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Hochschule für Angewandte Wissenschaften Hamburg
Hamburg University of Applied SciencesDepartment of Business 
Innovation Management
Setting up an Innovation Processand Implementing anInnovative Company Culture
 
- TERM PAPER -AIM-Seminar Summer Term 2008
 Author 
Markus Massar 
 Address line 1 Address line 2
Matriculation Number 
 xxx xx xx Lecturer 
Prof. Dr. A. Schikarski
Submitted 
April, 29
th
2008
 
Table of Contents
List of Tables
Table 1 – Explanation of the Levels in the Reference Model (Bessant 2003: 68-69)..............18
List of Diagrams
Diagram 1 – Options for Involvement in the Innovation Process (Bessant 2003: 49)...............6Diagram 2 – Categories of Innovation (Wheelen and Hunger 2008: 303).................................7Diagram 3 – The Enterprise Model – Internal Variables (Brache 2001: 5)................................8Diagram 4 – Linked Business Elements (Own Illustration 2008)..............................................9Diagram 5 – Basic Problem Finding / Solving Cycle (Bessant 2003: 107)..............................15Diagram 6 – The Five-Stage Model of High-Involvement Innovation (Bessant 2003: 57).....172
 
1Introduction
Businesses exist in dynamic and competitive environments nowaways. Thus, the number onestrategic goal of businesses is to gain and maintain competitive advantage. By programs of continuous improvements companies try to reduce costs, to enhance quality, and to increasespeed of responsiveness to customer needs. Additionally, most businesses have some sort of innovation program on their agenda to stay ahead of (or at least keep in pace with) their competitors.Still, finding a common ground on what innovation is and what business elements to consider when implementing innovation seems intricate. The research on the topic of this term paper reveals a wide range of terms associated with innovation. Some examples are 'research anddevelopment (R&D)', 'product innovation', 'corporate entrepreneurship', 'intrapreneur','inventorpreneur', 'think tanks', 'continuous improvement', 'change program', 'market research','systems engineering' and 'optimization process'.This term paper lays the fundamentals to
understand innovation and its implementation
in businesses independent from the type of business on a strategic level.
2Innovation fundamentals
A gateway to innovation is the success story of the manufacturing company 3M. One of theaward-winning products of the last century is the Post-it® note developed by two employeesof 3M. In 1968 the researcher Spencer Silver developed an adhesive that was 'not working properly' as a glue. So he tried marketing his product within 3M to discover a use for his non-adhesive glue. Unfortunately his mission was without immediate success. Years later, the product developer Arthur Fry found a meaningful purpose for the 'non-working' thing.Subsequently 3M worked out a product to be marketed. Since then 3M's notes have been soldworldwide in 400 different variations of the original product (3M 2002: 38-40).Innovation can be a function of an area or areas within a corporation whereas functions are performed by a diverse range of employees. Although the original product itself wasdeveloped in a research department, the latter idea for use of the product was the result of aneed that arose by one person. Needless to say that the consequential implementation was a3
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