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Innovation process & models

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Types of Inventions; Difference between invention and innovation; Types of innovation; Innovation process vs Process innovation; Linear innovation models.. Technology push model, Market pull model; Flexible innovation process models

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Innovation process & models

  1. 1. Innovation Process By Dr. Vijay Kr Khurana
  2. 2. What is Invention?According to Oxford English Dictionary – Invention means to create or devise something new. Invention is also regarded as devising of new ways of attaining given ends.Any Invention must satisfy following conditions :• It results into something new,• It involves some inventive (new) step &• It is useful.
  3. 3. What is Invention?Under section 2(1)(j) of the Patents Act, 1970, an invention means any new & useful :• Art, process, method or manner of manufacture• Machine, apparatus or other article• Substance produced by manufacture.It also includes any new & useful improvement of any of three things mentioned above.
  4. 4. What are not InventionsFollowing are not regarded as inventions under the Patents Act, 1970:• Mere discovery of an already existing principle.• Discovery of a scientific principle• An invention which is frivolous or which claims anything contrary to well established natural laws.• Mere discovery of new property or new use of known substance, process, machine or apparatus; unless it results in a new product or employs at least one new reactant• A substance obtained merely by mixing
  5. 5. What are not InventionsContd ….• A mere arrangement or re-arrangement or duplication of known devices• A method of agriculture or horticulture• Any process for treatment of human beings, plants & animals to render them free of diseases or to increase their economic value or that of their products• An invention, use of which would be contrary to law, morality or injurious to public health.
  6. 6. Types of Inventions• Spontaneous / Autonomous Inventions• Induced Inventions
  7. 7. What is Innovation?• According to Oxford English Dictionary – Innovation means introduction of something new. Thus Innovation can be defined as the introduction of a new product, service or process into the market place.• The National Innovation Initiative (NII) of USA defines - innovation as the intersection of invention and insight, leading to the creation of social and economic value.
  8. 8. What is Innovation?Contd …• ‘Innovation is celebration of creativity’,  pronounced Dr A.P.J. Abdul Kalam, the President of India at  Third Award Function of NIF (National Innovation Foundation).• Many definitions of Innovation• To sum up… Innovation = Invention + Commercial Exploitation
  9. 9. Diff between Invention & InnovationS No Invention Innovation1 It is the creation of a It is introduction of new new product, service or product service or process process into marketplace2 May not be Results into commercialized commercialization3 Invention can be both Innovation is usually autonomous & induced induced4 Invention may be for Innovation is usually for non-economic or economic motive economic motive
  10. 10. Diff between Invention & InnovationS No Invention Innovation5 Activities usually Activities & restricted to R&D applications spread center across the organization6 May bring few Brings organizational changes in change organization7 Precedes innovation Succeeds / follows invention8 Invention = Innovation = Invention Innovation – + commercial commercial exploitation exploitation
  11. 11. Components of InnovationThree Components• A hardware component – consisting of material or physical aspects of innovation• A software component – consisting of information base that is needed to use the innovation• An evaluation information component – that is useful for decisions related to the adoption of the innovation.These components form a system to make it user friendly
  12. 12. Basics of Innovation• Goals & reasons of Innovation• Sources / ideas for innovation• Advantages of Innovation• Risks associated with innovation• Characteristics of innovation – ???? – Innovation is broader than R&D – Innovation brings changes in the organization – Innovation is different from KAIZEN
  13. 13. Types of InnovationFollowing categories• Product, Service & Process innovations• Open & closed innovations• Incremental & Radical Innovations  incremental innovations – sustaining innovations, evolutionary innovations  radical innovations – altering innovations, disruptive innovations – extreme case > business model innovations• Disruptive vs sustaining innovations• Modular & architectural innovations• Generic & epochal innovations• Technovation / Technological innovation
  14. 14. Types of Innovation
  15. 15. Types of Innovation
  16. 16. Innovation Process• It is the process which facilities innovation.• The process of innovation involves search & selection, exploration & synthesis, cycles of divergent thinking & convergence.• Innovation process needs support at three levels.• At the macro level i.e. National Level, Innovation in a nation directly depends upon national government’s policies and support.
  17. 17. Innovation Process
  18. 18. Innovation ProcessContd …• At the next level i.e. Enterprise Level, Innovation in enterprises depends upon top management’s support and commitment. It is the top management which sets the direction and environment for the innovation in an organization.• Lastly at the bottom level ie. Individual Level, Organizations should create mutifunctional teams and encourage individuals involved in the innovation process. Innovation largely depends upon actions and motivation of multifunctional teams and individuals involved in the innovation process.• Innovation is largely responsibility of enterprise
  19. 19. Innovation Process vs Process innovationS Innovation Process Process innovationNo1 It is the process which It means development of new facilities innovation. process / changes in process design which are used in providing product / service2 It may lead to innovations It is one of goals of innovation in the areas of product, process service or process3 e.g. … Activities of multi e.g. … JIT, CAD, CAM, FMS, functional team for new e-mails, e-CRM product development
  20. 20. Innovation Process Models1. Linear Model – 1.a. Technology Push Model – 1.b. Market Pull Model1. Flexible Innovation Process Model
  21. 21. Linear Innovation Process Models1. Linear Model• Under this model, product or service concept is frozen at early stage so as to minimize risk.• In this model, innovation process in enterprises involves series of sequential phases / steps arranged in such manner that the preceding phase must be cleared before moving to next / succeeding phase.• Thus project must through pass a gate with the permission of a gatekeeper before moving to next / succeeding phase.
  22. 22. Linear Innovation Process Models1. Linear Model … Contd ….• Criteria for passing through each gate and the person at each gate (gate keeper) are defined beforehand.• The gatekeeper examines whethere stated objectives for the preceding phase have been properly met or not & whether desired development has taken place at the preceding phase or not?
  23. 23. Linear Innovation Process ModelsLinear model figure:
  24. 24. Linear Innovation Process ModelsLinear model works well only when• Time required to innovate is shorter than rate of change in environment• Quality, reliability & safety requirements are critical• Safe and suitable for a first time beginnerThis model is generally followed for incremental Innovation. It is linear in the sense that here innovation process is tightly controlled and directed from the beginning itself towards set targets / goals and inputs are controlled to attain desired targets / goals.
  25. 25. Linear Innovation Process ModelsWeakness / Limitations of the linear model are• Low gatekeeper knowledge may lead to poor judgements, delayed evaluation or rejection of good projects• Slow & serial process as it is step by step approach, thus time consuming• Concept frozen too early, however customer needs / market requirements may undergo change subsequently at later stage• Focused on control through gates, not on customer• Long review preparation time• Narrow criteria for evaluation which may be rigid• More focus on attaining target / maturity, less focus on learning
  26. 26. Linear Innovation Process ModelsCommon types of linear model are• 1.a. Technology push model• 1.b. Market pull model
  27. 27. Linear Innovation Process Models1.a. Technology Push model• It is the first generation linear model .• Under this model, technology is regarded as key driver of innovation.• Whenever a new / improved technology emerges, it leads to innovations of new products, services or processes.• Technology Push innovation involves series of sequential steps i.e. Fundamental research (Basic science), Application Research, Design, Engineering, Manufacturing, Marketing & Sales.
  28. 28. Linear Innovation Process ModelsContd…. Technology Push model• User / Consumer is treated as passive recipient of output i.e. it is presumed that if a new / improved product or service, based on new technology, is developed without getting feedback / consulting consumer / user and it is offered to consumer / user, he will accept the new product or service.• Thus the model ignores the consumer needs and market requirements.
  29. 29. Linear Innovation Process Models1.b. Market Pull linear model• This is the second generation linear model.• It includes and integrates user needs in the innovation process.• Here consumer needs / market requirements are regarded as the key driver of innovation process.• Market Pull innovation involves series of sequential steps i.e: Assessing consumer needs / market requirements, Concept /idea generation, Refining idea to atleast meet consumer needs, Design, Engineering, Manufacturing, Test marketing & Sales.• Some examples are : Market Pull Innovations In Phones,UPS, Invertors
  30. 30. Flexible Innovation Process Models2. Flexible Innovation Process Model• Initially, Innovation was deemed to be linear / directed / palnned activity.• Now innovation is regarded also as non-linear and ideas / improvements can emerge from any source and at any stage of innovation process.• The combination of linear & non linearity approaches have led to emergence of Third Generation models which reflect complexity of real innovation process.• These models include Technology Push + Market Pull combination, R&D + Marketing, Cyclical Model etc.•  
  31. 31. Flexible Innovation Process ModelsContd … Flexible Innovation Process Model• The models attempt to explain the radical innovation process in rapidly changing business environment. • In these models, phases are over lapped i.e. development in more than one phase can continue at the same point of time.• No design is locked down earlier than absolute necessary so as not to miss a newly emerging technology or new opportunity.
  32. 32. Flexible Innovation Process ModelsFlexible Innovation Process Model
  33. 33. Flexible Innovation Process ModelsContd … Flexible Innovation Process Model• According to Cycling Model, innovation is cyclical in the sense that it is driven by the product improvement cycle.• This cycle often begins with customer needs.; which keep on changing. Also an enterprises may be working for new product development simultaneously. Thus there are cycles of innovation.
  34. 34. Flexible Innovation Process ModelsContd … Flexible Innovation Process Model• The process of technological innovation involves complex relationships amongst set of key variables like – Inventions, Innovations, Diffusion Paths and Investment Activity.• The complex relations between these variables form a non-linear system with its underlying ramifications which can lead to unexpected & possible chaotic results.• Thus proper interaction & integration between R&D, Manufacturing, Marketing & Other Corporate Functions helps in proper management of Innovation process.
  35. 35. Flexible Innovation Process ModelsContd … Flexible Innovation Process Model
  36. 36. Flexible Innovation Process Modelsa. Advantages• Continuous interaction with market• User needs oriented• More chances of acceptance of product etc• Less risk of failure & resultant after-effectsb. Disadvantages• Chaotic in nature• May become directionless
  37. 37. Innovation Process By Dr. Vijay Kr Khurana

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