TECHCNOPRENEURSHIP MODULE

Lesson 1.Types of Innovation:Product,Process & Business Model

Differential.
Innovation has become such a buzzword it can be hard to remember what it
actually means. Depending on who you talk to, the bar for “innovation” might seem
incredibly high (“Let’s be the next Netflix!”), or far too low (“Let’s hang up some
hammocks in our office!”). There are several different ways a company can
innovate; in this article, they are broken down into three general categories:
product, process, and business model. By narrowing your focus on a specific type of
Innovation, you can be a more effective and strategic innovator.
When people think of innovation, often, they’re thinking of product innovation.
Product innovation can come in three different forms.
1) The development of a new product, such as the Fitbit or Amazon’s Kindle.
2) An improvement of the performance of the existing product, such as an
increase in the digital camera resolution of the iPhone 11.
3) A new feature to an existing product, such as power windows to a car.
Drivers of product innovation might be technological advancements, changes
in customer requirements, or outdated product design. Product innovation is
generally visible to the customer and should result in a greater demand for a
product.
1. Process Innovation. Process innovation is probably the least sexy form of
innovation. Process is the combination of facilities, skills, and technologies used to
produce, deliver, and support a product or provide a service. Within these broad
categories, there are countless ways process can improve.
Process innovation can include changes in the equipment and
sstechnology used in manufacturing (including the software used in product design
and development), improvement in the tools, techniques, and software solutions
used to help in supply chain and delivery system, changes in the tools used to sell
and maintain your good, as well as methods used for accounting and customer
service. Speaking generally, changes in process reduce costs of production more
often than they drive an increase in revenue. Of the three types of innovation,
process is typically the lowest-risk.
2. Business Model Innovation. Business model innovation does not necessarily
imply changes in the product or even in the production process, but in the way as it
is brought to the market. 
Decision Innovation writes: “Business model innovation is probably the most
challenging of the innovation types as it will likely present an organization with
major requirements for change. Often, the very capabilities or processes that have
been optimized to make a company successful and profitable will become the
targets for transformation.
Startups have a big advantage due to their ability to iterate and adapt their
model as they are in the process of creating an initial business model design;
however, there are several large, well-established organizations that have leaned
into their advantages of a larger customer base and greater resources to challenge
their existing business model and “disrupt” themselves.s.
Examples: 1. IBM has managed changes in customer offers from
mainframes to personal computers to technology services. 2. Amazon found a new
channel to the customer through technology by eliminating the traditional retail
distribution channel and developing direct relationships. Instead of generic
innovation goals, try to hone in your focus on a specific type of innovation.
Once you’ve done this, you can begin asking more helpful questions, such as
“How might this digital product’s ease of use improve?,” or ”Where in our hiring
process are we spending the most time?” Answering these questions through
interviews and research will you point you in a clearer (though still sometimes
risky) direction for your business’ innovation efforts.
At Differential, we help organizations innovate products, processes, and
business models by turning back-of-the-napkin ideas into great digital products.
Check out our process to learn more.

Lesson 2. TECHNOPRENEURSHIP and INNOVATION

What is Innovation?
It is a new idea, method or device. The process of making improvements by
introducing something new. The process of translating new ideas into tangible
product. The successful exploitation of new ideas. Creative idea that is realized.
Change that creates a new dimension of performance.
Components of Innovation
 A hardware component – consisting of material or physical aspects of
innovation.
 A software component – consisting of information base that is needed to use
the innovation
 An evaluation information component – that is useful for decisions related to
the adoption of the innovation.
These components form a system to make it user friendly
Concept of Innovation
Generally understood as the introduction of a new thing or method.
Embodiment (or represent), combination, or synthesis of knowledge in original,
relevant, valued new products, processes, or services. Concerned with the
commercial and practical application of ideas or inventions.
Innovation and Creativity
All innovation begins with creative ideas. We define innovation as the successful
implementation of creative ideas.Creativity by individuals and teams is a starting
point for innovation; the first is necessary but not sufficient condition for the
second.
Innovation vs Creativity
Creativity – coming up with ideas.
Innovation – bringing the ideas to life.

Creativity – displayed by individuals.

Innovation – occurs in the organizational and societal context.
Innovation vs Invention
Invention - the creation of new tools or the novel compilation of existing tool.
Innovation -occurs when someone uses an invention - or uses existing tools in a
new way.To change how the world works, how people organize themselves, and
how they conduct their lives.
So Innovation is…
Innovation is the management of all the activities involved in the process of
idea generation, technology development, manufacturing and marketing of a new
(or improved) products/services or manufacturing process or equipment.
TYPES OF INNOVATION
1. Services. Work done by one person or group that benefits another
2. Supply chain. To be able to give what is desired or needed which circulate and
distributes the product of innovation. A valued chain of products that connects each
other.
3. Business Model. Activity of providing goods and services that involves financial,
commercial and industrial which create a representation of something in a smaller
scale or even in a large scale of business.
4. Marketing. The commercial process which involve the promotion, selling and
distributing of products. Determines the economy of market products.
5. Organizational. A group of people (or businesses ) who work together for
explicit purpose, with organized rules and structure.
6. Process. Intended to achieve a good result. Readying for a purpose of
(improving and developing something).
7. Financial. Proper management of :
1. money and credit, and
2. banking and investments.
8. Substantial. An innovation of product that provides good quality and condition.
(Worhty of Products) Involves an abundant supply of money or possessions of
value.
9. Product. A commodity for sale. An artifact that created by someone or some
process.
Categories of Innovation
 Product, Service & Process innovations
 Open & closed innovations
 Incremental & Radical Innovations
 incremental innovations – sustaining innovations, evolutionary innovations
 radical innovations – altering innovations, disruptive innovations – extreme
case > business model innovations
 Disruptive vs sustaining innovations
 Modular & architectural innovations
 Generic & epochal innovations
 Technovation / Technological innovation
Product Innovation. Involves the introduction of a new good or service that is
new or substantially improved. Might include improvements in functional
characteristics, technical abilities, ease of use, or any other dimension.
Example:
3 main types of innovation
1. Process Innovation. Involves the implementation of a new or significantly
improved production or delivery method. “Just in Time” Manufacturing
Eg. Toyota & Dell
2. Business model Innovation. A method of doing business by which a company
can generate revenue to sustain itself. Informal and formal models that are used by
enterprises to represent various aspects of business. Involves changing the way
business is done in terms of creating values.
3. Product Innovation. It is the process which facilities innovation. The process of
innovation. Involves search & selection, exploration & synthesis, cycles of
divergent thinking & convergence. Innovation process needs support at three
levels. At the macro level i.e. National Level, Innovation in a nation directly
depends upon national government’s policies and support.

Lesson 3. Innovation Process

National level Gov’t Policies and

Support

v
Enterprize, Policies
Enterprise level vv Support and initiatives

Individual & group

Individual level Innovation activities
vv
Flexible Innovation Process Models
According to Cycling Model, innovation is cyclical in the sense that it is driven
by the product improvement cycle.
This cycle often begins with customer needs.; which keep on changing. Also an
enterprises may be working for new product development simultaneously. Thus
there are cycles of innovation.
A. Advantages:
 Continuous interaction with market
 User needs oriented
 More chances of acceptance of product etc
 Less risk of failure & resultant after-effects
B. Disadvantages:
 Chaotic in nature
 May become directionless
Business (Marketing) Innovation
Development of new marketing methods with improvement in product design
or packaging, product promotion or pricing.
Product Innovation
 Involves less technological advance but more interactive and information-
intensive mainly due to the characteristics of services
 Can be found both in manufacturing and service firms since they can,
particularly obviously at present, provide services to customers.

Raising Capital for start up Business

Lesson 4. Financial Management

To collect finance at the company at a low cost and to sue this collected finance
for earning maximum profits.
 Raising suitable sources for finance
-Short term, medium term and long term
 Investing the raised funds
-Forecasting, evaluating current markets, risk assessment
 Dividend
-Distributing the financial gains amongst shareholders
Funding types for different stages
 Seed capital - Seed capital is the money you need to do your initial
research and planning for your business.
 Start-up capital - Start-up, or working capital, is the
funding that will help you pay for equipment, rent, supplies, etc.,
for the first year or so of operation.
 Mezzanine (expansion) capital - Mezzanine capital is also
known as expansion capital, and is funding to help your company
grow to the next level, purchase bigger and better equipment, or
move to a larger facility.
 Bridge capital - Bridge funding, as its name implies, bridges the
gap between your current financing and the next level of financing.
Internal Source
 Personal savings
 Retained profit
 Working capital
 Sale of asset
External Source
 Long term sources of finance
 Medium term sources of finance
 Short term sources of finance
 Inorganic growth

Long term Short term

sources of finance Medium term sources of finance
sources of finance

• Share capital or • Preference shares • Trade credit

equity share • Debentures/Bonds
• Preferences share • Public deposit/ • Bank loan
• Retained earnings Fixed deposit for
• Debentures/bonds of duration of three • Bank
various types years overdraft lease
• Loans from financial Commercial banks
institutions • State • Advantages
• Loan from state financial receive from
financial corporations corporations customers
• Loans from • Lease financing/
commercial banks Hire purchase financing
• Various short
• Grants from • External
term provisions
Government commercial
s borrowings
• Venture • Foreign currency
capital funding bonds
• Asset securitization
Short term Finance
Advantage:
 Emergency funding can be paid Plug cash shortfalls
 Easier to secure Lower interest rates
Disadvantage:
 Immediate effect of raising rates Additional assets to be
pledged Not adequate
Long term Finance
Advantages
 Stability
 Cost of Capital
Disadvantages
 Long term Agreement
 Risk
Lesson 5. BUSINESS PLAN DRIVERS
Cler Vision of Purpose
The direction the business venture wants to
achieve. A long term view
Satisfy Real Customers Exceptional customer service that results in the
Needs & Serve Real loyalty of customers, repeat purchases by them
Customers and greater customer retention.

 Positioning unique differentiating factors.

Continuously making improvements to sustain a
leadership position.
Resource Focus, Resources should be optimally utilized to ensure
Organization & that maximum possible value gets added to
Commitment to satisfy satisfy customer needs.
Customer needs

What Investors Look For

1. How does the team think?
2. How detail oriented is the team?
3. How big is this market?
4. Is there sustainable competitive advantage?
5. What’s the growth plan?
6. What does the technology roadmap look like, short term or long term play
Creating Your Company’s Strategy
1. Building a strategy is harder work than building your product
2. Think about
3. What do you want your business to be when it grows up
4. Looking back from 5 years in future
5. Perspectives of all stakeholders
6. Anything that could go wrong
7. Hope is not a strategy
Competitive Analysis
1. You always have competitors
2. Dig deep, be detailed, be honest
3. Compare features and benefits
4. Technology comparison
5. Whole product offering (pricing, support, etc.)
Sustainable Competitive Advantage
• Create barriers to entry
• Continually add value for your customers (and your investors)
• Anticipate competition and make plans for dealing with it
-Better widget, price erosion, market share, different business mode.
• Avoid the trap of believing that your main competitor is your exit strategy
Format of Business Plan
 OPERATIONS & PRODUCTION
 Legal & Licensing requirements
 Management detail
-Organization structure & staffing
-Insurance & Security needs
 FINANCIAL PROJECTIONS
-Income & Expenses
-Financial forecasts
 IMPLEMENTATION TIME TABLE
-Time needed to set up & run the business
Lesson 6. BUSINESS MODEL. A business model is the way that a company sells
products to its customers. It describes how a business creates, delivers, and
captures value.
Different types of Business Model
1. Business-to-Business (B2B). This model needs two or more business
organizations that do business with each other . It entails commercial
activity among companies , through the Internet as a medium.
2. Business-to-Consumer (B2C). Business or transactions conducted directly
between a company and consumers who are the end-users of its products or
services. This model enables consumers to browse , select and merchandise
online from wider variety of sellers and at better price.
3. Consumer-to-Consumer (C2C). Consumer to Consumer (or citizen-to-
citizen) electronic commerce involves the electronically facilitated
transactions between consumers through some third party. A common
example is the online auction, in which a consumer posts an item for sale
and other consumers bid to purchase it.
4. Business-to-Government (B2G). An example of a business to government
company is a firm that offers IT consulting services to a government agency.
 The government uses the B2G arrangement in order to keep its technology
up to date and in working condition, while at the same time limiting expenses
by not taking on full-time staff.
5. Consumer-to-Business (C2B). Consumer-to-business (C2B) is a
business model in which consumers (individuals) create value and businesses
consume that value. For example, when a consumer writes reviews or when a
consumer gives a useful idea for new product development then that
consumer is creating value for the business if the business adopts the input.
BUSINESS MODEL :6 COMPONENTS
 Value preposition/ Value Proposition
 Market Segment
 Value Chain Structure
 Creation of revenue and profits
 Place in the value network
 Competitive Strategy
ROLE OF BUSINESS MODEL
Tecnhnical inputs ----- Business model --------Economic outputs

Lesson 7. Ethics and Responsibility

VALUES: The moral principles or values that
generally govern the conduct of an individual.
MORAL: The rules people develop as a result of
cultural values and norms
“Morals involve “good” and “bad” as well as “deviant”behaviors”
Creating Ethical Guidelines
A Code of Ethics:
 Helps identify acceptable business practices
 Helps control behavior internally
 Avoids confusion in decision making
 Facilitates discussion about right and wrongs
Corporate Social Responsibility
Pros Cons
 It is the right thing to do
 Businesses have the resources to  Takes focus away from making profits
devote to fixing social problems  Business executives spend
 Prevents government regulation and shareholder money on environmental
potential fine initiatives
 It can be profitable

Sustainability. Socially responsible companies will outperform their peers. It is in

business’s best interest to find ways to attack society’s ills.
Green Marketing.The development and marketing of products designed to
minimize negative effects on the environment or improve the environment.
-Companies must try to educate customers of environmental benefits
-Environmentally aware customers pay more for products.
Cause-Related Marketing. For-profit and non-profit organizations cooperate to
generate funds. generates about $7 billion annually. Too many causes cause
customer cause fatigue
Lesson 8. GLOBALIZATION: Cultural differences in communication

Hyperglobalizers: homogenization of world under American popular

culture or Western consumerism
Political Sceptics: thinness of global culture relative to national cultures.
Cultural differences and conflicts along geopolitical faultlines.
Transformationalists: intermingling of cultures and peoples: hybrids and
new forms
What is culture?
 Religion
 Ethnicity
 Nationalism
 Language
 Other forms of Identity
The importance of forms of Communication
Cultural globalization concepts
 Cultural globalization: the transmission of culture globally
Facilitated by the movement of people, objects, signs and symbols.
 Travel: Movement of books and cultural artifacts
 Key: forms of communication and transportation
-Infrastructures and Institutionalization:
-regularized and embedded change
 Transportation and communication technologies
 Social organization and systems: ship building,
mapmaking, shipping companies, international satellite
companies, regulatory regimes, TV programming
 Languages: educational systems, training of teachers

Global Culture:
 Technologically driven
 Economic liberalization driven: mergers and acquisitions,deregulation,
free trade barriers reducedconcentration of ownership
Increasing growth of new film industries
 Industries:
 Television: more recent, higher level of individual capital investment
 Public quality initially, now Satellite and Cable have changed
control to private

Final evaluation (Techno 101)

Evaluation Exercise # 1
1. Thinness of global culture relative to national cultures.
2. intermingling of cultures and peoples: hybrids and new forms
3. The transmission of culture globally.
4. Movement of books and cultural artifacts
5. Homogenization of world under American popular culture or Western
consumerism.
6. The development and marketing of products designed to minimize negative
effects on the environment or improve the environment
7. For-profit and non-profit organizations, they need cooperation to generate funds.
8. People develop as a result of cultural values and norms
9. Two or more business organizations that do business with each other
10. Socially responsible companies will outperform their peers.
11. It is in business’s best interest to find ways to attack society’s ills.
12. It involve “good” and “bad” as well as “deviant”behaviors.
13. It is a business model in which consumers (individuals) create value and
businesses consume that value.
14. the way that a company sells products to its customers.
15. The moral principles or values that generally govern the conduct of an individual.
16. It describes how a business creates, delivers, and captures value.
17. The money you need to do your initial research and planning for your business.
18. the funding that will help you pay for equipment, rent, supplies, for the first
year or so of operation.
19. Bridges the gap between your current financing and the next level of
financing.
20. Development of new marketing methods with improvement in product design
or packaging, product promotion or pricing.
21. Involves less technological advance but more interactive and information-
intensive mainly due to the characteristics of services
22. Involves the implementation of a new or significantly improved production or
delivery method. “Just in Time” Manufacturing
23. It is the process which facilities innovation.
24. An innovation of product that provides good quality and condition.
25. A group of people (or businesses ) who work together for explicit purpose, with
organized rules and structure.
26. A method of doing business by which a company can generate revenue to
sustain itself.
27. Involves the implementation of a new or significantly improved production or
delivery method. “Just in Time” Manufacturing
28. Intended to achieve a good result.
29. Work done by one person or group that benefits another
30. the creation of new tools or the novel compilation of existing tool.

Evaluation Exercise # 2
1. Innovation vs creativity.
2. Enumerate and discuss the the components of innovation.
3. Discuss the 3 main types of innovation.
4. Enumerate and discuss five business models