Theme 1

The Concept of Innovation

and Innovation Management

Managing Innovation

A few worlds about the course

An extensive library of additional case material to deepen your understanding of innovation and entrepreneurship

A wealth of multimedia resources to bring the real world into the classroom

A set of practical, interactive tools to aid the implementation of innovation and entrepreneurship

Outline

1. Innovation – what it is and why does it matters

2. Models of innovation

3. Innovation as a management process

Innovation – what is and why does it matters

innovation is …

• new stuff

• that adds value

• for various stakeholders

• can be monetized

• creates a competitive advantage

• and is sustainable

• until the advantage erodes

Innovation – what is and why does it matters

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)

Innovation – what is and why does it matters

Innovative companies are more…

…Adaptable

• Flexible strategy, structure, culture

…Competitive

• Better processes, services,

business models

Innovation – what is and why does it matters

Innovation – what is and why does it matters

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”

Innovation – what is and why does it matters

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 Industry

Technoology

Market Status Quo

Innovation – what is and why does it matters

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

Innovation – what is and why does it matters

Models of innovation

Linear Models

1950/60s – Technology Push

Manufacturing MarketingResearch &

Development

1970s – Market Pull

Marketing ManufacturingResearch &

Development

Models of innovation

1980s

Simultaneous Coupling Model

Marketing

Manufacturing

Research &

Development

Models of innovation

Interactive Model

Models of innovation

Models of innovation

The chronological development of models of innovation

Innovation as a management process

Innovation management:

The process of creating and implementing abusiness design surrounding a creativeidea, with the goal of transforming aninvention into an innovation, andultimately to achieving sustainedcompetitive advantage, leading to growthand profit, in the marketplace.

Innovation as a management process