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1
Chapter 5
Sources of innovation
2
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
3
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
CONTENTS
• Introduction
• Sources
• Search tools & methods
• Innovation search space
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
4
1. SOURCES OF INNOVATION-
INTRODUCTION
5
6
1.1 Climate & Creativity
“Innovation is the specific tool of
entrepreneurs, the means by which they
exploit an opportunity for a different
business or service” – Drucker
• Creativity = ideas, concepts & inventions
• Entrepreneurship = couples opportunities &
resources
• Innovation = process of development &
commercialisation
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
7
Strategies for idea/concept generation:
• research & analysis
• imitate or adapt
• seek inspiration
• consult ‘creative’ types
• apply systematic creativity methods & tools
– Eg:SCAMPERR
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
8
• Eg: China’s imitation of Mercedes:Geely
9
Business creativity training is not:
• logic, research, analysis or intelligence
• artistic creativity / right-brain
• being crazy / a rebel
• removal of structures, inhibitions or fear
• brainstorming or team building
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
10
Attributes of the creative mind:
• conceptual fluency - multiple responses
• mental flexibility - re-frame & change level
• defers judgement - avoid premature
analysis & criticism
• tolerance - accepts ambiguous, diverse or
opposing views
• challenging - assumptions & authority
• risk-taking - high energy, imagination
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
11
Do: Don’t:
develop broad idea collect detailed data
challenge everything accept assumptions
re-frame problem tackle given problem
multiple answers find the answer
consider in-action confuse action & solution
identify obstacles focus on objectives
celebrate success & learn from failure
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
12
Some elements of business creativeness:
• stop, pause, postpone decision or (re)action
• challenge perceptions & assumptions
• provoke & generate alternatives
• construct & test speculations & hypotheses
• focus
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
13
2. SOURCES of INNOVATION
14
2.1 Knowledge push
• Knowledge push(Pengetahuan)
– Innovation that came out from scientific research
– R & D processes
• Eg: Intel chips
• Antibiotics
• CDs
15
2.2 Need pull
• Need Pull(Keperluan)
– “Neccessity is the mother of invention”
– Particularly important at mature stages in
industry/product life cycles
– Eg: Energy saving cars
16
2.3 Shocks to the system
• Whose needs?
– Existing customers
– New & potential customers eg: small
entrepreneurs who want to save costs
• Emerging markets
– “Bottom of the pyramid”-80% under the poverty
line
– Eg: Poverty in Arica-created demand for cheap
food in low prices
17
18
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
2.4 Advertising and mass
customization
• Challenge in markets-buyers want variety and
customization at the same time
• Eg: Rising individuality has opened up new
market for customized products
19
20
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
21
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
2.5 Users as innovators
• Create innovative solutions on a continuing
basis
• Eg: Tech-hobbyists keep on providing ideas on
technological innovations-new models for pc,
phones
22
2.6 Extreme Users
• “Tough customers mean good designs”
• The users in the toughest environments may
have needs which by definition are at edge
• Eg: Military needs inspire more innovations
within the security industry
23
2.7 Watching Others
• Concept of benchmarking
• Eg: Korea manufacturing field that came from
the concept of “copy and develop”
24
2.8 Combination & recombination
• ‘Crossover’
• Combination of industries
• Eg: Nike fashionable shock-absorbing shoes-
combination of arts, health and fitness
industry
25
2.9 Regulation
• Restrict certain things and opens up new ones
• Eg: New tax rules on cigarettes- restricts sales
of cigarettes, opens up new market of ‘fake
cigarettes’ and aids to quit smoking
26
2.10 Futures and forecasting
• Exploring alternatives
• Eg; Exxon and Shell exploring possibilities for
alternatives for oil and gas
27
2.11 Accidents
• Mistakes that turned out to be important
inventions
28
3. TOOLS FOR INNOVATION
SOURCES
29
3.1 Internal knowledge
connections
• Important to recognize that much of the
knowledge lies in the experience and ideas of
ordinary employees rather than solely with
specialists in formal innovation depts like R &
D or market research
• Internal entrepreneurs=“intrapreneurship”
30
3.2 External connections
• Key stakeholders
31
3.3 TOOLS OF INNOVATION
SOURCES-SUMMARY
32
33
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
3.4 Exercise-SCAMPER
• S Substitute- Remove some part of the accepted situation, thing, or concept and replace it
with something else.
• C Combine -Join, affiliate, or force together two or more elements of your subject matter and
consider ways that such a combination might move you toward a solution.
• A Adapt-Change some part of your problem so that it works where it did not before.
• M Minify/Magnify- Consider many of the attribute of the thing you're working on and
change them, arbitrarily, if necessary. Attributes include: size, shape, other dimensions,
texture, color, attitude, position, history, and so on.
• P Purpose (Put to other use)-Modify the intention of the subject. Think about why it exists,
what it is used for, what it's supposed to do. Challenge all of these assumptions and suggest
new and unusual purposes.
• E Eliminate-Arbitrarily remove any or all elements of your subject, simplify, reduce to core
functionality
• R Reverse- Change the direction or orientation. Turn it upside-down, inside-out, or make it go
backwards, against the direction it was intended to go or be used.
• R Rearrange -Similar to Reverse, modify the order of operations or any other hierarchy
involved.
34
• You are a product executive for Perodua and
you need to come up with a new eco-friendly
Perodua model based on Viva. Using
SCAMPERR, invent a new innovative product
suitable for the global market.
35
4. CONCLUSIONS
36
• There are various sources of innovation and
creativity
• Innovation process can be triggered
37

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PPt on Innovation Management and its Sources.ppt

  • 1. 1
  • 2. Chapter 5 Sources of innovation 2 © 2009 John Wiley & Sons Ltd. www.managing-innovation.com
  • 3. 3 © 2009 John Wiley & Sons Ltd. www.managing-innovation.com
  • 4. CONTENTS • Introduction • Sources • Search tools & methods • Innovation search space © 2009 John Wiley & Sons Ltd. www.managing-innovation.com 4
  • 5. 1. SOURCES OF INNOVATION- INTRODUCTION 5
  • 6. 6
  • 7. 1.1 Climate & Creativity “Innovation is the specific tool of entrepreneurs, the means by which they exploit an opportunity for a different business or service” – Drucker • Creativity = ideas, concepts & inventions • Entrepreneurship = couples opportunities & resources • Innovation = process of development & commercialisation © 2009 John Wiley & Sons Ltd. www.managing-innovation.com 7
  • 8. Strategies for idea/concept generation: • research & analysis • imitate or adapt • seek inspiration • consult ‘creative’ types • apply systematic creativity methods & tools – Eg:SCAMPERR © 2009 John Wiley & Sons Ltd. www.managing-innovation.com 8
  • 9. • Eg: China’s imitation of Mercedes:Geely 9
  • 10. Business creativity training is not: • logic, research, analysis or intelligence • artistic creativity / right-brain • being crazy / a rebel • removal of structures, inhibitions or fear • brainstorming or team building © 2009 John Wiley & Sons Ltd. www.managing-innovation.com 10
  • 11. Attributes of the creative mind: • conceptual fluency - multiple responses • mental flexibility - re-frame & change level • defers judgement - avoid premature analysis & criticism • tolerance - accepts ambiguous, diverse or opposing views • challenging - assumptions & authority • risk-taking - high energy, imagination © 2009 John Wiley & Sons Ltd. www.managing-innovation.com 11
  • 12. Do: Don’t: develop broad idea collect detailed data challenge everything accept assumptions re-frame problem tackle given problem multiple answers find the answer consider in-action confuse action & solution identify obstacles focus on objectives celebrate success & learn from failure © 2009 John Wiley & Sons Ltd. www.managing-innovation.com 12
  • 13. Some elements of business creativeness: • stop, pause, postpone decision or (re)action • challenge perceptions & assumptions • provoke & generate alternatives • construct & test speculations & hypotheses • focus © 2009 John Wiley & Sons Ltd. www.managing-innovation.com 13
  • 14. 2. SOURCES of INNOVATION 14
  • 15. 2.1 Knowledge push • Knowledge push(Pengetahuan) – Innovation that came out from scientific research – R & D processes • Eg: Intel chips • Antibiotics • CDs 15
  • 16. 2.2 Need pull • Need Pull(Keperluan) – “Neccessity is the mother of invention” – Particularly important at mature stages in industry/product life cycles – Eg: Energy saving cars 16
  • 17. 2.3 Shocks to the system • Whose needs? – Existing customers – New & potential customers eg: small entrepreneurs who want to save costs • Emerging markets – “Bottom of the pyramid”-80% under the poverty line – Eg: Poverty in Arica-created demand for cheap food in low prices 17
  • 18. 18 © 2009 John Wiley & Sons Ltd. www.managing-innovation.com
  • 19. 2.4 Advertising and mass customization • Challenge in markets-buyers want variety and customization at the same time • Eg: Rising individuality has opened up new market for customized products 19
  • 20. 20 © 2009 John Wiley & Sons Ltd. www.managing-innovation.com
  • 21. 21 © 2009 John Wiley & Sons Ltd. www.managing-innovation.com
  • 22. 2.5 Users as innovators • Create innovative solutions on a continuing basis • Eg: Tech-hobbyists keep on providing ideas on technological innovations-new models for pc, phones 22
  • 23. 2.6 Extreme Users • “Tough customers mean good designs” • The users in the toughest environments may have needs which by definition are at edge • Eg: Military needs inspire more innovations within the security industry 23
  • 24. 2.7 Watching Others • Concept of benchmarking • Eg: Korea manufacturing field that came from the concept of “copy and develop” 24
  • 25. 2.8 Combination & recombination • ‘Crossover’ • Combination of industries • Eg: Nike fashionable shock-absorbing shoes- combination of arts, health and fitness industry 25
  • 26. 2.9 Regulation • Restrict certain things and opens up new ones • Eg: New tax rules on cigarettes- restricts sales of cigarettes, opens up new market of ‘fake cigarettes’ and aids to quit smoking 26
  • 27. 2.10 Futures and forecasting • Exploring alternatives • Eg; Exxon and Shell exploring possibilities for alternatives for oil and gas 27
  • 28. 2.11 Accidents • Mistakes that turned out to be important inventions 28
  • 29. 3. TOOLS FOR INNOVATION SOURCES 29
  • 30. 3.1 Internal knowledge connections • Important to recognize that much of the knowledge lies in the experience and ideas of ordinary employees rather than solely with specialists in formal innovation depts like R & D or market research • Internal entrepreneurs=“intrapreneurship” 30
  • 31. 3.2 External connections • Key stakeholders 31
  • 32. 3.3 TOOLS OF INNOVATION SOURCES-SUMMARY 32
  • 33. 33 © 2009 John Wiley & Sons Ltd. www.managing-innovation.com
  • 34. 3.4 Exercise-SCAMPER • S Substitute- Remove some part of the accepted situation, thing, or concept and replace it with something else. • C Combine -Join, affiliate, or force together two or more elements of your subject matter and consider ways that such a combination might move you toward a solution. • A Adapt-Change some part of your problem so that it works where it did not before. • M Minify/Magnify- Consider many of the attribute of the thing you're working on and change them, arbitrarily, if necessary. Attributes include: size, shape, other dimensions, texture, color, attitude, position, history, and so on. • P Purpose (Put to other use)-Modify the intention of the subject. Think about why it exists, what it is used for, what it's supposed to do. Challenge all of these assumptions and suggest new and unusual purposes. • E Eliminate-Arbitrarily remove any or all elements of your subject, simplify, reduce to core functionality • R Reverse- Change the direction or orientation. Turn it upside-down, inside-out, or make it go backwards, against the direction it was intended to go or be used. • R Rearrange -Similar to Reverse, modify the order of operations or any other hierarchy involved. 34
  • 35. • You are a product executive for Perodua and you need to come up with a new eco-friendly Perodua model based on Viva. Using SCAMPERR, invent a new innovative product suitable for the global market. 35
  • 37. • There are various sources of innovation and creativity • Innovation process can be triggered 37