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IM Week 1: Introduction to Innovation (Definitions (i. ‘Companies achieve…
IM Week 1: Introduction to Innovation
Intro: “The best way to predict the future is to invent it”
Alan Kay - A Fellow of Apple Computer
Definitions
i. ‘Companies achieve competitive advantage through acts of innovation. They approach innovation in the broadest sense, including both new technologies and new ways of doing things’ Porter (1990)
ii. The first commercial application or production of a new process or product’
Freeman and Soete (1997)
iii. ‘Innovation is the successful exploitation of ideas’ UK Dep of Trade and Industry (2004)
iv. ‘The process of creating value from ideas’
Tidd and Bessant (2014)
What is the difference between ‘invention’ and ‘innovation’?
Inventions are ideas that may or may not develop into new products
Innovations are ideas that are developed into new products and processes
3.What are different types of innovation?
Product (and service) innovation:
changes in the things (products or services) which an organization offers
Examples:
Product: washing machine, ballpoint pen, television
Service: Facebook, Amazon, 'no frills' airlines
Process innovation:
changes in the ways in which they are created an delivered
Examples:
moving assembly line, computerised airline reservation (IATA), 'float glass' process
How new?
What are the different dimensions of innovation?
Incremental innovation
occurs when small improvements are made to a product, or the processes used in manufacturing a product
Radical innovation
occurs when major improvements are made to a product.
The 4Ps of innovation space
i. Paradigm (Mental model)- radical: iTunes
ii. product (service)- incremental: iPhone 6, radical: Toyota Prius Hybrid
iii. position- incremental: low cost airlines
iv. process- radical: Skype, eBay
What does innovation involve?
invention
commercialisation
diffusion
8.Innovation process
i. Search: how can we find opportunities for innovation?
ii. Select: what are we going to do- and why?
iii. Implement- how are we going to make it happen?
iv. Capture: how are we going to get the benefits from it?
Component and architectural innovation
