Unleashing Innovation Across the Value Chain – A Mantra for Growth

Presented By:Ayush Gulati (ayush.gulati@greatlakes.edu.in)

Guneet Singh Arneja

(guneet.arneja@greatlakes.edu.in) Great Lakes Institute of Management

NCMS-2012

Market:o To gain competitive edge.o To protect and reinforce market share

People and organization:o To attract and retain high caliber staff.o To attract alliance partners

Financial: o To attract fundingo To raise margins and profitability

One piece of evidence: According toa study by BCG(2010), for 72% companies, innovation is one of the top three priorities.

Where Innovation stands?

Product Innovation: Be it disruptive or incremental, can increase profitability, by either increasing revenues, or by reducing costs. Examples:o Tata Motors: Disruptive Product Innovation implementation.o Jaipur Foot: Development of prosthetic limb that matches active life

style Process Innovation:

o Tata Steel: Sought best benchmarks for management, manufacturing excellence, operating practices, training, branding and customer and retail value.

Business Model Innovation: Connects technological potential, unique capabilities, knowledge bases with the realization of economic value and create an additional bottom-line o Amul: Developed a sustainable and efficient model for rural

developmento Mumbai’s Dabbawalas: Achieved Six Sigma level without a formal

documentation of standards.

Innovative Indian Enterprises

Innovation Strategies of Five Indian Local Market Leaders

Strategy: Toyota Prius: example of continuous process innovation. Operating Practices: Toyota motors continued process improvement

and development even in financial crisis. Measures of Performance: New offerings, number of new ideas,

process improvement rates etc. Rewards and Recognition: Recognition and rewards can be based

explicitly on innovation contribution. Behaviour and Culture: Achievement of company-wide “unconscious

competence” in systematic innovation.

Innovation in day-to-day Activities

 Institutionalize and nurture the climate and culture for fostering innovation in organizations

Possession of  Innovation promotion competencies that transform new ideas/knowledge into new products, services, schemes, systems and processes.

Key Roles of manager:

Manager’s Role in Innovation

• The majority of companies that do use metricstypically use only a handful—i.e., five or fewer.

Measurement of Innovation

A majority of respondents also said that their company measures time to market (59 percent) and idea generation (55 percent). R&D efficiency, time to volume, portfolio health, and life-cycle performance are also tracked by quite a few companies: each netted a yes from over 40 percent of respondents

Companies do not measure all aspects on innovation rather they measure innovation outputs, or end results, which include both cash returns (and, ultimately, returns for shareholders) and indirect benefits, such as a stronger brand and acquired knowledge that can be applied to other offerings and purposes

An innovative organization continues to innovate:o not for business success o not to get more territoryo not to do things better  but just as a matter of course Its in their DNA. All of the business benefits - quality improvement,

newer products, better markets, are side effects of that way of BEING.

Innovation is simply “Who The Organizations are”. Example: 3M a manufacturing conglomerate at the age of

104 is introducing new products as if it were a startup. Basic pillars of innovation success of 3M:o Commitment to innovation from top to bottomo High spending on R&Do High base of technologyo Encouraged networkingo Rewards and recognition to individuals

Innovation: End in itself or means to an end?

Top-Down Innovation: People in power set pace, target, objectives and provide funding.

Examples of Top-Down Approach: 1) Tata motors creation of Nano.2) Aravind Eye Hospital reengineered cataract surgeries.

Bottom-Up Innovation: Innovation originates at the bowel of the organization. People who think differently, ask questions, bring a different perspective etc are the innovation centers of this approach.

Example of Bottom-Up Approach: 1) “Innovation School of Management” developed by Titan Industries

Top-Down, Bottom-Up Approach-a Renewed Outlook to innovation

India’s talent pool is boosted by around 2.5 million graduates in science, IT and engineering every year.

The IISc (Indian Institute of Science) produces more scientific publications than any other Indian institute, as well as India’s top-ranking science journal Current Science.

Role of Educational Institutes in Propagating Innovation

Thank You