This document provides an overview of the ENT 211 Entrepreneurship and Innovation course taught by Dr. Kingsley N. Igwe. It defines innovation and discusses the different types (incremental, transformational, breakthrough), degrees (product, process, organizational, marketing), and nature (risky, unpredictable) of innovation. Innovation is important for creating new products and processes that are accepted by markets and society.
This document provides an overview of the ENT 211 Entrepreneurship and Innovation course taught by Dr. Kingsley N. Igwe. It defines innovation and discusses the different types (incremental, transformational, breakthrough), degrees (product, process, organizational, marketing), and nature (risky, unpredictable) of innovation. Innovation is important for creating new products and processes that are accepted by markets and society.
This document provides an overview of the ENT 211 Entrepreneurship and Innovation course taught by Dr. Kingsley N. Igwe. It defines innovation and discusses the different types (incremental, transformational, breakthrough), degrees (product, process, organizational, marketing), and nature (risky, unpredictable) of innovation. Innovation is important for creating new products and processes that are accepted by markets and society.
This document provides an overview of the ENT 211 Entrepreneurship and Innovation course taught by Dr. Kingsley N. Igwe. It defines innovation and discusses the different types (incremental, transformational, breakthrough), degrees (product, process, organizational, marketing), and nature (risky, unpredictable) of innovation. Innovation is important for creating new products and processes that are accepted by markets and society.
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ENT 211
Entrepreneurship and Innovation
Course Lecturer
Dr. Kingsley N. Igwe
Innovation • The term innovation derives from the Latin word innovatus, which is the noun form of innovare "to renew or change” stemming from in - "into" + novus - "new“
• An innovation is the implementation of a new or
significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations • Innovation generally refers to the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society.
• Innovation cuts across virtually all facets of human
existence and is an important topic in the fields of economics, business, entrepreneurship, design, technology, sociology, medicine, engineering, etc.
• Innovation therefore plays vital role in the society
as it enhances comfort, convenience, and efficiency in everyday life Nature of Innovation Risky Unpredictable About which particular activity/intervention will work or prove useful or not Who will benefit When exactly Under which particular set of circumstances Whether the discovery and application will be as intended, or possibly of a quite different nature. Success comes from failure Unexpected failure can be a major source of innovation opportunity, and that innovation most frequently works in ways different from expected A key component of effective innovation is an openness to learn and this is because learning means staying open to experiments that might not work. It means seeking and using, and sharing, information about what went wrong with what you hoped would go right – Knowledge Sharing Degrees of Innovation
• Transformational Innovation – this has to do with a major change from what is in existence into something that is far different and considerably improved.
– It is the most difficult type of innovation because it changes
the way we live and often makes big companies, even whole industries, obsolete in a short period of time.
– The computer and entertainment electronics industries
have been prime examples of this. Today we are gradually doing away with devices like the cassette players, videotape cameras, bag phones, desktop computers, etc., replacing them with CD, digital cameras, cell phones, laptops etc • Incremental Innovation – if transformational innovation sits at one end of the innovation spectrum, then the opposite end is Incremental Innovation.
– It focuses on the kinds of improvement that keep a
product, brand or company in the game. They tend to be line or brand extensions, new bells & whistles, new packaging, new improved ingredients, etc.
– over 60% of innovations claimed by the consumer
products industry were nothing more than packaging improvements. Incremental Innovation requires: Multi-disciplined, cross-functional collaboration . Strong, definable metrics at each decision-making point. Consensus-based decision making between multiple stakeholder functions . Internal competition for people, money, and operational resources, such as: – Research & Development – Packaging development – Qualitative and quantitative market research – The interruption of production lines for short, unprofitable test market runs – Distribution channel support in small test market geographies where channel competition is fierce enough for the established brands – Promotional and advertising development Breakthrough Innovation This falls between incremental and transformational on the innovation spectrum. It requires significant change on the part of the innovating organization, both in terms of cultural and systems support. It creates true competitive advantage for a sustainable although increasing shorter period of time and it involves significantly more risk-taking, which is why the decision- making that results in true breakthroughs must in many ways be the opposite of the decision-making that supports incremental innovation. It must be sponsored at the top. Breakthrough ideas create new markets and business opportunities that did not exist before Types of Innovation
• Product Innovation - Introduction of a good or service that is
new or significantly improved with respect to its characteristics or intended uses. Process Innovation - Implementation of a new or significantly improved production or delivery method. Organizational Innovation - Implementation of new methods for distributing responsibilities and decision making among employees for the division of work within and between firm activities/organizational units.
• Marketing Innovation - Implementation of a new marketing
method involving significant changes in product design or packaging, product placement, product promotion or pricing.
