Innovation also happens in a bell shaped graph like any other system
a. In the leftmost region 10 % of the area has Researchers
b. In the next 10% of the area has visionaries/Highly Optimists
c. In th middle region 40% has Stick with the herd kind of people
d. In the next 20% has follow proven techniques type of people
e. In the next 10% has skeptics/pessimists
f. Last 10% are highly pessimists
Growth of a company also happens in a bell shaped graph like any other system
area a = Initial Startup Idea/Product - Region I
area b+c = Growth Phase for Product - Region II
area d = Maintenance Phase/Get New Ideas/Innovate more - Region II
area e = Product Phase Out / Introduce more products - Region III
area f = Death of Product - No innovation can happen here
Mapping Innovation to Growth
Innovation in the Region I can be
a. Application innovation
b. Platform innovation
c. Disruptive innovation
d. Product innovation
Innovation in Region II can be
a. Line Extension
b. Marketing
c. Enhancement
d. Migration Value
e. Experiential
f. Process
g. Integration
Innovation in Region III
a. Organic Renewal
b. Acquisition Renewal
Two Kinds of Business Architectures
1. Complex Systems - Small customers make big purchases of complex products
2. Volume Systems - Big customers make large purchases of small simple products
In order to Innovate in a company we have to answer the following
1. Where are each of our products in the life cycle
2. How are they performing relative to the competition
3. What forms of innovation are competitors using? How successful are they?
4. Is there a reason for the change?
Core vs. Context
core is what gives you the competitive advantage
Context is what is supposed to be done by all
If u do context you will not be recognized much but if u miss on the context then you will be punished very badly
In time u must free resources from your context and get them to the core
Identify the core and context of your business
Identify the resources that are in each quadrant
Core Context
Quad II Deploy Quad III Optimize
Quad I Invention Quad IV Support
Resources must be moved from Quad 4 -> 3 -> 2 -> 1
Innovation moves from 1->2->3->4 as products mature
