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Joe Tidd and John Bessant: ISBN: 9781118360637

The document discusses innovation as a core business process and describes various aspects of the innovation process including searching, filtering opportunities, resourcing innovations, implementation, and capturing benefits and learning. Generic phases of the innovation process are described.

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131 views19 pages

Joe Tidd and John Bessant: ISBN: 9781118360637

The document discusses innovation as a core business process and describes various aspects of the innovation process including searching, filtering opportunities, resourcing innovations, implementation, and capturing benefits and learning. Generic phases of the innovation process are described.

Uploaded by

smart_kidz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Joe Tidd

and
John Bessant

ISBN: 9781118360637

© 2013 John Wiley & Sons Ltd.


1
www.innovation-portal.info
Chapter 2

Innovation as a core business


process

© 2013 John Wiley & Sons Ltd.


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Innovation Process
Session 2. Key issues:

• Dangers of an ad hoc approach


• Routines & innovation
• A generic process for innovation
• Influence of context & contingency

© 2013 John Wiley & Sons Ltd.


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Systems Innovation
How innovation happens?

Process Success (?)

© 2013 John Wiley & Sons Ltd.


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Systems Innovation
How it really happens …..

© 2013 John Wiley & Sons Ltd.


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Routines & Innovation
What are organizational routines (Nelson & Winter,
1982)?
• Regular & predictable
• Collective, social & tacit
• Guide cognition, behaviour & performance
• Promise to bridge (economic & cognition) theory &
(management & organizational) practices
• “the way we do things around here”
• Can promote or prohibit innovation

© 2013 John Wiley & Sons Ltd.


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Routines & Innovation
Research on routines (Becker, 2005):
• enable co-ordination
• provide a degree of stability in behaviour
• enable tasks to be executed sub-consciously,
economizing on limited cognitive resources
• binding knowledge, including tacit knowledge.
• But, difficult to operationalize, research or
manage
• Need to focus on cognition & practice

© 2013 John Wiley & Sons Ltd.


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www.innovation-portal.info
Routines & Innovation
Routines in practice (Feldman & Pentland,
2003):
• Dual nature, sites of both
stability/reproduction, & creation/change

• Distinguish between 'ostensive' aspects (what


they aim or claim to do), & 'performative'
aspects (what they actually do).

© 2013 John Wiley & Sons Ltd.


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www.innovation-portal.info
Innovation Process
Generic phases of the innovation process:
• Searching & scanning the internal & external
environments
• Filtering & selecting potential opportunities
• acquiring the technical, financial & market
resources
• implementing development & commercialisation
• reviewing & learning from experience

© 2013 John Wiley & Sons Ltd.


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www.innovation-portal.info
Innovation & Context
Example: Environment-innovation-structure
relationship (Damanpour):
Stable Uncertain
• structure small, simple large, complex
• product - +
• process n.s. N.s.
• technological - +
• organizational + -
• radical - +
• incremental n.s. N.s.

© 2013 John Wiley & Sons Ltd.


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www.innovation-portal.info
Innovation & Context
PIMS data:

• impact of innovation on performance depends


on contingency & configuration, not industry
• effect of R&D depends on market share
• effect of patents depends on firm size
• effect of new products depends on market
maturity

© 2013 John Wiley & Sons Ltd.


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www.innovation-portal.info
Innovation Process
Scanning the external environment:
• identify, segment & exploit lead customers
• identify, segment & involve key suppliers
• explicit criteria for selecting alliance partners
• clear objectives & guidelines for licensing & out-
sourcing
• involve all relevant parties e.g. financial & regulatory
• use formal exploratory techniques to identify future
trends

© 2013 John Wiley & Sons Ltd.


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www.innovation-portal.info
Searching
Lead users can be critical. These typically:
• Recognize requirements early - are ahead of the market in
identifying and planning for new requirements.

• Expect high level of benefits - due to their market position


and complementary assets.

• Develop their own innovations and applications - have


sufficient sophistication to identify and capabilities to
contribute to development of the innovation.

• Perceived to be pioneering and innovative - by


themselves and their peer group.
© 2013 John Wiley & Sons Ltd.
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Searching
Why universities commercialize technology:

• No existing company is ready or able to take on the project


on a licensing basis;
• invention consists of a portfolio of products, or is an
“enabling technology”;
• inventors have a strong preference for forming a company;
• income - changes in funding & IPR law;
• technological opportunity

© 2013 John Wiley & Sons Ltd.


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Searching
But, successful commercialization still rare:

• highly concentrated in a small number of elite


universities - top 20 account for 70%;

• a very small number of key patents account for most


of licensing income, the 5 most successful patents
typically account for 70-90% of total;

• suggests that a (rare) combination of research


excellence & critical mass is required.

© 2013 John Wiley & Sons Ltd.


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Innovation Process
Selecting & filtering the opportunities for
innovation:
• Strategic e.g. ‘fit’
• Capabilities e.g. relatedness
• Commercial e.g opportunity & competition
• Risk/Reward e.g. probability, scale
• Financial e.g. NPV, option value

© 2013 John Wiley & Sons Ltd.


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Innovation Process
Resourcing the chosen innovations:
• Scope of innovation – internal versus external
resources

• Structure of project – e.g. alliances, joint ventures,


licensing

© 2013 John Wiley & Sons Ltd.


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Innovation Process
Implementing the innovation:
• Functional integration & group structure
• Roles of suppliers, users & other stakeholders
• Timing & degree of involvement
• Project management
• Supporting tools & techniques

© 2013 John Wiley & Sons Ltd.


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Capturing Benefits & Learning
Characteristics of a learning organization:
• Knowledge management & IPR
• Experimentation & structured reflection;
• Challenges & multiple perspectives;
• Formal processes & documentation;
• Measurement & targets;
• Display & dissemination of results;
• Emphasis on training & development.

© 2013 John Wiley & Sons Ltd.


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