INNOVATION MANAGEMENT
Week # 1
Jan 04, 2019
Dr. Suresh Varadarajan
Learning Objectives
• Understand innovation and how its perceived across
entrepreneurs and Firms in terms of strategy and Management
• Examine the various Processes and tools used to manage
Innovation Process
• Explore methods to sustain the innovation process through
measurement of outcomes
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Course Text/ References
1. Paul Trott, Innovation Management and New Product Development, Pearson,
Fifth Edition, 2011, ISBN:9781447916079
2. Joe Tidd and John Bessant, Managing Innovation: Integrating Technological,
Market and organizational change, Wiley, 2009, ISBN:978-1-118-53859-3.
3. Burgelman R. Christensen C., Maidique M., Wheelwright S., Strategic
Management of Technology and Innovation. McGraw Hill, 2007, ISBN:
9780071232302
4. Lecture slides
5. Additional links to specific topics and case studies
3
Course Performance Evaluation
Assignments 10 points
Quiz 2 20 points
Case Study / Analysis 30 Points
End Semester Exam 40 Points
Note:
1) All Assignments are to be turned in by the due date. In electronic format –Google Docs
2) Case Study Presentation/Project : To be done in a group of 4/5
3) Case Study /Analysis Presentation/Submission Apr5-2019
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Curriculum to promote Design thinking, Product Innovation and
Incubation
Management Key Learning
Design Courses
Courses Outcomes
Innovation Sustain Incubation
8 Advantage
Management
7 Product Management Go-to-Market
Design for Quality Product Design Product
6 Data Analytics Prototype Innovation
and Reliability Practice
Semesters
5 Sustainable Entrepreneurship & Sustainable
Design Management Functions Business Plan
Designing Intelligent Socially sensitive &
4 Sociology of Design Design Thinking
Systems Info-intensive Design
Systems Thinking Discovering a Holistic
3 Engineering Economics Product Concept - NPD
for Design
Industrial Design Design Professional
2 Design History Basics of Design
Sketching Realization Ethics
1 Concepts of Engg Design Earth, Env & Design English for Communication Orientation
5
6
7
Learning Objectives: What we want to accomplish
• Exploring Innovation
• Executing Innovations
• Exploiting Innovations
• Renewing Innovations
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Innovation is Tougher to define and
even Tougher to Cultivate………………….
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What is Innovation?
Innovation = Invention * Commercialization
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What is Innovation
• The actions required to create new ideas, processes or products which when
implemented lead to positive effective change.
• Innovation is creating new value and/or capturing value in a new way. Value is the
key word, stressing the difference between innovation and invention. The
definition is simple, easy to memorize and also good enough to encompass
innovation in all the value chain.
• Innovation is something new to your business that fills an untapped customer
need. Ideally, the innovation builds a new market.
• An innovation is an idea that has been transformed into practical reality. For a
business, this is a product, process, or business concept, or combinations that
have been activated in the marketplace and produce new profits and growth for
the organization
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What is Innovation
• An innovation is an idea that has been transformed into practical
reality. For a business, this is a product, process, or business concept,
or combinations that have been activated in the marketplace and
produce new profits and growth for the organization
• Innovation is creating new value and/or capturing value in a new way.
Value is the key word, stressing the difference between innovation
and invention. The definition is simple, easy to memorize and also
good enough to encompass innovation in all the value chain.
• Innovation is something new to your business that fills an untapped
customer need. Ideally, the innovation builds a new market.
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What is Innovation
Is innovation always related to new technology and breakthrough
using something new, or something known, but in a different way,
different time or a different place.”
(Zoom car, swiggy,?, OYO? , AirBNB….)
Science and Technology Progress trigger new opportunities
an approach … that addresses a major imminent want or need that
people have, [something] they know they want or need or that they
will want or need once we provide it.”
(Genome sequencing, Protein Engineering)
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What is Innovation?
• Invention
• Technology
• Innovation
• Creating new or improved products, processes and services
• Knowledge and learning
• Uncertainty
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Innovation Process
Scientific and
Technological Firms Develop Knowledge,
Developments Processes and Products
inevitably lead
to knowledge
inputs
Societal Changes and Market
Needs lead to demands and
opportunities
Source: Paul Trott Innovation Management and New Product Development
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CHARACTERISTICS OF SUCCESSFUL INNOVATING
COMPANIES - 1
• Systematic collection of all impulses that could lead to innovation
• Creativity of employees
• Ability to evaluate the possibility of the innovation idea
• Good team work
• Project-based approach and ability to manage projects
CHARACTERISTICS OF SUCCESSFUL INNOVATING
COMPANIES - 2
• Cooperation with external experts (universities, research
laboratories…)
• Proper rate of risk-taking
• Employees’ motivation (the employees are willing to improve the
product and the operation of the whole company)
• Continued education of employees
• Ability to finance the innovation activities
Definition of innovation - 1
• “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.
Definition of innovation - 2
• R&D represents only one of these activities and can take place
during various stages of the innovation process. It can play not only
the role of the original source of the innovation ideas but also the
role of problem solution framework, which can be turned to at any
stage of the implementation.„
OECD, Frascati Manual 1992
Types of Innovation
• 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.
Types of Innovation
• Technological innovations – based on specific technology,
invention, discovery,
• Social innovations – in critical historic periods more important than
technological ones (mail, educational systém, social systém, health
care, …)
DEGREE OF NOVELTY
• Incremental innovations
• Radical innovations
• Systemic innovations
Classification of innovations
SYSTEM New series of New generation Steam engine,
cars, planes, (MP3 and ICT,
computers, TV download as biotechnology,
substitution of nanotechnology
CD)
Improvement of New Advanced
components components for materials
existing systems improving
component
COMPONENT properties
INCREMENTAL RADICAL
„do better what „new for the „new for the
we already do“ company“ world“
INNOVATION PROCESS
• Research and development (R&D)
• Production
• Marketing
Innovation is an opportunity for something new, different. It is always
based on change.
Innovators do not view any change as a threat but as an opportunity
Managing Innovation
• What's new simply behaves differently than what has become accepted
over time,
• whether it's a market or a technology or in people's heads or an
organization.
• What is new brings with it uncertainty and ambiguity that
• introduce important challenges into management decisions and
organizational processes.
• So, these issues will be written large in our course.
• Now, more specifically, we're going to start by examining how to
successfully
• implement innovation initiatives within
• established firms and alongside established businesses.
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50 Smartest Companies : 2017
Source: https://www.technologyreview.com/lists/companies/2017/
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What is Innovation : Science of Innovation
https://www.youtube.com/watch?v=UR83B1UuzCY
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Innovation tools
• https://www.youtube.com/watch?v=RFi4hHzRfew
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