FOR DOWNLOAD CONTACT: eduvish24@gmail.com INNOVATION This presentation consists of introduction of innovation , basic types of innovation ,principles of innovation benefits and success stories with references , financing sources of innovation, .Innovation is a process of transforming the new ideas, new knowledge into new products and services. Thus Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance people’s lives or to enrich society Creativity is thinking new things, and innovation is doing new things

1. INNOVATION -PRINCIPLES
Presented By ,
Vishali NS

2. 2

3. INTRODUCTION
• Innovation is a process of transforming the new ideas, new
knowledge into new products and services.
• Thus Innovation is the ability to apply creative solutions to
those problems and opportunities in order to enhance
people’s lives or to enrich society
• Creativity is thinking new things, and innovation is doing new
things

5. INNOVATION
SCHUMPETER (1934) was first to point out the importance of new
value created by entrepreneurs.
More recently, Carland, Hoy, Boulton and Carland (1984) extended
and specified Schumpeter’s idea, saying that entrepreneurs:
▪ Introduce new goods
▪ Introduce new services
▪ Introduce new methods of production
▪ Open new markets
▪ Open new sources of supply
▪ Re-organise industry.

7. TYPES OF INNOVATION
• According to Drucker (1993) there are four basic
types of innovation:
o Incremental innovation
o Additive innovation
o Complementary innovation
o Breakthrough innovation

8. • INCREMENTAL INNOVATION
Doing more of the same things you have been doing with somewhat better results.
• ADDITIVE INNOVATION
More fully exploiting already existing resources, such as product lines extensions,
and can achieve good results.
• COMPLEMENTARY INNOVATION
Offering something new and changes the structure of the business.
• BREAKTHROUGH INNOVATION (RADICAL INNOVATION)
Changing the fundamentals of the business or creating a new industry and new
avenues for extensive wealth creation.

9. × Product innovation
× Process innovation
× Marketing innovation
× Organization innovation
Product and process innovation are also called TECHNOLOGICAL
INNOVATIONS ,whereas Marketing innovation and organisation
innovation are called NON-TECHONLOGICAL INNOVATION.

10. PRINCIPLES OF
INNOVATION
• The great researcher and professor in the field of
management and entrepreneurship Peter f. Drucker
(1993) lists several principles which should be
respected by innovators.
• He has grouped these principles in ‘Do’s’ and ‘Don’ts’
in the process of innovation.

11. DO’S
× Innovation starts with analysis of opportunities.
It starts with the seven opportunities for innovation.
× Innovation is a conceptual and perceptual activity.
Is to go out and see, ask and hear.
× Innovation in order to be successful, should be simple,and focused
Should be simple not complicated.
× Innovation should start as ‘small’.
Innovation should not be grandiose. It should hold up to something
specific and concrete.
× A successful innovation aims towards leadership.
An innovation at the very beginning does not aim towards leadership

12. DONTS
× Innovations should not be very ‘smart
× Many things should not be done at a time.
× Don’t innovate for the future, but for the present.

13. PRINCIPLE OF PROCESS OF INNOVATION
These principles that give life to the process of innovation
(Ambler, 2007)
✔ Innovation starts when people convert problems to ideas.
✔ Innovation needs a system
✔ Passion is the fuel, and pain is the hidden ingredient.
✔ Co-locating drives effective exchange
✔ Differences should be leveraged

14. BENEFITS
Further benefits are ranked in the following order:
• Creating better conditions at work
• Maintaining the existing position in the market
• Entering new markets
• Creating flexibility at work
• Improving the ecological environment and
diversification of products.

15. SUCCESS
STORIES

18. FINANCING SOURCES OF INNOVATION
Innovation can be supported by two major forms of
financing:
➢ Merit-based awards (grants) and
➢ External equity, such as:
○ Business angels,
○ Venture capital and
○ Corporations.

19. CONCLUSION
• From the viewpoint of customers, innovation means products
with better quality and better services, which together bring
about a better way of life.
• From the aspect of businesses, innovation means sustainable
growth and development, realization of profits.
• For the employees, innovation means new and more interesting
jobs, which require mental faculty resulting in higher salaries.

20. “If you can't compete on
price , you have to
differentiate and to
differentiate you have to
innovate”
-Andy Bruce
20

21. REFERENCE
Drucker FP .(2012).Innovation and Enterpreneurship: Practices and Prinicple
.15 th edition .London. Elsevier Ltd.121
Ramadevi V and S Gerguri .(2010) . Innovation : Principles and Strategies
.University Libraryof Munich,Germany MPRA Paper.Vol :10.101-110
http://dx.doi.org/ 10.1002/jsc.888
Albu Angela .(2017). F undamentals of Innovation .Key Issues for
management of Innovation Projects .
http://dx.doi.org/10.5772/intechopen-69005
Ambler G. (2007). Five Principles of Innovation.
http://www.thepracticeofleader ship.net/2007/01/28/5-principles-of
innovation/
Sledzik K Schumpeter’s view on Innovation and Enterpreneurship .2016.
https://www.researchgate.net/publication/25_schumpeter’s_view_on_Innovati
on_and_enterpreneurship

22. THANK YOU !
Borne to innovate
Don't be introvert..