Innovation Management for BU syllabus
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Transcript of Innovation Management for BU syllabus
INNOVATION MANAGEMENT
CHETAN T.R
Module 1
• Concept of Innovation • Historic Perspective• Types of Innovation• Innovation Process• Macroeconomic view of
innovation • Approaches to innovations• Assumptions & Barriers to
Innovation• Innovation Sources
Concept of Innovation“Technological innovations are defined
as new products and processes and major technological modifications to products and processes. An innovation is considered performed if it is introduced to the market (product innovation) or implemented in the production process (process innovation). Innovation includes many research, technological, organizational, financial and commercial activities.
WHAT IS INNOVATION?
• Invention• Technology• Innovation• Creating new or improved products, processes
and services• Knowledge and learning• Uncertainty
Schumpeter’s distinction between ”Invention” and ”innovation”
• An ’invention’ is an idea, a sketch or model for a new or improved device, product, process or system. It has not yet entered to economic system, and most inventions never do so.
• An ’innovation’ is accomplished only with the first commercial transaction involving the new product, process, system or device. It is part of the economic system.
Historic Retrospective
Popular View of Science
Dimensions of Innovation
– Product innovation: changes in the things (products or services) which an organization offers
– Process innovation: changes in the ways in which they are created an delivered
– Position innovation: changes in the context in which the product or services are introduced
– Paradigm innovation: changes in the underlying mental modes which frame what an organization does
the ‘4Ps’ of innovation
Oslo Manual• Product innovation
– A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics.
• Process innovation– A new or significantly improved production or delivery method. This
includes significant changes in techniques, equipment and/or software.
• Marketing innovation– A new marketing method involving significant changes in product design
or packaging, product placement, product promotion or pricing.
• Organisational innovation– A new organisational method in business practices, workplace
organisation or external relations.
Table A typology of innovations
Figure Overview of the innovation process
Stage-gate processIDEA Gate 1
Idea screening
Stage 1Preliminary evaluation
Gate 2Detailed evaluation
Stage 2Product definition
Gate 3Decision to develop
Stage 3Development
Gate 4Decision to test
Stage 4Testing
Gate 5Decision to commercialize
Stage 5Commercialization EVALUATION
Macroeconomic view of Innovation
Figure 1.7 Interactive model of innovationSource: Adapted from R. Rothwell and W. Zegveld (1985) Reindustrialisation and Technology, Longman, London.