hand out for lecture D

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Innovation Management an overview
Dr Paul Trott, Reader in Innovation Management,
University of Portsmouth.
Professor of Innovation Entrepreneurship, TU
Delft, The Netherlands.
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PAUL TROTT INNOVATION MANAGEMENT AND NEW PRODUCT
DEVELOPMENT 4th Edition
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Management of Innovation an overview

• Introduction
• Can we manage innovation?
• Models of understanding of innovation management
• Factors that influence the innovation process
• A framework for innovation management
• Conclusions

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Popular view of innovation
. . . the lone inventor/mad professor.
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Table 1 Worlds most innovative companies
Source Business Week April 24, (2006)
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Overview of the innovation process

Scientific technological developments
inevitably lead to knowledge inputs.
Firms operating functions activities
Creative individuals
Firms develop knowledge, processes products.
Firms architecture external linkages

Societal changes market needs lead to demands
opportunities.
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2. What is innovation ?
Invention innovation
  Innovation conception invention
exploitation   Source Henry Walker (1991)
Innovation is not a single action but a total
process of interrelated sub processes. It is not
just the conception of a new idea, nor the
invention of a new device, nor the development of
a new market. The process is all these things
acting in an integrated fashion . .
.' Myers and Marquis (1969).
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3. Types of innovation  
Dimensions of Innovation space
discontinuous
New manufacturing technique
Perceived extent of change
radical
Launch of ebay
New improved detergent
incremental
product
service
process
What is changed?
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New services that also create new business
models/value
The worlds largest internet poker company
(Moules, 2007).
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• Disruptive innovations
• Research by Utterback (1994) Christensen (2000)
• suggests many firms find it difficult to manage
• disruptive innovations
• e.g. IBM, Hoover, UK Banks, etc.
• Incumbents in an industry do not respond well to
• dramatic shifts in behaviour
• How do firms manage both continuous change
• and discontinuous change?

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5 studies of innovation management
Studies of Innovation management 1. Carter
Williams 1957 Industry technical progress 2.
Project Hindsight- TRACES 1968 Historical
reviews of US gvt funded (Isensen) defence
industry 3. Wealth from knowledge (Langrish et
al.) 1972 Queens Awards for tech innov 4. Project
Sappho 1974 Success failure factors in
chemical industry 5. Minnesota Studies (van
de van) 1989 14 case studies of innovations 6.
Rothwell 1992 25 yr review of studies 7.
Sources of innovation (Wheelwright
Clark) 1992 Different levels of user
involvement 8. MIT studies (Utterback) 1994 5
major industry-level cases 9. Project NEWPROD
(Cooper) 1994 Longditudinal survey of success
failure in new products 10. Radical
innovation (Leifer) 2000 Review of mature
businesses
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Factors that affect innovation
Firm related factors Organisational
heritage Experience RD team Strategy
towards Innovation Organisational structure RD
intensity
Product related factors Relative price Relative
quality Uniqueness Technologically advanced
Successful marketable product
Technological viability
Commercial viability
Project related factors Complementarity Managemen
t style Top management support
Market related factors Concentration of Target
market Timing of market entry Competitive
pressure Marketing
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Linear models of innovation management
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Interactive model of innovation
TECHNOLOGY PUSH
latest science and technology advances in society
commercial product
idea
RD
Manufacturing
Marketing
needs of society and the market place
MARKET PULL
Source Rothwell Zegweld (1985)
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Open Innovation
Basic Research
New Product Development
Current market And business model
Internal research projects
Technology acquisition
Technology In-licensing
Venture investing
External research project
(Chesbrough, 2003)
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Open innovation . . . Procter Gambles web of
links for innovation and new product development
Source HBR (2006)
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Cyclic Innovation Model
Technological research
integrated engineering cycle
hard sciences cycle
Scientific exploration
Product creation
Entrepreneurship
Marketing cycle
soft sciences cycle
Market transitions
Source G Berkhout (2007), TU Delft.
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The end Thank you For listening