INNOVATION AND DEVELOPMENT

Transcription

1 INNOVATION AND DEVELOPMENT Helle Alsted Søndergaard, Associate professor Department of Management Aarhus BSS, Aarhus University

2 AGENDA Defining innovation Innovation in context of strategy... of business models of creating value for customers/users of competences... of creativity... of processes

3 WHAT IS INNOVATION? Innovation is the commercialization of an idea/invention (Schumpeter, 1934)

4 AN EXAMPLE Inventer: Brian Vang Innovation = idea + commercialization Designer: Erik Bagger

5 INNOVATION IN A BROADER PERSPECTIVE Innovation is the process of turning ideas into reality & capturing value from them Tidd & Bessant (2013)

6 DEGREE OF INNOVATION Do something different Application innovation Radical innovation High Customer benefit Incremental innovation Technical innovation Tidd & Bessant (2013) Do what we do, but better Low Technological/resource change Gobeli & Brown (1987)

7 Changes in the underlying mental models which frame what the organization does Changes in the things an organization offers Changes in the ways they are created and delivered 2009 John Wiley & Sons Ltd. Changes in the context they are introduced

8 INNOVATION IN CONTEXT 2009 John Wiley & Sons Ltd.

9 THE IMPORTANCE OF STRATEGY AND PROCESSES u Successful innovation demands well planned strategies and implementation processes. u Why? Because it can take 3000 raw ideas to get one commercial success! Stevens & Burley (1997)

10 SRATEGY IS RESSOURCE ALLOCATION! Important questions to ask The R&D strategic decision-making process, Trott (2008)

11 INNOVATION STRATEGY, PISANO (2015)

12 BUSINESS MODEL CANVAS Osterwalder & Pigneur

13 CREATE VALUE FOR YOUR CUSTOMERS! Who are your customers? Who are your users? Segments? How are you creating value for them? How can you create value for them and others? How is your business model?

14 THE INNOVATION AMBITION MATRIX Nagji, B., & Tuff, G. (2012). Managing your innovation portfolio. Harvard Business Review, 90(5), Resource allocation (investment) 10% 20% 70% Return on investment 70% 20% 10%

15 CORE COMPETENCES Core competences are the knowledge set that distinguishes and provides a competitive advantage Four dimensions: 1. Employee knowledge and skills 2. Embedded in technical systems 3. Guided by managerial systems 4. Values and norms associated with all the above Technical systems Skills and knowledge base Values and norms Managerial systems Leonard-Barton (1992)

16 WHEN CORE COMPETENCES BECOME CORE RIGIDITIES u Core competences can both foster and hinder innovation u Beliefs and behaviours rooted in past successes Leonard-Barton (1992)

17 THE ALIGNMENT OF PROJECTS WITH CORE COMPETENCES Core competence 1 Projects A-D A B D C Core competence 2 Leonard-Barton (1992)

18 Communicatio n

19 EMPLOYEE CREATIVITY Amabile (1998)

20 WHERE TO GO? u Where to go, not how to get there! Amabile

21 INNOVATION = INSECURITY Insecurity Available knowledge

22 THE STAGE-GATE PROCESS MODEL

23 AN ITERATIVE PROCESS - THE SPIRAL WAY Sophisticated process Planned loops Focus on market risk Create customer needs Addressing the future Unger & Eppinger, 2011

24 WHAT TYPE OF RISKS IS THE PROJECT FACING? Technical will our design work? Market can we match needs? Maximize control -> Stage-Gate Maximize flexibility -> Iterative Unger & Eppinger 2011

25 DESIGN THINKING - A HUMAN CENTERED PROCESS EMPHATHIZE DEFINE IDEATE PROTO TYPE TEST EMPHATHIZE

26 OPEN INNOVATION

27 REFERENCES u Amabile, T. (1998). How to kill creativity. Harvard business review, september-october, p u Brown, T., Martin, R Design for Action - How to Use Design Thinking to Make Great Things Actually Happen. Harvard Business Review 93, 9 (September 2015), u Gobeli, D. H., & Brown, D. J. (1987). Analyzing product innovations. Research Management, 30(4), u Leonard-Barton, Dorothy. (1992) Core Capabilities and Core Rigidities: A Paradox in Managing New Product Development. In: Strategic management journal, Vol. 13, pp u Moore (2004) Darwin and the Demon: Innovation within established enterprises, Harvard Business Review, July-August. u Nagji, B., & Tuff, G. (2012). Managing your innovation portfolio. Harvard Business Review, 90(5), u Pisano (2015) You need an Innovation Strategy. Harvard Business Review; Vol. 89 Issue 1/2, p u u u Tidd & Bessant (2009) Managing innovation: Integrating Technological, Market and Organizational Change, 4th Edition, Wiley. Trott, P. (2008). Innovation management and new product development. Pearson education. Unger D. & Eppinger, S. (2011) Improving product development process design: a method for managing information flows, risks, and iterations. Journal of Engineering Design Vol. 22, Iss. 10.