TYPES OF INNOVATION

What does the term ‘innovation’ mean to you?

Creative thinking Coming up with innovative ideas ??? Individually, without conferring, write down the name of an everyday manufactured item, fold it up and place it in the bag Then in groups of 3, pick out two of the papers at random. Business Ideas_1213_v1 © Peter Jones Enterprise Academy 2013

Learning Outcomes Identify and explore different types of innovation Discover ideas for an innovative product and select ways to improve an existing product Improve your problem-solving/creative skills by looking at innovating existing business models

Different types of innovation Product innovation: New product/invention Market innovation: Developing an existing product into new area Business Model Innovation: Increasing efficiency and developing cost advantage Business Ideas_1213_v1 © Peter Jones Enterprise Academy 2013

Product Innovation The development and market introduction of a new, redesigned or substantially improved good or service. Examples of product innovation by a business might include a new product’s invention; technical specification and quality improvements made to a product; or the inclusion of new components, materials or desirable functions into an existing product. Source: www.businessdictionary.com

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Discussion Name some examples of product innovation iPad Mini car iPhone Driverless car Collaborations – Shampoo and conditioner in one; Online banking

Product Innovation Identify ways in which the two items chosen could be combined to make a new product.

Use ‘SCAMPER’: S Substitute C Combine A Adapt M Modify P Put to other uses E Eliminate (or Elaborate) R Rearrange(or Reverse) Creative brainstorming tool for coming up with ways to improve an existing product or service Business Ideas_1112_v1 © Peter Jones Enterprise Academy 2011

Present this to the group Narrow down your ideas, choosing one that is both innovative and interesting; Explain and justify your choice to the whole group.

Business Model Innovation What is a business model? Description of means and methods a firm employs to earn the revenue projected in its plans. It views the business as a system and answers the question, “How are we going to make money to survive and grow?” Business model innovation – how can efficiency be improved or cost savings made? Source: www.businessdictionary.com

Discussion Name some examples of business model innovation Virgin – how it approaches all its enterprises Easyjet Shutl Amazon Argos Pret a Manger Credit card readers to attach to mobile phones

Business Model Innovation In pairs suggest a way that each of these services can be improved to increase efficiency and develop a cost advantage

Market Innovation The expansion of the total market for a product or company by: Entering new segments of the target market Converting non-users into users, and/or increasing usage per user Entering new geographic markets Source: www.businessdictionary.com

Discussion Name some examples of market innovation Lucozade

What did you learn today? What are the different types of innovation? Are the different types of innovation used in isolation?