Innovation and Entrepreneurship

Innovation and entrepreneurship – Presentation  by Venkatesh Sarvasiddhi

  1. Misconceptions about Innovation
    • Primary misconception – innovation mainly technological
    • New, novel, creative
    • Innovation often confused with invention
    • Discovery – Invention – Innovation
    • Innovation can be managerial, legal, political
  2. Innovation – Definition 1
    • Innovation is an endeavour which produces a significant leap in the cost to benefit ratio
    • Costs and benefits are defined in comprehensive ways
    • Costs: monetary, difficulty, inconvenience, physical risk
    • Benefits: Money, pleasure, health, fun, convenience
  3. Innovation – Examples
    • Optical communication systems – bandwidth vs cost
    • Flexible Manufacturing Systems: choice vs cost
    • Web-enabled processes: customer satisfaction vs cost (FedEx example)
    • ATM Machines: convenience vs cost
  4. Non-technological Innovations
    • Productivity Innovation: Ford cars (assembly line)
    • Marketing innovation: Frequent Flier programs (Sticky customers, avoiding customer churn)
    • Pricing innovation: Web-services model
    • Branding innovation: Kingfisher Airline ?
    • Legal Innovation: Patents, Limited liability companies
    • Financial innovations: insurance, mutual funds, installment buying, home loans, credit cards, derivatives (futures and options), mortgage-backed securities
  5. Innovation – Major and Incremental
    • First time introduction – a whole new market created – SONY walkman, Dial-up modems (using phone lines to send and receive data)
  6. Innovation – Definition 2
    • Innovation endows resources with new capacity to deliver
    • Economics – Resources are scarce and limited
    • Progressive societies efficiently allocate resources to the most promising activities
    • Production Possibility Frontier
Spread the love