Instructor: Assist Prof.

Semra KÖSE
semrakose@[Link]

• Note 03
• Innovation is a concept which is a way of thinking, a result
that supplies profit to the entrepreneur and benefit to
consumers, meets people's needs, solves problems, starts
with curiosity and intuition, continues with dreams and ends
up with turning into a product, service or social benefit,
includes discovery, invention and R&D and consists of
creativity and innovation processes.
 LEARNING OBJECTIVES

• Heraklius says "Nothing is permanent except change". Social

change is the change in institutions that creates society.
• Difficulties of Innovation

• Finding a good idea

It is a fact that the best idea comes out of plentiful ideas. So it is
crucial to collect as many ideas as possible. It doesn't matter if
plentiful ideas come up inside or outside the business. If from child,
young or adult, if from man or woman, the best idea comes to
light when many ideas are eliminated.
• Disappointments: People often get disappointed and demotivated.
It is especially necessary to keep inner motivation alive. Ideas
seem to be small or worthless may become a valuable idea later
and small ideas cause bigger ideas to appear. For finding the best
idea, not getting disappointed is necessary

Trying again: In order to find more than one decent and accurate
idea, it needs to try constantly. The chance to catch it for the first
time is very weak. You should not give up by saying "I tried once
but could not find the right one". It is necessary to find the decent,
more than one decent and the most decent by trying again
• Beating rivals: There is competition in innovation. There may be
more than one trial being carried out for the same or similar
ideas. The important thing is to come onto the market before
anyone else. On the other hand, there may be ideas left
unfinished.
• Misconceptions About Innovation

• Innovation and R&D are the same things.

• Innovation is much more than R&D, a part of innovation.
Innovation and R&D are not the same thing. Creativity and
inventions are carried out in R&D but not all of the inventions
can be turned into innovation.
• Innovation only produces economical and social benefit
• Innovation is carried out in order to solve problems or meet
requirements. But sometimes it can create problems itself. If the
amounts of problems it creates and solves are the same, the
benefit it produces is a waste.
• Innovation has only one target: profit.

• Start ups should be perfect in innovation.

• Only big companies can carry out innovations.

• Processes of Innovation

• Creativity generates ideas.

• Today four basic processes are found sufficient for innovation.
• 1. Gathering ideas
• 2. Managing ideas
• 3. Selecting ideas with success potential.
• 4. Application
• Gathering ideas
• The first process of innovation is to search for and find ideas. It's
the process where creativity is used in entrepreneurship and
innovation. A lot of ideas are found in this process.

• Managing ideas
• Valuable ideas should be managed as well as other sources in
businesses. And ideas should be managed as the risks and
stresses are managed in a business
• Selecting ideas with success potential.
• Products from all the companies do not have adequate time,
capital or power in order to apply all the ideas. Ideas would
be definitely eliminated. Ideas with success potential would be
found and the others would not be appled. The aim here is to
find the best idea for innovation.
• .
• Application (Appearance on the Market, Assessment, Evaluation,
Learning, Recall)

• In this process, the performance of the products and services

that have been released are measured and evaluated
 Kinds of Innovation

• Radical innovations usually generates a new category. After

that, products and services show up in that category which are
slightly different than each other. Examples of radical and
incremental innovations are highly common in information and
communication technologies
• Can you give an example of radical innovation?
 Kinds of Innovation

• Disruptive Innovation
• innovation is also called paradigm-shifting innovation. As known,
innovation is carried out to solve people's problems and meet
their needs. Up to now, there are a lot of unsolved problems
and unsatisfied needs. Or there are slightly solved or satisfied
ones
• Can you give an example of disruptive innovation?

• *Amazon
• In closed innovation, ideas only connect to the ideas of a narrow
group inside the company while they connect to many ideas of
different kinds in open innovation. By this way, there would be
opportunity for ideas to circulate and combine with other ideas.

• *Pharmaceutical Industry
• Closed Innovation
• A closed innovation is based on the view that innovations are
developed by companies themselves. From the generation of
ideas to development and marketing, the innovation process
takes place exclusively within the company. Place
of innovation within the company.

• Open innovation is “the use of purposive inflows and outflows

of knowledge to accelerate internal innovation, and expand
the markets for external use of innovation, respectively.” Open
innovation can be understood as the antithesis of the
traditional vertical integrati
• Operational Innovation
• Operational innovation is as important as other innovation
types. It gives answer to the questions of how to make our
production practices and operations. It is a type of innovation
that creates the best quality and lowest cost. It is essential that
this should be sustainable. While operational innovation should
be done by small improvements there should be significant
leaps too.
• Marketing (Market) Innovation

• Designing of products and services according to customers

requests, needs and problems is a type of marketing innovation

• Work Model Innovation

• Whether it is a new or a settled establishment, if the
establishment is still working then it has a work model. But most
of the entrepreuners do not have work models consciously.
Work model is a story that shows how the establishment works.
Designing a new work model resembles to create a new story.
This story is based on general value chain.
• Working model comes in when it is not about product.
• For working model this questions should be asked and answers
give us the working model;
• Customer
• - Who will be my customer?
• - For which customers I should provide product/service?
• - Which customer group would get me profit?
• - For which customer group I can produce benefits?
• Value Producing
• - Which value I should create for customer?
• - What should be my profit model?

• Differentiation (Strategic Case)

• - How can I prevent rivalry?
• - How can I maintain my profit?
• - Why my customers are buying from me?
• - What is my differency?
• - What is the differency of my provided value?
• Extent
• - Which services I should make (establishment wise)?
• - Which services I should get it done out of establishment?
• Managing Innovation

• Explaining innovation management culture is possible with

certain principles.
• For innovation management there should be an exciting vision. In
order to bring out the passion and excitement of establishments
employers and keep it alive, employers should be explained the
big picture after the innovation has been done.
• Organizating in innovation management should not be
hierarchical. In a hierarchical structure when top management
bosses over to workers a lot, innovation efforts would not end
up successfully. Biggest enemies of innovation is hierarchical and
burocratic structures.
• Managers, supporting and easing the innovation should create
a common language, trust and equal culture. Employers’
relationship with each other and employer-managers
relationship will increase the chance of innovation success.

• - In innovation management, for success, proper places should

be created in order to gather informations, ideas and power
sharing.
• Networks increasing the relationship and communication of
employers should be increased. This networks should be open
from inside to outside and outside to inside.

• In innovation management, organization must have life long

education. Organization should be everlearning.
• Idea platforms created in innovation management should be
open for all the people creating new ideas. Because ideas
made may trigger other ideas. This situation may lead to more
creative ideas.

• - In innovation management, company and customer value

created by innovation should be explained clearly.

• - In innovation management, innovation resistance should be

managed well.

• -
• In innovation management, innovation should be added to
organization culture and innovation and management should
become perpetual.

• - In innovation management, innovation should be in every cells

of organization.

• - In innovation management, innovation should be measured

often. Because you cannot manage innovation without
measuring.
• Which of the following innovation types ideas is limited to
organizations idea producing?
• a) Operational innovation
• b) Devastating innovation
• c) Close innovation
• d) Business model innovation
• e) Reverse innovation
• In which following phase creativity is used in innovation?
• a) Managing ideas
• b) Idea gathering
• c) Picking potentially succesful ideas
• d) Implementation
• e) Budgetting
• In order to realise innovation which of the following property is
NOT needed?
• a) Originality
• b) Having definable value
• c) Can be commercialized
• d) Different
• e) Should be brought out by imitating
• The END
• Thanks a lot