Tidd - Managing Innovation - Ebook download as PDF File .pdf), Text File .txt) or read book online. Curs. Managing Innovation by Joe Tidd and John Bessant (4th edition). 1 Managing Innovation (I&E). Chapter 3. Innovation is increasingly about teamwork and the. Keywords Innovation management, innovation capability assessment, innovation . The second is by Tidd et al (, p): “Innovation is 4 a core process.
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'In a highly readable yet challenging text, Tidd, Bessant and Pavitt are true to their This second edition of Managing Innovation helps address the practicalities. PDF | On Jan 1, , John Bessant and others published Managing ; Tidd & Bessant, ) and carefully manage their innovation. PDF | Managing Innovation is the bestselling text for graduate and undergraduate organizational change / by Joe Tidd and John Bessant.
We have also invested in the website that supports this text to increase its scale and scope. But at heart the process is the same basic sequence of activity. Most proved unsuccessful. And then think about how all of this can be accomplished BOX 1. A history of process innovation.. I believe that strategic thinking is a necessary but overrated element of business success.
He continued saying that innovation is impossible to sustain without rigorous, and relentless, efforts to measure and improve performance along all relevant dimensions. And as the quality guru, W. Tate suggests the process should be designed to help organizations think, compare, illuminate, learn, plan and improve.
In this context they define innovation as a process involving the generation and implementation of new ideas, practices or artefacts within an organization Van den Ven et al At present there are almost as many approaches to measuring innovation as there are innovation audit tools. These audit tools can be broadly categorized in three categories. The Internet-based audits National Centre of Excellence in Functional Foods ; Innovation Network Innovation Quotient ; Thunderbolt Thinking ; The Idea Centre are often of the self-assessment, free-to-use types that provide real-time processing of submitted data.
Users typically answer a few up to twenty online questions whereupon they are instantly provided with output, which merely consists of one to six high-level innovation indices that really only serve the purpose of stimulating interest in the rest of the paid-for services on offer on these sites. Then there are the more advanced, free-to-use innovation audits such as the Innovation Climate Questionnaire and that of The Windeaters These audits typically require more input and provide more detailed reports, but often fall short because of its apparent lack of incorporating a sound theoretical basis in its design.
Finally there are the commercial or proprietary innovation audits that are generally quite thorough in its assessment, and founded on sound theoretical principles. The authors argue that, in the absence of such a universal yardstick, it is still better to make an attempt at measuring innovation than not to measure anything at all. Possible reasons for this include failure to measure Muller et al , choice of limited metrics and tools Rae, , a perceived lack of appropriate metrics The Boston Consulting Group or simply not having a true understanding of what innovation really means Muller et al From the literature review six key elements or determinants emerged that aught to be addressed in the pursuit of managing innovation effectively.
These include 1 the identification of appropriate innovation metrics and its subsequent and continued measurement, 2 the formulation of an innovation strategy, 3 developing and implementing suitable innovation processes, 4 making use of appropriate innovation tools, 5 having an innovation supportive organization, and finally 6 providing innovative leadership.
Integrating this view of innovation management with the four functions of management, it is possible to devise a generic framework as depicted in Figure 1. It is not claimed that the determinants in this framework are the only ones that matter; it is merely proposed that sufficient evidence exists to confirm its importance in the context of managing innovation and achieving quality innovation outputs.
In the first of a series of research papers that will investigate all six of these elements in the New Zealand setting, the current paper only addresses some general issues that relate to innovation management in New Zealand, and more specifically, the first element which is about innovation metrics and organizational innovation capability assessments.
Research Methodology In the first instance a literature review was done to identify the key elements of innovation management. This was followed by an empirical exploratory research component which involved a nationwide Web-based survey.
The first part of the survey collected general data on innovation management, while the second focused on the first key element of innovation management, namely innovation metrics and capability assessment. In an effort to increase the sample size, participants were also asked to invite appropriate organizations to take part in this survey.
By the survey cut-off date a total of 83 responses were registered 65 male and 18 female , representing a wide range of industries. The two biggest contributions came from the manufacturing More than 70 percent of organizations in the sample have been operating for longer than ten years. Almost 40 percent of the sample was found to employ more than 50 full-time staff.
Half the sample operates exclusively in New Zealand, with only approximately ten percent indicating exports in excess of 50 percent originating from export sales.
The quantitative analysis focused on the views and attitudes of these managers, firstly towards innovation management in their organizations, and secondly, on the concept of organizational innovation capability assessment. Figure 1: Just over half of the respondents strongly agreed with this statement, while nobody indicated that the question was not applicable to their organization.
This result indicates that the sample strongly represents organizations that view innovation as relevant to their business model. Almost three quarters of respondents indicated that they felt comfortable to describe their organizations as being innovative, at least to some degree.
However, less than 10 percent claimed to be very innovative. This observation is further supported by an almost across-the-board view that significant scope for innovation improvement exists.
More than half the respondents indicated dissatisfaction with the returns on investment they got from innovation projects, while only about one fifth said they generally achieve great results.
Surprisingly two thirds of the represented organizations have a high incidence of innovations that are not commercialized. In an open-ended question respondents were asked what they thought was the most important condition for innovation. In top spot 37 percent respondents answered in favour of some organization cultural aspect that supports innovation. Phrases that were used include: Of almost equal importance 20percent and in second place, are the right type of staff employees and market-driven innovation.
Less important factors that were identified include the right leadership and top management support for innovation, as well as sufficient financial and time resources. Approximately a quarter of respondents indicated that the most important condition for innovation that they indicated in the previous question, was not present to a satisfactory degree, or being practiced in their organizations.
Over 80 percent of respondents agreed that innovation is a process that can be managed, while only 36 percent acknowledged that it is a difficult process to manage. Nobody rated themselves as excellent managers of innovation.
A staggering 30 percent admitted that their organizations were not great at managing innovation! This is the one question that had the biggest evenly spread responses across the board, from strongly disagree to strongly agree. Clearly there are mixed opinions on whether measurement is an essential step in the innovation management process. As a result of this confusion, which was confirmed by the next set of responses, approximately seventy percent of participating organizations seem not to have a clearly-defined set of innovation indicators.
Not surprisingly, when asked if organizations regularly monitor their innovation indicators, the same negative pattern in response was observed as for the preceding question do you keep innovation metrics? Conclusions and future research While almost three quarters of the survey respondents viewed innovation as significantly important to their organizations, most indicated that they were underperforming and felt there was significant room for improvement.
Only twenty percent of respondents seem to be greatly satisfied with the returns on investment they generally get from innovation projects.
For an alarming 66 percent of represented organizations the reality is low rates of successful commercialization of innovation. Sadly, about one quarter of respondents said that the criterion which they identified as the most important for successful innovation, was not apparent in their organizations. One can only wonder whether these respondents, when they answered this question, came to realize that this deficiency reflects directly against their inability as leaders to champion innovation within their organizations.
Yet strangely enough the results show that by en large New Zealand organizations are not doing a great job at managing innovation. What could possibly be the reason for this? The authors believe that part of the answer can be found in the overall inconclusiveness expressed by respondents regarding the issue of whether innovation metrics is essential or not for the effective management of innovation.
Clearly they think it is not essential. Instead, as was reported earlier, more than seventy five percent had no difficulty in responding definitively to this question. The real question now is this: In the absence of factual innovation metrics, on what basis did they make these judgments?
Whatever the reason, if innovation is not measured, any opinion regarding the degree of innovation is highly subjective and purely speculative, and prone to error. Moreover, as shown by this research, managers and CEOs are inclined to overestimate their innovation efforts in the absence of hard evidence.
From the limited scope of this research some obvious weaknesses became apparent. This is a top-down activity that requires very specific actions to be sanctioned and cultivated by top management over time.
A second area of weakness is the apparent reluctance to define and measure innovation metrics. It is as if managers are in total disregard of its importance. One could almost say managers seem to treat innovation metrics with disrespect. It would be in the best interest of all stakeholders if organizations start paying attention to innovation metrics and treat it with the same degree of importance as they do with corporate financial reporting. This paper provides a practical framework for managing innovation in firms across a variety of industries and business sectors.
By analyzing and assessing each of its components separately, one can gain a fair view of how well innovation is managed within a firm. As a starting point this paper also provides a general overview of the state of innovation management in New Zealand firms, and in particular how managers and CEOs view the value of innovation capability assessments.
The next papers in this series will address the remaining determinants of effective innovation management in the New Zealand context.
Future research could also attempt to use the framework as basis for developing a set of new metrics for measuring innovation management within individual firms.
Sep Lessons from Spain. Industrial Marketing Management. New York: Apr Belliveau, P. Expert techniques and effective practices in product development. Measuring technological. Nortel Networks and Petrobras. He graduated from Aston University with a degree in Chemical Engineering in and later obtained a Ph.
University of London. BOC Edwards. He is the winner of the Price Waterhouse Urwick Medal for contribution to management teaching and research. National Power. Tidd sussex. Organizational responses to technological opportunities and market imperatives with Frank Hull. He also holds a Fellowship of the Advanced Institute for Management Research which he was awarded in University of Sussex.
Applied Materials. In he was elected a Fellow of the British Academy of Management. His areas of research interest include the management of discontinuous innovation.
He has acted as advisor to various national governments and to international bodies including the United Nations. He is the author of 20 books and many articles on the topic and has lectured and consulted widely around the world. Inditex through. Continuing investment in innovation has helped this company from a relatively isolated island build a key niche in highly competitive international military and civilian markets www.
But innovation is not just about opening up new markets — it can also offer new ways of serving established and mature ones. Much of their business involves complex large-scale machinery — and their abilities to keep it running and productive depend on a workforce able to contribute their innovative ideas on a continuing basis. If you want to get somewhere else. Despite a global shift in textile and clothing manufacture towards developing countries the Spanish company.
In their case the mountains contain iron ore and their huge operations require large-scale excavation — and restitution of the landscape afterwards. When the Tasman Bridge collapsed in Hobart. Of course. Central to the Inditex philosophy is close linkage between design. These have a number of advantages over other displays such as liquid crystal — low-cost. No sight tests by opticians are required.
Despite their global orientation. Mass production of the spectacles will soon be under way. In the developing world. This has led to a new technology with the potential to transform the lives of hundreds of millions of people in the developing world — a pair of spectacles with lenses that can be adjusted by the wearer to suit their visual needs.
A chance meeting took place between an Oxford physics professor developing his own new ophthalmic lens technology and with an interest in applying it in the developing world and someone with a great deal of knowledge of the developing world. Magink is a company set up in by a group of Israeli engineers and now part of the giant Mitsubishi concern.
Magink enables high resolution images which can be changed much more frequently than conventional paper advertising. They also experiment with new ideas directly on the public. Legislation may open up new pathways. Whilst competitive advantage can come from size. A similar approach to the insurance business — Direct Line — radically changed the basis of that market and led to widespread imitation by all the major players in the sector.
In the case of more mature and established products. Competitors may introduce new. Whilst new products are often seen as the cutting edge of innovation in the marketplace. The Toyota production system and its equivalent in Honda and Nissan led to performance advantages of around two to one over average car makers across a range of quality and productivity indicators.
Being able to make something no one else can. Southwest Airlines achieved an enviable position as the most effective airline in the USA despite being much smaller than its rivals. As Evans and. Unless an organization is able to move into further innovation. Racks full of glossy brochures through which people could browse. His argument was simple: And then think about how all of this can be accomplished BOX 1.
He had a distinguished career as an economist and served as Minister for Finance in the Austrian Government. It is also an issue — and quite possibly a survival one — for thousands of small businesses. At this point the cycle repeats itself — our original entrepreneur or someone else looks for the next innovation which will rewrite the rules of the game.
Now it becomes possible to offer both richness and reach at the same time — and thus to create totally new markets and disrupt radically those which exist in any information-related businesses. But of course other entrepreneurs will see what he has done and try to imitate it — with the result that other innovations emerge. Think about the local travel agent and the cosy way in which it used to operate.
Internet banking. Yahoo — others can follow. Offering it in ways others cannot match — faster. Rolls-Royce and aircraft engines — only a handful of competitors can master the complex machining and metallurgy involved Blockbuster drugs like Zantac. Boeing — over 30 years old. Benetton in clothing. Its potential to change the architecture and mode of operation of the Internet was much greater. Toyota in its supply chain management Transferring across different application contexts Others?
Intel and AMD with different variants of their microprocessor families Typewriters vs. Dell in computers. Sometimes the dividing line is somewhat blurred — for example.
Table 1. Essentially we are talking about change. Services represent a particular. Not surprisingly. The point is that whatever the dominant technological. And change in the manufacturing methods and equipment used to produce the car or the home entertainment system. These associations with sickness were abandoned by the brand owners. Sometimes opportunities for innovation emerge when we reframe the way we look at something.
Innovation can also take place by repositioning the perception of an established product or process in a particular user context. His contribution was to change the underlying model from one which offered a handmade specialist product to a few wealthy customers to one which offered a car for Everyman at a price they could afford.
There are degrees. In a climate of deregulation and with global interconnection through grid distribution systems energy and other utilities like telecommunications bandwidth increasingly became commodities which could be traded much as sugar or cocoa futures. The ensuing shift from craft to mass production was nothing short of a revolution in the way cars and later countless other products and services were created and delivered.
Henry Ford fundamentally changed the face of transportation not because he invented the motor car he was a comparative latecomer to the new industry nor because he developed the manufacturing process to put one together as a craft-based specialist industry car-making had been established for around 20 years. SmithKline Beecham. But we. MP3 and download vs.
TV New generations Steam power. Mapping Innovation Space Each of our 4Ps of innovation can take place along an axis running from incremental through to radical change. Sometimes these changes are common to a particular sector or activity.
Whether it actually explores and exploits all the space is a question for innovation strategy and we will return to it later. As far as managing the innovation process is concerned. The ways in which we approach incremental. Figure 1. For example.. Athlon or Duron chipsets.
This is a way of creating stretch and space within the envelope and depends on being able to establish a strong basic platform or family which can be extended. DVD and now MP3 players. Service innovation offers other examples where a basic concept can be adapted and tailored for a wide range of similar applications without undergoing the high initial design costs — as is the case with different mortgage or insurance products.
Or it could result from a process of search — research into technologies. Viewed in this way we can see that incremental innovation. A key contribution to our understanding here comes from the work of Henderson and Clark who looked closely at the kinds of knowledge involved in different kinds of innovation. We can see this more clearly with an example. Such knowledge may already exist in our experience. They were also able to license out the technology for use in noncompeting areas like industrial scale carpet care and in the pharmaceutical industry.
Again this helps us understand why discontinuous innovation is so hard to deal with. Successful innovation management requires that we can get hold of and use knowledge about components but also about how those can be put together — what they termed the architecture of an innovation.
Managing innovation is about turning these uncertainties into knowledge — but we can do so only by committing resources to reduce the uncertainty — effectively a balancing act. And it could be in explicit form. But as we move to more radical options. But the underlying knowledge about how to link aerofoil shapes.
An example here is the home automation industry. So if it is at component level then the relevant people with skills and knowledge around these components will talk to each other — and when change takes place they can integrate new knowledge. In Zone 3 we have discontinuous innovation where neither the end state nor the ways in which it can be achieved are known about — essentially the whole set of rules of the game changes and there is scope for new entrants.
None of these involve major shifts or dislocations. In Zone 1 the rules of the game are clear — this is about steady-state improvement to products or processes and uses knowledge accumulated around core components.
Here there is a need to learn new knowledge but within an established and clear framework of sources and users — for example. Examples might be low-cost airlines. We may use existing knowledge and recombine it in different ways or we may use a combination of new and old.
An emerging example of this could be the replacement of the incandescent light bulb originally developed in the late nineteenth century by Edison and Swan amongst others. This process dominated for nearly a century but was in turn replaced by a new generation of continuous processes which used electrolytic techniques and which originated in Belgium where they were developed by the Solvay brothers.
In their pioneering work on this theme Abernathy and Utterback developed a model describing the pattern in terms of three distinct phases.
Moving to the Leblanc process or the Solvay process did not happen overnight. This can apply to products or processes. See Box 1. On the one hand we have an industry which was. In other words they were a small link in a long chain. A good example can be seen in the world of publishing. Pictures and other items would be transferred onto printing plates. They used to be a small link in a long chain which began with a client and an advertising agency agreeing about an advertisement.
They would then pass this on to various editors who would check. They began to challenge the boundaries of the operation in which they were part — why. Such a method might still be recognizable by Messrs Caxton and Gutenberg — the pioneers of the printing industry. But it is likely that they would not have much idea about the way in which publishing operates today — with its emphasis on IT. Of course this required. Next would come typesetting where the physical materials for printing would be made — hot metal would be cast into letters and grouped into blocks to form words and sentences within special frames.
But technology has changed all that for them. The photo shoot and copy lines would be created and eventually the material would arrive at Adplates who would carry out the task of preparing a printing plate — which they would then pass on to a printer to use.
Now the process has changed such that a single person could undertake the whole set of operations — create text on a word processor. The problem is not the product but the way in which it is presented — all the hard copy encyclopedias have suffered a similar fate at the hands of the CD-ROM-based versions like Encarta which is often bundled in as part of a PC purchase.
We could go on looking at the publishing industry but the point is clear — when technology shifts dramatically it opens up major opportunities but also poses major threats to players in the industry and to those who might want to enter from outside.
What is going on here is clearly not conforming to a stable. There are winners in this game but also losers. Under these conditions simply being an established player — even with a centuries-old brand name and an excellent product — is not enough. And why should they leave it to a publisher to disseminate the material when the market and the technology in this end of the industry is changing so rapidly and opening up so many opportunities?
Adplates now offers a complete service to clients from initial idea through to printing and even has its own stable of magazines and a thriving Web publishing operation.
It is a well-established product — in fact the original idea came from three Scottish printers back in ! The foundations of a business like publishing become shaken and many of the famous names disappear whilst other unknown upstarts become major industry players — in some cases overnight! People still think of the Encyclopaedia Britannica as a household name and the repository of useful reference knowledge which can be trusted.
In our chemical case this is happening with biotechnology and the emergence of the possibility of no longer needing giant chemical plants but instead moving to small-scale operations using live organisms genetically engineered to produce what we need.
The dominant design gradually emerged with an architecture which we would recognize — shutter and lens arrangement. Eventually a new technology emerges which has the potential to challenge all the by now well-established rules — and the game is disrupted. In the camera case. Activities move from radical concept development to more focused efforts geared around product differentiation and to delivering it reliably.
This gradually moved to a transitional phase. Innovation stimulated by. Predominant type of innovation Product line Fluid pattern Functional product performance Information on user needs. The pattern can be seen in many studies and its implications for innovation management are important. Such transformations happen relatively often — no industry is immune see Box 1. Worryingly the source of the technology which destabilizes an industry often comes from outside that industry.
It is more helpful to suggest that there is something about the ways in which innovation is managed under these conditions which poses problems.
The kinds of organizational behaviour needed here will include things like agility. Extensive studies have shown the power of shifting technological boundaries in creating and transforming industry structures — for example. If they talk to their existing customers the likelihood is that those customers will tend to ask for more of the same.
Archaeologists tell us this goes back at least 40 years so there has been plenty of scope for innovation to improve the basic idea! Certainly by the time of the Romans domestic illumination — albeit with candles — was a well-developed feature of civilized society.
Not a lot changed until the late eighteenth century when the expansion of the mining industry led to experiments with uses for coal gas — one of which was as an alternative source of illumination. From the early days of putting simple wicks into congealed animal fats. One of the pioneers of research in the coal industry — Humphrey Davy — invented the carbon arc lamp and ushered in a new era of safety within the mines — but also opened the door to alternative forms of domestic illumination and the era of gas lighting began.
But it was not until the middle of the following century that researchers began to explore the possibilities of using a new power source and some new physical effects. God said let there be light. Two events occurred during that year which were to have far-reaching effects on the emergence of a new industry. And for a long time this came from a rather primitive but surprisingly effective method — the oil lamp. Technological Alternatives Although the industry then entered a period of stability in the marketplace there was still considerable activity in the technology arena.
Westinghouse — become established. General Electric GE. It is at this point that the major players with whom we associate the industry — Philips.
That is. So it was with the light bulb. But electric lighting was also improving and the period — saw many important breakthroughs and a host of smaller incremental performance improvements. White LEDs offer the following advantages: Eventually they were successful and in produced a blue LED based on gallium arsenide technology. These lights were bright and used little power. Their research culminated in the development in of a white light LED — using the principle that white light is made up of red.
They quickly became standard features in electronic devices and today the average household will have hundreds of LEDs in orange. So what? In work on the emerging solid state electronics area led to the discovery of a light emitting diode — LED — a device which would.
The device is inherently of no value to us. Major manufacturers such as GE are entering the market and targeting mass markets such as street lighting and domestic applications.. They may try and get around the patents — but with already in place and the experience of the complex chemistry and processing which go into making LEDs Nichia have a long head start. In a famous memo dated the board commented.
One US company. The likelihood is that the industry as we know it will be changed dramatically by the emergence of this new light source — and whilst the names may remain the same they will have to pay a high price for licensing the technology. Things are already starting to happen. Santa Barbara. By contrast Sony used it to gain access to the consumer market and to build a whole generation of portable consumer devices — and in the process acquired considerable technological experience which enabled them to enter and compete successfully in higher value.
In the s Xerox was the dominant player in photocopiers. He studied a number of industries in depth and particularly focused on the hard disk drive sector because it represented an industry where a number of generations of dominant design could be found within a relatively short history.
Despite the fact that Xerox had enormous experience in the industry and a deep understanding of the core technology it took them almost eight years of mishaps and false starts to introduce a competitive product. As Henderson and Clark put it. Box 1. But despite their prowess in the core technologies and continuing investment in maintaining an edge it found itself seriously threatened by a new generation of small copiers developed by new entrants including several Japanese players.
For example the pioneers of the personal computer Apple. TABLE 1. The trouble was that they were not taken seriously as an alternative market prospect by the established suppliers of disk drives. They were textbook examples of good practice. Generally these involved players who were looking for something simpler and cheaper to meet a very different set of needs — essentially outside or at the fringes of the mainstream.
Messrs Jobs. What was changing was the emergence of new markets with very different needs and expectations. The answer was not their failure to cope with a breakthrough in the technological frontier — indeed. As the new market grew so the technology around delivering the dominant design matured and became more reliable and capable — as we would predict using the Abernathy and Utterback model.
By the time the established suppliers of disk drives to the mainstream industry woke up to what was happening the best they could do was to imitate but from a position of being far behind the learning curve. The early days of the PC industry were characterized by enthusiasm amongst a group of nerds and geeks running small and highly speculative ventures. Importantly the new players who rewrote rule book for one generation found their markets disrupted in turn by a later generation of players doing the same thing to them.
It is here that market disruption emerges — what began as a fringe business has moved into the mainstream and eventually changes the rules under which the mainstream operates. Not surprisingly in many cases they failed to make the grade and withdrew or went bankrupt. We just want to do it. And their success in meeting these needs helped their businesses to grow through keeping up with that industry.
Pay our salary. These hardly represented a serious alternative market to the multibillion dollar business of supplying the makers of mainstream mini-computers. As Steve Jobs described their attempts to engage interest.
A third option involving balancing the two — ambidextrous capability — is a tough challenge but one we pose throughout the book.
Either they surrender the ground to newcomers or they spin off new ventures and become newcomers themselves. Effectively the latter case is about creating completely new markets.
Or it can come from an external shock forcing change on an industry or sector — as is often the case in wartime. Riding along on one particular bandwagon makes the enterprise vulnerable in its ability to jump on to the next one when it starts to roll. In later work Christensen and Raynor have extended this powerful market-linked analysis to deal with two dimensions of discontinuity — where disruption occurs because of a new bundle of performance parameters competing against existing markets and where it competes against non-consumption.
At its heart this powerful theory is a challenge to the ways in which we approach managing innovation. Sustaining conditions require innovation but along very different tracks — and involving very different networks — to disruptive conditions.
Microsoft vs. In particular. Other players who have been working in the background developing parallel alternatives may suddenly come into the limelight as new conditions favour them Unthinkable events Unimagined and therefore not prepared for events which — sometimes literally — change the world and set up new rules of the game Business model innovation Established business models are challenged by a reframing.
A publicity plan was to have 75 Edsels drive out on the same day to local dealers. For example: The history of product and process innovations is littered with examples of apparently good ideas which failed — in some cases with spectacular consequences. It was not a success. The prototype took six and a half years to build and involved major technical crises with wings and engine design.
Nor were these teething troubles. One UK contender was the Bristol Brabazon. Although innovation is increasingly seen as a powerful way of securing competitive advantage and a more secure approach to defending strategic positions. The budget rapidly escalated. Consultation with BOAC. Project control was weak and many unnecessary features were included — for example. Call charges were similarly highly priced.
Motorola launched an ambitious venture which aimed to offer mobile communications from literally anywhere on the planet — including the middle of the Sahara Desert or the top of Mount Everest! Consequently in New players were ill-equipped to survive and only a handful of the original start-ups remain — but even large and established. Despite the incredible technological achievement which this represented the take-up of the system never happened.
Even then the plans to allow them to drift out of orbit and burn up in the atmosphere were criticized by NASA for the risk they might pose in starting a nuclear war. The trouble was that. The parallels with the Concorde project. In the mids a study by Shell suggested that the average corporate survival rate for large companies was only about half as long as that of a human being.
In essence. Foster and Kaplan point out that of the companies originally making up the Standard and Poor list in But It Is Imperative Faced with what is clearly a risky and uncertain process many organizations could be forgiven for deciding not to innovate.
And we need to remember that there is a great deal of uncertainty in innovation. Tui is the company which now owns Thomson the travel group in the UK. And this depends on understanding and managing the process such that little gets left to chance. Two worrying conclusions emerge from his work. But real success lies in being able to repeat the trick — to manage the process consistently so that success. Research suggests that success is based on the ability to learn and repeat these behaviours.
What lessons can we learn from research and experience about success and failure.
Nokia began life as a lumber company. Whether the organization is. In a process as uncertain and complex as innovation. Even apparently robust giants like IBM. Its origins. GM or Kodak can suddenly display worrying signs of mortality. It is also not just about embodied knowledge. Even the best resourced organization cannot do everything. These could be needs of various kinds.
How to obtain a competitive edge through innovation — and through this survive and grow? This might be a simple matter of buying off the shelf.
They have to: At this generic level we suggest that organizations have to manage four phases making up the innovation process. Of course there are countless variations on this basic theme in terms of how organizations actually carry this out. And much depends on where they start from — their particular contingencies.
How do we structure the innovation process appropriately? They are dislodged by new industries. We will look at this process view of innovation in more detail in the following chapter.
But at heart the process is the same basic sequence of activity. We suggest that there are three key questions in innovation management which form the basis of this book: Same Old Responses? Constant revolutionizing of production. In place of old wants. Certainly there are big changes taking place in the environment in which we have to try and manage innovation.
Marx and F. Our view is. And it is clear that some trends in the current environment are converging to create conditions which many see as rewriting the rules of the competitive game. The Manifesto of the Communist Party.
History suggests that although the technological and market shifts are dramatic the basic innovation management issues remain. This places emphasis on strategic management of the knowledge base. It needs — across a global operation and a workforce of thousands — to let go of old competencies which are. This has always been the theme of innovation strategy in multinational corporations. Innovation in a Global Environment A key challenge in the current environment is that the stage on which the innovation game is played out has expanded enormously.
These are: Successful innovation depends on being able to look widely and ahead and develop strategic approaches based on an understanding of the knowledge aspects. But the shift to peer-to-peer networking and downloading Box 1. In other words. The concept of component and architectural innovation is relevant here — organizations need to develop the ability to see which parts of their activity are affected by technological change and to react accordingly.
One solution. Old competencies may no longer be relevant whilst acquiring new ones becomes a matter of urgency. This is particularly the case with music. At the heart of the change is the potential for creating. But beneath this updating of essentially the same transaction lies a more fundamental shift — in the ways in which music is created and distributed and in the business model on which the whole music industry is currently predicated.
Much of the established music industry is concerned with legal issues — how to protect copyright and how to ensure that royalties are paid in the right proportions to those who participate in production and distribution. Such changes are not necessarily threatening. For many people the lowering of entry barriers has opened up the possibility of participating in the music business — for example.
It has been made much more so by another technological development — that of person-to-person or P2P networking. There is also scope for innovation around the periphery — for example in the music publishing sector where sheet music and lyrics are also susceptible to lowering of barriers through the application of digital technology. In the process they effectively create a parallel and much more direct music industry which leaves existing players and artists on the sidelines.
Sean Fanning. Compiling popularity charts — and the related advertising — is also opened up as the medium switches from physical CDs and tapes distributed and sold via established channels to new media such as MP3 distributed via the Internet.
As if this were not enough. But when people can share music in MP3 format and distribute it globally. Journalism and related activities become increasingly open — now music reviews and other forms of commentary become possible via specialist user groups and channels on the Web.
Instead they can use home recording software and either produce a CD themselves or else go straight to MP3 — and then distribute the product globally via newsgroups. Needless to say this posed a huge threat to the established music business since it involved no payment of royalties. In parallel with the launch of their successful i-Pod personal MP3 player they opened a site called itunes which offered users a choice of thousands of tracks for download at 99 c each.
The result — the Napster. Their judgment said.
Expectations that legal protection would limit the impact of this revolution have been dampened by a US Court of Appeal ruling which rejected claims that P2P violated copyright law. Born out of informal exchanges and a desire amongst scientists to share and collaborate more effectively. In the case of design. With trade liberalization and the opening of markets has come a massive upsurge in overall activity and the number of players in the game.
This transition requires investments in different elements of the business environment. It is estimated. Similarly the number of scientists and engineers is increasing faster in Asia than elsewhere and this is likely to fuel further innovation-led growth in that region.
What the ICT revolution does is shift the balance between these two so that rich services are available but with global reach — and a new economics emerges. And — as the glut of failed Internet start-ups demonstrates — simply having the technological means is no guarantee of business success — innovation.
Richness refers to the content of an information service — how customized and deep it is — whereas reach refers to the extent to which it can be offered to a population. Even in developing countries there is a high access rate — for example. Mobile telephones provide a similar example of huge growth and penetration. There are currently around m. Normally there is a trade-off — you can have rich services but they tend to be high price and reach only a few people with the means to access them — for example.
Similarly on the demand side. NO YES. Managing Innovation: Selected type: Added to Your Shopping Cart. Evaluation Copy Request an Evaluation Copy. Bessant ISBN: Editions Previous Next. The Research Notes and Views from the Front Line feature boxes strengthen the evidence-based and practical approach making this a must read for anyone studying or working within innovation The Innovation Portal www.