Defining Innovation for Business Strategy

Embed Size (px)


Slides from the course on innovation in entrepreneurship.

Text of Defining Innovation for Business Strategy

  • 1The Innovation LandscapeA (very) Short Course

    Some Basic Perspectivesto Help Interpret Innovation Ideas

    Innovation as a Concept Its a Process with Identifiable Steps People play Roles in the Process Its studied by many Disciplines Its part of many Frameworks It can be Systematically Modeled It produces Results and Added Value

  • 2What Innovation is Not Artistic Creativity Invention The Bright Idea Scientific Discovery Problem-Solving Simple Incremental Improvement

    Innovation at Different Levels Individual - creative skills & ideas Team - problem-solving Large Unit - innovation roles defined Organization - process supported Industry - new technology Societal/Marketplace - diffusion

  • 33 Views ofInnovation as a Process

    New Product Success Factors Innovation as New Product Development Innovation as New Technology Innovation as Management Improvement

    New Product Development as Innovation

    Strategic planning Allocate resources to support the innovation Generate a product concept Test its technical feasibility Develop and refine the product Prepare the product for manufacture Full-scale production of the product Place the product in the marketplace Support problem-solving and improvement

  • 4New Technologyas an Innovation Trigger

    Recognize a breakthrough technology or recognize a user need Formulate an application idea Resolve any technology problems Translate idea into a solution Develop and refine the solution See the solution adopted by users

    Management Practiceas an Innovation

    Observe needs and opportunities from within an organization

    Generate an idea for addressing the need or opportunity.

    Test the idea for feasibility Refine the idea for acceptability Sell the idea to users and employees

  • 5Generic Process Steps in an Innovation

    Scanning Recognition Ideation Concept

    Development Prototyping Testing & Evaluation

    Production Positioning and

    Selling Adoption and

    Diffusion Support and

    Refinement Re-Creation

    Innovations Role Players Spotter Inventor Tester Champion Gatekeeper

    Process Manager

    Sponsor Protector Seller

  • 6Innovation Diffusion(as defined by Everett Rogers)

    The process by which an innovation is communicated through certain channels over time among members of a social system.

    Diffusion is the process by which a new idea or product is accepted by the market.

    The rate of diffusion is the speed that the new idea spreads from one consumer to the next.

    Innovation AdoptionCycle

    Innovators EarlyAdoptersEarly MajorityLate Majority Laggards

    Techies:Try it!

    Pragmatists:Stick with the herd! Conservatives:

    Hold on!

    Skeptics:No way!

    Visionaries:Get ahead of the herd!

  • 7Managing Innovation Value Intellectual Property Management generate

    more intellectual properties; focus on short-term returns of patent licensing.

    Intellectual Asset Management focus on broader intellectual assets; assemble both unprotected and protected assets.

    Intellectual Capital Management harness the hidden value of an innovation; deploy intellectual capital toward the firms vision

    Acting like an Innovator[after Leonardo Da Vincis 7 Principles: Gelb]

    Quest for continuous learning Be willing to learn from mistakes Ability to scan for opportunity Willingness to embrace ambiguity Balancing right and left brain viewpoints Cultivating a style to express your ideas Recognition of systems relationships

  • 8Innovation Landscape Summary Understanding basic innovation vocabulary and

    concepts will help you navigate the course material. Exploring the textbooks index will build your

    innovation vocabulary. Three basic forms of innovationNew Products,

    New Technologies, and New Management Processes will comprise the range of innovation activities in an organization.

    Managing these processes is what innovation management is all about.