The document provides an overview of innovation and innovation management. It discusses key concepts such as defining innovation, why innovation matters for companies, different types of innovation, and models of the innovation process. The summary is: The document defines innovation, discusses its importance for competitive advantage and growth, and outlines different types of innovation including product, process, and business model innovation. It also examines linear and interactive models of innovation and introduces innovation management as turning inventions into innovations for sustained competitive advantage. An extensive outline is then provided on topics such as the concept of innovation, models of innovation, and innovation as a management process.

1. Theme 1
The Concept of Innovation
and Innovation Management
Managing Innovation

2. A few worlds about the course

3. An extensive library of additional case material to
deepen your understanding of innovation and
entrepreneurship

4. A wealth of multimedia resources to
bring the real world into the classroom

5. A set of practical, interactive tools to aid
the implementation of innovation and
entrepreneurship

6. Outline
1. Innovation – what it is and why does it
matters
2. Models of innovation
3. Innovation as a management process

7. Innovation – what is and why does it matters
innovation is …
• new stuff
• that adds value
• for various stakeholders
• can be monetized
• creates a competitive advantage
• and is sustainable
• until the advantage erodes

8. Innovation – what is and why does it matters
 Innovation is…
 “the process of turning opportunity into new ideas and
of putting these into widely used practice” (Tidd &
Bessant, 2009)
 “the management of all the activities involved in the
process of idea generation, technology development,
manufacturing and marketing of a new (or improved)
product[/service]” (Trott, 2008)
 “not just the conception of a new idea, nor the invention
of a new device, nor the development of a new market.
The process is all these things acting in an integrated
fashion” (Myers & Marquis, 1969)

9. Innovation – what is and why does it matters
 Innovative companies are more…
 …Adaptable
• Flexible strategy, structure, culture
 …Competitive
• Better processes, services,
business models

10. Innovation – what is and why does it matters

11. Innovation – what is and why does it matters
Nikolai Kondratieff / Joseph Schumpeter
• “virtually all of the economic growth that has
occurred since the eighteenth century is
ultimately attributable to innovation”
• Schumpeter’s “Creative Destruction”

12. Innovation – what is and why does it matters
 Incremental
 What we already do,
but better
 Sustaining
 Rules of the game
remain the same
 Radical
 New to the world
 Disruptive
 Game Changer for
Market or Industry
Technoology
Market Status Quo

13. Innovation – what is and why does it matters
 Product / Service Innovation
 Innovate in WHAT we do
 Process Innovation
 Innovate in HOW we do it
 Paradigm / Business Model Innovation
 Innovate in HOW we make money
 Position Innovation
 Innovate in marketing mix and strategy
WHERE, WHO, HOW MUCH

14. Innovation – what is and why does it matters

15. Models of innovation
Linear Models
1950/60s – Technology Push
Manufacturing Marketing
Research &
Development
1970s – Market Pull
Marketing Manufacturing
Research &
Development

16. Models of innovation
1980s
Simultaneous Coupling Model
Marketing
Manufacturing
Research &
Development

17. Models of innovation
Interactive Model

18. Models of innovation

19. Models of innovation
The chronological development of models of innovation

20. Innovation as a management process
Innovation management:
The process of creating and implementing a
business design surrounding a creative
idea, with the goal of transforming an
invention into an innovation, and
ultimately to achieving sustained
competitive advantage, leading to growth
and profit, in the marketplace.

21. Innovation as a management process