New Product Development

Entrepreneurship & Innovation

 Course Content
• Entrepreneurship & Innovation
• Opportunity Analysis
• New Product Development Process
 Who is Entrepreneur?
• Person
• keen & willing
• new idea/invention
• start a venture
• take risk
• force creative destruction/disruption

• CREATE NEW PATHS

eg of Entrepreneur
 Types of Risk/Uncertainity
• Measurable : all required information is available and the
probability and impact of risk can be determined.
• Ambiguity : some information is available; but not complete
and hence, probability can not be determined, impact can be.
• True Uncertainity : no information is available, neither
probability nor the complete impact can be determined. Dark
Tunnel
 Benefits of Entrepreneurship
• Financial Gains
• Increased jobs
• New Sectors, Industries
• Encourage more research
• Economic growth
 Traits of Entrepreneur
• Self-confidence
• Need to Control and Direct.
• Sense of Urgency.
• Comprehensive Awareness
• Realistic Outlook
• Conceptual Ability
• Low Need for Status
• Objective Approach
• Emotional Stability
• Attraction to Challenges
• Describing with Numbers.
• Good health
 Catalysts for Entrepreneurship
• What factors are required for entrepreneurship/entrepreneur
to flourish?
– Availability of Innovative Ideas
– Access to capital (at affordable cost)
– Conducive environment (PEST) to support innovation and
risk
– Competence of entrepreneur
 Entrepreneurial Style of Management
• How can large organisations work like entrepreneurs?
– Innovation drive to be high
– Create independent units, companies for innovations
– Encourage risk taking ; avoid penalizing risk
– Hire entrepreneurial people
 Innovation

New way of doing something (product/process/thinking)

– Incremental
– Radical or revolutionary

Invention: an idea made manifest and

Innovation: ideas applied successfully.
 Goals of Innovation
• Creation of new markets
• Extension of the product range Increase Revenue
• Replacement of products/services
• Improved quality
• Reduced labour costs
• Improved production processes Decrease Cost
• Reduced materials
• Reduced energy consumption
• Reduced environmental damage Meet Social /legal
permission
• Conformance to regulations
 Sources of Innovation
• R&D : breakthrough research, inventions.
• On the job : mostly incremental
• User needs
 Sources of Innovation
Internal(to co./industry) External
• Unexpected event • Demographic change
• Incongruity • Changing perceptions
• Process need /values / beliefs
• Change in industry • New Knowledge /
technology
 Linear model of Innovation

The Linear Model of Innovation is an early model of innovation that

suggests technical change happens in a linear fashion from
Invention to Innovation to Diffusion.

R&D (scientific research) has a priority as the basis of innovation,

and plays down the role of later players in the innovation process.
 Diffusion of Innovation

Innovations may spread from the

innovator to other individuals and groups

Has a Life Cycle – ‘S’ shaped diffusion

curve

Growth is slow at the start

Increases rapidly with wider adoption
Plateaus or declines after most users
have adopted.

Next innovation in same arena may lead

to decline

Constant innovations needed –

successive ‘S’ curves