schiling capter one and two

1. IS STRATEGY
Tafa ‘Ulfayza
Sistem Informasi
Chapter One
and
Chapter Two

2. Chapter One
Introduction
THE IMPORTANCE OF TECHNOLOGICAL INNOVATION
In many industries technological innovation is now the most important driver
of competitive success. Technological
Innovation The act of introducing a new device, method, or material for
application to commercial or practical objectives.
For example, at Johnson & Johnson, products developed with in the last five
years account for over 30 percent of sales, and sales from products developed
within the past five years at 3M have hit as high as 45 percent in recent years.
THE IMPACT OF TECHNOLOGICAL INNOVATION ON SOCIETY
The aggregate impact of technological innovation can be observed by looking
at gross domestic product (GDP). Gross domestic product (GDP) The total
annual output of an economy as measured by its final purchase price. The
gross domestic product of an economy is its total annual output, measured by
final purchase price. Sometimes technological innovation results in negative
externalities. Externalities Costs (or benefits) that are borne (or reaped) by
individuals other than those responsible for creating them.

3. The Innovation Funnel

4. Chapter Two
Sources of Innovation
Gavriel Iddan was an electro-optical engineer at Israel’s Rafael
Armament Development Authority, the Israeli authority for
development of weapons and military technology.
Innovation The practical implementation of an idea into a new device or
process. Innovation can arise from many different sources. It can
originate with individuals, as in the familiar image of the lone inventor or
users who design solutions for their own needs. Innovation can also come
from the research efforts of universities, government laboratories and
incubators, or private nonprofit organizations. One primary engine of
innovation is firms.
An even more important source of innovation, however, does not arise from any
one of these sources, but rather the linkages between them. Networks of
innovators that leverage knowledge and other resources from multiple sources are
one of the most powerful agents of technological advance. We can thus think of
sources of innovation as composing a complex system wherein any particular
innovation may emerge
primarily from one or more components of the system or the linkages between
them (see Figure 2.1).

5. Sources of Innovation as a System

6. Innovation begins with the generation of new ideas. The ability to
generate new and useful ideas is termed creativity. Creativity is defined
as the ability to produce work that is useful and novel. Creativity The
ability to produce novel and useful work, and Idea Something imagined
or pictured in the mind.