MIP Summary H1 - Samenvatting H1 - Managing Innovation: Integrating Technological Market and Organizational Change PDF

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Managing Innovation ProcessesSummaryChapter 1: Innovation – What it is and why it matters1. IntroductionInnovation is driven by the ability to see connections, to spot opportunities and to take advantage of them. It is not only about opening new markets, it can also offer new ways of serving establi...

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Managing Innovation Processes Summary Chapter 1: Innovation – What it is and why it matters 1.1. Introduction Innovation is driven by the ability to see connections, to spot opportunities and to take advantage of them. It is not only about opening new markets, it can also offer new ways of serving established and mature ones. Innovation is about new technology, enabling radical new options. But also about improvement of old product/technology, often using old technologies in new ways. Innovation is not only confined to manufactured products: plenty of examples of growth through innovation can be found in services. The same goes for public services like healthcare, education and social security. They may not generate profits, but they do affect the quality of life for millions of people

1.2. Why innovation maters Success in organizations derive in large measure from innovation. It does not only matter at the level of the individual firm, but also for the wellspring for national economic growth. Innovation is becoming a central plank in national economic policy.

1.3. Innovation and entrepreneurship The survival/growth question poses a problem for established players ,but a huge opportunity for newcomers to rewrite the rule of the game  Entrepreneurship: a potent mixture of vision, passion, energy, enthusiasm, insight, judgment and plain hard work which enables good ideas to become reality. Also; internal entrepreneurship (intrapreneurs) or working in corporate entrepreneurship

1.4. How innovation matters Innovations contributes in several ways: - Competing in time: reflects a growing pressure on firms to introduce new products faster than others - New product development: environment is constantly changing - Process innovations: efficient systems and processes  advantage - Being able to offer better service (faster, cheaper, higher quality) Table 1.1. Strategic advantages through innovation

1.5. Old question, new context The innovation challenge isn’t new, organizations have always had to think about changing what they offer the world and the ways they create and deliver that offering if they are to survive and grow. The trouble is that innovation involves a moving target, not only is there competition amongst players in the game but the overall context in which the game is played out keeps shifting. Table 1.2. Changing context for innovation

1.6. What is innovation Difference invention-innovation: making good ideas work technically and commercially (the process of growing them into practical use).

1.7. A process view of innovation Simplified model of innovation: 1 Search: new ideas in the system by R&D, market signals, regulations, competitor behavior, etc. 2 Select: from the set of options the variants most likely to help us grow and develop 3 Implementation: converting ideas into reality 4 Capturing value: how will we ensure that the efforts have been justified (in commercial terms and social value)

1.8. Scope for/types of innovation If innovation is a process, we need to consider the output of that process. In what way scan we innovate, what kinds of opportunities exist for use to create something different and capture value from those ideas. Four categories of change: 1 Product innovation: changes in products/services which an organization offers 2 Process innovation: changes in the ways in which they are created and delivered 3 Position innovation: changes in the context in which the products/services are introduced 4 Paradigm innovation: changes in the underlying mental models which frame what the organization does Table 1.3. Examples of innovations mapped on the 4P’s model

1.9. Exploring different aspects of innovation Characteristics of innovation:  Degree of novelty: incremental or radical?  Platforms and families innovation: a way of creating stretch and space around an innovation and depends on being able to establish a strong basic platform or family which can be extended (Boing)  Discontinuous innovation: what happens when rules of game change?  Creative destruction Table 1.4. Sources of discontinuity  Level of innovation: component or architecture? - Component level: single incremental part of product/service - Architectural level: underlying knowledge about the system Figure 1.5. Component and architectural innovation  Timing: innovation life cycle. Innovation opportunities change over time. - New markets: huge scope for experimentation around new product and service concepts - Mature markets: process and/or position innovation Three phases in the innovation cycle (Figure 1.6.) - Fluid (exploration, uncertainty, flexibility) - Transitional (dominant design) - Specific (standardization, integration) Through the cycle: - Product innovation declines - Process innovation increases...