Innovation

Question 1

Creativity

Answer 1

the ability to transcend traditional ideas, rules, patterns, relationships, or the like and create meaningful new ideas, forms, methods or interpretations

Coming up with the idea

Question 2

Innovate

Answer 2

make changes in something established, especially by introducing new methods, ideas, or products

Executing the idea

Question 3

Issues w/innovation in health systems (4)

Answer 3

-New treatments have regulatory/evidentiary hurdles with rare adverse effects detectable only after wide use
-Payment/reimbursement from a third party
-Accountable care organizations create fixed outcomes with capitated payment structures
-Models of research funding emphasize external funding, delinking potential advancements with the primary organization

Question 4

Value created by innovation (5)

Answer 4

1. R&D investment
2. Products or services
3. Advertisement or availability
4. Consumer success or failure
5. Success market share $$$

Question 5

Story of Many Haberman and the “Anywayup” Cup

Answer 5

-Invented the first non-spill child cup
-Retailers wouldn’t deal with a “one product” company
-After repeated problems, sent a cup full of juice loose in a white cardboard box to a buyer and was in the market 8 weeks later
-One of the companies that went silent took a copy of the prototype to market
**Innovated cup and how to get people’s attention

Question 6

Disruptive Innovation

Answer 6

-Process by which a smaller company with fewer resources can start up with a product or service that is able to challenge established incumbent businesses
-incumbent focuses on product or service for their more demanding and profitable customers (chase higher profit margins, exceed the needs of some segments, miss the needs of others)
-allows for opportunity for innovative entrants to provide for overlooked segments and then move “upmarket” on incumbents business foothold

Question 7

The Disruption Effect

Answer 7

Identified a phenomenon where many large companies failed to survive an innovation challenge from new entrants

Question 8

4 things that did NOT cause large companies to fail to survive an innovation challenge from new entrants (The Disruption Effect)

Answer 8

1. It was NOT because they didn’t focus on their customers or listen to what they needed – they did
2. It was NOT because they couldn’t muster the resources – many were at the top of their industries in market share and profitability
3. It was NOT because they couldn’t match or adopt the technology that was entering the market – they could (and in some cases did develop and have the technology)
4. It was NOT because they were poorly managed – in some cases there were very well managed (one steel manufacturer single-handedly turn the U.S. steel manufacturing quality around)

Question 9

What are the 4 characteristics of disruption?

Answer 9

1. Disruption is a process. It isn’t just the product or service, but its evolution over time
2. Disrupters often build business models that are very different from the incumbents.
3. Some disruptive innovations succeed; some don’t
4. The mantra “Disrupt or be disrupted” is misguided. Profitability is driven in the Northeast zone. Invest in sustainable innovations, understand emerging markets, don’t just ignore unprofitable sectors of the business.

Question 10

Disruptive vs Architectural vs Routine vs Radical

Question 11

3 signals that your industry is about to be disrupted

Answer 11

1. Your industry has significant regulatory burdens: Heavily regulations have traditionally created a barrier to new entry resulting in a significant gap in customer service.
2. Your customers need to work to manage their costs (or, your cost models are hard for your customers to understand).
3. Your customer experience is not positive, or even neutral. Customers regularly complain about their experience or are not very delighted to have to interact with you.

Question 12

Innovating in the Negative Space: Demand-pull

Answer 12

Customer challenges that create the white space and innovation moves there with new products or services to fill the demand

Question 13

Innovating in the Negative Space: Supply-Push

Answer 13

Create the white space – develop technology or service then find or create the market

Question 14

Formulation for innovation (3)

Answer 14

1. Talent
2. Environment
3. Process

Question 15

Recipe for Innovation (building)

Answer 15

1. Teach it and create a culture for it
2. Create a “space” for it
3. Fund it
4. Provide opportunities for implementation

Question 16

Recipe for Innovation (Meal Course)

Answer 16

-Innovation in products and services focus externally on creating an exchange with our customers (e.g., drug or device)
-Innovation in processes focus internally on creating value for the customer in our deliverable
-Innovation requires a degree of tolerance for uncertainty

Question 17

Three phases (The Innovation Value Chain)

Answer 17

-Idea generation (many stop here)
-Idea development
-Diffusion

Question 18

Parts of idea generation phase

Answer 18

Internal sourcing
Cross-unit sourcing
External sourcing

Question 19

Parts of conversion phase

Answer 19

selection and development

Question 20

Parts of diffusion phase

Answer 20

companywide spread