Empatika Open on Theories of innovation

1. Theories of
Innovation
Bayram Annakov, App in the Air

2. Kondratiev

3. Shumpeter
Economic cycles
classification
Entrepreneur vs
capitalist
Creative
destruction

4. Gartner Hype Cycle

5. Mathematical proof

6. WTF??

7. Why?
Bad managers?
Bad luck?
Good competitors?

10. Theories of
Innovation
Consumers
Competitors
Value Networks

11. Consumers

12. Overshot
“I am not using even 50% of my device features”

13. Nonconsumers
“I rent a car from airport to Convention Center”

14. 1. Incumbents protect their
most profitable customers

15. Competitors

16. RPV framework
Resources
Processes
Values

17. 2. Strengths are weaknesses
are strengths :)

18. Value Networks

19. Incumbent Dealer Restaurant
Traditional
100%50%
Low End
Disruptor
50% + hardware
?

20. 3. Disruptors should build
new value networks

21. Recap
Consumers
Competitors
Value Networks

22. Signals of Change

23. Customer
Groups
Identifier
Nonconsumers
People who lack the ability, wealth, or
access to conveniently and easily
accomplish and important job for
themselves; they typically hire someone to
do the job for them or cobble together a
less-than-adequate solution
Overshot
customers
Customers who stop paying for further
improvements in performance that
historically had merited attractive price
premiums
Consumers

24. Term Definition What to look for
Resources
Things company
has access to
- Tangible assets: technology, balance
sheet, products, equipment, distribution
network
- Intangible assets: human capital, brands,
accumulated knowledge
Processes
Ways of doing
business
- Difficult problems we know the company
has repeatedly solved over time
- Typical processes: hiring & training,
product development, manufacturing,
planning and budgeting, market
research, resource allocation
Competitors

25. Term Definition What to look for
Values
Prioritization
determinant
(motivation)
- Way a company makes money (e.g. mix
of sales revenue to postsales service
revenue)
- Cost structure/income statement
- Size and growth expectations
- History of investment decisions - what
has been prioritised in the past
Competitors

26. Choice What to look for
Integration
- If performance gap is present, i.e. product
functionality & reliability is not yet good enough to
address the needs of customers in a given tier of the
market
- Fewer design freedoms help to maximise what is
technologically possible
Modularization
- the functionality and reliability of a product have
become too good —> overshooting
- “Commodity” perception
- Performance surplus
Value networks

27. But…