Category: Value-Creation & Testing
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Why: We want to learn about what innovation is and why it is so important to innovate.
What is the calculus of innovation? The calculus of innovation is really quite simple: Knowledge drives innovation, innovation drives productivity, productivity drives economic growth.
William Brody (born 1944), Scientist
In a flash, here is what innovation is and a bit on how you can approach creation!
Table of Contents
In Short
The problem is that the current zero-sum competition is too fierce, and you have little chance to survive. Exploring a non-existing is an ideal way to go about avoiding this hurdle. And for this you need INNOVATION!
1. What can be innovation
By developing a new product, you will obtain a certain degree of innovation. But, there is more to it! Here are 3 things that you can innovate.
- Product by creating a new generation: Performance-improving innovation
- Service with Low-end disruptions: Efficiency-improving innovation
- Business model with disruptive business model: Market-creating innovation
Yes, sure. The disruptive business model is what gets on the front page, but keep in mind that you can also be innovative by improving the product’s performance and incrementally improving the efficiency of the process.
2. Why do we need innovation
The answer is simple. Because the current competitive arena offers little value to be captured. This is, of course, depends on your company’s resources and capabilities. But in the case of Start-up, it requires almost always that it has innovative qualities as its capability.
We generalize here that future successful companies are the ones that look for a new unconquered market.
Red Ocean
- All about competition
- Zero-sum game
- Value-cost trade off
Blue Ocean
- Create new demand
- Synnergize with complements
- Break out of value-cost trade off
3. How to be innovative
Well, for product and service innovation, you are undoubtedly familiar with the processes.
Agile team and SCRUM run-through can be used for product development. While Kaizen or PDCA approaches are used to improve service.
To innovate the business model, though, I will cover this in the next post : )
Conclusion
Knowing what and why we need to innovate will set your mindset right. With this, your firm will be capturing new untapped value both in the current market or in a new market.
Gather your teammates around and start planning for innovation.