An extensive library of additional case material to deepen your understanding 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
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
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
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.
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