Dr. Chansoo Park
Learning Objectives:
What is Innovation?
Types of Innovation
Value Innovation
Creativity?
What is Innovation?
 Innovation is the successful development and
commercialization of new products and
services.
 In many industries, innovation is the primary
basis for competitive advantage and the principal
driving force of industry structural change.
Source: Bloomberg
 Innovative strategy: A strategy that
introduces a fundamentally different business
model than rivals.
Types of Innovation
Value Curve
Value
Innovation
New
Old
Old
New
Product/
Technology
Innovation
Old
New
Business
System
Innovation
•Differentiation Strategy:
The Strategic Game Board
A strategic approach to business growth, involving a shift away from a focus
on the existing competition to one of trying to create entirely new markets.
Costs
 Cost savings are made
by eliminating and
reducing the factors an
industry competes on.
See also Value Curve
PPT slides
Value
Innovation
Buyer Value
 Buyer value is lifted by
raising and creating
elements the industry
has never offered.
Creating New Marketspace
Potential
Existing
Existing Customers
Source: Hamel, Competing for the Future
New Customers
•Reinventing
•Nutshell
Value Innovation : Value Curve
Blue Ocean: Creating New Marketspace
Creativity
The end