iNnovation

1
iNnovation
What is it? concerned with the new or the
novel. Distinction between innovation and
invention? Is innovation technology based? Many
of the more significant innovations of the 20th
century are organizational rather than
technology based.
2
Some useful definitions
Fritz Machlup wrote in 1962, Ought we perhaps to
avoid the term innovation since it is so
promiscuosly used for a variety of
meanings. Building on Schumpeters useful
definition between invention and innovation
Invention implies bringing something new into
being innovation implies bringing something new
into use. Innovation has been defined as the
successful introduction into an applied
situation of means or ends that are new to that
situation. (Mohr, 1969, quoted in Cummings and
OConnell, 1978, p.34)
3
An innovation may therefore be a thing! Whether
artefact, product or process or indeed service,
system or infrastructure The innovation process
should also be remembered. Need to differentiate
between types of innovation and stages of
adoption to facilitate developing useful theories
of organizational development. Distinguish
between Product and process innovations Techni
cal and organizational innovations Radical and
incremental innovations
4
Management of InnovationSome Important Issues
Within an organisation Fundamental tension
between stability and creativity Conflict
between top and lower tiers? Between strategy
making and local autonomy?
5
Main sources and strategies for innovation
Innovation is work rather than genius,and very
much a matter of discipline (Peter F Drucker,
1985) Concept of uncertainty matrix offers
characteristics which reduce the risks of
innovation (Alan W Pearson, ). Knowledge
creation and innovation Four standpoints
6
Strategic InnovationPeter F Druker
What all successful entrepreneurs have is not a
certain kind of personality but a commitment to
the systematic practice of innovation. All sizes
of businesses engage in highly successful
entrepreneurship. Hence it is an activity!! At
the heart of that activity is innovation. Sources
of innovation Within a company Unexpected
occurences Incongruities Process
needs Industry and market changes Outside a
company Demographic changes Changes in
perception New knowledge
7
Managing Innovationan uncertainty reduction
processAlan W. Pearson
Innovation means change. Such changes can be
incremental or radical, evolutionary or
revolutionary, enabling or disruptive. They can
have different effects upon producers and
users. intuitive..tumultous processIndividual
discoveries tend to be highly individualistic
andserendipitous, advances chaotic and
interactive, and specific outcomes unpredictable
and chancy until the very last moment (Quinn,
1986). Technological innovation is therefore a
messy process!
8
Pearsons Uncertainty Map
Uncertainty about output ENDS
Uncertainty about process MEANS
9
Knowledge Creation
From four standpoints 1. Knowledge creation in
the process of design, emphasizing the role of
reflective practitioner 2. Nonakas framework for
analysing knowledge creation as the interplay of
tacit and explicit knowledge. 3. Knowledge
creation through experimenting and
prototyping. 4. Learning and innovation.
10
Knowledge Creation
Continuous innovation Competitive
advantage Knowledge creation as the basis of
competitive advantage (Nonaka and Takeuchi, 1995)
11
Intellectual Capital
In 1969 J.K.Galbraith used the term
intellectual capital, defining it as more than
intellect as pure intellect but rather as
including some type of intellectual action
(Bontis, 1996). Thomas A.Stewart, editor of
Fortune magazine, whose first article,
Brainpower (1991), acted as a catalyst for
incorporating intellectual capital into
managerial thought and activities. Since than it
has undergone many transformations, and is now
definable by those intangible assets that do not
show up on companies financial statements, and
specifically, those which can be codified, and
valued and managed by a company. Popular
business writers such as Stewart(1991) define it
as the combination of patents, processes,
management skills, technologies, information
about customers and suppliers, and
experienec. Economists define it as Tobins-q
(Tobin, 1969), a broad proportional measure of
market value to book value.
12
Intellectual Property Rights
IPR is qualitatively different from most others
within the intellectual capital area, notably
because these rights are legally
enforceable. Exploitation of IPR Defense by
companies of their knowledge against those who
seek to appropriate it.