Innovation, Technology and the Corporation

1
Innovation, Technology and the Corporation

• Pressures to Innovate
• Innovation Dilemmas
• Types of Innovation
• Best Practices
• Approaches to Innovation

2
Innovation, Technology and the Corporation -
Continued

• Structures that Support Innovation
• Champions Program
• Technology-Push vs Market-Pull
• Innovation Strategy
• Goals and Measuring Innovation Performance
• Technology

3
Pressures to Innovate

• External Forces
• Emergence of new technologies
• Globalization of markets
• Fragmentation of markets
• Government Deregulation
• Social Change
• Internal Forces
• High-quality employees
• Profitability
• Core Competencies

4
Pressures to Innovate - Continued

• Manifestations of Innovation
• Impact of innovation activity on success rate
• More they innovate, the better they get at it
• Mover innovation activity, moving into unfamiliar
  territory, making failures more probable

5
Innovation Dilemmas

• Management of Innovation
• Break Rules
• 16 Dilemmas (Table 7.1)
• New requires critical resources
• First to Market
• Control

6
Types of Innovation

• Discontinuous Innovation
• Ex Cellular, Microwave
• Dynamically Continuous Innovation
• Ex First Electric Toothbrush, Laptop
• Continuous Innovation
• Ex Lightbulb (100 hrs), New flavor Soft drink
• Imitation
• Ex Kodak new film followed by Fujis
• Risk Equation (Figure 7.1)

7
Best Practices

• Synectics Study
• Three types of firms
• Star characteristics
• PDMA Study
• Best Practice Norms (Table 7.2)
• Results (Table 7.3)
• Others
• Consultants
• Customer-centered vs employee-centered

8
Effective Management of Innovation - Requirements

• Process employed by firm
• Organizational Structure

9
Process

• Non-linear
• Feedback is required
• Multiple iterations
• Preferred Approach
• Stage-Gate
• Figure 7.3

10
Structure

• Get employees to take ownership
• High level of awareness
• Commitment
• Dimensions
• Table 7.4
• Degree of Fit

11
Champions Program

• Champions emerge
• Proper infrastructure
• Provide rewards and incentives
• Effective use of performance appraisals
• Flexibility in terms of resources
• Open communication
• Interfunctional cooperation
• Elimination of red tape

12
Innovation Orientation

• Technology-Push
• Start with technical staff
• Perfection syndrome
• Type of Innovation Discontinuous and Dynamically
  Continuous
• Market-Pull
• Start with customer and driven by marketing
  people
• Type of Innovation Continuous Innovation and
  Imitation

13
Innovation Strategy

• Seven core components
• White Spaces
• Balance between
• Risk
• Return
• Investment Required
• People Involved
• Level of Management Approval
• Development Cycle

14
Objectives and Measuring Innovation Performance

• Objectives Norms
• Page (1993)
• Table 7.6
• Assessment Measures
• Kuczmarski (1996)
• Table 7.7

15
Technology

• Define
• Role
• Disruptive Technologies