The last oral assignment in academic English course for business students.

1. INNOVATIONS
AND INNOVATION MYTHS
Mika Martikainen
Business presentation 30.11.2010
@English for Communicating in Business –course
University of Eastern Finland, Kuopio

2. JUST TO THINK..
 In Finland
 823 million euros of public money
 are marked to innovation policy and
companies’ internationalization
(from 2011 Budget Proposal to Parliament by Ministry of Finance)
 BUT, over 90 % of innovations are done inside
the firms and organizations by themselves

3. CONTENT
 Why?
 What is innovation?
 Six innovation myths and examples
 Conclusion and final words
 Q&A

4. WHY?
 my main subject in Economics: Innovation
management
 Bachelor’s and Master’s thesis: Innovation
environment in Keuruu region (in social sciences,
main subject entrepreneurship)
 own interest
 my thought: Innovation processes will be normal
and continual in all organizations in the future
(or maybe even today in some companies)

5. WHY?
 innovations & innovating are ”trendy”:
 European Commissions Innovation policy (2008) and
Innovation Action Plan (2010?)
 Finland’s National Innovation strategy (Ministry of
Employment and the Economy 2008)
 many regional strategies, like Innovation strategy of
Eastern Finland (Tekes 2007)

6. WHAT IS INNOVATION?
 multi-stage process where new ideas are
transformed into new/improved
 products
 services
 processes/procedures
 which are commercially exploited
 so an invention/idea is not an innovation because
it doesn’t add value to company/organization

7. INNOVATION ENVIRONMENT…
 = All organizations and operators (public or
private sector) in one regional area
 city covernment, (regional) development
companies, Tekes, Finnvera, banks, insurance
companies, accountants, consultants,
entrepreneurship organizations, …
 and of course enterprises themselves

8. INNOVATION MYTHS
People – even entrepreneurs – think:
 innovation =
”something nonsense terminological hype from consults”
 or ”it doesn’t concern me/us”
 or ”I’m not intrested”
 or ”I don’t understand”
 other negative or wrong thoughts about
innovations or innovating..coming next.

9. MYTH #1: ALL IDEAS = INNOVATION
 False.
 Most ideas are stupid or bad
 = illegal, infeasible, nothing new..
 pure idea, invention or vision = nothing ..
 …if you can’t profit it commercially

10. MYTH #1: ALL IDEAS = INNOVATION
– (BAD) EXAMPLES
 sub-prime loans…
 new coke in 1985 (Coca Cola Company)…
 Iomega zip –drivers…

11. MYTH #2: CREATIVITY =
INNOVATION
 False.
 Professor Alf Rehn has criticised: ”creativity is a
buzzword”…
 Erkki KM Leppävuori from VTT: ”innovation is 1
% of idea and 99 % of hard work”

12. MYTH #2: CREATIVITY =
INNOVATION - EXAMPLES
 Many big companies are creative and innovative
 like Apple and Google..
 Google’s offer: 20 % of work time for own
projects/ideas
 ..but most of the projects lack

13. MYTH #3: INNOVATION PROCESSES
ARE FAST
 False.
 From idea to success innovation can take even
years (or decades)
 Sometimes processes are fast, for example agile
software development (focus on doing/coding
rather than planning)

14. MYTH #3: INNOVATION PROCESSES
ARE FAST - EXAMPLE
 Kitewing /
 Windsports.net
 idea 1987
 company founded 1993
 in 2009: retails in over 20
countries and four employees
 not so fast?
(source: Fogelholm Carl-
Magnus: Tuoteideasta
innovaatioksi. 2009)
(Photo from Flickr.com by laazik, CC-licensed;
http://www.flickr.com/photos/laazik/3391797789/)

15. MYTH #4: WE DON’T NEED TO
INNOVATE
 False.
 You probably do it all time, specially
entrepreneurs
 innovate = think different, ”how to make more
money”

16. MYTH #4: WE DON’T NEED TO
INNOVATE - EXAMPLE
 Interviewed CEO of food industry company (~70
employees):
 ”innovating is necessity… because of productivity
and cost-effectiveness”

17. MYTH #5: INNOVATING IS LINEAR
AND CONTROLLABLE PROCESS
 False.
 Best ideas come when you expect least
 Innovating = human work
 Really: you can’t control others’ brain activity

18. MYTH #5: INNOVATING IS LINEAR
AND CONTROLLABLE PROCESS -
EXAMPLE
 ”accident”
 production line
failed: too few /
bad glue
 noticed that it
sticks passable
without dirty =>
3M Post-it notes
(Photo from Flickr.com by riNux, CC-licensed;
http://www.flickr.com/photos/rinux/631345826/)

19. MYTH #6: INNOVATING IS DONE BY
SMALL INTERNAL TEAM
 False.
 Open innovation (by Chesbrough 2003)
 innovation process is ’open’: innovation sources…
 …from customers, subcontractors, interest
groups, stakeholders, even competitors..

20. MYTH #6: INNOVATING IS DONE BY
SMALL INTERNAL TEAM -
EXAMPLES
 Good example: Open Source communities
 ..like Linux (operating system for computers),
other OS softwares
 = everyone can program / be part of the
innovation processes
 Wikipedia.org, …
 Starbuck’s product ideas crowdsourcing (
http://mystarbucksidea.force.com/) , ...

21. CONLUSION
 Innovation is
 creativity
 ideas
 developing
 commercializing, but..
 slow
 uncontrollable
 process
 to make new product, service or procedure
to get more profit

22. FINAL WORDS
 Keep eyes and mind open
 Write ideas down and archive
 Wait [or ”make”] for the right moment (or job
situation) to share your idea
 An entrepreneur?
 Ask help from innovation environment (or tell
your idea to a friend or share it in the Internet)

23. QUESTIONS & ANSWERS
and Thank you!
Mika Martikainen
twitter.com/mikamartikainen
slideshare.net/mikamartikainen