Innovation and Open Innovation by Inno Garage
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Handling innovation is never easy. Companies try to contain the sources of innovation by not allowing the "outsiders" to enter company affairs. We are here to present our academic view on Open Innovation and how it will help in taking your company to the next level. Inno Garage is one of the foremost consultancies on offering open innovation, crowdfunding and crowdsourcing ideas. To know more about our services, have a loot at http://www.innogarageconsulting.com/2014/02/crowd-sourcing-solutions.html http://www.innogarageconsulting.com/2013/10/battle-test-your-innovation-strategy.html
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Innovation and Open Innovation by Inno Garage
- 1. Innovation and Open Innovation An Academic Take by Phani Malloju Inno Garage Consulting
- 2. About Inno Garage Inno Garage is a consulting company with over a decade’s expertise in the areas of branding, innovation and corporate strategy and has served with over 2000 clients We have supported various companies across the globe on their innovation practices and helped in executing open innovation startegy.
- 7. Invention and Innovation Sustainable Business Business Product Technology Idea
- 8. Invention and Innovation Sustainable Business Business Product Technology Idea
- 9. Diffusion of Innovations Developed by Everett Rogers Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system.
- 10. Adoption of Innovation Step Process RANKING MUNDIAL DE USUÁRIOS DE INTERNET Person becomes aware of an innovation and has Knowledge 1º 2º 3º Persuasion Decision Implementation Confirmation 4º 5º some idea of how it functions 6º Person forms a favorable or unfavorable attitude toward the innovation Person engages in activities that lead to a choice to adopt or reject the innovation Person puts an innovation into use Person evaluates the results of an innovationdecision already made
- 11. Adoption of Innovation over time
- 12. Adoption of Innovation over time
- 13. Adoption of Innovation over time
- 15. 5 Critical Factors in Innovation Diffusion Relative advantage Adoption probability grows if innovation has clear 1º 2º 3º Compatibility Complexity of transition Possibility of testing Visibility of benefits 4º 5º 6º advantages for product, service or current behavior The more innovation is consistent with pre-existing higher the adoption probability Complex changes involved in innovation, reduce adoption likelihood A chance to try an innovation before making a final decision increase adoption likelihood The more obvious innovation benefits the greater adoption likelihood
- 16. Innovation Following Joseph Schumpeter’s 1934 book “The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle” innovation is distinguished from invention by the fact that innovation is usually applied successfully in practice.
- 17. Innovation - Diffusion When innovation occurs, innovations may be spread from the innovator to other individuals and groups. This process has been proposed that the life cycle of innovations can be described using the 's-curve' or diffusion curve. The s-curve maps growth of revenue or productivity against time.
- 18. Innovation - Diffusion In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point customers begin to demand and the product growth increases more rapidly. New incremental innovations or changes to the product allow growth to continue. Towards the end of its life cycle growth slows and may even begin to decline. In the later stages, no amount of new investment in that product will yield a normal rate of return.
- 19. Innovation - Diffusion The s-curve derives from an assumption that new products are likely to have "product Life". i.e. a start-up phase, a rapid increase in revenue and eventual decline. But in fact the great majority of innovations never get off the bottom of the curve, and never produce normal returns.
- 20. Innovation - Diffusion Innovative companies will typically be working on new innovations that will eventually replace older ones. Successive s-curves will come along to replace older ones and continue to drive growth upwards. In the figure above the first curve shows a current technology. The second shows an emerging technology that current yields lower growth but will eventually overtake current technology and lead to even greater levels of growth. The length of life will depend on many factors.
- 21. Open Innovation Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology”. The boundaries between a firm and its environment have become more permeable; innovations can easily transfer inward and outward.
- 22. Open Innovation The central idea behind open innovation is that in a world of widely distributed knowledge, companies cannot afford to rely entirely on their own research, but should instead buy or license processes or inventions (e.g. patents) from other companies. In addition, internal inventions not being used in a firm's business should be taken outside the company (e.g., through licensing, joint ventures, spin-offs)
- 26. Open Innovation Idea Generation Develop New ideas Selection Execution Commercialization
- 27. Open Innovation Idea Generation Ideas and innovations from inside the organisation Develop New ideas patents and innovations from outside the organisation Selection Execution Commercialization
- 28. Open Innovation Idea Generation Ideas and innovations from inside the organisation Develop New ideas patents and innovations from outside the organisation Selection Execution Commercialization
- 29. Open Innovation Idea Generation Selection Develop New ideas Select Successful Ideas Ideas and innovations from inside the organisation patents and innovations from outside the organisation Execution Commercialization
- 30. Open Innovation Idea Generation Selection Develop New ideas Select Successful Ideas patents and innovations from outside the organisation Technology Licensing IN Ideas and innovations from inside the organisation Execution Commercialization
- 31. Open Innovation Idea Generation Selection Develop New ideas Select Successful Ideas patents and innovations from outside the organisation Technology Licensing IN Ideas and innovations from inside the organisation Execution Commercialization
- 32. Open Innovation Idea Generation Selection Execution Develop New ideas Select Successful Ideas Prototypes and Production patents and innovations from outside the organisation Technology Licensing IN Ideas and innovations from inside the organisation Commercialization
- 33. Open Innovation Idea Generation Selection Execution Develop New ideas Select Successful Ideas Prototypes and Production IP Licensing OUT IP Licensing IN patents and innovations from outside the organisation Technology Licensing IN Ideas and innovations from inside the organisation Commercialization
- 34. Open Innovation Idea Generation Selection Execution Develop New ideas Select Successful Ideas Prototypes and Production IP Licensing OUT IP Licensing IN patents and innovations from outside the organisation Technology Licensing IN Ideas and innovations from inside the organisation Commercialization
- 35. Open Innovation Idea Generation Selection Execution Commercialization Develop New ideas Select Successful Ideas Prototypes and Production Product brought to market IP Licensing OUT IP Licensing IN patents and innovations from outside the organisation Technology Licensing IN Ideas and innovations from inside the organisation
- 36. Open Innovation Idea Generation Selection Execution Commercialization Develop New ideas Select Successful Ideas Prototypes and Production Product brought to market Technology Spin-offs IP Licensing OUT IP Licensing IN patents and innovations from outside the organisation Technology Licensing IN Ideas and innovations from inside the organisation
- 37. Crowdfunding
- 38. The Status Quo Venture capital difficult to find for smaller requirements Debt finance hard to come by Business angels – limited investments Typically a syndicate each investing £10k - £100k What if there was a way to have say 5000 angels each investing £10? What if anyone could become a business angel?
- 39. Crowdfunding • Crowdfunding is an approach to raising the capital required for a new project or enterprise by appealing to large numbers of people for small donations • Crowdfunding examples • Kiva.org - $325m funding raised, >777,000 lenders, ~800,000 entrepreneurs • Kickstarter.com – >24,000 projects funded, > $250m pledged todate, 2m people have pledged
- 41. Three Types of Crowdfunding Donations, Philanthropy and Sponsorship where there is no expected financial return Kickstarter, IndieGoGo, RocketHub, Faithfunder, CharitySub, ChipIn, Catchafire 1. Lending/Borrowing KIVA, RateSetter, Funding Circle 1. Investment in exchange for equity, profit or revenue sharing Profounder, AppBackr, PeerBackers, Quirky, GrowVC 1.
- 42. Fast Growing Retail Business Funding Circle is a UK clearinghouse for semianonymous lenders and borrowers (bank) Primarily for expanding existing small businesses Variable loan rates/term Average return 8.3% Funding Circle does the credit check, rates risk Lender amounts small $40 million in transactions
- 43. Common Crowdfunding Mistakes 1. 2. 3. 4. 5. 6. 7. Asking for Too Much… or Too Little A Bad Promo Video: too long, not clear on the benefits, no humour, no excitement No Clear Itemized Budget Poor or Overpriced Perks Failing to Promote Your Project to Your Social Media Network Failing to Inspire - No Good Story or Hook Giving Up Too Early
- 44. Lets Take the Discussion Further Our team is always ready to deal with the innovation issues in your company. Please feel free to call us up or drop a mail: Inno Garage No 32, Janapriya Enclave, LB Nagar, Hyderabad 500068 info@innogaragebranding.com team@innogaragebranding.com 91 40 64561365 91 880 1889344 www.innogarageconsulting.com
Editor's Notes
- Kiva - Despite being only 39 months old it has raised over $87m, funding over 213,000 entrepreneurs. They have over 500,000 lenders worldwide. Ebbsfleet United Football Club was bought by approximately 26,000 people each paying £35 - £910,000 Zopa - have over 300,000 members and total disbursals have reached £50m.