2016 - 1. the concept of innovation and innovation management. the type of innovations.pot
TRANSCRIPT
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