Innovation

09/10/2022
 Prayer
Gospel Reading: John 14:1-6

Jesus said to his disciples:

"Do not let your hearts be troubled.
You have faith in God; have faith also in me.
In my Father's house there are many dwelling places.
If there were not,
would I have told you that I am going to prepare a place for you?
And if I go and prepare a place for you,
I will come back again and take you to myself,
so that where I am you also may be.
Where I am going you know the way."
Thomas said to him,
"Master, we do not know where you are going;
how can we know the way?"
Jesus said to him, "I am the way and the truth and the life.
No one comes to the Father except through me."
 Innovation
• What is Innovation?
The word “innovation” is derived from the Latin verb innovare, which means to renew. In
essence, the word has retained its meaning up until today. Innovation means to improve or to
replace something, for example, a process, a product, or a service.

“Innovation is a process by which a domain, a product, or a service is renewed and brought up to

date by applying new processes, introducing new techniques, or establishing successful ideas to
create new value.”
Examples of Innovation
 Why Innovation is Important?
Organizations have several options to increase their competitiveness: they can strive for price
leadership or develop a strategy of differentiation. In both cases, innovation is essential.

• Companies that choose price leadership must secure their long-term competitiveness by
developing innovative, highly efficient processes. Process optimization and continuous
improvement in terms of costs are important for them.
• Companies that strive for a differentiation strategy need innovation to develop unique
distinguishing features to their competitors.
• Many start-ups launch their activities by developing an innovative product or service.

Continuous innovation is, therefore, crucial for all companies. The main difference is in the focus
of the innovation strategy, which varies considerably from company to company.
 Why Innovation is Important?
Organizations have several options to increase their competitiveness: they can strive for price
leadership or develop a strategy of differentiation. In both cases, innovation is essential.

• Companies that choose price leadership must secure their long-term competitiveness by
developing innovative, highly efficient processes. Process optimization and continuous
improvement in terms of costs are important for them.
• Companies that strive for a differentiation strategy need innovation to develop unique
distinguishing features to their competitors.
• Many start-ups launch their activities by developing an innovative product or service.

Continuous innovation is, therefore, crucial for all companies. The main difference is in the focus
of the innovation strategy, which varies considerably from company to company.
 Why Innovation is Important?
This makes innovation as one of the most important drivers for the long-term success of
companies. Accordingly, methods of collaboration and teamwork are increasingly being used
in numerous companies, for example,

• to promote digital innovations and

• overcome the challenges of digital change.

Innovation requires a higher degree of creativity than the operative business and a clear
innovation strategy, especially in the phase of the so called “fuzzy front end of innovation“.

• Concepts like lean innovation and the establishment of community-based innovation

networks become increasingly relevant.
• Companies are using modern idea management software and innovation management
software to manage innovation efficiently.
 Lean Innovation
Lean innovation is focused on increasing efficiency by capturing customer feedback early and
often and minimizing waste in the product development cycle. The process prioritizes
experimentation over elaborate planning, and celebrates continuous, incremental improvement.

Tucker Marion, an associate professor in Northeastern University’s D’Amore-McKim School of

Business and director of the Master of Science in Innovation program, defines lean innovation as
a combination of three main methodologies:

• The ability to identify new opportunities using design thinking

• The ability to quickly, and with fewer resources, develop, prototype, learn, validate, and
improve business solutions
• The ability to apply lean processes, which enable teams to reduce waste, make incremental
improvements, and eliminate the bureaucracy that often hinders innovation
 Design Thinking Role in
Lean Innovation
•Design thinking is a customer-centric approach to
brainstorming new ideas and solving problems.

•The process, popularized by global design firm IDEO, puts

the emphasis on the customer. What pain points have users
experienced? How are they currently solving their problem? By
observing end users in their natural environment,
companies can better understand their customers’ needs
and, in turn, uncover unique insights that could lead to new
business opportunities.

•IDEO – design and consulting firm. Known for designing

the first ever manufacturable mouse for Apple.
 Design Thinking Role in Lean Innovation
The Hasso Plattner Institute of Design at Stanford University—where IDEO founder David Kelley,
a Stanford professor, helped conduct research on design thinking—breaks design thinking
down into five phases:

• Empathize: Observe and engage with users to discover their actual needs
• Define: Determine the problem; what stood out as you were talking to customers?
• Ideate: Brainstorm potential solutions to the problem; there’s no wrong answer at this phase of
the process
• Prototype: Work as a team to select the top idea based on pre-determined voting criteria and
start building, even if it’s just using paper and pen
• Test: Put the prototype in users’ hands and iterate based on their feedback
 Design Thinking Process – conducting research
• Conducting research
The research phase aims at defining the problem the team will work on during the design process.

Collecting data provides valuable information that allows you to draw conclusions about the prospects of the
project. It is necessary to conduct research, even if there is clear confidence in the positive outcome. Many
products turn out to be useless to people, and companies lose profits. Analyzing the preferences of the target
audience and determining the problems that people can solve with the help of the product helps to avoid such
problems.

At the research stage, you need to collect all the data that affects the use of the project.
 Design Thinking Process – conducting research
(Methods use):

1. User Interview
Conducting interviews is a simple and straightforward method of researching your potential clients, learning
their opinions, motivation, feelings, or the way they use some products.

To conduct a high-quality and useful user interview, you should prepare a list of questions and make the person
feel comfortable talking about the product and its goals. Asking additional questions and clarifying will help you
find the essence – what clients expect to receive with the product. It will help to understand the needs and
characteristics of customer behavior, define new directions that are promising and interesting for clients.
 Design Thinking Process – conducting research
(Methods use):

2. Competitive Analysis
The main goal of a competitive analysis is to obtain information about the advantages and disadvantages of
your rivals, learn more about their strategy for the development of the product.

Strong points of your competitors will show in which direction to move, while weak points can help you
understand how to create a better solution.
 Design Thinking Process – conducting research
(Methods use):

3. Moodboard
Moodboard is a collection of visuals and references that represent the style of your project. With the help of a
moodboard, you can show clients or stakeholders an approximate look of the project without spending much
time or money.
 Design Thinking Process – developing strategy
UX strategy is a detailed plan of how the design of a future app will look and work. At this stage, the
product team generates ideas, validates and visualizes them.
 Design Thinking Process – developing strategy
(Methods use):

1. Brainstorm
Brainstorming, as one of the methods of strategy stage, involves team members from different departments
gathering together to generate and validate a set of ideas for a design solution before choosing the optimal
one.
 Design Thinking Process – developing strategy
(Methods use):

2. Customer Journey Map

A customer journey map is a table or infographic that shows all the points of contact of a consumer with a
product from the moment of the first interaction.

This map displays the client’s actions, thoughts, emotions, and problems they face and serves as a tool
that helps improve the customer experience.
Design Thinking Process – developing strategy
Design Thinking Process – developing strategy
(Methods use):

3. User flow
User flow represents the steps user takes when interacting with the product. It looks like a diagram
that shows the path of a user to their goal. Building user flows help to understand at what point the
customer may have troubles and how designers can improve them.
 Design Thinking Process – developing strategy
(Methods use):

4. Wireframes
Wireframe presents the structure of the page. It shows the location of design elements on each page and
how they connect with each other. They serve as a visual guide for designers on how to build the product.
 Design Thinking Process – Designing a
prototype
Prototyping is a very important piece of the design puzzle. It helps to convey the vision of the product to
customers and illustrates the desired result to the developers.

A prototype is a basic structure of the product with main elements and features. It is like a simulation of
the complete product and very often it has a clickable layout. The main function of the prototype is to
quickly test the idea with minimal cost. Usually, product designers create prototypes in Figma, Adobe
XD, Invision, or Framer.
 Design Thinking Process – testing
You may perform different types of testing. The main objective of this stage is to come to the final
conclusion that there are no bugs in the product, and it is ready for release.

Usability testing involves a user performing certain actions with the prototype (or product) and you
collect their feedback and see how prospects cope with different tasks, where they have troubles or
misunderstandings.

A/B testing means that you give different versions of your product to different users and collect
feedback. Then you have to compare the results to understand which version is more successful.
 Applying Lean Process

•Continuous improvement using Lean principles creates a better experience for

students, faculty, staff, and other customers. It also engages the people who
are doing the work in improving the work, resulting in more time spent on
interesting work, more even workloads, less fire-fighting, and less stress. In
addition, it creates value for the organization in the domains of financial,
operational delivery, quality, and experience and engagement.
 The 5 Key Concepts of Lean Process
Improvement
1. Identify Value
In a lean process solution, everything starts with value. What are your consumers willing to invest in?
Identifying the value for customers gives you a starting point at where you can eliminate excess waste
and activities within your manufacturing process, sales cycle, etc.

2. Stream of Value
Creating a visual value stream map is key to visualizing the workflow of your business. The mapping
represents key points within the purchase process and highlights stages from purchase to production to
delivery. This visual representation helps to better understand your business model and improve existing
processes.
 The 5 Key Concepts of Lean Process
Improvement
3. Flow
Once you’ve established value, it’s time to focus on the flow, or system practices. How does your
customer receive their goods or services? Can you streamline this process to increase efficiency? Be
mindful of how tasks move through your workflow and keep an eye out for any stages that may be
prone to bottlenecks. Creating a lean and smooth work process through lean manufacturing processes
will speed up the turnaround time between an order placed and delivery to the consumer.

4. Pull
Developing a pull system within your lean process solution reduces waste by decreasing overproduction
in your business. Production only commences when an order is placed, saving costs associated with
overhead and storage of excess inventory.
 The 5 Key Concepts of Lean Process
Improvement
5. Continuous Improvement
The lean process is just that — a process. Within a lean process solution, your organization is
continuously striving for perfection — developing plans, implementing improvements, and analyzing
results. The steps for Lean manufacturing are fluid and require support from all departments within your
business to achieve success.
 Six Sigma
Six Sigma is a method focused on improving business processes and performance by eliminating the
causes of errors that lead to defects in a product or service.

Motorola first adopted the methodology in the mid-1980s as a way of standardizing defect
measurement to drive improvements in manufacturing.
 Right Mindset for Innovation
Innovation requires more creativity and more willingness to take risks than the implementation of
typical projects. To successfully realize innovation projects, a different mindset is needed.
 Right Mindset for
Innovation

• Break the Rules!

•With traditional approaches and

conventional methods, you will often not
get anywhere in the field of innovation.
Challenge the status quo consistently! And
explore new paths off the beaten track.
 Right Mindset for
Innovation

• Collect ideas everywhere!

•Innovation projects constantly need new
ideas: To overcome obstacles, to change
concepts, and to optimize strategies.
 Right Mindset for
Innovation

• Believe in the impossible!

• Imagine how your innovation will look
like in reality. And believe that you will
be able to overcome all obstacles on the
way to realization.
 Right Mindset for
Innovation

• Put together an innovation team of

individuals with different perspectives
and thinking styles!
• Innovation needs the diversity of various
competencies and diverse ways of
thinking.
 The Different Types of Innovation
• Process improvement and organizational innovation: The improvement of processes through
continuous improvement and the development of new solutions.

• Product development: The development of innovative products or product features.

• Service innovation: The creation and introduction of new services for customers and partners.

• Business Model Innovation: The development of innovative business models and new revenue
streams.
 Process improvement and organizational
innovation
When we say process improvement, we’re talking about enhancing or adapting one or more specific
steps in a process. Usually this is done with the goal of making a process more efficient or generating
different results. An example of this could be having customers at an administration desk take a number
before their appointment, instead of checking in manually with a receptionist, or a different way of
packaging products before they’re displayed to the public.

Process Innovation is the act of creating an entirely new aspect of a process – or even overhauling the
process itself – to reach a different market, grow your business or disrupt a particular industry. An
example of this is the idea of using an app to access and pay for an Uber, instead of calling for a cab. Or,
for example, using software to deliver remote learning, as opposed to traditional on-campus education.
These are not just process re-works, they’re entirely new ways of providing service and reaching a client
base.
 Product Development

•Product development refers to the complete

process of taking a product to market. It also
covers renewing an existing product and
introducing an old product to a new market. This
includes identifying market needs,
conceptualizing the product, building the
product roadmap, launching the product, and
collecting feedback.
 Service innovation
The innovative application of thought to the delivery of utilities and services is known as Service
Innovation. Established programs can be enhanced, or entirely new services can be created.

• Consumer-centric: Service innovation focuses on identifying customer desires in order to make

services more user-friendly, sustainable, and meaningful. The consumer interface is the main priority.
• Holistic: The premise behind holistic Service Innovation is that the whole organization is engaged in
the process. As a result, the emphasis is not only on the customer-facing touchpoint, but also on
internal business procedures and staff who are critical to the service's operation.
• Interdisciplinary: Customers and staff collaborate in interdisciplinary, multi-disciplinary teams. The
team becomes engrossed in the challenge and tries out various ideas.
 Business Model Innovation
Business model innovation is the art of enhancing advantage and value creation by making
simultaneous—and mutually supportive—changes both to an organization’s value proposition to
customers and to its underlying operating model.

At the value proposition level, these changes can address the choice of target segment, product or
service offering, and revenue model. At the operating model level, the focus is on how to drive
profitability, competitive advantage, and value creation through these decisions on how to deliver the
value proposition:

• Where to play along the value chain

• What cost model is needed to ensure attractive returns
• What organizational structure and capabilities are essential to success
 Four Approaches to
Business Model
Innovation

•The reinventor approach is deployed

in light of a fundamental industry
challenge, such as commoditization or
new regulation, in which a business
model is deteriorating slowly and
growth prospects are uncertain. In this
situation, the company must reinvent
its customer-value proposition and
realign its operations to profitably
deliver on the new superior offering.
 Four Approaches to
Business Model
Innovation

•The adapter approach is used when

the current core business, even if
reinvented, is unlikely to combat
fundamental disruption. Adapters
explore adjacent businesses or
markets, in some cases exiting their
core business entirely. Adapters must
build an innovation engine to
persistently drive experimentation to
find a successful “new core” space with
the right business model.
 Four Approaches to
Business Model
Innovation

•The maverick approach deploys

business model innovation to scale up
a potentially more successful core
business. Mavericks—which can be
either startups or insurgent established
companies—employ their core
advantage to revolutionize their
industry and set new standards. This
requires an ability to continually evolve
the competitive edge or advantage of
the business to drive growth.
 Four Approaches to
Business Model
Innovation

•The adventurer approach

aggressively expands the footprint of
a business by exploring or venturing
into new or adjacent territories. This
approach requires an understanding
of the company’s competitive
advantage and placing careful bets
on novel applications of that
advantage in order to succeed in new
markets.
Four Approaches
to Business
Model Innovation
 Assignment:

•Create a customer journey map.

• Enrollment Process in DLSUD (CEAT) – during pre-

pandemic and after pandemic
• Product that you can buy in the FOOD SQUARE.