The Anatomy of Successful Innovation

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The Anatomy of Successful Innovation

• Donald G. Marquis

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Outline

• When I hear someone
• Invention versus Innovation
• Three types
• Nuts and Bolts
• The Models
• The Lessons
• Conclusions

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When I Hear Someone

• Innovation and asking 2 questions
• Does the person know the difference between
  Innovation and Invention?
• What is the difference

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Invention versus Innovation

• Smookler
• Every invention is
• A new combination of pre-existing knowledge which
  satisfies a want
• Innovation more subtle
• When a enterprise produces a good or service
  using a new input it makes a technical change.
  The first enterprise top do so is an innovator

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What Kind of Innovation (3)

• Complex system
• Weapons systems, Moon mission many years and many
  
• Characterized by Long range planning
• Managerial skills key to success
• Radical
• Major change in technology that changes the
  nature of an Industry usually from outside
• Nuts and Bolts
• Product improvements, Cost cutting, Qc, expansion
  of Product line within their own technical
  competence
• Essential to firm survival. Paced by economics

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Successful Nuts and Bolts

• Ordinary every day within the firm
• How successful study of 500 innovations in 121
  firms. 5 main industries
• Railroads, their suppliers, housing suppliers,
  computer manufacturers and suppliers

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Model of the Process of Innovation (Marquis, 1969)
State of Technology
Search, experimentation calculation activity
Solution through invention
Recognition of technical feasibility
Fusion into design concept evaluation
Work out bugs scale-up
Implementation use
Solution through adoption
Information readily available
Recognition of potential demand
1. Recognition 2. Idea formulation 3. Problem
Solving 4. Solution 5. Development 6.Utilization
Diffusion
State of Societal Demand
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Marquis Model

• It is a first order linear model
• Involves the recognition technology and market
• Difference with or (existing or potential 0
• Formulation as evaluation
• Innovation through invention or adoption
  (imitation)
• Development stage (resolution of uncertainties)
• Utilization and difussion

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Lessons

• Lesson number 1 small incremental innovations
  contribute greatly to commercial success
• ¼ required little or no adaptations
• 1/3 were modification of existing products
• ½ required no change in production

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Lessons

• Lesson 2 Recognition of demand is a more
  frequent factor in innovation success than
  recognition of technical potential
• ¾ of all innovations stimulated by market demand
• 1/5 from a new technical Idea

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Lessons

• Lesson number 3 Training and experience of the
  people right in your own firm are the principal
  sources of information for successful innovation
• ½ the cases studies shown that innovators
  training and experience were keys to success

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Lessons

• Lesson Number 4 Do not Overlook adopted
  innovations, those as well as those completed
  within the firms contribute greatly to success
• 23 of the study group adotpted outside
  innovations

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Last lesson

• Technology push accounts for nearly ¾ of radical
  innovation

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Conclusion

• The founding article in the field
• Brings up interesting nomenclature issues
• A very good model however no covariance
• Limited to manufacturing and specifically FS
  goods
• A great place to start