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COMPETITIVE INNOVATION-Meeting the Challenge-

By Carlos Ramón CanosaGöttingen – 01/2012

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Age of Enlightenment(Cultural movement of intellectuals in 18th-century in Europe)

Competitive Innovation – Meeting the Challenge

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Innovation

from Latin innovatio(n-), from the verb innovare

noun

[mass noun] the action or process of innovating:

innovation is crucial to the continuing success of any organization

innovate (in¦nov|ate)

 verb

make changes in something established, especially by introducing new methods, ideas, or products:

the company’s failure to diversify and innovate competitively

Competitive Innovation – Meeting the Challenge

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Competitive Innovation

competitive (com|peti¦tive)

adjective

As good as or better than others of a comparable nature:

a car industry competitive with any in the world

Competitive Innovation: make changes in something established, especially by introducing new methods, ideas, or products in order to become as good as or better than others of a comparable nature (our competitors).

--- Innovation & Company’s Competitive Dynamics ---

Competitive Innovation – Meeting the Challenge

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CI as part of Comany’s Competitive Dynamics

2007 Revenue 2008 Revenue 2009 Revenue 2010 Revenue

GARMIN 2.3B GARMIN 2.5B GARMIN 2.1B GARMIN 1.7B

TOMTOM 1.6B TOMTOM 1.4B TOMTOM 1.2B TOMTOM1.2B

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Market leaders…

Competitive Innovation – Meeting the Challenge

Global PC Market Share by Units, Percent. 1996-2011.

Rank 1996 MS 2001 MS 2006 MS 2011 MS

1 Compaq 10.0 Dell 13.3 Dell 15.9 HP 17.2

2 IBM 8.6 Compaq 11.1 HP 15.9 Lenovo 13.0

3Packard-Bell NEC

6.0 HP 7.2 Lenovo 7.0 Dell 12.1

4 Apple 5.9 IBM 6.4 Acer 5.8 Acer 11.2

5 HP <5.9 NEC 3.8 Toshiba 3.8 ASUS 5.9

Others - >76,3 - 58.1 - 51.6 - 40.7

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And why?

Because market changes!

Everything Flows… Panta rhei

"Everything changes and nothing remains still... and... you cannot step twice into the same stream"

Peter Drucker expressed it with the following words:

"An established company which, in an age demanding innovation, is not able to innovate, is doomed to decline and extinction."

Where do you want to be in 5 or 10 years?

Competitive Innovation – Meeting the Challenge

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The curve of growth/innovation

Competitive Innovation – Meeting the Challenge

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THE MARKET

Competitive Innovation – Meeting the Challenge

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My business

Competitive Innovation – Meeting the Challenge

?

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Types of innovation

• Gradual changes – continuous innovation– Cost reduction– Improve the the way of using a machine– A new “more efficient” layout– IT development– New product

• Disruptive innovation– To discover a new target/segment for an existing product– New Technology that changes the market

http://www.claytonchristensen.com/

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What’s my strategy?

How did they innovate the “Circus” market?

Competitive Innovation – Meeting the Challenge

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Apple & Microsoft

What have happened for the last 10 years?

What was the main “change”?

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What is Nespresso’s Key to success?

Competitive Innovation – Meeting the Challenge

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Innovation

• Different uses of the same product

• Tech progress

• Sustitutive technologies/products

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“If I had asked people what they wanted, they would have said faster horses”

Henry Ford

Competitive Innovation – Meeting the Challenge

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CASE OF STUDY: SPANISH INNOVATION

Competitive Innovation – Meeting the Challenge

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Questions:

• What is the strategy?

• Is ElBulli profitable?

• What is their business model?

• Where is the “innovation” in ElBulli?

Competitive Innovation – Meeting the Challenge