1
Industrial innovation
trends
Marko Torkkeli
Professor, Technology and Business
Innovations
Kouvola Research Unit
Prikaat...
2
History of Management Science
Daft & Marcic, Understanding Management, Thomson
Ansoff (1965):
Corporate Strategy
MBA’s: ...
3
Philiform - Philips
80s: Success and Failure in new Product Development
Innovators and Followers (Teece)
Success Failure...
4
Innovators and Followers
Likely failure
Look for a partner
Likely failure
Apply with the
dominant design?
Supplementing
...
5
Cassette Deck
Development time: two years.
The competitor develops a new deck in just half a year.
Now what?
Solutions:
...
6
Stage-Gate according to Cooper
Criteria for selection at the Gates
7
portfolio
management
market knowledge,
local party required
scale,
specialised partner
satisfy a need,
not a demand
R&D,...
8
Managing Diversity
• from ‘gold seeking’ to synergy with
market, product/application, technology
soft aspects
• PLUS ope...
9
a. An innovative company should create an
environment of learning and experimenting,
rather than planning.
b. HQ should ...
10
Copyright Arie Nagel, Netherlands
Copyright Arie Nagel, Netherlands
11
Copyright Arie Nagel, Netherlands
1. Brian Twiss, Managing Technological Innovation, Pitman, Longman, London, 1974, 198...
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Industrial innovation trends

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Industrial innovation trends

  1. 1. 1 Industrial innovation trends Marko Torkkeli Professor, Technology and Business Innovations Kouvola Research Unit Prikaatintie 9 FI-45100 Kouvola www.kouvola.lut.fi www.openinnovation.fi Overview Technology proves to be important Creation of new ideas New Product Development Success and Failure of New Products Strategic Alliances The Innovative, Open Company Quick Scan 70s 80s 90s 00s
  2. 2. 2 History of Management Science Daft & Marcic, Understanding Management, Thomson Ansoff (1965): Corporate Strategy MBA’s: Finance, Law and Marketing 1970: Technological Forecasting and the Club of Rome Mid 70s: Creativity, basis for e.g. ISPIM Envisioning the ‘home computer of the future’ in 2004 by RAND Corp. in the fifties.
  3. 3. 3 Philiform - Philips 80s: Success and Failure in new Product Development Innovators and Followers (Teece) Success Failure Follower Innovator IBM personal computer KODAK instant photography DUPONT teflon EMI scanner
  4. 4. 4 Innovators and Followers Likely failure Look for a partner Likely failure Apply with the dominant design? Supplementing resources available? Can the intellectual property be protected? Likely to succeed no no no Success Factor Grading 0 2 4 6 8 10 12 14 Superior product Strong market orientation International orientation More predevelopment Sharp and early product definition Properly executed launch Organisational structure and climate Top management support Technological and Marketing synergy Aim at attractive markets Sharper project selection Project control / Quality of execution The resources must be in place Speed Stage gate system Protection of intellectual property Dominant design Secure access to Complementary assets Consumer Innovator / Lead users Learning Non-product advantage SuccessFactors Number of responses1 Not so important 2 Fairly important 3 Very important
  5. 5. 5 Cassette Deck Development time: two years. The competitor develops a new deck in just half a year. Now what? Solutions: • Concurrent Engineering • Modular design and Platform design • Marketeers and Engineers work together in an early stage • Rapid prototyping
  6. 6. 6 Stage-Gate according to Cooper Criteria for selection at the Gates
  7. 7. 7 portfolio management market knowledge, local party required scale, specialised partner satisfy a need, not a demand R&D, complementary technology, share know how Cooperation in the network economy 2. Access to new markets 3. Efficiency 4. Clients do not want products, but tailored solutions 1. Access to knowledge Access to new markets Efficiency Clients do not want products, but tailored solutions Access to knowledge
  8. 8. 8 Managing Diversity • from ‘gold seeking’ to synergy with market, product/application, technology soft aspects • PLUS operations fit • PLUS cultural, human, strategic fit • yet complementary in competencies!
  9. 9. 9 a. An innovative company should create an environment of learning and experimenting, rather than planning. b. HQ should facilitate the initiatives from BUs, rather than direct BUs. c. Venturing is not ‘just’ for getting new business, but more and more to create new options. d. Key to getting knowledge and strengthening own competencies are strategic alliances. e. Business teams which strongly disagree (yet believe in a common objective) are more innovative than a too well structured set up. How to make a company more innovative? 10 factors for an innovative organisation • Leadership and will to innovate • Appropriate structure • Key individuals • Effective team • Streaching individual capabilities • Extensive communication • High involvement in innovation • Customer focus • Creative climate • Learning organisation Joe Tidd et al., Managing Innovation, Wiley, 1997 and on, Chapter 11: Building the Innovative Organization.
  10. 10. 10 Copyright Arie Nagel, Netherlands Copyright Arie Nagel, Netherlands
  11. 11. 11 Copyright Arie Nagel, Netherlands 1. Brian Twiss, Managing Technological Innovation, Pitman, Longman, London, 1974, 1980, 1986 and 1992. C, In. 2. Preston G. Smith and Donald G. Reinertsen, Developing Products in Half the Time, New Rules, New Tools, New York, Van Nostrand Reinhold, 1991. Second ed. in 1998. In. 3. Steven C. Wheelwright and Kim B. Clark, Revolutionizing Product Development, Quantum Leaps in Speed, Efficiency, and Quality, New York, The Free Press, 1992. In. 4. Gary Hamel and C.K. Prahalad, Competing for the Future, Breakthrough Strategies for seizing control of your industry and creating the markets of tomorrow, Harvard Business School Press, 1994. C. 5. Stewart Bray, Total Innovation, How to Develop the Products that your Customers want, Pitman Publ./Pearson, London, 1995. In. 6. Robert A. Burgelman et al. The Strategic Management of Technology and Innovation, 2nd ed., Irwin, 1996. C, R. 7. Robert A. Burgelman , Modesto A. Maidique and Steven C. Wheelwright, Strategic Management of Technology and Innovation, second ed., Irwin, 2001. C, R. 8. R. G. Cooper, S. J. Edgett, and E. J. Kleinschmidt, Portfolio Management for New Products, Hamilton, Ontario, McMaster University, 1997. In. 9. Joe Tidd et al., Managing Innovation, Integrating Technological, Market and Organizational Change, Wiley, 1997. Second ed. 2001. C. 10. Robert G. Cooper: Winning at New Products, Accelerating the Process from Idea to Launch, Addison-Wesley, 1993. Third ed. in 2001. In. 11. V.K. Narayanan, Managing Technology and Innovation for Competitive Advantage, Prentice-Hall, 2001. C. 12. Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Boston, MA, Harvard Business School Press, 2003. C. 13. David Probert et al., Bringing Technology and Innovation into the Boardroom, Strategy, Innovation and Competences for Business Value, European Institute for Technology and Innovation Management/Palgrave/MacMillan, 2004. C, R. 14. Melissa A. Schilling: Strategic Management of Technological Innovation, McGraw-Hill/Irwin, New York, 2005. C. Some useful books: Conceptual (C), Instrumental (In), Reader (R)

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