Chapter Objectives
1.! Explain Innovation and its importance to entrepreneurship; 2.! Identify the different type of innovation. 3.! Differentiate between innovation and invention; 4.! Explore the Global Innovation Index; 5.! Identify the most innovative firm in the world; 6.! Explore the local innovative company; 7.! Understand the innovation success & failures;
INSPIRING CREATIVE AND INNOVATIVE MINDS
Chapter Objectives
8.! Explain the failure in innovation; 9.! Understand how innovation can be promoted 10.! Explore the relationship between innovation and creativity 11.! Identify the five steps in the creative process
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A new idea, method or device The process of making improvements by introducing something new The process of translating new ideas into tangible product The successful exploitation of new ideas A creative idea that is realized Change that creates a new dimension of performance
Invention is the first occurrence of an idea for a new product or process Innovation is the first attempt to carry it out into practice. Actualization or realization of an invention whether it be a societal benefit, commercialization, market entry or monetization
29. Boeing 25. Autodesk 22. IBM 21. Timberland 19. Tesco 18. HP 15. Samsung 14. Disney 11. Procter & Gamble
10. Nintendo (1889) 9. Amazon (1994) 8. Alibaba (1999) 7. Nokia (1865) 6. Nike (1964) 5. Ideo (1991) 4. GE (1878) 3. Facebook (2003) 2. Apple (1976) 1. Google (1998)
20. Disney 19. GE 18. IBM 17. Cisco 16. BYD 15. Sportify 14. Intel 13. Nike 12. Neflix 11. Hulu
10. HP 9. Wallmart 8. Novartis 7. PG&E 6. First Solar 5. Huawei 4. Google 3. Apple 2. Amazon 1. Facebook
Story of Airasia
Story of Airasia
! Seven years ago, Fernandes paid 25 cents for a near-defunct carrier with two creaky planes and $12 million in debt. Today, AirAsia is one of the world's fastest-growing, most profitable carriers, making its name - and money - by defying industry convention and democratizing air travel. ! AirAsia is innovative down to its corporate bones. Most passengers think of it as one carrier, but it's actually a co-branded collection of several, a unique structure Fernandes devised to allow AirAsia to set up hubs in three countries (Malaysia, Thailand, and Indonesia). It built its brand in part by being surprisingly cheeky; when AirAsia began flying from Singapore to Bangkok in 2004, Fernandes ran full-page newspaper ads taunting Singapore Airlines' famed Singapore Girl flight attendants: "There's a new girl in town: twice the fun, half the price.
INSPIRING CREATIVE AND INNOVATIVE MINDS
Story of Airasia
! But mostly it's been known for its frugality. AirAsia's operating costs are the lowest of any airline in the world, and so are its fares. One -way specials for as little as $3 have opened the skies to new travelers. Says Yap Choo Ying, who runs a market stall in eastern Malaysia and now regularly jets to Kuala Lumpur to see her grandkids: "It's like our bus." ! Now that bus is going farther than ever. In 2008, AirAsia did what no low-cost, short-haul carrier has dared to do - not Ryanair, not Southwest, not easyJet: it went long-haul, adding flights to Australia. Industry analysts have repeatedly questioned the viability of that venture, but AirAsia says that business will break even before the end of '08. This year, it will also expand in China and India, two markets experiencing booming growth in air travel -- and massive numbers of people who have yet to take to the skies.
INSPIRING CREATIVE AND INNOVATIVE MINDS
Apple Innovation
What made the iPod truly innovative was its combination of aesthetic design, elegant ergonomics and ease of use. Also, there was the creation of the iTunes that enabled listeners to integrate with their iPod. It is the combination of all these elements that made the iPod truly innovative
Innovation Success
INSPIRING CREATIVE AND INNOVATIVE MINDS INSPIRING CREATIVE AND INNOVATIVE MINDS
2003 ! Most Competitive Company ! Malaysia Book of Records ! Superbrand of Malaysia 2004 ! SMI Brand Builder of The Year ! Excellent Food Award 2005 ! Product Excellence Award ! Most Promising Franchiser ! Malaysia Best Halal Restaurant ! Most Promising Franchiser ! SMB Brand Building Award
2006 ! Indonesias Best Restaurant ! Golden Bull Award ! Enterprise 50 Award ! SMB Brand Building Award ! BestBrand Food & Beverage Cafes ! Best Local Restaurant Chain 2007 ! International Franchisor of the Year ! Franchise of the Year ! Homegrown Franchise of the Year ! Best Sales Growth Award ! Best Brand Food & Beverage Cafe ! TOP TEAM 50 Enterprise Award ! Best Casual Dining Restaurant
Innovation Failure The Millenium Dome The concept behind the Millennium Dome wasn't bad. The beginning of another millennium is a pretty big deal, so why not celebrate it in a very expensive new building at the exact location where the millennium began? Only one problem -- no one was interested in going.
Success or Failure?
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Innovation
! bringing the ideas to life ! occurs in the organisational and societal context.
INSPIRING CREATIVE AND INNOVATIVE MINDS
Creativity
! is the process of generating a novel or useful ideas ! Opportunity recognition may be, at least in part, a creative process ! For an individual, the creative process can be broken down into five stages, as shown on the next slide.