An analysis of the article "The New Patterns of Innovation" by Rashik Parmar, Ian Mackenzie, David Cohn and David Gann

1. Internship on Data Analytics
with Managerial Applications
under Prof. Sameer Mathur, IIM
Lucknow
Submitted by
Chandrasekar V, NIT Trichy

2. Week 4, Day 2 – 23rd January, 2018
Task 3: Analysis of the article ‘The New
Patterns of Innovation’.
• Q1) List the two most (important /
interesting / informative) insights from this
article?
• Q2) Why and how are these insights relevant
to a manager in India?

3. Q1) List the two most (important /
interesting / informative) insights
from this article?
A1) 1st Insight:
The 4 basic frameworks in the search for
business innovation ideas.

4. THE 4 BASIC FRAMEWORKS IN THE
SEARCH FOR BUSINESS INNOVATION
IDEAS
• Search for new business ideas and models
is hit-or-miss in most corporations.
• One explanation - Managers skilled at
executing clearly defined strategies are ill
equipped for out-of-the-box thinking.

5. THE 4 BASIC FRAMEWORKS IN THE SEARCH
FOR BUSINESS INNOVATION IDEAS
• One is a competency based framework, which
focuses on building on the existing capabilities
and assets to enter new businesses and
markets.
• Another is customer focused framework,
where study of customers’ behavior gives
details about their unmet needs

6. THE 4 BASIC FRAMEWORKS IN THE SEARCH
FOR BUSINESS INNOVATION IDEAS
• Third one addresses changes in the business
environment, as in looking at the future
business opportunities by following the
“megatrends” or other shifts.
• The fourth approach complements the
existing frameworks but focuses on
opportunities generated by the explosion in
digital information and tools.

8. Q1) List the two most (important /
interesting / informative) insights
from this article?
2nd Insight:
The 5 patterns that facilitate the hunt
for new business value.

9. PATTERN 1: AUGMENTING PRODUCTS TO
GENERATE DATA
• Advances in wireless communications and big
data have made it feasible to gather and
process large chunks of data.
• Those data can be used to improve the design,
operation, maintenance, and repair of assets
or to enhance how an activity is carried out.

10. PATTERN 1: AUGMENTING PRODUCTS
TO GENERATE DATA
• Such capabilities, in turn, can become the
basis of new services or new business models.
• Some of the classic examples are Rolls-Royce
engines for aircrafts, SKF’s intelligent bearings,
etc.

11. PATTERN 2: DIGITIZING ASSETS
• As mobile technologies continue to fuel the
trend of digitization, more creative businesses
will generate their own enhanced services or
new business models.
• Digitized versions of physical assets are
transforming the way people operate in
industries.

12. PATTERN 2: DIGITIZING ASSETS
• As more assets become digitized, the
expectations of shifting of competitive
advantage keep increasing.
• Digitization slashes distribution costs and
makes the ability to move physical
inventory efficiently or secure favorable
store locations less critical.

14. PATTERN 3: COMBINING DATA
WITHIN AND ACROSS INDUSTRIES
• The science of big data, along with new IT
standards that allow enhanced data
integration, makes it possible to coordinate
information across industries or sectors in
new ways.
• The example referring to Bolzano city in Italy,
describes this perfectly.

15. PATTERN 4: TRADING DATA
• The ability to combine disparate data sets
allows companies to develop a variety of new
offerings for adjacent businesses.
• The illustration of Vodafone and TomTom
partnership for tracking their customers’
vehicles’ speed and pin-pointing the traffic
jams, was inspiring in many ways.

16. PATTERN 5: CODIFYING A DISTINCTIVE
SERVICE CAPABILITY
• Now companies have a practical way to take
the processes they’ve perfected, standardize
them, and sell them to other parties.
• Any process that is best-in-class, but not
central to a company’s competitive advantage,
can be turned into a profitable business.

17. Q2) Why and how are these insights
relevant to a manager in India?
• Managers need to understand that there is an
unavoidable need for innovations in business.
• Innovative ideas upon execution can help the
company gain huge amount of profits.

18. Q2) Why and how are these insights
relevant to a manager in India?
• Managers need to think out-of-the-box, which
can have a wider reach to the public.
• So, they need to follow the 5 steps of
framework for the betterment of their
organization.

19. THANK YOU