An Innovation is the implementation of a new or significantly improved product (good or service),

or process, a new marketing method, or a new organisational method in business practices,

workplace organisation or external relations

Product Service System = Product + Service + Communication

ALREADZ ON THE MARKET

WHY ARE RADICAL INNOVATIONS SO DIFFICULT FOR THE INCUMBENTS ?

• Marginal Costs (path dependency)

• Uncertainty about feasibility and profits
• Over estimation of the technology potential (technology Myopia)
• Innovation implies change management

(invumbents →new entrants)

Incumbent Curse VS First Mover DISADVANTAGES

• Research and Development Expenses

• Undeveloped Supply and Distribution Channels
• Immature Enabling Technologies and Complements
• Uncertainty of Customer Requirements
Product Architecture
The distinction between the product as a whole -the system and the products in its parts has a long
history […]. For example a room fan’s major components can include the blade, the motor, the blade
guard, the control system and the mechanical housing. The overall architecture of the product lays
out how the components work together. I define product architecture more precisely as: (1) the
arrangement of functional elements; (2) the mapping from functional elements to physical
components; (3) the specification of the interfaces among interacting physical components

example: elsokerekmeghajtas – hatso kerek meghajtas

The Service Package: the Service Concept requires the additional definition of a group of
components (products and services)

Value vs Performance – Kano’s model

Competence enhancing vs. destroying

We saw the user perpective but it originally was defined from the company perspective

• Competence-destroying discontinuties require new skills, abilities, and knowledge in either process
or product design. The skills needed for the core technology shift, causing power and structureshifts
in organizations. They are usually initiated by new firms.

• Competence-enhancing discontinuties are "order-of-magnitude improvements in price-

performance that build on existing know-how within a product class". These discontinuties tend to
consolidate industry leadership.
Typologies of innovation
• Meaning
• Solution
• Incremental vs. Radical
• Architectural vs. Component based
• Competence enhancing vs. Competence destroying

Technology-push
Process driven by scientific or technological competencies Product/process innovation that typically
revolve around the physical attributes of the product.

MARKET-PULL
Innovations that typically involve the way in which the product is commercialized in terms of
organization, distribution and/or advertising:

• •Product presentation
• Distribution channel innovations
• Incremental product performance innovations
• •Sales process innovations...

Synonymous to a User-centered approach to innovation

• Focused on analyzing the current socio-cultural context. Emerging from market trend
• Focused on understanding what the consumer wants from the products/services she
purchases →their needs

The market requests the innovation: explicitly asked by the client or emerging from
trend/market analysis
Customers needs are the key drivers of innovation
Innovation follows market exploration, (technological) solutions are “pulled” by the market
Research the market to:assess what needs exist
how far they are met by existing products
how the needs might be met more effectively by means of a new or
improved products

From the REALITY: observing users, understanding their needs and their relation with products and
services. Translating these elements in characteristics for new PRODUCTS and SERVICES.

With a strategic vision and a design process we are able to generate new user behaviors.

Who are the users?

• Who directly benefit from using a product

• •NOT only customers
• •NOT the manufacturers and sellers
Maslow scale:

TACIT ;HALLGATOLAGOS

SAYING

Questionnaire and interviews

Personal | Email | Telephone interviews
Choice is based on the type of information and the allocated budget
Questionnaire design is fundamental to minimize biased information

Focus Group
Focus groups are fundamentally different from quantitative survey/questionnaire methods in their
purposes, procedures and results
 Despite this technique constitutes a notable improvement in comparison to the interviews, it
introduces three strong limitations:
The choice of the representative sample is very critical
The target customers must be well defined and known
The observations happen in a controlled context that differs from the daily context of the single
consumer

OBSERVING: Ethnography
“By looking at what users do, we learn how to design a better shopping kart
→Organizations, point-of-sales, schools, airports, households can and should be
thought of as culture and as such, can be studied through ethnography
Characteristics of an ethnographic researchThe orientation of the ethnographer
is to passively and subjectively observe a given contextThe researcher must become part of the research
situation

• Objectives...not hypothesesEven though an ethnographic researcher needs only a general question as a

starting point for an ethnographic study, he/she must be well versed and documented in the art and science of
ethnographic observation
• No statistics
• Highly descriptive and qualitative dataInterviews, artifacts, contextual descriptions and the triangulation
of data
• No desire to be generalizableThe strength of an ethnographic research is to be specific and detailed

Ethnographic research with target customers by visiting their home sand watching them clean their
floors.
«The floorswerealreadyclean! Althoughtheyknewthe intentof ourvisit, peoplestillfeltcompelledto tidyup
in anticipationof ourarrival. Thissignaleda fundamentalinsight intothe home cleaningexperience:
it’svalue-laden.
Ourfloorsare a reflectionof ourselves.»

“Netnography,” or ethnography on the Internet, is a new qualitative research

methodology that adapts ethnographic research techniques to study the cultures and
communities that are emerging through computer-mediated communications.

What people make:

1. Lead user analysis
Today, customers aren’t just voicing their needs to companies that are willing to
listen; they’re inventing and often building what they want.

Lead Users:
• Face needs that will be commonplace in a marketplace -but face them before
the bulk of the marketplace encounters them.
• Have a strong economic motive to innovate, since they expect to benefit
significantly by obtaining a solution to their needs
• Have capability to innovate →skilled solvers
• Lead users are not the same as early adopters—lead users are facing needs
for products and services that do not exist on the market

EXAMPLE: birth of snowboard, gatorade

Two traits:
•Have needs that foreshadow general demand in the marketplace
•Expect to obtain high benefit from a solution to their needs (Such users are more
likely to innovate-“Necessity is the mother of invention!”)

2. Beta testing
• Main characteristics
o Direct involvement of the customers in the project cycles
o Feedback from the customers
• Limits
o Customers have to be skilled
o Data gathering (feedback) can be articulated

3. Open source: user toolkit

Principal features
•Open source software
•Overlapping between user needs analysis and concept generation
•Customer = Designer
Limits
•Customers have to be skilled
•Data gathering (feedback) can be articulated

Heterogeneous needs
High uncertainty
Share risk (split the responsibilities)
Lower the costs of innovation (few R&D investments
EXAMPLE: nike shoe design, ikea ugly pluss

KEY POINTS
Market-pull: Approach to Innovation Management that is characterized
by the critical role of the customers
User-centricity: building a deep empathy with the people you’re designing for
Understanding the users’ needs: tools that support the understanding of (1) what
people say, (2) what people do, (3) what people make
Reframing: Users’ needs should not be taken as they are. They should be critically
reinterpreted and transformed into insights and requirements for design.

Design tools
• Personas
• Customer journey
• Storyboard

PERSONAS
A PERSONA IS A USERARCHETYPE THAT HELP GUIDE DECISIONS ABOUT PRODUCT FEATURES, NAVIGATION,
INTERACTIONS, AND EVEN VISUAL DESIGN.
Will stimulate ideas and aid decision making
Encourages the design team to step into the shoes of the user, understanding his motivations.
Useful to write ‘stories’ about a typical day

A persona answers the question, “who is this designed for?”

Using personas in the design process improves the product’s usability.
Personas are behavioral models, represent the product’s users in realistic detail, they are representative
behavior and activity profile that are contextual and specific to the particular application, product or service.

= A better understanding of existing and potential listeners

Customer journey
DESCRIBE HOW THE USER INTERACT WITH THE SERVICE, THROUGHOUT ITS TOUCHPOINTS.
It is the journey of a user in a service, described through a chronological sequence of
actions and through corresponding touchpoints.
It provides a vivid but is a synthetic representation of a service user’s experience.
The process is mapped from the user perspective, describing what happens at each stage of the
interaction, is built through points of interaction between the customer (user) and the service.
Each touchpoint might be enriched with other layers representing emotions, value obtained
etc…
Touchpoints can be digital, physical, a person, an object, a place
It is important to connect them to show the overall experience.
Touchpoints are defined by answering: How people get in touch with this solution?
GOALS:
It enables the identification of both problem areas and opportunitiesfor innovation.
To comparediverse experiences
It provides a general overview of the whole user experience
MAIN STRUCTURE:
Pre: What happens first when I enter the service
During : What happens during the service
Post: What happens at the end of the service

Storyboard
It is a visual representation, a story that describes how the user is going to interact with the service
during a specific situation of everyday life.
REQUIREMENTS:
To identify a specific context in which the actions take place
The involved characters →it build upon personas
To select the key moments to present
GOAL:
Explore and explain motivations for certain user needs and behaviors
Express the value of the service experience and how it contributes to people’s life →Stories
have an evocative power, promote empathy and understanding
The storyboard makes it easier to imagine the product in the users' hands.

STORYBOARD IS A VISUAL REPRESENTATION OF HOW THE CUSTOMER INTERACTS WITH

THE PRODUCT/SERVICE→COMMUNICATION
CUSTOMER JOURNEY IS A MAP TO LOOK AT THE BIG PICTURE. IT MAPS THE WHOLE
EXPERIENCE OF A CUSTOMER→COMPREHEND megèrt

DESIGN-PUSH
Process driven socio-cultural and semantic competencies

Product/process innovation that typically revolve around intangible attributes of the product

S-Shape curves
▪ Time based evolution of a single parameter of a technology
Electric vs. Petrol engine in automotive EXAMPLE
How does the DD emerge

• Different technology opportunities (different architectures)

• Hardly one outperforms the others along each possible performance

Driver:

• Complementary assets: distribution, brand, services, capacity…

• Strategic Manouvering (e.g. externalities)
• Better understand of the customer needs
• Rules and laws

Dominant Design
• It is the architecture winning on the market
• Winning architecture able to summarize innovations introduced by previous products
• Archetype of the product in both the designer and the user imagination
• It gives an answer to the need of a large number of people
• It reduces the number of requirements to be satisfied
• It may imply constraints
• It normally freezes the socio-economic context

Disruptive Technologies
• 14” disk drives dominated the market
• 8” drives next generation, based on similar technology, similar architecture, similar
organizational capabilities
• yet, companies that dominated 14” market failed to transition to 8”
• why?
• they looked at 8” as inferior to 14” their customers (mainframe computer makers) had no
interest in 8” because 8” had less storage capacity But, 8” drivers were VERY much of interest
to the emerging market of MINICOMPUTER MAKERS • Over time, the 8” drives developed all
the storage capacity of 14” drives, and drove them out of the market
• 5.25” drives: story repeats the 8” players miss the transition
• 5.25” drives lacked the capacity of 8” drives, viewed as inferior (in
• terms of storage)
• because minicomputer makers were not interested in buying these, the established disk
drive suppliers were not interested in making them
• however, there WAS a market: the new PC makers wanted 5.25” disk drives because they
were smaller
• and new suppliers entered to fill the needs of that market
• Eventually, the 5.25” drives improved enough so that their capacity matched and surpassed
8” drives
A few key points on disruptive innovation

• Disruption is a process
• Disrupters often build business models that are very different from those of incumbents.
• Some disruptive innovations succeed; some don’t.
• The mantra “Disrupt or be disrupted” can misguide us

INNOVATION OF MEANING
It is an Innovation that aims at changing the ’’ReasonWhy’’ people experience a
productor service. It is based on a deep under standing on how society is changing to
envision which will be the new meanings asked by customers.
It is based on 3 principles.
An inside-out process: the new meaning is coming from the inside of a company, as a
company vision about the evolution of the market, rather than from expressed or latent
needs in customers(Verganti, 2009).

An ermeneutic approach: the new vision originates from the interpretation of society
and the weak signals coming from people while performing any kind of activity(Oberg,
Verganti, 2013).

The cyclesof criticism: the vision is refined through cycles of creative criticism among
actors(Verganti, 2016).
Functional meaning Symbolic meaning

• Mean of transportation • Sustainability

• Healthy
Emotional meaning
• lifestyle
• Enjoying a sunny day • Freedom

Envision New Meaning

In a world where [insert the driver of change]
I want a solution that [perspectiveof the user]
Because[meaning]
Socio Cultural Changes - Example
• People start to choose future jobs based on their free time, rather than high salaries
• People are searching for new rituals to cope and reconnect with others and physical
reality.

In a world where detoxing from constant connectivity is crucial for

wellness
I wanta solution that allows me to do handwork at home
BecauseI needto re-connectto myself
How to talk about meaning?
METAPHOR = understanding and experiencing one thing in terms of another
→A watch is a tool --→ A watch is a tie

The meaning-making process – WHY DO YOU GO THERE?

The influence of the dominant culture

Interpretation of a sign varies depending on the culture surrounding an individual. Any sociey
provides classes of interpretation among whose the individual derive her own meaning

An individual nature
Mediated by culture, meaning-making is an individual activity which strongly depend on
the individual’s experience. Meanings are continuously re-constructed in different ways
by different people

An continuous and unconscious process

The continuous, individual, re-interpretation of meanings is mainly unconscious. It is a
background activity that is activated by any sign people encounter during their daily life

The peak end rule

Daniel Kahneman (Thinking, Fast and Slow –2011) suggests that human beings are irrational, and
hence flawed. Due to our limited memory capacity, we remember only some specific parts of an
experience: the peak and the end. This is known as the peak-end-rule.

The moment of meaning

The “Moment of Meaning” (MOM) represents a single interaction of the user with the
Product-Service system which embeds all abstract, emotional and meaning-related
characteristics.

What is a Technology?
Technology Management
General Purpose Technology (GPT)
1. GPT are a set of core technologies that have key functions of generating and spreading
incremental or radical innovations in different fields, activities and sectors (Bresnahan and
Trajtenber, 1995; David, 1991; Helpman and Trajtenberg ;1994)
1. pervasiveness
2. inherent potential for technical improvements
3. innovative complementarities
2. Scholars have shown how in the past the traditional way to develop and integrate GPT
was by licensing them (Gambardella and Giarratana, 2013)

Technology Epiphanies
Technology Epiphanies: describes a type of innovation that involves reimagining technology
in a way that fundamentally changes the way we interact with it.
Verganti explains that Technology Epiphanies arise when innovators challenge conventional
thinking about a technology and ask themselves, "What else could this technology be used
for?" This leads to new and unexpected uses of technology that are not immediately
obvious.
Technology Management
1. Technology Selection: the moment in which the technology is chosen among all the
possible opportunities that are present in an uncertain environment
2. Technology Development: the moment in which the technology is start to be explored
through experimentation
3. Technology Integration: the moment in which the technology is embedded in a final
product
There are two perspectives toward development
 • Normative starting from a defined point in the future backcasting the steps
• Explorative the endpoint is unknown exante
The most spread process representation is the funnel one it usually leads to technology
substitution
Proxemics helps in understanding the context
It is a design approach called Proxemics to envision future interactions between: bodies
(people), objects (technology), spaces (context).

Why Experimentation
Experimentation helps us to answer the kinds of questions that all organizations confront:
How do we know what products to make, what customer experiences to offer, and what
information we need to make those decisions?
"I have not failed. I've just found 10,000 ways that won't work Learn with both your head
and hands"

Crafting a technology epiphany: a process

Data-Driven Innovation
RunKeeper, personalised run, changment of the media, Netflix on the phone
Customize: modify (something) to suit a particular individual or task
Personalize: design or produce (something) to meet someone's individual requirements
Orthogonal Two-Sided Platforms
Enhanced Advertising Model
“Enhanced advertising improves on the traditional
advertising-based mechanism by using customer data to
help advertisers target their messages.”

Data Trading Mode

“Companies can generate revenue from user data in a much more
direct way—by selling user data to a third party”

E-Ethnography Model
“Companies employ user data to improve their core products or
services and to develop their relationship with their
customers”

Traditional Nontransaction Model

 Data

Driven Innovation
• How to design a service based on the Client-As-a-Source two-sided markets

Platform Thinking
Product Platform strategy
• Average obsolescence time (from launch time to the 50%-off time):
• Sony: 2 years
• Competitors: 1,2 years
• Longevity due to market strategy: niches(sport, Kids, Hi-Fi addicted…)
• Competitors cannot get into the niches already filled by Sony and are forced
to stay on the mass market competing through higher innovation frequency
Platform: a set of components, along with and the linkages among them, common
to different products.
• Note: a platform is NOT a product itself

Internal platforms: a set of assets organized in a common structure from which a

company can efficiently develop and produce a stream of derivative products.
• Examples: Sony Walkman

Industry wide platforms

 • External or industry platforms [are] products, services, or technologies
developed by one or more firms, and which serve as foundations upon
which a larger number of firms can build further complementary
innovations and potentially generate network effects.
• There is a similarity to internal platforms in that industry platforms provide
a foundation of reusable common components or technologies, but they
differ in that this foundation is “open” to outside firms.
• The degree of openness can also vary on a number of dimensions—such as
level of accessto information on interfaces to link to the platform or utilize
its capabilities, the type of rules governing use of the platform, or cost of
access
Industrywide platforms:
products, services, or technologies that act as a foundation upon which external
innovators, organized as an innovative business ecosystem, can develop their own
complementary products, technologies, or services.
• Examples: Intel/Microsoft/IBM, iOS
Network externalities: direct or indirect?
• Direct network effects: An increase in usage leads to a direct increase in
value for other users.
o For example, telephone systems, fax machines, and social networks
all imply direct contact among users. A direct network effect is called
a same-side network effect.
• Indirect network effects: Increases in usage of one product or network
spawn increases in the value of a complementary product or network,
which can in turn increase the value of the original.
o Examples of complementary goods include operating systems and
game consoled. This is why Windows and Linux might compete not
just for users, but (also) for software developers. This is also called a
cross-side network effect. It is typical of two-sided markets.

Two (or multi) Sided Platforms:

products or services where two or multiple groups of customers are get together
through a platform that internalize indirect network externalities
• Examples: Airbnb, Uber
ORTHOGONAL (Client-as-a-Target)
ORTHOGONAL (Client-as-a-Source)
Orthogonal Two-Sided Platforms can exploit their ability to manage different sides by
externalizing part of the value creation process and evolving towards Hybrid Multi-Sided
Platforms.

NO PLATFORM: LINEAR VALUE CHAIN: suppliers -> firm → customers

Platform thinking is the ability to use platform-based mechanisms to unlock digital

business transformations
Opportunities
• Scalability: they are (often based on a zero-marginal cost structures)
o E.g.: Spotify VS Airbnb
• Potential for disruption: fast diffusion in multiple markets
o E.g.: AirBnb, Uber
Challenges
• Chicken and Egg Paradox: to get on board the two sides, without having the
other, is difficult…since the platforms is worthless
• Double (or multi) sided value proposition: it needs to be designed…leveraging
the right ingredients
Takeaways:
1)” Platform” became a buzzword, in the innovation field it has different meanings
that range from internal or product platforms to transactional two-sided platforms
2) Successful (multi-sided) platforms are Idle Asset Hunters, reaching the success
with a transactional two-sided platform is (often) just the beginning of a long
innovation journey
3) Platform thinking is the ability to use platform-based mechanisms to unlock
digital business transformations
 L&I – Questions Innovation 1/2023
Innovation of Meaning

Most weekday mornings, Cate, who runs her own company, logs onto a session on Groove, a platform
for video calls that creates a virtual space for people to get their tasks done alongside up to three
strangers (“groovers”).

Groove was founded after the pandemic and is a service that offers 50-minute on-demand coworking
sessions thanks to the simple use of video conferencing technology. Each session consists in a video call
where each groover (1) shares their daily goals, (2) can go off video while working on their tasks, and, at
the end of the session, (3) reports back on how much was accomplished. By staying on the session,
other groovers hold you accountable in a low-stakes way. This system provides structure to those who
work alone (creatives, writers, self-entrepreneurs…) and lack the organizational structure, helping them
accomplish their task objectives.

By reading the text…

A. Groove is a clear example of Market-pull innovation: people working alone have requested a
solution to give structure to their work sessions.
B. Groove is an example of Tech-push innovation: Groover’s creators built the service around the
video conf erencing technology.
C. Groove innovated the architecture of coworking spaces f rom physical to virtual.
D. Groove innovated the meaning of video calls.

Justification:
By “Innovation of meaning” we mean radically changing the reason WHY people use a current
solution, after sensing possible socio-cultural changes (drivers of change). In this case, Groove
changed the meaning of video calls in the work environment: they are no longer used to actively talk
with/listen to your colleagues about a project, they are now being used to have people that “hold you
accountable in a low-stakes way”. For most of the session, you are quietly working, not talking.

A is wrong as the text does not mention people asking for a virtual co-working solution. Groove is
likely an inside-out solution that was created after sensing some socio-cultural changes due to the
pandemics.
B is wrong because Groove is not the result of the willingness to push a new technology out in the
market
C is wrong because the online meetings are not meant for collaborating; it is not architectural
innovation, because these online meeting rooms have a different purpose (holding accountable).
Market Pull Innovation

Among the many challenges people living with amyotrophic lateral sclerosis (ALS) face, is its impact on
their speech: the progressive disease makes patients ultimately lose the ability to speak.

For years, people with ALS have been able to plan for this eventuality by creating a digitized version of
their own voice, a process known as voice banking. But voice banking is time consuming, costly, and
tempting to postpone. Thus, people with ALS often express their distress with this technology.
Starting soon, people will be able to easily create and use a digitized version of their own voice using an
easy to use piece of equipment they already own: an iPhone, iPad, or Mac. That’s thanks to Personal
Voice, a new Apple accessibility feature. While only representing a relatively small change in the
technology itself, Personal Voice has the potential of easing the process by a large extent. It needs only
15 minutes of spoken phrases for training and does all processing locally.

When it’s possible for people to use a voice that sounds like themselves, it can be a deeply meaningful
part of the experience. “I want my family to hear my synthetic voice and not think that I’m a robot,”
explained a patient, “But that I’m the same person that I was prior to my diagnosis.”
A. Apple’s Personal Voice is an example of technology epiphany, because it develops a new
technology and responds to new users’ needs.
B. Apple’s Personal Voice innovates the meaning of voice banking
C. Apples’ Personal Voice is a radical innovation that leverages on the ethnographic observation of
patients.
D. Apple’s Personal Voice is an example of market pull innovation.

Justification:
Key sentence: “Thus, people with ALS often express their distress with this technology.”
Market pull innovation is an incremental approach to innovation that leverages insights from the
users to identify clear problems before solving them. Apple’s Personal Voice does that: it addresses
known problems that ALS patients face with the current process of voice banking (considered as
“time consuming, costly, and tempting to postpone”).
A is wrong: Technology epiphany changes the meaning of a product through a changed adoption of
technology; there is no research for new needs. Also, technology epiphanies do not necessarily
develop new technologies, but they develop new applications.
B is wrong because the meaning of voice banking stays the same: “to have an artificial voice that
sounds like themselves before the diagnosis.”
C is wrong because it is not a radical innovation, but an incremental one (“While only representing a
relatively small change in the technology itself…”)
Platforms

Fastest Known Time (FKT) is an online platform and community dedicated to tracking and documenting
the fastest known times on various routes or trails in the outdoor sports world. In 2018, Peter, Jeff and
Craig started the FKT and since then users submitted 3,358 FKT Routes and 8,120 FKTs from all over the
world. Due to the popularity, FKT has a unique and curated database of the selected best routes in the
world, who did them, and how fast. Users can download data for free such as GPS tracks and the time
records. To cover the costs, the FKT platform features generic advertisements of running equipment.
Recently, Peter, Jeff and Craig sold the platform to Outside Interactive Inc, a publisher of numerous
iconic magazines in the outdoor scene such as ‘Trail runner’, ‘Climbing’ and ‘Outside Magazine’.

A. FKT is an orthogonal two-sided platform which applies the enhanced advertising model
B. FKT is an orthogonal two-sided platform which applies the data-trading model
C. FKT is an orthogonal two-sided platform which applies both the enhanced advertising model
and the data-trading model
D. None of the above

Justification
Key sentence: “the FKT platform features generic advertisements”.
While FKT does represent a two-sided platform, none of the models (enhanced advertising nor data-
trading) apply. We have two sides (Advertising companies and sport passionates) connected by the
platform, a generic orthogonal platform using customer as a target strategy; yet:
a) The advertising model is not based on customer data to target the messages
b) Although the data is downloadable, the data is for free
c) See answers A and B.
What is Innovation

CRISPR-Cas9 is a powerful gene editing method that allows scientists to modify the DNA of living
organisms with remarkable precision. The key discoveries and advancements related to CRISPR -Cas9
occurred in the early 2010s. The technique utilizes a natural defense mechanism found in bacteria to
target and edit specific genes.

CRISPR-Cas9 has shown promise in correcting genetic mutations responsible for certain diseases. In
2017, CRISPR-Cas9 was used to correct a gene mutation in human embryos associated with a genetic
heart condition called hypertrophic cardiomyopathy.

CRISPR-Cas9's simplicity, versatility, and efficiency have revolutionized genetic research and have the
potential for significant applications in medicine, agriculture, and biotechnology. However, it's
important to note that ethical considerations and regulatory frameworks are essential when using this
powerful gene editing tool.

Does the CRISPR-Cas9 method represent an innovation in 2017?

A. Yes – Scientific research led to the new discoveries of CRISP-Cas9

B. Yes – It is the implementation of a new method
C. No – Gene therapy is no new concept, and thus the method is not an innovation
D. No – It was never used on the market yet

Justification:
Key sentence: “In 2017, CRISPR-Cas9 was used to correct a gene mutation”.
A. False: A new discovery in science is not sufficient for being an innovation; it is an invention
B. True: Innovation means the implementation of a new or significantly improved product – as we
do have in this case
C. False: Being innovation requires invention and exploitation. That it was invented in 2010
doesn’t mean that someone can innovate using the method later on.
D. False: 2017 is the year where it is effectively used on the market
Tech Push

Skyryse is a California-based startup focused on autonomous flight technology. They are developing an
advanced vertical takeoff and landing (VTOL) system that can transform existing helicopters into
autonomous vehicles. Skyryse aims to make urban air mobility accessible and safe. For this reason, it is
integrating AI, computer vision, and sensor fusion technologies to develop an innovative steering
system.. Their unique approach to retrofitting helicopters with autonomous capabilities sets them apart
in the evolving urban air transportation sector. Today, only few and wealthy individuals have access to
their products due to its’ above-average pricing.

The technology offers a highly efficient and eco-friendly mode of transportation, challenging traditional
modes like cars and public transportation.

What kind of innovation does Skyryse represent?

A. No innovation – they are merely retrofitting existing aircrafts

B. Architectural innovation
C. Early-stage technology push innovation
D. A new dominant design

Justification:
A. False – even though they are changing the infrastructure of existing aircrafts, they are
introducing a new technology
B. False - Architectural innovation represents the way individual components work together, and
this doesn’t change. It could be component innovation, because a new components (the
VTOL) is added
C. True – Skyryse is bringing a new technology to the market, which currently can be accessed
only by the innovators (according to Rogers)
D. False - Innovation cannot be directly conceived as a dominant design. The DD emerges when
a variety of competing designs exist (from a fluid phase).
Fifth Call Leadership and Innovation – INNOVATION
Q1. What is innovation

Peloton is an American company founded in 2012 which changed the world of indoor cycling. The
objective of the company is to propose a new fitness system, based on the combination of
different technologies and a particular design, that enables people interested in cycling to do
fitness directly from home while balancing their jobs and private lives. Peloton offers a classic
home-installable bicycle on whole handlebar a 22” touchscreen (very user-friendly) is
implemented. During the day the user can attend different training classes transmitted in live
streaming through the screen from the recording studio located in New York. The subscription is
affordable (39$ per month) and grants access to 14 live sessions per day and more than 5000 on-
demand cycling contents. The classes are interactive, as your name appears on a screen visible to
all. In this way, participants can “compete” with each other during the training and the coach can
provide personalised communication and motivation to the single users during the class.

The innovation described in the text is:

A. A component innovation because it provides a new technology, which improves the fitness
system
B. An architectural innovation because it provides a new product/service integrating in an
innovative way existing technologies
C. A disruptive innovation because it completely revolutionised the way in which companies
provides indoor cycling services
D. The solution provided is not an innovation, because there is no newness

Justification:
The correct answer is B.
Peloton is an architectural innovation because it combines existing technologies (home-installable
bicycle, touchscreens, live streaming) to provides a new product/service to people interested in
indoor cycling.
It is not a component innovation because Peloton product is not a component in a system, but it is
composed by more technologies, and thus, it can not be considered a Component Innovation (B is
wrong).
Then, Peloton cannot be considered a Disruptive Innovation because there is no hint to anything
“completely new” from the bottom of the market that supplants existing business models for
indoor cycling (C is wrong).
Finally, option D is wrong because the combination of elements is actually new
Q2. Tech Push

In 1980, an American entrepreneur name Charles Hull was trying to find a way to create a system
able to rapidly provide prototypes and easily create small custom parts. Some years later, in 1988,
his company released the first commercial 3D printer, based on stereolithography (SLA)
technology. Over the years, 3D printers evolved from a technological, moving from SLA to
selective laser sintering (SLS) or fused deposition modelling (FDM), and design point of view, with
the diffusion of computer-aided design (CAD) tools to develop 3D models. This evolution allows to
decrease initial costs and prices, making 3D Printers available to the general public.
Today, 3D printing is considered an important innovation for manufacturing activities and it
provides several opportunities to other different industries. 3D printers enable individuals and
companies all over the world to design their own custom products, providing efficient,
customizable, and affordable production. For instance, companies and institutes interested in
medicine and biotech are using these printers to design highly customized prosthesis, spending a
fraction of what it would cost with conventional options. In addition, universities (e.g., Carnegie
Mellon University) are analyzing how to use 3D printers to generate effective printed organs, using
hydrogels or other components (e.g., heart valves).
The 3D printers, thus, are an example of:

A. An orthogonal platform
B. Market-pull Innovation
C. Technology-push Innovation
D. Innovation of meaning

Justification:
No mention of a platform in the text
It cannot be considered an Innovation of meaning because the innovation is not related the “new”
meaning that the technology received over the years. Answer D, thus, is wrong.
It is not a Market-pull innovation because the market was not involved in the process of
technology development and the technology development did not start from market’s needs. On
the contrary, the technology offered to companies in different sectors several opportunities for
customized production. Answer B, thus, is wrong.
The innovation presented is a technology push innovation, as the printer technology was applied
after its’ development to a variety of fields.
Q3. Tech Epiphany

Smart textiles - also called electronic textiles, e-textiles, smart garments, and fabrics, have a digital
component embedded in them. It can be a battery, a led, an electronic chip, or a sensor. The
technology is incorporated into the fabric through various methods, such as conductive fibres or
multilayer 3D printing.
Smart textiles have found most of their application in the military and medial sector. They monitor
the physical conditions of soldiers and patients. Only recently, they have caught the attention of
the fashion industry, which found different uses for them.
Adidas, EA SPORTS FIFA Mobile and Jacquard™ by Google, created Adidas GMR. Adidas GMR is an
innovative shoe that uses smart textiles to improve the shoe performance and connect real-world
physical football and digital gaming. Adidas GMR measures kicks, shot power, distance and speed.
When you engage in real-world football activity through a series of specifically created challenges,
you can earn rewards and improve your FIFA performance.

A. Adidas GMR is a technology epiphany because it integrates smart textiles in the new
application field.
B. Smart textiles are following the typical S-Shaped: they were invented, then they took off in
the military, health, and fashion industries.
C. Adidas GMR is not a technology epiphany because it is proposing the same meaning as
previous garments
D. Adidas GMR follow a market-pull approach because it captures the latent needs of
consumers.

Justification:
The answer is A (Adidas GMR is a technology epiphany), because Tech Epiphanies entail a change
in meaning in the application field. à The introduction of smart textiles in the sportswear
application field allows to uncover the new meaning of sports shoes: from “technical tools for my
training” to “mirroring tools to connect my physical training with my online game”
B – Wrong. Changing the industry is not a valid reason for following an S-curve
C – Wrong. It changes the meaning (see above)
D – Wrong. Although it might meet latent needs, it does not follow an outside-in approach using
user analysis tools.
Q4. Market Pull

Dealing with medication can often be a bigger pain than the ailment itself. Standing in long lines at
the pharmacy, keeping up with expiration dates, making sure you take this medicine with food and
that one on an empty stomach—it can be overwhelming.
An online pharmacy called PillPack had a mission to make it easier. PillPack worked to build a
prescription home-delivery system that takes the pain out of the whole process.
Here’s how it works: Your doctor sends your prescriptions straight to the pharmacists at PillPack,
who organize the medications—including refills, over-the-counter drugs, vitamins, and
supplements—into presorted, personalized packets. These tidy little packets are labeled by date
and time and delivered to your doorstep. Every 14-day supply of medication fits neatly into
durable dispenser that is meant to become part of customers’ routines and fit seamlessly into
their homes.

The company redefined how consumers engage with their pharmacy. The result was a set of tools
that reflected a true understanding of patients.

A. Pill-pack is an example of market-pull innovation.

B. The pill-pack pharmacy is a two-sided platform that connects doctors with patients
C. Pill-pack is an innovation of meaning, as it changed the meaning of the pharmacy.
D. None of the above

Justification:
Pill-pack is an example of a market-pull innovation. More specifically, it is the result of putting the
user (pharmacy customers) at the center. From the first lines it is clear that their whole mission is
to make the patient’s life easier. They focus on their pain points, and problems.
B – Wrong. It is not a platform as doctors are not interacting in any way through pillpack with the
patients
C – Wrong. Innovation of meaning is inside-out, while PillPack is clearly outside in
D – It’s A.
Q5. Platforms

Doctor.One, a Polish start-up, has created a health service named after the company. It offers
daily connections between patients and their regular doctors through a mobile-focused approach.
Unlike other telemedicine services, Doctor.One provides daily telemedical assessments instead of
appointment scheduling. Doctors can communicate with patients through the platform's chat,
initiate video calls without revealing their phone number, and prescribe medications. What type of
platform does Doctor.One represent?

A. Internal platform
B. Product platform
C. Orthogonal platform
D. Transactional platform

Justification:
Doctor.One is a transactional platform, where patients and doctors (two sides) are directly put in
contact. The platform manages the connections, while externalities are generated that attract
increasing patients when the number of doctors increases and vice versa.
The platform is not orthogonal, as there is no evidence of data being sold.
It is no internal platform no product platform, as there are no products on which complementary
ones are built.
 L&I – Questions 2022 - SOLUTIONS
Q1 - What is Innovation

San Francisco startup AliveCor was looking to create a next-generation heart monitor for the
140 million people affected by Atrial Fibrillation and had developed the technology to use a
client’s mobile device to help manage heart conditions anywhere, anytime.
AliveCor designed a monitor that fits into the user’s lifestyle and makes collecting information
effortless. The result, the AliveCor Heart Monitor, is 50 percent thinner and 40 percent lighter
than the earlier versions, with all of the same medical-grade functionality. Today, patients use
the monitor to record ECGs, detect Atrial Fibrillation (AF) and normal rhythms, and track a
comprehensive list of symptoms, medications, and activities, putting their health and peace of
mind into their own hands.

The AliveCor Heart Monitor can be described as…

A. an incremental innovation because it adds a technology that uses the client’s mobile
device
B. an incremental innovation because it improves the current product performance
C. a radical innovation because it allows patients not only to record their ECGs, but also to
have their health into their own hands
D. an innovation of meaning because it allows patients to have their health into their own
hands

Justify your answer

It is an incremental innovation, but the incrementality is in the enhancement of

existing performance attributes, particularly the weight and the dimensions
A- The new version, AliveCor Heart Monitor, is simply an improvement of previous
versions
B- Yes: there is an improvement in current performance, (50% thinner and 40%
lighter)
C- It is incremental: there is no change of meaning, no change in technology
functionalities
D- No change of meaning: There is no hint to the fact that users may buy the
product for a different reason; the incremental changes simply enabled new
usages of the product.
Q2 - Tech Push Innovation

Lemonade is an Israelian insurance company founded in Tel Aviv in 2015 that leverages AI to
reduce the time needed to get insurance for pets, houses, or cars. By substituting human insurers
with an AI, in their platform the insurance delivery time is reduced from months to minutes. This
happens because, if you apply for insurance with Lemonade, the entire back-end process will be
carried out instantaneously by an autonomous system, from document assessment to the rating
and pricing of your offering. Lemonade feeds the data provided by the user to the AI system,
which returns to the user feedback on the possibility to obtain an insurance.
You will be asked to deliver the same documents required in a traditional insurance process; but
during your customer journey, you will never interact with other humans if you don’t find major
obstacles to obtaining your insurance.
How would you define this innovation, compared to traditional insurance businesses?

A. Technology Push Innovation – The AI adoption leads to a totally new way of experiencing
insurance purchasing on the customer side
B. Innovation of meaning – Lemonade revolutionizes the whole insurance experience by introducing
AI, thus changing the meaning of the insurance experience
C. Incremental Innovation – Lemonade represents an incremental change in the previously existing
insurance firms
D. Platform Innovation – Lemonade leverages data to provide a feedback to the user on the
possibility to obtain an insurance (client-as-a-target strategy)

Justify your answer

A. True – the novelty of AI solution led Lemonade to rebuild the operating model of an insurance
company the roots. From the customer side, what changes due to AI adoption is (1) they do not interact
with humans in the process anymore, and (2) they receive the insurance offering with a shorter lead
time. The meaning connected with the insurance remains the same.
B. False – during the process you will be required to deliver the same documents, and at the end you
will receive the insurance. The reason why a user uses the service is the same – gaining access to an
insurance.
C. False – Even if the procedure on the customer side is essentially the same, the innovative operating
model of Lemonade disrupted the insurance market, producing a completely new way of issuing
insurance.
D. False – Lemonade is simply the result of AI adoption in the backend, with no further sign of being a
transactional or orthogonal platform. Using data is not a sufficient condition for being a platform.
Q3 - Technology Epiphany

IKEA is set to launch an air-purifying curtain coated with a mineral-based surface that breaks down
common pollutants. The surface of the curtain is treated with a photocatalyst mineral that causes air
pollution to break down when light shines through it, allowing users to purify the air in their own homes.

The technology is not new and already used in different industries. It works in a similar way to
photosynthesis – the natural process that plants and some other organisms use to convert carbon dioxide
and water into food, using light.

The curtain is designed to reduce the problem of air pollution, which is becoming increasingly acute as
more of the global population flock to cities. This can act as an answer to trends about sustainability within
the domestic environments, as people are becoming more sensitive to making the indoor spaces not also
comfortable but also healthy.

A. IKEA’s air-purifying curtain is a market-pull innovation since it is based on applying cutting-edge

technology to an existing product category bringing value to the market.
B. IKEA’s air-purifying curtain is a technology epiphany since they combine existing technologies –
textile treatment with photocatalyst minerals - to enable a new meaning for curtains.
C. IKEA’s air-purifying curtain is an innovation of meaning since it addresses latent needs of society.
D. None of the others.

Justify your answer

A – Incorrect, the definition of market-pull is wrong as in market-pull innovation the main driver is
answering to market needs and not the application of cutting-edge technology.
B – Correct, an existing technology is applied from a different field to give a new meaning to an object
traditionally bought for decorating the house. The technology application allows IKEA to develop a
product that makes indoor spaces healthier and not only beautiful. The meaning changes from
“dimming the light” to “producing clean air”
C – Incorrect, the answer is partially correct. The curtain has a new meaning . But this is not related to
latent needs in society. Identifying and answering latent needs is market-pull innovation
D – Incorrect.

Reference: https://www.dezeen.com/2019/02/19/ikea-air-purifying-curtain-gunrid-design/#
Q4 - Platforms

One of the most sensational news of this 2022 is the proposed acquisition of Twitter by Elon Musk for $43
billion. Few days ago, though, Elon Musk broke the deal. Twitter is one of the smallest social networks in
terms of daily active users (152 M) and revenue (US$ 3.5B in 2019), if you compare this with Facebook’s
1.8B daily active users (US$ 71B revenue in 2019) or even with TikTok’s 800M daily active users.

Yet, Twitter has a disproportional impact on society also due to its particular platform business model:
through the use of hashtags, content can travel around the network independently of one’s circle of
contacts, potentially reaching millions of people interested in that topic. While Twitter has an advertising
component like most social networks, Twitter does not base its business model primarily on targeting
users with ads. What makes Twitter interesting is the provision of data that can be used in different ways
- think of president Obama's election, the ability to conduct sentiment analysis, and much more. This
generates endless possibilities for analyzing specific topics, understanding the reactions of people in a
matter of minutes. Twitter understands the value of collected data and provides stakeholders with the
ability and assets to work on aggregated user data.

Based on the above considerations, which platform model does Twitter correspond to?

A. Twitter is mainly an Orthogonal Two-Sided platform, because by tweeting and expressing their
opinions on the social network people are targeted for advertising and market research.
B. Twitter is mainly an Orthogonal Two-Sided platform which applies the enhanced advertising
model. They use the data collected to increase the precision of the advertising messages by
targeting the messages based on the data created during the use of the basic service.
C. Twitter mainly is an Orthogonal Two-Sided platform which applies the data trading model. They
use the collected data, generating revenue in a more direct way: aggregated user data and sold
to third parties.
D. Twitter mainly is an Orthogonal Two-Sided platform which applies the E-Ethnography model. They
use the collected data to study customer behaviour, sharing that with the various stakeholders
and improving the core products and services.

Justify your answer

A. False – It intentionally mixes some definitions related to orthogonal (Client-as-a-Source) platforms.

Although it is true, the entire definition is incorrect.
B. False – This is what Amazon, Facebook, Instagram (but not Twitter) do in an interchange between
client-as-a-target and client-as-a-source, where messages are targeted to specific sets of users.
C. True – Twitter applies the client-as-a-source logic: the main focus of Twitter is to identify other
actors that need aggregated data to do market research. This platform is based on uni-directional
network externalities. The data collected will have more value to the third parties the more end users
there are to generate it, but the platform does not necessarily acquire more value as the number of
third parties involved increases.
D. False – In this case, companies employ user data to improve their core products or services and to
develop their relationship with their customers. Also here apply the client-as-a.source logic, but in a
different way. Such companies are mostly product companies that leverage apps to collect information
about users.
Q5 - Market Pull

You are working in the research and development (R&D) department of a manufacturer of racing bikes.
Your company is sponsoring one of the best time trial cyclists in the world and a time trial win on big
events like the Giro d’Italia and the Tour de France would boost the sales of the bikes. You are asked to
provide inputs for the development of a new time trial bike for the final time trial stage of the Giro d’Italia
for the sponsored cyclist. You know that subtle differences of the bike which are difficult to observe can
make the difference between winning and loosing. Taking into account specific characteristics such as the
aerodynamics of the cyclist’s position on the bike, as well as specifics of the course such as climbs,
descents, road surfaces and corners is important.

To develop a competitive bike for the sponsored athlete, which user need analysis fits best?

A. Questionnaires: launch a questionnaire among the world’s top time trial cyclists to find out their
preferences for different aspects of the bike in the circumstances of the time trial stage of the
Giro d’Italia.
B. Focus groups: invite a small group of top time trial cyclists to discuss the important aspects of the
bike in the circumstances of the time trial stage of the Giro d’Italia.
C. Ethnographic research: analyse videos of time trial events to discover how the current time trial
bikes are used in similar time trial events.
D. Beta testing: involve the sponsored athlete to test the current model of the time trial bike in
similar circumstances as the time trail stage of the Giro d’Italia and use measurement results to
improve the bike.

Justification

the information is ‘sticky’ as the text mentions that the needs are ‘subtle’ and ‘difficult to observe’.
Questionnaires/focus groups and ethnographic research are unlikely to capture this type of user needs.

a) Wrong: the information is ‘sticky’ as the text mentions that the needs are ‘subtle’ and ‘difficult to
observe’. Questionnaires/focus groups and ethnographic research are unlikely to capture this
type of user needs.
b) Wrong: Focus groups helps to generate information on “what people say”, not adequate here
c) Wrong: Ethnography generates information on what people do, would be adequate to observe
different behaviours, but in this case the behaviours don’t change; the information are difficult to
observe.
d) Correct: beta testing is an adequate method to capture sticky user needs: it is specific to the
context, and to understand it, it is necessary to not only observe, but make the user use the
product in its’ context of use
Third Call Leadership and Innovation – INNOVATION
Q1. Dominant Design

Hang accessories sells a particular kind of trolley bag: “A "trolley bag" is just a rolling luggage bag.
But a "fashion trolley bag" is something special. A fashion trolley bag is something you'll be proud
to roll down the concourse. Strictly speaking, both are rolling bags. But a fashion trolley bag like
those at Hang Accessories are fashion statements.”
Until as late as the mid of the 20th century, the trolley was considered a female-only way to travel.
The trolley bag is a wheeled suitcase with a hard shell. Today, most individuals carry a trolley bag
when they are travelling – its’ wheels and rigid shell allow to transport comparatively large
amounts of garments in a protected way, without having to carry a heavy bag. The design of the
trolley has become so diffused that airline companies use the trolley design to demonstrate the
size of the luggage a passenger may take on board; on board of trains, trolley images are used to
demonstrate how luggage should be positioned in an appropriate position. Today, the trolley
represents a symbol of what travelling means in the 21st century – an easy way of moving even for
short periods of time, on business or leisure travels, without the need to carry anything in your
hands.

Based on the above reported information, what is the right statement among the following ones?
A. The trolley is an innovation of meaning
B. Hang accessories is introducing a new fashion version of the trolley, which demonstrates
that they aim to enter a new fluid phase of multiple designs
C. The trolley summarizes a large number of previous innovations
D. The trolley freezes the current socio-cultural context

Justification:
The trolley represents a dominant design. The dominant design is the architecture winning on the
market, which becomes the archetype of the product in the user’s mind.
A. False; the trolly represents what travelling means, but the meaning of having a trolley (i.e.
transporting clothes) is the same as any other bags
B. False: they are building on the same design, demonstrating that that the trolley is still the
archetype of the travel bag
C. There is no evidence of previous innovations being summarized by the trolley.
D. True: today “the trolley represents a symbol of what travelling means”, hence it has frozen
the socio-cultural context
Q2. Innovation of Meaning

Recent years have witnessed an increased public recognition of the importance of behavioral
health and mental health. More public figures are openly speaking about their own mental and
behavioral issues.
Inspired by this, entrepreneur Craig Lund joined forces with researchers at Harvard Medical School
and Boston Children’s Hospital, along with a video game designer who had worked on Quick Hit
and NBA 2K. Together, they set out to design something that could teach coping skills to kids who
need to manage “big emotions,” as well as children suffering from anxiety, ADHD, and other
behavior issues, which are on the rise.
Their collaboration resulted in a video game called Mightier. To play the game, kids are first taught
simple, calming breathing exercises. During gameplay, kids wear heart-rate monitors on a wrist or
arm that detect spikes caused by stress or anger; as their heart rates go up, the game's difficulty
increases. Kids have opportunities to pause and try deep breathing to counter the ramped up
challenge. As it turns out, "gamifying" restraint builds strong incentives for kids to take charge of
their emotions—they have to, if they want to win.

A. “Mightier” uses an inside-out approach, because it is the result of the co-creation with
Harvard Medical School and Boston Children Hospital
B. “Mightier” uses an outside-in approach because it answers to the growing need for
behavioural and mental health solutions
C. Mightier innovates the meaning of games
D. Mightier innovates the meaning of heart-rate monitors

Justify your answer

A- Wrong. While Mightier is indeed born for an inside-out approach, this does not require
that it is developed jointly by different stakeholders in a co-creation process with the users.
B- Wrong. It is an inside-out innovation. Entrepreneur Craig Lund got inspired by the recent
trends from society, but did not respond to any direct need from customers
C- Yes: Mightier is an innovation of meaning: from “games for entertainment purposes” to
“games for treatment purposes”. Craig Lund was especially capable of capturing the drivers of
change in society: mental health is no longer a taboo and people are becoming more sensitive to
the topic.
D- Wrong. There is no change in the meaning of the use of heart-rate monitors.
Q3. Technology Epiphany

Hair loss resulting from chemotherapy is one of the most recognizable side effects in all of
medicine, and for many is an unwanted public announcement of their condition and treatment.
Luminate Medical may have a solution in a medical wearable that prevents the chemical cocktail
from tainting hair follicles, preventing the worst of the loss and perhaps relegating this highly
visible condition to the past.
Luminate is a device developed in partnership with the National University of Ireland Galway. It
works as a sort of mechanized compression garment for the head that prevents the blood from
reaching cells in the head in the first place. There is also no risk of damage from lack of blood flow
in those cells through compression therapy, a therapy that has been studied for years. However, a
certain amount of mechanical engineering was needed for making the experience both
comfortable and effective.
When Luminate CEO Aaron Hannon and his co-founder Bárbara Oliveira were asking patients and
doctors about areas of cancer treatment that they could perhaps innovate in, “we were just
astonished at how much hair loss dominated the conversation,” said Hannon. Recognizing how
hair is an essential element of personality and self-esteem, the product aims to be the world’s first
portable, comfortable, and effective treatment for chemotherapy induced hair loss.

A. Luminate is a type of technology push innovation: the mechanized compression garment was
designed by the company to significantly innovate the physical attribute of garments;
B. Luminate is a type of innovation of meaning: it aims to give a new meaning to the
chemotherapy treatment path by enhancing self-esteem and comfort;
C. Luminate is a type of market-pull innovation: during interviews patients were explicitly asking
for a mechanized compression garment for preventing hair loss during cancer treatment;
D. Luminate is a type of technology epiphany: it gives a new meaning to garments wore by
patients making them comfortable supports to nurture self-esteem despite the cancer treatment;

Justify your answer

A – Incorrect, the technology was implemented to find a way to prevent hair loss during cancer
treatment. The physical attributes of garments for the head changed as a consequence and not to
improve the performances of existing products.
B – Incorrect, the meaning of chemotherapy doesn’t change; the meaning of garments for the
head changes thanks to the development of technology.
C – Incorrect, the innovation generated from the company itself as a proposal to the market. User
interviews were suggesting an area to innovate in, not expressively asking for a product solving
the problem of hair-loss.
D – Correct, it is a technology epiphany as a mechanized compression garment was developed to
give a new meaning to head garments, supporting chemotherapy by preventing hair loss. The
garment for the head becomes a support for nurturing self-esteem and comfort by valuing the
emotional attachment people with cancer give to hair.
Q4. Platforms

Park4Night is a mobile application for holidays in a camper. On the app, users can find useful
information targeted to their specific needs like where to camp with a camper, the available
utilities such as bathrooms and charging points and interesting activities such as hikes and
museums to visit while staying there. To generate profits, Park4Night sells the data to
municipalities so they can improve their services for tourists while general advertising also
generates income. Park4Night can be described as:

a) An orthogonal two-sided platform using an enhanced advertising model

b) An orthogonal two-sided platform using an e-ethnography model: the data is used to
improve the services for tourists offered by municipalities based on user data.
c) An orthogonal two-sided platform using a data-trading model: the data is sold to a third
party namely municipalities
d) Two or more of the above options

Justification
a) Wrong: Although there are advertisements, the text does not mention that Park4Night
uses customer data to help advertisers target their messages. Instead, it is a traditional orthogonal
model.
b) Wrong: Park4Night is not using the data to improve their own products or services.
c) Correct: Park4Night is selling the data to a third party namely municipalities
d) Wrong: Only option C is correct
Q5. Tech Push Innovation

It's been nearly 10 years since Elon Musk's white paper exhorting the world to progress toward
hyperloop technology, which consists of a fully enclosed vacuum tube with a levitated capsule
running inside the tube at up to 700 mph; the absence of air reduces the amount of energy
needed to move the capsule forward. The hyperloop is able to reach extreme speeds because it
follows one of the most basic rules of physics: friction slows things down.
In an environment that sees mostly incremental innovations, companies like Elon Musk’s HTT
(Hyperloop Transportation Technologies) have seized a momentous challenge. Shortly after the
white paper was published, HTT's co-founders selected a group of about 100 top engineering and
aerodynamics specialists from around the world based on applications submitted on
jumpstartfund.com. The specialists devoted part of their time, outside of their daily work, to
studying the technological aspect of the hyperloop in exchange for their participation in the
company. The specialists came to the conclusion that building a hyperloop was possible by
integrating existing technology, but that further research and development was needed to make
the hyperloop financially solvent and energy positive, and that substantial work would be needed
to develop an ecosystem that would support fast and affordable public transportation.
In the coming years, hyperloop projects are planned all over the world, including Europe, creating
incredible scenarios for the world of transportation.

Considering the provided information, what kind of innovation HTT represent?

A. No innovation: the technology builds on the most basic principles of physics, hence Elon
Musk did not invent anything
B. A technology-push innovation, because it is an innovation driven by the development of an
emerging technology that requires an engineering effort in research and development.
C. An innovation of meaning, because the implementation of this technology is capable of
bringing about a complete transformation of meaning in the way we travel.
D. A technology epiphany, because the technological innovation enables the new meaning of
travelling

Justify your answer

A. False – Something could be innovative even if the basic principles are known. An invention
combines novelty and value (innovation requires the appropriation of this value). We could have
something new even building on existing principles.
B. True – The innovation that HTT has pursued stems from a desire to advance this technology
through the expertise of its team, rather than from a clear market need.
C. False – As much as the hyperloop may bring great impact to the world of transportation, to date
we refer more to tangible aspects (e.g., reduced travel time) rather than intangible ones
D. False – no new meaning is created.
Fourth Call Leadership and Innovation – INNOVATION
Q1. Tech push

What we test: Knowledge about the model of S-shaped curves

In 1969, the US military created the first connection among two computer machines through a
system named ARPANET. Yet, it was not until 1991 that the Hypertext Markup Language HTML
and Unique Resource Locaters [URLs] made it possible for individuals to navigate the so-called
World-Wide-Web [WWW]. This early version of the internet would later become known as “Web
1”, i.e. a set of connected static content pages which users could read only.
In the early 2000s, the web started to change. Technological changes allowed the web to become
more interactive, and users now had the chance to contribute in creating contents as well as
reading it. This second stage of the internet became known as Web 2.0, a read/write internet
version in which everyone could have an active role. Web 2.0 was the era of social media such as
Facebook, Twitter, and Tumblr, as well as Youtube, Wikipedia, among others.
It wasn’t until recently that also this idea of internet is being outgrown by a new version of the
internet based on the innovative blockchain technology: Web 3.0 brings the concept of ownership
to digital content, creating a read/write/own environment. Web 3.0 is based on decentralized
ledger technologies which can guarantee privacy, avoid censorship and centralization.

Considering what you learned above about the evolution of the web, which of the following
statements is true?
A. Web 1, 2.0, and 3.0 all lie on the same S-shaped curve because performance does not
change
B. Considering user interaction possibilities as a performance, Web 3.0 represents a new S -
shaped curve compared to Web 2.0
C. Web 3.0 cannot be a new S-shaped curve compared to Web 2.0, because Facebook still
exists
D. The WWW represents a single technology, thus the model of S-shaped curves does not
apply

Justification:
The S-shaped curve models represent the evolution of technologies with respect to a single
technological parameter over time, where the technology inevitably converges towards an
asymptotic limit over time.
A. Wrong: The performance does change from one curve to the other: interaction with the
system goes from reading -> read/write -> read/write/own
B. Correct: connectivity among machines and individuals was the very reason the internet was
created
C. Wrong: When a new S-curve is born, the old one does not simply case to exist
D. The WWW relies on a technology which is changing: from HTML/URLs, to “technological
changes”, to blockchain technology
Q2. Innovation of Meaning

What we test: Students’ ability to recognize an Innovation of Meaning from other forms of
Innovation in intangible products.

Beyoncé’s visual album Lemonade, released in 2016, was a masterpiece of a short film. It was also
the new pinnacle of popular music– a multi-genre epic full of anger, heartbreak, and power. It was
yet another example of how she has been changing the way POP music is made, distributed, and
consumed.
Beyoncé has long been a pioneer in savvy use of digital platforms to promote her work. She really
began to dominate in 2013, the year she announced on Instagram the release of a surprise self -
titled album with corresponding music videos for every song.
At that time, pop artists promoted their album through the release of few songs and music videos.
Only after a few months, they released the entire album. Despite this, she decided not to promote
her album by releasing few songs in advance. Instead, she decided to have no advance promotion,
and announce the release of the whole album via Instagram. Surprisingly, that album sold more
than 800,000 copies worldwide in just three days.
One of the largest takeaways from Beyoncé’s 2013 self-titled bombshell is that it proved albums
didn’t have to be heavily promoted ahead of time, or promoted at all, to be successful. “Surprising
fans with new music is a great way to get them excited and help drum up more publicity”,
Beyonce says. It also feels mysterious, which is a big part of Beyoncé’s image –she can be revered
by millions and known by only a few. That’s why she can release a 20-second teaser for Lemonade
just over a week in advance and pretty much break the Internet.

A. Beyoncé’ is the perfect example of a platform thinking because of her ability to capture
value from the use of the platform of Instagram.
B. Beyoncé’s use of Instagram to promote her album represents a technology epiphany, as
she changed the meaning of the technology of social networks.
C. With her 2013 self-titled album, Beyoncé changed the meaning of distribution and
communication of pop music
D. Beyoncé’s album - “Lemonade” – is an invention in the musical industry: she introduced
a completely new way of making music.

Justify your answer

A. Wrong: Although Instagram is a platform, its use is not the core of Beyoncé’s innovation. Her
innovation is in the releasing the album and videos all at once, as a mystery box – NOT in the
novel orchestration of her resources, through the framework of platform.
B. Wrong: The meaning of the technology of social media does not change in any way.
C. True: Innovation of meaning represents a change in the reason why a person buys a product.
Beyoncé was able to change the meaning of music distribution and communication, by
shifting from “Releasing key songs to announce to fans about the upcoming album” t o
“Surprising fans with mystery albums”.
D. Wrong: There is no invention involved. Everything that Beyoncé is doing is innovative as she
recombines what is already existing and presenting it in new forms, but she did not invent
anything new.
Q3. Platforms

What we want to test: we want to test if the student is capable to distinguish different types of
platforms.

Runcard is a platform managed by the Italian Athletics Federation FIDAL. Using Runcard, users can
purchase the insurance (provided by insurance companies) needed to participate in competitions.
Moreover, users can subscribe and pay for competitions organized by local athletics clubs
associated to FIDAL. The Runcard platform is an example of:

A. A transactional two-sided platform

B. A transactional multi-sided platform
C. An internal platform of FIDAL
D. An orthogonal platform

Justify your answer

A. Wrong: there are three (so more than two) sides namely the athlete, the athletics club and
the insurance companies
B. Correct: Runcard brings together three groups (athletes, athletic clubs and insurance
companies) to internalize indirect network externalities.
C. Wrong: because the description clearly shows that there are multiple sides.
D. Wrong: there is a clear transaction side when athletes pay for insurance and for the
competitions, but there is no data flows – services are payed for directly
Q4. Market Pull

What we test: Critically discern characteristics and differences between Market-Pull Innovation and
Innovation of Meaning.

Pangaia defines itself as a “materials science company”. This communication strategy is the result
of analyses that highlighted the increasing importance for consumers of products that mitigate the
impact of fashion brands’ pollution on global warming. Instead of being simply a fashion brand,
Pangaia is a full-fledged R&D textile innovation lab, constantly researching and patenting new
materials to reduce the impact of fashion in the world. However, the mission of the company is
not limited to simply discovering new textiles, but it aims at bringing breakthrough textile
innovations and patents into the world through everyday lifestyle products. Pangaia makes their
products appealing for customers, and thus, through the spread of their products, has an impact
on the pollution outcome of the fashion productions.

How would you define the choice of investing in a R&D textile lab to stimulate new innovation?
A. Technology push innovation – the brand is designing new clothes building on its’ R&D
findings
B. Market-Pull Innovation – the brand is leveraging the growing demand for sustainable
clothes to position its offering as a “material science company”.
C. Innovation of Meaning, since the brand adopts an outside -in perspective to make a new
radical proposal to the fashion market.
D. Market-Pull Innovation, since the brand adopts an inside-out perspective, leveraging the
capabilities of the R&D textile lab.

Justification
A. Wrong – R&D is not the first driver for Pangaia products. They are searching for new
technologies, but this strategy is pulled by the growing market request for carbon-free
products.
B. Correct, Pangaia’s new offering represents a Market-Pull innovation as it starts from an
evident request of the market (the need for sustainable fashion and the growing search for
purchasing carbon-free products) that lead to the investments in an R&D lab and the search
of new textile technologies
C. Wrong – Innovation of Meaning adopts an inside-out approach. Moreover, the meaning of
clothes is not changing you are still wearing them to cover your body.
D. Wrong – Market-Pull adopts an outside-in approach.
Q5. Tech Push Innovation

What we test: Ability to recognize when a new technology contributes to the development of a new
meaning – and when it does not.

A chatbot or chatterbot is a software application used to conduct an on-line chat conversation via
text or text-to-speech, in lieu of providing direct contact with a live human agent. Designed to
convincingly simulate the way a human would behave as a conversational partner, chatbot
systems typically require continuous tuning and testing, and many in production remain unable to
adequately converse.
A radical advancement was made recently by the Artificial Intelligence company OpenAI: the
company trained a model called ChatGPT which interacts in a conversational way. The dialogue
format makes it possible for ChatGPT to answer followup questions, admit its mistakes, challenge
incorrect premises, and reject inappropriate requests. ChatGPT is a sibling model to InstructGPT,
which is trained to follow an instruction in a prompt and provide a detailed response. Moreove r, it
is based on the Machine Learning models that OpenAI had developed previously, called GPT-3.
Yet, the developers claim that ChatGPT is much more and is going to disrupt a variety of fields,
including for example content creation.

How would you define the innovation behind ChatGPT?

A. ChatGPT is an incremental Innovation

B. ChatGPT represents a technology epiphany in the world of chatbots

C. ChatGPT is based on a product platform as many services can be built on top of Machine
Learning called GPT-3
D. ChatGPT is a disruptive technology

Justify your answer

A. Wrong - while ChatGPT is a sibling to InstructGPT, there are several additional functions
(modules) that make the innovation more than merely incremental
B. Wrong - There is no hint to a change in the meaning of chatbots – they remain dialogical
systems
C. Correct - ChatGPT is based on a product platform: it builds on previous innovations creating
a family of related products
D. Wrong - It is not possible YET to tell whether chatGPT will become a disruptive technology;
there is no explanation of how it is disrupting the low end of the market in the content
creation industry
 L&I - First Call June 24 A.Y. 2021-22
- Innovation -

Q1 – Dominant Design
Since Steve Job’s launch in 2007, we are all familiar with mobile devices on which everyone without
much previous knowledge can move through the World Wide Web with typing and wiping
movements. From a user interaction point of view though, the iPhone is quite outdated. To name a
few types of discomfort, one has to take the device in the hand, often operate keys that are far too
small with the fingers and despite the growing display size the screen is always much too small and
damages the eyes.
The basic function of the smartphone - namely to create an interface between people and the
Internet - can be depicted in a completely different way. The Dash developed by the German startup
Braghi shows how this could work. The Dash is an intelligent earphone that serves both as a hearing
and as a wearable. First, they fit perfectly into ears and are barely noticeable when worn. As well as
producing high-quality personalized for hearing, the earphones offer a suite of sensors that can
track multiple types of exercise, including swimming. From a user interaction perspective, the Dash
enables people to enjoy their audio content, control their earbuds and enable communications, all
without taking off their gloves or letting go of the handlebars. People can simply skip songs on their
playlists by shaking their head, or answer a call by nodding, keeping their freedom of movement.
This new form of interaction though has not spread yet in all the market: the majority of people is
not keen to change its way of connecting or communicating with others.
 A. The Dash earphone is an example of dominant design thanks to their superior user interaction
performances;
B. The traditional smartphone is not an example of dominant design as they are inferior at least
in one performance, namely enabling connection or communication with freedom of
movement;
C. The emergence of Dash earphone marks the switch from an old dominant design – the
traditional smartphone – to a new dominant design.
D. The traditional smartphone is still a dominant design even if its user interaction performances
are partially inferior to the ones of Dash earphone.

Justify your answer

The dominant design is not always the best, but often only the supposedly best solution for a problem.
The Dash earphone is not the dominant design as it does not serve the need of the majority of the market
and it is not the winning architecture. Thus, A and C are incorrect.
B is incorrect because inferior performances are not related with not being a dominant design.

Q2 - What is innovation
Extended reality (XR) is a term referring to all real-and-virtual combined environments and human-
machine interactions generated by computer technology and wearables. It includes representative
forms such as augmented reality (AR), mixed reality (MR) and virtual reality (VR) and the areas
interpolated among them. The levels of virtuality range from partially sensory inputs to immersive
virtuality with the use of smart glasses, also called XR glasses.
Most attempts at XR glasses are designed with only the technology in mind. But since day one, Dave,
VITURE's founder, knew that it was important for the glasses to be fashionable too. He met
Benjamin, the founder of LAYER, one of the most prestigious design firms in the world (whose
portfolio of work includes B&O, Nike and Google). They immediately hit it off and both agreed their
XR glasses have to be a stylish product, something people are willing to wear on a daily basis. For
more than 6 months, VITURE collaborated with LAYER day and night creating endless prototypes
and mockups, just to find the best shape and materials for VITURE One. The goal was to make
VITURE One the most comfortable and fashionable XR glasses in the industry. Together with LAYER,
VITURE will revolutionize XR.

How would you describe the product VIRTUE One?

A. VIRTUE One is a radical technological innovation
B. VIRTUE One is a disruptive innovation
C. VIRTUE One is an innovation of meaning
D. VIRTUE One is not an innovation yet

Justification:
A. False: according to Henderson and Clark, we define an innovation radical when components
and architecture change – in this case, only the components composing the XR glasses change,
while the architecture stays the same
B. False: no sign of a market being disrupted
 C. False: the meaning (i.e. reason whz the product is used) does not change, it is and was to join
the virtual world; the stzle and comfort are just added features
D. True: The product is not on the market yet, so we don’t have an innovation.

Q3 – Innovation of Meaning
AIDA (Artificial Intelligence Design for Autism) is a kit composed by an app and a bracelet that
provides parents and educators with information about the status of the child affected by Autism
Spectrum Disorder (ASD), suggesting ways to communicate the most effective educational path.
Although ASD is not a learning disability, it can strongly influence a person's education in two ways.
On the one side, autistic children develop at a different speed, while cultivating skills in a different
way than children without the condition. Children with ASD may also have difficulties in staying
focused, communicating, and understanding others' perspectives.
AIDA changes the perspective towards autism, not by forcing the child to adapt to the context.
Instead, AIDA attempts to adjust the context to the child’s needs, facilitating communication as well
as the learning process.
Thanks to field research and user analysis, the design team defined the relevant data to transfer
into the machine to create an institutional tool fostering a more inclusive environment in public
schools.

Which of the following is true concerning the Artificial Intelligence Design for Autism (AIDA)?
 A. AIDA is a market-pull innovation because the design team leveraged user needs analysis
during the research;
B. AIDA is a design-driven innovation because the meaning of the learning process for children
with ASD changes;
C. AIDA is a technology push innovation because the design team developed an innovative
technology for a new product;
D. None of the others – AIDA is not an innovation

Justify your answer

AIDA is an Innovation of Meaning because it changes the meaning of the learning process for children
affected by ASD by changing perspective. It adapts the context to the child and not vice versa.

A – Incorrect, user analysis was applied only for the development of a part of the solution.
B – Correct, the meaning of the learning process for children with ASD changes
C – Incorrect, the driver of innovation was changing the meaning of the learning experience, not the
development of a new technology.

Q4 – Platforms

The digital revolution pushed Mondadori, a leader in the publishing sector, to confront a big
challenge for a traditional business: how to sell audiobooks and eBooks. The first move in
the digital marketplace traces back to 2012, when Mondadori decided to outsource the
manufacturing and delivery of eBooks and audiobooks, partnering with Kobo, one of the
leaders in the eReader market (the name Kobo is the anagram of a book). According to the
partnership, Kobo dealt with the design, production, and delivery of the tablet required to
enjoy digital readings, and Mondadori took care of just producing the eBooks that will be
sold on Kobo’s platform, where also other booksellers were already selling their books.
After partnering with Kobo, the next step for Mondadori was integration with Apple Books,
Google Books play, and Huawei books, to access personal smartphones and tablets that
users already possess for other purposes - such as calling, texting, and watching videos, or
playing games. This partnership leverages devices already bought, eliminating the need to
buy a tablet to read books.
How would you define Mondadori’s two-step strategy in moving from Kobo (1) to Apple,
Google and Huawei stores (2)?

A. Moving from an orthogonal (1) to a transactional platform (2)

B. Moving from an orthogonal (1) to another but different orthogonal platform (2)
C. Moving from a product platform (1) to an orthogonal platform (2)
D. Moving from a transactional platform (1) to another but different transactional
platform (2)
Justify your answer
The two different platforms that Mondadori leveraged in its path in the ebook market are:
1) A transactional platform: Kobo is a repository where publishing firms can upload a
stream of new derivative products and sell them to customers.
2) A transactional platform: Apple, Google and Huawei stores are two-side platforms
connecting ebook producers like Mondadori and customers that search for purchasing
ebooks.

A. Wrong because the description clearly shows that Kobo digital marketplace offers
service both to Mondadori (but also to other publishing firms) and customers for the
same product (ebook).
B. Wrong because the description clearly shows that Kobo digital marketplace offers
service both to Mondadori (but also to other publishing firms) and customers for the
same product (ebook). The same applies for (2).
C. Wrong because the description clearly shows that (2) digital marketplaces offer service
both to Mondadori (but also to other publishing firms) and customers for the same
product (ebook).
D. True: they are both transactional platform

Q5 – Market Pull
Question: In search for better times, runners, from recreational runners to elite athletes, are
requesting ever faster running shoes. To address this need, running shoe manufacturers keep
improving the performance of their shoes: in the past, they have developed lightweight foams inside
the soles of running shoes to propel the runner forward. In 2017, Nike took the development of high
performing shoe soles one step further and introduced Vaporfly: a carbon plate which stores the
kinetic energy generated by running and acts like a “spring”. This allows runners to run and jump
farther, faster and with less fatigue. The shoe was first used by reigning Olympic champion on the
marathon Kipchoge during a marathon exhibition race at the Formula One track in Monza (Italy),
directly setting a new world record. Critics challenged the new record and accused Nike of
technological doping. Nike responded to these accuses saying that the shoes did not break the rules
and that the best athletes would still win. According to the description above, Vaporfly can be
described as:

a) Innovation of meaning: The Vaporfly shoes change the meaning of running towards pure
performance (by means of technological doping)
b) Technology push innovation: Nike introduced a radically new technology to improve the
performance of running shoes
c) Market pull: Nike addressed a market need for athletes in search for better times
d) None of the others

Justification:
a) Wrong: although the meaning might have changed, Nike did not seek to change the meaning of
running. Besides, no indication of a previous meaning of running is given in the text.
b) Wrong: it can be argued that the technology is radically new but the text does not say this. Also,
no mentions are made that Vaporfly builds upon existing carbon technologies.
c) Correct: the text clearly indicates that the market is requiring ever faster running shoes. The
Vaporfly soles are a response to this demand.
d) Wrong: answer C is correct.