Chapter 5

THE INNOVATION
PROCESS
Topic Outline
5.1 Process Considerations

5.2 Process Models
Innovation Management All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2015 1– 3
5.1 Process Considerations
Importance Timing and

Type of the Expected Sources
of the
Innovation Time for of Innovation
Innovation
Completion
The
Organizational Organizational The Number
Innovation
Infrastructure Resources of Unknowns
Moment

Type of Innovation

Importance of Innovation
 Management must perceive the innovation as

adding value to the bottom line.
 Should answer “Why we need to innovate?”

Timing and the Expected
Time for Completion
 requires consideration of the amount of change

that the innovation creates.
 Too early means the market may not be ready
to accept the innovation.
 Too late may give the competition an
opportunity to gain a greater market share.

Sources of Innovation

The Innovation Moment
 Why did someone think of an idea at some

specific moment in time and go on to pursue it?
 organizations struggle with finding ways to
motivate people to become innovators.

Organizational Infrastructure
Vision
Vision
Mission
Mission
Objectives
Objectives
Strategy
Strategy
Structure
Structure
Organizational Resources
intellectual access to capability

property information
time customers suppliers
plant and people financial

equipment reserves

The Number of Unknowns
Unknowns
technology market

5.2 Process Models
 Rothwell
 Roberts & Frohman
 Van de Ven
 Cooper

Rothwell’s Models
 Rothwell (1994) identified five (5) model in the

process of innovation
– Technology push
– Demand pull
– Coupling
– Integrated
– Network

Technology Push
 the traditional perspective on the process of innovation.

 the research-led version
 features of this model is that it is driven by
developments in science and technology.
 It assumes that more technology, brought about by
additional expenditure on R&D, will lead inexorably to
more innovation.

Technology Push
 the process is entirely linear and sequential, each stage

following on from the completion of the previous one.
 The model virtually ignores the marketplace, which is
portrayed as being passive and simply taking what
technology has to offer.
 The model is naive as far as the process itself is
concerned. We are told very little about the nature of the
process.
 Example: the pharmaceutical industry.

Demand Pull
 1960s - 1970s
 the role of the market is central.
 According to Rothwell (1994), the move to a more
market-centred type of innovation process reflected the
maturing of many technology-based industries and a
growing realisation that consumer requirements were
becoming more sophisticated.
Demand Pull
 This is a variant on the generic model, if one sees

consumer needs as the source of new ideas that lead to
innovation.
 This model of the innovation process is appropriate for
mature technologies/industries where firms' innovation
effort is devoted to minor improvements that are better
at meeting consumers' requirements.

Coupling

Coupling
 A crucial difference between this model and the earlier

ones is the presence of "feedback loops".
 The lines of communication between the various functions
carry a two-way traffic. No longer can functions operate
on an "over the wall" basis, forgetting about the process
once their immediate tasks have been completed.
 show a series of distinct functions or stages, but they are
interacting and interdependent.
 Each phase is also linked or coupled to the marketplace
and the state of technology.

Integrated
 The 1980s were characterised by powerful forces for

change.
 Developments in technology, both in the computing and
the communications fields, led to the introduction of IT-
based manufacturing systems that shortened product
life cycles.
 In parallel with changes in manufacturing technology
came new ideas about manufacturing management.
– just-in-time production and set-up reduction,
concurrent or parallel development.

Integrated
New product development process
Marketing
Research and development
Product development
Production engineering
Parts manufacturing (suppliers)
Manufacture
Joint group meetings (engineers/managers)
Marketing Launch
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Innovation Management
Integrated
 Japanese companies rely on project teams that

integrate the various functions.
 Under such arrangements the functions are brought into
the new product development process from the start,
and joint group meetings ensure that issues such as
manufacturability are considered early in the process
rather than near the end.
 Team-based new product development therefore
represents a much more integrated process.

Network
 1990s
 The advent of what Rothwell (1994) describes as a "fifth-
generation" innovation process.
 reflects the way in which some organisations increasingly
rely not only on their own internal resources for
innovation, but instead draw on external resources, either
for the development of major sub-systems and
components or to undertake specific phases of the
innovation process.
 achieved through alliances, agreements and contracts
with third-party organisations.

Network
 reflects continuing developments in computing and

communications which have facilitated information
transfer and outsourcing.
 The resulting vertical disintegration has led to
organisations ceasing certain activities such as research
and some forms of development, preferring instead to buy
them in as and when needed.
 Companies that utilize the network model of innovation
increasingly take on the role of systems integrator where
they manage the innovation process and the integration
of the development activities carried out by partners.
Network
Example:
Apple's role in
developing the iPod.

The Roberts and Frohman Model
i. Recognition of the opportunity
ii. Idea formulation
iii. Problem solving
iv. Prototype solution
v. Commercial development
vi. Technology utilization and/or diffusion

Van de Ven
Proposed 3 periods in the innovation

process:
– Period 1: Initiation Process
– Period 2: Development
– Period 3: Implementation/Termination

Van de Ven
Period 1: Initiation Process

 time of churning ideas and attempting to
develop them into a workable concept.

Van de Ven
– Period 2: Development
• The initial idea proliferates into many ideas
and activities (divergent, parallel, and
convergent paths).
• Setbacks and mistakes are part of the
process.
• Changing criteria for success create
additional problems between the doers and
the resource controllers.
Van de Ven
– Period 3: Implementation/Termination
 Innovations stop when they are implemented or
when the flow of resources has been limited in such
a way that prevents continuing the activities.
 It is a complex process of integrating resources and
infrastructures to meet some predetermined
requirements.

The Cooper Model
Stage-Gate® System

The Cooper Model

The Cooper Model

Summary
Innovation Process consideration include:

•type; the importance; timing & expected time for
completion, sources; the moment; organizational
infrastructure; resources & the number of unknowns
Four models in the innovation process:
•Rothwell, Roberts and Frohman, Van de Ven, & Cooper


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THE INNOVATION

5.1 Process Considerations

Innovation Management All Rights Reserved

Importance Timing and

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

 Management must perceive the innovation as

Innovation Management All Rights Reserved

 requires consideration of the amount of change

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

 Why did someone think of an idea at some

Innovation Management All Rights Reserved

intellectual access to capability

time customers suppliers

plant and people financial

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

 Rothwell (1994) identified five (5) model in the

Innovation Management All Rights Reserved

 the traditional perspective on the process of innovation.

Innovation Management All Rights Reserved

 the process is entirely linear and sequential, each stage

Innovation Management All Rights Reserved

 This is a variant on the generic model, if one sees

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

 A crucial difference between this model and the earlier

Innovation Management All Rights Reserved

 The 1980s were characterised by powerful forces for

Innovation Management All Rights Reserved

Research and development

Parts manufacturing (suppliers)

Joint group meetings (engineers/managers)

 Japanese companies rely on project teams that

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

 reflects continuing developments in computing and

Innovation Management All Rights Reserved

i. Recognition of the opportunity

ii. Idea formulation

iii. Problem solving

iv. Prototype solution

vi. Technology utilization and/or diffusion

Proposed 3 periods in the innovation

Innovation Management All Rights Reserved

Period 1: Initiation Process

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Process consideration include:

Innovation Management All Rights Reserved

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