Lect 7 Flashcards
“Disruption” describes
a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses.
When mainstream adopts entrants’ offerings, disruption occurs.
how is a disruption possible?
Incumbents serve profitable customers, ignoring others. Entrants disrupt by targeting underserved segments with cheaper, more suitable solutions. Incumbents react slowly. Entrants move up, meeting mainstream needs.
DISRUPTIVE INNOVATION is
A process by which a product or service initially takes root in simple applications at the bottom of a market—typically by being less expensive and more accessible—and then relentlessly moves upmarket, eventually displacing established competitors.
Startups search
Temporary organizations that search for sustainable and profitable business models.
Companies execute
Established organizations that execute on known business models, addressing a known need of a known customer.
Companies should see themselves as single institutions with single business models
WRONG thats a mistake
The ambidextrous organization is
excellent at both executing and searching,
simultaneously.
they Incorporate the entrepreneur’s ability to generate newness with the need to run the existing business
CORPORATEINNOVATION- CLOSED/INTERNAL
- Internal R&D
- In-house innovation labs
- Corporate Accelerators
CORPORATEINNOVATION- OPEN/EXTERNAL
- Innovation team
- Corporate VC arm
- External Accelerators
Common tactics for innovative idea generation
- Bottom up- Suggestion box, e-platform
- Top down- Ideation events, Design Thinking on strategic topics
- External- Hackathons, Open call for ideas /startups
“Innovation almost never fails due to a lack of creativity. It’s almost always because of a lack of..
discipline
BCG- SIX INNOVATION MODELS
CREATOR- we know best
SOLUTION BUILDER- we’re listening
LEVERAGER- we do it best
EXPANDER- seeking shares to steal
DEFENDER- protecting our turf
FAST FOLLOWER- ready to react
The Innovation Thesis gives
the company a direction to move forward, in an integrated coherent way.
The innovation thesis allows to integrate the current business and the innovation activities, provides a good guide for success metrics and also ideation.
> > The perfect environment for an innovation strategy
The Innovation Portfolio is
A framework to help make good investment decisions for creating innovation inside the company
» Putting the innovation strategy into practice
INNOVATION THESIS
- Vision of the future: articulate where the industry is going…
- Decide in which areas/technologies the company should invest…
- Decide in which areas /technologies the company will not invest.
