Notes for test:

Financial innovation is the process of creating new financial or investment products,

services or processes.
Governance in innovation is to ensure that an organisation’s innovation efforts are aligned
with its overall strategy
Since we are dealing with a bank we need to think of ways to improve efficiency,
accessibility, customer experience and profitability in the banking sector

Examples of innovation in financial services are:

1. Digital banking - everything is online don’t really need to go to the atm or branch to
transfer or receive money
2. Payment innovations – development of payment systems like contactless payments
and mobile wallets
3. Blockchain technology (is seen as disruptive because it changes how industries,
businesses or economies operate thus displacing established technologies) – offers a
new way of securing transactions and assets using decentralised ledgers (thus
lowering costs and independent of geographical location
4. AI and machine learning – are used to enhance financial services like risk
management customer service and fraud detection
5. Fintech – financial technology, involves the delivery of financial services in more
efficient ways. Fintech start-ups focus on niche markets such as mobile payments,
peer-to-peer lending, personal financial management

Innovation management theory – managing new ideas and ensuring that they come alive
through processes such as planning, organising, management and monitoring (happens
continuously)
 Companies usually work in innovation networks.
 Companies collaborate on innovations because they have shared interests or can
complement one another.
 Collaboration with a bigger company is beneficial for smaller companies – for larger
businesses the advantage lies in being able to avoid bureaucratic processes and
shorten the time needed to enter the market

There are different types of innovation:

1. Incremental
2. Radical
3. Disruptive -new companies put existing companies and products out of business
(characterised by this)
4. Reverse
5. Social -resolve social issues and encourage social growth
6. Discontinuous innovation

Corporate venturing - Corporate venturing is a strategic approach for large companies

aiming to stay relevant in rapidly evolving industries by harnessing external innovations and
entrepreneurial talent. It allows them to innovate more quickly and effectively than relying
solely on internal resources.
1. Strategic partnerships - Corporations form joint ventures with innovative companies
to co-develop products or services. These partnerships often combine the strengths
of a large corporation (such as resources and market access) with the innovative
potential of a smaller company.
2. Intrapreneurship programs (to keep it internal), companies create an environment
within their organization that mimics an entrepreneurial setting, allowing employees
to pitch, develop, and manage new business ideas. Successful projects may spin off
into separate business units or integrate into the main business operations.

Exploitation (maybe explain ambidexterity for them to understand the importance of

looking for opportunities)
Exploitation in innovation refers to the organization's focus on refining and enhancing
existing products, processes, technologies, and capabilities. It involves making the best
out of what is already known and available, optimizing and improving efficiency, quality,
and productivity. The primary aim is to maximize returns from current assets and
capabilities.

Characteristics of Exploitation:
Incremental Innovation: Minor improvements and upgrades to existing products and
services.
Efficiency: Streamlining operations and reducing costs.
Risk Aversion: Lower risk as it builds on proven models and existing knowledge.
Short-term Gains: Typically yields quicker, more predictable returns on investment.

Exploration (if they are looking for new opportunities they might be in the exploration
phase
Exploration in innovation involves searching for new opportunities, technologies, and
business models. It focuses on experimentation, taking risks, and venturing into
uncharted territories. This approach is crucial for discovering potential breakthroughs
and driving radical innovations that can redefine markets.
Characteristics of Exploration:
Radical Innovation: Developing completely new ideas and approaches that differ
significantly from existing offerings.
Learning and Experimentation: Encouraging curiosity and trials of new concepts,
accepting failures as part of the learning process.
Risk Taking: Higher risk due to uncertainties associated with unproven ideas.
Long-term Potential: While riskier and often requiring more time to yield returns,
exploration can lead to substantial growth and competitive advantage.
 Radical Innovation: Developing completely new ideas and approaches that differ
 to substantial growth and competitive advantage.

balance is crucial because overemphasizing exploitation leads to a failure to

adapt to changing environments while focusing too much on exploration
without adequate exploitation can lead to resource inefficiencies and
unsustainable operations.
Question 1: where are they currently?

 Lack absorptive capacity

 Lack knowledge management
 Don’t understand their customers and neglect them
 Lack of culture of innovation & collaboration
 More autocratic
 Feel their offering is good.
 Loss of good staff
 Don’t know where to innovate and don’t really know the process
 Don’t want to push creativity but innovation lies in being creative
 The company wants to operate more in a closed system so they need to foster
knowledge within the company so they can use the spiral knowledge tool
 Have done corporate venturing before but failed

Question 2: where should they be or what should they be doing based on the industry
insight?
1. There is an increase in partnerships in the sector:

 foster better relationships with partners through trust and communication

 Consider capital venturing so corporate venturing

2. Digital revolution on the rise in Africa

 have a digital platform that enables the business boom (toolkit)

3. some organisations got the World Bank to scale them

 increase knowledge span and management so they do crowdsources, join networks
to share knowledge
 have social innovation -bridge the gap in financial access to the underserved markets
 in data analytics do the prescriptive analysis
 competitors are focused more on the delivery of their financial services so they can
copy what others are doing in terms of innovation in services or can use the ast..
model to see how they improve

Table of Contents

1. DISRUPTIVE INNOVATION.......................................................................................................... 3

2. MANAGING INNOVATION & EXPLOITING BREAKTHROUGH IDEAS (USE TO HELP THEM

UNDERSTAND THE IMPORTANCE OF INNOVATION)....................................................................... 3

3. FIVE STAGES HIGH INVOLVEMENT MODEL (EMPLOYEE INVOLVEMENT)-

UNDERSTANDING WHICH LEVEL THE COMPANY IS ON AT THE MOMENT.................................. 4
4. COLLECTIVE WISDOM & ANALYSIS......................................................................................... 6

5. 4P’S OF INNOVATION SPACE (WHEN IT COMES TO THEIR PRODUCT/SERVICE OR

MAYBE THERE IS A PROBLEM IN HOW IT WAS INTRODUCED TO THE CUSTOMERS BECAUSE
THEY FAIL TO REACH THE YOUNGSTERS)...................................................................................... 7

6. SIMPLIFIED INNOVATION CORE PROCESS (HOW TO FIND OPPORTUNITIES)-

BRAINSTORMING IS NOT A WASTE OF TIME AS IT CAN HELP WITH THE CORE PROCESS .....8

7. INNOVATION SOURCES (TO SAY WHERE THEY CAN GET OPPORTUNITIES)..................... 9

8. INNOVATION SOURCES – HUMAN INGENUITY (SCARED OF CREATIVITY- UNDERPINS

WHY THEY NEED TO ENCOURAGE IN THE CREATIVENESS)...................................................... 10

9. TWO CYCLES FOR INNOVATION ECONOMY (THEY SAID THEY PRIORITISE PRODUCTION
OVER INNOVATION SO EXPLAIN THIS) – NEED TO BALANCE TODAY AND AND TOMORROW
(FUTURE ORIENTATION THAT THEY LACK IN CAUSE THEY SAID WHAT THEY ARE DOING IN
“TODAY” IS ADEQUATE.................................................................................................................... 11

10. NONAKA & TAKEUCHI KNOWLEDGE SPIRAL (HOW THE COMPANY CAN FACILITATE
KNOWLEDGE WITHOUT BRINGING IN OUTSIDE PEOPLE) -HELPS UNDERSTAND THE
IMPORTANCE OF KNOWLEDGE...................................................................................................... 12

11. ISO INNOVATION MANAGEMENT PRINCIPLES (HELP ANALYSE CAPABILITIES SO

WHEN PARTNERING THEY KNOW WHAT THEY HAVE TO OFFER).............................................. 13

12. SCARF NEURO-LEADERSHIP TRIGGERS (USE THIS TO UNDERSTAND WHY ONLY

TWO SENT AN EMAIL)...................................................................................................................... 14

13. COLLABORATIVE INNOVATION: SUPPLIERS.................................................................... 16

14. INNOVATION SOURCES....................................................................................................... 17

15. UNCERTAINTY AND INNOVATION....................................................................................... 18

16. CHESBROUGH’S OPEN INNOVATION................................................................................. 19

17. MOTIVES FOR COLLABORATION....................................................................................... 20

18. MODEL FOR COLLABORATIVE RESEARCH AND INNOVATION (WILL HELP THEM WITH
KNOWLEDGE MANAGEMENT AND UNDERSTANDING WHY THEY COLLABORATE)- AND CAN
HELP FORM PARTNERSHIPS........................................................................................................... 21

19. SHAPING ENERGY IN NETWORKS (SAID SOMETHING ABOUT TRYING TO MAKE

OTHERS EXCITED FOR THE PROJECT AS WELL)......................................................................... 22

20. RIES’ BML WHEEL (USE THIS TO UNDERSTAND THE CUSTOMERS MORE).................23

21. INNOVATION DIFFUSION & ADOPTION (USE THIS TO APPEAL TO THE YOUNGER
CROWD)............................................................................................................................................. 24
22. DIGITAL PLATFORM ENABLED BUSINESSES BOOMING (HELPS ADAPT BUSINESS
MODEL).............................................................................................................................................. 25

23. DATA ANALYTICS (CAN BE USED TO ANTICIPATE/PREDICT WHAT THE COMPETITORS

ARE GOING TO DO)........................................................................................................................... 26

24. MOORE’S CROSSING THE CHASM (HELP UNDERSTAND THE CUSTOMER SEGMENTS)
27

25. OSTERWALDER’S VALUE PROPOSITION CANVAS.......................................................... 28

26. OSTERWALDER’S BUSINESS MODEL CANVAS (HELP TO FIND OPPORTUNITIES ON A

STRATEGIC LEVEL).......................................................................................................................... 29

27. TROUGH OF DISILLUSIONMENT......................................................................................... 30

28. BLAKE & MOUNTON MANAGERIAL GRID (HELPS IDENTIFY WHERE THE LEADERSHIP
IS IN TERMS OF PRODUCTIVITY AND PEOPLE)............................................................................ 31

TOOLS to use in the test

1. Disruptive innovation

Disruptive Innovation-
Deals with new technologies or products that perform badly in the beginning but
eventually become dominant in the market by addressing the needs of new or
underserved customer segments
The performance improvement graph starts slowly but then accelerates rapidly as
the technology or product improves and gains market share
Start in underserved niche markets
Then eventually they become competitive with established products in
mainstream markets
 As it gains market share it then surpasses the established technology or product
and becomes the dominant player in the market

This graph illustrates how disruptive innovations can redefine markets:

Disruptive innovations start below the performance range of existing technology
and initially only appeal to a small market (Market B).
Over time, they improve and begin to meet the needs of mainstream customers
(Market A), displacing established technologies. - expand and become
normalised

Remember that it should be affordable and hits new target markets

Can be used to anticipate and react to potential disruptors like Intel anticipated
what happened and adjusted before they lost their market share – so Bank x
can create its own disruptive technology to adapt to changing markets

Competitors like Tyme bank can be seen as disruptors

2. Managing Innovation & Exploiting Breakthrough Ideas (use to help

them understand the importance of innovation)

This model illustrates the process of managing innovation and aligning it with
strategic objectives to change the trajectory of an organization.
-Current Trajectory: The existing path that the business is on if it continues with
'business as usual'.
-Desired Trajectory: The path the business wants to be on to create innovation
value.
-Strategic Intervention: The application of tools and theories to identify gaps in
the current innovation process and to suggest improvements that will shift the
organisation from its current to its desired trajectory. It implies that without
strategic intervention, the innovation potential may not be fully realized.

3. 3Five stages high involvement model (employee involvement)-understanding

which level the company is on at the moment

Research on implementing HII suggests that there are many stages in this
journey, progressing in terms of the development of systems and capability
to involve people and also in terms of the bottom-line benefits. Each of these
takes time to move through, and there is no guarantee that organisations will
progress to the next level. Moving on means having to find ways of overcoming
the particular obstacles associated with different stages.

Helps us see the involvement of employees in the innovation process.

Level 1: Natural/Background HII

Also called ‘unconscious HII’.

 Problem-solving is random - there is little, if any, HII activity going on, and when it
does happen, it is random and inconsistent
No formal efforts or structure - however, people do help to solve problems from
time to time, but there is no formal attempt to mobilise or build on this activity.
Occasional bursts punctuated by inactivity and nonparticipation
The dominant mode of problem-solving is by specialists
Only has short-term benefits
No strategic impact - not surprisingly, there is less impact associated with this
kind of change.

Employees are not involved or unaware of the innovation process, performance

is low

4. Collective wisdom & analysis

Solution thinking is taking a problem and all of its implicit assumptions for granted
and only focusing on solving the problem as it is given. In order words, it means
taking problem statements and turning them into innovation questions:

I wish SA had a lower global warming impact.

How to benefit from global warming?

(Note: this often leads to very limited forms of innovation and, most often, a
repetition of the underlying issue.
 What is the difference between problem-thinking and solution-thinking?

Problem-based is when the effect is unfavourable to us, and solution-based is

turning the unfavourable effect into a favourable one either by acting on the
cause or by mitigating the effect. Solution-thinking is therefore more optimistic, for
example:

Problem-oriented: I wish I could do "X" but I can't because of "Z".

Solution-oriented: How can I work around "Z" so that I can do "X"?

Problem-oriented: I can't afford that.

Solution-oriented: How can I afford that?

Solution orientated: How FNB ensure that they keep their client or how can they
appeal to the younger market

5. 4P’s of innovation space (when it comes to their product/service or maybe

there is a problem in how it was introduced to the customers because they fail to reach the
youngsters)

4Ps of Innovation Space

This model identifies four key areas (4Ps) that organizations can consider when
thinking about innovation:

 Product (Service): Innovation in the goods or services offered.

 Process: Innovation in the way products or services are created and
delivered.
 Position (about introduction): Innovation in the context in which products or
services are introduced.
 Paradigm (Mental Model): Innovation in the underlying mental models which
frame what the organisation does.

This framework suggests that innovation can occur in multiple areas, not just in
the development of new products but also in the ways these products are
created, delivered, and conceptualised.

6. Simplified innovation core process (how to find opportunities)- brainstorming

is not a waste of time as it can help with the core process

This process is designed to help an organization navigate the innovation journey,

consisting of four main steps:
Search: Identify opportunities for innovation within the market or organizational
environment. This can be done through:
Brainstorming
Market research
Customer feedback
The goal is to find potential areas of innovation
Select: Choosing which ideas to develop based on their potential and alignment with the
organization's strategy. Feasibility studies are conducted to determine the viability of the
proposed innovation
Implement: Executing the chosen ideas and turning them into real, operational
innovations. Includes activities like prototyping, testing and commercialisation
The goal is to turn an idea into a tangible product, service or process
Capture: Gaining benefits from the innovations, such as increased market share,
improved efficiency, or other strategic advantages.
Can capture value through different methods like:
Intellectual property protection
licensing
partnerships

This model emphasizes having a clear innovation strategy and an organizational culture
that supports innovation

BUT
Remember that the innovation process is not linear, there are feedback loops and
iterations between the stages.
The innovation process depends on the organisation’s culture, available resources, and
the level of support from stakeholders

7. Innovation sources (to say where they can get opportunities)

This model identifies various sources of innovation such as:

Shock to the system, accidents, watching others, contradictions, anomalies, enigmas,
and serendipity, among others.

Practical Use: Organizations can use this model to recognize and harness different
sources of innovation.

Need to be aware of triggers and actively seek out diverse opportunities, so companies
can fuel their innovation pipeline.

8. Innovation sources – human ingenuity (scared of creativity-

underpins why they need to encourage in the creativeness)

This complex model illustrates various components that stimulate creative thinking and
innovation:

Imagination: The process of forming new ideas, which is at the core of innovation.

Practical use: This can be used as a guide for developing an innovative mindset within
an organization. It suggests areas where companies can focus on building a culture
of innovation, such as enabling employees to challenge existing paradigms and
fostering an environment that encourages experimentation and networking.

At the root of innovation is imagination so when dealing with techniques use your
imagination, through different lenses or innovator DNA
9. Two cycles for innovation economy (they said they prioritise production over
innovation so explain this) – need to balance today and and tomorrow (future orientation that they
lack in cause they said what they are doing in “today” is adequate.

Two Cycles for Innovation Economy

This model contrasts two different innovation cycles:

Operations Cycle: Focused on the present ("Today"), this cycle deals with the
existing operations of the company. It is characterized by rules, routines, and
known solutions, and relies on logical and analytical thinking.
Innovation Cycle: Geared towards the future ("Tomorrow"), this cycle involves
experimentation and exploratory thinking. It's less structured and more
playful, focusing on testing new ideas and concepts.

The model suggests that balancing both cycles is vital for a sustainable
innovation economy within an organization.
10. Nonaka & Takeuchi knowledge spiral (how the company can
facilitate knowledge without bringing in outside people) -helps understand the importance of
knowledge

Nonaka & Takeuchi Knowledge Spiral

The model explains how knowledge is created and expanded within organizations
through four modes of knowledge conversion:

Socialization (from tacit to tacit knowledge): knowledge is shared through

communication and observation.

For example, an experienced employee teaches a new employee how to perform a task
through hands-on training.

Externalization (from tacit to explicit): conversion of tacit to explicit. Tacit knowledge lies
in language, diagrams and other forms of communication to make it explicit and
shareable

For example, a team discusses their shared experiences and observations in a meeting
and develops a model or diagram to represent their understanding of a problem

Combination (from explicit to explicit): combines different types of explicit knowledge to

create new knowledge. The explicit knowledge is combined to create new ideas,
concepts and theories.

For example, a team combines their individual models or diagrams to create a new
framework for understanding a problem
Internalization (from explicit to tacit): involves the transformation of explicit knowledge
into tacit knowledge. Individuals apply explicit knowledge to real-world situations and
internalise it through experience.

For example, employees may apply a new framework or concept learned from the team
meeting to a problem and gain tacit knowledge through experience

Practical Use: This model is instrumental in organizational learning and knowledge

management. Companies can facilitate these processes to improve product
development, decision-making, and strategic planning. Also highlights the importance of
socialisation and collaboration in creating new knowledge and the need for individuals
to internalise knowledge through experience.

11. ISO innovation management principles (help analyse capabilities so

when partnering they know what they have to offer)

The innovation management principles are developed to capture the essence of

effective management of innovation activities. They are used as an introduction
to understanding the innovation management system or as a tool for
assessing the innovation management capabilities of an organisation. So the
principles are used to see the management’s capabilities

Helps us understand the innovation management system and is a tool for

assessing management capabilities

The company doesn’t foster culture and doesn’t have future-focused leaders
 basically checks elements that are currently in the business

1. Future-focused leaders
Leaders at all levels, driven by curiosity and courage, challenge the status
quo by building an inspiring vision and purpose and by continuously engaging
people to achieve those aims
2. Culture
Shared values, beliefs and behaviours, supporting openness to change, risk
taking and collaboration enable the coexistence of creativity and effective
execution.
3. Adaptability (I think they can adapt if they went through whatever that
situation was)
Changes in the context of the organization are addressed by timely adaptation
of structures, processes, competencies and value realization models to
maximize innovation capabilities.

12. Scarf neuro-leadership triggers (helps in collaboration

and understanding employees)

The SCARF model is derived from neuroscience and outlines how certain social
triggers can impact individuals in the workplace, affecting their engagement and
productivity. SCARF stands for Status, Certainty, Autonomy, Relatedness, and
Fairness:
Status: Refers to one's relative importance to others. Positive feedback, learning
opportunities, and public acknowledgement can be perceived as 'rewards' and
enhance an individual's status, whereas performance reviews or public critique
might be perceived as 'threats', potentially reducing status.
People are wired to seek higher status and avoid situations where they can lose
their status.
Certainty: Involves clear expectations and knowing what to expect in the future,
which can be comforting. [Lack of clarity ]or [unpredictability] can create
uncertainty, which is perceived as a threat.
People are more comfortable when they sense-certainty and control over
circumstances
Autonomy: Providing choices and a sense of control can serve as a reward.
Conversely, micromanagement or authoritarian leadership can be threatening by
reducing autonomy. - diminishes the sense of control and provision of choices
Refers to – the level of control that people feel over their actions and decisions.
People want a sense of autonomy and agency in their lives.
Relatedness: This involves feeling a sense of safety with others - being part of a
group. Friendly gestures, socializing, and mentoring can foster relatedness, while
the opposite can be isolating and perceived as a threat.
Fairness: Is about transparent decision-making and equal treatment. A lack of
transparency, unequal treatment, or unclear rules are perceived as unfair and
thus a threat.

Leadership that understands and responds to these SCARF triggers can create a
more positive working climate, influencing the motivation and engagement of
team members. This model provides a framework for leaders to understand and
optimize their interactions with their teams to foster a more productive and
collaborative work environment.
Basically helps understand and manage employees
13. Collaborative Innovation: Suppliers

Model Explanation: This model maps out how the nature of a supplier
relationship can influence innovation, particularly in how closely companies
work with their suppliers (from not coupled to tightly coupled) and the nature of
the supply market (from homogeneous to indeterminate).
Loosely Coupled: These are less integrated but can still offer benefits like co-
innovation.
Tightly Coupled: Highly integrated, often leading to process and product
innovations, quality improvements, and lead-time reduction.
Not Coupled: Standard market relations with less collaboration and innovation
potential. The objective is to reduce costs

Practical Business Use: Companies can analyse and categorize their supplier
relationships with this model to identify opportunities for deeper collaboration.
Strategic procurement teams might seek to move from standard market
relations to a more tightly coupled relationship where co-innovation with
suppliers can lead to competitive advantages.

Foster trust and communication, set objectives for the partnerships and
can select how open you want to be. Also state what would be mutually
beneficial
14. Innovation sources

This model identifies various sources of innovation such as:

Shock to the system, accidents, watching others, contradictions, anomalies, enigmas,

and serendipity, among others.

Practical Use: Organizations can use this model to recognize and harness different
sources of innovation.

Need to be aware of triggers and actively seek out diverse opportunities, so companies
can fuel their innovation pipeline.

Can use regulation as an innovation source or they can use user-led innovation to
minimise that other client from feeling neglected
15. Uncertainty and innovation

This model demonstrates the relationship between innovation, time, and resource
commitment under conditions of uncertainty:

As time progresses, the uncertainty around technological and market conditions typically
decreases.

Concurrently, resource commitment increases as more is learned about the innovation

and as the organization begins to 'lock-in' to its implementation.

Practical Use: Businesses can use this model to manage the risk of innovation. In the
early stages, they can invest minimally and explore multiple options. As the market
or technology uncertainty reduces, they can confidently allocate more resources.

In a practical business context, these models serve as frameworks to guide strategic

planning, product development, and innovation management. They help organizations
navigate the complexities of bringing new ideas to market, managing technological and
market uncertainties, and ensuring that products are both feasible and aligned with
customer needs.
16. Chesbrough’s open innovation

Chesbrough’s Open Innovation

Remember that not all smart people work for you so external ideas create
value

Chesbrough's model of open innovation contrasts traditional, closed innovation

with a more modern, open approach:

Closed Innovation: Ideas and projects are developed internally within firm
boundaries, and only successful projects reach the market.

Rely on internal resources to develop new products, services and technologies

The company operates in a closed system with limited external collaboration

Open Innovation: The boundaries are porous, allowing ideas and projects to
move more freely between the firm and the external environment, including ideas
that can be sourced externally and projects that can be spun out if they don't fit
the company’s current market.

Actively seek external partners to create new products, services and technologies

Thus it’s an open system with a greater collaboration

Practical Use: Businesses can apply open innovation principles to accelerate

their innovation process, leveraging external ideas and pathways to market. This
can include forming partnerships, engaging in crowdsourcing, and collaborating
with other organisations for research and development.
17. Motives for collaboration

This framework outlines the reasons organizations engage in collaboration before and
after beginning a New Product Development (NPD) project. Before, motives might
include meeting customer needs and reducing risk. After, issues can arise like leakage of
information and conflicts due to divergent aims and objectives.

Remember trust and communication need to be cultivated in such settings

Practical Business Use: Companies considering partnerships can use this framework
to proactively address potential changes in collaborative dynamics. This can be
especially important for aligning goals, securing intellectual property, and managing
expectations.
18. Model for collaborative research and innovation (will help them with
knowledge management and understanding why they collaborate)- and can help form
partnerships

Model Explanation:

We start with the intent to learn and then we move to the factors that may help
foster this learning process

This model outlines factors influencing successful collaboration in research and

innovation, including strategic leadership, technology development, organizational
competence, alliance design, and learning intent.

Practical Business Use:

Strategic Partnerships: When forming alliances or partnerships for innovation,

businesses can assess these dimensions to choose compatible partners and design
effective collaboration strategies.

Knowledge Management: It emphasizes the importance of learning and knowledge

transfer between entities, which can be vital for joint ventures and research
collaborations.
19. Shaping energy in networks (said something about trying to make others excited
for the project as well)

This model represents an individual at the centre of various personal and professional
relationships. The model says that energies are contagious. Each type of relationship
can contribute positively or negatively to one's energy:

Positive Influences: Represented by smiling emojis, are relationships that positively

charge an individual's energy. Thus making it a productive and positive environment

Negative Influences: Represented by less happy or angry emojis, are relationships that
may be draining or challenging to one's energy. Thus hindering productivity

Practical use: Individuals can map out their personal and professional relationships to
actively manage and optimize their energy and well-being. Companies can also use this
framework to create support systems that foster positive working relationships.

Helps analyse teams in the workplace as well.

20. Ries’ BML wheel (use this to understand the customers more through feedback)

Ries’ Build-Measure-Learn Wheel

Eric Ries' Lean Startup methodology is encapsulated in this model, which

promotes the idea of developing products iteratively through a cycle of building,
measuring, and learning through experimentation and feedback:

Build: Start by building a Minimum Viable Product (MVP) or a product prototype

that is good enough to test the market hypothesis. This stage is about getting the
product or service out to the market as quickly as possible so that it can be tested

Measure: Collect data on how the MVP performs in the real world. We need to
know whether it failed or succeeded. The goal is to measure the key metrics with
success such as customer engagement, retention and conversion rates. Data
collected will validate or invalidate assumptions made at the build stage -basically
did we achieve our assumptions?

Learn: Analyse the data to determine whether to pivot (change strategy) or

persevere (continue with the current strategy). We need to identify what is
working and what is not.

Practical Use: Start-ups and businesses can use this approach to validate their
business ideas and adapt quickly. It minimizes the resources spent on
 products or features that do not meet customer needs by encouraging rapid
iteration (repetition of the process) based on user feedback.

The principle involves designing a hypothesis to test an idea and adjust the
project based on feedback. For instance, a feature can be tested based on
people's liking and value, with the option to retain or drop it.
If they really don’t want to collaborate then they can do this to find out
more of why their product is not being adopted

21. Innovation diffusion & adoption (use this to appeal to the younger
crowd)-shows the characteristics of innovation

Rogers' Diffusion of Innovations theory identifies five attributes that influence the
adoption of new technologies. The innovation needs to score high in the five
attributes otherwise it will not be adopted:

Relative Advantage: The degree to which an innovation is seen as better than the idea
it supersedes.

Compatibility: How consistent the innovation is with the values, experiences, and needs
of potential adopters.

Complexity: How difficult the innovation is to understand and use.

Trialability: The degree to which an innovation can be experimented with before full
adoption. If the innovation can be tried out before full adoption then they are more likely
to be adopted. Not forgetting this is on a limited basis

Observability: The extent to which the results of an innovation are visible to others.
Innovations that are easily observed and demonstrate their benefits are more likely to be
adopted

Practical Business Use: When introducing new products or technologies, companies

can evaluate them against these attributes to predict their uptake and plan marketing
strategies accordingly. This guides the development of a product/service by identifying
areas of improvement to increase the likelihood of adoption and diffusion.

22. Digital platform enabled businesses booming (helps adapt business

model)

This illustrates the shift from traditional value chains to digital platform
ecosystems:
Traditional Value Chain (“Pipelines”): Linear and one-way value creation
process, from production to consumption.
Platform-driven “Ecosystems”: Two-way and continuous value creation that
involves interactions between consumers, producers, and the platform itself.

Basically, the business booms based on the implemented digital platform

Practical Use: Companies can leverage this model to transform their business
strategy from a linear approach to a platform-centric one, which can facilitate the
creation of a more scalable and dynamic business model that adapts to
changes in consumer behaviour and technology.
In practical terms, these models can be applied across various stages of
business development and innovation strategy. Companies can use them for
guiding product development, data strategy, anticipating market changes, and
adapting to new business models to ensure they remain competitive in a rapidly
changing market
The model of digital platform-enabled businesses has indeed seen a significant
boom across various sectors, transforming traditional industries and creating
entirely new market dynamics. A digital platform acts as a foundation that
facilitates the interactions between producers, consumers, and other stakeholders,
allowing for the exchange of goods, services, or social currency. This model
leverages technology to connect people, assets, and information, leading to the
creation of value and growth opportunities that were not possible before

23. Data analytics (can be used to anticipate/predict what

the competitors are going to do)

This model outlines the levels of data analytics, which become increasingly
sophisticated and predictive:
Descriptive Analytics: Answers "what happened?" by summarizing past data.
Predictive Analytics: Answers "what could happen?" by using past data to
predict future outcomes.
Prescriptive Analytics: Answers "what should we do?" by suggesting actions to
take to affect desired outcomes.
The model has four quadrants, each one representing a different level of data
analytics and competitive advantage:

Data-driven operational efficiency -descriptive analytics:

firms have basic data analytics capabilities and can use them to improve
efficiency and reduce costs
don’t gain a competitive advantage from their efforts

Insight-driven decision making -descriptive analytics:

Firms have more sophisticated data analytics capabilities
Use them to gain insights into consumer behaviour, market trends and factors
that inform strategic decision-making
Gain moderate competitive advantage from efforts

Predictive analytics for competitive advantage -predictive analytics:

Have advanced data analytics capabilities
Use them to predict future outcomes and identify opportunities for innovation and
growth
Gain a competitive advantage through efforts
Cognitive analytics for disruptive innovation -prescriptive analytics:
Highly advanced data analytics capabilities
Used to develop new business models, products and services that disrupt their
industries
Gain a transformative level of competitive advantage through efforts

Practical Use: Businesses can use this model to build their analytics capabilities
in stages, starting with understanding past performance, then predicting future
trends, and finally optimizing decision-making to drive business actions.

24. Moore’s Crossing the Chasm (help understand the

customer segments)

The model describes the different groups of customers (who have their own needs and
characteristics) a new technology product must appeal to, to achieve mainstream
success

The picture shows the adoption lifecycle (the x-axis represents time and the y-axis
shows the number of users)

There are different customer segments such as techno junkies (first users
(innovators) to adopt a new technology product) – comfortable with risk and uncertainty,
so they are willing to experiment with the product.

Visionaries (these are the early adopters, they are attracted to new and innovative
ideas and willing to take some risks)

Pragmatists (early majority) -this is the first wave of mainstream users, more cautious
and practical. Need to see that the product is reliable, useful and easy to use before they
can adopt

Conservatives (late majority)-these are the second wave of mainstream users. They are
cautious and sceptical. They need to see clear evidence of the benefits
Sceptics (laggards) -the last group to adopt new technology products. They are resistant
to change and may adopt the technology when it becomes necessary

Geoffrey Moore’s model addresses the challenge of moving from early adopters to the
early majority in a technology’s lifecycle. We want to get the tech across the chasm:

Early Market: Where technology enthusiasts and visionaries adopt the product.

Chasm: The difficult gap where a product must move to gain acceptance by the early
majority. – it’s a difficult gap because of the different characteristics and needs the
product needs to accustom too, to be adopted by the early adopters

Mainstream Market: Where the majority of potential customers lie, including the early
majority, the late majority, and the laggards.

Practical Business Use: Companies can use this model to tailor their marketing and
product development strategies when moving from early adopters to a broader market,
focusing on whole-product solutions and targeting pragmatists in the mainstream market

25. Osterwalder’s value proposition canvas

Osterwalder’s Value Proposition Canvas

It’s focused on two areas:

The Value Proposition of a product or service and the Customer Segment. The canvas
helps to ensure that the product or service is tailored to meet the customer’s needs and
pain points.

Practical Use: Companies can use this canvas to refine their product development or
marketing strategies, ensuring that their offerings are directly addressing what customers
want and need.
 26. Osterwalder’s Business Model canvas (help to find
opportunities on a strategic level)

.
The tool helps you map, discuss, design, & invent new business models by
visualizing your entire business model (offering of the business basically what
the business does) in one image.

Osterwalder’s Business Model Canvas

This strategic management tool is used for developing new business models or
documenting existing ones. It consists of nine segments:

Key Partners, Key Activities, Key Resources, Value Propositions, Customer

Relationships, Channels, Customer Segments, Cost Structure, and Revenue Streams.

Practical Use: Start-ups and existing businesses use the Business Model Canvas to
strategize and plan out business models, exploring how various elements of their
business fit together and where they can innovate or improve.

Osterwalder’s Business Model Canvas is a strategic management tool that helps

organizations understand, design, and innovate their business models. It is
especially useful for visualizing the entire business on a single page, identifying
opportunities, and aligning business activities.

Can gather opportunities and understand a business on a strategic level by laying out the
different components of the company on a canvas
 27. Trough of disillusionment

This model is part of the Hype Cycle, which reflects the life cycle stages of
technology from inception to maturity and widespread adoption:

Technology Trigger: The initial concept or product launch that triggers interest.

Peak of Inflated Expectations: A period of over-enthusiasm and unrealistic

projections.

Trough of Disillusionment: Interest wanes as experiments and implementations

fail to deliver.

Slope of Enlightenment: More instances of how technology can benefit the

enterprise start to crystallize and become more widely understood.

Plateau of Productivity: Mainstream adoption starts to take off. The

technology’s broad market applicability and relevance are paying off.

Practical Use: Businesses can use this model to temper their expectations and
investment in new technologies, recognizing that a period of disillusionment
often follows initial excitement. It's useful for strategic planning and for setting
realistic timelines for technology adoption.

Essentially you can have the best planning in the world & out of nowhere things change
Client feeling neglected is more of the user-led innovation

User-led innovation is applicable if you engage this client in the development

process of new services or improvements tailored to their needs, and these
innovations could benefit your wider client base. This involves taking input directly
from the client and allowing it to influence the design and development of your
services.

 Example: If in response to the client's feedback, you co-develop a new

reporting mechanism or customer service protocol that both addresses their
unique concerns and is scalable to other clients, this would be a case of user-
led innovation.

In dealing with your client's current dissatisfaction, focusing on a user-led innovation

approach might be more apt. By involving them directly in creating solutions
that address their pain points, you not only mend the relationship but potentially
innovate in ways that benefit your broader client portfolio. This strategy turns the
challenge into an opportunity for improvement and possibly new service offerings.

28. Blake & Mounton managerial grid (helps identify where the
leadership is in terms of productivity and people)- helps us understand what kind of
environment is fostered in the organisation

This model is a self-assessment tool by which individuals and organisations

identify a manager’s or leader’s style. So it shows if the leader is people-
centric or production-centric.
The model highlights the degree to which a manager or leader focuses on
production, people or both. This depends on where the person falls on the grid,
their behavioural or managerial style can be determined.
For example, if the concern for people is low and the concern for output produced
is low then the managerial style followed is impoverished leadership.

On the horizontal axis: high concern for production shows that the leader
prioritises objectives, results and productivity when determining how a task
should be accomplished.
On the vertical axis: high concern for people shows that the leader prioritises
the needs and interests of people when determining how a task should be
accomplished.

Impoverished leadership:
management style is ineffective in meeting people’s needs and generating
positive results for the organisation.
It leads to disharmonious work environment and fails to resolve conflicts among
team members
Produce or perish leadership:
Another term for this kind of leadership is authoritarian
Results are achieved through strict and punitive measures
Low concern for people impacts team morale and motivation - eventually leads to
decline in quality and timeliness of desired results
Middle of the road management: Leader falls in the centre of the grid
The manager is equally concerned about production and the people
Try to achieve balance, however, it can be ineffective because they are
unable to prioritise either aspect
Country club management:
Management tries to satisfy people at work
They believe happy people will work hard and generate good results for the
company
They trust people to manage themselves so there is no direction and coaching -
leads to productivity suffering and results are not satisfactory
Team management:
Management is highly committed to production and people
Commitment leads to a positive work environment where people feel respected,
seen and heard
The environment fostered is one that motivates and inspires people to give their
best effort - thus productivity goes up and desirable results can be obtained
Increase in employee satisfaction - reduction in absenteeism and turnover.
29. Altshuller’s innovation pyramid (do they want to copy
others instead?)

Altshuller’s Innovation Pyramid

This model categorizes innovation into levels based on the novelty (openness)
and impact of the solution:

Level 1: Apparent solutions that rearrange existing components without

introducing innovation. – no new innovation
Copy existing products or ideas
Innovation is focused on the replication of what has been done rather than
creating something new.
Practical Use: A company can use this model to evaluate the level of innovation
in their product development process. This could help in strategically investing
resources to move from simple improvements to more transformative
innovations.
30. Albert Bandura on Self- Efficacy (can help in the employees become more
comfortable & confident with the tasks given to them)

Albert Bandura on Self-Efficacy

Bandura's theory focuses on the belief in one's capabilities to execute the courses of
action required to manage prospective situations. It contrasts low self-efficacy
individuals, who doubt their abilities, with high self-efficacy individuals, who approach
difficult tasks as challenges to be mastered.

The model describes two types of people which influence their propensity for
[innovation and risk-taking]

Practical Use: This can be used in personal development, educational settings, and
workforce training to help individuals build confidence and resilience. In management, it's
useful for developing leadership programs and supportive environments that
enhance employees' self-efficacy.

Employees in this company may be scared of taking risks but also management needs to foster an
environment where taking risk is not an issue