Innovation Management PDF

Innovation Management 1 0. Orga 2 Personal data  Born on September 7th 1984 in Cologne  Living in Duesseldorf with husband and...

Innovation Management 1 0. Orga 2 Personal data  Born on September 7th 1984 in Cologne  Living in Duesseldorf with husband and three sons  05/2015 – 06/2019: Innovation manager (Deutsche Apotheker‐ & Ärztebank)  04/2010 – 04/2015: Senior Associate (Institute for Strategic E‐Mail: Management, Hannover/Siegen) kathrin.weidner@hochschule‐rhein‐  04/2009 – 03/2010: Project manager waal.de for startups (Incubator bizeps gazelles)  09/2004 – 01/2009: Consultation times: according to prior Manager (Commerzbank AG) agreement © Prof. Dr. Kathrin Weidner 3 Moodle Course Name: 8433 Innovation Management, WS2023/24 Enrolment Code: none Every chapter of the script, once taught completely, as well as all the exercises will be uploaded. Note: The results for the exercises will not be uploaded, but discussed in class. All relevant announcements regarding the lectures and the exercises will be made in our moodle course, so please check continuously! Legal note: These slides are available only for own personal use during this class. You may not distribute or reproduce the materials for any other purposes without written permission. It is not allowed to print, reproduce or post this material online at any website, social media platforms, or any other outlet. Thank you very much. © Prof. Dr. Kathrin Weidner 4 Mandatory field trip + poster presentation Booster your final grade: Once you passed the exam, your total grade will be calculated as such: 70% exam grade + 30% poster presentation grade Example: Exam grade = 3,0, poster presentation = 2,0  3,0 * 0,7 + 2,0 * 0,3 = 2,1 + 0,6 = 2,7 Register on moodle for one of the 4 field trips: Experience innovation management first hand in one of the four organizations First come, first serve! Deadline starts 05/10/2023 12:25 and ends 06/10/2023 20:00! Travelling to the companies and back again needs to be organized by yourselves! © Prof. Dr. Kathrin Weidner 5 Mandatory field trip + poster presentation Please form groups (max. 4 students) and design one poster on the field trip you joined. The poster will be presented on 11/01/2024 in our exercises. What should be on the poster? Name of organization and name of authors Why is this organization innovative at all? What is the innovation of that specific company? What about their innovation structure and culture? How do they deal with innovation in general? Poster guidelines Concentrate only on main points Find visual ways to show your idea – let the illustrations tell the story Vary the size and spacing of the poster sections to add visual interest Aim for about 25% text, 45 % graphics/pictures, 30% empty space Prepare a separate sheet (Din A4) with all references (pictures, graphics etc.) © Prof. Dr. Kathrin Weidner 6 Innovation management in practice (12‐16 PM) IXON Cloud TROX GmbH Zuster Bloemstraat 20 Heinrich‐Trox‐Platz NL ‐ 5835 DW Beugen D‐47504 Neukirchen‐Vluyn Forschung & IoT Platform Entwicklung 12.10.2023 Automation 26.10.2023 Brandschutz & Inno Spirit Strömung Startport GmbH Altana AG Philosophenweg 31‐33, Abelstraße 43 47051 Duisburg 46483 Wesel Creative and New work innovative 23.11.2023 07.12.2023 Design and Focus on places logistics © Prof. Dr. Kathrin Weidner 7 Literature Amit & Zott (2012): Creating Value Through Business Model Innovation. MIT Sloan Management Review 53(3), 41‐49 Anderson, C. (2009): The Feature of A Radical Price. Hyperion, New York. Burns & Stalker (1961): The Management of Innovation, Tavistock, London. Christensen et al. (2018): Disruptive Innovation: An Intellectual History and Directions for Future Research, Journal of Management Studies, DOI: 10.1111/joms.12349 Christensen et al. (2009): The Innovator’s Prescription: A Disruptive Solution for Health Care. New York: McGraw‐Hill Crossan & Apaydin (2010): A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature. Journal of Management Studies, 47:6. doi: 10.1111/j.1467‐6486.2009.00880.x Dyer & Singh (1998): The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23, 660–679. Gassmann, Frankenberger & Csik (2014): The Business Model Navigator. 55 Models that will revolutionise your business. Pearson. Hauschildt & Salomo (2011): Innovationsmanagement. Vahlen. von Hippel et al. (2005): User‐innovators and “local” information: The case of mountain biking. Research Policy, 34 (6), 951‐965. Larsson et al. (1998): The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances. Organization Science 9(3), 285‐305. Osterwalder & Pigneur (2011): Business Model Generation. Ein Handbuch für Visionäre, Spielveränderer und Herausforderer. Campus Verlag. Pattikawa et al. (2006): Understanding new product project performance : A meta‐analysis. European Journal of Marketing, 40, 1178‐ 1193. Plattner, Meinel & Weinberg (2009): Design‐Thinking. Innovation lernen – Ideenwelten öffnen. FinanzBuch Verlag, München. Schumpeter (1911): Theorie der wirtschaftlichen Entwicklung. Trott (2016). Innovation Management and new product development. Pearson. Witte, Eberhard (1973): Organisation für Innovationsentscheidungen ‐ Das Promotoren‐Modell, Göttingen. © Prof. Dr. Kathrin Weidner 8  Date Time No. SWS Topic (preliminary) Agenda 05.10.2023 08:15‐09:45 L1 2 Dimensions of innovation I (slides online) 12:15‐15:30 Ex1A/B 2 Innovation matrix with examples 12.10.2023 08:15‐09:45 L2 2 Dimensions of innovation II 12:15‐15:30 Ex2A/B 2 IXON 19.10.2023 08:15‐09:45 L3 2 Theories in innovation management and success of innovation 12:15‐15:30 Ex3A/B 2 innocent Case Study 26.10.2023 08:15‐09:45 L4 2 Organization's innovation system 12:15‐15:30 Ex4A/B 2 TROX 02.11.2023 08:15‐09:45 L5 2 Constraints and promotors 12:15‐15:30 Ex5A/B 2 Spotify Case Study 09.11.2023 08:15‐09:45 L6 2 Business Model Innovation 12:15‐15:30 Ex6A/B 2 Examples 16.11.2023 08:15‐09:45 L7 2 Gründungswoche (no lecture and exercise) 12:15‐15:30 L7A/B 2 Gründungswoche (no lecture and exercise) 23.11.2023 08:15‐09:45 L8 2 Patterns of business models 12:15‐15:30 Ex8A/B 2 startport 30.11.2023 08:15‐09:45 L9 2 Creativity techniques & Design Thinking 12:15‐15:30 L9A/B 2 Application 07.12.2023 08:15‐09:45 L10 2 Disruptive innovation I 12:15‐15:30 Ex10A/B 2 Altana 14.12.2023 08:15‐09:45 L11 2 Disruptive innovation II 12:15‐15:30 Ex11A/B 2 Examples 21.12.2023 08:15‐09:45 L12 2 Strategic innovation & R&D 12:15‐13:45 Ex12A 2 Future automobile market 14:00‐15:30 Ex12B 2 Mrs. Da Silva (webex) 11.01.2024 08:15‐09:45 L13 2 Diffusion of innovation: internationalization 12:15‐15:30 Ex13A&B 2 Presentation: Innovation management in practice 18.01.2024 08:15‐09:45 L14 2 Diffusion of innovation: lead user & open innovation 12:15‐15:30 Ex14A/B 2 Exam preparation 25.01.2024 08:15‐09:45 L15 2 Exam preparation (online) 12:15‐15:30 Ex15A/B 2 Exam preparation (online) © Prof. Dr. Kathrin Weidner 9 Learning outcomes Having completed this course, students have a sound knowledge of the economic role of innovation and the innovation process. They can give an overview on the development of innovation theory. Students know about the different characteristics and economic impacts of product‐related as well as process‐related innovations and study as well as apply concepts such as business model innovation and disruptive innovation. Furthermore, students deal with the organizational constraints with regard to innovation processes, creativity and invention taking place in organizations. They learn how to deal with such challenges and overcome them by applying the concept of promotors. Transferring those economic fundamentals into industrial practice, students receive an understanding of state‐of‐the‐art techniques for managing the innovation process in a company, and are enabled to apply them. Concepts include the stage‐gate‐approach, portfolio technique, design thinking, TRIZ, crowd funding, and open innovation. © Prof. Dr. Kathrin Weidner 10 The most innovative companies... BCG (2012) BCG (2020) 1 Apple 1 Apple 2 Google 2 Alphabet 3 Samsung 3 Amazon 4 Microsoft 4 Microsoft 5 Facebook 5 Samsung 6 IBM 6 Huawei 7 Sony 7 Alibaba Group 8 Haier 8 IBM 9 Amazon 9 Sony 10 Hyundai 10 Facebook 11 Toyota 11 Tesla 12 Ford 12 Cisco 13 Kia Motors 13 Walmart 14 MBW 14 Tencent 15 Hewlett‐Packard 15 Hewlett‐Packard 16 General Electric 16 Nike 17 Coca‐Cola 17 Netflix 18 Dell 18 LG Electronics 19 Intel 19 Intel 20 Walmart 20 Dell 21 Starbucks 21 Siemens 22 Nissan 22 Target 23 BASF 23 Philips 24 HTC 24 Xiaomi 25 Audi 25 Oracle https://www.bcg.com/de-de/publications/2020/most-innovative-companies/successful-innovation © Prof. Dr. Kathrin Weidner 13... and why they are so innovative Innovative enterprise Explanation for innovative capabilitiy Apple Innovative chief executive Google Scientific freedom for employees Samsung Speed of product development BMW Design Starbucks In‐depth understanding of customers and their cultures Toyota Close cooperation with suppliers Source: Trott (2008) © Prof. Dr. Kathrin Weidner 15 What is the innovation? (1/2) iPhone iPad iMac © Prof. Dr. Kathrin Weidner 16 What is the innovation? (2/2) „Simplicity is the Ultimate Sophistication“ (Grundsatz von Apple) Steve Jobs' objective is "to achieve a form of simplicity based on overcoming complexity, not ignoring it. "By ordering complexity, you simultaneously achieve that the product basically subordinates itself to you.” "Simplicity means working your way through the depths of complexity. (...) It is better to approach simplicity further down, deeper, to understand the product in a completely new way, including its production process.” © Prof. Dr. Kathrin Weidner 17  Innovation is… five forms of Schumpeter (1911): innovation „…the introduction of new goods, new methods of production, the opening of new markets, the conquest of new resources of supply, and the carrying put of a something new for Barnett (1953): new organization of any industry“ the acquiring unit “An innovation is... any thought, behavior or thing that is new because it is qualitatively different Rogers (1983): from existing forms.” “An innovation is an idea, practice or object that is perceived as something new by an individual or other unit of adoption.“ qualitatively new innovation = invention + Dobni (2008): exploitation “capacity to introduce some new product, service Tushman/Nadler (1996): or idea through to the introduction of processes „innovation is the creation of any product, service or and systems which can lead to enhanced business process which is new to the business unit“ performance” increased performance Change in management Crossan/Apaydin (2010): activities “innovation is: production or adoption, Birkinshaw/Hamel/Mol (2008): assimilation, and exploitation of a value‐added “management innovation as the invention and novelty in economic and social spheres” implementation of a management practice, process, structure, or technique that is new to the state of the art economic and social and is intended to further organizational goals” © Prof. Dr. Kathrin Weidner 18 Overview – Dimensions of innovation Kind of Degree of Subjectivity of Process of Success of Roles of innovation: innovation: innovation: innovation: innovation: innovation: What is new? How new? New for whom? Where does it New = New with begin and end? successful? whom?  Product  Technology  Individuum  Idea  The more  Manufac‐ innovative, turer  Process  Market  Group  Invention the more dominated successful? innovation  Social System  Organization  Organization  Prototype  Success  Customer  Strategy  System  Industry  New factors dominated product/ innovation  Society process/ system  Cooperative innovation  Application © Prof. Dr. Kathrin Weidner 19 Kind of innovation: What is new? Allows the user to fulfill new purposes or to fulfill existing purposes in a completely new  new functionality, new features way  effectiveness  (significant) changes in performance or quality Product or service innovation  (significant) change in the unit costs of manufacturers or the costs of use by users novel factor combinations, which allow the production of a certain good at a lower cost,  tangible and intangible processes with higher quality, safer or faster Process innovation  Increased efficiency  administration and core processes  Enforcement mainly within the company  new materials, new forms of energy, new components Input innovation  new knowledge, new property rights  social innovations (in terms of people and behavior) Social and organizational  organizational, institutional and management innovations innovation  contract Innovations Market innovation  new sales market, new sales methods … © Prof. Dr. Kathrin Weidner 22 Overview – Dimensions of innovation Kind of Degree of Subjectivity of Process of Success of Roles of innovation: innovation: innovation: innovation: innovation: innovation: What is new? How new? New for whom? Where does it New = New with begin and end? successful? whom?  Product  Technology  Individuum  Idea  The more  Manufac‐ innovative, turer  Process  Market  Group  Invention the more dominated successful? innovation  Social System  Organization  Organization  Prototype  Success  Customer  Strategy  System  Industry  New factors dominated product/ innovation  Society process/ system  Cooperative innovation  Application © Prof. Dr. Kathrin Weidner 23  How new? – Degree of innovation New products and new markets Markets old new Products old Market penetration Market development new Product development Diversification Source: Ansoff (1966) 24 Incremental versus radical innovation https://www.youtube.com/watch?v=‐FufyUpPMjA&feature=youtu.be © Prof. Dr. Kathrin Weidner 25  Innovation degree: new combinations of means and purpose Purpose (need, customer benefit, application) Perspective of customer old new (technology, solution principle) Perspective of manufacturer Radical innovation Technical innovation new (e.g. MP3‐format, digital (e.g. electric car) camera) Means Customer innovation Incremental innovation old (e.g. iPod, customized (e.g. flash drive) cases for mobile phone) Source: Hauschildt (2004) 26 Incremental innovation Small improvements to an existing product that helps maintaining or improving competitive position over timte e.g. adding wanted or removing unwanted features, reduce costs Incremental innovation is extremely powerful when compounding over time © Prof. Dr. Kathrin Weidner 27 Utterback‘s lifecycle of innovation https://kairosmanagement.wordpress.com/2013/12 /30/utterbacks‐model‐for‐innovation/ © Prof. Dr. Kathrin Weidner 28 Effects of radical innovations Radical innovations often cause a fundamental change ‐ the knowledge base (digital vs. conventional photography), ‐ of the value creation network (tele‐medicine, Internet publication), ‐ the innovation provider or manufacturer (strategies, structures, processes, competencies, cultures, partners), ‐ the innovation demanders or users (strategies, structures, processes, competencies, cultures, partners) ‐ society (values, regulation, institutions, infrastructure) © Prof. Dr. Kathrin Weidner 29  Your task: Find a suitable example and reasons for each box of the matrix! Purpose (need, customer benefit, application) Perspective of customer old new (technology, solution principle) Perspective of manufacturer new Technical innovation Radical innovation Means old Incremental innovation Customer innovation Source: Hauschildt (2004) © Prof. Dr. Kathrin Weidner 32