Beruflich Dokumente
Kultur Dokumente
Prof. V.Seshadri
SVKM’s NMIMS
References
1. Joe Tidd, John Bessant and Keith
Pavitt;Managing Innovation – integrating
technological, market and organizational
change; 3rd ed.; Wiley India.
2. John E Ettlie, Managing Innovation – new
technology, new products and new services
in a global economy,, Rochester Institute of
Technology
3. Harward Business Essentials, Managing
Creativity and Innovation , Harward Business
School – 2003
4. Shlomo Maital & DVR Seshadri, Innovation
Management – Strategies, Concepts & Tools
for Growth & Profit
5. Robert A Bungerman & Madisto A Maiidique;
MOI - Prof.V.Seshadri 2
Strategic Management of Technology and
References – contd.
6. Peter Drucker, Innovation and
Entrepreneurship – Harper & Row, 1985, NY
7. Dr. K.V.Khurana, Management of
Mc Graw Hill
9. Curtis R. Carlson & William W. Wilmot,
MOI - Prof.V.Seshadri 8
Technology -contd
• Technologies are the outcome of
development activities undertaken
to put inventions and discoveries to
practical use.
• The invention of the transistor(1947),
I.C. (1959) and Microprocessor
( 1971) gave rise to successive
generations of new technologies in
the semiconductor industry that in
turn led new applications in the
telecom , computing and
automation areas.
MOI - Prof.V.Seshadri 9
Innovation
• Innovation is the successful exploitation of
new ideas.
• The term comes from the latin – innovare
meaning ‘to make something new’
• Innovation is the process of turning
opportunity into new ideas and putting
these to widely used practice. ( Ref 1)
• Innovation is the process whereby new and
improved products , processes, materials
and services are developed and
transferred to a plant and /or market
where they are appropriate – Rubenstein
MOI - Prof.V.Seshadri 10
Components of an
Innovation cycle
May never be
developed into
marketable products INVENTION
Adopting
innovation
Has no
instantaneous
commercial
value MARKET
Fountainhead of
innovation
Buying or ignoring the
innovation
MOI - Prof.V.Seshadri Ref 8 Fig 3.1 11
Invention vs Innovation
INVENTION INNOVATION
It is the creation of a new It is the introduction of new
Product,
May not Process or Service
be commercialized product, process
Results into or service into
commercialization
Activities centred in R&D or in the marketplace
Activities and applications
some
May havelab ororworkplace
may not have spread across the
For economic organization
motive
economic
May bringmotive
few changes in the Brings organizational change
workplace
MOI - Prof.V.Seshadri 12
Invention vs Innovation
May or may not be patentedEssential to patent before
Precedes Innovation Succeeds Invention
commercialization
Invention = Innovation – Innovation = Invention +
Involves
CommercialfewExploitation
people ( even Innovation
Commercialinvolves a team,
Exploitation
one person) – usually from organization of multi
one or few technical discipline people.
disciplines
MOI - Prof.V.Seshadri 13
KAIZEN
• Kaizen is the Japanese concept of
continuous improvement. The motto
of Kaizen is
• “Today better than yesterday and
tomorrow better than today”
• Deep, systematic and continuous
involvement of people and using
certain techniques, mainly people’s
brains to cause an improvement.
• It is continuous because it is ongoing
activity and never stops.
• Job rotation and cross training are
employed to give workers a complete
MOI - Prof.V.Seshadri 14
Difference between Innovation
and Kaizen
Criteria Kaizen Innovation
Effect Long term and long Usually short term effect
lasting
Undramatic on org’s systems
Dramatic
Pace Small steps /technologies
Big steps
Time frame Continuous Intermittent – project
Involvement Everybody from top oriented
Select few –multi functional
to bottom teams
MOI - Prof.V.Seshadri 15
Difference between Innovation
and Kaizen
Criteria Kaizen Innovation
Spark Conventional know- Technological breakthroughs
Effort how
People oriented Technology oriented
orientation Small
Investment Big
Human effortMajor Less
Suitability Works well in slow Works well in fast growth
growth economy
MOI - Prof.V.Seshadri 16
Innovation Process
• It is the process which facilitates
innovation and involves search and
selection , exploration and
synthesis, cycles of divergent
thinking and convergence.
•
MOI - Prof.V.Seshadri 18
What is Innovation? – contd
• An innovative business is one which
lives and breathes “outside the
box”.
• It is not just good ideas, it is a
combination of - -good ideas,
-motivated staff
-and an instinctive understanding
of what your customer wants
- Richard Branson (1998)
MOI - Prof.V.Seshadri 19
Invention vs Innovation
• Innovation indices confuse innovation with
invention. The innovation value chain–in a
national context– encompasses the end-
to-end cycle from R&D invention to its
value realization in the society at large.
•
• As such, invention is only a subset of
innovation that’s generally science-based
research or focused on product design
and results in patentable inventions.
•
• National employment, power, wealth, and
well-being depend more on the
MOI - Prof.V.Seshadri 20
deployment of innovations than on the
Invention and Innovation
• "Countries, like firms, can most easily reap the
rewards of innovation through a global
ecosystem in which firms, universities, NGOs,
and governments collaborate. We call this an
Innovation Network.
•
• Within such a network, nations will fluidly weave
internally and externally available inventions
and innovation services by taking on one of
four innovation roles: Inventor, Transformer,
Financier, or Broker."
MOI - Prof.V.Seshadri 21
Management of Innovation
1.It requires the fostering of an
environment where innovative
thought and work are encouraged
2.It involves leading a firm from
existing processes and products to
something that is better and more
valuable.
3.It is proactive and encourages
creativity and risk taking.
MOI - Prof.V.Seshadri 22
Characteristics of Firms that
manage Innovation process
well
1.Separate funds for Innovation
2.Periodic reviews of informal proposals by a
group outside line management
3.Clear definition on studies to be done and
follow –ups that are expected
4.Extensive boundary- spanning activities to
learn from others and to gain an
understanding of what others are doing.
5.Set of realistic expectations
6.Supportive atmosphere for de-bugging and
exploring variations as well as
appropriate resources for maintenance
and service
MOI - Prof.V.Seshadri 23
Management of Innovation -
Definition
• A comprehensive approach to
managerial problem solving and
action based on an integrative
problem-solving framework and an
understanding of the linkages among
innovative streams, organizational
streams and organization evolution.
• It is about implementation- managing
politics, control and individual
resistance to change.
• The manager is an architect/engineer,
politician/network builder and
MOI - Prof.V.Seshadri 24
Innovation catagories
Product / Proce
ss
New Old
MOI - Prof.V.Seshadri 25
Invention and Innovation
• For instance, "inventor nations" lead in research
and design. These countries (think India 20
years from now) have the academic institutions
and scientists to file a lot of patents.
•
• "Transformer nations" take those ideas and turn
them into businesses with investment.
•
• "Financiers" bankroll the innovation with venture
capital (think U.S.).
•
• "Broker nations" connect all of these pieces with
"multiculturalism, workforce diversity, cross-
border scientific collaboration, Internet
adoption, language proficiency, foreign student
rates, patents created with foreign co-
inventors, and international venture capital
funding." MOI - Prof.V.Seshadri 26
Stages of Technological
Innovation
1.Basic Research
2.Applied Research
3.Technology Development
4.Technology implementation
5.Production
6.Marketing
7.Proliferation
8.Technology Enhancement
• Recognition of need
• Study Alternatives
• Select best solution
• Make proposal for
implementation
•
• Economic analysis
• Capital
• Strategic outlook ( Identify NICHE
area)
MOI - Prof.V.Seshadri Ref 8 34
Process of Technological
Innovation
• 7. Development
• R&D
• Prototype
• Testing
• Start-up needs
Commercialization
• Production
• Testing
• Operational Control
• Supply organization
• Logistics
MOI - Prof.V.Seshadri 38
Innovation process at Enterprise level
- Traditional phase gate model ( Linear
Model of Innovation )
Gate 1 Gate 2 Gate 3 Gate 4
Idea Capability
Generatio Concept Ramp - up Launch
feasibi Development
n
lity
Test Feedback
Financial & Prototype Marketi &
Technical Development ng Correcti
Feasibility onsCommercializat
ion
MOI - Prof.V.Seshadri, Ref 7 Fig 6.3 39
Innovation Process – Flexible
Model
TRADITIONAL MODEL
Project Concept
Start Frozen Market
Introduction
Concept Development
Implementation
Concurrent
Engineering FLEXIBLE
(Implementation MODEL
)
MOI - Prof.V.Seshadri Ref 8 Fig 6.4 b 40
Industrial Innovation
• Industrial Innovation includes the
technical, design, manufacturing,
management and commercial
activities involved in the marketing
of a new (or improved) process or
equipment - Chris Freeman (1982)
MOI - Prof.V.Seshadri 41
Drivers of Innovation
1.Need to improve quality
2.Create new markets
3.Extend product range
4.Reduce labour cost
5.Improve production process
6.Reduce materials/ material cost
7.Reduce environmental damage
8.Replace products/Services
9.Reduce energy consumption
10.Conform to regulations
MOI - Prof.V.Seshadri 42
Innovation mode
– Supply Pushed
( Technology Pushed)
Or
– Market Pulled
MOI - Prof.V.Seshadri 43
Technology Push Model
• It is the first generation linear model
• Technology is regarded as the key
driver of innovation.
• When a new/improved technology
emerges, it leads to innovations to
new products/services or processes
• Sequential steps that follows are: R&D,
Design, Engineering, Manufacturing,
Marketing and Sales.
• E.g. Menu Operated Computer Software
Production
Marketing
Customer
Technology Push
Generation of Ideas
Market Pull
System Level
Steam
, TVPower , ICT revolution,
New versions of motore.car
New generations , aeroplane
g. MP3 and download vs CD & cassette music
Bio-Technology
Component level
New components
Improvements to Advanced
components
for
materials
existing
to improve
systems
component performance
Incremental Radical
MOI - Prof.V.Seshadri 60
Process Innovation
• Example:
• Changes in the manufacturing
methods
• Equipment used to produce the car
or the home entertainment system
• Change of office procedure and
sequencing of an insurance
package.
MOI - Prof.V.Seshadri 61
Positioning innovation
• Example: An old, established product
“Lucozade” which is presently
selling as a children’s tonic or for
convalescing patients was re-
launched as a health drink aimed at
the “fitness” segment.
MOI - Prof.V.Seshadri 62
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
Paradigm Innovation
• Examples: Shift to ‘low cost airlines’
• Re- position Coffee as premium
designer product.
• Energy saving as a “Carbon credit”
business opportunity.
Mark
et DISRUPTIVE INNOVATION RADICAL
Link (Disrupting the market) INNOVATION
ages
Enha
nces/
Dest
roys
DISRUPTIVE
EVOLUTIONARYINNOVATION
INNOVATION(Disrupting the technology base)
• Relative advantage
• Compatibility
• Complexity
• Triability
• Observability
New
Concept
A
Time - years
MOI - Prof.V.Seshadri Ref 9 Fig 2.2 84
S – Curve – an established
technology and a new rival.
New Rival
Pe
rf 80
or Established
ma Technology
nc 60
e
(
40
%
)
20
T1 T2
Time / Investment
MOI - Prof.V.Seshadri Ref 1 Fig 7.7 85
Failure of Innovation
• 90% of all innovations have no
impact on the organizational goals.
• As per one survey, only one in 3000
new ideas become successful.
Causes of failure:
• Internal
• External
MOI - Prof.V.Seshadri 86
Failure of Innovation – Internal
Causes
Cultural:
• Poor Leadership; Organization;
Communication ; Empowerment;
Knowledge Management
Process
3.2 Execute
3.3 Launch
3.4 Sustain