This document discusses technology and innovation in three main paragraphs: 1) It introduces different types of innovation including product, process, marketing, organizational, and business model innovation. 2) It discusses several frameworks for understanding the evolution of innovation from a technology push approach to more open innovation models. 3) It provides examples of companies that have successfully implemented open innovation approaches including InnoCentive, Spotify, Nissan, and ATMs.

1. Technology and Innovation
http://DSign4Methods.com
Innovation
February 23 2017
Introduction

2. Introduction
©2016 L. SCHLENKER
Agenda
Introduction
Context
Five Generations
Open Innovation
Innovation

3. 3
Date Subject
23 February Introduction
23 February Innovation
10 March Technology
10 March Management Decision Making
11 March Social Business
How does information technology
contribute to business innovation in
the digital economy?
©2016 LHST sarl
Introduction

4. Giffgaff - gaelic for mutual giving
reflected in their manifesto
Social CRM : member gets member,
eVouchers, goodybags
Customer service is member driven
Giffgaff labs – crowdsourcing product
testing
Payback for miles, cash or charities
Introduction

5. ©2016 LHST sarl
Introduction
I. Unexpected Occurrences
II. Incongruities
III. Process Needs
IV. Industry and Market Changes
V. Demographic Changes
VI. Changes in Perception
VII. New Knowledge
Innovative ideas come from methodically analyzing seven areas of
opportunity….
Within a company/industry
Social and Intellectual
Environment
The Discipline of Innovation
Peter F. Drucker

6. Economic development consists of three
distinguishable stages of invention, innovation and
imitation
An ’invention’ is an idea, a sketch or model for a
new or improved device, product, process or
system.
An ’innovation’ is accomplished with the
commercial transactions of the product, process,
system or device.
Joseph Schumpeter
Introduction

7. ©2016 L. SCHLENKER
Product innovation, which involves the introduction of
a new good or service that is substantially improved.
Process innovation involves the implementation of a
new or significantly improved production or delivery
method.
Marketing innovation is the development of new
marketing methods with improvement in product
design or packaging, product promotion or pricing.
Organizational innovation (also referred to as social
innovation) involves the creation of new organizations,
business practices, ways of running organizations or
new organizational behavior.
Business Model innovation involves changing the way
business is done
Introduction

8. Julien Birkinshaw
Introduction
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Technological Product Business / business
model
Strategy / strategic Organizational /
organisational
Administrative Management
Numberofhits

9. Bessant and Tidd (2007)
◦ Product innovation: changes in the things which an
organization offers
◦ Process innovation: changes in the ways in which they
are created an delivered
◦ Position innovation: changes in the context in which the
product or services are introduced
◦ Paradigm innovation: changes in the underlying mental
modes of what an organization does
©2016 L. SCHLENKER
Introduction
https://padlet.com/leeschlenker/Laas

10. Introduction
• Place - changes in geography, time, physical
resources and budget
• Platform – enriching how information is produced
and consumed
• People – modifying the frame of reference
• Practice - impacting the reality of management
Schlenker (2015)

11. Tidd et al. (2005)
©2016 L. SCHLENKER

12. Introduction
From 1950 to the mid-1960’s, fast
economic growth allowed for a strong
‘technology push’
Companies focused predominantly on
scientific breakthroughs
Innovation is a simple linear process
with emphasis on R&D
Market information (customer demands)
are integrated very late in the process
Roy Rothwell
Laser Technologies

13. The mid 1960’s to early 1970 were
characterized by a ‘market shares battle’
Because of increasing competition, companies
to shift their development focus to a ‘need
pull’
The central focus is responding to the
market’s needs.
Too much emphasis on improving existing
products to meet market needs
Roy Rothwell
Telephones, Baidu
Introduction

14. Introduction
From the mid 1970’s to the mid-
1980’s are marked by inflation and
stagflation
Strategic focus was on corporate
consolidation and product
portfolios’
R&D and marketing play a
balanced role in cost reductions
The focus is on technological
opportunities rather than societal
needs
Research
Knowledge
Potential
market
Invent and/or
produce
analytic
design
Detailed
design and
test
Redesign
and
product
Distribute
and
market
D I S
D: Direct link to and from researchfrom problems ininvention and design
I: Support ofscientific research by instruments, machines, tools
S: Support of researchinsciences underlying the product areas
K K K
Roy Rothwell
ATMs

15. ©2016 L. SCHLENKER
Marketing
R&D
Product
development
Components
manufacture
Product
manufacture
Early 1980’s to the mid-90’s the central theme became
optimizing product life cycles.
Focus was on integrated processes to develop ‘total concepts’
More emphasis on the role of feedback and the cross-
functional character of innovation
Emphasizes on concurrent learning with customers and
suppliers
Nissan

16. EXTERNAL INPUTS:
societal needs;
competitors;
supplier partnerships;
distributors;
customers;
strategic alliances.
EXTERNAL INPUTS:
scientific and technological
development;
competitors;
suppliers;
customers;
university departments.
Organisation and
business strategy
EXTERNAL INPUTS:
macro factors
ROI
costs;
competition.
Organisation’s
knowledge base
accumulates
knowledge
over
time
New products
Source: Trott, 2005
Spotify and the
music industry
Introduction

17. The use of purposive inflows and outflows of
knowledge to accelerate internal innovation, and
expand the markets for external use of
innovation, respectively.
Introduction

18. • InnoCentive is an "open innovation" company
that tackles research an development problems
• Open Innovation suggests that innovation is
more likely to come from a community than from
an organization
• The model addresses problems in
engineering, computer science, math, the
physical sciences and business.
• Cash awards are given for solving challenge
problems typically from $10,000 to $100,000.
Introduction

19. ©2016 L. SCHLENKER
Closed innovation Open innovation
All the best people are working for us Not all the best people are working for us . We
must work with clever people within and
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 will be
the first on the market.
R&D can create profit even if we do not
initialize and perform it ourselves.
Winner is who gets the innovation to the
market first.
To develop better business model is more
important 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 internal
and external ideas.
We must have our intellectual property under
control so that our competitors can make
advantage of it.
We must be able to profit from others using
our intellectual property and we must license
the intellectual property if it supports our
business model.

20. • What if the devices “completely go away
to be absorbed into the fabric of our lives?”
• Smart pills are an example of ambient
technologies that integrate into our
environments
• These Invisibles will create a world in
which we don’t see technology or sensors
• Can technology become human –
reacting to what makes each one of us
unique?
http://youtu.be/-hhOtjdkU34
©2014 L. SCHLENKER
Introduction

21. • Uses fashion and IT to create
responsive clothes offering therapeutic
value
•Scents as tools to improve mental and
physical wellbeing
• A localized ‘scent cloud’ is released to
fit specific moods
• Goal is unlock emotional memories and
to complement mood monitoring tools for
the ‘Quantified Self’
Dr Jenny Tillotson
©2014 L. SCHLENKER
Introduction