Armend Muja, Innovation Management: linear, coupling and systems innovation
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The document provides a comprehensive overview of innovation management, highlighting different forms of innovation such as product, process, service, and organizational types, along with their corresponding degrees of novelty. It discusses various sources of innovation, models of innovation management from historical perspectives, and the importance of market conditions and firm resources in driving innovation. Additionally, it addresses conceptual distinctions between invention and innovation, emphasizing the impact of innovation on firms' strategies and entrepreneurship.
Armend Muja, Innovation Management: linear, coupling and systems innovation
- 1. Innovation Management Armend MUJA University of Corvinus
- 2. Content 1. Introduction to Innovation 2. Typology of innovation 3. Sources of innovation 4. Models of innovation 5. Concluding remarks 6. Discussion
- 3. Learning outcomes • Distinguish the different forms that innovation can take, such as product, service, process, organizational or service innovation • Distinguish between sources of innovation • Describe models of innovation management • Analyze different types of innovation and appreciate their role in firms strategy and entrepreneurship
- 5. 1. The concept of innovation • But, such views lead to misunderstanding. Science does not equal innovation. Innovation is much more than science, e.g. scientific discoveries pre-date commercial products by many years • Innovation economics – Schumpeterian ‘creative destruction’ • Innovation management is not exclusively associated with products • Innovation management involves change, particularly technological change • Sometimes this involves product, service and process changes • The level of change is an important dimension
- 7. 2.1 Grouping innovations • Grouping innovation into two categories: forms of innovation and degree of novelty • Forms of innovation: product, process, service and organizational • Degree of novelty: incremental, radical, modular, architectural (Henderson & Clark) and disruptive (Christensen)
- 8. 2.2 Forms of innovation: traditional grouping Product •Development of a new product Process •Production techniques
- 9. 2.3 Forms of innovation (2): less attention Service • E-Bay, Internet Banking Organizational • TQM, Management, HRM
- 10. 2.4 Degree of novelty • Some innovations employ a high degree of novelty, while others involve little more than ‘cosmetic’ changes to an existing design. This distinction between big change and small changes innovations has led some to group innovations as either radical or incremental (Freeman, 1982) • Henderson and Clark’s (1990) analytical framework provides a typology that allows us to analyse more modest innovations and at the same time predict their impact in terms of both competition and the marketplace. • Disruptive innovation (Christensen)
- 11. Henderson & Clark (1990) Typology Incremental innovation Modular Architectural innovation Radical innovation
- 12. 3. Sources of innovation 12
- 13. 3. Innovation Sources: Schools of thought 1. Context and market-based view of innovation; market conditions provide the context which facilitate or constrain the extent of firm innovation activity (Slater & Narver, 1994; Porter, 1980, 1985). E.g Oil shocks… 2. Resource-based view of the firm; a firm’s own resources provide a much more stable context in which to develop its innovation activity and they are pursued systematically (Drucker, Tidd et al., 2001; Shavinina, L.V. (ed.) (2003); Patel, P. and Pavitt, K. 2000). 3. Accidental Innovation is all due to luck and good fortune 4. Disruptive (Christensen)
- 14. 3. Models of innovation 14
- 15. Models of innovations 195 0/60s Technology push Simple linear sequential process. Emphasis on R&D. The market is a receptacle for the fruits of R&D. 1970s Market-pull Simple linear sequential process. Emphasis on marketing. The market is the source for directing R&D. R&D has a reactive role. 1980s Coupling model Sequential, but with feedback loops. Combinations of push and pull. 1980/90s Interactive model Emphasis on integrating R&D and marketing. 1990 s/00 Network models Emphasis on external linkages
- 16. Linear Model of innovation management Research and development Manufacturing Marketing User Technology push Research and development ManufacturingMarketing User Market pull
- 18. Interactive Model Science and technology base Needs of the marketdevelopments Technological Creation of new knowledge dominated by universities and large science-based organisations Technology development- dominated by organisations the consumption of products Consumers express their needs and wants through
- 19. EXTERNAL INPUTS: societal needs; competitors; supplier partnerships; distributors; customers; strategic alliances. EXTERNAL INPUTS: scientific and technological development; competitors; suppliers; customers; university departments. Organisation and business strategy EXTERNAL INPUTS: macro factors ROI costs; competition. Organisation’s knowledge base accumulates knowledge over time Innovation System approach New productsSource: Trott, 2005
- 20. 4. Concluding remarks & QA 20
- 21. 4. Concluding remarks Invention vs innovation Innovation categories: forms of innovation and degree of novelty Models: liner, coupling, interactive and system based approach Sources of innovation: role of market structure and social developments important, role of technology important, cross- functional process, knowledge base important
- 22. 4.2 Q.A • Why product innovations get more attention? • Why do process innovation have wide ranging social consequences? • Identify process innovation that had an impact on you and your society? • Identify service innovation that had an impact on you and your society? • Can we differentiate between component and system knowledge? • Identify radical vs incremental innovation • What type of innovation is iPod?