INNOVATION

Innovationisdefinedsimplyasa"newidea,
device,ormethod"

Effectiveproducts,processes,services,technolo
gies,orbusinessmodelsthatarereadily
availabletomarkets,governmentsandsociety
Incremental Innovation
Aseriesofsmallimprovementsorupgrades
madetoacompany'sexistingproducts,
services,processesormethods.
 Changesaremostlyfocusedon
improvinganexistingproduct'sdevelopment
efficiency,productivityandcompetitive
differentiation
 RadicalorDisruptive
Innovation
Radical innovationisaninventionorchange
thathasnotbeenseenbefore
Itisonethathasasignificantimpactona
marketandontheeconomicactivityoffirms
inthatmarket
The Ansoff matrix
 Current Product New Product

Market Product
Current
Market Penetration Development

New
Market Innovation
Market Development
Concentration or Market Penetration
 IncreasingsalestoCurrentCustomers
Getcustomersfromcompetitorsproducts
Convertnon-users
 ConcentrationonWhat they know they are
best at doing
 Reducestheamountofresources
Highriskstrategy=Alleggsinonebasket
Specializationinfewareas
 Market development
Marketingexistingproductsinnewmarkets
1. Newusers
2. Newchannelofdistribution
3. Slightdifferentproducts
 Product Development
Newproductinexistingmarkets
Improvedversionorsubstitutes
 Qualityimprovement
Featureimprovement
Stylemodels-Newpackaging
 Business Model Innovation

Business model innovation is the development

of new, unique concepts supporting an
organization's financial viability, including its
mission, and the processes for bringing those
concepts to fruition.
Primary goal..
To realize new revenue sources by improving
product value and how products are delivered
to customers
 Product innovation
The creation and subsequent
introduction of agoodorservicethat
is either new, or an improved version
of previous goods or services
 Process Innovation

Processinnovationistheapplicationor
introductionofanewtechnologyormethod
fordoingsomethingthathelpsanorganization
remaincompetitiveandmeetcustomer
demands
 Processinnovationcangeneratevaluefor
internalandexternalcustomers.
Reducingthetimeittakestoproducea
productorperformaservice;increasingthe
numberofproductsproducedorservices
providedwithinatimeframe;andreducingthe
costsperproductproducedorservice
provided.
 Processinnovationcangeneratesignificant
gainsinproductqualityandservicelevels.
Overall,anindividualorganizationneedsto
seeasignificantincreaseinsomeofitskey
performanceindicators(KPIs)tobeatrue
processinnovation.