Management• “The activity of controlling and organizing thework that a company, a institute, or organizerdoes
Management ofinnovation• ; Innovation management is thediscipline of managing processes ininnovation; it can be used to developboth product and organizationalinnovation.
InnovationManagement• ; The three stages in the process of innovation:invention, translation and commercialization”(Bruce D. Merrifield• invention refers to new concepts or products thatderive from individual’s ideas or from scientificresearch. Innovation, on the other hand, is thecommercialization of the invention itself
Oslo Manual• Product innovation– A good or service that is new or significantly improved. Thisincludes significant improvements in technical specifications,components and materials, software in the product, userfriendliness or other functional characteristics.• Process innovation– A new or significantly improved production or delivery method. Thisincludes significant changes in techniques, equipment and/orsoftware.• Marketing innovation– A new marketing method involving significant changes in productdesign or packaging, product placement, product promotion orpricing.• Organisational innovation– A new organisational method in business practices, workplaceorganisation or external relations.
Technological innovations – based on specifictechnology, invention, discovery,Social innovations – in critical historic periodsmore important than technological ones (mail, educationalsystém, social systém, health care, …)
What to do1. Start with analysis and study of opportunities.2. Go among people, ask questions, listen3. Effective innovations are surprisingly simple.They must be focused on specific needs andon specific final products.4. Effective innovation start on a small scale.5. A successful innovation always tries to win aleading position, otherwise you createopportunities for your competitors.
What to Avoid1. Don’t try to be too “clever”. All that is toosophisticated will almost certainly gowrong.2. Don’t try to do too many things at once.Focus on the core of the problem.3. Don’t try to make innovations for thefuture but for today. An innovation canhave a long-term impact but there mustbe an immediate need for it.
Clayton M. Christensen: The Innovator´s Solution, Harvard Business Press, 2003
OPEN INNOVATION• Chesbrough, H., “Open Innovation”, HarvardBusiness School Publishing, Boston MA, 2003• Closed innovation - requires control• Open innovation– companies use external as well as internal ideas andboth external and internal ways to market– internal ideas can be taken to the market throughexternal channels to generate additional value
Closed innovation Open innovationAll the best people are working for us Not all the best people are working for us .We must work with clever people withinand 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 willbe the first on the market.R&D can create profit even if we do notinitialize and perform it ourselves.Winner is who gets the innovation to themarket first.To develop better business model is moreimportant 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 internaland external ideas.We must have our intellectual propertyunder control so that our competitors canmake advantage of it.We must be able to profit from others usingour intellectual property and we mustlicense the intellectual property if itsupports our business model.
Basic Research• : This is the type of work done atuniversities and some R&D labs. Thereisn’t a clearly defined outcome. The pointis to discover more about how thingswork.
Sustaining Innovation• : This is the type of innovation that Appleexcels at, where there is a clearly definedproblem and a reasonably goodunderstanding of how to solve it.
BreakthroughInnovation:• Thomas Kuhn called this “revolutionaryscience” because it involves aparadigm shift. In this case, the problemis well defined, but the path to the solutionis unclear, usually because those involvedin the domain have hit a wall.
Disruptive Innovation• : Disruptive innovation is particularly trickybecause you don’t know it until you see itand sometimes its value isn’t immediatelyclear. That’s why venture capital firmsexpect the vast majority of theirinvestments to fail.