17 hours examination (Innovation Management)
SJ/-
Lecture1.2DifferentAspectsofInnovationstudentcopyEDI.pptxInnovation Management
Lecture 1.2
Different Aspects of Innovation
Purpose and Content
To introduce the following key concepts:
Innovation as a process, generic model
Incremental & Radical innovation
Discontinuous Innovation
Innovation Life Cycle
A Process View of Innovation
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Outputs
‘product innovation’ – changes in the things (products/services) which an organisation offers;
‘process innovation’ – changes in the ways in which they are created and delivered;
‘position innovation’ – changes in the context in which the products/services are introduced;
‘paradigm innovation’ – changes in the underlying mental models which frame what the organisation does.
Source: Tidd, J. and Bessant J. (2013) Managing Innovation, (5th Edition) Chichester, Wiley.
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4 P Framework
Tidd and Bessant take these 4 P’s to provide a framework for looking at Innovation Space, the space in which an organisation can operate.
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4 P Framework- Garden Machinery Firm Innovation Space
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Different Aspects of Innovation
Incremental or Radical – Degree of novelty
Platforms and families of innovations.
Discontinuous innovation – what happens when the rules of the game change?
Level of innovation – component or architecture?
Timing – the innovation life cycle.
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Incremental or Radical
Do what we do better
Perceived degree of novelty
BIC ballpoint pen
1957 Radical innovation
Since then, incremental changes in materials, inks, ball technology, safety features etc.
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Platform Innovation
A strong basic platform or family which can be extended
Stretch and adapt to suit different needs
Audi, VW, Skoda
Proctor & Gamble
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Discontinuous Innovation
Rules of the game change, technology, market, political or other domain
Redefine space and boundaries
Open up new opportunities
Create new conditions for the existing players
Schumpeter’s “creative destruction”
Can you think of other examples?
https://padlet.com/r_stirzaker/ r6c4ii882byx
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Triggers/sources of discontinuity 1
New markets emerge – Disk drives
New technology emerges – Ice harvesting
New political rules emerge –e.g. Soviet Union
Running out of road – Kodak
Sea change in market sentiment or behaviour – Napster vs. traditional music industry
Taken from text book, table 1.4. Ask students to think of their examples and link to these.
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Triggers/sources of discontinuity 2
Deregulation/shift in regulatory regime – telecoms.
Fractures along “fault lines” – tobacco
Unthinkable events – 9/11
Business Model Innovation – low cost airlines
Architectural innovation – chip manufacture
Systemic changes which impact whole sectors or even societies “techno economic paradigm” – mass production
Taken from text book
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Theory of Disruptive Innovation
Utterback 1994 - 27 firms in 8 industries examined, all threatened by radical innovation; only 7 were successful once a disruptive, radical innovation occurred.
Christensen, 1997 – market leaders failed when new markets emerged that required combinations of technologies.
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Disruptive Innovation
3 components
Enabling technology
Innovative business model
Coherent value network
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Component/Architecture
Henderson & Clark (1990) Successful innovation requires getting hold of and using knowledge about components, but also about how those can be put together –what they termed architecture of an innovation.
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Dimensions of Innovation
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Innovation Life Cycle
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Purpose and Content
To introduce the following key concepts:
Innovation as a process, generic model
Incremental & Radical innovation
Discontinuous Innovation
Innovation Life Cycle
