Intro to Markets and Innovation Theory_Tara Day 1

1 | Conrad Overview |

Business Leadership Program August 3rd, 2015

Innovation & Entrepreneurship


Day 1: Creating Innovative Ideas 1


About Tara Scanlan B.I.B (Hons.), MBET


Cold Introductions

The name is Bond, James Bond

I work for Her Majesty’s Secret Service

I’m on an important mission to …

----

My name is ……

I am from …

Entrepreneurship & innovation to me means…


Innovation


Innovation Defined

• A new way of doing things • A better way of doing things (Wong, S.K.S (2013))

• Offer consumers a better and cheaper way to do something (a Big Bang Disruptor) (Forbes 2014)

• The process of translating an idea or invention into a good or service that creates value or for which customers will pay (Business

Dictionary)

7 | Conrad Overview | Retrieved from Sparkes D, BET 607 Slides (2013)


Innovation Defined Continued

• “An idea must be replicated at an economical cost and satisfy a specific need … processes and/or applications” (Business Dictionary)

• Two categories of innovation: – Evolutionary innovations (continuous or

dynamic innovation): incremental advances – Revolutionary innovations

(discontinuous innovations): disruptive and new


What Makes a Technology Disruptive?

• Has the technology evolved (is the dominant design/infrastructure) in place?

• Is the market ready for the technology?

– Creation of a market and the change (destruction) of another

• How much learning do customers need?


Disruptive Innovation Examples


Incremental Innovation Examples

04/18/23

11


Incremental Innovation Example …



Innovation Defined Continued …

• Innovation Output depends on the inputs: R&D expenditures and firm characteristics (size, group, team) and government policy (P.

Blanchard et al, (2012))

• Internal: Knowledge, Resources, Finance & Market Access

• External: Policy, Market


INNOVATION CURVE

Where the Market comes

in!

population distribution

Chang, W Pivot Consulting 2013


Markets


What types of Markets exist?


Markets Defined

• “A medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange. Price is determined by a number of factors (supply and demand)” (Investopedia)



Perfectly Competitive Markets

• Must be more than a single buyer or seller• Buyers and sellers have equal access to information• Products are comparable • Democratic government acts as a referee (balance the

market)• Easy entry • No Market Power• Information Available


Perfectly Competitive Market Examples


Monopoly

• Single seller and multiple buyers

• Market prices may be distorted by a seller or sellers with monopoly power

• Can reduce efficiency

• Negotiation power distorted

• Government controlled markets

• IP is important here


Monopoly Examples


Oligopoly

• Few Sellers, Many Buyers – 4 firms control 40%+ of market

• Homogenous (same) or Differentiated Products • High barriers to entry • Interdependence

– Price rivalry – Advertising – Development


Examples


Within markets, are organizations


Private Industry

• For Profit: business or organization whose primary goal is making money (a profit) (business dictionary)

– Corporation– Partnership– Sole Proprietor

• Not for Profit: Primary goal to help communities and is concerned with money that will keep the organization operating (business dictionary)

• Cooperative: owned and run jointly by its members, with profits or benefits shared among them (Oxford Dictionaries)

• Charity: an organization set up to provide help and raise money for those in need (Oxford Dictionaries)


What type are markets are these products in?


What type of Market is this?


What Type of Market is This?


What market is this?


What type of market is this?


Exercise


Break into groups

• Using magazines identify:– Innovative products

• Disruptive• Incremental

– Market (Monopoly, Oligopoly, Perfectly Competitive)

• 1-2 minute presentation on one market and one disruptive innovation and one incremental innovation


Conclusion


What do companies need to stay competitive?


Conclusion

• Innovation is Internal and External to an Organization

• Companies need to:

– Anticipate

– Adapt

– Achieve

• Think about the context of the problems you are solving!


Kitchener/Waterloo

You are in the heart of innovation & technology in Canada!


Homework• Write:

– Find an example of an innovative product in Japan and define the type of business entity, and industry. Email it to me, 100 word limit.

• Videos: – http://www.ted.com/talks/tim_brown_urges_designers_to_think_

big#t-100502


My email

[email protected]

Intro to Markets and Innovation Theory_Tara Day 1

Education