My expectations Roko vs. global Think Act/Implement
▪ Roko- Roko ▪ Roko- Global▪ Global- Global▪ Global- Roko
Rote learning Applications
Creativity, unconventionality ▪ Safaricom/Mathare Valley/Bottom of
pyramid/journey to Mars▪ MBA-class; Smoking, Hotels, games,
Residence, friends, cars Entrepreneurship InnovationsNEXT Page….The happy Valley
Research is about getting new ideas before others, not recycling tired ideas
What do you read? economist?
What do you watch? news versus comedy/movies
Who do you associate with? what do you share-5am in the morning!this is what will differentiate you all after
school!
1. Introduction
2. Product and process innovations
3. Typology of innovations
4. Different schools of thought
5. Models of understanding of innovation management
6. Implications for developing products and services
7. Summary and review
Theories and modelsof innovation management
• Innovation management is not exclusivelyassociated with products
• New ways of doing business in service sector• Innovation management involves change,
particularly technological change• Sometimes this involves product, service and
process changes• The level of change is an important dimension
Introduction
• Pfizer’s Sildenfil – aka Viagra:
The fastest selling human drug
• Gore Associates’ Gore-Tex:
the versatile polymer polytetrafluoroethylene (PTFE)
• Dyson’s vacuum cleaner:
Revolutionised a very stable mature industry
Other examples?
Product technology advantages
• Enterprise Resource Planning (ERP) business software; virtually all large firms have installed it.
• SAP, Oracle, Baan and PeopleSoft. • SAP has over 20,000 products installed worldwide
and Oracle has installed databasesin nearly every one of the world’s top 500 companies.
• Moreover, it has changed the way they work (Gartner, 2002).
• How has ERP Changed the way firms work?
Process technologies
Type of innovation ExampleProduct innovation The development of a new or improved productProcess innovation The development of a new manufacturing
process such as Pilkington’s float glass processOrganisational innovation A new venture division, a new internal
communication system; Management innovation TQM (total quality management) systems, BPR
(business process re-engineering); introduction of SAPR3
Production innovations Quality circles, JIT manufacturing system, new production planning software, e.g. MRP II, new inspection system
Commercial/marketing innovations New financing arrangements, new sales approach, e.g. direct marketing
Service innovations ebay; Internet banking, etc.
Typology of innovations
The lone inventor/mad professor.
But, such views lead to misunderstanding. Science does not equal innovation. Innovation is much more than science, e.g. scientific discoveries pre-date commercial products by many years.
Popular view of innovation:
1. Market-based view of innovation;market conditions provide the context which facilitateor constrain the extent of firm innovation activity (Slater & Narver, 1994; Porter, 1980, 1985).
2. Resource-based view of the firm; a firm’s own resources provide a much more stable context in which to develop its innovation activity, and to shape its markets in accordance to its own view (Tidd et al., 2001; Shavinina, L.V. (ed.) (2003); Patel, P. and Pavitt, K. 2000).
3. SerendipityInnovation is all due to luck and good fortune
Three key schools of thought:
1950/60s Technology push Simple linear sequential process. Emphasis on
R&D. The market is a receptacle for the fruits
of R&D.
1970s Market-pull Simple linear sequential process. Emphasis on
marketing. The market is the source for
directing R&D. R&D has a reactive role.
1980s Coupling model Sequential, but with feedback loops.
Combinations of push and pull.
1980/90s Interactive model Emphasis on integrating R&D and marketing.
1990s/00 Network models Emphasis on external linkages
Table showing the chronological development of models of innovation
Research anddevelopment
Manufacturing Marketing User
Technology push
Research anddevelopment
ManufacturingMarketing User
Market pull
Linear models of innovation management
Science and
technology base
Needs of
the marketdevelopments
Technological
Creation of new knowledge
dominated by universities and
large science-based organisations
Technology development-
dominated by organisationsthe consumption of products
Consumers express their
needs and wants through
Conceptual framework
EXTERNAL INPUTS:societal needs;competitors;supplier partnerships;distributors;customers;strategic alliances.
EXTERNAL INPUTS:scientific and technological development;competitors;suppliers;customers;university departments.
Organisation and business strategy
Mar
ketin
g
EXTERNAL INPUTS:macro factorsROIcosts;competition.
Organisation’s knowledge base
accumulates knowledge
over time
Research and technology
Innovation management framework
New productsSource: Trott, 2005
Innovative firm Explanation for innovative capability
Apple Innovative chief executive
Google Scientific freedom for employees
Samsung Speed of product development
Procter & Gamble Utilisation of external sources of technology
IBM Share patents with collaborators
BMW Design
Starbucks In-depth understanding of customers and their cultures
Toyota Close co-operation with suppliers
Explanations for innovative capability
• Role of the market is important• Role of technology is important• It’s a cross functional process• Role of external linkages and networks are important• Skills and knowledge are acquired over time and firms
develop competencies
Useful references:
Patel, P. and Pavitt, K. (2000) ‘How technological competencies help define the core (not the boundaries) of the firm’, in
Dosi, G., Nelson, R. and Winter, S. G. (eds) The Nature and Dynamics of Organisational Capabilities, Oxford University Press, Oxford.
Shavinina, L.V. ( ed.) (2003) The international handbook on Innovation, Pergamon, Oxford.
Tidd, J., Bessant, J. and Pavitt, K. (2001) Managing Innovation, 2nd edn, John Wiley & Sons, Chichester.
Implications for developingproducts and services