17 hours examination (Innovation Management)
SJ/-
Lecture3.1SourcesofInnovationStudent.pptxContent and Purpose
Identify and discuss key sources of innovation
Consider the benefits and limitations of different sources of innovation
Process Model of innovation
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Classification of innovations (Cooper 1993)
| New Product Lines | New to the world products | |
| Improvements to existing products | Additions to existing product lines | |
| Repositioning |
Newness to company
Newness to market
Low
Low
High
High
Reference: Cooper R.G. (1993) Winning at New Products: Accelerating the Process from Idea to Launch, 2nd Ed., Perseus Books, Reading MA
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Degree of Change
How “new” is the iPhone X?
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The Role of Design Led Innovation
Term developed by Vergani. See Tutorial 4 reading. Verganti, R (2011) "Designing Breakthrough Products" Harvard Business Review October 2011, 114 – 120
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Knowledge Push
Scientific research
Dyson
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Need Pull
Innovation is response to real or perceived need for change.
Products: Hyundai Case Study (p238)
Process: Kaizen
Services: Grameen Bank Project
Grameen Bank Project, started by Mohammed Yunus, with a core concept of micro finance, enabling the poor to take tiny loans to start and grow tiny businesses. Started in 1979, now serves over 5 million clients and allowed 10,000 families to escape the poverty trap.
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Whose needs?
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Frugal Innovation
Many opportunities for innovation in emerging markets.
First Break all the Rules, Economist; 4/17/2010, Vol. 395 Issue 8678, special section p6-8.
The new masters of Management, Economist; 4/17/2010, Vol. 395 Issue 8678, p11-11.
Also see: Prahalad, C. K. (2012). Bottom of the Pyramid as a Source of Breakthrough Innovations. Journal of Product Innovation Management, 29(1), 6-12.
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Mass Customisation
Ability to offer highly configured bundles of non-price factors configured to suit different market segments without incurring cost penalties.
What examples can you think of?
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Type of customisation
Distribution customisation – Amazon
Assembly customisation – Dell
Fabrication customisation – BMW
Design customisation - Entertainment
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Users as Innovators
Lead Users
Use of communities
Crowd sourcing
Nambisan (2008)- product conceptualizer, product designer, product tester, product support specialist and product marketer
Nambisan (2008) https://sloanreview.mit.edu/article/how-to-profit-from-a-better-virtual-customer-environment/
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Watching Others
Imitation
Reverse Engineering
Benchmarking
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Recombinant Innovation
Ideas and applications which are commonplace in one world may be exciting in another
Old ideas in new contexts
Example Reebok
IDEO Technology Brokering
Example:
Video of lights in Norway. https://www.youtube.com/watch?v=mi8eE_NEfHM&t=184s
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Regulation
Restricts certain things e.g. UK legislation to ban smoking in public places.
Opens up new opportunities for innovation, for example e-cigarettes and various products to aid people cease smoking.
New innovation space and opportunity created.
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Futures and Forecasting
Researching alternative pictures of the future
“The future of innovation relies significantly upon our ability to tap into the collective creativity and experience of all stakeholders in our ecosystem” Francisco Pinheiro, Director Global Innovation, Atos Origin International.
We look at this in more detail in another lecture, but it is a powerful source of innovation.
Shell has a long history of exploring future options and driving innovation.
The first website here highlight a book draws on the insights of nearly 400 researchers, practitioners and policy makers from over 60 countries paints a picture of different ways in which the future of innovation is seen.
An interactive website as part of INFU, Innovation Futures for Europe, present a variety of scenarios and invite elaboration and addition.
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Content and Purpose
Identify and discuss key sources of innovation
Consider the benefits and limitations of different sources of innovation
