Welcome to MDP Module - 5 Introduction to new product mind set - - PDF document

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Welcome to MDP Module - 5

Atul Padalkar

 08:00 - 08:30am Arrival of

Delegates

 Theme: 

Strategic Innovation in Organisations



Introduction to new product and service development



Learning organisation

 10:00am – 10:30am

Tea/Coffee break

 Theme: 

Innovation Performance and productivity



Product, service and life cycle



Case Study:

 12:30 – 13:30 Lunch  Theme: 

Entrepreneurship



Entrepreneurial organisation mind set Innovation, technology and Entrepreneurship

 15:00-15:15 Tea/Coffee

Break

 Theme: 

Linkages between innovation & entrepreneurship.



Challenges and Risks for the

• rganisation

Wednesday 19th June 2019

Key Questions….

1. What are the major issues faced by your

• rganisation/s?

2. How will you apply principles of

innovation and do things differently?

3. How can this be implemented as a

venture WITHIN the organisation?

4. How will you pitch it to the Board?

Why are you here? Our Agreement

American Bald Eagle

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Why Innovate?

VUCA

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Strength Weakness Opportunity Threat

What is happening in the Inside World? What is happening in the Outside World? Political 1 Economic 2 Social 3 Techno 4

DID YOU KNOW?



https://www.youtube.com/watch?v=u06BXgWbGvA&list=WL&index=41&t=0s

6 Worst Company Disasters



https://www.youtube.com/watch?v=T0Z73Zbtlyg&list=WL&index=36

How innovative is your

• rganisation?

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Introduction to innovation

Definitions Dimensions Drivers Developments

What is innovation?

 Innovation is the process and outcome of creating

something new, which is also of value.

 Innovation involves the whole process from

• pportunity identification, ideation or invention

to development, prototyping, production marketing and sales, while entrepreneurship only needs to involve commercialization (Schumpeter).

Definitions

 Innovation = Invention + exploitation (Ettlie)  A new way of doing things, which is

• commercialized. The process of innovation cannot

be separated from a firm’s strategic and competetive context (Porter)

 Adoption of ideas that are new to the adopting

• rganization

What is innovation?

 Today it is also said to involve the capacity to

adapt quickly by adopting new innovations (products, processes, strategies, organization, etc)

 Traditionally the focus has been on new products

• r processes, but recently new business models

have come into focus, i.e. the way a firm delivers value and secures profits.

What is innovation?

 Schumpeter argued that innovation comes about

through new combinations made by an entrepreneur, resulting in

 a new product,  a new process,  opening of new market,  new way of organizing the business  new sources of supply

Mechanisms of innovation

 Novelty in product or service (offering something no one else

does)

 Novelty in process (offering it in a new way)  Complexity (offer something which others find difficult to master)  Timing (first mover advantage, fast follower)  Add/extend competetive factors (e.g. From price to quality or

choice)

 Robust design (contribute a platform on which other variations

can build)

 Reconfiguring the parts (building more effective business

networks)

 ...

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Dimensions of innovation

 Extent of change (radical—incremental)  Modality of change (product—process)  Complexity of change (component—architecture)  Materiality of change (physical—intangible)  Capabilities and change (enhances or destroys

market/technological capabilties)

 Relatedness of change (replaces a firm’s existing product or

extends it)

 Appropriability/Imitability (difficult or hard to hang on to)  Cycle of innovation (time between discontinuities)

Drivers for innovation

 Financial pressures to reduce costs, increase efficiency, do more with less, etc  Increased competition  Shorter product life cycles  Value migration  Stricter regulation  Industry and community needs for sustainable development  Increased demend for accountability  Demographic, social and maket changes  Rising customer expectations regarding service and quality  Changing economy  Greater availability of potentially useful technologies coupled with a need to

exceed the competition in these technologies

Today’s basic model for innovation management is interactive

Technological world Commercial world Tech-entrepreneurship Administrative capabilities + Research Development Product/process development Market development =

Exercise I : Problems and Opportunities in Organisations

What are the top 3 challenges faced

by your Organisations?

 Why are these problems?  How did they arise?  How are they being addressed?  Do you see an opportunity in solving these problems?

Exercise I : Problems and Opportunities in Organisations

What are the top 3 challenges faced

by your Organisations?

 Why are these problems?  How did they arise?  How are they being addressed?  Do you see an opportunity in solving these problems?

Refine the problem to one ‘fixable’ problem to address in the next 30 days

THE WORLD OF CHANGE

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• 1. Idea Generation and Mobilization
• 2. Advocacy and Screening
• 3. Experimentation
• 4. Commercialization
• 5. Diffusion and Implementation

The Innovation Process

How is the Organisation you work for, required to change?

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Learning Organisation

The idea of learning organizations was popularized by Peter Senge’s book The Fifth Discipline (1990) Senge identified five learning disciplines:

 1. Personal mastery  2. Mental models  3. Shared vision  4. Team learning  5. Systems thinking

… what do they mean for you and for your organization??

The Fifth Discipline Peter Senge



https://www.youtube.com/watch?v=MQMRMAmT2gg

EXERCISE 2

 Brainstorm 3 rounds in your group of WHAT IF’s

around your problem.

 Present the Shortlist of What CAN

Sales Process – Current Clients Sales Process – New Clients

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Introduction to Corporate Venturing

Can we innovate in large companies?

 https://www.youtube.com/watch?v=6pm1bbLMqZE

Exercise 2: Intrapreneurial Pitch

Make a 10 minute pitch to your company about addressing the problem.

 Highlight the pain and its impact on the organisation  Its costs and other downside implications  How you propose to solve it innovatively  What resources / permissions you may need  What you will deliver and by when  How it will benefit the organisation

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An introduction to the Business Model Canvas

Atul Padalkar

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How will you create value?

Is your Business in a ‘Sweet Spot’?

Developing the Business Model

How a company creates value for itself while delivering products and services to customers

Business Plan: A document investors make you write that they don’t read. Business Model: A single diagram that describes your business.

• Steve Blank

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VALUE PROPOSITION value proposition 1 value proposition 2 …

OFFER

Describing a company’s offer

VALUE PROPOSITION TARGET CUSTOMER value proposition 1 value proposition 2 … target customer 1 target customer 2 … CUSTOMER OFFER

Describing who a company offers value to

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VALUE PROPOSITION TARGET CUSTOMER DISTRIBUTION CHANNEL value proposition 1 value proposition 2 … distribution channel 1 distribution channel 2 … target customer 1 target customer 2 … CUSTOMER OFFER

Describing how a company reaches its customers

VALUE PROPOSITION TARGET CUSTOMER CUSTOMER RELATIONSHIP value proposition 1 value proposition 2 … relationship type 1 relationship type 2 … target customer 1 target customer 2 … CUSTOMER OFFER

Describing the relationships a company builds

TARGET CUSTOMER REVENUE STREAM revenue stream 1 revenue stream 2 … target customer 1 target customer 2 … FINANCE VALUE PROPOSITION value proposition 1 value proposition 2 … OFFER CUSTOMER

Describing how a company makes money

CORE CAPABILITIES VALUE PROPOSITION core capability 1 core capability 2 … value proposition 1 value proposition 2 … OFFER INFRASTRUCTURE

Describing what capabilities are required Describing what activities are required

VALUE PROPOSITION VALUE CONFIGURATION CORE CAPABILITIES value proposition 1 value proposition 2 … core capability 1 core capability 2 … activity 1 activity 2 … INFRASTRUCTURE OFFER

Describing the partners that leverage the business model

VALUE PROPOSITION PARTNER NETWORK CORE CAPABILITIES value proposition 1 value proposition 2 … core capability 1 core capability 2 … partner 1 partner 2 … INFRASTRUCTURE OFFER

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VALUE PROPOSITION COST STRUCTURE cost account 1 cost account 2 … value proposition 1 value proposition 2 … FINANCE INFRASTRUCTURE OFFER

Describing the costs of a business model

CORE CAPABILITIES core capability 1 core capability 2 … VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS INFRASTRUCTURE CUSTOMER OFFER FINANCE a business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and sustainable revenue streams

The Core Business Model

VALUE PROPOSITION COST STRUCTURE CUSTOMER RELATIONSHIP TARGET CUSTOMER DISTRIBUTION CHANNEL VALUE CONFIGURATION CORE CAPABILITIES PARTNER NETWORK REVENUE STREAMS gives an overall view of a company's bundle of products and services portrays the network of cooperative agreements with other companies describes the channels to communicate and get in touch with customers describes the arrangement of activities and resources explains the relationships a company establishes with its customers sums up the monetary consequences to run a business model describes the revenue streams through which money is earned describes the customers a company wants to offer value to

• utlines the capabilities

Overall business Model

Atul Padalkar

atulp@bizfarm.co.za 082 897 7811

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