Creativity and Innovation

221GE-2

Chapter 5: Innovation Dynamics

Dr. Hoang Thi Hang

Deptt. of Civil Engg.
College of Engineering
King Khalid University
ABHA, Kingdom of Saudi Arab
 Innovation Dynamics

What is Innovation Dynamics?

Innovation dynamics refers to the evolving processes,

interactions, and influences that shape how innovations are
created, developed, adopted, and spread over time. It
captures the changing nature of innovation as it moves
through different stages—idea generation, development,
implementation, and market impact.
Innovation Dynamics
 Constructive Innovation
Innovation is defined as the process of making an idea/invention into a
product/service that creates value and/or for which customers will pay.
Example: Education, Technology, Automobile, Incremental Innovation, etc.

 Disruptive Innovation
The disruptive innovation is the innovation that and value network or enters at the
bottom of an existing market and eventually displaces established market-leading firms,
products, and alliances.
• Example1: E-Commerce,
Online News Sites, Ride-
sharing Apps, GPS
Systems.
• Example2: Netflix initially
offered a DVD-by-mail
rental service and later
launched its online,
subscription-based movie
streaming service.
Decreased customer satisfaction: means that customers are less happy with a product,
service, or experience than they were before or compared to what they expected. It usually
reflects a gap between what customers want and what they actually receive.
This is not a potential benefit of business model innovation.

Static innovation can mean:

Innovation that has stopped evolving,
Innovation within rigid systems,
Or innovation in conceptual or non-physical domains.

Static innovation can mean:

Innovation that has stopped evolving,
Innovation within rigid systems,
Or innovation in conceptual or non-physical domains.
The Innovative Process
 What is the Innovation Process?
• The innovation process is a systematic approach that takes an idea or concept
and transforms it into a viable product, service, or method that delivers value.
This process typically involves several stages, from ideation to
commercialization
 Importance of Innovation
• Solving Problems
In a Services Business, the customers may feel that they do not have a
platform to share their opinions, complaints, and compliments. So, the
company may start a virtual office where customers’ needs can be attended
to within a short time. This will make customer’s experience good and as a
result, the company sales may go higher.
• Adapting To Change
Change is inevitable. The innovation pushes to develop an idea that makes a
business relevant all times.
The Innovative Process Contd…
• Maximizing On Globalization
Markets all over the world becoming more interlinked (via online medium)
and greater opportunities are emerging in these new markets.
The innovation help to open for new global opportunities.
• Facing Up The Competition
To retain and establish the company at the cutting-edge competition, the
innovative strategies keeps the business dynamic in the competition
• Evolving Workplace Dynamics
The demographics in the workplace are constantly changing. So, the
Innovation is critical to ensure the smooth running of the company

• Customers’ Changing Tastes and Preferences:

Today customers have a great variety of products and services available to
them. Hence, the company must keep itself abreast of these evolving
customer’s tastes for satisfying the customer’s demands.
The Innovative Process Contd…
 Steps of Innovation Process
• Step 1: Idea Generation and Mobilization
• New ideas are created during idea generation. Successful idea generation
should involve the pressure to compete and the freedom to explore.
• Mobilization occurs when the idea is moved to a different logical or
physical location.
• Example: The Apple waited three years after MP3 players were
introduced to create the iPod, which was attractive, intuitive, and
offered capacity for up to 1,000 songs

• Step 2: Advocacy and Screening

• Advocacy and screening help to evaluate the feasibility of a business idea
with its potential problems and benefits, in future.
• Example: Employees should have plenty of avenues to receive
advocacy and feedback. Also, organizations must understand the
difficulties involved in evaluating truly innovative ideas.
The Innovative Process Contd…
• Step 3: Experimentation
• The experimentation tests the sustainability of ideas for an organization at
a specific time. Experimentation generates new ideas with the information
that is gathered on the results and feasibility of the original idea.
• Example: Amazon tested its grocery delivery service in certain Seattle
suburbs. After this, Amazon Fresh expanded to Los Angeles, San Diego,
and New York City.
• Step 4: Commercialization
• Commercialization involves the change of focus from development to
implementation to achieve the Return on Investments (ROI) and business
developments.
• Step 5: Diffusion And Implementation
• Diffusion and implementation allow the organization to determine the next
set of needs for customers through customer’s feedback and other
benchmarks that enables the organization to stimulate the innovation
process.
The Innovative Process Contd…
 Types and Examples of Innovation
• 1. Product Innovation
• Product innovation is either the development of a new product, such as the
Fitbit or Amazon’s Kindle, or an improved version of the existing product, such
as an increase in the digital camera resolution of the iPhone.

• Example: A new feature to an existing car, such as power windows to a car.

• 2. Process Innovation
• The process involves a combination of skills, facilities, and technologies used
to produce, support, and deliver a product or service.

• Example: Henry Ford’s invention of the world’s first vehicle assembly

line. In this process changed the vehicle assembly and shortened the
time necessary to produce a single vehicle from 12 hours to 90 minutes.
The Innovative Process Contd…
3. Business Model Innovation

• In a Business model innovation, the capabilities or processes are optimized to

make a company successful and profitable. It is a transformation.

• Examples: IBM has managed changes in customer offers from mainframes

to personal computers to technology services.

4. Organizational Innovation

• Organizational innovation refers to the development of a new

organizational strategy, such as changes in the company’s business
practices, organization of work, and relationship with external stakeholders.

• Examples: The companies that started to use the power of digital and
allowing employees to skip the office and work from home.
The Innovative Process Contd…
5. Marketing Innovation

• Marketing innovation means developing a new marketing strategy that

produces changes, such as designing, packing, and other

decisions regarding the price or promotion of a product.

• Example: Touch Packaging Design has partnered with Nestlé Ice Cream to
create a reusable, durable container for its Häagen-Dazs brand that can
be used in the new Loop circular shopping platform.
The Innovative Process Contd…
 Risks of the Innovation Process and their solutions

1. Technological Failure Of The Innovation

• The biggest risk any company takes in the innovation process is whether or
not the new product or idea will work once it is launched. To manage this
risk, the company may carry out trials on a small scale to test its
effectiveness. So, if this is done, the necessary adjustments may be made
to avert any huge losses once the product is mass-produced.

2. Financial Strain
• The innovation process is faced with the challenge of draining out the
company resources. This is because of the returns that are usually long-
term as opposed to immediate. So, if this is done, averting the necessary
adjustments may be made to avert any huge losses once the product is
The Innovative Process Contd…
3. Market Failure
Failure in the introduction of new products or technology to the market
means that demand would be low and therefore the innovation is not viable
commercially. Hence, the company should undertake extensive and in-depth
market research before committing limited resources to its development and
production.
4. Redundancy
Seeing the market trends, a profitable innovation today may be redundant
shortly. Therefore, there must be constant research on how to improve the
existing systems, and the factors influencing them to stay a step ahead.
5. Lack Of Capacity For Implementation
Lacking the structural and financial capacity to roll out the innovation is always
risky. The company may choose to look for partners who will assist in
company’s lack area to overcome the challenge.
The Innovative Process Contd…
6. Organizational Risks

These risks involve the structuring and running of the business. So, following
proper planning and allocation of resources helps to ensure this does not
happen.

7. Unprecedented Risks

They may involve changes in policies or political instability whose ripple effect
spills over hindering the effectiveness of the

innovation. Therefore, the business needs to keep a contingency plan to buffer

it against such unseen events.
Fishbone Diagram – Problem Analysis Tool
 A Fishbone Diagram, also called an Ishikawa Diagram or Cause-
and-Effect Diagram. The diagrams look like a fish skeleton
(fishbone).
It is one of the key root cause analysis tools that combines brainstorming
with a kind of mind mapping and makes you think about all potential
causes of a given problem, rather than just the one or two.
 The Fishbone Diagram is useful in:
1. project planning
2. process improvement
3. quality management
4. problem-solving
Benefits and Important of Fishbone Diagram

• Display all the possible causes of a particular problem in a simple, easy to

read graphical way.
• Captures the relationship between the potential causes and shows them in
the chart.
• A great tool for solving complex problems where many factors have to be
taken in to consideration.
• Stimulates an in-depth analysis and evaluation because allows you to explore
possible causes in details.
• Gives you a bigger picture and better understanding of the problem.
• Boots and frameworks brainstorming about the possible reasons.
• Stimulates an in-depth discussion among team members about the problem.
• Helps in maintaining team focus.
• Identify where a process isn’t working.
How to create a fishbone diagram

• Define the Main Problem or Goal

Clearly state the problem you are trying to solve. This becomes the head of the fish

• Identify Major Categories

Identify the major categories of causes related to the problem. These categories could be broad
elements such as

1. People 2. Methods

3. Machines 4. Materials

5. Measurement 6. Environment

• Brainstorm Causes:
For each major category, brainstorm possible causes and write them as sub-bones branching from
each category. Keep asking "Why?" until you get to the root

• Analyze the Diagram:

Once the diagram is complete, analyze it to determine the most likely root causes of the
Example 1: Quality Issue in a Manufacturing Process
Step 1: Define the Problem
Main Problem (Head of the Fish): High Rate of Defective Products
Step 2: Identify Major Categories (Main Bones)
1. Man (People) 2. Methods (processes)
3. Machines (Equipment) 4. Materials
5. Measurements (Inspection) 6. Environment
These category cover the main aspects of production that could potentially affect quality

Step 3: Identify Causes (Sub-Bones)

 Man (People)
• Inadequate Training: Workers lack the necessary skills or training to properly perform tasks.
• Operator Fatigue: Long working hours causing human errors.
• Lack of Supervision: Insufficient oversight leading to quality issues
 Methods (Processes):
•Standardize Procedures: Implement consistent operating procedures and ensure everyone
follows them.
•Setup Verification: Conduct a checklist verification before starting production to ensure
correct machine setup.
 Machines (Equipment):
• Preventive Maintenance: Set up a regular preventive maintenance schedule to keep
machines in optimal condition.
• Calibration Checks: Perform routine calibration of equipment to ensure accurate
functioning.
 Materials:
• Supplier Evaluation: Evaluate and select reliable suppliers to ensure consistent material
quality.
• Material Handling Protocols: Introduce clear guidelines for material handling to prevent
contamination.
 Measurements (Inspection):
• Upgrade Measuring Tools: Ensure all measuring tools are up-to-date and calibrated.
• Increase Quality Checks: Add additional quality checkpoints throughout the production line
to catch defects early.
 Environment:
• Control Temperature/Humidity: Install systems to regulate temperature and humidity for
consistent product quality.
• Cleanliness Standards: Introduce regular cleaning schedules to reduce dust and
Fishbone Diagram of Quality issue in a Manufacturing Process

Measurements Machines People

Increase Quality Checks Preventive Maintenance Insufficient Training

Upgrade Measuring Tools Lack of Supervision

Calibration Checks:
High Rate of
Defective
Control Temperature/Humidity Supplier Evaluation Standardize Procedures
Products
Cleanliness Standards Material Handling Protocols Setup Verification

Environment Materials Methods

Example 2: Fishbone Diagram for Car Won’t Start Problem
1. Define the Problem: Car Won’t Start
Problem
2. Identify Major Categories:
People , Methods, Machines, Materials,
Measurements, Environment
Machines People
Dead battery Driver doesn’t know the car well
Bad spark plugs
Broken Starter
Empty gas tank Missed regular maintenance
Faulty ignition
Car Won’t
Start
Very cold or very hot weather Skipped pre-trip checks Problem
Bad road conditions Didn’t check flue level

Not use for a long time Ignored warning lights

Environment Methods
Thanks