Marketing & Innovation - Introduction


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Session 1 - Defining Innovation

Marketing & Innovation - Introduction

  1. 1. Marketing, IT & Innovation Marcos LIMA, PhD Session 01: Introduction to Innovation Management
  2. 2. Welcome to Marketing, IT & Innovation <ul><li>The Spirit of Innovation </li></ul>
  3. 3. This Week’s Topics (1/2) <ul><li>Part 1: Course Introduction </li></ul><ul><ul><li>Lecturer Background and Research Interests </li></ul></ul><ul><ul><li>Expectations </li></ul></ul><ul><ul><li>Scope of the Course </li></ul></ul><ul><ul><li>Course Methodology / Sources / Evaluation </li></ul></ul>
  4. 4. This Week’s Topics (2/2) <ul><li>Part 2: Introduction to Innovation Management </li></ul><ul><ul><li>What is Innovation and Why it Matters </li></ul></ul><ul><ul><li>Innovation as an Integrated Business Process </li></ul></ul><ul><ul><li>The Innovative Organization: Understanding Knowledge Management </li></ul></ul>
  5. 5. Marketing, IT and Innovation <ul><li>How are these fields related? </li></ul>Marketing/ Service Development Tourism Industry Innovation IT Knowledge Management Customer Relationship Management
  6. 6. Scope of This Course <ul><li>Session 1(March 4 th ) </li></ul><ul><ul><li>INTRODUCTION to Innovation Management </li></ul></ul><ul><li>Sessions 3 & 5 (Mar. 11 / 18 th ) </li></ul><ul><ul><li>The Innovative Organization and Knowledge Management Culture </li></ul></ul><ul><li>Session 7 (Mar. 25 th ) </li></ul><ul><ul><li>SEARCHING the Organizational Environment, Selecting the Strategy , and implementing the Process </li></ul></ul><ul><li>Session 9 (April 8 th ) </li></ul><ul><ul><li>Mid-Term Quiz + Discussion </li></ul></ul>Search ENVIRONMENT Select STRATEGY Implement PROCESS Capture-Value CULTURE
  7. 7. Part 1 Course Introduction
  8. 8. Lecturer Background & Research Interests <ul><li>As a business executive / consultant </li></ul>1995 97 99 01 03 05 07 09 Marketing Innovation + Product / Service Development Knowledge Management
  9. 9. Lecturer Background & Research Interests <ul><li>As a student, teacher / researcher </li></ul>1995 97 99 01 03 05 07 09 Marketing Innovation + Product / Service Development Knowledge Management Bac +5 Bac +7 Bac +10
  10. 10. My Expectations <ul><li>DREAM: buy the textbook and read the chapters </li></ul><ul><li>NICE: surf the internet for related topics </li></ul><ul><li>MUST: read the articles </li></ul><ul><li>MUST: listen to the podcasts </li></ul><ul><li>You should also be… </li></ul><ul><ul><li>PARTICIPATIVE </li></ul></ul><ul><ul><li>ASSIDUOUS & ON TIME </li></ul></ul><ul><ul><li>CURIOUS </li></ul></ul>
  11. 11. Your first group assignment: Discuss Your Expectations <ul><li>A good course… </li></ul><ul><ul><li>should be… </li></ul></ul><ul><ul><li>should have… </li></ul></ul><ul><ul><li>should NOT be… </li></ul></ul><ul><ul><li>should NOT have… </li></ul></ul>
  12. 12. <ul><li>SHOULD… </li></ul><ul><li>SHOULD NOT… </li></ul>
  13. 13. Course Methodology <ul><li>Basic Pedagogical Principle: Meaningful Learning </li></ul>INTERACTION REFLECTION COLLABORATION Authentic Problem Environment
  14. 14. Course Methodology <ul><li>Two Parts </li></ul><ul><ul><li>TO: Theory-Oriented </li></ul></ul><ul><ul><ul><li>Instructor-centered learning </li></ul></ul></ul><ul><ul><ul><li>Preparation: read the textbook chapters and article assigned the week before </li></ul></ul></ul><ul><ul><li>PO: Practice-Oriented </li></ul></ul><ul><ul><ul><li>Student-centered learning </li></ul></ul></ul><ul><ul><ul><li>Article Discussions: Shared Synthesis </li></ul></ul></ul>
  15. 15. Evaluation <ul><li>MCQ/Essay Evaluation 35% </li></ul><ul><ul><li>Individual quiz on Innovation, April 8th </li></ul></ul><ul><li>Case Study 65% </li></ul><ul><ul><li>Group work on CRM, April 8 th & 25 th </li></ul></ul>
  16. 16. Main Sources <ul><li>Books </li></ul><ul><ul><li>Tidd & Bessant, “Managing Innovation: Integrating Technological, Market & Organizational Change”, Wiley 2009 </li></ul></ul><ul><ul><li>Trott, “Innovation Management & New Product Development”, Prentice Hall, 2008 </li></ul></ul><ul><ul><li>See syllabus for other sources </li></ul></ul><ul><li>Articles </li></ul><ul><ul><li>Several sources </li></ul></ul>
  17. 17. To complement your learning… <ul><li>Selected Podcasts and book chapters on class topics </li></ul>
  18. 18. Questions?
  19. 19. Part 2 Overview of the Innovation Process
  20. 20. Preliminary Quotes <ul><li>Niccolo MACHIAVELLI </li></ul><ul><ul><li>“ There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things” </li></ul></ul>The Prince, 1532
  21. 21. Preliminary Quotes <ul><li>???? </li></ul><ul><ul><li>“ 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”. </li></ul></ul>KARL MARX Communist Manifesto, 1848
  22. 22. What is Innovation? <ul><li>Let’s brainstorm! </li></ul>
  23. 23. What is Innovation? <ul><li>Video Interview: Strategyn </li></ul>
  24. 24. What is Innovation? <ul><li>Which of these is NOT an innovation? Why? </li></ul>a) Nintendo Wii b) Banana Peeler c) Apple’s iPhone d) Self-Service
  25. 25. What is Innovation? <ul><li>Is this an Innovation or an Invention? </li></ul>
  26. 26. A Few Definitions <ul><li>Innovation is… </li></ul><ul><ul><li>“ the process of turning opportunity into new ideas and of putting these into widely used practice ” (Tidd & Bessant, 2009) </li></ul></ul><ul><ul><li>“ the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product[/service]” (Trott, 2008) </li></ul></ul><ul><ul><li>“ 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 & Marquis, 1969) </li></ul></ul>
  27. 27. A Few Questions <ul><li>Is an unsuccessful new product an innovation? </li></ul><ul><li>Is the successful introduction of an old product in a new market an innovation? </li></ul><ul><li>Does all innovation involve new technology? </li></ul><ul><li>Xerox created the first computer with a Graphic User Interface. Steve Jobs used it to create the first Mac. Who was the innovator? </li></ul>
  28. 28. A Visual Definition These two variables explain the critical role of MARKETING in the innovation process
  29. 29. Recommended Reading <ul><li>DRUCKER, </li></ul><ul><ul><li>The Discipline of Innovation </li></ul></ul>
  30. 30. Why Innovation Matters <ul><li>Innovative companies are more… </li></ul><ul><ul><li>… Adaptable </li></ul></ul><ul><ul><ul><li>Flexible strategy, structure, culture </li></ul></ul></ul><ul><ul><li>… Competitive </li></ul></ul><ul><ul><ul><li>Better processes, services, business models </li></ul></ul></ul>BusinessWeek’s Most Innovative Companeis (2006)
  31. 31. Innovative in Different Ways BusinessWeek’s Most Innovative Companeis (2006) Innovative Chief Executive Scientific freedom of employees Use of external tech sources Design Speed of product development Close cooperation w/ suppliers
  32. 32. Innovation’s Economic Relevance <ul><li>Nikolai Kondratieff / Joseph Schumpeter </li></ul><ul><ul><li>“ virtually all of the economic growth that has occurred since the eighteenth century is ultimately attributable to innovation” </li></ul></ul><ul><ul><li>Schumpeter’s “Creative Destruction” </li></ul></ul>
  33. 33. <ul><li>Innovate or die </li></ul><ul><ul><li>Out of the 1957 Forbes 500, only 74 remained in 1997 </li></ul></ul><ul><ul><li>Of the top 12 companies which made up the Dow Jones index in 1900 only one (GE) survives </li></ul></ul><ul><li>Change is the only constant… </li></ul><ul><ul><li>From toilet paper in 1800s to… </li></ul></ul><ul><ul><li>From steel tubes in 1870s to… </li></ul></ul><ul><ul><li>From mining in old Prussia to… </li></ul></ul>Creative Destruction in Action
  34. 34. Why Innovation Matters <ul><li>Video Lecture – Why Innovation is So Necessary </li></ul>
  35. 35. Types of Innovation <ul><li>Incremental </li></ul><ul><ul><li>What we already do, but better </li></ul></ul><ul><li>Radical </li></ul><ul><ul><li>New to the world </li></ul></ul>
  36. 36. Types of Innovation <ul><li>Incremental </li></ul><ul><ul><li>What we already do, but better </li></ul></ul><ul><li>Sustaining </li></ul><ul><ul><li>Rules of the game remain the same </li></ul></ul><ul><li>Radical </li></ul><ul><ul><li>New to the world </li></ul></ul><ul><li>Disruptive </li></ul><ul><ul><li>Game Changer for Market or Industry </li></ul></ul><ul><li>True or false? </li></ul><ul><li>Radical innovation is more strategic than incremental innovation </li></ul><ul><li>Not all radical innovations are disruptive </li></ul><ul><li>All disruptive innovations increase the innovator’s competitiveness </li></ul><ul><li>Incremental innovations cannot be disruptive </li></ul><ul><li>Sustaining innovations cannot be radical </li></ul>Market Status Quo Technology
  37. 37. Types of Innovation <ul><li>Product / Service Innovation </li></ul><ul><ul><li>Innovate in WHAT we do </li></ul></ul><ul><li>Process Innovation </li></ul><ul><ul><li>Innovate in HOW we do it </li></ul></ul><ul><li>Paradigm / Business Model Innovation </li></ul><ul><ul><li>Innovate in HOW we make money </li></ul></ul><ul><li>Position Innovation </li></ul><ul><ul><li>Innovate in marketing mix and strategy WHERE, WHO, HOW MUCH </li></ul></ul>
  38. 38. Types of Innovation <ul><li>Tidd’s 4Ps </li></ul><ul><ul><li>Can you find at least one example of each type of innovation? </li></ul></ul>
  39. 39. Degrees of Innovation: Products Sustaining Disruptive Doing what we do, but better/different New to the world Rules of the game remain the same Game Changer for Market or Industry Incremental Radical New to the Firm
  40. 40. Degrees of Innovation: Services Sustaining Disruptive Doing what we do, but better/different New to the world Rules of the game remain the same Game Changer for Market or Industry Incremental Radical New to the Firm
  41. 41. Evolution of Innovation Models <ul><li>Linear Models </li></ul>1950/60s – Technology Push 1970s – Market Pull Manufacturing Marketing Research & Development Marketing Manufacturing Research & Development
  42. 42. Evolution of Innovation Models <ul><li>A Case for Market-Pull </li></ul>
  43. 43. Evolution of Innovation Models <ul><li>Simultaneous Coupling Model </li></ul>Marketing Manufacturing Research & Development 1980s
  44. 44. Evolution of Innovation Models <ul><li>Interactive Model </li></ul>Needs in society and the marketplace Latest in science & technology Advances in society R&D Manufacturing Marketing Idea Commercial Product Market Pull Technology Push <ul><ul><li>1990s </li></ul></ul>
  45. 45. Evolution of Innovation Models <ul><li>Open Innovation Model </li></ul><ul><ul><li>Emphasis on Business Model innovation as driver </li></ul></ul>2000s
  46. 46. Innovation as an Integrated Process Source: Tidd & Bessant, 2009
  47. 47. Innovation as an Integrated Process Source: Tidd & Bessant, 2009
  48. 48. Innovation as an Integrated Process Source: Tidd & Bessant, 2009
  49. 49. Innovation as an Integrated Process <ul><li>Video: Tidd & Bessant on The Innovation Process </li></ul>
  50. 50. Innovation as an Integrated Process Implement PROCESS Value- Capture CULTURE Search int./ext. ENVIRONMENT Select STRATEGY
  51. 51. Recommended Reading <ul><li>TIDD, 2009 </li></ul><ul><ul><li>Chapters 1,2,3 </li></ul></ul><ul><li>TROTT, 2008 </li></ul><ul><ul><li>Chapter 1 </li></ul></ul><ul><li>Articles </li></ul><ul><ul><li>Drucker </li></ul></ul>
  52. 52. Good Luck! Marcos Lima [email_address]