The document discusses the evolution of innovation through five generations of models from the 1950s to present. The first generation emphasized technology push through R&D. The second focused on market pull to meet needs. The third balanced technological opportunities with societal needs. The fourth optimized product life cycles through integrated processes. The fifth generation emphasizes open innovation through external partnerships and networks. The document then provides examples of open innovation through companies like InnoCentive that crowdsource solutions.

1. The Amaté platform
- Preliminary Draft -
Innovation Management
March 30, 2016
Introduction Open Inno Case StudiesGenerations

2. Agenda
I. Context
II. Five generations
III. Open Innovation
IV. Case Studies
Introduction Open Inno Case StudiesGenerations

3.  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 Open Inno Case StudiesGenerations

4. 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
Introduction Open Inno Case StudiesGenerations

5. History
1950/60s Technology push Simple linear sequential process. Emphasis on
R&D. The market is a receptacle for the fruits
of R&D.
1970s Market-pull Simple linear sequential process. Emphasis on
marketing. The market is the source for
directing R&D. R&D has a reactive role.
1980s Coupling model Sequential, but with feedback loops.
Combinations of push and pull.
1980/90s Interactive model Emphasis on integrating R&D and marketing.
1990s Network models Emphasis on external linkages
Introduction Open Inno Case StudiesGenerations

6.  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
First Generation
Roy Rothwell
Introduction Open Inno Case StudiesGenerations
Laser Technologies

7.  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
Second Generation
Roy Rothwell
Introduction Open Inno Case StudiesGenerations
Telephones, Baidu

8.  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
3rd Generation
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
Introduction Open Inno Case StudiesGenerations
Mountain bikes,
ATMs

9. 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
Fourth Generation Roy Rothwell
Introduction Open Inno Case StudiesGenerations
Nissan

10. Fifth
Generation
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

11.  From the late 1990’s onwards, resource constraints
became central
 Focus was on systems integration and networking
 Being a “fast innovator” is seen increasingly a critical
success factor
 Emphasis on vertical and horizontal linkages with
suppliers and customers
 Technological innovation is not sequential, but both
by nature complex
Integration and Networking
Introduction Open Inno Case StudiesGenerations

12. The use of purposive inflows and outflows of
knowledge to accelerate internal innovation,
and expand the markets for external use of
innovation, respectively.
Open Innovation
Introduction Open Inno Case StudiesGenerations

13. • 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 Open Inno Case StudiesGenerations

14. 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.
Introduction Open Inno Case StudiesGenerations

15. Source: Adapted from M. Cooley (1987) Architect or Bee? The Human Price of Technology, Hogarth Press, London.
The Tangibility of Knowledge
Introduction Open Inno Case StudiesGenerations

16. Trott, Innovation Management and New Product Development, 5th Edition, © Pearson Education Limited 2013
Scanning and association
Introduction Open Inno Case StudiesGenerations

17. Trott, Innovation Management and New Product Development, 5th Edition, © Pearson Education Limited 2013
Systems of knowledge-transfer
Introduction Open Inno Case StudiesGenerations

18. • 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. SCHLENKERIntroduction Open Inno Case StudiesGenerations

19. • 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. SCHLENKERIntroduction Open Inno Case StudiesGenerations