZED THAT ITS EXISTING MODEL
COULD NOT GROW. THE SHORTAGE OF WELL-TRAINED, HIGH-QUALITY TEACHERS IN PERU,
COMBINED WITH RISING LAND COSTS, MEANT THE SCHOOLS WOULD NEED TO RADICALLY
CHANGE COURSE TO SUCCEED. TOGETHER, INNOVA SCHOOLS AND IDEO DEVELOPED THE
CURRICULUM, TEACHING STRATEGIES, BUILDINGS, OPERATIONAL PLANS, AND UNDERLYING
FINANCIAL MODEL TO RUN THE NETWORK OF SCHOOLS.
THE CHALLENGE:
IMPACT:
REDESIGN THE K–12 LEARNING EXPERIENCE
FOR A GROWING NETWORK OF SCHOOLS
FROM THE CURRICULUM TO THE TEACHER
TRAINING TO THE SCHOOL BUILDINGS WITH
AN EYE TOWARD EXPANSION AND A GOAL
TO
PROVIDE
INTERNATIONAL-QUALITY
EDUCATION AT AN AFFORDABLE PRICE.
INNOVA HAS OPENED OVER 63 SCHOOLS IN
PERU THAT ARE SERVING MORE THAN 50,000
STUDENTS. IT IS NOW THE LARGEST PRIVATE
SCHOOL NETWORK IN PERU. THE SCHOOL
SYSTEM HAS ALSO EXPANDED TO MEXICO,
WHERE FOUR SCHOOLS SERVE MORE THAN 1,800
STUDENTS, AS WELL AS TO COLOMBIA, WHERE
THREE SCHOOLS SERVE MORE THAN 1,600
STUDENTS. INNOVA WAS SELECTED BY THE
WORLD ECONOMIC FORUM AS ONE OF THE 16
SCHOOLS DEFINING THE FUTURE OF EDUCATION.
THE OUTCOME:
CURRICULUM,
TEACHING
STRATEGIES,
BUILDINGS, OPERATIONAL PLANS, AND AN
UNDERLYING FINANCIAL MODEL TO RUN THE
NETWORK OF SCHOOLS AND POSITION IT TO
SCALE QUICKLY.
PILLPACK WAS THE SECOND STARTUP-IN-RESIDENCE TO WORK WITH IDEO CAMBRIDGE.
COMPANY FOUNDERS ELLIOT COHEN AND TJ PARKER JOINED FORCES WITH THE DESIGN
TEAM TO REDEFINE HOW CONSUMERS ENGAGE WITH THEIR PHARMACY. DURING THE
THREE-MONTH RESIDENCY, THE TEAMS FOCUSED ON MAKING SURE THAT EVERY
CUSTOMER INTERACTION WITH PILLPACK FROM SIGNING UP FOR THE SERVICE ONLINE
TO USING ITS PRODUCT DAILY WAS STRAIGHTFORWARD AND REASSURING.
THE CHALLENGE:
IMPACT:
HELP
PILLPACK,
AN
IDEO
STARTUP-INRESIDENCE, BUILD A VENTURING STRATEGY
FOR
ITS
PRESCRIPTION
HOME-DELIVERY
SYSTEM.
PILLPACK NOW DELIVERS HUNDREDS OF
THOUSANDS OF PRESCRIPTIONS EVERY
MONTH. AMAZON BOUGHT PILLPACK IN
JUNE 2018 FOR $1 BILLION.
THE OUTCOME:
A REFINED BRAND VISION, STRATEGY, AND
IDENTITY ACROSS CHANNELS, AS WELL AS A
REDESIGNED WEBSITE, A PRIVATE DASHBOARD
FOR PILLPACK CUSTOMERS, AND A SUITE OF
PHYSICAL PRODUCTS.
THANK YOU!!!!
TECHNOLOGY
STRATEGY
What is Technology Strategy?
It is the creation of an overall business plan which
consists of principles, objectives, and tactics for
using technology to achieve organizational
objectives.
Why is Tech Strategy Development
Important?
Technology runs our world and creates
opportunities for efficiency, growth, and
scalability within our businesses. Without a
technology strategy plan, your business can
easily fall behind competition.
Benefits of a Developing a
Technology Strategy
●
●
●
●
Alignment with overall business
objectives
Development of long term vision
Increased Operational Efficiency
Competitive Advantage
Implementing an Information
Technology Strategy
1.
2.
3.
4.
Develop a Team
Define the Plan
Prioritize Initiative Strategically
Sell Strategy to Organization
Examples and Importance of
Technology Strategy in Business
Example #1
In 2000, the founder of Netflix, approached Blockbuster’s
CEO with a proposal for partnership, in which Netflix
would run Blockbuster’s brand online, while Blockbuster
would promote Netflix in stores. Blockbuster’s CEO
laughed at the idea and Netflix went on to dominate the
online video rental industry, leading to Blockbuster’s
bankruptcy in 2010.
Example #2
In 1999, Napster was founded as an independent peer- topeer files sharing service. Napster specialized in sharing
MP3 files of music through a user- friendly interface. It
became widely popular with college students sharing songs
from their dorm rooms for free. However, Napster was sued
by the music industry for copyright infringement and
ultimately was shut down by the courts in 2001. In 2003,
Apple launched its iTunes Music service in cooperation with
record labels and consisting of digital rights management,
which was an evolution of Napster’s idea.
BUSINESS MODEL
INNOVATION
What is Business Model Innovation?
●
●
●
Refers to the creation, or reinvention of a business itself.
Innovation becomes Business Model Innovation when two
or more elements of a business model are reinvented to
deliver value in a new way
BMI results in a company that not only competes on the
value proposition of its offerings, but aligns its profit
formula, resources, and processes to enhance that value
proposition.
Example:Kodak
The company once accounted for 90 percent of film sales and
85 percent of camera sales. Although impressive, that was just
the problem: Kodak viewed itself as a film and chemical
business, so when the company’s own engineer, Steven Sasson,
created the first digital camera, Kodak ignored the business
opportunity. Executives were nervous that the shift toward
digital would make Kodak’s existing products irrelevant, and
impact its main revenue stream. The company lost its firstmover advantage and, in turn, was later forced to file for
bankruptcy.
Types of Business Model Innovation
●
Regular
●
Capabilities Building
●
Position Building
●
Revolutionary
●
Dynamic and Application
Benefits of Business Model Innovation
•
•
•
•
It is a key driver of competitive advantage for an organization.
It can help an organization discover new market opportunities
and expand its portfolio.
A new business model can also help an organization reduce
costs or enhance the perception of value from the customer’s
perspective.
It is an essential aspect of enhancing organizational
performance and leadership capabilities.
Reasons Companies Fail at Business Model
Innovation
•
•
•
•
•
CEOs don’t really want a new business model.
Product is king. Nothing else matters.
Cannibalization is off the table.
ROI hurdles are too aggressive for developing
models.
Rogues and renegades get no respect.
THANK YOU!
By: Ellen T. Caligdong
LEARNING OBJECTIVES:
1. Define what is innovation management.
2. Discuss the importance of innovation management.
3. Discuss the different types of innovation management.
4. Discuss what are the ways to build a robust innovation
management strategy.
1. What is Innovation Management?
Innovation Management
- is a business discipline that aims to nurture
a long-lasting, sustainable innovation
process within an organization.
2. Types of Innovation Management
• Incremental Innovation - it implies continuous improvement of
existing products or services.
• Disruptive Innovation – an innovation that can bring a
paradigm shift in the market or create a new market and makes
the current trend obsolete.
• Architectural Innovation – a myriad of technological
advancement has lead businesses to transition from traditional
tools to futuristic software.
• Radical innovation – it implies forming a new niche in the
market and new industry.
3. Why Innovation Management
important ?
1. Promotes Employee Engagement and Productivity.
2. Fosters Inclusion and Diversity.
3. Maintains Competitive Edge and Generates more
ROI.
4. Improves Business Performance.
5. Enhances quick Problem Solving and Project’s
Performance.
4. Ways to Build a Robust Innovation
Management Strategy.
Four (4) Principles in Formulating a well-defined
Strategy.
1.
2.
3.
4.
Develop a roadmap.
Encourage the workforce to be innovative.
Introduce processes that support your cause.
Formulate a structure and use technology to
expedite innovation.
References and Further Readings.
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https://l.facebook.com/l.php?u=https%3A%2F%2Fwww.saviom.com%2Fblog%2Fw
hat-is-innovation-management-and-why-is-itimportant%2F%3Ffbclid%3DIwAR0VgiHDFe1PCcFwZEYhfOvJn1cLUgmQAExTmj9dIvdnxT2lCN_oHmd3rw&h=AT3oPSPn1yIIXSZR_MuJFxRtMcUidD3UDu73s_VQfpqirQ6_Q8rRn6VIAo85hn3469XeE2TwhoDsO47LoTCzf2qeKJqQdgyu1imTmiQw37nAZRc7YHtiU1
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https://l.facebook.com/l.php?u=https%3A%2F%2Fau.indeed.com%2Fcareeradvice%2Fcareer-development%2Finnovationmanagement%3Ffbclid%3DIwAR1Lbjzg2ptCnvGBfYQ2f4hgTQsEW11RbtGGX0knMC7Ka2MqwbAU0Pw52g&h=AT3oPSPn1yIIXSZR_MuJFxRtMcUidD3UDu73s_VQfpqirQ6_Q8rRn6VIAo85hn3469XeE2TwhoDsO47LoTCzf2qeKJqQdgyu1imTmiQw37nAZRc7YHtiU1
OLD5d74tAhroVg