#innovation articles

[mathyug]

Empowering Minds: A Corner for Educational Excellence | MathYug Technologies

Explore the nexus of education, technology, and innovation through MathYug's insightful blogs. Stay informed, inspired, and ahead in the dyn

Dive into the world of education, technology, and innovation with MathYug's insightful blogs and articles. Stay informed, inspired, and ahead in the dynamic realm of EdTech.

[northbankvirtual-blog-blog]

What a great read for a quiet, slushy day. I love innovation. I hope this will inspire you, energize you and motivate you.

[h2rra-blog]

Six Keys to Creating New-Growth Businesses (Harvard)

By Clayton M Christensen, Michael E. Raynor and Scott D. Anthony

Managers nowadays know innovation is the ticket to growth but they just can’t seem to get it right. Companies keep improving their existing products and services to meet customers need, but by doing everything right they create opportunities for new companies to take their markets away. Companies need a way to unlock the process of innovation-driven growth.

Managers don’t like theories, but they use them from day to day. The problem is that they use a one-size-fits-all theory, but strategies that worked so well in the past no longer suffice. Six lessons should help managers successfully build new growth businesses.

Disruptive innovations spur growth

Disruptive business either create new markets or take low end of an established market

Disruptive opportunities require a separate business planning process

Don’t try to change your customers - help them

Integrate across whatever is not good enough

Be patient for growth but impatient for profitability

1.      Companies have 2 basic options: taking market from an entrenched competitor with sustaining innovations or take competitor with disruptive innovations that either create new markets or take root among an incumbent’s worst customers.

Companies should seek out growth based on disruption. Although disruptive innovations result in worse performance, they are often cheaper, simpler, smaller, and more convenient to use. Incumbents almost always win battles of sustaining innovations, but almost always lose battles where attacker has a legitimate disruptive innovation.

2.      There are 2 types of disruptive innovations: first creates a new market by targeting non-consumers (Sony Walkman), the second competes in the low end of an established market (minimills vs integrated mills).

3.      Disruptive innovations stand a small chance of seeing a day light if they are evaluated through the lenses of sustaining innovations. Companies frustrated by an inability to create success shouldn’t conclude that they are not creating good enough ideas, the problem lies in their processes. Only by creating a parallel process for developing and shaping disruptive ideas can companies successfully launch disruption after disruption.

4.      Instead of designing products and services that dictate consumers’ behaviour, let the tasks people are trying to get done inform your design.

5.      The critical question is: what are the circumstances in which my firm should be integrated and what are the circumstances in which my firm can be a specialist. In short, companies must be integrated across whatever interface drives performance along the dimension that customers value.

6.      When you are willing to put up with a lot of losses before a disruptive business turns profitable, that means you are trying to lay foundation for a huge new business.

If the managers understand the theories of innovation they have the ability to create new growth businesses again and again.