Lesson 1: What Is Innovation? 13 min.
Find out the who, what and why of creating innovative technologies. Understanding what is innovation and how to create it is vital for improving your business idea as well as executing it.
Lesson 1.1
What Is Business Innovation?
Learn the fundamentals of business innovations. Debunk common misconceptions and find out how you can innovate your business model.
8 min.
Lesson Notes
Many large companies missed the opportunity of leaving their successful model when the time calls for it.
Today’s success is the enemy of tomorrow’s success
Innovation either increases customer value or decreases the cost for customers
3 myths about innovation
1. Innovation stems from ideas no one has before
2. Big success requires big resources
3. Innovation are based on fascinating technology
Successful innovators combine while pioneers get eaten by wolfs
Razor and Blade Pattern
Gillette sold their razors for next to nothing but blades at high costs. Nepresso followed this model with cheap coffee machines but expensive coffee.
How to innovate your business model
1. Innitiation
2. Ideation
3. Integration
4. Implementation –
Rules when implementing iterations
1. only implement 1 business model at a time
2. Clearly communicate the business model
3. Don’t overemphasize short term KPIs
4 . Get top management commitment
5. Overcome the not-invented-here syndrome
Lesson 1.2
Understanding Disruptive Innovations
Learn about what innovation is and what it means to be disruptive.
2 min.
Lesson Notes
Big players = sustainable innovation (attract higher paying customers)
Small Companies = disruptive innovation (low cost alternatives)
Example: Steel mill first started with rebar then shifted to sheet stee, stealing business from large steel mill
Car makers like Toyata and Hyundai, started making economy models.
For large companies to succeed, they need to treat their separate low cost branch as a different unit with different model and growth expectation
Lesson 1.3
Four Ways To Think Like An Innovator
FInd out what makes an innovator different from others and what makes them tick.
3 min.
Lesson Notes
Keep an external focus – spend time with your target audience and figure out what problems they face
Learn from your mistakes – no product ever enters the market unscaved
Embrace the inner Edison – got out and start creating
Resist the pull of the core