Global

Innovation

Science

Handbook

Praveen Gupta Editor

Brett E. Trusko, Ph.D., MBA Editor

Mc Graw Hill Education

New York Chicago San Francisco Athens London Madrid

Mexico City Milan New Delhi Singapore Sydney Toronto

Contents

Contributors xxiii Foreword xxv Acknowledgments xxvii Introduction xxix

Section 1 Preparing for Innovation

1 Strategy for Innovation Praveen Gupta and Brett E. Trusko 3 Basic Tenets of Business Success 3 Strategy Execution 4 Developing the Innovation Strategy 4 Reducing Risks of Investment in Innovation 6 Marketing Innovations 6 Launching the Innovation Initiative 7 Resources for Innovation 7 Organization Structure 7 Communicating the Innovation Message 8 Incentives and Controls 8 Culture and Change 9 Identifying Caps 10 Innovative Leadership 11 Making an Innovation Strategy Work 12 Leading Innovation with a Sense of Urgency 12 References 12

2 Creating Your Innovation Blueprint: Assessing Current Capabilities and Building a Roadmap to the Future Lisa Friedman and Herman Gyr 13 Two Key Innovation Challenges 14

Turning Chaos into Shared Strategy—Seeing the Future 14 Strategy into Action—Aligning the Key Drivers

of Innovation 14 Benefits of an Innovation Blueprint 15 Key Elements of an Innovation Blueprint 15

Business 16 Organization 16 STEP 17 Alignment 17 Adding Current and Future to the Blueprint 18 Three Drivers of Innovation 18

Using the Blueprint to Build the Innovation Capability of Your Enterprise 19

Flanning for the Future and Assessing Current Capabilities ... 20 Innovation Blueprint: External Environment 20

Extemal Environment—The True "Front End of Innovation" ... 20 Staying Connected to Your Customers 20 The External Environment Indicates the Kind

of Innovation Needed 20 Adding Industry Lifecycle to Your Blueprint 21 Lifecycle Curves 21 Lifecycle Curve Implications for Your Blueprint 22

V

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Assessing Current Capabilities—External Environment 22 Innovation Blueprint: Task 23 Task: Big Picture Strategy 23

Innovation Strategy—Gelting the Big Picture Right 23 Creating a Balanced Portfolio of Innovations 23 Innovation Strategy: Bottom-Up and Top-Down, Inside-Out

and Outside-In 23 Task: Creating an Integrated System for Turning Insight

into Innovations 24 Explore Opportunities 24 Generate Breakthrough Ideas 25 Optimize Value 25 Selecting and Funding the Best 26 Mobilizing for Results/Commercialization 26

Assessing Current Capabilities—Task 26 S—Structure 27

Innovation Architecture 27 Organization Alignment for Innovation 28

Assessing Current Capabilities—Structure 29 P—People 29

Informed Innovators 29 Capable Innovators 30 Innovators Everywhere 30 Talents and Skills for the Future 30 Innovation Champions 30 Collaborative Teams 30

Assessing Current Capabilities—People 31 Ei—Internal Environment 31 Assessing Current Capabilities—Internal Environment 32 Three Drivers: Leadership, Stakeholder Engagement, and Innovation

Support 32 Leadership 32

Assessing Current Capabilities—Leadership for Innovation 33 Stakeholder Engagement 33

Assessing Current Capabilities—Stakeholder Engagement 34 Innovation Support 34

Assessing Current Capabilities—Innovation Support 35 Conclusion 35 References 35

3 The Culture for Innovation Jack Hippie 37 What Is Culture? 37 Why Is Culture Important? 38 Does Your Organization Care about Its Culture? 39 How Do We Know and How Is It Measured? 40

Social Style 42 Problem-Solving Style 44

Understanding the Impact of Culture 46 How Does One Go About Changing Culture? 48 Summary 50 Bibliography 50

4 Leading Innovation: Ten Essential Roles for Harnessing the Creative Talent of Your Enterprise Lisa Friedman and Laszlo Gyorffy 51 Introduction 51 Playing the 10 Roles 51

1. Futurist 52 2. Direction Setter 53 3. Customer Advocate 54

Contents yjj

4. Architect 56 5. Venture Capitalist 59 6. Mentor 60 7. Barrier Buster 61 8. Networker 63 9. Culture Creator 64 10. Role Model 66

Conclusion 68 References 68

Section 2 General Concepts

5 Creating Creativity: Personal Creativity for Personal Productivity Arm N. Reeves 73 Introduction 73 What Is Personal Creativity? 73 How Does Personal Creativity Work? 74

Diverse Inputs/Inclusive Thinking 74 Context Articulation 75 Divergent Thinking and Convergent Thinking 76

Common Barriers to Effective Personal Creativity 77 Effective Strategies to Power Up Personal Creativity 79 References 82

6 The Creative Corporation Thomas N. Duening 83 Introduction 83 Defining Corporate Creativity 84 "Best Practices" in Corporate Creativity 86 Abstract Rules and Corporate Creativity 88 Effectuation and Corporate Creativity 90

The Bird in the Hand Principle 91 The Affordable Loss Principle 91 The Lemonade Principle 91 The Crazy Quilt Principle 92 The Pilot in the Plane Principle 92

Conclusion and Action Items 92 References 94

7 Innovation Neuroscience Hardware Praveen Gupta 97 Overview of Brain Anatomy 98 The Innovation Process in the Brain 100 Accelerating the Innovation Process in the Brain 103 Summary 103 References 104

8 Innovation and Neuroscience Ellen Di Resta 105 Introduction 105 Chapter Overview 106 Current Applications of Neuroscience 106

Neuromarketing and Neuroeconomics 106 Neuroesthetics 107

Potential Applications of Neuroscience to Innovation 107 The Genesis of New Ideas 107 Knowing When You've Got the Right Idea 109 Barriers to Innovative Thinking 111 We've Always Done It That Way 112

Applying Neuroscience Insights to Innovation 112 Innovation Process 112 Talent Selection for Innovation 114

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Developing Innovation Skills 116 Cultivating an Innovation Mind-Set 117 Creating an Environment for a Successful Innovation

Program 117 Conclusion 118 References 119

9 Biomimetics: Learning from Life Melissa Stern/ 121 3.8 Billion Years in the Making: An Introduction to Biomimetics .... 121 We Have the Technology: Bionics for the Body 123 We All Have the Technology: DIY Bionics for All 127 A City for All Seasons: Biomimetics in the Built Environment 130 Our Ever-Evolving Future: Possible Biomimetic Futures 136 Bibliography 137

10 Innovation Benchmarking Klaus Solberg Sailen 141 Introduction 141 Definitions 143 Forms of Benchmarking 144 Finding the Variables 146 Finding the Metrics and Choosing the Weight 148 The Process of Benchmarking 150 Finding the Data (or Benchmarking Intelligence) 153 National Innovation Systems 153 Benchmarking Challenges 156 Conclusion 157 References 157

11 Process, Practice, and Innovation Michael Grieves 159 Introduction 159 Distinction without a Difference 163 Process and Practice—Different Characteristics 163

Lean versus Innovative 163 Predictable versus Unpredictable 164 Input, Routine Driven versus Goal Seeking 165 Precise versus Fuzzy 166 Codeable/Calculable versus Arguable/Negotiable 166 Efficiency versus Effectiveness 167 Frictionless versus Friction 168 Optimize versus Satisfice 169 Autopilot versus Sense-Making 169 Training-Based versus Education-Based 170

Processes Derive from Practices 170 Mismatched Situations and Activities 171

Rote Practices 171 Bureaucratic Processes 171

Process and Practice—Different Information Requirements 171 Minimal Data versus Maximum Information 171

Summary 172 References 172

12 Ethnography Brett E. Trusko 173 Introduction 173 Need for Ethnography 173 Ethnography and Innovation 174 Ethnography Skills and Tools 175 Speeding Ethnographie Research 176 Institutionalizing Ethnographie Research 176 Summary 177 References 177

Contents jx

Section 3 Creativity Tools

13 Creativity Tools: Develop Creative Solutions to Problems and Opportunities H. James Harrington and Frank Voehl 181 Step 1: FindingOpportunities and Problems to Solve (Preparation) .... 182

Tool 1: The Quickscore Creativity Test 182 Tool 2: Kano Analysis 183 Tool 3: Nominal Group Technique 185 Tool 4: Synectics 186 Tool 5: Brainstorming or Operational Creativity 188 Tool 6: Six Thinking Hats 189

Step 2: Gathering and Reflecting on Information (Incubation) 190 Tool 7: Attribute Listing, Morphological Analysis, and Matrix

Analysis 190 Tool 8: Generating New Ideas with Storyboarding 191 Tool 9: Absence Thinking 193

Step 3: Opportunity Exploration (Insight) 193 Tool 10: Breakdown (Drilldown) Tree Diagram 193 Tool 11: Lotus Blossom 194

Step 4: Generating and Evaluating Ideas (Evaluation) 196 Tool 12: TRIZ Analysis 196 Tool 13: SCAMPER 197

Step 5: Implementation (Elaboration) 198 Tool 14: Mind Mapping 198 Tool 15: Affinity Diagram 198 Tool 16: Force Field Analysis Diagram 199

Summary 204 References 205

14 Creativity Education: A Catalyst for Organizational Prosperity Larry R. Thompson 207 Context: The Evolution of Creativity as a Business Imperative 209 Edward De Bono's Impact 210

The Six Thinking Hats® 210 The Six Thinking Hats Tool 211 Lateral Thinking 211

Daniel Pink's Impact 212 The Conceptual Age of the 21 st Century 212 The Case for Creativity or Why Right-Brainers

Will Rule the World 213 The Six Senses 213 The Compelling Case for Creativity at Work 215 Reinvigorating Our Long History of Creativity and

Innovation 216 What Does Creativity in Action Look Like? 216

General Motors Rises from the Ashes with an Identity Change 216

The Fundamentals: Preparing Our Children for Success in the Conceptual Age 216

Keeping Creativity Alive in Education 217 Reawakening Creativity in the Workplace 218 We Are All Creative 218 Bridging the Gap between Creativity and Commerce 219 The New Leadership—Blending Creativity with Business

Acumen 219 Ringling College Example: Preparing Tomorrow's Business

Leaders—A Design, Art, and Business (Whole Brain) Approach ... 219 The Ringling College Creativity Center (RC3)—Sharing What We've

Learned about Teaching Creativity 220

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Creativity Immersion—An Alchemical Process for Changine Hearts and Minds around Work 221

Overview: The Whole Brain Approach to Leaming 222 Learning Outcomes 222 Retreat Overview 222 An Orchestrated Experience 222 The Guided Artistic Journey 223 From Art to Business—Translating the Immersive

Experience 223 Cutting-Edge Creativity-Related Content 224 Business-to-Business Learning 224 Through the Eyes of Artists—A Running Documentary of the Retreat

Process 224 Embedding Creativity: The Post-Retreat Process 225

Example: A Manufacturing Firm Redefines Itself 225 What Does a Creative Leader Look Like? 225 Creative (Whole Brain) Leaders Are Organizational

and People-Focused 225 The Creative Individuais' and Leaders' Toolkit of Qualities,

Attitudes, and Behaviors 227 The Ongoing Journey 228 References 228

15 Unlocking Your Creativity Using Mind Mapping Richard B. Greene ... 229 What Is Mind Mapping? 229 Why Mind Mapping Promotes Creativity 230

Working with the Brain 231 Getting Started with Mind Mapping 233 The Main Word or Phrase 233 First Level Ideas 233 Second Level Ideas 234

Additional Levels 234 Proven Creative Uses for Mind Mapping 234

Studying 234 Presentations 235 Taking Notes 236 Brainstorming 236 Decision Making 236 Overcoming Writer's Block 238

Unlocking Creativity with Mind Maps 238 Beyond the Brainstorming—Benefits of Mind Mapping Throughout

a Project First Revision of the Mind Map 240 Organizing Logically 240 Assigning Responsibility 240 Scheduling J40 Tracking Tasks ^ Project Completion and Error Checking 241

Making Mind Mapping a Part of Everyday Life 241 Tips for Mind Mapping References

16 Social Networks Christopher S. Rollyson 245 How Social Technologies Transform Innovation 245

The Social Enchilada Economics and Markets

Examples of Social Network-Powered Innovation 'Y. ' c . 3M: Creating a Global Research Lab Campus with a Socia ^

Network

Contents xi

P&G: Using Social Networks to Scale Product Innovation .. . 250 State Farm: Engaging Generation Y/Z with Digital/Physical

Social Network 252 Fenland, Cambridgeshire: Social Network Integrates Fractured

Community 253 Social Network Innovation Models 254 Getting Started: Using Social Networks for Innovation 258

Focus on People 258 Use an Agile Approach 260 Lead with Sociality 261

Conclusion 262 References 263

17 Innovation Combination Methods David Conley 265 Problem Solving versus Innovation 265 More Detail on Defining Contradictions 266 Combining Methods 268 The Problem-Solving Path 269 Problem-Solving Methodologies 270

Plan-Do-Study-Act 271 Six Sigma 271 Lean (a.k.a. Toyota Production System) 271 Root Cause Analysis 272 Functional Analysis 272 Systems Engineering 272 Contradiction Analysis 273 Technically Focused Brainstorming 273

Methodology Merger 274 Case Studies 275

Operating Room Utilization Improvement—Six Sigma Case Study 275

Wireless Power System Improvement—System Innovation Case Study 277

Conclusion 280 References 281

18 Market Research in the Process of New Product Development Fiona Schweitzer 283 Introduction 283 Market Research 283

Definition of Market Research 283 Market Research in Innovation Management 284

Importance of Market Research for Successful Innovations 284

Market Research Process 286 Use of Market Research Methods in the Innovation Process 291

Systematization of the Market Research Methods 291 Summary 298 List of Abbreviations 298 References 299

19 Lead User Analysis Nikolaus Franke 303 User Involvement: Ford or von Hippel? 303 Lead Users 305

Who Are Lead Users? 305 Are Lead Users a Distinct "Species"? 305 What Do Lead Users Do? 306

The Lead User Method 306

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Phase 1: Getting Started 307 Phase 2: Identification of Major Needs and Trends 308 Phase 3: Identification of Lead Users 309 Phase 4: The Lead User Workshop 313

Variants of and Alternatives to the Lead User Method 315 Crowdsourcing 315 Toolkits for User Innovation and Design 316

References 317

Section 4 Idea Management

20 Managing Development of Innovation Ideas Cathie M. Currie ... 321 What Factors Limit the Acquisition and Development

of Viable Innovation Ideas? 321 Innovation Activity Disrupts at All Levels: From Employees

to Market 322 Thrashing or Formal Reliable Creative Process 322

Innovation Process Must Be Creative and Reliable 324 Afraid of Failure? 325 Fast-Track Innovation Development Pathways 326 Seeking Innovation Ideas 326

Areas of Potential Opportunity 327 Perspectives 327 Decisions 327 How Do We Form Innovative Ideas? 327

Does Everyone Innovate? 328 Conclusion 328 References 328

21 Quality of Ideas Brett E. Trusko and Praveen Gupta 331 Introduction 331 The Concept of Ideas 331 Conventional Suggestion Systems 332 Need for Ideas 332 Sources of Ideas 333 An Environment for Engagement 333 Experience and Energy Levels 333 Methods for Generating Ideas 333

Brainstorming 334 Thinking Innovatively 334 Online Collaboration 335

Evaluating Ideas 335 Emotional Evaluation 335 Value of an Idea 336 Priori tization 337

Excellence in Idea Management 337 Summary 338 References 338

22 Idea Evaluation and Management Brian Glassman and Abram Walton 339 Introduction 339 Overview of Idea Evaluation and Management 339

First and Final Screen 340 Common Problems 346 Gathering Evidence 347 Analysis 350

Summary 352 References 353

Contents xiii

Section 5 Methodologies

23 Types of Innovation Vern Burkhardt 359 Introduction 359 Symptoms 359 Process Innovation 362 Functional Innovation 363 Design Innovation 364 Product Innovation 366 Service Innovation 368 Business Model Innovation 370 Co-creation Innovation 372 Open Innovation 373

"Not Invented Here" versus "The Wheel Not Reinvented" ... 374 Conclusion 376 References 376

24 TRIZ: Theory of Solving Inventive Problems Ellen R. Domb 379 Problem Solving with TRIZ 381

TRIZ Tools for Problem Analysis 383 Function Analysis and Trimming 385 Zones of Conflict and Resources 386 System Operator, or the 9 Windows 389 Solving Problems by Eliminating Contradictions 390 Solving Problems Using the 76 Standard Solutions 394 Solving Problems Using "Effects" from Other Technologies ... 397

Trends of Evolution 398 Strategie Use of the Patterns of Evolution 402

Research and Changes in TRIZ 403 Bibliography 404 Appendix 1. The 40 Principles for Inventive Problem Solving 405

25 Brinnovation (Breakthrough Innovation) Praveen Gupta 407 Evolution of Innovation 407

Great Innovators 408 Knowledge Innovation 411 Institutionalizing Innovation 412

A New Framework for Innovation 412 An Innovation Model 415 Innovation Categories 417 The Breakthrough Innovation Process 419 The TEDOC Methodology 420 Innovative Idea Generation 422

Encouraging Innovation in an Organization 423 Defining Innovation 423

Summary 425 Bibliography 425

26 Crowdsourcing: Tapping into the Talent of the Crowd Juan Vicente Gartia Manjön 427 Introduction 427

The Renaissance of Amateurism 427 The Open Source Software Movement 427 Availability of New Tools of Production 428 Self-Organized Communities 428

The Crowdsourcing Definition 428 Characterization of Crowdsourcing Activities 431 Steps to Organize a Crowdsourcing Process 436 Examples, Uses, and Applications of Crowdsourcing 437

Creation of Content 437

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Distributed Work 438 Collective Intelligence and Distributed Knowledge 438 Crowdfunding 439 Open Innovation 439

Conclusion 440 References 440

27 Open Innovation Victor Schölten and Serdal Temel 443 Introduction 443 Networks and Innovation 443 Open Innovation: When a Firm's Borders Perish 444

From Traditional Innovation to Open Innovation 444 SMEs and Open Innovation 446

Open Innovation among SMEs in Emerging Countries 447 Innovation Programs in Turkey 448 Evidence from the Aegean Region 449 Results 450

Conclusion 455 References 455

28 Systematic Innovation Donald A. Coates 459 Introduction 459

Brief History of Systematic Innovation 460 Why We Need Systematic Innovation 463 Summary 465

Anatomy of Systematic Innovation for Product Development 465 Conclusion 472 References 472

29 Eureka! What Insight Is and How to Achieve It Andrea Meyer ... 475 Introduction 475 Myths about Insight 475

Dostoyevsky and the Complete and Whole Myth 476 Newton, Darwin, and the Single Trigger Myth 477 Technique #1: Emulating the Insightful 477

The Process of Insight 478 The Role of Experience in Insight 478 The Role of Recall and Adaptation 479 The Role of Curiosity, Questions, and Goals 481 Darwin's Competitor: Parallels and Differences 481 Insight Defined 482 Technique #2: Making the Creative Connection 483 How to Get More Insights 483 Technique #3: Using Questions to Find Insightful Answers ... 483 Technique #4: Indexing Ideas for Better Reminding 488 Technique #5: Adapting Partial Matches 492 Substitution in Partial Matches 492 Non-Obvious Matches 493

Insights in Action: Some Final Examples 494 Sydney Opera House 494 Feiice Frankel's Photographs 496 Dostoyevsky Revisited: Crime and Punishment 496 Putting It All Together: Hunt's Insight and Beyond 497 Exercise: Mulling over Hulls 497

Conclusion 498

30 Stage-Gate C. Anthony Di Benedetto 499 The Phased Review Process 499 Objectives of a Phased Review Process 499 Overview of the Phased Review Process 501

Contents XV

The Phases in Detail 502 Phase 1: Opportunity Identification 502 Phase 2: Idea Generation 503 Phase 3: Concept Evaluation 504 Phase 4: Development 505 Phase 5: Launch 505

Evaluative Tasks in the Phased Review Process 505 Radical Products and the Phased Review Process 507 Third-Generation Processes 508 Best Practices in Phased Review Processes 508 References 509

31 Design Innovation Jeremy Alexis 511 Why Design Innovation Matters: The Innovation Gap 511 The Balanced Breakthrough Model 512 The Four-Square Model for Design Innovation 513 Reframe the Problem 514

Work: at the Right Level of Abstraction 515 Focus on Activities Not Problems (or Technology) 516

Activity Models: The 5E's Framework 517 Activity Models: Customer Journey 519 Activity Models: Three LevelsofWhy 520 User Models: The Empathy Map 521

User Name 521 What Are They Tlmnking? 521 What Are They Feeling? 522 What Are They Saying? 522 What Are People Döing? 522 What Won't They Teil You? 522

"How Migbit We" Statements 522 Prototyping 523 References 525

32 Service Innovation: Introduction, Methodologies, and Key Findings Navneet Vidyarthi and Rajesh Tyagi 527 Introduction 527

Types of Service Innovations 527 Importance of Service Innovations 528

How Comparties Get Involved in Service Innovation 528 Characteristics of Service Innovation 528 Challenges in Service Innovation 529 Methodologies in Service Innovation 529 Measures of Service Innovation 530 Case Studies 531 Discussion 534 References 536

33 Social Innovation: Post-Fordist Globalization and New Horizons Billy R. Brocato and Thomas Schmidt 539 Introduction 539 Social Innovation 540 Social Capital and Social Innovation 540 Social Bonding, Social Bridging, Diversity, and Social Innovation ... 541 Social Media and the Innovator 's Dilemma 542 Why Social Innovation 544 The Long Tail, Social Media, and Innovation 544 Social Media and the Wisdom of Crowds 545 Conclusion 545 References 546

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34 Nonprofit Innovation: Rethinking Value Creation for the Social Sector Margaret Morgan Weichert 549 Introduction 549 Context for Not-for-Profit Innovation 549 The End Game: Profit versus Mission 551

Innovation Best Practices for Nonprofits: Insights from Business Innovators 553

Key Innovation Best Practices for Nonprofits 554 Drive to Make Meaningful Change 554 Cultivate Market Knowledge 554 Harness Technology, Networks, and Social Media 555 Use Data as an Innovation Tool 556 Collaborate to Drive Better Outcomes 556

Conclusion 557 References 558

35 Cross-Industry Cooperation as a Key Factor for Innovation joäo f. M. Ferreira, Cristina I. Fernandes, and Mario L. Raposo 559 Introduction 559 Literature Review 560

Cooperation for Innovation 560 Innovation in Industries 561

Methodology 562 Sample and Methods 562

Results 562 Company Profile 562 Business Cooperation and Innovation 564 Multivariate Analysis: Modes of Cooperation 567 Multivariate Analysis: Cooperation for Innovation 571 Multivariate Analysis: Factors and Obstacles to Innovation ... 572

Conclusion 575 References 576

Section 6 Measurements

36 The Innovation Radar and Enterprise Business System: Innovation in Five Nor die Countries and Beyond Jörn Bang Andersen and Robert C. Wolcott 581 Introduction 581 Innovation as a Discipline 581 Business Model Innovation Applied to Companies and Nations ... 582 Hypothesis and Research Question 583 Research Design 583

Tool: The Innovation Radar 583 The Pilot Project: InnoTools 586 Scaling the Pilot: Measured and Managed Innovation in 100 Nor die

Companies 587 Findings from the Nordic MMI Program:

Phase 12010-2011 588 Findings from the MMI Program: Phase II 2012 591

Innovation Radar Focus and Business Life Cycle 595 Container Shipping 595 Fanatical Support and Security 595

Incremental versus Radical Innovation 596 Ecosystems and Partnership Innovation 597 Distribution: BP Castrol and Hindustan Unilever 597 The Panama Canal II: Winning Because of Its Spare

Parts Network 598 B&O and Apple: Design for Aesthetics or Market Lead 598

Contents xvii

Lessens for Innovation Managers 599 Lessons for Policy Makers 599 Conclusion 600 References 600

37 Innovation Measures and Indices Brett E. Trusko and Praveen Gupta 603 Difficulty with Current Innovation Measures 603 State of Measures of Innovation 604 Measures of Innovation for Developing an Innovation Index 607 A Process for Developing Measures of Innovation 610

Factors to Consider 611 Return on Investment in Innovation 612 Most, Best, and Managed Innovative Firms 613 National and Global Measures and Indices of Innovation 613

Process-Based National Measures 613 Measures of Innovation: USA 614 Measures of Innovation: China 615 Measures of Innovation: Russia 615 Measures of Innovation: India 616 Measures of Innovation: European Union 617 European Union Innovation Scorecard Framework: Blocks (3),

Dimensions (8), and Indicators (25) 617 Measures of Innovation: Global Innovation Index 618

References 618

Section 7 Deployment

38 Inspiration for Innovation Heather McGowan and Ellen Di Resta 623 Introduction 623

Perspective: There Is a Place for Everyone 623 Inspiration, Motivation, and Assessment 623 What to Expect from This Chapter 623

Define Context and Expectations for Innovation 624 What Is Innovation? 624

Process of Innovation 627 What Type of Innovation Program Should Be

Established? 627 Process of Innovation 628

Motivational Framework 630 What Is Inspiration? 630 Motivational Drivers 630 DELI: Leveraging Life Interests in Vocational

Performance 631 Finding the Motivational and Inspirational Levers

for Formulation, Development, and Optimization 632 Revolutionary Innovation: Discovery and Formulation 632

Bringing Innovation to Life 633 Mapping Your Innovation Space 633 Innovation Process Implementation 633 Innovation Process and Drivers 636 Space and Structures That Enable Innovation 637

Tools and Resources to Inspire Innovation 639 Descriptive Tools for Mapping What Exists 639 Prescriptive Tools for Need Finding: Mining for Insights .... 639 Ideating Tools 640 Evaluation Tools: Assessing the Opportunity 641

Summary 641 References 642

xviii Contents

39 Developing an Innovation Strategy for a Growing Firm Rameshwar Dubey 643 What Is Strategy? 644

Strategie Intent 644 Mission Statement 644 Vision Statement 645

Sources of Firm Competencies 645 What Is Competitive Advantage? 645 Sources of Competitive Advantage 646

Efficiency 646 Quality 646 Innovation 646

Translating Competitive Advantage into Sustainable Competitive Advantage 646

What Firms Need to Do for Innovation 647 How to Build Systematic Innovation Capability 647

DNA of Systematic Innovation Capability 647 Capability of Competitors 648 Industry Dynamism 648 Exploiting Resources of Firm 648 Customer Responsiveness 649 How Innovation Can Be a Source of Competitive Advantage and

What Are the Antecedents of Innovation 650 Theoretical Discussion on Antecedents of Innovation 650 Theoretical Discussion on Innovation 651 Resolving Issues Related to Model Adoption 651

Which Antecedents 651 Theory on Model Classification 651

Methodology 651 ISM-Based Model 651 Findings of the Antecedents from Literature Review 652

Conclusions and Recommendations 655 Conclusions 655 Recommendations 655

References 657

40 Organization for Innovation Eduardo Armando and Eduardo Vasconcellos 659 Introduction—Reasons for Organizational Innovation

Boosters 659 Main Characteristics of the Structures for Innovation Compared

with Traditional Structures 660 Forms of Departmentalization That Stimulate Innovation 661

Structure by Projects 661 Matrix Structure 662 Cellular Structure 665 Specific Structure for New Ventures 666

Cases of Structures Organized for Innovation 667 ALPARGATAS 667 Construtora Norberto ODEBRECHT 668 EMBRAER 670

Conclusion 677 References 677

41 Journey to Innovation Excellence Andria Long 681 Discipline in Building the Right Foundation 681

Define What Innovation Is to Your Organization 681 Types of Innovation 682

Contents xix

Innovation Strategy Development 683 How Much Innovation You Need 683 What Is the Desired Type and Mix of Innovation?

Portfolio Mix 684 Where Will You Innovate? The Strategie Focus Areas 685

Portfolio Strategy and Management 686 Portfolio Management 687

Prioritization and Focus 689 Type 690 Another Type, But It's Not Innovation 690 Hurdles by Type 690 Organizational Capacity 690

People and Capabilities 690 Characteristics and Capabilities for Success

in Innovation 690 Experience Level Recommended for Platform and Disruptive

Innovation 691 Internal versus External Innovation Hiring 691 Strong Team and Multifunctional Involvement 692 Organizational Structure 692 Insulation and Funding 692 Transition Timing 692 Key to Transition Success 692

Process and Executional Excellence 693 Process Excellence 693 Speed of Decision Making—Impact of Layers

and Meetings 693 Openness to External Resources 693 Executional Excellence—Project Management 693 Project Managers—To Have or Not to Have 693

Culture of Innovation and Commitment 694 Continuous Learning and Applying: Learn Fast, Fail Fast ... 694 Patience and Acceptance of Risk and Failure 695 Risk Aversion 695 Accountability 695 Time to Think versus Do 695 Commitment 695

Reference 696

42 Culture of Innovation Maria B. Thompson and Nina Fazio 697 Introduction 697 Assess Impact of the Change 697

Motorola Technology Transition Framework Overview 697

Initiate 700 Customize 704 Fan Out 707 Institutionalize 710

Sponsorship 713 Communication 714 Project Management 716 Conclusion 717 References 717

43 Measuring for Innovation Helena Forsman and Serdal Temel 719 Introduction 719 Innovation and Business Success 720 Dimensions for Measuring Innovation 721

XX Contents

Indicators for Measuring Innovation 723 Dimension 1: Innovation Strategy 723 Dimension 2: Innovation Input 724 Dimension 3: Innovation Process 725 Dimension 4: Learning Process 728 Dimension 5: Innovation Outcome 729

Conclusion 730 References 731

44 Intellectual Property for Innovation Joseph T. Nabor and Steven G. Parmelee 735 Introduction 735

Trade Secrets 736 Trademarks 737 Patents 742 Copyrights 746

Conclusion 747

45 Product Launch C. Anthony Di Benedetto 751 Product Launch as an Academic Field of Study 751 Strategie Launch Decisions 751

Strategie and Tactical Launch Decisions 753 Tactical Launch Decisions 754 The Lean Launch 755 The Importance of Launch Timing 757 Product Launch by the New Venture 758 Summary 759 References 759

46 New Product Launch Fernando Almeida, Jose Monteiro, and Jose Santos ... 763 Abstract 763 Introduction 763 Portfolio Management 764 Launching Strategies 767

Launch Strategies: Meaning and Implications 767 Evaluation of Frameworks 767 Categories of Launch Strategies 770

The Financial Impact of New Products 770 The Role of IT Technologies 771

The Role of IT in Communication with the Market 772 The Role of IT in the Development of a Strategy for New Product

Launch 773 IT Usage and Variables 774

Strategies for Success 775 Assigning Dedicated Resources 775 Implementing a Scientific Launch Process 775 Investing in Collaboration Tools 776 Managing Customer Feedback 776 Defining Objectives and the Right Process 778 Working Closely with Lead Users 778 Education of Sales Staff 780 Involvement of the Company 780

Conclusions 780 References 781

47 Business Innovation Maturity Model C. Robert Carlson and Praveen Gupta 785 Using Capability Maturity Model 785 Business Innovation Maturity Model 786

Contents xxi

BIMM Development 787 Benefits of BIMM 787 The BIMM Architecture 787

Sporadic Innovations 787 Idea Innovations 788 Managed Innovations 788 Nurtured Innovations 790 Sustained Innovations 790 The BIMM Assessment Methodology 791

Guidelines for Using the BIMM Criteria 791 Scoring Guidelines 791

BIMM Assessor Qualifications 793 Assessor Personal Attributes 793 Assessor Expectations and Responsibilities 793 Assessor Responsibilities 793

Summary 794 References 794

Section 8 Gase Studies

48 Financial Innovation Michael Gorham and Siva Balasubramanian ... 797 What Is Financial Innovation? 797

Financial versus Nonfinancial Innovation 798 Deep History 798 Financial Innovation by Embedding Options Inside Existing

Financial Instruments 800 Merton Miller's Drivers of Financial Innovation 800 Does Financial Innovation Come in Waves? 801

Modeling Innovation Waves 804 What Do We Know about the Life Spans of Financial

Innovations? 804 How Successful Are Financial Innovations? 806 Competition, Protection, and Monopoly Outcomes 807

Liquidity-Driven Monopoly 808 How Important Are Process Innovations? 809 Who Regulates New Financial Products? 811 Is Financial Innovation Good or Bad? 811

The Credit Default Swap 811 The Collateralized Mortgage Obligation 812

A Gase Study or the Role of Innovation in Competition: David Beats Goliath via Aggressive Innovation 812

CBOT Had All the Advantages 812 The Golden Decade of Innovation: 1972 to 1982 813 Process Innovation: The Race toward Electronic Trading .... 816

References 817

49 Case Study: Technology Innovation within Government Suzanna Schmeelk 819 E-Government Movement across the Globe 819 The Global E-Government Movement 819 E-Government Innovation in the United States of America 820 E-Governance Frameworks 831 References 834

50 Case Study: Technology Innovation within Education Suzanna Schmeelk 837 Technology Innovation in Education 837

XXÜ Contents

Technology Innovation for Education Using Internet-Based Services 837

Technology Innovation for Education Using the Cloud 846 Technology Innovation for Education Using Smartphone

and Tablet Apps 847 Technology Innovation in Education Considering Influencing

Organizations 847 Conclusion 850 References 851

Index 853