Theme 1

The Concept of Innovation and

Innovation Management

Managing Innovation 2016

A few worlds about the course

An extensive library of additional case material to deepen your understanding of innovation and entrepreneurship

A wealth of multimedia resources to bring the real world into the classroom

A set of practical, interactive tools to aid the implementation of innovation and entrepreneurship

Outline1. Innovation – what it is and why does it

matters

2. Models of innovation

3. Innovation as a management process

Innovation – what is and why does it matters

new different from old stuff, old stuff used differently, replaces old stuff creative destruction

stuff actual thing, service, technique, idea, business model

that adds value more user-friendly, more performance, cheaper, simpler, knowledge, increase capabilities

to all stakeholders shareholders, customers, employees, partners, community, environment

can be monetized profitable, high margin, scalable

is sustainable profit, people, planet, if you don't, the competition will

creates a competitive advantage market potential, blue ocean

until the advantage erodes pipeline substitution & alternatives erosion of advantage

 

Innovation – what is and why does it matters

Innovation is… “the process of turning opportunity into new

ideas and of putting these into widely used practice” (Tidd & Bessant, 2009)

“the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product[service]” (Trott, 2008)

“not just the conception of a new idea, nor the invention of a new device, nor the development of a new market. The process is all these things acting in an integrated fashion” (Myers & Marquis, 1969)

THINK Is an unsuccessful new product an

innovation?

Is the successful introduction of an old product in a new market an innovation?

Does all innovation involve new technology?

Xerox created the first computer with a Graphic User Interface. Steve Jobs used it to create the first Mac. Who was the innovator?

Innovation – what is and why does it matters

Invention: The creation of novel services, products and production techniques.

Innovation: The practical refinement and development of an original invention into a usable technique or product;’ or, a process in which creativity is applied to every facet of an organization’s value chain, from beginning to end, to develop new and better ways of creating value for customers.

Innovation – what is and why does it matters

Innovative companies are more…

…Adaptable• Flexible strategy, structure, culture

…Competitive• Better processes, services, business models

Innovation – what is and why does it matters

Innovation – what is and why does it matters

Nikolai Kondratieff / Joseph Schumpeter • “virtually all of the economic growth that has

occurred since the eighteenth century is ultimately attributable to innovation”

• Schumpeter’s “Creative Destruction”

Types of Innovation

Incremental What we already

do, but better

Sustaining Rules of the game

remain the same

Radical New to the world

Disruptive Game Changer for

Market or Industry

Technoology

Market Status Quo

Types of Innovation

Incremental Innovation: An innovation in which a new version of an existing product is created, by improving or altering some of its existing attributes. Example: a corporate jet, say, Gulfstream IV. A reconfigured improved Gulfstream V may have better range, speed, payloadand cabin room.

Standard Innovation: One additional attribute is added to the product that did not exist before. Example: the addition of a CD-ROM read-only drive to PCs.

Radical Innovation: Several significant new attributes are created which did not before exist, thus creating, essentially, a new product. Example: a handheld computer (e.g., Palm Pilot).

Types of Innovation

Product / Service Innovation Innovate in WHAT we do

Process Innovation Innovate in HOW we do it

Paradigm / Business Model Innovation Innovate in HOW we make money

Position Innovation Innovate in marketing mix and strategy

WHERE, WHO, HOW MUCH

Types of Innovation

Product Innovation - new products or improvements on products. The new Mini or the updated VX Beetle, new models of mobile phones and so on.

Process Innovation - where some part of the process is improved to bring benefit. Just in Time is a good example.

Paradigm Innovation - where major shifts in thinking cause change. During the time of the expensive mainframe, Bill Gates and others aimed to provide a home computer for everyone.

Positioning Innovation - Lucozade used to be a medicinal drink but the was repositioned as a sports drink.

Types of Innovation

Models of innovation

Linear Models 1950/60s – Technology Push

Manufacturing MarketingResearch &Development

1970s – Market Pull

Marketing ManufacturingResearch &Development

Models of innovation

1980s

Simultaneous Coupling Model

Marketing

Manufacturing

Research &Development

Models of innovation

Interactive Model

Models of innovation

Models of innovation

The chronological development of models of innovation

Innovation as a management process

Innovation management:

The process of creating and implementing a business design surrounding a creative idea, with the goal of transforming an invention into an innovation, and ultimately to achieving sustained competitive advantage, leading to growth and profit, in the marketplace.

Innovation as a management process

Core abilities in managing innovation

Innovation process model

THANK YOU FOR YOUR ATTENTION