nn vation

Department of Management of Technology

"Innovation distinguishes between a leader and a follower."

Apple co-founder Steve Jobs

Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth

Peter Drucker.

Current Inventions
Source - Wikipedia

IBM researchers successfully store a single bit of data in a group of just 12 iron atoms where current hard disks require over 1 million atoms. Ultra-high-density computer storage media in future University of Wyoming scientists unveil genetically modified silkworms capable of producing large amounts of spidersilk, tensile strength than steel. High-strength medical sutures and lightweight forms of body armor

South Korean scientists develop touchscreens that can recognise the existence and concentration of DNA molecules placed on them development of smartphones with the ability to diagnose users' medical conditions

Science & Technology

Science creates the base for technological development which in turn creates new markets
Technology Scientific Discovery When

Nuclear Energy

Einstein

1905

Most of the recent technological breakthroughs are based on earlier scientific discoveries
Radical innovations captures markets

Transistors

A.H Wilson

1931

Electronics

Maxwell

1880

Genetic Engineering

Watson and Crick

1952

Innovation Key terms

Basic Research : Sake of increasing our general understanding of the laws of nature. May not have direct application Applied research: Directed towards solving a problem. Can result in technology development and application.
Idea generation + Solving a problem Invention Invention + Implementation Innovation Innovation +Diffusion Economic value generation

Invention: Innovation

Vs

Creation of new idea for product, process or service

Activity of developing a new element into commercially useful element A business process which brought inventions to commercial use. The process of new and improved products, processes material and services are transferred to market where appropriate

Types of Innovation
new product or service new production process new organizational or management structure new behavior of practice

Vs
Who invented the vacuum cleaner?
J. Murray Spengler invented the vacuum cleaner originally called an electric suction sweeper. But it was W. H. Hoover who had a good idea of how to market and sell the product.

Who invented the sewing machine?

Elias Howe produced the worlds first sewing machine but it was Isaac Singer who stole the patent and built a successful business from it (Singer later was forced to pay Howe a royalty on all machines made).

Who invented the telegraph?

Samuel Morse only invented the telegraph code, all the other inventions came from others. Morse combined marketing and political skills to secure state funding for development work, and to spread the concept of communication over vast distances on the continent of America.

Vs
Who in vented the Transistor
In 1947 some scientists at the AT&T laboratories created the first transistor in the world. patented, but unable to find an application. In 1952 AT&T decided to license For $ 25.000. companies like Texas Instruments, Sony and IBM acquired the technology that would produce billions of revenues in the coming years.

First Personal computer

Xerox, in the famous Palo Alto Research Center (PARC) Xerox was the first company in the world to develop a personal computer (years before Apple or IBM), a graphical oriented monitor, a word processing software, a workstation, a laser printer, a local area network, a handheld mouse,

Dimensions of innovation
There are several types of innovation
Process, product/service, strategy,

which can vary in degree of newness:

Incremental to radical,

and impact:
continuous to discontinuous

Product Vs process Innovation

process of developing and releasing a new or intrinsically altered version of a product or service into a market

(Translate) needs and opportunities in the environment Satisfied

needs and fulfilled opportunities
Cosmetic improvement Toothbrush Functional improvements Air conditioners, Radical innovation Developing existing ideas Ex: Tata Nano Reposition in the different markets Ex: Ultra sound scanner

Product Vs process Innovation

implementation of a new or significantly improved production or delivery method. significant changes in techniques, equipment and/or software Enhancing the ability to produce, IE: Adopt and change the way products are produced Ex : Faster, Cheaper , Higher quality
using IT to automate a process using a new planning system to get a more effective manufacturing system

Component Vs Architectural
Innovation as standalone elements /components
CD DVD

Innovation of the total system

Network Systems : Wired , Wireless Digital Cameras

Process of Innovation -Funnel

Ideas are of course the seeds of innovation Innovation process starts with the generation of Ideas Idea generation also has to be a proper system .

Ideas >>>

Innovations

Process of Innovation
Ideas are indeed the seeds of innovation
Source :The Innovation Master Plan By Langdon Morris

Strategic Thinking : Where innovations potential to provide

strategic advantage

Portfolio Management & Metrics: Evaluation and feasibility Research Current knowledge and discern the gaps Insight Right value proposition, result of examination and development Innovation Development Design, engineering, prototyping, and
testing

Market Development Brand identification Implementation/ Selling

Process of Innovation
Ex : Alternative Energy Sources

Source :The Innovation Master Plan By Langdon Morris

Pattern of Innovation
Rate of Innovation for both product and process follows a general pattern over time Innovation for product and process innovation shares important unique relationship Highest during the formative period / Fluid phase( Experimental , product design and functions ) Transitional phase Product innovation Process Innovation

Pattern of Innovation
Dominant Design Innovation drops

Dominant Design
Dominant Design
Product variety give way to standard design proven best for market needs Accepted standards , Legal , regulatory

Specific Phase
Industries focus on cost volume and capacity Product and process innovation minor incremental

Diffusion of Technology
process by which an innovation is communicated through certain channels over time

Technology Push Vs Market Pull Contd

Technology push Implies that a new invention is pushed through Research and Development, production and sales to the market without proper consideration of whether or not it satisfies a user need.
Ex: Electronic engineering have enabled smaller, smarter electronic components to be fitted into everyday products

Market pull In contrast, an innovation based upon market needs has been developed by the R&D
Ex: increasing demand for greener products and therefore products such as recycling bins, reusable carrier bags, hybrid cars, low energy light bulbs have been developed as a consequence

Technology Push & Market Pull

Ex1 :A123 Systems, a battery maker came up with a high power density, low-cost battery developed in the lab of MIT Professor Yet-Ming Chiang,

Ex2 :Alternative Fuel

Both tech-push and market-pull is required for successful innovation. IE : well-defined problem to solve and a well-formed solution that addresses the problem

Technology Push & Market Pull

ill-fated COMET jet passenger airliner, a revolution in its day, plagued with technology problems whose ultimate solutions enabled Boeing, untarnished by the pioneering COMET failures, to win the world market for passenger jets. Concorde is another example of a technology before its time. Ultimately supersonic passenger transport will become commonplace, but not to the benefit of the Concorde pioneers.

Main features of Innovators -Reference

Question
Action
Associating Observing Experimenting Questioning Networking
Steve Jobs @ Scott Cook @ Jeff Bezos @ Michael Dell @ Mike" Lazaridis @

Creative Idea / Smart Idea

in Reverse Innovation

Innovation in the Developing markets to attract developed markets

Portable Ultra Sound machine 350,000 15,000 ECG Machine 10000$ Portable 500$ Economical Cars

Size of the Consumer base (5Billion Vs 2Billion) Economic recessions 2008-2009 Different Market Segments

Questions ???

Next Lesson of
Why Innovation at the Firm level Stages of Innovation Managing the Innovation Tools of Innovation Innovation in developing Countries Innovation at Macro Level

Why Innovate ..??

Surviving in the market and conquer New technological opportunities Demand for increasing variety / customization Demand for frequent product innovation Increasing regulation Shorter technology life cycles

Idea Generation Sources

Tapping the idea from the customers Learning from Lead Users - Ex Corporate users Understanding market dynamics Ex Mobiles Perceptual map :Visual comparison of customer perceptions Benchmarking Forecasting Technological Developing links Suppliers ,Universities ,R&D firms,
Other users & producers ,trade associations, International bodies

Why?? Manage Innovation

In order to introduce products and processes in consistent and continuing
Exploring wide range of options Using formal Product/Process development procedures Integrative organizational management practices Product /process focus rather that functional

Core abilities in Mgt of inovatn

Market Surveillance : Searching environment for
marketing and economical signals
technical

Strategic Fit : Overall compatibility with business strategy Current Technology base :Transferring opportunities Internal R&D Coupling environment signals ,internal resource and external technology Managing the development projects Process change /Commercializing new product Continuous learning

Core abilities in Mgt of inovatn

Recognizing
searching environment for triggering innovation opportunities

Aligning
Ensuring a good fit between the overall business strategy and proposed change

Choosing
Selecting most suitable response to the environmental triggers

Core abilities in Mgt of inovatn

Acquiring
Transferring knowledge from outside sources

Generating
Having ability to create some aspects of technology in house

Executing
Managing development project for new product or process

Implementing
Managing introduction of change

Learning
Evaluating the innovation process and identifying lessons for innovations in future

Managing Innovation
Understand the change : Customers , Technology ,Demographics, Competition Change the Mindset :
New Expertise Current Employees

Managing the change

PMS Collaboration- Willingness to change Tolerance of failure Culture

Activities Mgt of inovatn

Locating R&D activities Allocating funds for R&D Organization and HR Management Managing risk and uncertainty Supplying critical materials and parts Speeding up innovation cycle R&D commercialization

Important factors -Commercialization of inovatn

Opportunity Protection Business Plan Building the team and securing capital Execution

Feasibility studies
Financial, Social, Market, Environment, etc

Stages of Innovation
Basic Research
Research for the sake of increasing knowledge base

Applied research
Research directed toward solving one or more societys problems Ex : Research conducted to find a cure for AIDS Systematically builds knowledge on the previous knowledge Results in technological development and implementation

Technology Development
Human activity that converts knowledge and ideas into physical hardware software and or service.

Stages of Innovation
Technology Implementation
Set of activities that are related in introducing the product to the marketplace

Production
Set of activities associated with the widespread conversion of design concepts or ideas in to product and services Research Involves manufacturing production control, logistics and distribution

Marketing
Set of activities ensures consumers embrace the technology Involves market assessment distribution strategy promotion and measuring consumers behavior.

Stages of Innovation
Proliferation
The strategy and the related activities that ensures the widespread use of the technology and its dominance in the marketplace Proliferation depends on methods of exploiting the technology and on the practice used for marketing the technology Ex: Microsoft bundling Internet explorer with windows, Java

Technology Enhancement
Set of activities involved with the maintenance of the competitive edge for the technology Involves Improving the ,developing new generations or new applications for the technology , improving quality and meeting customers special needs . Increase the life cycle of the technology Ex:- VB.net

Managing and Fostering Innovation

Invention-Innovation-Diffusion Time Lags

reduce the time lag between discovery and innovation, or between invention and innovation, or lengthen the diffusion time lag for competitors. reduce the risks and gain the benefits
Competitor cooperation: Producer/user relationships

Trading Trade Secrets

Cooperative Inter-firm Agreements

Managing and Fostering Innovation

Technology transfer

International technology transfer Transfers from government (and universities) to industry Inter-firm technology transfer (between different firms) Intra-firm technology transfer (within the same firm)

Project Implementation in Innovations

Problems
Time and cost overruns Poor inter-departmental communication Competing priorities Over-engineering Lack of design-for-manufacture Failure to meet user needs

Effectiveness and efficiency depends on

Organizational context Teams Tools

Organizational Context
Shared vision and leadership Appropriate organization structure Creative climate Training and development High involvement in innovation External focused Extensive communication Learning organization

Project Team
Include a diverse range of functions in project teams. Involve customers and suppliers in the development process. Match team structure to project type. Match team leader attributes to type of team. Establish mission, charter, and contract book for project team.

Tools for Effective R&D

Quality function deployment Concurrent engineering : Cross-functional teams CAD/CAM Stage gate process Rapid prototyping.

QFD

Concurrent Engineering

CAD/CAM
Using computer system for both designing and manufacturing CAD component CAM component Speed up the product development process

Rapid Prototyping
Special equipment used to automatic construction of physical objects using solid freeform fabrication Uses the virtual designs of CAD

Modularity
Creating the architecture by decomposing overall functionality in to interrelated functional modules
Shorten the time to market Faster introduction of products Decentralized R&D Lower Cost Greater product variety Reduced service requirements

Stage Gate Process

External Links for the Innovation

Completive advantage Market expansion Strategic Extended product portfolio External Links Established Standards

Tactical

Cost Time , Risk

External Links for the Innovation

Horizontal
External Links Vertical

Complementary Technologies
Market know how

Cost reduction

External Links for the Innovation

Access complementary Technologies Identify innovations Resource innovations Reduce Cost of technological development Reduce Risk of technological development Reduce Time of technological development

Firm Level -Drivers of Innovation

Capabilities of the organization Technical Resources

People Equipment Knowledge & Skills

Funds Culture

Questions ..???