GALES OF

CREATIVE
DESTRUCTION

MANAGING
INNOVATION

Session VI: Innovation Strategy and  Dr. Saurav Snehvrat

Intro to Scenario Planning saurav@xlri.ac.in
Design Thinking Culture
• Start with a question – Not an answer

• Empathized user-customer experience

• Repeated cycles of divergence and convergence

• Problem discovery
• Abductive reasoning- plausible conclusion but not seductively
conclusive

• Fail early and often (Fail fast)

• Iteration
Design Thinking Culture
• Abductive reasoning

➢ A person X tested positive for COVID-19. (Result)

➢ COVID-19, most likely, starts with a fever. (Most likely rule)

➢ Check if Person X had fever (or most likely Person X had fever) (Case)

• Abduction → drawing a conclusion based on explanation that best explains a

state of events, rather than the evidence provided the premises.

Design Thinking Culture
• Inductive reasoning

➢ Lets look at a person having fever (Case)

➢ Person X tested positive for COVID-19 5 days later. (Result)

➢ People having fever will have COVID-19 (Rule)

Design Thinking Culture

Rule Case Result

Most
Case Result
likely Rule

Result Conjecture Case

Deduction Induction Abduction

Stage Gate Processes

NPD
CYCLE
TIMES

Source: https://www.stage-gate.com/wp-content/uploads/2018/06/wp10english.pdf accessed on 28/8/2019

Stage Gate Processes
1. Customer driven focus
2. Upfront activities
3. Tough Go/Kill decision points
4. Cross-functional teams
5. Top management involvement

NPD
CYCLE
TIMES

Users: 3M, P&G, Abbott Nutrition, Baker Hughes, BASF, Corning, Exxon, GE,
Hallmark, Kellogg, Pepsi, National Oilwell Varco, Procter & Gamble, Mahindra, Tata
Motors etc.
Source: https://www.stage-gate.com/wp-content/uploads/2018/06/wp10english.pdf accessed on 28/8/2019
Stage Gate Processes - Structure

Source: https://www.stage-gate.com/wp-content/uploads/2018/06/wp10english.pdf accessed on 28/8/2019

Stage Gate Processes - Governance

Source: https://www.stage-gate.com/wp-content/uploads/2018/06/wp10english.pdf accessed on 28/8/2019

 Design Thinking and Stage Gates

Source: Nakata, C. (2020). Design thinking for innovation: Considering distinctions, fit, and use in firms. Business Horizons, 63(6),
763-772.
 Design Thinking and Stage Gates

flexible cooperation across units Values knowledge,

and among employees to achieve experience, and skills as the
common goals bases for task allocation.

Key coaching skills include thoughtful

listening, questioning, establishing goals, and
providing feedback

Leader monitors work flows and out-

comes, typically through formal
assessments

Source: Nakata, C. (2020). Design thinking for innovation: Considering distinctions, fit, and use in firms. Business Horizons, 63(6),
763-772.
Lean NPD
Principles Involved:

1. HR and Org Structure:

a) Cross Functional Teams with limited full-time deployment.
b) Keep the NPD team separate from operational part.

2. Process:
a) Prototyping
b) Combination of manufacturing experts with teams
c) Open Sourcing
d) Maximize use of testing and modeling softwares.
e) Allow iterations in early stages – Agile/Scrum etc.

3. Culture:
a) Allow experiments
b) Fail Fast
c) Open and Creative Culture
TYPES OF INNOVATIONS

Source: Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education,.

SOURCES OF INNOVATION

Source: Tidd, J., & Bessant, J. R. (2018). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.
MODELS OF INNOVATION
Generation Description

First Black Box Model

Second Linear models (including Push-Pull models- 1960/70s)
Push: Basic Science➔ Applied Science ➔Manufacturing ➔
Marketing → Sales

Pull: Market Place ➔ Technology Development ➔ Manufacturing

➔ Sales
Third Interactive models (Coupling and Integrated models)(1970s/80s)

Fourth Systems models (including networking and national systems of

innovation) (1990s)
Five Networking, Alliances, localized ecosystems

Source: Adapted From Marinova, D., & Phillimore, J. (2003). Models of innovation. The international handbook on innovation, 1.
MODELS OF INNOVATION

3rd Generation Models:

Source: Marinova, D., & Phillimore, J. (2003). Models of innovation. The international handbook on innovation, 1.
 MODELS OF INNOVATION
4th Generation Models: National Systems of Innovation

Source: Heinzl, J., Kor, A. L., Orange, G., & Kaufmann, H. R. (2008, December). Austrian higher education institutions' idiosyncrasies and technology transfer system.
In Proceedings of the European and Mediterranean Conference on Information Systems, EMCIS 2008.
MODELS OF INNOVATION
4th Generation Models: Triple Helix innovation systems
MODELS OF INNOVATION

Modifications to the
triple helix innovation
systems
PROCESS OF INNOVATION

Source: Tidd, J., & Bessant, J. R. (2018). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.
INNOVATION STRATEGY
❑ Derives from Corporate/Business Strategies

❑ Which creative ideas, innovations, technology paths and value

propositions to pursue?

❑ How will these choices be implemented and measured?

 Types of Innovation Strategies

Ty

INNOVATION
STRATEGY Passive Reactive Active Proactive
Objectives Do what is Wait and see, Not the first, Technological
demanded by follow after a but quick to and market
existing while follow leadership
customers
Type of Sometimes Entirely Mainly Radical and
innovation incremental incremental incremental Incremental

Source: Dodgson, Mark, David M. Gann, and Ammon Salter. The management of technological innovation: strategy and practice. Oxford University Press on Demand, 2008.
INNOVATION
STRATEGY
INPUTS:

INTELLIGENCE
METHODS
INNOVATION
STRATEGY
INPUTS:

INTELLIGENCE
METHODS

Source: Tidd, J., & Bessant, J. R. (2018). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.