Innovation Managment

Francesca Cabiddu

March 16 2015

Innovation what it is

and why it matters

Outline

Innovation and creativity

Models and modes of innovation

Dimensions of innovation space

Degree of novelty

Discontinuous innovation and creative destruction

Innovation = Creativity

Creativity? Invention? Innovation?

1. Creativity: It is the capabilities or act of conceiving something original or unusual

2. Invention: It is the creation of something that has never been made before and is recognized as the product of some unique insight

3. Innovation: It is the implementation of something new

Innovation and creativity

Innovation begins with creative ideas,

creativity by individuals and teams is a starting point for innovation; the first is a necessary but not sufficient condition for the second

Models and Modes of Innovation

Dimension of innovation space

Four Dimensions of Innovation Space

Product innovation

Innovate in WHAT we do

Process innovation

Innovate in HOW we do it

Position innovation

Innovate in marketing mix and strategy

WHERE; WHO; HOW MUCH

Paradigm innovation/or Business Model

Innovate in HOW we make money

Product innovation

product – changes in the things (products/services) which an organization offers

Process innovation

Process -changes in the ways in which product and service are created and delivered

Product innovations

• product used by consumers

Microwaves, computers, mobile phones, etc

• Products used by firms

Shipping containers, computers, robots, etc

Process innovations

• Used by consumers

Fast food, air travel

• Used by firms

Assembly lines, software

Position innovation

position – changes in the context in which the products/services are introduced

Haagen Dazs ice cream

Paradigm innovation

paradigm – changes in the underlying mental & business models which frame what the organization does

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The Ford Model T

© 2013 John Wiley & Sons Ltd. www.innovation-portal.info

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DEGREE OF NOVELTY

What are the degree of novelty?

?

Degree of novelty

Incremental

• Is evolutionary and linear

• Most innovations are incremental

• Builds on existing knowledge bases and provides small improvements in current product lines/processes

Radical

Is revolutionary and not linear

are comparatively rare (at the most about 10 per cent of innovations are radical)

is often associated with the introduction of a new technology

DEGREES OF NOVELTY

Incremental:

What we already do but better

Radical

New to the world

Discontinous innovation

What happens when the game change

?

Creative destruction

Where there is a costant search to create somethingh new whichsimultaneously destroys the old rulesand established new ones

Change of this kind can come from

the emergence of a new technology

Changing the dominant business model

Ice industry

1880s today