The Concept of Innovation
Dr Milena Bobeva, MCMI, MICS mbobeva@bournemouth.ac.uk; Skype: milenabobeva
Learning Objectives for This Session Upon completion of this session and the recommended self-managed learning, you should be: 1. Explain the concept of innovation and distinguish it from creativity, invention and other related terms. 2. Discuss innovation classifications and attributes. 2
Homework Review
Why is the example you have chosen
Innovation ?
Methodology: Companies are ranked by their innovation premium: the difference between their market capitalization and a net present value of cash flows from existing businesses (based on a proprietary formula from Credit Suisse HOLT). The difference between them is the bonus given by equity investors on the educated hunch that the company will continue to come up with profitable new growth.
Source: http://www.forbes.com/innovative-companies/list/
What is Innovation?
“Innovation is the specific tool for entrepreneurs, the means by which they exploit changes as an opportunity.” Peter Drucker, 1985
“The ability of organizations to continually reinvent themselves, so they can grow & thrive” BizEd,2014
Innovation as a Concept • • • • • • • • •
It is a Process with identifiable Steps It is a Management Process, i.e. a series of Activities As a Process it has Outputs (e.g. Products, Services) People play Roles in the Process It is studied by many Disciplines It is a part of many Frameworks It can be Systematically Modelled It produces Results and Added Value It exist in a specific Context (regional, national, etc.), or Business Ecosystem
“Innovation is a highly context-sensitive process� preconditions
(Warner, J. 2012. Is Context the Key to Greater Creativity and Innovation?. Available from: http://blog.readytomanage.com/iscontext-the-key-to-greater-creativity-and-innovation [30 Jan 2014] )
Innovation is NOT • • • • • • •
Artistic creativity Invention The ‘Bright Idea’ Scientific discovery Problem-solving Simple incremental improvement … Dr. Thomas J. Mierzwa
Innovation is ‌ Innovation = Invention + Exploitation (Ahmed and Shepherd, 2010)
Innovation = Theoretical conception + + Technical Invention + + Commercial Exploitation (Trott, 2012)
Ahmed, P.K. and Shepherd, C.D., 2010. Innovation Management: Context, strategies, systems and processes. FT Prentice Hall (Chapter 1) Trott, P. 2012. Innovation Management and New Product Development. 5th ed., FT Prentice Hall (Chapter 1)
Innovation is … … the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product or manufacturing process or equipment.” (Trott, 2012) Trott, P. 2012. Innovation Management and New Product Development. 5th ed., FT Prentice Hall (Chapter 1)
Innovation, Creativity & Design In Logos, Mottos and Slogans
http://www.hongkiat.com/blog/77-catchy-and-creative-slogans/
Assessing Impact Role Play
You have to hire a training agency to deliver some the staff development sessions in your company. Using a scale of 0 to 4, 4 = Very good rate the promotional 3 = Good materials given to you on 2 = Average 1 = Poor their innovation, creativity 0 = Not existent and design. 13
Desirable (Human)
Innovation
Viable
Feasible
(Business)
(Technology)
Types of Innovation
Source: treehugger.com
Types of Innovation Based on What is targeted: • Business model innovation • Marketing innovation • Organisational innovation • Process innovation • Product innovation • Service innovation • Supply chain innovation
Source: http://www.thebigknit.co.uk/about
Types of Innovation Based on Who is involved: • Individual • Team • Large Unit • Organization • Industry • Societal/Marketplace
Phases in Innovation I
• Initiate
D
• Develop
E
• Evolve
A
• Action
The Penthatlon Framework
Available from: http://www.som.cranfield.ac.uk/som/dinamiccontent/media/knowledgeinterchange/themedareas/innovation/key%20conce pts/Rick_Mitchell/index.htm 19
In Preparation for the Next Session… (1) Read Sahin, I., 2006. Detailed Review of Rogers’s Diffuson of Innovations Theory and Educational Technology-related Studies Based on Rogers’ Theory. The Turkish Online Journal of Educational Technology (TOJET), 5(2), 13036521, Available from: http://www.tojet.net/articles/v5i2/523.pdf [05 February 2015].
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(2) Watch • Sir Ken Robinson’s address to Stander Symposium: Out of Our Minds: Learning to be Creative, Available from: https://www.youtube.com/watch?v=VNZUIWXbHAM
• Rick Mitchell’s The Innovation Penthatlon Framework, Available from: http://www.som.cranfield.ac.uk/som/dinamiccontent/media/knowledgeinterchange/themedareas/inno vation/key%20concepts/Rick_Mitchell/index.htm
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And (3) … For the example of innovation you have chosen for this session, For the example of innovation you have chosen for this class session, (1) identify where innovation stands in the adoption cycle and (2) discuss the how the attributes of innovation listed below present themselves in the context of your example : • relative advantage, • compatibility, • complexity, • triability and • observability. Write a summary of up to 500 words and post it to the MICAD Discussion Board by 9am on 9thFebruary 2015. The writing could take the form of an essay and you can provide a bibliography list outlining any sources that you have used to develop your understanding of the innovation.
Further Reading • Clive Christensen’s Innovator’s Dilemma • IBM Global Business Services, 2007. Leading innovation: Tips on success and survival, Available from: http://www935.ibm.com/services/us/gbs/bus/pdf/g5106570-00-leading-innovation.pdf