Technology and Business Model Innovation – YSS32306
Lecture 1 | Introduction
Global challenges
• Food security
• Climate change
• Biodiversity
• Bio-based economy
• Health and nutrition
Two challenge: two times
• More
• Less
• Better
Healthy food and nutrition for 10 billion people in 2050 within the carrying capacity of our planet
New technologies: ICT trends
Everywhere – anything – anywhere – everybody
• Mobile/cloud computing – smartphones, wearables, incl. sensors
• Internet of Things – everything gets connected in the internet (virtualization, M2M, autonomous
devices)
• Location-based monitoring – satellite and remote sensing technology, geo information, drones, etc.
• Social media – Facebook, Twitter, Wiki, etc.
• Big data – web of data, linked open data
High potential for unprecedented innovations!
Captured in new business models
Business Model Canvas
• New customers → the bottom of the pyramid; emerging middle classes
• New channels → last-mile distribution; reinvent the store around the corner; Coop Italia’s
supermarket of the future
• (Customer) Relationships → IoT and the consumer; IoT in Agri-Food Supply Chains
• New (key) activities → smart farming, food printing
• (Key) Resources → production systems to increase efficiency, protein transition debate,
competences to reduce food waste
• New (key) partners → John Deere goes from machinery to data
1
,Consumer link between Agrifood & Health sectors
Partnerships: fading industry boundaries
• Healthcare
• Energy
• Data – personalized food, smart supply chain
• Plastics – fibres (cotton, garments)
• Smart supply chains
Functions of a business model
• Business model = “a tool that allows inventors to profit from their ideas and inventions”
• Value creation = “a series of activities that enable the user to recognize the benefits he/she can
gain out of the invention/innovation
• Value capture = “being able to benefit from the value created by the invention/innovation”
Inventions and innovations
• Got ideas? Go from inspiration to innovation
• The wheel is an invention, the innovation is the car
Definitions of innovation
• ‘Innovation is the successful exploitation of ideas’ – Department of Trade and Industry (2004, p. 5)
• ‘The first commercial application or production of a new product or process’ – Freeman & Soete
(1997, p. 1)
• ‘The intentional introduction and application within a role, group or organization of ideas,
processes, products or procedures, new to the relevant unit of adoption, designed to significantly
benefit the individual, the group, the organization or wider society.’ – West and Far (1990) in
Anderson et al. (2004, p. 148)
Invention, commercialization and diffusion
Diffusion of innovations →
Forms of innovation
• Product innovation – the development of a novel/new product
- Using a new technology (e.g. Dyson’s ‘dual cyclone vacuum)
- Re-configuring a technology (e.g. Sony Walkman)
- Better at meeting consumer needs or meeting new consumer needs (e.g. Workmate workbench)
• Service innovation – offering a new/different service to consumers
- Using a new technology (e.g. Amazon.com)
- Better at meeting consumer needs (e.g. EasyJet, Paypal)
- Meeting new consumer needs (e.g. Facebook)
• Process innovation: new way of making things or delivering services
- e.g. F.W. Taylor’s ‘scientific management’
- e.g. Ford’s moving assembly line
- e.g. Toyota’s Just-in-Time production
2
,Degree of innovation
Incremental innovation → radical innovation
Low novelty high novelty
Radical innovation
Lecture 2 | Revolutionizing technologies, from industry 1.0 to industry 4.0
We are guests in this world…
• Since the existence of the universe about 15 billion years ago, we as the human species actually
just recently arrived on this planet.
• Assuming that the Earth started to exist one year ago, the human species would then be only 10
minutes old, while the industrial era started two seconds ago.
Industry 0.0, Agriculture 0.0
• Paleotithic and Mesolithic Age
• 3 billion BC to 10.000 BC
• Nomadic Lifestyle
• Hunting and Food gathering
Neolithic Revolution – Agriculture 1.0
Agricultural Revolution
• 10.000 BC
• Settlement
• Raising of crops for food
• Domestication of animals
• Surplus of food → increase of population
Compare innovation in the four different development approaches. How is innovation achieved?
3
, Scientific Revolution and Engineering
First Industrial Revolution – Industry 1.0
• From hand production methods to machines
• The steam engine developed in 1769, was one of the results of advanced engineering that marks
the initiation of the beginnings of the First Industrial Revolution.
• This also implied the transition from a predominantly agrarian and rural society to an industrial and
urban society.
Second Industrial Revolution – Industry 2.0
• Further advancements in manufacturing and production technology
• Advent of electricity
• Mass production
• Division of labour
Disruptive
• A disruptive innovation is an innovation that creates a new market and value network and
eventually disrupts an existing market and value network, displacing established market leading
firms, products and alliances.
• E.g. mass-produced automobile was a disruptive innovation, because it changed the transportation
market
Luddism
• The Luddites were a group of English textile workers and weavers in the 19th century who
destroyed weaving machinery as a form of protest.
• Luddites feared that the time spent learning the skills of their craft would go to waste as machines
would replace their role in the industry.
4
Lecture 1 | Introduction
Global challenges
• Food security
• Climate change
• Biodiversity
• Bio-based economy
• Health and nutrition
Two challenge: two times
• More
• Less
• Better
Healthy food and nutrition for 10 billion people in 2050 within the carrying capacity of our planet
New technologies: ICT trends
Everywhere – anything – anywhere – everybody
• Mobile/cloud computing – smartphones, wearables, incl. sensors
• Internet of Things – everything gets connected in the internet (virtualization, M2M, autonomous
devices)
• Location-based monitoring – satellite and remote sensing technology, geo information, drones, etc.
• Social media – Facebook, Twitter, Wiki, etc.
• Big data – web of data, linked open data
High potential for unprecedented innovations!
Captured in new business models
Business Model Canvas
• New customers → the bottom of the pyramid; emerging middle classes
• New channels → last-mile distribution; reinvent the store around the corner; Coop Italia’s
supermarket of the future
• (Customer) Relationships → IoT and the consumer; IoT in Agri-Food Supply Chains
• New (key) activities → smart farming, food printing
• (Key) Resources → production systems to increase efficiency, protein transition debate,
competences to reduce food waste
• New (key) partners → John Deere goes from machinery to data
1
,Consumer link between Agrifood & Health sectors
Partnerships: fading industry boundaries
• Healthcare
• Energy
• Data – personalized food, smart supply chain
• Plastics – fibres (cotton, garments)
• Smart supply chains
Functions of a business model
• Business model = “a tool that allows inventors to profit from their ideas and inventions”
• Value creation = “a series of activities that enable the user to recognize the benefits he/she can
gain out of the invention/innovation
• Value capture = “being able to benefit from the value created by the invention/innovation”
Inventions and innovations
• Got ideas? Go from inspiration to innovation
• The wheel is an invention, the innovation is the car
Definitions of innovation
• ‘Innovation is the successful exploitation of ideas’ – Department of Trade and Industry (2004, p. 5)
• ‘The first commercial application or production of a new product or process’ – Freeman & Soete
(1997, p. 1)
• ‘The intentional introduction and application within a role, group or organization of ideas,
processes, products or procedures, new to the relevant unit of adoption, designed to significantly
benefit the individual, the group, the organization or wider society.’ – West and Far (1990) in
Anderson et al. (2004, p. 148)
Invention, commercialization and diffusion
Diffusion of innovations →
Forms of innovation
• Product innovation – the development of a novel/new product
- Using a new technology (e.g. Dyson’s ‘dual cyclone vacuum)
- Re-configuring a technology (e.g. Sony Walkman)
- Better at meeting consumer needs or meeting new consumer needs (e.g. Workmate workbench)
• Service innovation – offering a new/different service to consumers
- Using a new technology (e.g. Amazon.com)
- Better at meeting consumer needs (e.g. EasyJet, Paypal)
- Meeting new consumer needs (e.g. Facebook)
• Process innovation: new way of making things or delivering services
- e.g. F.W. Taylor’s ‘scientific management’
- e.g. Ford’s moving assembly line
- e.g. Toyota’s Just-in-Time production
2
,Degree of innovation
Incremental innovation → radical innovation
Low novelty high novelty
Radical innovation
Lecture 2 | Revolutionizing technologies, from industry 1.0 to industry 4.0
We are guests in this world…
• Since the existence of the universe about 15 billion years ago, we as the human species actually
just recently arrived on this planet.
• Assuming that the Earth started to exist one year ago, the human species would then be only 10
minutes old, while the industrial era started two seconds ago.
Industry 0.0, Agriculture 0.0
• Paleotithic and Mesolithic Age
• 3 billion BC to 10.000 BC
• Nomadic Lifestyle
• Hunting and Food gathering
Neolithic Revolution – Agriculture 1.0
Agricultural Revolution
• 10.000 BC
• Settlement
• Raising of crops for food
• Domestication of animals
• Surplus of food → increase of population
Compare innovation in the four different development approaches. How is innovation achieved?
3
, Scientific Revolution and Engineering
First Industrial Revolution – Industry 1.0
• From hand production methods to machines
• The steam engine developed in 1769, was one of the results of advanced engineering that marks
the initiation of the beginnings of the First Industrial Revolution.
• This also implied the transition from a predominantly agrarian and rural society to an industrial and
urban society.
Second Industrial Revolution – Industry 2.0
• Further advancements in manufacturing and production technology
• Advent of electricity
• Mass production
• Division of labour
Disruptive
• A disruptive innovation is an innovation that creates a new market and value network and
eventually disrupts an existing market and value network, displacing established market leading
firms, products and alliances.
• E.g. mass-produced automobile was a disruptive innovation, because it changed the transportation
market
Luddism
• The Luddites were a group of English textile workers and weavers in the 19th century who
destroyed weaving machinery as a form of protest.
• Luddites feared that the time spent learning the skills of their craft would go to waste as machines
would replace their role in the industry.
4
