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Innovation - Drivers<br />Increased demand for accountability<br />Stricter regulation<br />Technologies coupled with a need to exceed the competition in these technologies<br />Rising customer expectations regarding service and quality<br />Changing economy<br />Drivers<br />Increased competition<br />Demographic, social and maket changes<br />Industry & community needs for sustainable development<br />Shorter product life cycles<br />8<br />
Innovation Types<br />9<br />Incremental Innovations<br />Focused on making small but significant improvements to existing products or services (when industry is mature)<br />Breakthrough Innovations <br />Introduces an existing technology into a new market, a new technology into an existing market or changes the way the offering is delivered<br />Disruptive Innovations<br />Game Changers who disrupt an existing market or create a whole new market<br />
Innovation - Sustaining vs. Disruptive<br />10<br />Sustaining<br />Focused on demanding customers; both incremental and radical.<br />Incumbents have resources and motivation<br />Disruptive<br />Introduce products and services not as advanced as existing ones, but offering other advantages (simpler, cheaper, more user friendly, ...) and focus on new or less demanding customers.<br />
Innovation - Enablers<br />11<br />Climate for Creativity<br />Working environment where inspiration thrive & creativity flourishes<br />Idea Generation<br />Secure a continuous source of creativity and flow of new ideas<br />Incubation Structures<br />Support the development and growth of ideas from innovation to delivery<br />Metrics & Incentives<br />Measure outcomes from creative processes and recognise talent at the organisation and individual levels<br />Role of Collaboration & Partnering<br />Work externally and internally with organisations and specialists who have the strongest capabilities for innovation<br />Integration of Business & Technology<br />Integrate technological capabilities with business insight to achieve innovation<br />
Innovation - Dependency<br />12<br />Small Firms depend on large firms for ..<br /><ul><li>as suppliers or customers
Innovation – Product / Service Measures<br />Growth rate in share of key customers’ purchases<br />Time to market for new products / services<br />Growth rate in number of customers<br />Number of patents<br />% age of revenue / sales / gross margins from new products / services<br />Customer satisfaction with product / service features<br />Product / Service Measures<br />ROI for new products / services<br />% of new products / services achieved initial business objectives<br />Time to profitability for new products / services<br />% age of products / services making up the 80% of sales volume<br />16<br />
Innovation – Business Model Measures<br />Number of sales channels used<br />Number of channel partners / alliances appointed / created<br />Revenue growth <br />Profit growth <br />Number of new sales channels created during the year<br />Business Model Measures<br />% age business components or processes outsourced<br />Number of joint ventures created during the year<br />Average time to act on identified business opportunities<br />17<br />
Innovation – Operation Measures<br />Warranty expenses as a % age of sales<br />Cost of goods sold as a % age of sales<br />On time delivery<br />Cost reduction<br />Customer retention<br />Operation Measures<br />Perfect order fulfilment<br />Full time equivalents<br />Customer satisfaction from order taking to delivery<br />Order fulfilment cycle time<br />Inventory turnover rate<br />18<br />
19<br />“No one asks you to throw Mozart out of the window. Keep Mozart. Cherish him. Keep Moses too, and Buddha and Lao Tzu and Christ. Keep them in your heart. But make room for the others, the coming ones, the ones who are already scratching on the window-panes.” <br />- Henry Miller <br />