marketing & innovation - introduction

Marketing, IT & Innovation

Marcos LIMA, PhD

Session 01: Introduction to Innovation

Management

Welcome to Marketing, IT & Innovation

The Spirit of Innovation

This Week’s Topics (1/2)

Part 1: Course Introduction

Lecturer Background and Research Interests

Expectations

Scope of the Course

Course Methodology / Sources / Evaluation

This Week’s Topics (2/2)

Part 2: Introduction to Innovation Management

What is Innovation and Why it Matters

Innovation as an Integrated Business Process

The Innovative Organization: Understanding Knowledge Management

Marketing, IT and Innovation

How are these fields related?

Marketing/Service

Development

TourismIndustry

Innovation

IT

Knowledge Management

Customer Relationship Management

Scope of This Course

Session 1(March 4th) INTRODUCTION to Innovation Management

Sessions 3 & 5 (Mar. 11 / 18th) The Innovative Organization

and Knowledge Management Culture Session 7 (Mar. 25th)

SEARCHING the Organizational Environment, Selecting the Strategy, and implementing the Process

Session 9 (April 8th) Mid-Term Quiz + Discussion

SearchENVIRONMENT

SelectSTRATEGY

ImplementPROCESS

Capture-ValueCULTURE

Part 1

Course Introduction

Lecturer Background& Research Interests

As a business executive / consultant

1995 97 99 01 03 05 07 09

MarketingInnovation + Product / Service Development Knowledge Management

Lecturer Background& Research Interests

As a student, teacher / researcher

1995 97 99 01 03 05 07 09

MarketingInnovation + Product / Service Development Knowledge Management

Bac +5

Bac +7

Bac +10

My Expectations

DREAM: buy the textbook and read the chapters NICE:surf the internet for related topics MUST: read the articles MUST: listen to the podcasts

You should also be… PARTICIPATIVE ASSIDUOUS & ON TIME CURIOUS

Your first group assignment:Discuss Your Expectations

A good course…

should be…

should have…

should NOT be…

should NOT have…

SHOULD…

SHOULD NOT…

Course Methodology

Basic Pedagogical Principle:Meaningful Learning

INTERACTION

REFLECTIONCOLLABORATION

Authentic ProblemEnvironment

Course Methodology

Two Parts

TO: Theory-Oriented• Instructor-centered learning• Preparation: read the textbook chapters and

article assigned the week before

PO: Practice-Oriented• Student-centered learning• Article Discussions:

Shared Synthesis

Evaluation

MCQ/Essay Evaluation 35% Individual quiz on Innovation, April 8th

Case Study 65% Group work on CRM, April 8th & 25th

Main Sources

Books Tidd & Bessant, “Managing Innovation: Integrating

Technological, Market & Organizational Change”, Wiley 2009 Trott, “Innovation Management & New Product Development”,

Prentice Hall, 2008 See syllabus for other sources

Articles Several sources

To complement your learning…

Selected Podcasts and bookchapters on classtopics

Theoretical LecturesPodcasts (Voluntary

presentation Class +1)Textbook***

Sources

Course Overview & Introduction

Disruptiv e Innov ation TIDD Ch 01, 02, 03TROTT Ch 01

MANAGING the Innovative Organization

Building Innov ation Radar TIDD Ch 12 / TROTT Ch 03, 06

MANAGING the Innovative Organization

Fiv e Traits of Innov ativ e Companies TIDD Ch 12 / TROTT Ch 03, 06

SEARCHING the organizational ENVIRONMENT

Innov ation at Procter & Gamble TIDD Ch 05 / 06SMITH Ch 05

SELECTING the Innovation STRATEGY

From Me-Too to New to the World TIDD Ch 07 / 08TROTT Ch 11

IMPLEMENTING the Innovation PROCESS

Transformativ e Innov ation TIDD Ch 09 / 10SMITH Ch 6

Strategic Marketing & Innovation

n/aTROTT Ch 12, 14; KOTLER Ch 02,12,13

Questions?

Part 2

Overview of the Innovation Process

Preliminary Quotes

Niccolo MACHIAVELLI “There is nothing more difficult to take

in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things”

The Prince, 1532

Preliminary Quotes

???? “Constant revolutionizing of

production, uninterrupted disturbance of all social conditions, everlasting uncertainty… all old established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries … whose products are consumed not only at home but in every quarter of the globe”.

KARL MARX Communist Manifesto, 1848

What is Innovation?

Let’s brainstorm!

What is Innovation?

Video Interview: Strategyn

What is Innovation?

Which of these is NOT an innovation? Why?

a) Nintendo Wii b) Banana Peeler c) Apple’s iPhone d) Self-Service

What is Innovation?

Is this an Innovation or an Invention?

A Few Definitions

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)

A Few Questions

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?

A Visual Definition

These two variables explain the critical

role of MARKETING in the innovation process

Recommended Reading

DRUCKER, The Discipline of Innovation

Why Innovation Matters

Innovative companies are more… …Adaptable

• Flexible strategy, structure, culture

…Competitive• Better processes, services,

business models BusinessWeek’s Most Innovative Companeis (2006)

Innovative in Different Ways

BusinessWeek’s Most Innovative Companeis (2006)

Innovative Chief

Executive Scientificfreedom ofemployees

Use of external tech

sources

Design

Speed of product

development

Close cooperation w/ suppliers

Innovation’s Economic Relevance

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”

Innovate or die Out of the 1957 Forbes 500, only 74 remained in 1997 Of the top 12 companies which made up the Dow Jones

index in 1900 only one (GE) survives

Change is the only constant… From toilet paper in 1800s to…

From steel tubes in 1870s to…

From mining in old Prussia to…

Creative Destruction in Action

Why Innovation Matters

Video Lecture – Why Innovation is So Necessary

Types of Innovation

Incremental What we already do,

but better

Radical New to the world

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 IndustryTrue or false?

a) Radical innovation is more strategic than incremental innovation

b) Not all radical innovations are disruptive

c) All disruptive innovations increase the innovator’s competitiveness

d) Incremental innovations cannot be disruptive

e) Sustaining innovations cannot be radical

Market Status Quo

Technology

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

Tidd’s 4Ps Can you find

at leastone exampleof each typeof innovation?

Degrees of Innovation: Products

SustainingSustaining Disruptive Disruptive

Doing what we do, Doing what we do, but better/differentbut better/different

New to the worldNew to the world

Rules of the gameremain the same

Game Changer forMarket or Industry

IncrementalIncremental

RadicalRadical

New to the FirmNew to the Firm

Degrees of Innovation: Services

SustainingSustaining Disruptive Disruptive

Doing what we do, Doing what we do, but better/differentbut better/different

New to the worldNew to the world

Rules of the gameremain the same

Game Changer forMarket or Industry

IncrementalIncremental

RadicalRadical

New to the FirmNew to the Firm

Evolution of Innovation Models

Linear Models

Manufacturing MarketingResearch &

Development

Marketing ManufacturingResearch &

Development

1950/60s – Technology Push1950/60s – Technology Push

1970s – Market Pull1970s – Market Pull

Evolution of Innovation Models

A Case for Market-Pull

Evolution of Innovation Models

Simultaneous Coupling Model

Marketing

Manufacturing

Research &Development

1980s1980s

Needs in society

and the marketplace

Latest in science & technology

Advances in society

Evolution of Innovation Models

Interactive Model

R&D Manufacturing MarketingIdeaCommercial

Product

MarketPull

TechnologyPush1990s

Evolution of Innovation Models

Open Innovation Model Emphasis on Business Model innovation as driver

2000s2000s

Innovation as an Integrated Process

Source: Tidd & Bessant, 2009

Innovation as an Integrated Process

Source: Tidd & Bessant, 2009

Innovation as an Integrated Process

Source: Tidd & Bessant, 2009

Innovation as an Integrated Process

Video: Tidd & Bessant on The Innovation Process

Innovation as an Integrated Process

ImplementPROCESS Value-Capture

CULTURE

Search int./ext.ENVIRONMENT

Select STRATEGY

Recommended Reading

TIDD, 2009 Chapters 1,2,3

TROTT, 2008 Chapter 1

Articles Drucker

Good Luck!

Marcos Limamarcos.cerqueira_lima@devinci.fr