4. technology innovation

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This document discusses various approaches to technological innovation processes and concepts of innovation from several scholars over time. It describes early linear models of innovation from the 1940s and evolving interactive models from the 1980s-1990s. It also summarizes Peter Drucker's concepts of systematic innovation and seven sources of innovative opportunities. Finally, it outlines John Kamm's four dimensions of innovation: form, function, extent, and timing.

MSE602
ENGINEERING INNOVATION MANAGEMENT

TECHNOLOGY INNOVATION
TECHNOLOGICAL INNOVATION PROCESSES
APPROACHES TO INNOVATION CONCEPTS

TECHNOLOGICAL INNOVATION
PRODUCT-ORIENTED CONVERSION PROCESS
(pre-WW II, per Twiss)

TECHNOLOGICAL INNOVATION
TECHNOLOGY/MARKET-ORIENTED CONVERSION PROCESS
(post-WW II, per Twiss)

TECHNOLOGICAL INNOVATION
THREE-PHASE PROCESS
(by early 1980s, per Walcoff)

TECHNOLOGICAL INNOVATION
COUPLING PROCESS
(by early 1980s, per Rothwell)

TECHNOLOGICAL INNOVATION
INTEGRATIVE PROCESS
(late 1980s, per Kamm)

TECHNOLOGICAL INNOVATION
INTEGRATIVE PARALLEL PROCESS
(late 1980s, per Graves)

TECHNOLOGICAL INNOVATION
INTEGRATIVE SYSTEM PROCESS
(early 1990s, per Bursic & Cleland)

APPROACHES TO INNOVATION
CONCEPTS
SYSTEMATIC INNOVATION
(Drucker)
“… systematic innovation … consist of the
purposeful and organized search for changes,
and in the systematic analysis of the opportunities
such changes might offer …”

APPROACHES TO INNOVATION
CONCEPTS
SOURCES OF INNOVATIVE OPPORTUNITY
(Drucker–1)
1) The unexpected
2) Incongruity
3) Process need
4) Industry/market structure
5) Demographics
6) Perception
7) New knowledge

APPROACHES TO INNOVATION
CONCEPTS
SOURCES OF INNOVATIVE OPPORTUNITY
(Drucker–2)
1) THE UNEXPECTED
The product, process, etc. for which there were no great
expectations yet it did very well; the product process, etc. for
which there was every reason to expect success yet it failed; an
unanticipated market opens up.
2) INCONGRUITY
When demand grows steadily but profitability does not; some
portion of a process that seems awkward; when producers,
suppliers, etc. have arrogant beliefs about what is needed or
wanted.

APPROACHES TO INNOVATION
CONCEPTS
SOURCES OF INNOVATIVE OPPORTUNITY
(Drucker–3)
3) PROCESS NEED
Task-focused; perfecting a process that already exist, replacing a
link that is weak, redesigning a process around new knowledge,
making possible a process by supplying the missing link.
4) INDUSTRY/MARKET STRUCTURE
Rapid growth of an industry; viability of the traditional market
definition and segmentation; convergence of technologies; the
way business is done is changing rapidly.

APPROACHES TO INNOVATION
CONCEPTS
SOURCES OF INNOVATIVE OPPORTUNITY
(Drucker–4)
5) DEMOGRAPHICS
Changes in the population; its size, composition, employment,
educational status, age structure, income, etc.
6) PERCEPTION
When a change in perception takes place, the facts do not
change, but their meaning does.

APPROACHES TO INNOVATION
CONCEPTS
SOURCES OF INNOVATIVE OPPORTUNITY
(Drucker–5a)
7) NEW KNOWLEDGE
The “super-star” of entrepreneurship and innovation; the
knowledge is not necessarily scientific or technical; amongst
history-making innovations, knowledge-based innovations rank
high.
CHARACTERISTICS OF KNOWLEDGE-BASED INNOVATIONS
(1) The longest lead time of all innovations (e.g., 25-30 years)
(2) Almost always based on the convergence of several different kinds of
knowledge

APPROACHES TO INNOVATION
CONCEPTS
SOURCES OF INNOVATIVE OPPORTUNITY
(Drucker–5b)
7) NEW KNOWLEDGE (CON’T)
SPECIFIC REQUIREMENTS OF KNOWLEDGE-BASED
INNOVATION:
(1) Careful analysis of all of the necessary factors
(2) A clear focus on the strategic position
(3) Ability to learn and practice entrepreneurial management

APPROACHES TO INNOVATION
CONCEPTS
SOURCES OF INNOVATIVE OPPORTUNITY
(Drucker–5c)
7) NEW KNOWLEDGE (CON’T)
UNIQUE RISKS OF KNOWLEDGE-BASED INNOVATION:
(1) The window of opportunity for establishing a position is small
(2) A “shake-out” sets in as soon as the window of opportunity
closes
(3) There must be receptivity to the knowledge-based innovation

APPROACHES TO INNOVATION
CONCEPTS
INNOVATION DIMENSIONS
(Kamm)
FORM
FUNCTION
EXTENT
TIMING

APPROACHES TO INNOVATION
CONCEPTS
INNOVATION DIMENSIONS
(Kamm - 1)
Generation or adoption of:
- Technology
(product, process service)
- Market
(users, buyers, clients)
- Organization
(structure, function)
FORM

APPROACHES TO INNOVATION
CONCEPTS
INNOVATION DIMENSIONS
(Kamm - 2)
Improves quality
Reduces cost
Performs new functions
Enhances current market attractiveness
Increases current market offerings
Enters market not currently served
Improves learning curve
Enhances economies of scale
Permits production of better-quality offering
Enhances human growth and potential
FUNCTION

APPROACHES TO INNOVATION
CONCEPTS
INNOVATION DIMENSIONS
(Kamm - 3)
EXTENT

APPROACHES TO INNOVATION
CONCEPTS
INNOVATION DIMENSIONS
(Kamm - 4)
(introduction or adoption)
First-to-market
Quick second
Quick third
Late follower
TIMING

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4. technology innovation

1. MSE602 ENGINEERING INNOVATION MANAGEMENT

2. TECHNOLOGY INNOVATION TECHNOLOGICAL INNOVATION PROCESSES APPROACHES TO INNOVATION CONCEPTS

3. TECHNOLOGICAL INNOVATION PRODUCT-ORIENTED CONVERSION PROCESS (pre-WW II, per Twiss)

4. TECHNOLOGICAL INNOVATION TECHNOLOGY/MARKET-ORIENTED CONVERSION PROCESS (post-WW II, per Twiss)

5. TECHNOLOGICAL INNOVATION THREE-PHASE PROCESS (by early 1980s, per Walcoff)

6. TECHNOLOGICAL INNOVATION COUPLING PROCESS (by early 1980s, per Rothwell)

7. TECHNOLOGICAL INNOVATION INTEGRATIVE PROCESS (late 1980s, per Kamm)

8. TECHNOLOGICAL INNOVATION INTEGRATIVE PARALLEL PROCESS (late 1980s, per Graves)

9. TECHNOLOGICAL INNOVATION INTEGRATIVE SYSTEM PROCESS (early 1990s, per Bursic & Cleland)

10. TECHNOLOGY INNOVATION TECHNOLOGICAL INNOVATION PROCESSES APPROACHES TO INNOVATION CONCEPTS

11. APPROACHES TO INNOVATION CONCEPTS SYSTEMATIC INNOVATION (Drucker) “… systematic innovation … consist of the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer …”

12. APPROACHES TO INNOVATION CONCEPTS SOURCES OF INNOVATIVE OPPORTUNITY (Drucker–1) 1) The unexpected 2) Incongruity 3) Process need 4) Industry/market structure 5) Demographics 6) Perception 7) New knowledge

13. APPROACHES TO INNOVATION CONCEPTS SOURCES OF INNOVATIVE OPPORTUNITY (Drucker–2) 1) THE UNEXPECTED The product, process, etc. for which there were no great expectations yet it did very well; the product process, etc. for which there was every reason to expect success yet it failed; an unanticipated market opens up. 2) INCONGRUITY When demand grows steadily but profitability does not; some portion of a process that seems awkward; when producers, suppliers, etc. have arrogant beliefs about what is needed or wanted.

14. APPROACHES TO INNOVATION CONCEPTS SOURCES OF INNOVATIVE OPPORTUNITY (Drucker–3) 3) PROCESS NEED Task-focused; perfecting a process that already exist, replacing a link that is weak, redesigning a process around new knowledge, making possible a process by supplying the missing link. 4) INDUSTRY/MARKET STRUCTURE Rapid growth of an industry; viability of the traditional market definition and segmentation; convergence of technologies; the way business is done is changing rapidly.

15. APPROACHES TO INNOVATION CONCEPTS SOURCES OF INNOVATIVE OPPORTUNITY (Drucker–4) 5) DEMOGRAPHICS Changes in the population; its size, composition, employment, educational status, age structure, income, etc. 6) PERCEPTION When a change in perception takes place, the facts do not change, but their meaning does.

16. APPROACHES TO INNOVATION CONCEPTS SOURCES OF INNOVATIVE OPPORTUNITY (Drucker–5a) 7) NEW KNOWLEDGE The “super-star” of entrepreneurship and innovation; the knowledge is not necessarily scientific or technical; amongst history-making innovations, knowledge-based innovations rank high. CHARACTERISTICS OF KNOWLEDGE-BASED INNOVATIONS (1) The longest lead time of all innovations (e.g., 25-30 years) (2) Almost always based on the convergence of several different kinds of knowledge

17. APPROACHES TO INNOVATION CONCEPTS SOURCES OF INNOVATIVE OPPORTUNITY (Drucker–5b) 7) NEW KNOWLEDGE (CON’T) SPECIFIC REQUIREMENTS OF KNOWLEDGE-BASED INNOVATION: (1) Careful analysis of all of the necessary factors (2) A clear focus on the strategic position (3) Ability to learn and practice entrepreneurial management

18. APPROACHES TO INNOVATION CONCEPTS SOURCES OF INNOVATIVE OPPORTUNITY (Drucker–5c) 7) NEW KNOWLEDGE (CON’T) UNIQUE RISKS OF KNOWLEDGE-BASED INNOVATION: (1) The window of opportunity for establishing a position is small (2) A “shake-out” sets in as soon as the window of opportunity closes (3) There must be receptivity to the knowledge-based innovation

19. APPROACHES TO INNOVATION CONCEPTS INNOVATION DIMENSIONS (Kamm) FORM FUNCTION EXTENT TIMING

20. APPROACHES TO INNOVATION CONCEPTS INNOVATION DIMENSIONS (Kamm - 1) Generation or adoption of: - Technology (product, process service) - Market (users, buyers, clients) - Organization (structure, function) FORM

21. APPROACHES TO INNOVATION CONCEPTS INNOVATION DIMENSIONS (Kamm - 2) Improves quality Reduces cost Performs new functions Enhances current market attractiveness Increases current market offerings Enters market not currently served Improves learning curve Enhances economies of scale Permits production of better-quality offering Enhances human growth and potential FUNCTION

22. APPROACHES TO INNOVATION CONCEPTS INNOVATION DIMENSIONS (Kamm - 3) EXTENT

23. APPROACHES TO INNOVATION CONCEPTS INNOVATION DIMENSIONS (Kamm - 4) (introduction or adoption) First-to-market Quick second Quick third Late follower TIMING

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