PROMOTING INNOVATION

PRESENTED BY

AADIL NAVEED 2013(FALL)-MBA E-004

AHSAN NAEEM 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”

“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)

SOME QUOTES

INNOVATION VS CREATIVITY

INNOVATION

Innovation is converting creative ideas into desired outputs.

CREATIVITY

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.

Ideas generation

Sharing & refining

Implementing on a

small-scale (trial)

Reflecting &

evaluating

Championing & roll out

INNOVATION PROCESS

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 Generation2. Evaluation3. 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 JOBSAn 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 co-founded. 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 "un-innovative 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 innovatorApple 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.