Joel Herdian Seciawanto

04211941000024

Innovation Term and Role

There are 2 types of innovations :
Key Point: Innovation is a way of developing and
implementing new ideas or something new by people
who overtime engage in transactions with other
First Mover Advantage ( Start-Up)
within the institutional order.

It is really important to do some innovation, Why ?

● Innovation will stimulate growth of a company

● Innovation is a key to success
● New things need to be introduced, as our world Customer Focused Innovation
becomes faster and faster.

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Joel Herdian Seciawanto
04211941000024

Innovation Factors
INNOVATION FACTORS

● Creativity
Key Point: In order to create new innovation,
● Knowledge Management
there are criterias or factors that a company
need to consider to make the innovation ● Relationship Management
right. ● Organizational Management
Good Management of the company, will ● Service Management
induced the innovation of the company. This
● Strategic Management
is mainly because, the employee doesn’t
need to think only how to keep up the work,
but how to grow the works.

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Innovation Types Joel Herdian Seciawanto
04211941000024

Key Point: Innovation has some different type,

the categorization is based on two things: MAJOR Major Innovation Radical
Innovation
● the impact of the innovation on consumer
habits and behaviour.
● the effect on established firm’s MINOR Incremental Strategic
Innovation Innovation
competences and complementary assets.
The good innovation type is the major that
enhance the effect id the company’s ENCHANCE DESTROY
competences. The destroy factor if it is minor
still can be considered as good innovation,
where as the radical innovation is not
reccomended.

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Innovation Problems Joel Herdian Seciawanto
04211941000024

Key Point: Innovation has some limits. The limitations are the key factor of lacking
innovation in a company. But, too much innovation would also limited by certain factors
such as:
● Most new products are overengineered
● Majority of business commercialized less than 20% of promising ideas due to strict
competitive.
● Lacking people with adequate skills.

Over engineered Lacking Employee with

Strict Competitive
Product adequate skills

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Joel Herdian Seciawanto

Solutions
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From the possible problems on the slide Problems Solutions

before, there are ways to solve the problems. Overengineer Fullfill the excellence of
There are: Product technology that innovation
needs
● Excellence in technology to fulfill
Strict Competitive Combined Engineering,
innovation needs. business, and managerial
● Technical skills must be combined with skills, to be more than your
competitors.
business and managerial skills.
● Information and Communication Lacking Adequate Hire skillful employee with the
Employee support of the innovation
technologies can support the design
design process
process of innovation

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Joel Herdian Seciawanto
Success Factor of Innovation 04211941000024

To be success in innovating something, there will be

some factors and problems that need to be considered.
They are: Important Factors
● Direct customer contact
● Clear product of service strategy Managing
Managing Ideas
● Creative employees Attention
● Tight relation between innovation objectives and
● Ideas are ● Psychological
business strategy developed limitation
● Cross functional teams overtime ● Stability vs
● Defined core competencies ● Implementation Creativity/chang
● Systematic improvement in project management ● Good Currency e
skills ● Need of
innovation

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Joel Herdian Seciawanto

Disruptive Innovation
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Problems Solutions
Disruptive innovation is innovation and
Enabling Enabling technology is
technologies that make expensive products
Technology defined as the tech and
and services accessible and more innovation that substantially
affordable to broader market change or improve the
process on how ppls think.
The disruptive innovation refers to the use
of technology that upsets a structure, as Innovative The innovative business
opposed to “distruptive technology’ which Business Model model is a business model
refers to the technology itself. that uses innovations to target
new or bottom-tier customers.
There are requirements for distruptive
innovation: Coherent Value The coherent value network
Network includes the upstream and
downstream business
partners that benefit from a
successful disruption

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Joel Herdian Seciawanto
04211941000024

Sustaining and Disruptive Innovation

Disruptive innovation is a type of invention that
simplifies and makes products and services more
affordable for untapped or underserved markets.

Sustaining innovation, on the other hand, is the

process of improving existing goods and services
for current customers, either in response to
consumer or market demands.

Reference: Gurning. Saut. “ Innovation Management”. 2021

 Joel Herdian Seciawanto
04211941000024

New-Market & Low-End Disruption

There are two different type of disruptions:

Low-end disruption is business that come in at

the bottom of the market serve customers in a
way that is good enough. Generally low-end
business will make lower profit the growth is
upstream and the focus on where the greater
profit margin are.

New market disruption are business that

compete against non-consumption in lower
margin sector of industry. The business
emerging is profitable at lower prices.
Reference: Gurning. Saut. “ Innovation Management”. 2021
 Joel Herdian Seciawanto
Design-driven cost reduction 04211941000024

● Design cost is the cost Process discipline imposed at every stage

management technique that
described systematic approach to
controlling the cost of product Target setting and transparent monitoring
development and manufacturing.
The main idea is that costs are
design into the product. Cross functional organization removing
barriers and fostering collaboration and
● The cost reduction is the process creativity
of reducing cost to increase
profits. There are several cost
Management Commitment
reduction strategies such as:
Reference: Gurning. Saut. “ Innovation Management”. 2021