URGENT: Managing Innovation Assignment
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ch01_in_theory_innovation_management_an_introduction.pptBUTM 404 – Innovation Management
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Innovation Management
Prepared by
Milan Frankl
for
University Canada West
CHAPTER 1
Innovation management
– an introduction
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Learning objectives
Recognize the importance of innovation
Explain the meaning and nature of innovation management
Provide an introduction to a management approach to innovation
Appreciate the complex nature of the management of innovation within organizations
Describe the changing views of innovation over time
Recognize the role of key individuals within the process
Recognize the need to view innovation as a management process.
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Why innovation is important.
- Adam Smith and Classical Economics (1776)
Wealth of nations: surplus Labour
- Marxist Economics
Social progress: changes in modes of production
- John Maynard Keynes
Fiscal policy
- Peter Drucker: the Growing Economic Significance of Science and Technology
Intellectual Labour: knowledge workers
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Why innovation is important. (continued)
- Economic Theories Incorporating Science and Technology
long-wave theory (Kondratieff): technology innovation occurs in clusters
textile, steam engine, railway
auto, electricity, radio
electronics: computing, semi-conductors
telecommunication
www
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Why innovation is important. (continued)
- Entrepreneurs vs. Governments
Available capital vs. economies of scale
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Why innovation is important. (continued)
- The Push and Pull of Modern Science and Technology
- Linear model: concentrates on what is driving the downstream efforts rather than on how innovations occur.
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Definitions:
- Innovation = application of knowledge
Innovation
=
theoretical conception + technical invention + commercial exploitation
innovation as a process as opposed to a single event
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Different types of innovation
- Product innovation
- Process innovation
- Organizational innovation
- Commercial innovation
- Marketing innovation
- Service innovation
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Changing views of innovation over time (continued)
- Simultaneous coupling model
suggests that it is the result of the simultaneous coupling of the knowledge within all three functions that will foster innovations. The starting point for innovation is not known in advance.
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Changing views of innovation over time (continued)
- Interactive model
links together the technology push and market pull models of innovation.
innovations occur as the result of the interaction of the marketplace, the science base and the organization’s capabilities.
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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innovation as a management process
- Sharing knowledge model
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Pause for though questions
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BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Pause for though questions
- .Not all firms develop innovative new products, but they still seem to survive. Do they thrive?
- While innovation is important it is possible to survive especially in the short term by focusing on traditional concerns such as minimizing costs and generating sales.
- In the longer term, however, few firms will survive for long without the need to change; and that means introducing new ways of working and new products and services
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Pause for though questions
- If two different firms, similar in size, operating in the same industry spend the same on R&D, will their level of innovation be the same?
- While R&D expenditure is important, innovation performance is dependent on many factors
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Pause for though questions
- In 2003 the BBC ran a series of television programs exploring the innovation route from idea to retail shelf. Viewers were asked to cast their vote on a selection of innovative prototype products, the winning three products would receive financial and technical backing to develop and market their idea. Which of the above are inventions and which are innovations?
- The key here is to establish which ones made it to the market place and which ones remained on the drawing board. This is the key distinction between invention and innovation.
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Pause for though questions
- Surely all innovations start with an idea and end with a product, does that not make it a linear process?
- The issue here is what is meant by linear models. They key point is that the activities occur in a straight line as opposed to an iterative process involving forward and backward stages.
BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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Questions ?
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BUTM 404 – Innovation Management
BUTM 404 – Innovation Management
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END
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BUTM 404 – Innovation Management
