Managing innovation and new product development is important for long-term competitive advantage. There are two types of internal corporate venturing: autonomous strategic behavior and induced strategic behavior. Autonomous behavior is bottom-up innovation led by a product champion, while induced behavior is top-down innovation driven by corporate strategy. Product champions play a key role in developing innovations, getting products to market, and keeping products fresh. Corporate entrepreneurship encourages innovation within established companies. Technology management involves setting technology strategies, forecasting new technologies, creating technology roadmaps, and managing technology project portfolios.

1. Cebu Technological University –
College of Management and Entrepreneurship
ABM 3: Business Marketing
CHAPTER 9:
Managing Innovation and New Industrial Product
Development
The long-term competitive position of most organizations is tied to their ability to
innovate—to provide existing and new customers with a continuing stream of new
products and services. Innovation is a high-risk and potentially rewarding process.
After reading this chapter, you will understand:
1. the strategic processes, both formal and informal, through which product
innovations take shape.
2. the characteristics of innovation winners in high-technology markets.
3. the factors that drive a firm’s new product performance.
4. the determinants of new product success and timeliness.
The Management of Innovation

2. Management practices in successful industrial firms reflect the realities of the innovation
process itself. A management innovation can be defined as a marked departure from traditional
management principles, processes, and practices or a departure from customary organizational
forms that significantly alters the way the work of management is performed. Put simply,
management innovation changes how managers do what they do. And what do managers do?
Typically,managerial work.
Research suggests that strategic activity within a large organization falls into two
broad categories: induced and autonomous strategic behavior. Autonomous strategic
behavior and induced strategic behavior are the two forms of internal corporate venturing.
Autonomous Strategic Behavior
Autonomous strategic behavior is a bottom up process through which a product champion
facilitates the commercialization of an innovative good or service..
An example would be the iPod. It was developed through manpower and engineering capabilities
of company’s employees.
Induced Strategic Behavior
Induced strategic behavior is a top-down process in which a firm’
s current strategy and structure
facilitate product or process innovations that are associated with them. This process is consistent
with the company's strategies that are already used.
An example of this would be the iPhone. Manpower was used to develop a sophisticated
cellphone that can continue to rate above the competition in the market.
Thus, induced strategic behavior is driven by the organization’s current corporate strategy and
structure while autonomous strategic behavior can result in a change to the firm’s current
strategy and structure arrangements.
Of these two types, the most profitable would be induced strategic behavior because no
additional cost is needed to be a part of the output. It is helpful to the manpower as well as to
the management.
Product Championing and the Informal Network

3. A product champion as "a person who takes an inordinate interest in
seeing that a particular process or product is fully developed and
marketed." While this is an excellent definition, it should be added that
product champions have the power to make or break a product.. A product
champion is an organization member who creates, defines, or adopts an idea for
an innovation and is willing to assume significant risk (for example, position or
prestige) to successfully implement the innovation.
A product champion is someone who sees value in a product, and creates and develops
the product in a systematic fashion. The product champion entices decision makers to
invest, sell or promote the product. The product champion also keeps the product in
consumer's minds.
 A product champion’s role doesn’t stop once the product is established and on
the market. Keeping the product fresh in the minds of the consumer is another
role they take on. One way a product champion will maintain the product is
through product innovation.
 Product innovation is an improvement to a previous product or service that
meaningfully enhances the value of it to consumers. In the tech space, there
are numerous examples of product innovation; cell phones, computers,
televisions and even Blu-ray that will eventually phase out DVD’s just as DVD’s
did to VHS. Just as one product is introduced, a new and improved version of it
hits the market.
 At the end of the day, a product champion is the pioneer of a new product;
developing it, getting it in front of people, putting it on the market and keeping it
updated.
What Is corporate entrepreneurship?

4. Corporate entrepreneurship is an approach that enables employees to
pursue novel business opportunities while working within an established
organization. This strategy encourages innovative ideas and risk taking,
allowing the company to build new businesses, products, and
processes. It connects the start-up mindset with the capital and assets of
a well-established company.
What Motivates Entrepreneurs?
Recent research identifies two additional dimensions that motivate corporate
entrepreneurs: (1) intrinsic motivation (the drive originating within oneself)
and (2) work design (for example, the availability of challenging projects;
opportunities to interact directly with customers and other entrepreneurs).
Intrinsic Motivation Examples
 Playing sports because you enjoy how they make you feel
 Staying longer at work because you believe in your work
 Using positive affirmations because you want to change your mindset positively
 Investing money because you want to become financially independent
What is technology management?

5. Technology management or management of technology (MOT) can be viewed
from many different perspectives since the word technology itself is subject to
various interpretations.
In fact, though technology management is a major business component in
and of itself, the framework of technology management is composed of four
key concepts.
1. Technology Strategy
Technology strategy refers to the role of technology in a company or
organization. In this undertaking, organizations examine the logic of how
technology will aid business growth.
Technology management of this kind entails setting objectives and
brainstorming tactics for achieving your particular business goals.
Technology is the primary focus here.
For example, a company may decide that in turn for creating their own
technology they will improve upon previously established innovations.
In utilizing this strategy they can avoid the risk associated with inventing new
technology.
Another company may decide to do the opposite, taking on the exchange in
turn for the prospect of large capital gains.
A technology management team will be culpable for these sorts of
decisions.
2. Technology Forecasting
In technology forecasting, businesses identify technologies that can be
beneficial to them. Crucial to this procedure is carefully observing the
technological environment.

6. Businesses have to be on the lookout for the development of new technology
as well as new methodologies and approaches related to their current and
upcoming technology.
Historically, technology forecasting originated in the 1960s. There are
numerous methods of technological forecasting, the Delphi method being one
of the most popular.
3. Technology Roadmap
Technology road-mapping concerns itself with mapping the different
ways in which technology can be used.
This concept puts planning at the center of technology management. Both
technology strategy and technology road-mapping can play a role in
technology road-mapping.
For instance, a company whose technology strategy is to build upon existing
technology will need to start mapping short and/or long-term goals for such
technology.
Technology roadmap will be necessary for identifying the distinct
technologies that can be of use.What companies map will vary widely
depending on market needs.
.
4. Technology Project Portfolio
A technology project portfolio encompasses all the technology projects
that a business has in development along with all the technologies
currently in use.Technology management’s function in building a portfolio
includes recognizing its strengths and weaknesses, figuring out what takes
priority, and designating resources amongst other functions.
Businesses use technology project portfolios to invest smartly and
capitalize on returns.