Innovation and

Commercialization
Explore the dynamic intersection of innovative ideas and successful
business strategies. Gain insights into driving transformative change and
bringing groundbreaking concepts to market.

by Minh Chau Nguyen

Quotes on Innovation
Thomas Edison Steve Jobs
"There is a way to do it better – "Innovation is the ability to see
find it." This quote emphasizes change as an opportunity, not
Edison's belief that innovation a threat." This quote highlights
is about continuously seeking Jobs' perspective that true
to improve upon existing innovation requires embracing
methods and solutions. and adapting to change, rather
than resisting it.
Structure of Lecture 1

Invention
The creation of new ideas, devices, or processes that have not existed before.

Innovation
The application and commercialization of new ideas, leading to new or improved
products, services, or business processes.

Diffusion
The spread and adoption of innovations throughout a population or market.
Defining Innovation

Etymology of Innovation Innovation Defined Innovation Activities

The word "innovation" originates from An innovation is a new or improved Innovation activities include all the
the Latin "innovare" meaning "to make product, process, or combination developmental, financial, and
something new or to change". thereof that differs significantly from a commercial efforts undertaken by a
firm's previous offerings and is made firm to bring an innovation to market or
available to potential users. implement it internally.
Defining
Innovation
Innovation is the process of creating new or
improved products, services, or processes that
add value and meet unmet needs. It involves
the application of knowledge, creativity, and
problem-solving skills to develop novel
solutions that can transform industries and
reshape markets.

The key elements of innovation include

ideation, experimentation, and
implementation. Successful innovators identify
emerging trends, leverage technological
advancements, and collaborate with diverse
stakeholders to bring their ideas to life.
The Innovation Process
IDEAS
1 Identify opportunities for improvement

IMPLEMENTATION
2
Transform ideas into practical solutions

INNOVATION
3
Achieve real-world impact and value

The innovation process starts with ideas - identifying opportunities to enhance your operations. These ideas must then be
transformed into practical, implementable solutions. Successful innovation is achieved when both the ideation and
implementation phases are completed, resulting in real-world impact and value for the organization.
The Innovation
Process
The innovation process is a systematic approach to
developing and bringing new ideas to life. It involves
key stages such as ideation, prototyping, testing, and
implementation to transform concepts into tangible
solutions that create value.

Effective innovation requires a combination of creative

thinking, analytical problem-solving, and a willingness
to take calculated risks. By following a structured
process, organizations can increase their chances of
successful innovation and stay ahead of the
competition.
Visualizing Innovation Concepts

Metaphors and Analogies Infographics and Diagrams Interactive Visuals

Using visual metaphors and analogies Visualizing data, processes, and Dynamic, interactive visuals can help
can help illustrate abstract innovation relationships through infographics and engage the audience and bring
concepts in a memorable and relatable diagrams can provide clarity and insight innovation concepts to life in a
way. on innovation drivers. compelling way.
Organizational Enablers for Innovation
Supportive Culture

A culture that embraces risk-taking,

experimentation, and learning from
failures is crucial for nurturing innovation.

Empowered Employees

Providing employees with the autonomy

and resources to explore new ideas and
solve problems can drive innovation.
The Innovation

Matrix: Driving

Business Growth
Radical Innovation:
Redefining Industries
Disruptive
Breakthrough
Upsets existing business
Introduces entirely new models and markets.
performance features.

Transformative
Changes the basis of competition.
The Innovation Spectrum
Incremental

Refines existing technologies and products.

Architectural

Reconfigures existing system for new market.

Radical

Creates new-to-world products and industries.

Balancing Radical and Incremental Innovation
Radical Incremental Synergy

High-risk, high-reward breakthroughs. Steady improvements to existing offerings. Combining approaches for sustainable growth.
Comparing Innovation
Types

Aspect Incremental Radical

Risk Low High

Time Frame Short-term Long-term

Impact Gradual Industry disruption

improvement
Real-World Innovation Examples

Incremental: iPhone Radical: Tesla Electric Cars Radical: Grab's Taxi Service
Evolution
Revolutionized automotive industry with Disrupted traditional taxi industry with
Steady improvements in features and electric vehicles. app-based model.
performance.
Visualizing
Innovation Impact

1 Ideation
Generate novel concepts and solutions.

2 Development
Refine and prototype innovative ideas.

3 Implementation
Introduce innovation to market.

4 Disruption
Reshape industry landscape
and consumer behavior.
Radical Innovation: Key
Concepts

1 Disruptive 2 Market Creation

Technologies
Generate new markets with
Potential to upset existing growth potential.
business models.

3 Performance Leaps 4 Competitive Shift

5x improvement or 30% cost Changes basis of
reduction. competition in industry.
Characteristics of Radical
Innovation

New Performance Significant Improvement

E ntirely new set of features. 5x or greater performance boost.

Cost Reduction Competitive Shift

30% or greater cost savings. Alters industry competition dynamics.
The Innovation S pectrum:
F rom Incremental to R adical
(R adical of incremental? )

Innovation drives business growth and technological

advancement. It ranges from incremental improvements
to radical breakthroughs. Each type offers unique benefits
and challenges for companies navigating the competitive
landscape.

C
Strategic Innovation Balance

Incremental Focus Radical Investment Balanced Approach

Safer, cheaper, short-term results. Risky, expensive, long-term potential. Combine strategies for optimal growth.

Steady stream of improvements. Bridge to future technologies. Maintain competitiveness while

innovating.
The Innovation L ifecycle:
Invention, Innovation, and
Diffus ion
1 Invention
Creation of new technological artifacts. Often occurs in research labs or
universities. Focuses on technical feasibility and potential applications.

2 Innovation
Commercialization of inventions. Entrepreneurs bring new products or
processes to market. Involves business model development and market
positioning.

3 Diffus ion
Widespread adoption and imitation. Innovation spreads through economy
and society. Often accompanied by incremental improvements and
adaptations.
The Evolution of Technology: Diffusion
Explore groundbreaking technological advancements from 1764 to 1835.

Discover how inventions shaped the Industrial Revolution.

Invention vs Innovation
Invention Innovation

Creation of a new product or process. Practical implementation and commercialization of inventions.

The Industrial Revolution's Impact
Technological Boom
1
Rapid advancements in
manufacturing and
transportation.

2 Economic Growth
Increased productivity and wealth creation.

3 Social Transformation

Urbanization and changes in

labor practices.
Major Innovations , 1 764-1 835
Spinning machine 1764 Steam locomotive 1824

Steam engine 1775 Cement 1824

Automatic band loom 1780 Telegraphy 1833

Street lighting (gas) 1814 Rolled rails 1835

S treet L ighting by Gas , 1 81 4

1 1 748
Jan Pieter Minckelers born in Maastricht.

2 1 781
Minckelers invents 'inflammable air' from crushed charcoal.

3 1 783
Gas used to fly balloon 25 kilometers.

4 1 81 4
Gas lighting widely implemented for street illumination.
Major Innovation - The
Steam Engine

James Watt, 1775 Industrial Revolution

Greatly improved steam as
universal power source. Enabled widespread
manufacturing and industrial
growth.

Improvement on Newcomen
Enhanced design for broader applications beyond mining.
Minor Innovations in Steam
Power
Incremental Changes
Refinements to boilers and cylinders.

Performance Boost
Two to threefold increase in 30 years.

Cornwall's Contribution
Region pioneered many minor improvements.
E volution of S team Technology

1 71 2 1 809
Newcomen's steam engine for pumping mine water. First commercial steamship introduced.

1 2 3 4

1 775 1 824
James Watt's improved steam engine design. Steam locomotive revolutionizes land transportation.
The Power of S team

Indus trial Application Trans portation Revolution Maritime Advancements

Steam engines powering factory
machinery. Steam locomotives transforming travel Steamships expanding global trade
and commerce. routes.
Technological Paradigm (Dos i, 1 982)

S elected S olutions S cientific Principles S elective Development

Framework for solving specific Based on natural sciences and material Paradigm guides direction of
technological problems. technologies. technological advancement.
Technological
Trajectories: From Steam
Engines to Modern
Innovations
The evolution of technology is a fascinating journey that spans centuries, marked by pivotal
innovations that have shaped our world. This presentation explores the concept of
technological trajectories, tracing the path from early steam engines to contemporary
disruptive technologies. We'll examine how different contexts and goals influence
technological development, the interplay between established and emerging paradigms,
and the factors that determine the success of new innovations. By understanding these
historical patterns and principles, we can gain valuable insights into the nature of
technological progress and its impact on society and industry.
The S team E ngine: A S tudy in Technological Adaptation

1 Mining Applications
Steam engines in Cornish copper and tin mines faced unique challenges. The high cost of transporting coal into the mines necessitated a
focus on maximizing power output per bushel of fuel. This economic pressure drove engineers to prioritize efficiency in their designs, shaping
the trajectory of mining steam engine development.

2 Locomotive Adaptation
In contrast, steam engines for locomotives required a different approach. Engineers like George and Robert Stephenson had to balance
power with size constraints, as the engines needed to fit on wheels and be mobile. This led to innovations in compact, high-power designs
that could withstand the rigors of transportation.

3 Maritime Applications
Steam engines for ships presented yet another set of engineering challenges. Maritime applications required considerations of buoyancy,
resistance to corrosion from saltwater, and the ability to operate reliably for extended periods at sea. These factors led to specialized
adaptations in marine steam engine design.
Critical Factors in the Success of New Technological
Paradigms

1 Adaptability to Local Circumstances 2 Workforce Skills and Capabilities

The success of a new technological paradigm hinges on its The alignment between the new technology and the skills
ability to adapt to existing infrastructures and societal of the available workforce is essential. Technologies that
norms. This adaptability is crucial for widespread adoption can leverage existing skillsets or provide easily acquirable
and integration into various sectors of the economy. new skills tend to have a smoother adoption curve.

3 Cultural Compatibility 4 Competitive Dynamics

The cultural context in which a new paradigm develops When multiple paradigms compete, success is determined
plays a significant role in its success. Technologies that not only by technological superiority but also by how well
resonate with or enhance cultural values and practices are each paradigm addresses local needs and constraints. This
more likely to gain traction and support. competition often drives innovation in both new and
established technologies.
The Steam Ship vs. Sailing Ship:

A Case Study in Technological Competition

The Sailing Ship Effect Expertise and Inertia

The introduction of steam ships The vast experience and
sparked a wave of incremental expertise of sailors trained on
innovations in sailing ship traditional sailing ships initially
technology. This phenomenon, favored the old technology. This Technological Superiority
known as the 'sailing ship effect,' human capital represented a
demonstrates how competition from significant investment and Despite the improvements in sailing technology and the

a new paradigm can spur source of inertia, slowing the initial resistance, the fundamental advantages of steam

improvements in established transition to steam power. The power ultimately prevailed. The ability to navigate

technologies. Shipbuilders, resistance to change highlights independently of wind conditions represented a

motivated by the threat of the importance of considering revolutionary improvement in maritime capabilities,

obsolescence, enhanced sailing ship workforce skills in demonstrating how truly disruptive technologies can

designs to maintain technological transitions. overcome even significant barriers to adoption.

competitiveness.
Disruptive Technologies of the
20th Century
R adical Year E stablished Year
Innovation Technology

Transistor 1 947 Vacuum-tube 1 906

technology triode

Digital camera 1 975- Rolled film 1 91 3

(35mm)

Smartphone 2007 Mobile phone 1 973

E lectric Cars 2003 Conventional 1 927

internal
combustion
engine car
(ICE )
The Evolution of Mobile Communication
Technology
1 1973: First Mobile Phone
Motorola introduces the DynaTAC, the first handheld cellular phone. While
revolutionary, it was bulky and had limited functionality.

2 1990s: Digital Cellular Networks

The transition from analog to digital networks enables more efficient use of spectrum
and introduces features like text messaging.

3 2007: iPhone Launch

Apple's iPhone redefines the smartphone, introducing a touch interface and app
ecosystem that revolutionizes mobile computing.

4 2010s: 4G and Beyond

High-speed data networks enable video streaming, mobile gaming, and other data-
intensive applications, further expanding smartphone capabilities.
Visual E volution of Mobile Devices

Screen Size and Quality F orm F actor Transformation

The progression of screen technology is evident, moving from small The animated image illustrates the dramatic changes in
monochrome displays to large, high-resolution color screens. This mobile device design over time. From bulky, brick-like early
shift enabled richer user experiences and expanded the functionality models to sleek, touchscreen-dominated modern
of mobile devices beyond simple communication. smartphones, this evolution reflects advances in
miniaturization, battery technology, and user interface design.
Demand P ull vs. Technology Push: Understanding
Innovation Drivers
Demand P ull Hypothesis Technology P ush Hypothesis The Debate

This perspective argues that economic Conversely, this view posits that The ongoing discourse between these
demand is the primary driver of technological advancements drive perspectives can be simplified as a
innovation. It suggests that firms identify economic and market changes. It question of whether innovation
market needs or consumer problems emphasizes the role of research and originates in the marketing department
first, then develop technological development in creating new (demand pull) or the R&D department
solutions to address these demands. technologies, which then shape market (technology push) of a firm. In reality,
The innovation process is seen as demands and consumer behavior. successful innovation often involves a
reactive to market forces. Innovation is seen as proactive and complex interplay between both factors.
driven by scientific or engineering
breakthroughs.
Exploring the Demand Pull Hypothesis
Market Research
Firms conduct extensive market research to identify consumer needs, preferences,
and pain points. This may involve surveys, focus groups, and data analysis of
consumer behavior.

Problem Identification
Based on market insights, specific consumer problems or unmet needs are identified.
For example, Microsoft recognized the limitations of MSDOS in terms of user-
friendliness.

Marketing to R&D Communication

The marketing department communicates these identified needs to the R&D team,
providing a clear direction for technological development.

Product Development
R&D teams work on developing solutions that address the identified market needs. In
Microsoft's case, this led to the development of the Windows operating system.
The Technology P ush P erspective in Innovation

E ngineering Innovation Technological Market Challenges Balancing Act

Sophistication
The process begins with The challenge lies in finding Successful technology push
engineers or scientists Technology push often results or creating a market for these innovation requires a delicate
developing new technological in highly sophisticated advanced technologies. In the balance between
capabilities, often without a products that push the case of the Concorde, despite technological advancement
specific market application in boundaries of what's its technological prowess, and market readiness. It often
mind. These innovations can technically possible. The high operational costs limited involves educating consumers
be groundbreaking but may Concorde aircraft is a prime its commercial viability and and creating new markets
struggle to find immediate example, representing a market adoption. rather than responding to
practical applications. pinnacle of aerospace existing demands.
engineering achievement.
The Interplay of
S cience and
Technology
Science and technology have a symbiotic relationship. Their interplay drives
innovation and progress. This presentation explores their dynamic
connection, focusing on historical examples and modern developments.

CN
Science's Impact on Technology

1 Historical Perspective
Science has historically driven technological advancements. This relationship has evolved over time, becoming more intertwined.

2 Steel Industry Example

The development of steel illustrates the science-technology relationship. It revolutionized industries like bridge-building and railroads.

3 Modern Interactions
Today, technology often catches up with science. High-tech fields now rely on close interaction with scientific frontiers.
Technology as a Public Good
Demand Pull

Market needs drive technological innovation. Companies

respond to consumer demands, shaping product development.

Technological Push

Scientific breakthroughs spark new technologies.

These innovations often create new markets and
consumer needs.
Apple's Innovation Paradigm
Market Dominance Industry Leadership Global Recognition
Apple's market capitalization Despite being a relatively young Forbes recognizes Apple as the world's
surpasses many countries' GDPs. It company, Apple leads in PC sales and most innovative company. Its impact
exemplifies the power of innovative innovation. extends beyond technology.
technology companies.
Think Different: Apple's
Innovation Strategy

1 Beyond Invention 2 Disruptive Innovation

Apple focuses on successful Apple introduces products
applications of new solutions. that initially seem inferior but
They meet existing, new, and quickly improve and gain
unarticulated market needs. popularity.

3 Quality Over Quantity

Apple prioritizes hiring passionate innovators. They pay more to attract
top talent.
Apple's Product Innovation S trategy
1 2 3

iPod Revolution iPhone Innovation iPad Disruption

Apple disrupted the music industry with The iPhone combined phone, music Apple's iPad challenged traditional
the iPod. It offered massive storage and player, and computer. It redefined the computing. It introduced a new category
intuitive controls. smartphone market. of mobile devices.
Leadership in Innovation

Visionary Leadership Holistic Solutions Self-S atisfaction First

Innovation requires leaders who prioritize Focus on profitable, total solutions. Avoid Create products that the design team truly
new product development. CEOs must be loosely joined components. wants. Avoid compromises from surveys.
directly involved.
Apple's Innovation Factory

Constant S earch
Apple continually seeks new inventions. They explore diverse fields for inspiration.

Cross-Fertilization
Apple combines ideas from various sources. This hybrid approach leads to innovative products.

E motional Connection
Apple focuses on creating products people want, not just need. They prioritize user experience.
Apple Watch: A Case Study in Innovation
Customer E xperience Business Model Collaborative Innovation

Apple Watch innovates through Less disruptive than previous products, it Apple Watch demonstrates the power of
continuity between devices. It extends the builds on existing infrastructure. This diverse collaboration. It combines various
Apple ecosystem seamlessly. approach reduces adoption barriers. technologies and design elements.
Lessons for Entrepreneurs
Perfection Over Invention Leadership Involvement
Ensure top management is
Focus on creating the best directly involved in innovation.
version of existing products. Leaders should drive the creative
Prioritize quality and user process.
experience.

Emotional Connection Diverse Collaboration

Create products that forge Embrace diverse perspectives in
emotional bonds with users. Go the innovation process. Combine
beyond functionality to ideas from various fields and
desirability. backgrounds.
Bài Học Đổi Mới Từ
Apple Cho Doanh
Nhân Việt Nam
Doanh nhân Việt Nam có thể học hỏi nhiều từ chiến lược đổi mới của Apple.
Bài thuyết trình này sẽ khám phá sáu ý tưởng quan trọng. Chúng ta sẽ tìm
hiểu cách áp dụng những bài học này vào bối cảnh kinh doanh Việt Nam.

CN
Đổi Mới Là Món Quà Cho
Khách Hàng
Văn Hóa Tặng Quà Thiết Kế Là Món Quà
Việt Nam có truyền thống tặng Apple coi thiết kế tốt như một
quà. Doanh nghiệp có thể áp món quà. Mỗi sản phẩm nên
dụng điều này vào sản phẩm được xem như một món quà
của mình. được mong đợi.

Bọc Ý Tưởng
Apple "bọc ý tưởng tuyệt vời bên trong ý tưởng tuyệt vời". Từ phần
mềm đến phần cứng và hộp đựng.
Đổi Mới Không Cần Đắt Đỏ
1 Ứng Dụng AR Sáng Tạo
Band-Aid Magic Vision biến khoảnh khắc đau đớn thành niềm vui thông qua công nghệ AR đơn giản.

2 Tích Hợp Công Nghệ

Sử dụng công nghệ phù hợp để nổi bật trong thị trường cạnh tranh, không cần chi phí cao.

3 Tạo Trải Nghiệm Độc Đáo

Đổi mới có thể đến từ việc tạo ra trải nghiệm đặc biệt cho khách hàng.
Đổi Mới Thông Qua Hợp Tác
Thoát Khỏi Cô Lập
Các công ty Việt Nam cần tránh đổi mới trong cô lập. Hãy mở
rộng mạng lưới đối tác.

Đa Dạng Hóa Đối Tác

Hợp tác với nhiều loại đối tác để tiếp cận ý tưởng và nguồn
lực mới.

Mô Hình Kết Hợp

Áp dụng mô hình kết hợp, tận dụng sức mạnh của cả nội bộ
và đối tác bên ngoài.
Xây Dựng Kho Tàng Sáng Chế
1 Nền Tảng Cho Đổi Mới 2 Học Hỏi Từ Quá Khứ
Không thể sáng tạo ý tưởng Nghiên cứu các sáng chế
mới nếu không có ý tưởng trước đây để tìm cảm hứng
sẵn có. Xây dựng cơ sở dữ và tránh lặp lại.
liệu sáng chế.

3 Khuyến Khích Chia Sẻ

Tạo môi trường chia sẻ ý tưởng trong doanh nghiệp và giữa các
doanh nghiệp.
Chương Trình Cố Vấn Cho Nhà Sáng Chế Trẻ
Đánh Giá Tiềm Năng Loại Hình Đổi Mới Hỗ Trợ Toàn Diện

Không phải mọi ý tưởng đều có tiềm Hướng dẫn về đổi mới đột phá, đổi mới Cung cấp hỗ trợ về kỹ thuật, kinh doanh
năng. Cần có người hướng dẫn đánh liên tục, và mô hình kết hợp như Apple. và pháp lý cho nhà sáng chế trẻ.
giá và phát triển ý tưởng.
Thể Chế Hóa Gọi Vốn Cộng Đồng

Linh Hoạt Tài Chính Kết Nối Cộng Đồng Hỗ Trợ Khởi Nghiệp
Gọi vốn cộng đồng cho phép sử dụng Tạo mối liên kết giữa nhà sáng chế và Giải quyết vấn đề thiếu vốn cho các dự
tiền linh hoạt hơn so với vốn từ tổ chức. cộng đồng ủng hộ. án khởi nghiệp nhỏ ở Việt Nam.
Kết Luận: Hành Trình Đổi Mới
Của Việt Nam
1 Áp Dụng Bài Học 2 Đổi Mới Sáng Tạo
Doanh nhân Việt Nam có thể Tập trung vào đổi mới sáng
học hỏi và áp dụng những tạo để tạo ra giá trị độc đáo
bài học từ Apple vào bối cho khách hàng và thị
cảnh địa phương. trường.

3 Hợp Tác và Phát Triển

Thúc đẩy hợp tác và hỗ trợ lẫn nhau trong cộng đồng doanh nghiệp
Việt Nam.