Innovation management ppt

innovation management for global competitiveness and innovation management and new product development ppt
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OliverFinch,France,Teacher
Published Date:15-07-2017
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INTRODUCTION TO INNOVATION MANAGEMENT (INN001, 5 p.) INTRODUCTORY LECTUREWE LIVE IN AN ERA OF INCREDIBLE CHANGES... “Constant revolutionizing of production, uninterrupted disturbance of all social conditions, everlasting uncertainty… All old-established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries, whose products are consumed not only at home, but in every quarter of the globe. In place of old wants satisfied by the production of the country, we find new wants… The intellectual creativity of individual nations become common property...”So – is there really anything which fundamentally distinguishes the 21st century from the 19th century with respect to scientific and technological developments??Yes, of course... • Technologies have grown much more complex • Great hopes that the natural sciences will contribute to innovation • Competition at an increasingly international and global scale • Shorter product life cycles • Increasing awareness among firms and analysts of innovation as a potential source of competitive advantage • Etc. Recognizing the importance of science and technology for economic development... • Francis Bacon (1620): Printing, gunpowder and the compass ‘have changed the whole face and state of things throughout the world…’ • Adam Smith (1776): ‘Improvements in machinery’ go hand in hand with the division of labour, and ‘very pretty machines . . . facilitate and quicken’ production… • Karl Marx (1848): ‘The bourgeoisie cannot exist without constantly revolutionizing the means of production’ • Alfred Marshall (1897): ‘Knowledge’ is the chief engine of progress in the economy • Bush (1945): Science and basic research as incredibly powerful sources of future economic and societal development... • Joseph Schumpeter (1911): The entrepreneur and his search for ‘new combinations’ is the driving force in all economic development… • Freeman & Soete (1997): ‘In the most fundamental sense the winning of new knowledge is the basis of human civilization’… • Etc. • So, no one doubts that innovation is crucial for our modern economies... • ... but how can innovation be ’analysed’... • ... and how can it be ’managed’?NORMAL ECONOMICS IS BORING ’... The problem that is usually being visualized is how capitalism administers existing structures, whereas the relevant problem is how it creates and destroys them. As long as this is not recognized, the investigator does a meaningless job...’ (Schumpeter, 1942, p. 84)Economics of change... • ’Production capacity’ = capital goods, knowledge and labour skills to PRODUCE • ’Technological (innovative) capabilities’ = skills, knowledge and institutions that make it possible to generate and manage CHANGE in technology (Bell & Pavitt 1997)”INNOVATION MANAGEMENT” How can firms (and other organizations) exploit innovation in pursuit of their differing goals – in particular their own survival, profit and growth? How does innovation threaten their existence? How can entrepreneurs use S&T as a basis for the creation of new firms? Etc. Schumpeter’s distinction between ”Invention” and ”innovation” •An ’invention’ is an idea, a sketch or model for a new or improved device, product, process or system. It has not yet entered to economic system, and most inventions never do so. •An ’innovation’ is accomplished only with the first commercial transaction involving the new product, process, system or device. It is part of the economic system.”INNOVATION SPACE” • Innovations can be of very, very different kinds • Firms are often good at one or two types of innovation... • ... but there are enormous opportunities if a firm is able to explore and exploit the entire innovation spaceWhat type of innovation? • ”product innovation” vs. ”process innovation” • ”goods” vs. ”services” • ”technological” vs. ”organizational” innovation • ”incremental” vs. ”radical” innovation • (”continuous” vs. ”discontinuous” innovation) • ”architectural” vs. ”modular” innovation • ”richness” vs. ”reach” • ”position” innovation • ”techno-economic paradigm change” •etc.Changes in techno-economic paradigm • Industrial revolutions, long waves, techno- economic paradigms... • Freeman & Perez (1988): – 1780-1840 (early mechanization) – 1840-1890 (steam power and railways) – 1890-1940 (electrical and heavy engineering) – 1940-1990 (fordist mass production) – 1990-? (information and communication)Which type of innovation is most important??? ”...it is the perceived degree of novelty which matters; novelty is very much in the eye of the beholder. For example, in a giant, technologically advanced organization like Shell or IBM, advanced networked information systems are commonplace, but for a small car dealership or food processor even the use of a simple PC to connect to the Internet may still represent a major challenge”The aim of innovation... • ... is rarely innovation ”per se” • Goal is mostly to survive, to grow, to make profit • Engineers always want to do their best in a technical way... • ... but what matters for innovation is how it influences survival chances, profit and growth opportunities • = Risk for ”over-invention”We live in a world of crap... • There are a lot of useless things going on in the world... • ... only very few inventions have any economic chances... • ... but this ”waste” is totally necessary for the innovative economy to function • (compare with biological evolution...)So, never forget Schumpeter... •An ’invention’ is an idea, a sketch or model for a new or improved device, product, process or system. It has not yet entered to economic system, and most inventions never do so. •An ’innovation’ is accomplished only with the first commercial transaction involving the new product, process, system or device. It is part of the economic system.”CREATIVE DESTRUCTION” ”Before”: ”A long period of relative stability during which a continuous stream of variations around a basic innovation theme take place. Essentially this is product/process improvement along the lines of ’doing what we do, but better’...”