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Session 1 - Defining Innovation
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Marketing, IT & Innovation
Marcos LIMA, PhD
Session 01: Introduction to Innovation
Management
Welcome to Marketing, IT & Innovation
The Spirit of Innovation
This Week’s Topics (1/2)
Part 1: Course Introduction
Lecturer Background and Research Interests
Expectations
Scope of the Course
Course Methodology / Sources / Evaluation
This Week’s Topics (2/2)
Part 2: Introduction to Innovation Management
What is Innovation and Why it Matters
Innovation as an Integrated Business Process
The Innovative Organization: Understanding Knowledge Management
Marketing, IT and Innovation
How are these fields related?
Marketing/Service
Development
TourismIndustry
Innovation
IT
Knowledge Management
Customer Relationship Management
Scope of This Course
Session 1(March 4th) INTRODUCTION to Innovation Management
Sessions 3 & 5 (Mar. 11 / 18th) The Innovative Organization
and Knowledge Management Culture Session 7 (Mar. 25th)
SEARCHING the Organizational Environment, Selecting the Strategy, and implementing the Process
Session 9 (April 8th) Mid-Term Quiz + Discussion
SearchENVIRONMENT
SelectSTRATEGY
ImplementPROCESS
Capture-ValueCULTURE
Part 1
Course Introduction
Lecturer Background& Research Interests
As a business executive / consultant
1995 97 99 01 03 05 07 09
MarketingInnovation + Product / Service Development Knowledge Management
Lecturer Background& Research Interests
As a student, teacher / researcher
1995 97 99 01 03 05 07 09
MarketingInnovation + Product / Service Development Knowledge Management
Bac +5
Bac +7
Bac +10
My Expectations
DREAM: buy the textbook and read the chapters NICE:surf the internet for related topics MUST: read the articles MUST: listen to the podcasts
You should also be… PARTICIPATIVE ASSIDUOUS & ON TIME CURIOUS
Your first group assignment:Discuss Your Expectations
A good course…
should be…
should have…
should NOT be…
should NOT have…
SHOULD…
SHOULD NOT…
Course Methodology
Basic Pedagogical Principle:Meaningful Learning
INTERACTION
REFLECTIONCOLLABORATION
Authentic ProblemEnvironment
Course Methodology
Two Parts
TO: Theory-Oriented• Instructor-centered learning• Preparation: read the textbook chapters and
article assigned the week before
PO: Practice-Oriented• Student-centered learning• Article Discussions:
Shared Synthesis
Evaluation
MCQ/Essay Evaluation 35% Individual quiz on Innovation, April 8th
Case Study 65% Group work on CRM, April 8th & 25th
Main Sources
Books Tidd & Bessant, “Managing Innovation: Integrating
Technological, Market & Organizational Change”, Wiley 2009 Trott, “Innovation Management & New Product Development”,
Prentice Hall, 2008 See syllabus for other sources
Articles Several sources
To complement your learning…
Selected Podcasts and bookchapters on classtopics
Theoretical LecturesPodcasts (Voluntary
presentation Class +1)Textbook***
Sources
Course Overview & Introduction
Disruptiv e Innov ation TIDD Ch 01, 02, 03TROTT Ch 01
MANAGING the Innovative Organization
Building Innov ation Radar TIDD Ch 12 / TROTT Ch 03, 06
MANAGING the Innovative Organization
Fiv e Traits of Innov ativ e Companies TIDD Ch 12 / TROTT Ch 03, 06
SEARCHING the organizational ENVIRONMENT
Innov ation at Procter & Gamble TIDD Ch 05 / 06SMITH Ch 05
SELECTING the Innovation STRATEGY
From Me-Too to New to the World TIDD Ch 07 / 08TROTT Ch 11
IMPLEMENTING the Innovation PROCESS
Transformativ e Innov ation TIDD Ch 09 / 10SMITH Ch 6
Strategic Marketing & Innovation
n/aTROTT Ch 12, 14; KOTLER Ch 02,12,13
Questions?
Part 2
Overview of the Innovation Process
Preliminary Quotes
Niccolo MACHIAVELLI “There is nothing more difficult to take
in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things”
The Prince, 1532
Preliminary Quotes
???? “Constant revolutionizing of
production, uninterrupted disturbance of all social conditions, everlasting uncertainty… all old established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries … whose products are consumed not only at home but in every quarter of the globe”.
KARL MARX Communist Manifesto, 1848
What is Innovation?
Let’s brainstorm!
What is Innovation?
Video Interview: Strategyn
What is Innovation?
Which of these is NOT an innovation? Why?
a) Nintendo Wii b) Banana Peeler c) Apple’s iPhone d) Self-Service
What is Innovation?
Is this an Innovation or an Invention?
A Few Definitions
Innovation is… “the process of turning opportunity into new
ideas and of putting these into widely used practice” (Tidd & Bessant, 2009)
“the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product[/service]” (Trott, 2008)
“not just the conception of a new idea, nor the invention of a new device, nor the development of a new market. The process is all these things acting in an integrated fashion” (Myers & Marquis, 1969)
A Few Questions
Is an unsuccessful new product an innovation?
Is the successful introduction of an old product in a new market an innovation?
Does all innovation involve new technology?
Xerox created the first computer with a Graphic User Interface. Steve Jobs used it to create the first Mac. Who was the innovator?
A Visual Definition
These two variables explain the critical
role of MARKETING in the innovation process
Recommended Reading
DRUCKER, The Discipline of Innovation
Why Innovation Matters
Innovative companies are more… …Adaptable
• Flexible strategy, structure, culture
…Competitive• Better processes, services,
business models BusinessWeek’s Most Innovative Companeis (2006)
Innovative in Different Ways
BusinessWeek’s Most Innovative Companeis (2006)
Innovative Chief
Executive Scientificfreedom ofemployees
Use of external tech
sources
Design
Speed of product
development
Close cooperation w/ suppliers
Innovation’s Economic Relevance
Nikolai Kondratieff / Joseph Schumpeter “virtually all of the economic growth that has
occurred since the eighteenth century is ultimately attributable to innovation”
Schumpeter’s “Creative Destruction”
Innovate or die Out of the 1957 Forbes 500, only 74 remained in 1997 Of the top 12 companies which made up the Dow Jones
index in 1900 only one (GE) survives
Change is the only constant… From toilet paper in 1800s to…
From steel tubes in 1870s to…
From mining in old Prussia to…
Creative Destruction in Action
Why Innovation Matters
Video Lecture – Why Innovation is So Necessary
Types of Innovation
Incremental What we already do,
but better
Radical New to the world
Types of Innovation
Incremental What we already do,
but better
Sustaining Rules of the game
remain the same
Radical New to the world
Disruptive Game Changer for
Market or IndustryTrue or false?
a) Radical innovation is more strategic than incremental innovation
b) Not all radical innovations are disruptive
c) All disruptive innovations increase the innovator’s competitiveness
d) Incremental innovations cannot be disruptive
e) Sustaining innovations cannot be radical
Market Status Quo
Technology
Types of Innovation
Product / Service Innovation Innovate in WHAT we do
Process Innovation Innovate in HOW we do it
Paradigm / Business Model Innovation Innovate in HOW we make money
Position Innovation Innovate in marketing mix and strategy
WHERE, WHO, HOW MUCH
Types of Innovation
Tidd’s 4Ps Can you find
at leastone exampleof each typeof innovation?
Degrees of Innovation: Products
SustainingSustaining Disruptive Disruptive
Doing what we do, Doing what we do, but better/differentbut better/different
New to the worldNew to the world
Rules of the gameremain the same
Game Changer forMarket or Industry
IncrementalIncremental
RadicalRadical
New to the FirmNew to the Firm
Degrees of Innovation: Services
SustainingSustaining Disruptive Disruptive
Doing what we do, Doing what we do, but better/differentbut better/different
New to the worldNew to the world
Rules of the gameremain the same
Game Changer forMarket or Industry
IncrementalIncremental
RadicalRadical
New to the FirmNew to the Firm
Evolution of Innovation Models
Linear Models
Manufacturing MarketingResearch &
Development
Marketing ManufacturingResearch &
Development
1950/60s – Technology Push1950/60s – Technology Push
1970s – Market Pull1970s – Market Pull
Evolution of Innovation Models
A Case for Market-Pull
Evolution of Innovation Models
Simultaneous Coupling Model
Marketing
Manufacturing
Research &Development
1980s1980s
Needs in society
and the marketplace
Latest in science & technology
Advances in society
Evolution of Innovation Models
Interactive Model
R&D Manufacturing MarketingIdeaCommercial
Product
MarketPull
TechnologyPush1990s
Evolution of Innovation Models
Open Innovation Model Emphasis on Business Model innovation as driver
2000s2000s
Innovation as an Integrated Process
Source: Tidd & Bessant, 2009
Innovation as an Integrated Process
Source: Tidd & Bessant, 2009
Innovation as an Integrated Process
Source: Tidd & Bessant, 2009
Innovation as an Integrated Process
Video: Tidd & Bessant on The Innovation Process
Innovation as an Integrated Process
ImplementPROCESS Value-Capture
CULTURE
Search int./ext.ENVIRONMENT
Select STRATEGY
Recommended Reading
TIDD, 2009 Chapters 1,2,3
TROTT, 2008 Chapter 1
Articles Drucker
