The document provides an overview of innovation management. It discusses that innovation can be managed, but is not a single linear process and involves interrelated sub-processes including conception, invention, and exploitation. It also outlines different types of innovation from incremental to radical and disruptive. Popular views of innovation see it as the work of a lone inventor, but in reality innovation involves interactions between individuals, organizations, and the external environment.
The document provides an overview of innovation management. It discusses that innovation can be managed, but is not a single linear process and involves interrelated sub-processes including conception, invention, and exploitation. It also outlines different types of innovation from incremental to radical and disruptive. Popular views of innovation see it as the work of a lone inventor, but in reality innovation involves interactions between individuals, organizations, and the external environment.
The document provides an overview of innovation management. It discusses that innovation can be managed, but is not a single linear process and involves interrelated sub-processes including conception, invention, and exploitation. It also outlines different types of innovation from incremental to radical and disruptive. Popular views of innovation see it as the work of a lone inventor, but in reality innovation involves interactions between individuals, organizations, and the external environment.
The document provides an overview of innovation management. It discusses that innovation can be managed, but is not a single linear process and involves interrelated sub-processes including conception, invention, and exploitation. It also outlines different types of innovation from incremental to radical and disruptive. Popular views of innovation see it as the work of a lone inventor, but in reality innovation involves interactions between individuals, organizations, and the external environment.
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Innovation Management: an overview
innovation Dr Paul Trott, Reader in Innovation Management, University of Portsmouth.
Professor of Innovation & Entrepreneurship,
TU Delft, The Netherlands.
P Trott January 2009 Slide 1
PAUL TROTT
innovation INNOVATION MANAGEMENT AND NEW PRODUCT DEVELOPMENT 4th Edition
P Trott January 2009 Slide 2
Management of Innovation: an overview
1. Introduction 2. Can we manage innovation? 3. 4. 5. 6. innovation Models of understanding of innovation management Factors that influence the innovation process A framework for innovation management Conclusions
P Trott January 2009 Slide 3
Popular view of innovation:
innovation . . . the lone inventor/mad professor.
P Trott January 2009 Slide 4
Table 1: World’s most innovative companies
Margin Growth Stock Returns
Company 2006 Rank 1995-2005 % 1995-2005 % 1 Apple 7.1 24.6 2 Google NA** NA** 3 3M 3.4 11.2 4 Toyota 10.7 11.8 5
6 innovation Microsoft General Electric 2.0
5.7 18.5
13.4
Procter & 7 4.4 12.6 Gamble 8 Nokia 0.0 34.6 9 Starbucks 2.2 27.6 10 IBM -0.7 14.4
P Trott January 2009 Slide 5
Source: Business Week April 24, (2006) Overview of the innovation process
Scientific & Firms
technological developments inevitably lead to knowledge { Creative individuals operating functions & activities Firm’s develop knowledge, inputs.
innovation Firms architecture
& external linkages processes & products.
{ Societal changes & market needs lead to demands & opportunities. P Trott January 2009 Slide 6 2. What is innovation ?
Innovation is not a single action but a total process of interrelated
sub processes. It is 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 and Marquis (1969). P Trott January 2009 Slide 7 3. Types of innovation Dimensions of discontinuous Innovation space
New manufacturing technique Perceived
innovation extent of change radical
New improved Launch of ebay
detergent incremental product service process
What is changed?
P Trott January 2009 Slide 8
New services that also create new business models/value
Industry sector New service/new business model/value
Company Ebay On-line auction A new way of buying and selling through a community of individual users Ryanair Airline A new way of consuming air-travel with no frills service and emphasis on economy.
innovation Amazon Retailer New way to buy goods- on-line retailer Napster; iTunes Music retailer New way to buy and download music. Google Internet search A fast way to search for information on the engine internet Partygaming On-line gambling Gambling and gaming from the comfort of your own home Myspace/ Social networking A community of users on-line who can chat and Facebook share music, images, news from their own home. You-Tube On-line video and A community of users sharing home made video film archive clips plus recorded favourite clips from movies.
* The world’s largest internet poker company (Moules, 2007).
P Trott January 2009 Slide 9
Disruptive innovations
•Research by Utterback (1994) & Christensen (2000)
suggests many firms find it difficult to manage disruptive innovations;
innovation • e.g. IBM, Hoover, UK Banks, etc.
•Incumbents in an industry do not respond well to
dramatic shifts in behaviour
•How do firms manage both continuous change
and discontinuous change?
P Trott January 2009 Slide 10
5 studies of innovation management
Studies of Innovation management
1. Carter & Williams 1957 Industry & technical progress
2. Project Hindsight- TRACES 1968 Historical reviews of US gvt funded (Isensen) defence industry 3. Wealth from knowledge (Langrish et al.) 1972 Queens Awards for tech innov
innovation 4. Project Sappho 1974 Success & failure factors in chemical industry 5. Minnesota Studies (van de van) 1989 14 case studies of innovations 6. Rothwell 1992 25 yr review of studies 7. Sources of innovation (Wheelwright & Clark) 1992 Different levels of user involvement 8. MIT studies (Utterback) 1994 5 major industry-level cases 9. Project NEWPROD (Cooper) 1994 Longditudinal survey of success & failure in new products 10. Radical innovation (Leifer) 2000 Review of mature businesses
P Trott January 2009 Slide 11
Factors that affect innovation
Firm related factors:
Organisational heritage Product related factors: Experience Relative price R&D team Relative quality Strategy towards Uniqueness Innovation Technologically advanced Organisational structure
