L1 Introduction to Innovation at UCC

Introduction to Innovation

• University College Cork (UCC) lecture on innovation
• Focuses on a "tradition of independent thinking"
• Explores innovation in organizations, fundamental questions, and key dimensions

Every Organization Innovates

• Organizations innovate for growth and sustainability, either currently or in the past
• Examples of innovations are shown visually, encompassing various sectors.

Fundamental Questions

• The lecture emphasizes crucial questions for understanding innovation: Who, When, How, Why, What and Where.
• Visual aids, like a mind map, illustrate the interconnectedness of these questions.

Innovation - What

• Innovation is defined as a process of change, introducing new and valuable elements, enhancing customer satisfaction, and enriching the knowledge base of an organization
• Innovation isn't a single event, instead it's a process. Key steps include creativity, exploration, and exploitation of resources, followed by measuring the value creation.
• Innovative aspects offer competitive advantages in the marketplace. (Novelty is in the eye of the beholder)

Where: Innovation's Varying Context

• Innovation varies based on company size and industry. Different size companies (medium-sized, small, and micro) have varying resource capabilities and contexts for innovation.
• Industry also plays a crucial role, with "high-tech," "medium-tech," and "low-tech" sectors having different innovation characteristics. High-tech industries spend a larger portion of their revenue on research and development (R&D). This section also outlines various types of firms (R&D-intensive, non-R&D-intensive).

Key Dimensions

• Key dimensions for analyzing innovation, covering novelty (incremental, radical), platform and families of innovations, discontinuous change, level of innovation (component or architecture), and timing of innovation (life cycle).

Kondratiev Cycles: When

• Kondratiev cycles are long-term waves of economic expansion and contraction, with specific 'phases' and overlaps
• Historical periods and technologies associated with each wave (steam engine, electricity, petrochemicals, information technology) are shown.

Why Innovate

• Organizations innovate for various motivations, such as enhancing sustainability, improving return on capital, increasing quality/productivity, expanding markets, cutting costs, reducing lead times and increasing profitability.
• Unfortunately, innovation initiatives can often face substantial challenges (e.g., 50-90% of initiatives fail to achieve their targets.) Specific implications include loss of resources and lowered morale.

Effective Strategy: Key Questions

• Crucial questions for devising an effective innovation strategy: How will we create value? How will we deliver value? How will we capture value?
• Recognition of the challenge involved in realizing innovative strategies, drawing on Thomas Edison's quote about the importance of persistence despite setbacks.

SME Context Not Same

• Small and medium-sized enterprises (SMEs) have distinct contexts for innovation compared to larger firms. High-tech SMEs are often young, with experienced management teams, financed adequately, and focus on novelty. In contrast, low/medium-tech SMEs are usually more established, with family- or regionally-focused leadership, and often have tighter profit margins
• SMEs frequently face constraints (limited financial resources, mature/commodity markets, and limitations in R&D history).

Examples of LMT SME Innovations

• Examples of innovations from limited market technology (LMT) SMEs in specific sectors like animal feed, metal production, and food processing.
• Some key factors are product extension/process licensing, process innovation in product lines, and strategies to establish a strong supply chain presence