This document provides an agenda and overview for a session on digital technologies and innovation. The agenda includes introductions on the building blocks, sources, and practice of innovation. It discusses Peter Drucker's views on where innovative ideas come from by analyzing opportunities within companies, industries, and the social environment. It also summarizes theories on innovation from Joseph Schumpeter, who distinguished invention, innovation and imitation, and from Birkinshaw, who categorized types of innovation. The document outlines frameworks for innovation from Bessant and Tidd, Tidd et al., and Rothwell's five models of the innovation process. It discusses open innovation models like InnoCentive and examples from Spotify and Giffgaff. It concludes with perspectives

1. Digital Technologies and Innovation
Innovation
April 2019
http://DSign4Methods.com

2. 2
Innovation is a State of Mind
©2019 LHST sarl
Introduction
Session 1 The Building Blocks
Session 2 Innovation
Session 3 Digital Economics
Session 4 The Internet of Value
Session 5 Decision Making
Session 6 Data Ethics

3. Agenda
Introduction
The Sources of Innovation
The 4Ps of Innovation
The Practice of Innovation
Introduction

4. ©2019 LHST sarl
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

5. 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

6. ©2019 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

7. Julien Birkinshaw
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
Introduction

8. Introduction

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
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https://padlet.com/leeschlenker/Laas
Introduction

10. • Properties - digital experiences put in place to
enrich organizational conversations
• Platforms – digital technologies that create
proximity between those that produce, and those
that consume, experience
• People – the managerial mindset
• Practice - the operational realities of management
Schlenker (2015)
Introduction

11. Tidd et al. (2005)
©2019 L. SCHLENKER
Introduction

12. 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
Introduction

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. 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
Introduction

15. ©2019 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 Introduction

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

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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. 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

21. • 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
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Introduction

22. • 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