Session 2: Basic Innovation Concepts<br />Prof. Dr. Bernhard Katzy<br />Winter 2011<br />
Innovation Management<br />1<br />Innovation System<br />Innovation<br />Innovation Governance <br />Organization of innov...
2<br />Session 2 – An Overview<br />Agenda<br />Mini-Test<br />A brief history of thinking about innovation<br />Summary a...
Session 2 – Reading Engagement<br />3<br />Mini-Test<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br /><ul><li>Schumpeter’s definiti...
A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />5<br />T<br />T<br />1<br />2...
A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />6<br />The abernathy model of...
A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />Telecommunication or Media?<b...
A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />Incremental innovation? Or ra...
A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />9<br />Architectural innovati...
A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />10<br />CREATIVE  DESTRUCTION...
The entrepreneur is never the risk bearer. Risk taking is in no case an element of the entrepreneurial function, but may r...
First of all, there is the dream and the will to found a private kingdom, usually, though not necessarily, also a dynasty;
Then there is the will to conquer: the impulse to fight, to prove oneself superior to others, to succeed for the sake, not...
Finally , there is the joy of creating, of getting things done, or simply of exercising one’s energy and ingenuity.</li></...
A Brief history of thinking about innovation:1950ies – Innovation through R&D Departments<br /><ul><li>Why this called Sch...
The traditional paradigm for managing R&DBureaucracy in innovation departments dominant
Elements for innovation through R&D laboratories paradigm
Main actors of R&D department
R&D laboratories : Philips since about 1914, the Bell Labs in 1925…
Capital resources: funding from organization, or public subsidies
Human resources: scientist, researchers……</li></ul>11<br />Schumpeter 2<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
A Brief history of thinking about innovation:1950ies – Innovation through R&D Departments<br />Bell Labs has been at the f...
A Brief history of thinking about innovation: 1960ies: Innovation adoption of new ideas by society<br /><ul><li>Diffusion ...
The decisions are not authoritative or collective, each member of the social member of the social system faces his/her own...
A Brief history of thinking about innovation: 1960ies: Innovation adoption of new ideas by society<br />14<br />INNOVATION...
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Session02 innovation concepts

  1. 1. Session 2: Basic Innovation Concepts<br />Prof. Dr. Bernhard Katzy<br />Winter 2011<br />
  2. 2. Innovation Management<br />1<br />Innovation System<br />Innovation<br />Innovation Governance <br />Organization of innovation<br />Transformation and entrepreneurship <br />Basic innovation concepts<br />Introduction based on life cases<br />Innovation Theory<br />Dominant theory, Main issues and developments of innovation research<br />Innovation Practice<br />High tech entrepreneurship…<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  3. 3. 2<br />Session 2 – An Overview<br />Agenda<br />Mini-Test<br />A brief history of thinking about innovation<br />Summary and assignments<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  4. 4. Session 2 – Reading Engagement<br />3<br />Mini-Test<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  5. 5. A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br /><ul><li>Schumpeter’s definition on innovation: A process of creative destruction</li></ul> Driven by:- New markets or products- New equipment- New methods of organization or management- New methods of communication<br /><ul><li>Schumpeter’s business (technology) cycle</li></ul> A circular flow which, excluding any innovations and innovative activities, leads to a stationary state. The entrepreneur disturbs this equilibrium and this is the cause of economic development, which proceeds in cyclic fashions along several time scales.<br />4<br />Creative destruction of schumpeter's entrepreneur<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  6. 6. A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />5<br />T<br />T<br />1<br />2<br />THE S model of Technology cycle<br />Maturity of<br />Technology<br />Substitution<br />Time<br />Initiation<br />Take-off<br />Maturity<br />[Source: Foster,1986]<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  7. 7. A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />6<br />The abernathy model of Dominant Design<br />Rate of<br />Innovation<br />Dominant<br /> Design<br />Process <br />Innovation<br />Product<br />Innovation<br />Time<br />Fluid<br />Pattern<br />Transitional<br />Pattern<br />Specific<br />Pattern<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  8. 8. A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />Telecommunication or Media?<br />7<br />Case <br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  9. 9. A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />Incremental innovation? Or radical?<br />8<br />Case of Digital Television<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  10. 10. A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />9<br />Architectural innovation<br />[Source: Henderson, Clark]<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  11. 11. A brief history of thinking about innovation1930ies: Entrepreneurs innovate the economy<br />10<br />CREATIVE DESTRUCTION OF SCHUMPETER ‘S ENTREPRENEUR<br />Definition on entrepreneurs (innovators):Individuals whose function is to carry new combination out<br /><ul><li>The entrepreneur is the head of a firm and its employees
  12. 12. The entrepreneur is never the risk bearer. Risk taking is in no case an element of the entrepreneurial function, but may risk his reputation
  13. 13. First of all, there is the dream and the will to found a private kingdom, usually, though not necessarily, also a dynasty;
  14. 14. Then there is the will to conquer: the impulse to fight, to prove oneself superior to others, to succeed for the sake, not of the fruits of success, but of success itself;
  15. 15. Finally , there is the joy of creating, of getting things done, or simply of exercising one’s energy and ingenuity.</li></ul>Source :Schumpeter < the theory of economic development><br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  16. 16. A Brief history of thinking about innovation:1950ies – Innovation through R&D Departments<br /><ul><li>Why this called Schumpeter 2 ?
  17. 17. The traditional paradigm for managing R&DBureaucracy in innovation departments dominant
  18. 18. Elements for innovation through R&D laboratories paradigm
  19. 19. Main actors of R&D department
  20. 20. R&D laboratories : Philips since about 1914, the Bell Labs in 1925…
  21. 21. Capital resources: funding from organization, or public subsidies
  22. 22. Human resources: scientist, researchers……</li></ul>11<br />Schumpeter 2<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  23. 23. A Brief history of thinking about innovation:1950ies – Innovation through R&D Departments<br />Bell Labs has been at the forefront of technology since 1925. Here are ten Bell Labs innovations that changed the world :<br />12<br />Early cases of r&d labs<br />Laser<br />The Transistor<br />Cellular Telephone Technology<br />Solar Cells, Communications Satellites, Touch-Tone Telephone, Data Networking, Digital Transmission and Switching, Unix Operating System and C Language, Digital Signal Processor (DSP)……<br />Source :http://www.alcatel-lucent.com/wps/portal/BellLabs<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  24. 24. A Brief history of thinking about innovation: 1960ies: Innovation adoption of new ideas by society<br /><ul><li>Diffusion is the process by which an innovation is communicated through certain channels over time among the members of a social system.
  25. 25. The decisions are not authoritative or collective, each member of the social member of the social system faces his/her own innovation-decision that follows a 5-step process:</li></ul> -Knowledge<br /> -Persuasion<br /> -Decision<br /> -Implementation<br /> -Confirmation<br /> For most members of a social system, the innovation-decision depends heavily on the innovation-decisions of the other members of the system<br />13<br />Innovation as Diffusion over time<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  26. 26. A Brief history of thinking about innovation: 1960ies: Innovation adoption of new ideas by society<br />14<br />INNOVATION AS DIFFUSION OVER TIME<br />The Bell-shape Curve and S-shape Curve<br />The scholars divide this bell-shape curve to characterize five categories of system member innovativeness. These groups are: <br />Innovator, Early adopters, Early majority, Late majority, and Laggards.<br />Source: Rogers <Diffusion of innovations><br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  27. 27. A Brief history of thinking about innovation: 1960ies: Innovation adoption of new ideas by society<br />15<br />S – Shape curve and bcg matrix<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  28. 28. A Brief history of thinking about innovation: 1960ies: Innovation adoption of new ideas by society<br />Moore's CHASM<br />16<br />S – curve does not always go smooth<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  29. 29. A Brief history of thinking about innovation:1970ies: Innovation as a business strategy<br />National strategy<br />- The relation ship between innovation and economic growth<br />- Mainly concerns supporting small and medium sized enterprises in how to adopt innovations.<br />- Policies and institutes such as TNO institute in Holland channelling more inventions through the process from basic to applied research and into production in firms. <br />Innovation and organizational strategy<br />- Viewing technology as a functional capability implies the need to develop a technology strategy, analogous to financial and human resource strategies<br />- A set of interrelated decisions encompassing, among others, technology choice, level of technology competence, level of funding for technology development, timing of technology introduction in new products/ services, and organization for technology application and development (e.g., Maidique and Patch, 1978)<br />17<br />Innovation as a strategic means to differentiate <br />in mature markets<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  30. 30. A Brief history of thinking about innovation:1980ies: Innovation as a profession and competence<br />18<br />INNOVATION AS A DISCIPLINE - DRUCKER<br />Innovationis an effect in economy and society<br />Innovation<br />is work<br />Innovators must build<br />on their strength<br />Principles<br />The practice (discipline) of innovation:<br />‘90% of Innovation is Transpiration’<br />1 Analysis for opportunities<br />5<br />Gain leadership<br />2<br />Go out, look and listen<br />conception & perception<br />Do’s<br />4<br />Start small<br />3<br />Be effective,simple and focused<br />[Drucker, 1996]<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  31. 31. A Brief history of thinking about innovation 1990ies: Innovation through collaboration in networks<br />- Stresses that the flow of technology and information among people, enterprises and institutions is key to an innovative process. It contains the interaction between the actors who are needed in order to turn an idea into a process, product or service on the market.<br />- Innovation systems have been categorized into national innovation system, local innovation system, regional innovation systems and sectoral innovation systems<br />19<br />Innovation through strategic cooperation in <br />innovation systems<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  32. 32. A Brief history of thinking about innovation 1990ies: Innovation through collaboration in network<br />20<br />Regional Cluster<br />Industry and Research<br />Entities <br />Company<br />Research Centre<br />Public <br />Institution<br />VPC<br />VPC<br />University<br />Living Lab<br />community<br />LL client <br />New product/<br />service<br />Co-creation<br />Social <br />Community <br />Territory <br />Social <br />Settings<br />LL Collaborative<br />Infrastructure <br />Innovation system<br />Sectoral Innovation System <br />National Innovation System <br />Innovation system<br />[Katzy and Crownston 2008; Schuh, Katzy, Eisen 1997]<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  33. 33. A Brief history of thinking about innovation: 2000: “open” Innovation in cooperation with the user<br />21<br />Innovation through open innovation<br />Development<br />Research<br />licensing<br />Other firms’ Market<br />New Market<br />Spin-off<br />Internal Technology Base<br />Current Market<br />Labor mobility/ Venture Capital/ Numerous Start-ups/ research conducted at Universities/……<br />External Technology Base<br />Technology insourcing<br />[Source: Henry Chesbrough 2003]<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  34. 34. A Brief history of thinking about innovation: 2000: “open” Innovation in cooperation with the user<br />22<br />Comparison between open innovation <br />and closed innovation<br />Henry Chesbrough <Open Innovation><br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  35. 35. A Brief history of thinking about innovation: 2000: Innovation through Organization routines<br />23<br />Innovation through organization routines<br />A congruence model of diagnosing organizational behaviour<br />Transformation Process<br />Informal <br />Organization<br />Context<br />Output<br />Formal<br />Organization <br />Arrangements<br />Organization<br />Group<br />Individual<br />Task<br />Strategy<br />Environment Resources History<br />Individual<br />Feedback<br />Tushmanand Nadler < a congruence model for organization problem solving><br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  36. 36. Summary and assignments<br />Summary<br />- Perspectives from the different sides to study innovation phenomenon<br />- Different perspectives are complementary to each other<br />- No clear boundary between different research orientation<br />24<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  37. 37. Readings for session 3: Organization of Innovation<br /><ul><li>Article 18: Jeffrey Peffer. Understanding power in organizations
  38. 38. Article 20: Tushman/O'Reilly. The ambidextrous organization: managing evolutionary and revolutionary change</li></ul>Both from: <br />Michael L.Tushman and Philip Anderson. Managing Strategic Innovation and Change. 2ndediton, Oxford University Press, 2004.<br />Prof. Dr. Bernhard Katzy<br />25<br />11/01/11<br />

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