Analysis of 'The New Patterns of Innovation'.
- 1. Internship on Data Analytics with Managerial Applications under Prof. Sameer Mathur, IIM Lucknow Submitted by Chandrasekar V, NIT Trichy
- 2. Week 4, Day 2 – 23rd January, 2018 Task 3: Analysis of the article ‘The New Patterns of Innovation’. • Q1) List the two most (important / interesting / informative) insights from this article? • Q2) Why and how are these insights relevant to a manager in India?
- 3. Q1) List the two most (important / interesting / informative) insights from this article? A1) 1st Insight: The 4 basic frameworks in the search for business innovation ideas.
- 4. THE 4 BASIC FRAMEWORKS IN THE SEARCH FOR BUSINESS INNOVATION IDEAS • Search for new business ideas and models is hit-or-miss in most corporations. • One explanation - Managers skilled at executing clearly defined strategies are ill equipped for out-of-the-box thinking.
- 5. THE 4 BASIC FRAMEWORKS IN THE SEARCH FOR BUSINESS INNOVATION IDEAS • One is a competency based framework, which focuses on building on the existing capabilities and assets to enter new businesses and markets. • Another is customer focused framework, where study of customers’ behavior gives details about their unmet needs
- 6. THE 4 BASIC FRAMEWORKS IN THE SEARCH FOR BUSINESS INNOVATION IDEAS • Third one addresses changes in the business environment, as in looking at the future business opportunities by following the “megatrends” or other shifts. • The fourth approach complements the existing frameworks but focuses on opportunities generated by the explosion in digital information and tools.
- 8. Q1) List the two most (important / interesting / informative) insights from this article? 2nd Insight: The 5 patterns that facilitate the hunt for new business value.
- 9. PATTERN 1: AUGMENTING PRODUCTS TO GENERATE DATA • Advances in wireless communications and big data have made it feasible to gather and process large chunks of data. • Those data can be used to improve the design, operation, maintenance, and repair of assets or to enhance how an activity is carried out.
- 10. PATTERN 1: AUGMENTING PRODUCTS TO GENERATE DATA • Such capabilities, in turn, can become the basis of new services or new business models. • Some of the classic examples are Rolls-Royce engines for aircrafts, SKF’s intelligent bearings, etc.
- 11. PATTERN 2: DIGITIZING ASSETS • As mobile technologies continue to fuel the trend of digitization, more creative businesses will generate their own enhanced services or new business models. • Digitized versions of physical assets are transforming the way people operate in industries.
- 12. PATTERN 2: DIGITIZING ASSETS • As more assets become digitized, the expectations of shifting of competitive advantage keep increasing. • Digitization slashes distribution costs and makes the ability to move physical inventory efficiently or secure favorable store locations less critical.
- 14. PATTERN 3: COMBINING DATA WITHIN AND ACROSS INDUSTRIES • The science of big data, along with new IT standards that allow enhanced data integration, makes it possible to coordinate information across industries or sectors in new ways. • The example referring to Bolzano city in Italy, describes this perfectly.
- 15. PATTERN 4: TRADING DATA • The ability to combine disparate data sets allows companies to develop a variety of new offerings for adjacent businesses. • The illustration of Vodafone and TomTom partnership for tracking their customers’ vehicles’ speed and pin-pointing the traffic jams, was inspiring in many ways.
- 16. PATTERN 5: CODIFYING A DISTINCTIVE SERVICE CAPABILITY • Now companies have a practical way to take the processes they’ve perfected, standardize them, and sell them to other parties. • Any process that is best-in-class, but not central to a company’s competitive advantage, can be turned into a profitable business.
- 17. Q2) Why and how are these insights relevant to a manager in India? • Managers need to understand that there is an unavoidable need for innovations in business. • Innovative ideas upon execution can help the company gain huge amount of profits.
- 18. Q2) Why and how are these insights relevant to a manager in India? • Managers need to think out-of-the-box, which can have a wider reach to the public. • So, they need to follow the 5 steps of framework for the betterment of their organization.
- 19. THANK YOU