Professional Documents
Culture Documents
Defining Innovation For Business Strategy
Defining Innovation For Business Strategy
Innovation as a Concept
• It’s a Process with Identifiable Steps
• People play Roles in the Process
• It’s studied by many Disciplines
• It’s part of many Frameworks
• It can be Systematically Modeled
• It produces Results and Added Value
1
What Innovation is Not
• Artistic Creativity
• Invention
• The “Bright Idea”
• Scientific Discovery
• Problem-Solving
• Simple Incremental Improvement
2
3 Views of
Innovation as a Process
• New Product Success Factors
• Innovation as New Product Development
• Innovation as New Technology
• Innovation as Management Improvement
3
New Technology
as an Innovation Trigger
• Recognize a “breakthrough technology”
• …or recognize a user need
• Formulate an application idea
• Resolve any technology problems
• Translate idea into a solution
• Develop and refine the solution
• See the solution ‘adopted’ by users
Management Practice
as an Innovation
• Observe needs and opportunities from
within an organization
• Generate an idea for addressing the need
or opportunity.
• Test the idea for feasibility
• Refine the idea for acceptability
• Sell the idea to users and employees
4
Generic Process Steps
in an Innovation
• Scanning • Production
• Recognition • Positioning and
• Ideation Selling
• Concept • Adoption and
Development Diffusion
• Prototyping • Support and
Refinement
• Testing & Evaluation
• Re-Creation
5
Innovation Diffusion
(as defined by Everett Rogers)
Innovation Pragmatists:
Adoption Stick with the herd! Conservatives:
Hold on!
Cycle
Visionaries:
Get ahead of the herd! Skeptics:
No way!
Techies:
Try it!
6
Managing Innovation Value
• Intellectual Property Management – generate
more intellectual properties; focus on short-
term returns of patent licensing.
• Intellectual Asset Management – focus on
broader intellectual assets; assemble both
unprotected and protected assets.
• Intellectual Capital Management – harness the
‘hidden value’ of an innovation; deploy
intellectual capital toward the firm’s vision
7
Innovation Landscape Summary
• Understanding basic innovation vocabulary and
concepts will help you navigate the course material.
• Exploring the textbook’s index will build your
innovation vocabulary.
• Three basic forms of innovation—New Products,
New Technologies, and New Management
Processes will comprise the range of innovation
activities in an organization.
• Managing these processes is what innovation
management is all about.