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MANAGEMENT of

The Key to Competitiveness and Wealth Creation

TECHNOLOGY

Tarek Khalil | Ravi Shankar

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The Process ofTechnologicalInnovation

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JUGAAD: A NEW TERM FOR CONSTRAINT-BASED

INNOVATION• What is common in these terms: Jugaad, constraint-

based-innovation, frugal-innovation, inclusive-innovation, reverse-innovation, and Gandhian-innovation? All these have same connotation in the area of Innovation Management

• They mean innovation that relies mainly on ingenuity in product, process and people to solve a business problem or product redesign by creative improvisation rather than too much of sophisticated scientific and technological breakthroughs

• Jugaad, in local Indian language–Hindi, means innovation by which technological products/processes or systems are customised at low prices and high volumes

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JUGAAD: A NEW TERM FOR CONSTRAINT-BASED INNOVATION

(Contd.)• The aim of Jugaad is to serve million of customers at the

'bottom of the pyramid' by making their lives better

• Bajaj, a major auto manufacturer in India, probably for the first time in world, came out with a commercially successful design of three-wheeler for Indian roads and traffic conditions

• India is credited for numerous local innovations of Jugaad-type.

• On Indian roads, one can always see scooter or motorcycle engines used to drive a big cart. Similarly, one can find scooter engines being used to pump-out water for irrigation purposes in an Indian village, where electric supply is quite erratic

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JUGAAD: A NEW TERM FOR CONSTRAINT-BASED INNOVATION

(Contd.)• Why is Jugaad-type of innovation very common in

India?

• According to Gopalkrishnan (2010), it is due to a lethal combination of five Cs available in our society, namely chaos, challenge, creativity, communication and canalization

• However, for Jugaad to kick-off, it requires creativity with some kind of technological diversity in local talents

• A few questions for discussion are as follows:– Can Jugaad be a part of formal strategy for innovation?

– Is Jugaad a fit case for patent and protection?

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STAGES OF TECHNOLOGICAL INNOVATION

The Eight Stages of Technological Innovation

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PROCESS OF TECHNOLOGICAL INNOVATION

The Process of Technological Innovation

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INNOVATION CHAIN EQUATION

The Innovation Chain Equation

• Using a chemical analogy, Martin (1994) illustrates the technological innovation process as a chain equation

• A commercially successful innovation is the product of a sustained chain reaction

• The innovation chain equation reveals the important role of entrepreneurship in connecting ideas to the marketplace

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DEFINITIONS FOR COMPONENTS OF THE PROCESS OF TECHNOLOGICAL

INNOVATION

• Science: How things are

• Technology: How to do things

• Management: How to get things done

• Technology management: Doing things

• Entrepreneurship: Doing things to make

money

• Innovation: Doing entrepreneurship

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ENTREPRENEURSHIP• Technological progress is frequently sparked by

entrepreneurs and entrepreneurial spirit• Successful entrepreneurs with business savvy have a staying

power unlike those who are only creative and thrive on chaos• Once an entrepreneur, always an entrepreneur• Entrepreneurs play a key role in creating and advancing

technology and in sparking economic growth and job creation• Entrepreneurship, however, is not limited to individuals or

small companies• Entrepreneurship within the confines of an organization is

frequently referred to as intrapreneurship (internal entrepreneurship )

• External entrepreneurship is the individual entrepreneurial process of combining resources discovered in the environment with the entrepreneur’s very unique resources to create a new combination that is basically independent of all other resource combinations

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ENTREPRENEURIAL VERSUS STEWARDSHIP MANAGEMENT

Personal Characteristics of ManagersSource: Paradi (1994)

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THE MANAGEMENT RENEWAL CYCLE

Management Renewal Cycle

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VENTURES IN LARGE ORGANIZATIONS

• One approach used by large organizations in order to implement a new venture or move a project forward is to create an effective management team known as the venture team

• A venture team requires strong leadership, excellent technical skills, and wide representation of functions, including manufacturing, marketing, finance, and production

• The team leader becomes the product/process champion and assumes leadership over technical matters

• Physically locating the team away from the company’s main operations is a common practice

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TECHNOLOGICAL INNOVATION –THE MACRO LEVEL

• The British Midlands– Entrepreneurs mostly drive innovations with support from

skilled technologists

– The Industrial Revolution was forged by people who moved to the British Midlands primarily to escape religious persecution

– Non-conformist Quakers in the eighteenth century made significant contributions; for example, Darby founded the steel industry, and Ransome invented the self-sharpening ploughshare and introduced the idea of interchangeable parts in its manufacture in the early 1800s

– The Lunar Society members exchanged ideas, supported each other’s activities, and shared information across disciplines and industry boundaries

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TECHNOLOGICAL INNOVATION –THE MACRO LEVEL (Contd.)

• Silicon Valley in

U.S.

Chronology of the Important Inventions, Events, and People in The Microelectronics High Technology Industry

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TECHNOLOGICAL INNOVATION –THE MACRO LEVEL (Contd.)

• The Home Brew Computer Club– An informal group that met regularly at Stanford and

exchanged ideas in an open forum– The interaction of this group paralleled the interaction of

the Lunar Society in the eighteenth century– This antiestablishment mindset was another fuelling factor

for entrepreneurial fever and is reminiscent of the era of the rebellious Quakers of the British Midlands

– Steve Jobs and Steve Wozniak of Apple Computer benefited from the meetings of the Home Brew Computer Club

– By 1983, there were 85 semiconductor firms and more than 3,000 firms in microelectronics in Silicon Valley (Larsen and Rogers, 1984)

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FACTORS INFLUENCING TECHNOLOGICAL INNOVATION

• The presence of scientific knowledge

• The level of maturity of the underlying science

• The type of technology and the phase of its life

cycle

• The level of investment in technology

• The level of political commitment

• The ability to borrow advances from related technologies

• The diffusion rate and patterns

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OTHER FACTORS INFLUENCING TECHNOLOGICAL INNOVATION

• The changing world environment• Improvements in communication• Multiple-site continuous R&D• Time to market• The push for education• Changes in institutional interactions

– Country and country– Industry and industry– Government and industry– Industry and/or university and scientific agency

• Changes in organizational structures• Infusion of resources into technological development

and penetration

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WEBLINKS• http://www.livemint.com/2010/01/03211645/The-creative-age-

is-coming.html

• http://www.globalinnovationindex.org/gii/GII%20COMPLETE_PRINTWEB.pdf

• http://www.vijaygovindarajan.com/2009/10/what_is_reverse_innovation.htm

• http://www.ril.com/html/aboutus/founder.html

• http://www.nsf.gov/bordogna