Franz Johannes Reyes

Topics

• What is Innovation

• Innovation Definition

• Innovation Impact on Market

• Innovation Taxonomy & Innovation

Matrix

• Different classification of innovation

and the different purpose/example of
innovation.

• Why is Innovation a Confusing Topic?

• Innovation in the Entrepreneurial

Mindset

• Benefits of Innovative
Products/Services
 Why Does Innovation
Matters?
Fuels economic growth and
What is Innovation? competitiveness
Solves real-world problems
Encourages creative thinking and
adaptability
Innovation is the process of Drives progress toward the Sustainable
Development Goals (SDGs)
creating and applying new
ideas, methods, products, or
services that bring about
improvement or value. It’s not
just about invention — it’s Linked SDGs
about making things better, SDG 4 – Quality Education
- Encourages critical thinking, problem-solving,
more efficient, more and innovation in learning environments
SDG 9 – Industry, Innovation, and Infrastructure
sustainable, or more accessible. - Promotes sustainable industries and fosters
innovation as a key to development
1. Disruption of Traditional 4. Expansion Through Global
Models
Innovation replaces outdated products and
Collaboration
Innovation drives international partnerships in
R&D, knowledge sharing, and supply chains.
services with smarter, faster, and more
efficient Example: Cross-border tech startup incubators
Example:alternatives.
Ride-hailing apps (e.g., Grab) replacing
taxis

2. Creation of New Markets 5. Boost in Competitive Advantage

Leads to the birth of entirely new industries Gives companies a unique edge, helping them
and consumer needs. lead in global markets.
Example: Virtual reality, cryptocurrency, Example: Apple’s constant innovation in design &
sustainable fashion user experience

3. Improved Productivity & Linked SDGs

Efficiency
Streamlines production and service delivery, SDG SDG 9 – Industry, Innovation and
reducing costs and increasing output. Infrastructure
- Builds sustainable industries through
Example: Automation in logistics and AI-powered
innovation
SDG and modern
17 – Partnerships fortechnology.
the Goals
tools
- Encourages global cooperation and sharing of
innovation for development
 Innovation
Taxonomy
What is Innovation Taxonomy? Linked SDGs
It’s a system for classifying different types of SDG SDG 9 – Industry, Innovation and
innovation based on what area of the business or Infrastructure
product it changes. - Encourages innovation to boost sustainable
industry, competitiveness, and technological
advancement.

4 Main Types of Innovation

Type Definition Example

Creating new or improved
Product Innovation Electric cars, smartwatches
products or services
Improving how products are
Automation in factories,
Process Innovation made or services are
cloud systems
delivered
Changing the way value is
Business Model Subscription models, gig
created, delivered, or
Innovation economy apps
captured
Changing internal
Organizational Hybrid work setups, agile
structures, practices, or
 Innovation
Matrix
What is Innovation Matrix? Why This Matters:
The Innovation Matrix is a strategic tool used to Helps entrepreneurs and businesses choose
categorize and assess different types of innovation the right innovation strategy
based on two main dimensions: Shows how radical ideas or small changes
Technology/Innovation Change – How new or can both create value
different the technology or idea is. Encourages balanced innovation – not just
Market Change – How new or different the target flashy tech, but smart application
market is.

Linked SDGs
SDG SDG 9 – Industry, Innovation and
Infrastructure
- Encourages innovation to boost sustainable
industry, competitiveness, and technological
advancement.
 Innovation
Matrix

Innovation Matrix (2x2

Framework)

New Market Existing Market

Disruptive Innovation Incremental Innovation
- Creates a new market - Gradual improvements
- Displaces established
New Technology
leaders Examples: iPhone
camera upgrades, new
Examples: Uber, Canva flavors of Coke
Architectural Innovation
Incremental Innovation
- Existing tech used in a
- Gradual improvements
new way
Existing Technology
Examples: iPhone
Examples:
camera upgrades, new
Smartwatches, IKEA
flavors of Coke
 Classification of
Innovation
Type Purpose Example
Solves problems using new Self-driving cars, 5G, solar
Technological Innovation
tech or R&D panels
Improves lives, especially in Microfinance, community
Social Innovation
underserved communities learning apps
Reduces environmental
Environmental Biodegradable packaging,
impact & promotes
Innovation waterless dyeing tech
sustainability
Reinvents business models
Subscription services,
Business Innovation or structures for better
remote work platforms
results
 Purpose & Real-World
Examples of
Innovation
Purpose of Innovation Local Example International Example
GCash: Digital financial Venmo (USA): Mobile
Solve local problems
inclusion banking
Eco-bricks from plastic Tesla: Renewable energy +
Promote sustainability
waste EVs
Sari-sari store digital Shopify: Empowering small
Boost entrepreneurship
platforms businesses
Community-based Google Workspace: Real-
Enable collaboration
agriculture platforms time teamwork
 Why Innovation
Can Be Confusing
• Multiple Definitions • Overlap with Other
Innovation can mean different things to different Concepts
Often confused with:
people: Invention – creation of something new (but not
To engineers: new technology.
To entrepreneurs: new business ideas always useful yet)
Creativity – generation of ideas, not necessarily
To marketers: new ways to reach customers
applied
There’s no one-size-fits-all definition. Improvement – refining what already exists
Innovation is the application of creative ideas to
add real-world value.

• Innovation ≠ Just
Technology Key Insight:
Innovation includes:
“Innovation isn’t confusing because it’s unclear
Business models – it’s confusing because it’s everywhere.”
Social impact
Partnerships
Tech is just one tool, not the only form of innovation.
 Innovation in
Entrepreneurial
• Why Innovation is Core to Thinking • Innovative Mindset Traits
Entrepreneurship
Innovation can mean different things to different 🔍 Curiosity: Constantly exploring “what if?”
people:
💡 Creativity: Generating fresh ideas
Innovation allows them to:
Create unique value
⚙️Practicality: Turning ideas into action
Disrupt traditional markets
📉 Risk Tolerance: Comfortable with failure and
Adapt quickly to changing needs iteration
🧠 Growth Mindset: Learning from mistakes and
It's not just about having an idea — it's about making improving
that idea work in the real world

• Innovation + Entrepreneurial Examples :

Impactentrepreneurs to:
Empowers Local:

Solve local problems with global potential TomoChain (Vietnam) – Using blockchain for
microfinance
Agritech startups using drones to support small
Build sustainable business models
farmers
Global:
Create products that align with SDGs like:
• SDG 9 (Industry & Innovation) Airbnb – Reimagined hospitality
• SDG 8 (Decent Work & Economic Growth) Zoom – Reshaped remote collaboration
• SDG 17 (Partnerships)
 Benefits of Innovative
Products & Services
• Competitive Advantage • Positive Social & Environmental
Differentiates your brand in the market Impact
Aligns with global goals (SDGs)
Attracts attention from investors, customers, and Builds a responsible and future-focused brand
partners
Example: Example:
Dyson vacuum cleaners – innovative design & Patagonia – eco-innovations in apparel
performance manufacturing
• Adaptability & Sustainability
• Improved Customer Experience Keeps businesses relevant in fast-changing
Solves pain points more effectively markets
Encourages continuous improvement and long-term
Offers new value and convenience growth
Example:
Example:
Netflix – evolved from DVDs to global streaming
GCash – revolutionized mobile payments and
financial inclusion

• Increased Revenue Potential Why This Matters

Taps into new customer segments “Innovation isn't just about being new — it's
Enables premium pricing for innovative value about being better for people, business, and
Example: the planet.”
Apple – innovation-led pricing strategy
 Types of Innovation &
Their Processes
• Types of Innovation

Type Definition Example

New or improved iPhone, Smart electric
Product Innovation
goods/services scooters
More efficient production or Amazon's automated
Process Innovation
delivery methods warehouses
New way to create, deliver, Tesla: Renewable energy +
Business Model Innovation
or capture value EVs
New internal methods or Shopify: Empowering small
Organizational Innovation
workflows businesses
Novel ways of promoting, Google Workspace: Real-
Marketing Innovation
pricing, or placing products time teamwork
Creative solutions to social Khan Academy,
Social Innovation
challenges microfinancing
 Types of Innovation &
Their Processes
• The Innovation Process

Idea Generation
• Brainstorming
• Trend analysis
• Identifying problems Linked SDGs
SDG SDG 9 – Industry, Innovation and
Concept Development Infrastructure
• Research
• Feasibility studies - Encourages innovation to boost sustainable
• Planning industry, competitiveness, and technological
advancement.
Prototyping & Testing SDG 17 - Partnerships for the Goals
• Building early models
- Encourages global cooperation and sharing of
• Collecting feedback,
• Refining innovation for development

Implementation
• Launching the product/service into the market

Scaling & Iteration 📈

• Building early models
• Collecting feedback,
• Refining
 Pros & Cons of
Innovative Products

• Pro
Market Differentiation & Competitive Edge
• Stand out in the market, attract early adopters
Example::
• Local Example: Banig Laptop Sleeves – combines tradition
with function
• International Example: Apple MacBook – sleek design +
advanced tech Social & Environmental Impact
Solves Real-World Problems • Can promote sustainability and inclusivity
• Addresses specific pain points or inefficiencies Example::
• Local Example: Solar Night Lamps by Liter of Light
Example::
• International Example: Patagonia’s recycled materials in
• Local Example: GCash – provides digital finance access for
clothing
the unbanked
• International Example: Venmo– similar mobile banking
innovation
Potential for Global Reach & Export
• Unique products can attract international markets
Example::
• Local Example: Bambike – sustainable bamboo bicycles
used in eco-tours
• International Example: Tesla – electric vehicles leading the
clean energy movement
 Pros & Cons of
Innovative Products

• Cons
High Development Costs
• R&D, design, and prototyping are expensive
Example::
• Local Example: Example: Local tech startups often struggle
with limited funding
• International Example: Google Glasses failed despite
massive investment Risk of Failure
Adoption Challenges • Not all innovations succeed in the market
• Consumers may resist change or lack Example::
access/education • Local Example: Innovative e-trikes faced operational issues
Example::
• Local Example: Some farmers resist new agri-tech due to and poor policy support
• International Example: Amazon Fire Phone – a tech flop
tradition
• International Example: Microsoft Zune couldn’t gain user despite brand backing
interest over iPods
Fast Obsolescence
• Innovations can quickly become outdated
Example::
• Local Example: Early SMS-based services replaced by
mobile app
• International Example: Blackberry lost its edge to
smartphones
 Challenges &
Opportunities of
Innovation in
• Opportunities
Business
• Market Leadership • New Revenue Streams
- Innovative businesses often become trendsetters - Opens fresh products, services, and markets
and industry leaders

• Customer Loyalty & • Sustainability & Social Impact

- Engagement
Solving real problems leads to higher customer - Eco-friendly or inclusive innovations attract
satisfaction and retention purpose-driven consumers

• Stronger Partnerships &

- Ecosystems
Innovation invites collaboration with startups and
government.
 Challenges &
Opportunities of
Innovation in
• Challenges
Business
• High Risk & Uncertainty • Lack of Resources
- Not all innovative ideas succeed in the market - Many businesses, especially SMEs, struggle with
- Businesses must invest time and money without funding, R&D, or skilled talent
guaranteed returns

• Resistance to Change • Fast-changing Technology

- Employees, customers, or stakeholders may be - Innovation must keep pace with rapid
hesitant to adopt new systems or products advancements in tech
- Innovation can disrupt existing workflows - Risk of products becoming outdated quickly

• Legal & Regulatory Barriers

- New ideas may not fit within existing regulations