Innovation management

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Innovation management

  1. 1. The Amaté platform - Preliminary Draft - Innovation Management March 30, 2016 Introduction Open Inno Case StudiesGenerations
  2. 2. Agenda I. Context II. Five generations III. Open Innovation IV. Case Studies Introduction Open Inno Case StudiesGenerations
  3. 3.  Giffgaff - gaelic for mutual giving reflected in their manifesto  Social CRM : member gets member, eVouchers, goodybags  Customer service is member driven  Giffgaff labs – crowdsourcing product testing  Payback for miles, cash or charities Introduction Open Inno Case StudiesGenerations
  4. 4. I. Unexpected Occurrences II. Incongruities III. Process Needs IV. Industry and Market Changes V. Demographic Changes VI. Changes in Perception VII. New Knowledge Innovative ideas come from methodically analyzing seven areas of opportunity…. Within a company/industry Social and Intellectual Environment The Discipline of Innovation Peter F. Drucker Introduction Open Inno Case StudiesGenerations
  5. 5. History 1950/60s Technology push Simple linear sequential process. Emphasis on R&D. The market is a receptacle for the fruits of R&D. 1970s Market-pull Simple linear sequential process. Emphasis on marketing. The market is the source for directing R&D. R&D has a reactive role. 1980s Coupling model Sequential, but with feedback loops. Combinations of push and pull. 1980/90s Interactive model Emphasis on integrating R&D and marketing. 1990s Network models Emphasis on external linkages Introduction Open Inno Case StudiesGenerations
  6. 6.  From 1950 to the mid-1960’s, fast economic growth allowed for a strong ‘technology push’  Companies focused predominantly on scientific breakthroughs  Innovation is a simple linear process with emphasis on R&D  Market information (customer demands) are integrated very late in the process First Generation Roy Rothwell Introduction Open Inno Case StudiesGenerations Laser Technologies
  7. 7.  The mid 1960’s to early 1970 were characterized by a ‘market shares battle’  Because of increasing competition, companies to shift their development focus to a ‘need pull’  The central focus is responding to the market’s needs.  Too much emphasis on improving existing products to meet market needs Second Generation Roy Rothwell Introduction Open Inno Case StudiesGenerations Telephones, Baidu
  8. 8.  From the mid 1970’s to the mid- 1980’s are marked by inflation and stagflation  Strategic focus was on corporate consolidation and product portfolios’  R&D and marketing play a balanced role in cost reductions  The focus is on technological opportunities rather than societal needs 3rd Generation Research Knowledge Potential market Invent and/or produce analytic design Detailed design and test Redesign and product Distribute and market D I S D: Direct link to and from researchfrom problems ininvention and design I: Support ofscientific research by instruments, machines, tools S: Support of researchinsciences underlying the product areas K K K Roy Rothwell Introduction Open Inno Case StudiesGenerations Mountain bikes, ATMs
  9. 9. Marketing R&D Product development Components manufacture Product manufacture  Early 1980’s to the mid-90’s the central theme became optimizing product life cycles.  Focus was on integrated processes to develop ‘total concepts’  More emphasis on the role of feedback and the cross- functional character of innovation  Emphasizes on concurrent learning with customers and suppliers Fourth Generation Roy Rothwell Introduction Open Inno Case StudiesGenerations Nissan
  10. 10. Fifth Generation EXTERNAL INPUTS: societal needs; competitors; supplier partnerships; distributors; customers; strategic alliances. EXTERNAL INPUTS: scientific and technological development; competitors; suppliers; customers; university departments. Organisation and business strategy EXTERNAL INPUTS: macro factors ROI costs; competition. Organisation’s knowledge base accumulates knowledge over time New products Source: Trott, 2005 Spotify and the music industry
  11. 11.  From the late 1990’s onwards, resource constraints became central  Focus was on systems integration and networking  Being a “fast innovator” is seen increasingly a critical success factor  Emphasis on vertical and horizontal linkages with suppliers and customers  Technological innovation is not sequential, but both by nature complex Integration and Networking Introduction Open Inno Case StudiesGenerations
  12. 12. The use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. Open Innovation Introduction Open Inno Case StudiesGenerations
  13. 13. • InnoCentive is an "open innovation" company that tackles research an development problems • Open Innovation suggests that innovation is more likely to come from a community than from an organization • The model addresses problems in engineering, computer science, math, the physical sciences and business. • Cash awards are given for solving challenge problems typically from $10,000 to $100,000. Introduction Open Inno Case StudiesGenerations
  14. 14. Closed innovation Open innovation All the best people are working for us Not all the best people are working for us . We must work with clever people within and outside our company. R&D creates profit only when we invent, develop and market everything ourselves. External R&D can create remarkable value; to employ it, we need absorption capacity, often as internal R&D. If we develop the product ourselves, we will be the first on the market. R&D can create profit even if we do not initialize and perform it ourselves. Winner is who gets the innovation to the market first. To develop better business model is more important than to be the first in the market. We will win if we develop most of the ideas (an the best of them). We will win if we make best use of internal and external ideas. We must have our intellectual property under control so that our competitors can make advantage of it. We must be able to profit from others using our intellectual property and we must license the intellectual property if it supports our business model. Introduction Open Inno Case StudiesGenerations
  15. 15. Source: Adapted from M. Cooley (1987) Architect or Bee? The Human Price of Technology, Hogarth Press, London. The Tangibility of Knowledge Introduction Open Inno Case StudiesGenerations
  16. 16. Trott, Innovation Management and New Product Development, 5th Edition, © Pearson Education Limited 2013 Scanning and association Introduction Open Inno Case StudiesGenerations
  17. 17. Trott, Innovation Management and New Product Development, 5th Edition, © Pearson Education Limited 2013 Systems of knowledge-transfer Introduction Open Inno Case StudiesGenerations
  18. 18. • What if the devices “completely go away to be absorbed into the fabric of our lives?” • Smart pills are an example of ambient technologies that integrate into our environments • These Invisibles will create a world in which we don’t see technology or sensors • Can technology become human – reacting to what makes each one of us unique? http://youtu.be/-hhOtjdkU34 ©2014 L. SCHLENKERIntroduction Open Inno Case StudiesGenerations
  19. 19. • Uses fashion and IT to create responsive clothes offering therapeutic value •Scents as tools to improve mental and physical wellbeing • A localized ‘scent cloud’ is released to fit specific moods • Goal is unlock emotional memories and to complement mood monitoring tools for the ‘Quantified Self’ Dr Jenny Tillotson ©2014 L. SCHLENKERIntroduction Open Inno Case StudiesGenerations

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