Chapter 5:

no v ati o n
In
Man ag e m e n t THE INNOVATION
B 1 0 2 0 2
W B PROCESS
Innovation
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Lesson Outlines
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5.1 Process Considerations

5.2 Process Models
Innovation
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5.1 Process Considerations
Manageme
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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
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Type of Innovation
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Incremental Innovation

Radical Innovation

Modular Innovation

Architectural Innovation
Innovation
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Importance of Innovation
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 Innovation = Invention +
Implementation/Commercialization.
 Management must perceive the
innovation as adding value to the
bottom line.
 Should answer “Why we need to
innovate?”
 Timing and the Expected
Innovation
Manageme
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Time for Completion
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 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.
Innovation
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Sources of Innovation
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Unexpected

Industry market
Incongruities Process Needs
and structures

New technology
Demographic Changes in
and scientific
changes public perception
findings
Innovation
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The Innovation Moment
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 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.
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Organizational Infrastructure
Manageme
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Vision

Mission

Objectives

Strategy

Structure
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Organizational Resources
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intellectual access to capability

property information

time customers suppliers

plant and financial

equipment reserves
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The Number of Unknowns
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Unknowns

technology market
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5.2 Process Models
Manageme
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 Roberts and Frohman

 Quinn
 Van de Ven
 Cooper
Innovation
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Roberts and Frohman
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i. Recognition of the opportunity

ii. Idea formulation
iii. Problem solving
iv. Prototype solution
v. Commercial development
vi. Technology utilization and/or
diffusion
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Roberts and Frohman
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 may fit an organization that is directed

top down
 stops after technology utilization.
 do not meet the definition of innovation
= invention +
implementation/commercialization
 a rational process assumes a stable
economic and competitive system, but
these systems are dynamic.
Innovation
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Quinn
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 refers the innovation process as

controlled chaos.
 Focus on the mental attitude of the
independent innovator and the
restrictions placed on the corporate
innovator.
Innovation
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Quinn
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Two perspectives of innovation :

Garage innovators
 the independent innovators who
begin in the kitchen or garage or
the attic.
Organizational/ corporate innovators
 the innovators working in a
corporate bureaucracy.
Innovation
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Quinn
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Characteristic of independent innovators:

 Perceive probabilities much higher than others
do
 Can live with frustration, ambiguities, and
setbacks
 Avoid early planning
 Use sweat capital—time is not important
 Beg, borrow, and steal—such as by taking a
temporary unauthorized loan
 Disregard formal planning tools
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Quinn
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Organizational Innovators:
 operate in two different areas:
1. those who work on ideas from the
bottom up
2. those who work on innovations
directed from the top down.
Innovation
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Quinn
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Barriers for Organization Innovator

1. Top management isolation
2. Intolerance of fanatics
3. Short time horizon
4. Assessment of all overhead charges
5. Too much rationalism
6. Excessive bureaucracy
7. Inappropriate incentives
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Van de Ven
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Proposed 3 periods in the innovation

process:
 Initiation
 Development Period
 Implementation/Termination Period
Innovation
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Van de Ven
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Initiation
 time of churning ideas and
attempting to develop them into a
workable concept.
Innovation
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Van de Ven
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Commonalties occur in the initiation period:

 The process has a gestation period that may
last several years.
 Some internal or external trigger usually
shocks the individual or the organization into
recognizing some significant opportunity or
dissatisfaction.
 Plans are developed and submitted to those
who control the resources.
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Van de Ven
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Development Period
i. The initial idea proliferates into many
ideas and activities (divergent, parallel,
and convergent paths).
ii. Setbacks and mistakes are part of the
process.
iii. Changing criteria for success create
additional problems between the doers
and the resource controllers.
Innovation
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Van de Ven
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Development Period (cont.)

iv. The lack of full-time personnel
assignments results in experiences
that range from euphoria to pain.
v. Major problems usually require
resolution by managers or by external
sources funding the program.
Innovation
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Van de Ven
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Development Period (cont.)

v. Innovation units develop relationships
with other organizational units.
vi. Innovators often involved in activities
with competitors, suppliers, and
government agencies to create a
supportive infrastructure for
implementation.
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Van de Ven
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Implementation/Termination Period
 Innovations stop when they are
implemented or when the flow of
resources has been limited in such a
way that prevents continuing the
activities.
 The success or failure is acknowledged
and generally affects the careers of the
innovation participants.
Innovation
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Cooper
Manageme
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 Introduce the stage-gate

system for moving product
innovation to the marketplace
more rapidly.
Innovation
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Cooper
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 Stage gate
 a decision point on whether a project
is proceeding as planned and a go,
no-go or hold decision is made.
 intended to identify one or more
essential breakthroughs that make
continuation of the project feasible.
Innovation
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Cooper
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Innovation
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Cooper
Manageme
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 Stage 0 - Discovery:
Activities designed to discover
opportunities and to generate new
product ideas.
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Cooper
Manageme
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 Stage 1 - Scoping:
A quick and inexpensive assessment
of the technical merits of the project
and its market prospects.
Innovation
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Cooper
Manageme
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 Stage 2 - Build Business Case:

This is the critical homework stage -
the one that makes or breaks the
project. Technical, marketing and
business feasibility are accessed
resulting in a business case which has
three main components: product and
project definition; project justification;
and project plan.
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Cooper
Manageme
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 Stage 3 - Development:
Plans are translated into concrete
deliverables. The actual design and
development of the new product
occurs, the manufacturing or
operations plan is mapped out, the
marketing launch and operating plans
are developed, and the test plans for
the next stage are defined.
Innovation
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Cooper
Manageme
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 Stage 4 - Testing and Validation:

The purpose of this stage is to provide
validation of the entire project: the
product itself, the
production/manufacturing process,
customer acceptance, and the
economics of the project.
Innovation
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Cooper
Manageme
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 Stage 5 - Launch:
Full commercialization of the product -
the beginning of full production and
commercial launch.
 Models of the Innovation Process
Innovation
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Manageme
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Technology Push

Basic Design &

Science Engineering
Manufacturing Marketing Sales

Driven by development of science & technology

 Models of the Innovation Process
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Manageme
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Demand Pull

Market Need Development Manufacturing Sales

Driven by market requirement or demand

 Models of the Innovation Process
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Coupling

New Need of society & the marketplace

Need

Idea Research, Prototype Manufacturing Marketing

Generation design & production & Sales Marketplace
development

New State of the art in technology and production

Technology

Driven by market requirement or demand

Innovation
Models of the Innovation Process
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Integrated
New product development process
Marketing

Research & Development

Product Development

Product Engineering

Part Manufacture (supplier)

Manufacture

Marketing Joint group meetings (engineers/managers) Launch