MANAGING INNOVATION

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MANAGING INNOVATION
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MANAGING INNOVATION

• Introduction
• What is invention and innovation
• Different types of innovations
• Models of innovation

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THE IMPORTANCE OF INNOVATION
Corporations must be able to change, adapt and evolve if they wish to survive By 1994-95, 275 books published in US had the word innovation in their titles .. not to innovate is to die - Christopher Freeman Though the term is now embedded in our language What is meant by innovation? Do we fully understand the concept? To what extend is this understanding shared? Is a scientists view of innovation the same or different from that of an accountant in the same company? Why are some business more innovative than the others? Is innovation at the heart of all companies activities?
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THE IMPORTANCE OF INNOVATION
Certain companies that have established themselves as technical and market leaders have demonstrated an ability to develop successful new products and to innovate MARKET LEADERS
Industry Market leaders ?
Aerospace Airbus, Boeing
Pharmaceuticals Pfizer, GSK, Novartis
Motor cars Toyota, BMW
Computers software development Microsoft, SAP, Intel
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THE IMPORTANCE OF INNOVATION
IMPORTANT TECHNOLOGICAL INNOVATIONS
YEAR NEW PRODUCT COMPANY
1930s PE ICI
1945 Ballpoint pen Reynolds Intl Pen
1950s Float glass -manufacturing process Pilkington
1970/80s Zantac GlaxoSmithKline
1970/80s Photocopying Xerox
1980s PC Apple Computer
1980/90s Windows 95 Microsoft
1995 Viagra Pfizer
2000s Cell phones Nokia

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THE IMPORTANCE OF INNOVATION
QUESTION Not all firms develop innovative new products, but they still seem to survive. Do they thrive?
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THE IMPORTANCE OF INNOVATION
How a number of different disciplines contribute to our understanding of the innovation process.
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DEFINITIONS VOCABULARY Creativity
Creativity is the key to making change Creativity is not a gift for a chosen few. Virtually everyone is borne with creativity and uses it extensively during childhood While we dont all have the same amount or type of creativity, we use substantial more than a friction, perhaps 10, of their natural creativity every day Creativity has little connection to IQ, sex, age or any other demographic factors Most people can tap into more of their natural creativity by learning a few basic process skills and by using these skills deliberately to uncondition themselves.
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DEFINITIONS VOCABULARY Creativity
How our attitudes suppress Creativity 1/2

1. We try too hard to get along with others instead
   of trying to introduce fresh facts and points of
   view.
2. We feel a need to account for all our actions
   instead of visualizing the future or playing with
   ideas.
3. Wishing to be seen as practical and economical,
   we often judge less than perfect ideas too
   quickly.
4. We worry about expressing doubt or ignorance or
   asking Why about things that everyone accepts
   we try to be polite and not placing others on the
   defensive.
5. We favour the adversarial approach to making
   decisions and resolving issues like the
   adversarial nature of the courtroom and the
   political arena. Developing a good solution
   becomes secondary, we think how to win at all
   costs.

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DEFINITIONS VOCABULARY Creativity
How our attitudes suppress Creativity2/2

1. We desire the safety of the known and familiar
   instead of venturing new ideas.
2. Because we know too much about our work, we often
   squelch open-minded consideration of new ideas.
3. Reluctant to admit that others ideas are better
   than our own, we reject attempts to improve our
   ideas. Accepting an improvement would be like
   admitting that our original idea was wrong.
4. We are unable to built on imperfect ideas trying
   to have the perfect idea otherwise we wont go
   ahead.

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DEFINITIONS VOCABULARY Creativity
How our behaviors suppress Creativity1/2

1. Because we fear appearing foolish, we do anything
   to avoid making mistakes and looking bad.
2. Our distrust of others motives makes us hesitant
   about sharing information or venturing new ideas.
3. Rather than solve the real problem, we go with
   the first available solution and fail to uncover
   better possibilities.
4. Believing there is one right answer to any
   problem, we are content to stop with a workable
   solution.

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DEFINITIONS VOCABULARY Creativity
How our behaviors suppress Creativity2/2

1. We try to solve a problem immediately we lack
   the confidence to let the problem incubate for a
   time. We feel that, if we dont solve the problem
   immediately, we have somehow failed.
2. We feel compelled to solve a problem directly
   instead of taking apparently off-course detours.
3. After finding a workable solution, we fail to
   drive the problem solving process through to
   implementation.
4. We are too quick to assume that something cannot
   be done or that a problem cannot be solved. Avoid
   negative attitudes toward problems at all costs.

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DEFINITIONS VOCABULARY Creativity
How our thought processes suppress Creativity1/2

1. When evaluating a new idea, we often rely too
   heavily on our mental processes instead of
   physically trying out the idea. try it, youll
   like it
2. Rather than strive for a clear interpretation of
   the facts, we often make assumptions based on
   preconceived ideas, or categorize based on our
   experience and hearsay. Better to leave aside
   assumptions and start with the facts.
3. We are inflexible and rely too much in our biased
   view of the world. A mental rigidity which
   kills creativity.
4. During problem solving we are unable to separate
   the underlying key facts from the apparent
   symptoms, or separate cause from effect. We
   assume that we already know the real problem.

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DEFINITIONS VOCABULARY Creativity
How our thought processes suppress Creativity2/2

1. We discuss problems in language that we assume
   others will understand we use jargon and
   ambiguous terminology.
2. We take on enormous problems without separating
   them into smaller components.
3. Hung upon the smaller components of a problem, we
   lose sight of the large challenge. we lose
   sight of the forest for the tree.
4. If information lacks a clear connection to
   everyday activities, we prematurely discard it as
   irrelevant. Gee, I cant see what this new
   information has to do with my work.
5. Believing that problem solving is complicated, we
   fail to see the obvious. Children are excellent
   problem solvers because they are see nothing as
   being too obvious.

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DEFINITIONS VOCABULARY Creativity
What happens without a Creative process1/4

• Getting bogged down (ßa?t?????)
• Inter-functional teams formed to tackle a common
  problem often bog down, for various reasons
• Trusting myself and my colleagues, e.g.
• I fear asking for help as it might be seen as
  incompetence
• I dont dare mention my real problem before my
  fellow managers. That would be displaying
  weakness
• I dont think the groups members trust one
  another enough to share what is really going on
• What if the solution doesnt work?
• This is too radical-what will headquarters say

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DEFINITIONS VOCABULARY Creativity
What happens without a Creative process2/4

• Parlor discussion, which shows up as as the
  following
• Whats the point of having a good solution if you
  are unwilling to implement it?
• Talking about it is one thing doing it is
  another
• Wanting a new management style, but.. which
  shows up as
• Afraid of straying into unfamiliar territory
• Preference of the relative safety of the firms
  admittedly poor but more customary approach

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DEFINITIONS VOCABULARY Creativity
What happens without a Creative process3/4

• Change fearful or fearless, which appears as
  follows
• We need more participatory management at all
  levels of the company
• We want employees to feel that they are also
  owners of the company
• How do we train senior management in this applied
  creative process and get them to use it on a
  daily basis?
• I want employee involvement. But if I allow too
  much leeway (pa?????s?) for self-management and
  creativity, I dont know where employees will
  take it
• Deep down, we fear getting involved. We fear the
  unknown. We might not be ready for more
  innovation.
• Id rather stick with the unacceptable solution
  weve accepted for the last 5 years than take the
  risk of trying a new idea even though it looks
  good.

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DEFINITIONS VOCABULARY Creativity
What happens without a Creative process4/4

• Sharing the risk, which shows up as
• Im afraid to report to my manager without having
  everything pinned down
• My manager talks a good game about not killing
  ideas, but he challenges almost everything I say
  as soon as Ive said it. I find myself choosing
  my words carefully every time we speak and
  getting ready to defend myself.
• We have taken the problem as far as we can, but
  will senior management be happy with our results?
• How might we get senior management to share the
  risk with us?
• Good ideas and projects languish (µa?a??????) in
  this system because people feel they have to
  perfect their idea before they will share their
  project.
• I dont want to be told I didnt do my homework
• Unless a senor manager is willing to visibly use
  this creative thinking process, no one else will.
  

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DEFINITIONS VOCABULARY Creativity
Summary Creativity is a continuous process of discovering good problems, solving these problems, and implementing solution Adaptability requires creativity Everyone is borne with creativity, but its suppressed as we mature in 3 main ways Our attitudes Our behaviors Our thought processes By learning skills to unleash your innate creativity, you can dramatically improve your performance and make valuable change
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What I Wish I Knew When I Was 20

• Every problem is an opportunity for a creative
  solution
• The harder I work, the luckier I get!
• Find the intersection between your interests,
  your skills, and the market
• Try lots of things and keep what works.
• Dont wait to be anointed. Just do it!
• It is a very small world Dont burn bridges!
• It is the little things that matter most.
• Creativity is allowing yourself to make
  mistakes. Art is knowing which ones to keep.
  Scott Adams

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THE IMPORTANCE OF INNOVATION
QUESTION Describe the role of individual in the innovation process? ANSWER Individuals play a key role in the innovation process They are define the problems, have ideas and perform creative linkages and associations that lead to innovations Their role as managers make them decide what activities should be undertaken the amount of resources to be deployed and how they should be carried out.
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DEFINITIONS VOCABULARY
Arguments and debates happen with all fields of management, so innovation management is not an exception This is particular true, when innovation is viewed as a single event rather than a process. BUT
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DEFINITIONS VOCABULARY
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DEFINITIONS VOCABULARY Idea vs. Concept
What is an idea What is a concept Idea ? concept (i.e. concept generation)
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DEFINITIONS VOCABULARY Idea vs. Concept
CONCEPT GENERATION
Ideas for new product or service concept can come
from sources within the organization, such as
staff, RD, and from sources outside the
organization, such as customers or competitors.
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DEFINITIONS VOCABULARY Idea vs. Concept
CONCEPT GENERATION
Ideas for new product or service concept can come
from sources within the organization, such as
staff, RD, and from sources outside the
organization, such as customers or competitors.
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DEFINITIONS VOCABULARY Idea vs. Concept
CONCEPT GENERATION
Ideas from Staff
Ideas from R D
Ideas from Competitors
Ideas from Customers
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DEFINITIONS VOCABULARY Idea vs. Concept
CONCEPT GENERATION
Research to develop new knowledge and ideas in
order to solve a particular problem or to grasp
an opportunity. Development is the attempt to try
to utilize operationalize the ideas that come
from research Although Development sounds less
exciting than Research, it often requires as much
creativity and even more persistence
Ideas from R D
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DEFINITIONS VOCABULARY Idea vs. Concept
CONCEPT GENERATION
Ideas from Competitors
Reverse Engineering
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DEFINITIONS VOCABULARY Idea vs. Concept

• Reverse Engineering refers to carefully
  dismantling and
• inspecting a competitors product
• to understand how the competitor has made it
• to look for design features that can be
  incorporated into your
• own product
• Examples
• Product Ford used this approach successfully in
  the Taurus
• model, assessing 400 features of competitors
  products and
• copying, adapting or enhancing more than 300 of
  them including Audis accelerator pedal, Toyotas
  fuel-gauge accuracy, and BMWs tire and jack
  storage
• Service Maybe difficult to reverse engineering
  (especially back-office services) as they are
  less transparent to competitors. Some use
  consumer testing, e.g. supermarkets investigate
  new services such as delivery, telephone ordering.

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DEFINITIONS VOCABULARY Idea vs. Concept
CONCEPT GENERATION
Ideas from Competitors
Reverse Engineering

• Focus groups
• Listening to the customers

Ideas from Customers
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DEFINITIONS VOCABULARY Idea vs. Concept

• Focus group
• It typically comprises 7-10 participants who are
  unfamiliar with each other
• They have been selected because they have certain
  characteristics in common that relate to the
  particular topic
• Participants are invited to discuss or share
  ideas with others
• The concept researcher tries to create an
  environment that nurtures different perceptions
  and points of view without pressurizing
  participants
• The group discussion is conducted several times
  with similar types of participants in order to
  identify trends and patterns in perceptions.

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DEFINITIONS VOCABULARY Idea vs. Concept
Ideas from Customers Listening to the customers
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DEFINITIONS VOCABULARY Idea vs. Concept
Transforming an idea into a concept may involve
including details of the form, function,
purpose and benefit of the product/ service
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DEFINITIONS VOCABULARY Idea vs. Concept
Transforming an idea into a concept may involve
including details of the form, function,
purpose and benefit of the product/service
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DEFINITIONS VOCABULARY Idea vs. Concept
QUESTION What is the difference between idea and
concept?
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DEFINITIONS VOCABULARY Idea vs. Concept
QUESTION What is the difference between idea and
concept?
ANSWER Ideas need to be transformed into
concepts so that they can be evaluated and then
operationalized by the organization. Concepts,
on the other hand, are clear statements that both
encapsulate the ideas and indicate the overall
form, function, purpose and benefits of the idea.
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DEFINITIONS VOCABULARY Idea vs. Concept
Examples
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DEFINITIONS VOCABULARY Innovation
What is invention and innovation
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DEFINITIONS VOCABULARY Innovation
Inventions are new discoveries or new ways of doing things Products are the outputs from the invention Innovation has to be viewed as a process from new discovery to eventual product
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DEFINITIONS VOCABULARY Innovation
Inventions are new discoveries or new ways of doing things Products are the outputs from the invention Innovation has to be viewed as a process from new discovery to eventual product
Is education an event or a process?

• Consider Education

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DEFINITIONS VOCABULARY Innovation
Inventions are new discoveries or new ways of doing things Products are the outputs from the invention Innovation has to be viewed as a process from new discovery to eventual product
Is education an event or a process?

• Consider Education

Definitely a process with output being the
qualifications.
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DEFINITIONS VOCABULARY Innovation Invention
Terms that are the first cousins but they are not identical twins that can be interchanged, so very important to establish a clear meaning for them. Innovation is not a single action but a total process of interrelated sub process. 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 in an integrated fashion Myers Marquis, 1969
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DEFINITIONS VOCABULARY Innovation Invention
Innovation Theoretical conception Technical Invention Commercial Exploitation
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DEFINITIONS VOCABULARY Innovation Invention
Innovation Theoretical conception Technical Invention Commercial Exploitation
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DEFINITIONS VOCABULARY Innovation Invention
Scientists and development engineers working for months developed a new lavatory cleaning product. They had developed a liquid that when sprayed into the toilet pan, on contact with water, would fizz and sparkle. The effect was to give the impression of a tough, active cleaning product. The company applied for a patent and further development and market research were planned. However, initial research both from technical and market specialist led to the abandonment of the project. The preliminary market feedback suggested a fear of such a product on the part of consumers. This was because the fizz and sparkle looked too dramatic and frightening. Furthermore, additional technical research revealed a short shelf-life for the mixture. QUESTION Is this a new idea, creativity, discovery, success, invention or innovation?
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DEFINITIONS VOCABULARY Innovation Invention
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DEFINITIONS VOCABULARY Innovation Invention
Clive Sinclair is the individual behind the development of a small, electrically driven tricycle or car, the famous Sinclair C5 which it was not commercially successful. QUESTION Is this an invention or innovation?
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DEFINITIONS VOCABULARY Innovation Invention
ANSWER Using the definition below, the fact that
the product progress from the drawing board into
the marketplace makes it an innovation, BUT an
unsuccessful one so be careful not to confuse
innovation from commercial success
Innovation Theoretical conception
Technical Invention
Commercial Exploitation
with
but without
Commercial Success
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DEFINITIONS VOCABULARY Innovation Invention
In 2003 the BBC run a series of TV programmes exploring the innovation route from idea to retail shelf. Viewers were asked to cast their vote on a selection of innovative prototype products the winning three products would receive financial and technical backing to develop and market their idea. Some of the winning ideas were revolutionary winning goggles a new type of ink pen a collapsing waste basket. QUESTION Which of these are inventions and which are innovations?
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DEFINITIONS VOCABULARY Innovation Invention
ANSWER None as all ideas would be financed for
development marketing.
Innovation Theoretical conception
Technical Invention
Commercial Exploitation
without
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DEFINITIONS VOCABULARY Innovation
QUESTION Is it true that technological innovations may result substantial managerial organizational changes? Any example to support it?
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DEFINITIONS VOCABULARY Innovation
ANSWER Yes indeed. Technological innovations may
result substantial organizational changes in the
functions of manufacturing, marketing and
sales An example is the introduction of a new ERP
(e.g. SAP) system, which brings a lot of
organizational and managerial changes
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DIFFERENT TYPES OF INNOVATIONS
Type of innovation Example
Product innovation The development of a new product
Process innovation The development of a new manufacturing process, e.g. Pilkingtons float glass process
Organizational innovation - A new venture division - A new accounting procedure
Management innovation - TQM systems - BPR systems - SAP R/3
Production innovation - Quality circles - JIT - MRP II or a new inspection system
Commercial / marketing innovation - CRM - Direct marketing
Service innovation Internet-based financial services
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DIFFERENT TYPES OF INNOVATIONS

• The above table widens the definition of
  innovation to include virtually any
  organizational or managerial change.
• Innovation may also defined as the application of
  knowledge.

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THE IMPORTANCE OF TECHNOLOGY AND SCIENCE IN
INNOVATION

• Science and Technology play an important role in
  innovation
• Science can be defined as systematic and
  formulated knowledge
• Technology is often seen as the application of
  science
• It is important to remember that technology is
  not an accident of nature but a product of
  deliberate action by human beings
• Technology is knowledge applied to products or
  production processes
• Technology, like education, cannot be purchased
  off the shelf (like a can of tomatoes). It is
  embedded in knowledge and skills.

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THE IMPORTANCE OF TECHNOLOGY AND SCIENCE IN
INNOVATION

• QUESTION
• Explain how technology differs from science, yet
  still does not equal innovation
• ANSWER
• Science is the systematic and formulated
  knowledge
• Technology is often seen as the application of
  science (i.e. the application of systematic and
  formulated knowledge) to products or production
  processes
• Innovation Theoretical conception
• Technical Invention
• Commercial Exploitation

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MODELS OF INNOVATION
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MODELS OF INNOVATION

• LINEAR MODEL
• SIMULTANEOUS COUPLING MODEL
• INTERACTIVE MODEL

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MODELS OF INNOVATION - LINEAR MODELS
Innovation process has traditionally been viewed
as a sequence of separable stages of activities.
There are two basic variations of this model for
product innovation.

• A. The technology-driven model, often referred
  to as technology - push
• The market-driven model, often referred to as
  market-pull.

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MODELS OF INNOVATION - LINEAR MODELS

• Characteristics
• Scientists make unexpected discoveries,
  technologists apply them to develop product ideas
  and engineers and designers turn them into
  prototypes for testing. Manufacturing devise ways
  to produce the products efficiently and
  marketing and sales promote the product to the
  potential customer.
• In this model, the marketplace is a passive
  recipient for the fruits of RD.

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MODELS OF INNOVATION - LINEAR MODELS

1. The market-driven model, often referred to as
   market-pull.

1. Here the role of marketplace is influential
2. The customer-driven model emphasizes the role of
   marketing as an initiator of new ideas resulting
   from close interactions with customers. These, in
   turn, are conveyed to RD for design and
   engineering and then to manufacturing for
   production
3. The role of market and the customer remains
   powerful and very influential.

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MODELS OF INNOVATION - LINEAR MODELS
QUESTION In which industries do you think
that a. The push model is applicable, and b. The
pull model is applicable?
ANSWER a. Push model ? Pharmaceutical b. Pull
model ? Food industry
Note that for most industries and organizations
innovations are the result of a mixture of the
two.
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MODELS OF INNOVATION- SIMULTANEOUS COUPLING MODEL

• The linear models are only able to offer an
  explanation of where the initial stimulus for
  innovation was born, i.e. where the trigger for
  the idea or need was initiated. They concentrate
  on what is driving the downstrean efforts AND NOT
  on how innovations occur.
• The simultaneous coupling model, below, suggests
  that it is the result of the simultaneous
  coupling of the knowledge within all 3 functions
  that will foster innovation.
• Furthermore, the point of commencement for
  innovation is not known in advance.

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MODELS OF INNOVATION - INTERACTIVE MODEL

• Here the technology-push is linked together with
  the market-pull models
• There is no explicit starting point, like the
  simultaneous coupling model.
• It emphasizes that innovation occurs as the
  result of the interaction of the needs in society
  and the marketplace, the latest science and
  technology advances in society together with the
  organization capabilities

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MODELS OF INNOVATION - INTERACTIVE MODEL

• At the centre of the model are the organizational
  functions of RD, Manufacturing and Marketing
• Though it appears as a linear model it is not
  necessarily.
• The linkage with science/technology and the
  market place occur between all function, not just
  with RD or manufacturing or marketing
• Finally the generation of ideas is shown to
  depend on inputs from 3 basic components - see
  figure below - organizational capabilities, needs
  of the marketplace and the science and technology
  base.

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MODELS OF INNOVATION - INTERACTIVE MODEL
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MODELS OF INNOVATION CHRONOLOGICAL DEVELOPMENT
Date Model Characteristics
1950/60s Linear model Technology push Simple linear sequential process Emphasis on RD The markets is a recipient of the fruits of RD
1970s Linear model Market pull Simple linear sequential process Emphasis on marketing The market is the source for directing RD RD has a reactive role
1980s Coupling model Emphasis on integrating RD, marketing manufacturing
1980/90s Interactive Combinations of push and pull
2000s Network model Emphasis on knowledge accumulation and external linkages
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MODELS OF INNOVATION
QUESTION Surely all innovations start with an
idea and end with a product, does that not make
it a linear process?
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MODELS OF INNOVATION - INTERACTIVE MODEL
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MODELS OF INNOVATION

• Its only by understanding what the customers
  wants that we can identify the innovative
  opportunities. Then we see if theres technology
  that we can bring to bear on the opportunities
  that exist. Being innovative is relatively easy
  the hard part is ensuring your ideas become
  commercial viable.
  
• 
  ..Managing director of McCain Foods
• QUESTION
• What is the message from the above statement
• Which model of innovation does he support push
• or pull?

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MODELS OF INNOVATION

• Its only by understanding what the customers
  wants that we can identify the innovative
  opportunities. Then we see if theres technology
  that we can bring to bear on the opportunities
  that exist. Being innovative is relatively easy
  the hard part is ensuring your ideas become
  commercial viable. ..Managing director of McCain
  Foods
• QUESTION
• What is the message from the above statement
• Which model of innovation does he support push
  or pull?
• ANSWER
• That invention is easy but innovation is
  difficult
• Pull, arguing that knowing your customer is
  crucial to
• turning innovation into profits

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INNOVATION AS A MANAGEMENT PROCESS
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INNOVATION AS A MANAGEMENT PROCESS

• External inputs
• Macro factors Competition
• Profit Growth Diversification
• Costs and input prices
• Political influences

Finance and business leadership

• External inputs
• Societal needs
• Competitors
• Supplier partnerships
• Distributors
• Customers
• Strategic alliances

• External inputs
• Scientific
• technological
• development
• Competitors
• Suppliers
• Customers
• Universities

Marketing
R Technology
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INNOVATION AS A MANAGEMENT PROCESS

• Practically, this means that while there will
  always be an interaction amongst the various
  function in the organization, like manufacturing,
  marketing, etc, there are also interactions
  between
• RD with fellow scientists in universities and
  other firms about scientific and technological
  developments
• marketing with customers, distributors,
  competitors, suppliers, etc to ensure that
  day-to-day activities of understanding customer
  needs
• Senior management with a wide variety of firms
  and other external institutions, such as
  government departments, suppliers, customers, etc.

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INNOVATION AS A MANAGEMENT PROCESS

• The functions inside the orghanization can be
  many, although three are presented in the figure
  RTechnology, marketing and finance, as
  traditionally are considered as the most
  influential.
• Which function is more influential than the
  other, it is a matter of the nature of the
  business, but at the end it does not make any
  difference. The point is to examine the
  interaction of these internal functions and the
  flow of knowledge between them, as well as their
  effective communication with the external
  environment.

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INNOVATION AS A MANAGEMENT PROCESS
ORGANIATIONAL HERITAGE

• The centre of the framework is represented as
  organizational heritage or organizational
  knowledge base.
• This does not mean the culture of the
  organization but a combination of
• the organizations knowledge base (established
  and built up over the years of operating) and
• the organizations unique architecture
• This organizational heritage represents for many
  firms a powerful competitive advantage that
  enables them to compete with other firms.

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INNOVATION AS A MANAGEMENT PROCESS
QUESTION Explain how organizational heritage influences the innovation process
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INNOVATION AS A MANAGEMENT PROCESS
QUESTION Explain how organizational heritage influences the innovation process
ANSWER The organizational heritage of the firm
will influence its future decisions regarding the
market in which it will operate. The point here
is that firms do not have a completely free
choice. What they do in the future will depend to
some extent in what they have done in the past.
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INNOVATION AS A MANAGEMENT PROCESS
ORGANIATIONAL HERITAGE

• Examples
• Tesco its distribution efficiencies and
  customer service, developed and built up over
  decades
• Siemens its continual investment over almost
  100 years in science and technology and the high
  profile to science and technology within its
  business
• Unilever its brand name skills and know-how
  developed over the years
• Dell -

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INNOVATION MANAGEMENT INTRODUCTION
QUESTION Not all firms develop innovative new products, but they still seem to survive. Do they thrive?
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INNOVATION MANAGEMENT INTRODUCTION
QUESTION If two different firms, similar in size, operating in the same industry spend the same RD, will their level of innovation be the same?
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INNOVATION MANAGEMENT INTRODUCTION
QUESTION What is wrong with the popular view of innovation in which eccentric scientists develop new products? ANSWER This view contributes to a misleading image of the innovation process because a complex phenomenon is simplified thus causing an immense harm to the understanding of science and technology
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INNOVATION MANAGEMENT INTRODUCTION
QUESTION Many innovations today are associated with companies as opposed to individuals. Why is this, and what does it tell us?

• ANSWER
• invention needs money
• innovation requires money to materialize the
  invention and only big companies can affort

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INNOVATION MANAGEMENT SUMMARY
Why Innovation is Important?
We define innovation as the successful
exploitation of new ideas. Often it involves new
technologies or technological applications.
Innovation matters because it can deliver better
products and services, new, cleaner and more
efficient production processes and improved
business models. For consumers, innovation means
higher quality and better value goods, more
efficient services (both private and public) and
higher standards of living. For businesses,
innovation means sustained or improved growth.
The innovative company or organisation delivers
higher profits for its owners and investors. For
employees, innovation means new and more
interesting work, better skills and higher wages.
Equally, an absence of innovation can lead to
business stagnation and a loss of jobs.
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INNOVATION MANAGEMENT SUMMARY
Why Innovation is Important? (continued)
For the economy as a whole innovation is the key
to higher productivity and greater prosperity for
all. Innovation will also be essential for
meeting the environmental challenges of the
future including moving to a low carbon economy
and reducing waste. We need to find new ways to
break the link between economic growth and
resource depletion and environmental degradation.
It is important to every sector of our economy,
in both manufacturing and services. To hold our
own in modern manufacturing we will need to
innovate strongly, creating new high-tech
manufacturing industries such as biotechnology
and upgrading traditional sectors such as steel
and textiles.
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INNOVATION MANAGEMENT

• CASE STUDY
• Unilever Grabage Bags

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INNOVATION MANAGEMENT

• CASE STUDY
• An Analysis of 3M, the Innovation Company