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Innovation Management: an overview

Innovation Management: an overview. Dr Paul Trott, Reader in Innovation Management, University of Portsmouth. Professor of Innovation & Entrepreneurship, TU Delft, The Netherlands. PAUL TROTT INNOVATION MANAGEMENT AND NEW PRODUCT DEVELOPMENT 4th Edition.

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Innovation Management: an overview

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  1. Innovation Management: an overview Dr Paul Trott, Reader in Innovation Management, University of Portsmouth. Professor of Innovation & Entrepreneurship, TU Delft, The Netherlands.

  2. PAUL TROTT INNOVATION MANAGEMENT AND NEW PRODUCT DEVELOPMENT 4th Edition

  3. Management of Innovation: an overview • Introduction • Can we manage innovation? • Models of understanding of innovation management • Factors that influence the innovation process • A framework for innovation management • Conclusions

  4. Popular view of innovation: . . . the lone inventor/mad professor.

  5. Table 1: World’s most innovative companies Source: Business Week April 24, (2006)

  6. Overview of the innovation process { Scientific & technological developments inevitably lead to knowledge inputs. Firms operating functions & activities Creative individuals Firm’s develop knowledge, processes & products. Firms architecture & external linkages { Societal changes & market needs lead to demands & opportunities.

  7. 2. What is innovation ? Invention & innovation Innovation = conception + invention + exploitation Source: Henry & Walker (1991) 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).

  8. 3. Types of innovation Dimensions of Innovation space discontinuous New manufacturing technique Perceived extent of change radical Launch of ebay New improved detergent incremental product service process What is changed?

  9. New services that also create new business models/value * The world’s largest internet poker company (Moules, 2007).

  10. Disruptive innovations • Research by Utterback (1994) & Christensen (2000) • suggests many firms find it difficult to manage • disruptive innovations; • 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?

  11. 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 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

  12. Factors that affect innovation • Firm related factors: • Organisational heritage • Experience • R&D team • Strategy towards • Innovation • Organisational structure • R&D intensity • Product related factors: • Relative price • Relative quality • Uniqueness • Technologically advanced Successful marketable product Commercial viability Technological viability • Project related factors: • Complementarity • Management style • Top management • support • Market related factors: • Concentration of • Target market • Timing of market entry • Competitive pressure • Marketing

  13. Linear models of innovation management

  14. Interactive model of innovation TECHNOLOGY PUSH latest science and technology advances in society commercial product idea R&D Manufacturing Marketing needs of society and the market place MARKET PULL Source: Rothwell & Zegweld (1985)

  15. Open Innovation Basic Research New Product Development Current market And business model Internal research projects Technology acquisition Technology In-licensing Venture investing External research project (Chesbrough, 2003)

  16. Open innovation . . . Procter & Gamble’s web of links for innovation and new product development Source: HBR (2006)

  17. Cyclic Innovation Model Technological research integrated engineering cycle hard sciences cycle Scientific exploration Product creation Entrepreneurship Marketing cycle soft sciences cycle Market transitions Source: G Berkhout (2007), TU Delft.

  18. The end Thank you For listening

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