Professional Documents
Culture Documents
(INN001, 5 p.)
Todays contents
Course outline The role of innovation What is innovation (definitions, typologies of innovation) What is innovation management? Models of the innovative process
PEOPLE
Main teacher and course responsible:
Emelie Stenborg, 046-2223892, emelie.stenborg@circle.lu.se
LOCATIONS
Teaching the first three weeks mainly in the Maths house Slvegatan 18 The following 4 weeks in CIRCLEs new location at Slvegatan 16 (MNO-house)
Mondays 10-12: Lecture Tuesdays 13-15: Lecture Wednesdays/Thursdays 10-15: Seminar
LOCATIONS
MNO-house
CIRCLE
COURSE AIMS...
(1) to provide students with fundamental knowledge of the phenomenon of innovation and innovation processes in capitalist economies from the perspective of firms and industries; (2) to enable students to use basic theoretical tools that help analyse and manage real-world processes of innovation; (3) to enhance students appreciation of the importance of understanding innovation-related issues for the development of businesses, industries, countries and citizens.
WEEKLY THEMES
1. 2. 3. 4. Overview of the study field, with basic definitions, concepts and typologies, Chapter 1-2 Strategy analysis: I - building the framework and the environment, II - technology and learning, Chapter 3-6 The external dimension: markets, networks, institutions, systems, Chapter 7-8 Resource mobilization and strategy implementation, Chapter 9-10 Creating an innovative organisation, Chapter 11-12 Assessing and improving, Chapter 13
5. 6.
WEEK 1-5
Mondays and Tuesdays: Lecture Thursdays (one Wednesday): intensive seminar
The seminar is strongly compulsory Active participation expected Assignments to be handed in before the seminar Seminar may include presentations etc.
LAST 2 WEEKS
Sixth week:
Mainly reserved for writing the home exam. One lecture on the Monday (and Tuesday if you need it) with room for questions.
Seventh week:
Examination presentation and discussion in small groups (5-6 people) of the final essay (which is a part of the home exam).
EXAMINATION
Your progress and learning is assessed not only at the end of the course but throughout the entire course. Different forms of examination are used to gauge students progress: 1. Weekly written assignments in preparation for seminars 2. Formal presentations at seminars 3. Home exam, including final discussion seminar The home exam is the more important of the three.
Home exam
The first part is a number of short questions relating to the course literature. These questions will be handed out on Monday of the sixth course week (October 1st) The second part is a more open essay: students are asked to select a specific firm (or other organization) of their own choice and then relate the firm and its innovation activities to a number of more specific issues that have been taken up in the course literature and in teaching.
Week 1 27/8-31/8
Thu
Fri
2 3/9-7/9
Seminar 10-12 MH362A Seminar 13-15 MH362A Seminar 10-12 MH362A Seminar 13-15 MH362A Seminar 10-12 Seminar 13-15 Seminar 10-12 Seminar 13-15
3 10/9-14/9
Lecture 13-15
Lecture 10-12
Lecture 13-15
Lecture 13-15
Examination 10-12
Examination 10-12
Examination 10-12
Examination 10-12
Examination 10-12
Course literature
Managing Innovation
Integrating Technological Market and
Organizational Change 3ed
ISBN 0470093269
Todays contents
Course outline The role of innovation What is innovation? What is innovation management? Models of the innovative process
has to be understood as a core process of the organisation -> It is related to what is being produced
Is a long term race
Is about continuity
Has to deal with complexity!! Is about being systematic developing routines around innovation
WHAT IS INNOVATION?
Invention Technology Innovation Creating new or improved products, processes and services Knowledge and learning Uncertainty
Dimensions of Innovation
the 4Ps of innovation
Product innovation: changes in the things (products or services) which an organization offers Process innovation: changes in the ways in which they are created an delivered Position innovation: changes in the context in which the product or services are introduced Paradigm innovation: changes in the underlying mental modes which frame what an organization does
Fully codifiable
Scientific papers
Codification
Property
Pr ow iva ne tely d
Pu
bl
ic
Di
Completely tacit
sc
los
Restricted access
ur
Fully disclosed
Triggers of discontinuity
New market emerges New technology emerges New political rules emerge Running out of road Change in market sentiment or behaviour Deregulation or reregulation Fractures along fault lines Unthinkable events Business model innovation Shifts in techno-economic paradigm Architectural innovation
Conclusions
Different kind of innovations Context specific Innovation has different stages Knowledge is the key
Repetition Chapter 1
Four dimensions of innovation 1. Product, process, position, paradigm 2. System-Component 3. Incremental-New to the firm-Radical 4. Codified-Tacit
Repetition Chapter 1
Innovation: Depends on the type of firm, sector, industry life cycle, country and so on Depends on the environment Goal is mostly to survive, to grow, to make profit Technical solutions vs. societal and organisational aspects Different from invention
Innovation management
Core process
Production
Commercialisation design, marketing, resources, competence
Long term
Continuity Complexity Systematic, routines
Knowledge
Potential market
: Direct link to and from research from problems in invention and design I : Support of scientific research by instruments, machines, tools S : Support of research in sciences underlying the product areas
IP
Suppliers
INDUSTRY
Users
IP
Government
th 5
Relevance of external sources of knowledge firms do not innovate in isolation Related to Innovation System concept Focus on networking Still strong emphasis on R&D and formal knowledge (ICT)
Managing complexity
Radical Market R&D Networks
Increment al
product
Intellectual
processe s
Capital
Innovation models
SO, WHICH ONE IS RIGHT? A fast food restaurant chain? An electronic test equipment maker? A hospital? An insurance company? A new entrant biotechnology firm?
Organizational routines or capabilities are the way we do things around here (in this organization) as a result of repetition and reinforcement Routines are firm-specific and must be learned. To manage innovation means to create an organisation where routines can be learned as to cope with the complexity and uncertainty of the innovation process Unlearning is important
Implement turn potential ideas into a new product or service, a change in process. Acquiring to combine new and existing knowledge (available within and outside the organization) to offer a solution to the problem Executing to turn knowledge into a developed innovation and a prepared market ready for final launch Launching to manage the initial adoption Sustaining to manage the long term use
Learning to learn from progressing through this cycle so that they can build their knowledge base and can improve the ways in which the process is managed. Restart the cycle Failure why? Refine, improvement next generation Learning about technology, routines & organization
Activities
Scanning environment for technological, market, regulatory and other signals Collect and filter signal from background noise Scan forward in time Process signals into relevant information for decision making
Definition:
Selection of the various market and technological opportunities.
Inputs:
(1) the flow of signals coming from the previous phase (2) the current technological base of the firm (3) the fit with the overall business strategy.
Definition:
Combining new and existing knowledge to offer a solution to the problem.
Activities:
Invent in-house through R&D activities Create the conditions for creativity Use existing knowledge in-house Technology transfer and knowledge transfer Licensing..etc
Definition:
Close interaction between marketing related activities and technical activities to develop the idea into a marketable product or service.
Activities:
Develop to maturity Technical development Development of the market Launch After-sales support
Activities:
Continuous improvement Knowledge and IC management
Innovation is a risky process....but also a mandatory one. Success depends of a variety of: Internal factors
Good management Core competencies Clear innovation strategy Right technology
External factors
Links with market and suppliers Learning from competitors Institutional support: financing, human capital, etc
Successful innovation
New products, processes and services account for an increasing share of sales
Lower prices Better-performing products Better features for certain users (niche)
of resources devoted to the development of new products go to unsuccessful projects 35% of products launched fail commercially
Summary of Chapter 2
Models of the innovation process Routines and capabilities Innovation management process Partial views on innovation
What, would you say, might be the most important difference between the successful and the unsuccessful firm? Please hand in half a page or one page or so, and bring a print-out of your answer with you to the seminar! (The assignment will not be graded, but you have to bring it with you to the seminar in order to participate!)
You dont have to decide now... ...however, a recommended strategy is that you choose case(s) with enough richness to cover several aspects of innovation