IIPM_NPD_Lecture_1

8/7/2019 IIPM_NPD_Lecture_1

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New Product Development

Entrepreneurship & Innovation


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Course Content

Entrepreneurship & Innovation

Opportunity Analysis

New Product Development Process


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Who is Entrepreneur?

Person

keen & willing

new idea/invention

start a venture

take risk

force creative destruction/disruption

CREATE NEW PATHS


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eg of Entrepreneur


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Types ofRisk/Uncertainity

Measurable : all required information is available and the

probability and impact of risk can be determined.

Ambiguity : some information is available; but not complete

and hence, probability can not be determined, impact can be. True Uncertainity : no information is available, neither

probability nor the complete impact can be determined. Dark

Tunnel


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Benefits of Entrepreneurship

Financial Gains

Increased jobs

New Sectors, Industries

Encourage more research

Economic growth


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Catalysts for Entrepreneurship

What factors are required for entrepreneurship/entrepreneur

to flourish?

Availability of Innovative Ideas

Access to capital (at affordable cost) Conducive environment (PEST) to support innovation and

risk

Competence of entrepreneur


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Innovation

New way of doing something (product/process/thinking)

Incremental

Radical or revolutionary

Invention: an idea made manifest and

Innovation: ideas applied successfully.


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Goals of Innovation

Creation of new markets

Extension of the product range

Replacement of products/services

Improved quality

Reduced labour costs

Improved production processes

Reduced materials

Reduced energy consumption

Reduced environmental damage

Conformance to regulations

Increase Revenue

Decrease Cost

Meet Social /legal

permission


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Sources of Innovation

Internal(to co./industry)

Unexpected event

Incongruity

Process need

Change in industry

External

Demographic change

Changing perceptions

/values / beliefs

New Knowledge /

technology


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Linear model of Innovation

The Linear Model of Innovation is an early model of innovation that

suggests technical change happens in a linear fashion from

Invention to Innovation to Diffusion.

R&D (scientific research)has a priority as the basis of innovation,

and plays down the role of later players in the innovation process.


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Diffusion of Innovation

Innovations may spread from the

innovator to other individuals and groups

Has a Life Cycle S shaped diffusion

curve

Growth is slow at the start

Increases rapidly with wider adoption

Plateaus or declines after most users

have adopted.

Next innovation in same arena may lead

to decline

Constant innovations needed

successive S curves

Documents

IIPM_NPD_Lecture_1