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7/29/2019 Understanding Innovation Process
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The innovation management process
Evolving models of the innovation process
Can we manage innovation? Introducing the
concepts ofOrganizational Routines or
Capabilities
Specify the different phases of the innovation
process How context affects innovation
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First and second generation models
R&DDESIGN &
ENGINEERING
MANU-
FACTURINGMARKETING SALES
First generation (50s-60s): Technology push Linear model
MARKET
NEEDS
MARKETING
DEPT.
R&DMANU-
FACTURING
SALES
Second generation (mid 60s-70s): Demand pull
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Next generation model
marketing
R&D
Productdevelopment
Componentsmanufacture
Productmanufacture
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Managing complexity
Radical
NetworksR&D
Market
product
processe
sIntellectual
Capital
Increment
al
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Can we manage innovation?
The majority of failures are due to some
weakness in the way the innovation
process is managed.
Technical resources (people, equipment,
knowledge, money, etc.)
Capabilities in the organization to manage
them
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Figure 2.1 Simple representation of the innovation process
2005 Joe Tidd, John Bessant and Keith Pavitt
The innovation management process
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Searchinglooking for threats and opportunities for
change within and outside of the organisation.
Technological opportunity
Changing requirements on the part of the market
Selecting deciding (strategically from how the
enterprise can develop and taking into account risk) what
to respond to.
Flow of opportunities
Current technological competence
Fit with the current organizational competence Fit with how we want to change
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Implement turn potential ideas into a new product or
service, a change in process.
Acquiring to combine new and existing knowledge(available within and outside the organization) to offer
a solution to the problem
Executing to turn knowledge into a developed
innovation and a prepared market ready for finallaunch
Launching to manage the initial adoption
Sustaining to manage the long term use
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Learning to learn from progressing through this cycleso that they can build their knowledge base and canimprove the ways in which the process is managed.
Restart the cycle
Failure why?
Refine, improvement next generation Learning about technology, routines & organization
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Figure 2.1 Simple representation of the innovation process
2005 Joe Tidd, John Bessant and Keith Pavitt
The innovation management process
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Innovation is a risky process....but also amandatory one. Success depends of a variety
of: Internal factors
Good management
Core competencies
Clear innovation strategy
Right technology
External factors
Links with market and suppliers Learning from competitors
Institutional support: financing, human capital, etc
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Successful innovation
New products, processes and services account for
an increasing share of sales
Lower prices
Better-performing products
Better features for certain users (niche)
of resources devoted to the development of new
products go to unsuccessful projects
35% of products launched fail commercially