Intro Innovation

What is your opinion about scientists?
What’s your opinion about scientists?
2
“Two types of scientists”
The nature of innovation
Linear models of innovation 3

The simultaneous coupling model
Elon Musk: https://youtu.be/mh45igK4Esw

5
What is innovation?
What drives innovation?
https://youtu.be/oD7X3KvJAVk
Innovation Categories:
What is the difference between
incremental and radical innovation?
Incremental innovation
Involves making minor changes over time:
a) to sustain the growth of a company
b) without making sweeping changes to product lines, services,
or markets in which competition currently exists.
Charles & Tellis (Journal of Marketing Research, 1998)
Skin-tone band-aids
8
Incremental innovation
Involves making minor changes over time to:
a) sustain the growth of a company
b) without making sweeping changes to product lines, services,
or markets in which competition currently exists.
9
Radical innovation
The propensity of a firm to introduce new products that:

(1) incorporate substantially different technology from existing products,
(2) can fulfill key customer needs better than existing products.
10
Continuum of innovation
11
Incremental innovation:
Key implications Radical innovation:
• Happens once dominant • Can be basis for successful
(High)
design has been established, entry by insurgents (“rebel
• Exploits the potential of companies”),
established design to • Creates great difficulties for
reinforce position of current
Newness
current firms (“incumbents”),
firms (“incumbents”), • May open whole new markets
• Drives rapid market and applications.
performance improvement.
(Low)
(Low) Newness (High)
12
Key implications
(High)
Newness
(Breakthrough (Transformational)
market- innov.)
(Sustaining (Breakthrough
(Low)
innovation) tech-innov.)
(Low) Newness (High)
"The Innovator's Dilemma" by Clayton Christensen:

https://youtu.be/yUAtIQDllo8
Which types of
innovation do you know?
https://youtu.be/t6nEby3AoPM
Diffusion of Innovations (DOI) 1
Adoption categories: explains how innovations are taken up in a population
Enthusiasts Visionaries Pragmatists Conservatives Skeptics

1 Everett Rogers (1962, 1971, 1983, 1995, 2003)
19
Diffusion of Innovation Curve
Adoption categories: explains how innovations are taken up in a population
Everett Rogers (1962, 1971, 1983, 1995, 2003)

Diffusion of Innovation
Rogers (1962):
The process of acceptance of an innovation over time
by the members of a social system.

Elements of Diffusion
• Innovation
• Adopters
• Communication Channels
• Time
• Social System
Elements of Diffusion - Innovation
• An idea, perceived as new by an individual or
another unit of adoption, which finds acceptance
in the market place.
Elements of Diffusion - Adopters
• Individuals, organizations or clusters within social networks
or countries.
Elements of Diffusion – Communication Channels
• Allow transfer of information
from one unit to the other and
are necessary between parties
for diffusion to occur.
Elements of Diffusion – Time
• Innovations are rarely adopted instantaneously.
Time is necessary for innovations to diffuse.
Elements of Diffusion – Social System
• A combination of external and internal influences, which
affect a potential adopter.
Rate of Adoption
• Relative speed at which members of a social system adopt an
innovation.
Characteristics of Innovations and Rate of Adoption
• Relative advantage (+)
• Compatibility (+)
• Complexity (-)
• Trialability (+)
• Observability (+)
Relative advantage - The degree to which an innovation
is perceived as better than the idea it supersedes.
Compatibility - The degree to which an innovation is

perceived as being consistent with the values, past
experiences, and needs of potential adopters.
Diffusion of
Complexity - The degree to which an innovation is
Innovations (DOI)- perceived as difficult to understand and use.
Perceived attributes
Trialability - The degree to which an innovation can be
experimented on a limited basis.
Observability – The degree to which the results are

visible.
Robinson, L. (2009). A summary of diffusion of innovations. Enabling Change.
31
Diffusion of Innovations
Innovations
and
Adopter Categories
Definition
Innovation:
Innovation is a new idea
that works well in the market place.
Innovation = Invention x Commercialization

Rogers Innovation Diffusion Curve
Source: Rogers, E. M. (1995). Diffusion of Innovations, 4th Edition, The Free Press
Innovators
◼ are the first people to buy a product.
◼ have access to substantial financial
resources.
◼ are venturesome and willing to take
risks.
◼ have cosmopolitan social relationships.
Early Adopters
◼ are in a hurry to buy a product.
◼ have opinion leadership toward
potential adopters.
◼ are respected by their peers, i.e.
„individual to check with“
◼ are not price sensitive.
Moore, G. A. (2006). Crossing the Chasm, Revised Edition, HarperBusiness
Early Majority
◼ adopts a product just before the
average member of a system.
◼ deliberates some time before adopting
a new idea.
◼ prefers to follow rather than to lead the
adoptions of innovation.
Late Majority
◼ is against discontinuous innovation.
◼ is price sensitive.
◼ buys a product only after most people
have made the switch.
◼ buys a product as a result of increasing
peer pressure.
Laggards
◼ are the last user segment to adopt a
product.
◼ are sceptic and resistant to change.
◼ past-oriented.
◼ possess no opinion leadership.
◼ have limited financial resources.
Definition
Manufacturer Dominated Innovation:
◼ Process of innovation:
❖ User only communicates the need.
❖ Manufacturer develops the idea,

manufactures and commercializes.
Source: von Hippel, E. (1976). The dominant role of users in the scientific instrument innovation process. Research Policy, 5(3), 212-239
Definition
User Dominated Innovation:
◼ Process of innovation:
❖User develops the idea,
i.e. develops all the tasks prior to
manufacturing & comercializing.
❖Manufacturer manufactures and
commercializes.
Source: von Hippel, E. (1976). The dominant role of users in the scientific instrument innovation process. Research Policy, 5(3), 212-239
Conclusion
An Innovation is
◼… a user innovation, if the developer
expects to benefit from it by using it.
◼… a manufacturer innovation, if the
developer expects to benefit from it by
selling it.
Source: von Hippel, E. (1986). Lead Users: A Source of Novel Product Concepts. Management Science, 32(7), 791-805
von Hippel, E. (1982). Appropriability of innovation benefit as a predictor of the source of innovation. Research Policy, 11(2), 95-115.
Why do users innovate?
Users innovate because they have

specific needs
for
customized products.
Source: von Hippel, E. (1986). Lead Users: A Source of Novel Product Concepts. Management Science, 32(7), 791-805
von Hippel, E. (1982). Appropriability of innovation benefit as a predictor of the source of innovation. Research Policy, 11(2), 95-115.
Examples of User-Led Innovations
Source: Eric von Hippel

Engineered Commercial Version

Videos of user innovations

Shall we involve users in new
product development?
YES!
But why?
Advantages of User-Led Innovation
◼ User
Innovations often address
needs that a product does not fulfil.
◼ Users share their innovations for
free.
◼ Firms save in R&D and NPD costs.
Shall we involve users in new
product development?
YES!
So which users?
Late Adopters
Diffusion of Innovations (DOI)
Product Life Cycle & Adoption
Diffusion of
Innovation
Innovation
Adoption
59
Exercise
sara.jahanmir@neoma-bs.fr

Intro Innovation

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Intro Innovation

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What is your opinion about scientists?

What’s your opinion about scientists?

The nature of innovation

Linear models of innovation 3

Elon Musk: https://youtu.be/mh45igK4Esw

The propensity of a firm to introduce new products that:

(Low) Newness (High)

(Low) Newness (High)

"The Innovator's Dilemma" by Clayton Christensen:

Adoption categories: explains how innovations are taken up in a population

Enthusiasts Visionaries Pragmatists Conservatives Skeptics

Everett Rogers (1962, 1971, 1983, 1995, 2003)

The process of acceptance of an innovation over time

by the members of a social system.

Compatibility - The degree to which an innovation is

Observability – The degree to which the results are

Innovation = Invention x Commercialization

❖ Manufacturer develops the idea,

Users innovate because they have

Source: Eric von Hippel

Source: Eric von Hippel

Videos of user innovations

Source: Eric von Hippel

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