Assignemt Innovation & Entrepreneurship

moosha

session__sat_8th_sept_2012.pptx

Home >Reading homework help >Assignemt Innovation & Entrepreneurship

Module Teaching Objectives

To introduce students to the concept of innovation

To explain why it is important for all types of firm or organisation and country economies

To learn how to innovate and the role of ‘entrepreneurial management’ in this context

BS2402 Innovation & Entrepreneurship

Module Learning Outcomes

Understand what is meant by innovation

Understand what is meant by entrepreneurship

Assess why innovation and entrepreneurial management are important for wealth and value creation

Evaluate the potential importance of innovation and entrepreneurial management in your own organisation by using what you have learnt

BS2402 Innovation & Entrepreneurship

Module Structure Overview

Date	Content	Manual ref	Assignment link
Wed 5th Sept	Introduction to Innovation & defining Assignment Brief. Entrepreneurship. Importance of innovation	Unit s 1,2,3	Define innovation & types. Recent innovations in org’n Understand assignment. Define entrepreneurship/ entrepreneurial management.
Sat 8th Sept	Entrepreneurial/ innovation mgt process Context for Innovation. Factors supporting/ hindering. Managing the process Overcoming barriers	Units 4,5,6	Behaviours that impede or facilitate entrepreneurial management . Critical factors/barriers? Making the innovation happen

BS2402 Innovation & Entrepreneurship

Today’s Agenda

9.00 Mktg feedback form

9.10 Recap

9.30 Assignment detail

10.00 Context - external

10.20 BREAK

10.30 Context – internal

Management style & orientation

12.40 LUNCH

13.40 Innovation Process

13.55 Ideas Generation

15.00 BREAK

15.10 Remainder of Innovation Process

15.40/16.00 Assignment Q&A

16.00/16.30 END

(mini breaks as required)

BS2402 Innovation & Entrepreneurship

Take chocolates and grapes + a big bottle of water (take cups from staff room)

What is the difference

between invention & innovation?

BS2402 Innovation & Entrepreneurship

INNOVATION: A Definition (E. Roberts)

Successful Exploitation and Implementation

INNOVATION

Good Idea

Invention

Innovation as Source of Competitive Advantage for Economic Renewal

BS2402 Innovation & Entrepreneurship

What is the difference between creativity & innovation

Innovation as a process with many different inputs to achieve an innovative output

(Joseph Shumpeter, 1934)

Five Categories of Innovation

‘Totally new or significantly improved good’ - Product Innovation (DVD, Walkman, iPod, PC, car)

2. ‘New method of production’ - New Process (Synthetic Insulin; float glass; iPod; Zara http://www.msnbc.msn.com/id/5457434/site/newsweek/

3. ‘Opening New Market’ - Applying a product or process to a new application (Plastic Jug Kettle; Sushi bars; Benihana)

4. New source/ supply of raw materials (Synthetic Slate, Silicone)

5. New form of organisation (Direct Line, Amazon)

BS2402 Innovation & Entrepreneurship

Schumpeter – will see alot in your manual – talks of five main categories that cross-over with the types looked at. They are distinct ways that innovation causes change in the market.

Walkman – “platform innovation’ Tidd & Beasant p28 portable music – foundation that deploys minidisk / cd/ mp3

Entrepreneurship

How did we define it?

BS2402 Innovation & Entrepreneurship

Mindset – willingness to take opportunities

Risk-taking : Different attitude to risk-taking: Heuristics (trial and error) with fast feedback loop rather than highly planned.

Tolerance of failure as a source of learning.

Process – with Innovation as an outcome. Ie: ‘creating something new’.

A Useful Definition of Entrepreneurship

‘entrepreneurship is the manifest ability and willingness of individuals, on their own, in teams, within and outside existing organisations, to perceive and create new economic opportunities (new products, new production methods, new organisational schemes and new product market combinations) and to introduce their ideas in the market, in the face of uncertainty and other obstacles, by making decisions on location, form and the use of resources and institutions’

(Wennekers and Thurik, 1999):

BS2402 Innovation & Entrepreneurship

Qn: How did we define entrepreneurship?

Key points:

WILLINGNESS – ie: mindset

NEW (economic or value creation) opportunities. ie:innovation

Ability to cope with UNCERTAINTY – ie: handling and managing risk.

Decisions on resources

Entrepreneurship (according to Wilson, 2005):

Is a process of social change

In which particular individuals (entrepreneurs) undertake specific projects

Which lead to new or transformed firms and markets

With innovation as an outcome

BS2402 Innovation & Entrepreneurship

Another useful definition .

Draws out:

PROCESS

INNOVATION as outcome. – ie: entrepreneurship is all about the process of innovating.

Fitting the entrepreneurial management process onto innovation using Robert’s innovation model

Successful Exploitation and Implementation

INNOVATION

Good Idea

Invention

INPUTS

Group member

Knowledge, skills, effort

Entrepreneurial/ Innovation Management Process

OUTPUTS

adding or creating value

BS2402 Innovation & Entrepreneurship

A pattern of management behaviour that produces innovation (individual, group or firm level)

Perceives and Identifies innovative opportunities

Takes ‘Risk’ in pursuing this opportunity (link to self-confidence)

Finds and Gathers scarce resources into appropriate combinations to produce an organisation to deliver that innovation(s)

Continually ‘reaches’ for the necessary resources to solve problems and foster firm growth (Baumol)

Entrepreneurial Management

Decision-making based on bias and heuristics; networking; opportunism

BS2402 Innovation & Entrepreneurship

GOT TO HERE – NOW CHECK VERSUS MANUAL – BEST POINTS FOR SLIDES

Ie: recognises innovative opportunities and encourages pursuit of these. (Acutely tuned to spotting opportunities)

RISK: Not bigger risks , just a different approach to risk. Some say ‘overoptimistic’ (Cooper et al, 1988, p3.17), - perhaps it is a lower fear of failure – or just an unwillingness to let that stop you (what is the risk of not taking the opportunity?) . Others link it to the decision-making process

Appropriate combinations of resources – it is this dynamic resource building concept of changing patterns and combinations of resources to create something unique that makes entrepreneurial management exp different from traditional management.

Q? what do we mean by resources? – people, finance, ‘stuff’.

Q: Heuristics = process of discovering & learning by doing/trial and error

Recognise opportunity

Find Resources

Develop Venture by picking and deploying resources

Create Value

Entrepreneurial

Goals and Innovation Context

Strategic Vision and direction

Learning

CG Adapted Innovation and E’ship Management Model: Bessant and Tidd 2nd Ed 2011

BS2402 Innovation & Entrepreneurship

Round edges = aspects affecting entrepreneurial management capability. Through centre = innovation management process.

Key outcome of management approach is that you can define a process and approach that you can understand, practice and make happen. So develop your organisation’s ability to act entrepreneurially, and innovate successfully.

Here = suggests it is a process for one idea. In your assignments final task = take one idea through this process. How can you make it happen?

BUT: For your organisation (= rest of assignment) you need to be able to do this many, many times, at once and learning for each one.

Your assignment asks you to consider both the one individual example (your idea) and the overall organisation ability to foster & support successful innovation.

Recognising opportunities : need to have ways to identify changes that give rise to opportunities and encourage ideas to be shared and built upon.

Finding Resources:

Assess benefits versus risks & costs. How do you balance these in order to decide which ideas to pursue?

Need to build the Case: Often Business Plans required to access resources. How do ideas fit with organisation’s strategy?

Resources won’t all come at once – may a little released for a concept assessment; a little released for a pilot etc..... Until proven.

Develop Venture:

This is turning the idea into reality. Project Managing the process – with all the risk management and controls that that involves. How do you do this safely? Here pilots or prototypes are often used.

Create Value:

Even once new product is launched or process implemented you might not be getting value from it. How do you ensure you capture that value? E.g. The management ‘team meeting’ idea that was launched internally then not followed through to gain the value. Esp true of internal process changes. Need scale-up and persistence to make new habits stick. OR In pharma, new product needs to be protected with patents, else it would get copied before the research investment has been recovered.

Also – here reflect to learn what worked , and didn’t, so can improve future capabilities at managing innovation.

A pattern of management behaviour that produces innovation (individual, group or firm level)

Perceives and Identifies innovative opportunities

Takes ‘Risk’ in pursuing this opportunity

Finds and Gathers scarce resources into appropriate combinations to produce an organisation to deliver that innovation(s)

Continually ‘reaches’ for the necessary resources to solve problems and foster firm growth (Baumol)

Management approach to Entrepreneurship

Decision-making based on bias and heuristics; networking; opportunism

BS2402 Innovation & Entrepreneurship

Ie: recognises innovative opportunities and encourages pursuit of these. (Acutely tuned to spotting opportunities)

Q: Heuristics = process of discovering & learning by doing/trial and error

Entrepreneurial Management (manual, unit 4 p 28)

Entrepreneurial management is becoming a way of distinguishing a dynamic innovation capability, where the organisation’s routines and processes are finely honed to achieve responsiveness (Teece et al , 1997).

BS2402 Innovation & Entrepreneurship

Assignment talks of Entrepreneurial Management Orientation = which is effectively this.

Entrepreneurial Management Style which on in G-TEC (after Stevenson & Gumpert , 1989)

‘PROMOTOR’ ‘TRUSTEE’

‘Entrepreneurial’ ‘Administrative’

Proactive Disinclined to change

Tolerant of uncertainty and ambiguity Guards resources

Able to make incremental changes in Interested in maintaining

response to environmental pressures the status quo

Q: What type of manager is your manger?

BS2402 Innovation & Entrepreneurship

NB: This is a continuum!!

Your type of manager? – will influence how easily you can implement an innovation.

They could be a champion or a barrier.

(Q – what is an intrapraneur? Internal entrepreneur – think difficulty of this. Can you think of people in your organisation? – My example ‘Vivek’ – brought in to foster innovation. Continual battling against the tide – “overoptimism/overselling” required to get people to buy into new ideas)

CHECK: All can place their manager somewhere along this continuum.

Types of Organisation (Burns and Stalker, 1961)

‘mechanistic reproducer’ ‘organic innovator’

Routines and competencies similar to existing organisations

Copied routines

Decisions base on ‘rational’ and ‘scientific’ principles

Formal planning and budgeting

Risk averse resource maximisers

Structured heirarchy

Competencies and routines significantly different to others

Decisions based on cognitive biases and heuristics

Incremental change to direction and resource allocation expected.

New resource combinations

Overconfidence and optimism

Resource leveragers; use rather than own

Flat organisation structure

Where does your organisation sit on this continuum?

BS2402 Innovation & Entrepreneurship

At Organisational level = Corporate Entrepreneurship.

Rational /scientific principles – assumes can analyse the environment fully and make strategic decisions based on this. Classic annual strategic review/budgeting process w little in between.

Planning – still needed in the innovative organisation, but may not be as formal as the mechanistic reproducer. “Formal planning is often the enemy of organisational adaption to innovation opportunities” (Stevenson & Gumpert, 1985)

Q = why would this be so?

Incremental strategy – assumes you can’t know all environmental impacts and hence maintain acute awareness of environment and flexibility to change as needed.

New resource combinations – eg: Direct line insurance (?); First direct;

Q: If you look at these why do you think small organisations have a tendancy to be more entrepreneurial than large organisations? (NOTE: resource constraints tend to be the main reason small organisations manage differently. They don’t have the resources so have to be imaginative and network to get resources & pursue opportunities.)

Q: Think public sector – what are the particular issues for the public sector? Get people’s responses (Beaurocratic; formal planning; risk-averse: NOTE – risks perceived as big eg: education, health)

Where your organisation sits on this continuum - will influence how easily you can implement an innovation.

It could support or be a barrier in particular areas.

Assignment Brief Detail

BS2402 Innovation & Entrepreneurship

Module Structure Overview

Date	Content	Manual ref	Assignment link
Wed 5th Sept	Introduction to Innovation & defining Assignment Brief. Entrepreneurship. Importance of innovation	Unit s 1,2,3	Define innovation & types. Recent innovations in org’n Understand assignment. Define entrepreneurship/ entrepreneurial management.
Sat 8th Sept	Entrepreneurial/ innovation mgt process Context for Innovation. Factors supporting/ hindering. Managing the process Overcoming barriers	Units 4,5,6	Behaviours that impede or facilitate entrepreneurial management . Critical factors/barriers? Making the innovation happen

BS2402 Innovation & Entrepreneurship

Assignment Brief Recap

Word limit 3,000 words

BS2402 Innovation & Entrepreneurship

Assignment – section 1

Critically analyse and evaluate the management / employee behaviour and its ability to support and foster and achieve innovation within the organisation (entrepreneurial management orientation) in which you work.

BS2402 Innovation & Entrepreneurship

It is more academic than last year

Could argue it’s broader in its scope than customer service – need to read – Tidd & beasant &

Key elements of section 1

Critically analyse & evaluate

Current innovation levels & management style

Organisation culture

Organisation structure

Team working

Human capital

Knowledge management

BS2402 Innovation & Entrepreneurship

This is too certain judgement call / sensitive

Marking Criteria – 30%

Demonstrate knowledge of the many factors that influence the ability of an organisation to produce innovation outcomes

Analysis must include entrepreneurial management orientation i.e. management style likely to facilitate innovation

Demonstration of an ability to apply these factors to your organisation, through analysis & evaluation of these factors that may encourage / discourage entrepreneurial management orientation & innovation within their work organisation & critically assess them

BS2402 Innovation & Entrepreneurship

Management/employee behaviour influencing innovation in your organisation

Factor (Assignment)	Factor (Manual &Tidd)
Current innovation levels	Your critical reflection
Management style	Leadership, vision (& promotor vs trustee, strategic management)
Organisation Culture	Involvement in innovation, creative climate, external/customer focus, communication, rewards
Structure	Appropriate structure (& mechanistic bureaucracy vs organic innovator)
Team working	Effective Team working
Human Capital	Key individuals, recruitment, training & development
Knowledge management	Learning organisation

BS2402 Innovation & Entrepreneurship

Critical reflection – judgement call – need to be able to explain clearly & precisely before pen is put to paper – know where you’re going early –

We’re learning strategy as administrator

Promotor –trustee (in manual 3.18 ) scale entrep – admin manager

Assignment – 40%

Identify the critical factors within the organisation/area which prevent better innovation supportive management (entrepreneurial management orientation) and innovation outcomes

Provide suggestions on how to overcome these barriers, based on evidence of appropriate reading in entrepreneurship & innovation management literatures, clearly indicating the level of difficulty likely to be encountered in accomplishing them

BS2402 Innovation & Entrepreneurship

Barriers

Have to get creative – plan to overcome lot of the ideas come from the situational analysis in section1

Assignment - 40% contd.

Then identify a specific potential innovation you would like to carry out within the organisation/area & identify specific changes in working practice that would help the implementation of the innovation with reference to the overall analysis

BS2402 Innovation & Entrepreneurship

Remaining 30 %

Overall depth & breadth of research & background reading – 20%

Clarity of presentation & report writing style, Harvard Business referencing

BS2402 Innovation & Entrepreneurship

Oppurtunity to pick up narks

Context for Innovation

Factors Affecting Innovation

BS2402 Innovation & Entrepreneurship

Context for Innovation - External Factors

External factors

Sector

Size

National systems of innovation

Lifecycle

BS2402 Innovation & Entrepreneurship

THINK ABOUT YOUR ORGANISATION -

Sector – SHARE p4.4

eg: Big,mature,capital intensive industries like Oil & Gas – R&D driven; process improvements.

Contrast with restuarants – where scope for all manor of customer-focussed innovations – service; (product= taste/quality); environment; whole experience; convenience.

FAT DUCK – anyone eaten there?? Heston Blumenthal – Product innovation combining new ideas & ingredients – Crab icecream; using smells and sounds to both change & enhance the experience.

Q: IT? – types of innovation – product, process, technology -driven.

Q: Public sector? – types? – service/process;

Q: Your sector?

TECHNOLOGICAL TRAJECTORIES – share p4.5. Country-specific.

Q: where is your organisation?

Q: public sector? 6th – “Gov’t policy driven”. Get group to complete??

Implications = path dependency (nb: can change, but radical/major disruptive)

Example: typewriter – QWERTY. Difficult to change even if better ways.

2. Size – how do you think size impacts innovation?

Oil and Gas companies

Generally large scale

R&D labs

Process innovation

BS2402 Innovation & Entrepreneurship

Haulage

Some small businesses

Customers as source

Process / service innovation

BS2402 Innovation & Entrepreneurship

IT hardware & software

Specialist or niche vs. large scale

Technology driven

Product and process innovation

BS2402 Innovation & Entrepreneurship

Large Firms

Considerable Resources - £ + people

Large R & D. Budgets / Capital

Economies of Scale

Dominant in innovation in mature industries

Market Power / Mass markets

Balance Risk from innovative projects with ‘cash cows’

BS2402 Innovation & Entrepreneurship

Small Firms:

Behavioural Advantage in flexibility and adaptability in early stages of market and industry development

Early stages of market development before standardisation - dominant design

Experimentation role

Less bureaucracy and inertia preventing change

BS2402 Innovation & Entrepreneurship

Context for Innovation – National systems

Natural resources (or lack of)

Market Pressures

Local demands

Competition

Clusters – eg: related and supporting organisations

Skilled labour/ competencies

eg: in production and research

Management style & corporate governance

Government policies & activities ?

Adapted from Porter: the competitive advantage of nations, 1990

BS2402 Innovation & Entrepreneurship

Resources – Japan & energy

P: 4.16 table. (Tidd, Bessant and Pavitt, 1997)

Management style:

Anglo-saxon vs Nippon-Rhineland.

Responsive , but short- termist vs long-term R&D, but slower exploitation or back-out

Q:What impact do you think Government policies have?

Private? Public?

- Will look at more, Tuesday.

Product innovation

Process innovation

Rate of Major Innovation

Fluid phase Transitional phase Specific phase

The Dynamics of Innovation (with Lifecycle)

(Abernathy-Utterback model in Utterback (1994) p.xvii

BS2402 Innovation & Entrepreneurship

Early participants in new industries experiment freely with new forms and materials

There is a sense of pioneering

This ‘flurry’ of radical product innovation eventually ends with the emergence of a dominant design

The marketplace forms expectations for a product in terms of features, form and capabilities

In the early days of a new product technology, processes used to produce the good are usually crude, inefficient etc.

But product and process innovation are interdependent…as the rate of product innovation decreases, it is common to observe a growing rate of process innovation (Utterback, p.83)

RADICAL DISRUPTION - > NEW PRODUCT TECNOLOGY/NEW TECHNOLOGY:

Video – DVD (minidisc etc..)

Walkman – iPod

Q: Relevance to service industries/public sector? THINK NEW TECHNOLOGY/LOW TECH.

(not sure) – leave them to think about.

Q: where is your organisation industry/sector in lifecycle? (Any radical disruptions?)

BREAK

BS2402 Innovation & Entrepreneurship

Do assignment brief here.

Context for Innovation

Internal Factors Affecting Innovation

BS2402 Innovation & Entrepreneurship

Class discussion re.Tidd & Beasant self assessment

How well do we manage innovation?

Leadership style – where on promotor to trustee scale?

Culture – ‘the way we do things around here?’

Cross functional activity

Key Personnel

Team work

BS2402 Innovation & Entrepreneurship

Refer to NESTA P4 LEADERSHIP MODELLING BEHAVIOURS & HOW NESTA CAN HELP WITH ASSIGNMENT

BESPOKE OR ONE SIZE FITS ALL?

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Innovative organisation ‘implies more’ than a structure – it is an integrated set of components that work together to create & reinforce an environment where innovation can flourish

Appropriate structure - not always loose / level of mechanistic an advantage

Shared

Shared Vision, leadership & will to innovate

Innovation about learning, change often risky & disruptive

Often organisations & individuals develop ways to maintain the status quo

Entrepreneurs challenge the accepted rules of the game

Core competencies v core rigidities

One of concerns in innovative organisations is finding ways to ensure individuals with good ideas can progress them – ‘intrareneurship’

BS2402 Innovation & Entrepreneurship

Mindset good at one thing – block another

I SOLVED A LOT OF ISSUES THROUGH MECHANISTIC PROCESS – INFRA STRUCTURE ALLOES FOR INCREMNTAL CHANGE

Role of ‘Top’ Management

Changing mindset & refocusing organisational energies requires articulation of a new vision

Need to demonstrate long term commitment & involvement

Need to prepared to take risk & utilise lessons from failiure

Leaders with focus who enable their people to focus

BS2402 Innovation & Entrepreneurship

‘Bottom up’ innovation

IBM turnaround partly due to bottom up team initiative – entry into e-business

Tidd & Beasant – outline development of the idea of the execution of leadership vision by management drones to argue that they may be ‘two constructs on a continuum, rather than two opposing characteristics’

BS2402 Innovation & Entrepreneurship

MIX OF TOP DOWN / BOTTOM UP

Appropriate organisation structure

“Organisations – rigid hierarchies top down, one way communication – unlikely to be supportive of smooth info flows & cross functional cooperation

Burns & Stalker – outlined characteristics of ‘organic’ & ‘mechanistic’ organisations

Innovation not confined to R & D depts. Innovation becoming corporate wide – cross functional

BS2402 Innovation & Entrepreneurship

PHOTOPCOPY P 108-9

smooth info flows & cross functional cooperation – recognised as important success factors in Innovation

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Very Useful folis – look at your own organisation for the assignment – shades of grey – but look characteristics – try to build up a picture so that you can describe this as succintly

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Discuss – decentralised forums

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Activity

How does organisational structure impact on innovation levels in your organisation?

In Groups of 3 (5mins – then share back & exchange ideas)

BS2402 Innovation & Entrepreneurship

Key Individuals

Champions – help overcome complexity & uncertainty involved in innovation

Roles:

Sources of critical technical knowledge -often inventor / team leader

Organisational sponsor / project team leader

Business innovator

Technological gatekeeper

BS2402 Innovation & Entrepreneurship

High involvement in innovation

Quality Miracle – Japanese ‘continuous improvement’ Involvement of a wide range of- personnel providing limited, incremetal innovations (kaizens)

XYZ systems – rewards

Needs organisational culture to support & encourage over the long term. Now recognised as a major source of competitive advantage (P117 Tidd & Beasant)

Secondary effect – more people involved in change the more receptive they become to it

BS2402 Innovation & Entrepreneurship

Photocopy p115-116

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Plot your org / dept / area on here – useful tool

Next slide – there’s a progression – can give you some strategic direction / help with objectives

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Effective Team Working

Research on high performing teams

Selection & investment in team building

Clearly defined tasks & objectives

Good balance of team roles & match to individual behavioural style

Team working critical determinant to success – can bridge boundaries, cross functional teams bring together different knowledge.

Provide a decentralised & agile operating structure

BS2402 Innovation & Entrepreneurship

High performing teams – not an accident

Myers Briggs

P124 vancom zuid limburg

Effective Team Working –Tidd & Beasant

A clear, common & elevating goal

Results-driven structure

Competent team members

Unified commitment

Colloborative climate

Standards of excellence

Principled leadership

Appropriate use of the team

Participation in decision making

Team spirit

Embracing appropriate change

BS2402 Innovation & Entrepreneurship

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Creative Climate

Reward systems – innovative organisations look to reward creative behaviour & to encourage its emergence. Linked to the idea of intrapreneurship - internal entrepreneurship. Concept of rewarding failiure, people learn from their mistakes and will get it right – look at Dyson philosophy

www.whatifinnovation.com

Matt Kingdon – 3 elements of Innovation energy: attitude, behaviours & structures

http://vimeo.com/15118963

http://www.youtube.com/watch?v=0ZgajaPkwyE

BS2402 Innovation & Entrepreneurship

On interview - emotion

In Groups (5min discussion; 3min share back)

What policies are in place in your organisation to:

Encourage the identification of innovative opportunities?

Reward the successful implementation of innovative suggestions?

What sort of rewards, tangible and intangible, might change your behaviour?

( think individuals and teams)

Alternative – if time, but possibly need to allocate different aspects to each group

BS2402 Innovation & Entrepreneurship

GROUPS – 5mins and present back 3min each.

NB: Some tangible rewards to protect innovation – copywrite, patents, trade-marks. (see p4.24 )

eg: if manager accepts and encourages new ideas then people will bring new ideas [perhaps devotes 15mins at end of a meeting to considering new ideas, AND makes sure they are received positively.

www.wileyeurope.com/college/tidd

BS2402 Innovation & Entrepreneurship

Climate – ‘recurring patterns of behaviour, attitudes & feelings that characterise life in the organisation

Trust & openness: emotional safety in relationships – people share common values & trust

Challenge & involvement - degree to which people are involved in daily operations, long term goals & visions

Support & space for ideas – high idea-time situation where there are possibilities to discuss & test unplanned impulses & fresh suggestions. Low idea time – research confirms individuals are less creative.

BS2402 Innovation & Entrepreneurship

Mechanisms Stimulating Innovation at 3M

BS2402 Innovation & Entrepreneurship

Q: YOUR ORGANISATION – Allowing space for new ideas?

Risk Taking – high risk taking: bold new initiatives can be taken even when the outcomes are known. People feel ‘they can take a gamble’. Risk avoiding climate – cautious, safe, decide to ‘sleep on the matter’ It’s about balance between risk & stability

Freedom – ‘the independence in behaviour exerted by people in the organisation’

BS2402 Innovation & Entrepreneurship

KEEP STRESSING ITS ALL ABOUT CALIBRATING CORRECT BALANCE FOR PEOPLE / CULTURE

Boundary Spanning

The extent to which innovation has become an open process involving richer networks across & between organisations

Successful innovating organisations – an orientation which is essentially open to new stimuli

BS2402 Innovation & Entrepreneurship

Matt Kingdon Interview

Please can you pull out key points re the internal context for discussion

BS2402 Innovation & Entrepreneurship

Management/employee behaviour influencing innovation in your organisation

Factor (Manual)	Factor (Assignment)
Visionary Leadership	Management style, culture
Organisational structure	Structure
Key Individuals	Human capital,
Effective Teamworking	Teamworking
Training and skill development	Human Capital
Communication	Organisation Culture
Customer Orientation	Organisation Culture
Innovative Climate	Organisation Culture
Processes to institutionalise knowledge management	Knowedge Management

BS2402 Innovation & Entrepreneurship

Management/employee behaviour influencing innovation in your organisation

Factor (Manual)	Factor (Assignment)
Visionary Leadership	Management style, culture
Organisational structure	Structure
Key Individuals	Human capital,
Effective Teamworking	Teamworking
Training and skill development	Human Capital
Communication	Organisation Culture
Customer Orientation	Organisation Culture
Innovative Climate	Organisation Culture
Processes to institutionalise knowledge management	Knowledge Management

BS2402 Innovation & Entrepreneurship

Mechanisms Stimulating Innovation at 3M

BS2402 Innovation & Entrepreneurship

Q: YOUR ORGANISATION – Allowing space for new ideas?

Entrepreneurial Management (manual, unit 4 p 28)

BS2402 Innovation & Entrepreneurship

Assignment talks of Entrepreneurial Management Orientation = which is effectively this.

Corporate Entrepreneurship and Innovation Management

BS2402 Innovation & Entrepreneurship

Difference between entrepreneurial management and innovation management.

Dynamic Capabilities – emphasises two aspects

The shifting character of the environment

The key role of strategic management in adapting, integrating and re-configuring internal and external organisational skills, resources and competencies towards a changing environment.

Tidd (2009) p 174

BS2402 Innovation & Entrepreneurship

Barriers to Innovation

BS2402 Innovation & Entrepreneurship

Barriers to Innovation

Reluctance to close down failing programmes or organisations

No innovation

Poor skills in active risk or change management

No rewards or incentives to innovate or adopt innovations

Short-term budgets and planning horizons

Technologies available but constraining cultural or organisational arrangements

Delivery pressures and administrative burdens

Over-reliance on high performers as sources of innovation

Culture of risk aversion

Figure 6:1: Barriers to Innovation in the Public Sector Source: Cabinet Office (2003) p.31

BS2402 Innovation & Entrepreneurship

Barriers to Innovation

Path Dependence

Convergence of reward and incentive schemes with innovation reasoning

Access to sufficient capital to fund long term innovation

Organisational inability to tolerate uncertainty innovation requires chaos

BS2402 Innovation & Entrepreneurship

The Innovation Process

BS2402 Innovation & Entrepreneurship

Do we have a clear innovation strategy?

Simple Model of the Innovation Process (Tidd & Bessant, 2009)

Select – what are we going to do – and why?

Implement – how are we going to make it happen?

Capture – how are we going to get the benefits from it?

Search – how can we find opportunities for innovation?

Do we have an innovative organisation?

BS2402 Innovation & Entrepreneurship

This version from Tidd shows a simple process within the context of the innovative organistion.

Search for ideas -> select the best ideas to progress -> implement them -> capture benefits/value.

In manual there are two other processes shown:

BS2402 Innovation & Entrepreneurship

This – like New product development process (know from marketing 1?)

It is easier to see this process in big business (eg: Unilever and Lilly) because it is more structured this way, but even in small organisations the innovation process will go through these steps, even if instinctively.

(EXAMPLE: at extreme, development of a new pharma product – like a funnel)

Won’t focus on this.

The Innovation Process: Conceptual Model

Analysing

and learning

Generating

possibilities

Incubating and

prototyping

Replication

and scaling up

Source: Government Strategy Unit (2003) p.12

BS2402 Innovation & Entrepreneurship

From Unit in manual: I Like this coz shows the iterative nature & touches on the trial and error in the incubation step with fast learning feedback.

What aiming to create dynamic capability to support.

Innovation process – but encouraging more than just each – lots, concurrently occuring.

Key – is idea of iterations – (which this example shows in terms of piloting) – because innovation is (coz new) not predictable, so need systems in place to learn and feedback to improve.

Now will think about each step. As go through, reflect on how the management and employee behaviours can support or hinder the steps.

Seven ‘sources’ of innovation (areas to exploit)

The unexpected

The incongruous

Process need

Industry and market structure

Demographics

Changes in perception

New knowledge

(Source: Drucker)

BS2402 Innovation & Entrepreneurship

More clearly – these are potential areas to exploit through innovation. Is your organisation in a position to perceive opportunities from these?

Remember – technological trajectories – where are ideas likely to come from for your organisation?

Ask for examples.

Unexpected – Viagra (developed as a heart treatment - noticed ED function).

Incongruous – steel market - gave rise to minimills

Process need – synthetic insulin (not possible to get enough animal insulin);

Industry and market structure – banking – first direct.

Demographics – aging population; immigration; global mobility; dispersal of families – all given rise to possible opportunities and new needs.

Changes in perception – rise of concern for environment/global warming; organic food; farmers market (eg: Hampton)

New Knowledge – much high tech; iPod etc..

Q Can you think of examples either in your own organisation or have come across of any of these?

an urgent or nagging business imperative

different perspectives on this imperative

an environment conducive to reflection

(“successful innovation” Michael Syrett and Jean Lammiman, 2002)

Inspiration for new ideas mostly stems from the presence of, and interplay between....

BS2402 Innovation & Entrepreneurship

IMPERATIVE = NEED

Q: Can you think of any nagging business needs in your organisation?

Q: What was the nagging need for Dyson? (other example?) Jaipur foot?

(adversity is the mother of invention – certainly heightens the need for ideas)

Q What differences public/private? Large/small firms?

Eg:

Unilever – competition always fierce. If don’t innovate then will lose market share.....

Small companies- survivial

Public sector – cuts in funding – think mission/customer service/ value for money. Huge urgency to find more cost effective ways of meeting needs.

Q: Do you think needs always exist?

I would say yes “even if people haven’t recognised it yet”.

Perspectives – we’ll look at this next

Conducive – space to reflect

Organisation

>50%

Customers/

Users

30%

Suppliers/

Distributors/

Partners

Competitors

30%

Sources of Ideas

Environmental scanning

BS2402 Innovation & Entrepreneurship

More than half of ideas come from within the organisation – particularly front-line staff. (This is why the numbers don’t add up to 100% coz some of the internal ideas will have originated from customers and other external sources)

So it is critical to encourage these ideas to come forward.

It is also a reason to build diversity within the organisation. Inc – bringing in fresh thinking from outside the organisation who might look at things differently.

Q: Do you have any examples of where, say, someone new into the organisation has had ideas to improve things? (how were the ideas received?)

Many come from customers... So we’ll look at this a bit more.

Customers or

interest group

SEEN BUT CAN’T

FIND IT?

OUT OF DATE

OR STYLE?

NOT EASY TO USE?

QUALITY…NOT

GOOD ENOUGH?

WANT BUT

DOESN’T EXIST?

IT’S TOO

EXPENSIVE?

PEOPLE WANT THINGS

Adapted from Scottish Enterprise Foundation (U. Stirling) 1990

BS2402 Innovation & Entrepreneurship

So lets look at customers:

Q: Can you think of examples? Ask going round the circle:

Want but doesn’t exist. (eg: Anita Roddick – Bodyshop wanted to buy toiletries like she bought fruit & veg, in difft amounts)

seen but can’t find. (poss seen in another country. Eg: food found in Poland/other countries)

Not easy to use. (broadband growth to make internet use easier; Sharon’s cavity wall wire threading tool)

It’s too expensive (many new industries; + why so much innovation/change being pushed on the NHS currently? ; cheap copies; minaturisation (Sony) covered price and use)

Quality... Not good enough (eg: banking service; Sharon and cavity wall tool)

Out of date/style (fashion)

I would add at top aka Steve Jobs “A lot of times people don’t know what they want until you show it to them”.

Generating Innovation Possibilities through crossing boundaries

Boundary spanning activities

External

Internal

Govt regulation & support

Inspection & audit

University research; science & tecnhology parks

Other public services & countries

Supportive culture – eg. cross disciplinary working

Organisational heterogeneity/ diversity

Users, front-line staff, middle mgrs

Networking

Scanning of environment

Benchmarking

R&D

BS2402 Innovation & Entrepreneurship

When you look for opportunities for innovation in your organisation you can try looking at these areas.

Q: Examples of innovation, or changes made, picked up these in your organisation/generally?

Internal – covered this am.

Networking – e.g.between departments; conferences – e.g. Universities Russell group; doctors/consultants specialities often have international conferences in specialism.

Scanning env – customer trends; new technology? (e.g. Key-hole surgery; texting pts)

Benchmarking – e.g. Comparing Police forces, or a Police force might look at how customs complete their work. OR Swedish schools – results & approach.

Internal = much as for private sector and as have considered this am. Key diversity in recruitment and encouraging constructive conflict. (unit 5 manual)

, sch

Govt regulation & support: “ Breaking the Rules”: “there is a need to develop a dissident culture in which organisational rule-breaking is encourgaed and managed”. BUT: impact of this in public sector??? examples – encouraging Beacon schools – trying new ideas; protecting considered experimentation

+ Creating competition (e.g. Hospitals , schools – to incentivise new ideas for improvement)

Inspection and audit. Eg: Internal auditing such as within FE; Ofsted – inspecting Schools (whether agree – aim = to spot good practice and spread ideas); Six sigma - & other structured approach to auditing processes using problem solving techniques with aim to create improved/better value solutions.

Research: e.g. Toiletries – anti-aging research from Universities.

Other sectors: Airport passenger movement – patient movement in hospitals (but now poss need the other way)

Other Countries: Gov’t initiatives. Current banking – Govts all looking to other countries for ideas. Eg: Policing – zero tolerance (New York); Education – Scandinavia – Swedish ‘Open Schools’ being piloted here.

Environmental scanning...

BS2402 Innovation & Entrepreneurship

When you look for opportunities for innovation in your organisation you can try looking at these areas.

Q: Examples of innovation, or changes made, picked up these in your organisation/generally?

Inspection and audit. Eg: six sigma = structured approach to auditing processes using problem solving techniques with aim to create improved/better value solutions.

Research: Gov’t think tanks?; Toiletries – anti-aging research from Universities.

New Technologies: minaturisation; gene technology; mobile technologies.

Other sectors: Airport passenger movement – patient movement in hospitals (but now poss need the other way)

Changing your perspective Look around you:

Now look around again – focusing on any objects that match your chosen colour

Now choose a colour…

Does the scene look the same? Try with a different colour…

Source: www.spaceforideas.uk.com (Professor Wiseman)

BS2402 Innovation & Entrepreneurship

How could the Foundation Degree be improved?

Source: University of Teeside

Innovation on your doorstep - A TASK

BS2402 Innovation & Entrepreneurship

Brainstorming...

Generate as many ideas as possible - the more the better

Improve and build on each others’ ideas: as well as suggesting new ideas, try and develop someone else’s ideas by proposing improvements or ways of combining ideas

encourage long shots: crazy-sounding ideas can often spark off original and practical thoughts

encourage rather than criticize others: praise other group members’ ideas to encourage them to come up with more rather than turning off their creative tap by adverse comments

always record all ideas on a sheet of paper or a flip chart

BS2402 Innovation & Entrepreneurship

5mins.

AT LEAST 20 ideas – but don’t stop at 20.

Mid way through – add in:

Group 1) ‘take something away’ – ie: degree has no teachers – more ideas?

Group 2) ‘provocation’ – ie: the degree makes you less employable – what is good about this.

Share back in overview – 3min each group.

Changing perspective .…

Take Something Away

The foundation degree has no lecturers

Provocation

The foundation degree makes you less employable

Analogy

The foundation degree is like a car servicing garage (window/ rugby game etc..) because......

Blank Sheet – back to original purpose

Providing access to higher education to wider group

BS2402 Innovation & Entrepreneurship

Changing perspective is about forcing yourself to break away from how things are done now.

There are also other ideas in your manual in Unit 6.

General Points on Opportunities

Creating Value not lowering cost

Opportunities not the same for everyone

Not every Good Idea is a business opportunity

Look for opportunities in emerging markets rather than established ones: entry barriers

Does not need to be hi tech / high risk innovation: Schumpeterian innovation

Derived from Birley and Muzyka in Mastering Enterprise

BS2402 Innovation & Entrepreneurship

Value = in public sector could be improving outcomes.

e.g: Keyhole surgery.

Congestion charge

Q: How are your progressing with an Innovation Idea?

In 3s.

Take turns to share your ideas, or your plans to generate innovative ideas. Help each other create a plan. (1min each)

Where will you go to for your innovation ideas?

Who to?/sources? – new employees; customers; suppliers; outside sector? This group?

Techniques useful? – eg: brainstorm with work colleagues?

Where do you have your best ideas?

How will you create space for yourself to reflect?

BS2402 Innovation & Entrepreneurship

IDEAS ALREADY?

Where will you go : think about the areas we’ve looked at – eg: asking customers/users; someone new to the organisation. Can you set up an internal brainstorm? Perhaps creating an innovation culture would be the biggest innovation??

IDEAS TO SHARE WITH OTHERS TUESDAY?

+ think about this process – creating space for ideas.

NB: Like we did with Foundation Degree theme. Can provide a theme for a brainstorming session. Also use for overcoming barriers.

The Innovation Process: Conceptual Model

Analysing

and learning

Generating

possibilities

Incubating and

prototyping

Replication

and scaling up

Source: Government Strategy Unit (2003) p.12

BS2402 Innovation & Entrepreneurship

Incubating and prototyping

There is at the start of this phase and throughout the issue of allocating resources to support the best ideas going forward.

Is the innovation likely to succeed?

Is the problem the innovation is designed to address well-formulated?

Have similar innovations been tried elsewhere?

Is there is a clear plan for how the idea can be developed?

Are the potential benefits commensurate with the development costs?

PLUS:

Does the innovation fit with the organisation goals?

Is the organisation capable of coping with it?

Incubation, prototyping & managing risk...

In effect…how do you (safely) turn a good idea into an innovative opportunity?

BS2402 Innovation & Entrepreneurship

Key questions

Critical - allow innovations to flourish, rather than dismissed pre-chance. STRONG HISTORY OF INNOVATION REQ’D/

Product development: concept development, business and market analysis; market research, test marketing. (MARKETING)

Public sector: timescales to plan/mechanisms to foster innovation = harder to grab opportunities.

Barriers and ‘won’t work here’; ‘not how we do things around here’ can start to emerge.

BREAKING THE RULES p5.8 (within rules) “Rule-breaking is encouraged and managed” Govt Strategy Unit paper on innovation.

Safe Spaces...

BS2402 Innovation & Entrepreneurship

If Innovation is to succeed – need to protect it from day to day. In Co.s often set up a separate project team, or even separate business unit to pursue an innovation. NB: Part of structure/mgt behaviours needed in org’n.

‘Safe spaces’ are areas where fledgling ideas or firms are encouraged.

P 5.11

Examples:

Pilot – widely used (examples from group)

[EXAMPLE: Teleweb – 1st = 3rd party, measure results; 2nd = in house small scale w contract staff. Self allocated as project manager, so outside other distrctions; 3rd = recruit and scale up, results measured all time]

Decision to go ahead rests on outcome of pilot. NB: Appropriate pilot thinking of scale-up. (+ texting example).

NB: Must test, analyse, learn – example of Poll tax.

Pathfinders: Govt & Private. Strategic link to full scale; shortened timescales. Tests practicalities and make modifications. Qn: any of you been involved in a pathfinder project?

Zones: similar to pilot (again public sector mostly).

Incubators: much used for small firms. So such as office space; legal advice; financial advice and opportunities available within a network or area. Support mechanism for the fledgling firm. Kingston University links to Kingston Innovation Centre.

So, for your innovation(s) – how can you create ‘safe space’ to allow them to be tried and tested to give them best chance of success? How does your company support this? Q: How would you measure if your pilot or trial has been successful?

EXAMPLE:

(eg: ring-fencing funds for pilots/innovations- Teleweb example)

Q: WHAT IS YOUR ORGANISATION ATTITUDE TO FAILURE? – examples?

The Innovation Process: Conceptual Model

Analysing

and learning

Generating

possibilities

Incubating and

prototyping

Replication

and scaling up

Source: Government Strategy Unit (2003) p.12

BS2402 Innovation & Entrepreneurship

Q: Main issues regarding replication and scale-up? Flip chart ideas.

(private and public sectors)

V. FOCUSSED SELECTION REQUIRED – TIMELY EVALUATION?

Specific combination of resources/competencies – how created competency? (Esp public sector). Potential barrier.

Costing & resources – this where big commitments needed.

Was the pilot appropriate to all? Barriers/excuses that not relevant to other parts of organisation. Esp true in public sector “not invented here/won’t work here/our situation is different”.

Need proper assessment of pilot and its implications

Manufacturing – manufacturing on bigger scale/sourcing – some processes in development phase may nee redesigning

Replication and scaling up – barriers big in public sector – initiatives in one area working elsewhere in the country. (ownership for an idea; differences in local population – real and perceived). Also rules and norms entrenched. Need appropriate reward/penalty balance.

e.g. Roll out of new way of working. Monitored and included in performance measures. (Lilly CRM)

Replication and Scaling Up...

In general, Governments have relied on two sets of mechanisms:

law, central direction and administrative command; and

dissemination of evaluations of pilots, case studies and best practice

Both can be appropriate in particular circumstances but both have their weaknesses.

Q: Can you think of some examples of each?

BS2402 Innovation & Entrepreneurship

Easier in private

The Innovation Process: Conceptual Model

Analysing

and learning

Generating

possibilities

Incubating and

prototyping

Replication

and scaling up

Source: Government Strategy Unit (2003) p.12

BS2402 Innovation & Entrepreneurship

Q: How good is your organisation at analysing success of new initiatives?

What difficulties in evaluating? How might these be overcome?

Links back to Learning Organisation.

Identify and example of an innovation in your

organisation that you have been involved in.

To what extent were the phases identified and

explicitly or implicitly followed?

Which phase appeared to the most challenging?

Why?

Discussion – Innovation Process

BS2402 Innovation & Entrepreneurship

Summary of the Day

Reviewed Assignment

Considered context for innovation

External and internal factors

Reflected on own organisation internal context – ready for first part of assignment

Barriers to entry

Innovation Process

Put the internal factors affecting innovation into the context of the innovation process.

Started to think creatively about our innovation idea(s) – ready for final section of assignment

BS2402 Innovation & Entrepreneurship

MECHANISM

EFFECT

15% Rule

Employees are allowed to allocate around

15% of their official time to pursue

independent research, irrespective of their

official project. This rule resulted in the

development of many innovative products at

Genesis Grants

Under Genesis grants employees were

provided around $50,000 financial support for

their research for developing prototypes and

conducting market tests. This stimulated

entrepreneurship at 3M

Own Business

Opportunities

3M gave employees the opportunity to run

their projects depending on the sales. This

stimulated internal

entrepreneurship at 3M

Dual Ladder

This approach at 3M enabled technical

employees to move up the career path without

compromising their research / professional

interests

Technical Forums

Technical forums were established to give 3M

employees the opportunity to present their

technical papers and exchange ideas with

others.

New Product Forums

These forums were established to enable all

divisions to discuss new ideas, thus

encouraging the generation of ideas across all

divisions

Source: James, C. Collins, and Jerry I.

Porras Built to

Last (Harper Business, 1997)

MECHANISM

EFFECT

15% Rule

Employees are allowed to allocate around 15% of their official time to pursue independent research, irrespective of their official project. This rule resulted in the development of many innovative products at 3M

Genesis Grants

Under Genesis grants employees were provided around $50,000 financial support for their research for developing prototypes and conducting market tests. This stimulated entrepreneurship at 3M

Own Business Opportunities

3M gave employees the opportunity to run their projects depending on the sales. This stimulated internal entrepreneurship at 3M

Dual Ladder

This approach at 3M enabled technical employees to move up the career path without compromising their research / professional interests

Technical Forums

Technical forums were established to give 3M employees the opportunity to present their technical papers and exchange ideas with others.

New Product Forums

These forums were established to enable all divisions to discuss new ideas, thus encouraging the generation of ideas across all divisions

Source: James, C. Collins, and Jerry I. Porras Built to Last (Harper Business, 1997)

MECHANISM

EFFECT

15% Rule

Genesis Grants

Under Genesis grants employees were provided around $50,000 financial support for their research for developing prototypes and conducting market tests. This stimulated entrepreneurship at 3M

Own Business Opportunities

3M gave employees the opportunity to run their projects depending on the sales. This stimulated internal entrepreneurship at 3M

Dual Ladder

This approach at 3M enabled technical employees to move up the career path without compromising their research / professional interests

Technical Forums

Technical forums were established to give 3M employees the opportunity to present their technical papers and exchange ideas with others.

New Product Forums

These forums were established to enable all divisions to discuss new ideas, thus encouraging the generation of ideas across all divisions

Source: James, C. Collins, and Jerry I. Porras Built to Last (Harper Business, 1997)

Wilson (04)

New Business within

Firm

Corporate Venturing:

Product / Process

Innovation

management:

Focus on one off

process (i.e. product /

process innovation)

Firm 1 Firm 2

Corporate Renewal:

Organisational

Corporate Leadership:

Transformational

Market / Industry

competition

Entrepreneurial

Management:

Dynamic capability

Product / Process

Innovation

Wilson (04)

Corporate Leadership:

Transformational

Market / Industry

competition

Entrepreneurial Management:

Dynamic capability

Firm 1

Firm 2

Corporate Renewal:

Organisational

New Business within Firm

Corporate Venturing:

Product / Process

Innovation management:

Focus on one off process (i.e. product / process innovation)

Product / Process Innovation

The Innovation Management Process

(Source ABI Assisting Business Competitiveness

CDRom, 2003)

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Stage 6

Idea Generation

Idea Screening

Concept development and testing

Market strategy and business analysis

Product development and testing

Market introduction & life-cycle

management

Customer Integration

The Innovation Management Process

(Source ABI Assisting Business Competitiveness CDRom, 2003)

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Stage 6

Customer Integration

Idea Generation

Idea Screening

Concept development and testing

Market strategy and business analysis

Product development and testing

Market introduction & life-cycle management

Source: Strategy Unit (2003)

p.x

scanning, networking,

benchmarking,

openness to challenge

other organisations

other countries

other sectors

new technologies

research findings

inspection and audit

Source: Strategy Unit (2003) p.x

inspection and audit

other organisations

scanning, networking,

benchmarking,

openness to challenge

other sectors

research findings

new technologies

other countries

Safe Space

Characteristic

Pilot

Provides a local or small-scale test

Pathfinders

Similar to pilot but linked strategically to

subsequent full-scale development

Zones

Testing ground for new ideas within pre-determined

arbitrary boundary

Incubators

Support & resource infrastructure bringing together

various different parties within one ‘safe space’

Safe Space

Characteristic

Pilot

Provides a local or small-scale test

Pathfinders

Similar to pilot but linked strategically to subsequent full-scale development

Zones

Testing ground for new ideas within pre-determined arbitrary boundary

Incubators

Support & resource infrastructure bringing together various different parties within one ‘safe space’