2016 - 1. The concept of Innovation and Innovation Management. The type of innovations.pot

1. Theme 1
The Concept of Innovation
and Innovation Management
Managing Innovation 2016

2. A few worlds about the course

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

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

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

6. Outline
1. Innovation – what it is and why does it
matters
2. Models of innovation
3. Innovation as a management process

7. 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

8. 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)

9. 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?

10. 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.

11. Innovation – what is and why does it matters
 Innovative companies are more…
 …Adaptable
• Flexible strategy, structure, culture
 …Competitive
• Better processes, services,
business models

12. Innovation – what is and why does it matters

13. 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”

14. 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

15. 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).

16. 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

17. 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.

18. Types of Innovation

19. Models of innovation
Linear Models
1950/60s – Technology Push
Manufacturing Marketing
Research &
Development
1970s – Market Pull
Marketing Manufacturing
Research &
Development

20. Models of innovation
1980s
Simultaneous Coupling Model
Marketing
Manufacturing
Research &
Development

21. Models of innovation
Interactive Model

22. Models of innovation

23. Models of innovation
The chronological development of models of innovation

24. 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.

25. Innovation as a management process

26. Core abilities in managing innovation

27. Innovation process model