PROMOTING INNOVATION
PRESENTED BY
AADIL NAVEED
AHSAN NAEEM
2013(FALL)-MBA E-004
2013(FALL)-MBA E-016
PRESENTED TO
DR. NADEEM A. MUFTI

Innovation (Definition)
The meaning in dictionary
The word innovation comes from the Latin root
innovatus, which means "to renew or change."
Innovation generally refers to the creation of
better or more effective products, processes,
technologies, or ideas that are accepted by
environment.

Different definitions for Innovation
“A new idea, method or device”
“A Change that creates a new dimension of performance”
“Creativity with a job to do”
“Creating value by implementing new ideas”
“Anything that provides a new perceived benefit to a
customer or employee”

SOME QUOTES
“The business has…two basic functions: marketing and innovation.
Marketing and innovation produce results; all the rest are costs”
Peter Drucker
(Business Writer)
“Business has only two functions - marketing and innovation”
Milan Kundera
(Business Writer)
“Innovation is the central issue in economic prosperity”
Michael Porter
(Professor at Harvard Business School)

INNOVATION VS CREATIVITY
INNOVATION
CREATIVITY
Innovation is converting
creative ideas into desired
outputs.
Creativity is the generation of
new ideas.
INVENTION TO INNOVATION
Invention is the creation of a new idea or concept, but
innovation is turning that new concept into commercial success
or widespread use.

INNOVATION PROCESS
Championing
& roll out
Ideas
generation
Reflecting
&
evaluating
Sharing &
refining
Implementing
on a
small-scale
(trial)

TOTAL INNOVATION MANAGEMENT (TIM)
FRAMEWORK & CHARATERISTICS
STRATEGY:
Organizational strategy should be developed timely
and kept in dynamic balance.
TECHNOLOGY:
Technology innovation is the key source for
enterprises to accumulate core competence and
accordingly to obtain the competitive sustainable
advantage.
MANAGEMENT:
This refers to the innovation of managerial theory,
thought, paradigm, mechanism, and tools.

TOTAL INNOVATION MANAGEMENT (TIM)
FRAMEWORK & CHARATERISTICS
ORGANIZATION:
Organizational structure must be adjusted
correspondingly according to the demand of
innovation.
CULTURE:
Changes in mind set and culture is the prerequisites
to carry out all innovation. In 3M for instance
there is a strong innovative culture to encourage
innovation and tolerating failures.
SYSTEM:
System innovation means the innovation of rules
and regulations about enterprise’s routine,
performance evaluating, staff rewards and
punishments, salary system, training and
promotion and so on.

TOTAL INNOVATION MANAGEMENT (TIM)
FRAMEWORK & CHARATERISTICS
MARKET:
Market innovation means the
innovation
of
marketing
channel,
the
operational
ways, by which to create new
market, new channel and new
ways.

SOME OF TIM FORMATION TOOLS

INNOVATIVE LEADERSHIP
“Innovation distinguishes between a leader and a follower”
Steve Jobs
It includes three different stages, which are all dynamic and
iterative:
1. Idea Generation
2. Evaluation
3. Implementation

HOW TO LEAD INNOVATION ?
Tips for Introducing Innovation
 Create an Innovation Team to search, seek and find
 Promote an Innovation Champion
 Develop an Innovation Database for everyone to access
 Take and reward risks and be different - Innovation is a ‘whole
of organisation’ issue.
 Create value by challenging existing processes and practices
Things to Avoid
 Don’t use traditional structures and processes to promote
innovation
 Don’t turn staff suggestion schemes into an innovation
process
 Beware the power of the intranet to galvanise staff

HOW TO LEAD INNOVATION ?
Signs That Things are Working Well
 Staff ring you with ideas
 Customer satisfaction increases
 Best practice is synergistic with organizational culture
Make Innovation a Business Driver
 Innovation becomes part of the business planning framework
 Teams must address innovation in their business plans and
outcomes remain high profile

HOW TO LEAD INNOVATION ?
Methods of Achieving Commitment
 Run annual forums showcasing what’s new, what’s different
 Promote people and their ideas through the use of
promotional material
 Allow people to present their ideas to Executive
committees (help and support them in their endeavour)
Ways to Measure Innovation/Creativity
 Measure the number of new ideas that make a difference
to business outcomes
 Monitor customer satisfaction and record number of
opportunities actioned

LEADERSHIP/MANAGEMENT
STRATEGIES
 Develop, Foster & Maintain Trust
 Lead by Example – Walk the Talk
 Inspire & Rebel
 Slaughter Sacred Cows
 No Intellectual Snobbery
 Challenge the Process
 Spread Information
 Lever on Type (MBTI)

LEADERSHIP

STEVE JOBS
 An American entrepreneur, marketer, and inventor who
was the co-founder, chairman and CEO of Apple
Inc.(since 1976).
 In 1985, Jobs left Apple and founded NeXT, a computer
platform development company specializing in the
higher-education and business markets.
 In 1996, after Apple had failed to deliver its operating
system(Copland) Gil Amelio turned to NeXT Computer,
and the NeXTSTEP platform became the foundation for
the Mac OS X.
 Jobs returned to Apple as an advisor, and took control
of the company as an interim CEO. Jobs brought Apple
from near bankruptcy to profitability by 1998.

JOB’S RETURN TO APPLE INC.
 In 1996, Apple announced that it would buy NeXT for
$427 million bringing Jobs back to the company he cofounded.
 In March 1998, to concentrate Apple's efforts on
returning to profitability, Jobs terminated a number of
projects such as Newton, Cyberdog and OpenDoc.
 Many employees developed a fear of encountering
Jobs while riding in the elevator, "afraid that they might
not have a job when the doors opened.
 Reality was that Jobs's summary executions were
rare, but a handful of victims was enough to terrorize a
whole company.

JOBS’S TENURE
 Jobs oversaw the development of the iMac, iTunes,
iPod, iPhone, and iPad and on the services side, the
company's Apple Retail Stores, iTunes Store and the
App Store.
 The success of these products and services provided
several years of stable financial returns, and propelled
Apple to become the world's most valuable publicly
traded company in 2011
 He has been referred to as "legendary", a "futurist" or
simply "visionary", and has been described as the
"Father of the Digital Revolution", "master of
innovation", "the master evangelist of the digital age”
and a "design perfectionist“

JOBS INTRUCES iPHONE
 On June 29, 2007 Apple’s introduction
of the iPhone, a multi-touch display
cell phone which also included the
features of an iPod and with its own
mobile browser revolutionized the
mobile browsing scene.
 While stimulating innovation, Jobs also
reminded his employees that "real
artists ship"
Jobs on stage at Macworld
Conference & Expo, San
Francisco, January 11, 2005

JOBS’S MANAGEMENT STYLE
 JOBS was a perfectionist and people remember him as
aggressive and demanding personality.
 JOBS had great decision making ability and immediately
shut downed the projects which he thought were not
worthy.
 JOBS was a big time competitor and once had a public
war of words with Dell Computer CEO Michael Dell, in
1987 when Jobs first criticized Dell for making "uninnovative beige boxes".
 JOBS was very mobile socially and most of the time he
introduced the Apple Inc. products himself although he
was the CEO.

HOW LEGEND IS REMEMBERED ?
Apple CEO Tim Cook noted, "More so than any
person I ever met in my life, [Jobs] had the ability
to change his mind much more so than anyone
I’ve ever met... Maybe the most
underappreciated thing about Steve was that he
had the courage to change his mind."
Daniel Kottke, one of Apple's earliest employees
and a college friend of Jobs', stated that
"Between Woz and Jobs, Woz was the innovator,
the inventor. Steve Jobs was the marketing
person.”

JOBS’S RESIGNATION
 In August 2011, Jobs resigned as CEO of Apple due to Metastatic
Insulinoma which later was the cause of his death.
 But remained with the company as chairman of the company's
board. Hours after the announcement, Apple Inc. (AAPL) shares
dropped five percent in after-hours trading.
 According to Forbes (Business Magazine) the impact was felt in a
negative way beyond Apple, including at The Walt Disney
Company where Jobs served as director. In after-hours trading on
the day of the announcement, Walt Disney Co. (DIS) shares
dropped 1.5 percent

APPLE VS SAMSUNG
 Since Tim Cook took over as CEO in 2011, Apple has
become more of an iterator rather than an innovator
 Apple rumor mill has forecast (wrongly) the imminent
arrival of the iWatch and the iTV, while Samsung has
brought these products to market, with the Galaxy Gear
and Smart TV.
 Samsung successfully conveyed the message “We are the
first to introduce” although they are not flawless.
 Former Apple CEO John Sculley about Samsung “Product
design, marketing and complex supply-chain
management are the trifecta of success in consumer
electronics. Excelling at all of them simultaneously is a
rare feat, much like throwing a no-hitter in baseball”

CEO & LEADERSHIP
Samsung has not just one but three CEOs. Dr.
Kwon is the Chairman and Lead CEO of
Samsung
Jobs said about Tim Cook (Apple CEO) “Tim is
not a product person”
Currently Samsung leadership has more
momentum they are executing at speed,
picking up customers, gaining market share
and widening product range.

SAMSUNG CLOSING THE GAP

SAMSUNG SPENDING ON
ADVERTISING
 Samsung making a dent despite Apple’s dedicated
customers and developed market.
 One of every three smartphones purchased is under
from Samsung
 Samsung spends a bigger chunk of its annual revenue
on advertising and promotion than any other of the
world's top 20 companies by sales = 5.4%, according to
Thomson Reuters data.
 Apple spends just 0.6% and General Motors 3.5%.
 Apple may sit in top position now, but has lost its mojo
over the last couple of years through lackluster product
releases and perceived lack of innovation.

TIM COOK HOPES FOR iPAD
CHRISTMAS
• Graph from Business Insider shows that, for
the last two quarters, Samsung’s profits were
actually higher than Apple’s
• Having settled into a pattern of releasing new
iPhones and iPads in September/October,
Apple is now highly reliant on the holiday
quarter in Q4
• Tim Cook may have a point when he said, “I
think it’s going to be an iPad Christmas.”

NECK AND NECK

SUMMARY
 So overall today they seem to be neck and neck the growth of
Samsung seems to be steadier and more sustained.
 We’re all fascinated by Apple, but so much of what we hear turns
out just to be rumors. Right now it remains a profit generating
machine, but long-term that will change if it fails to recapture the
public imagination.
 Samsung has weathered years of legal action, and having initially
copied parts of the Apple playbook, it is now starting to innovate
into new areas.
 My head currently says the 3 mystery CEOs of Samsung will prevail,
but my heart really wants Apple to come back and leapfrog them,
with innovation that changes our lives again.
 Maybe in future both will remain big beasts, and we will have an
Apple and Samsung duopoly.