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Chapter 1
Innovation management: an introduction
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Introduction Product and process innovations Typology of innovations Different schools of thought Models of understanding of innovation management Implications for developing products and services Summary and review
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Introduction
Innovation management is not exclusively associated with products New ways of doing business in service sector Innovation management involves change, particularly technological change Sometimes this involves product, service and process changes The level of change is an important dimension
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Process technologies
Enterprise Resource Planning (ERP) business software; virtually all large firms have installed it. SAP, Oracle, Baan and PeopleSoft. SAP has over 20,000 products installed worldwide and Oracle has installed databases in nearly every one of the worlds top 500 companies. Moreover, it has changed the way they work (Gartner, 2002).
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Typology of innovations
Type of innovation Product innovation Process innovation Example The development of a new or improved product The development of a new manufacturing process such as Pilkingtons float glass process Organisational innovation A new venture division, a new internal communication system; Management innovation TQM (total quality management) systems, BPR (business process re-engineering); introduction of SAPR3 Production innovations Quality circles, JIT manufacturing system, new production planning software, e.g. MRP II, new inspection system Commercial/marketing innovations New financing arrangements, new sales approach, e.g. direct marketing Service innovations ebay; Internet banking, etc.
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Manufacturing
Marketing
User
Market pull
Marketing
Manufacturing
User
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Manufacturing
Marketing
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Conceptual framework
Consumers express their needs and wants through the consumption of products
Technological developments
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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EXTERNAL INPUTS: scientific and technological development; competitors; suppliers; customers; university departments.
EXTERNAL INPUTS: societal needs; competitors; supplier partnerships; distributors; customers; strategic alliances.
New products
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Innovative firm
Apple Google Samsung Procter & Gamble IBM BMW Starbucks Toyota
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Useful references: Patel, P. and Pavitt, K. (2000) How technological competencies help define the core (not the boundaries) of the firm, in Dosi, G., Nelson, R. and Winter, S. G. (eds) The Nature and Dynamics of Organisational Capabilities, Oxford University Press, Oxford. Shavinina, L.V. ( ed.) (2003) The international handbook on Innovation, Pergamon, Oxford. Tidd, J., Bessant, J. and Pavitt, K. (2001) Managing Innovation, 2nd edn, John Wiley & Sons, Chichester.
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008
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Any questions? Thanks for listening I hope you enjoy the unit.
Paul Trott, Innovation Management and New Product Development, 4th Edition, Pearson Education Limited 2008