Lecture 1 Introduction to Innovation Research PDF

https://ebookcentral-proquest-com.ucc.idm.oclc.org/lib/uccie-ebooks/detail.action?docID=4946361 Lecture: Introduction Every Organisation Innovates For growth and sustainability, they are currently (or have been in the past). Fundamental questions? Innovation- What What do we mean by...

https://ebookcentral-proquest-com.ucc.idm.oclc.org/lib/uccie-ebooks/detail.action?docID=4946361 Lecture: Introduction Every Organisation Innovates For growth and sustainability, they are currently (or have been in the past). Fundamental questions? Innovation- What What do we mean by innovation? “Process of making changes to something established by introducing something new …that adds value to customers…and contributes to the knowledge store of the organization” (O’Sullivan and Dooley) “Innovation occurs through a process, not a single event” (Goffin and Mitchell) Innovation complexity Innovation = Creativity + Exploitation Exploration + Exploitation phases resource requirements Measuring value creating (beneficial/ economic output) Novel aspect offering competitive advantage (But Novelty is in the eye of the beholder) Where: Innovation’s varying context Key dimensions Degree of novelty – incremental or radical innovation? Platforms and families of innovations Discontinuous innovation – what happens when the rules of the game change? Level of innovation – component or architecture? Timing – the innovation life cycle Kondratiev cycles: When? Why Innovate What do organisations want ? Be sustainable Better return on capital Better quality and productivity Increase market share/ new markets Reduced costs Lower lead times INCREASED PROFITABILITY But there’s a problem ! 50-90% of actions/projects fail to achieve their goals Implications … Wasted resources – time, people and money Loss of morale Higher resistance  Effective strategy: Key questions But easier said than done Thomas Edison Quotes How will we Genius is one percent inspiration and ninety-nine percent Create value? perspiration. I have not failed. I've just found 10,000 ways that won't work. Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time. How will we How will we Deliver value? Capture value? Henderson, 2003 SME context not same High Tech Low and Medium Tech Relatively young More established Experienced mgt. team Family/regional mgt. team Small but large firm currently Larger in scale but conservative growth small or gone? Bootstrap/ debt financed Adequately financed Dyadic perspective of current Singularly focus of technological market and future novelty at heart Tight profit margins Higher profit margins Often geog. constrained view Global view Embedded in region/identity Open to exit strategy Other innovation exp. R&D innovation focused focused Importance of growth Importance of sustainability SME innovation literature skewed towards high tech firm model Examples of LMT SME innovations Firm #1 Firm #2 Firm #3 Animal feed Inc Metal Bash Inc Food Inc Ireland- NutX Ireland- Alt Steel Ireland- DairyX  Supplier for animal  CMO producer of  Producer of high end feed for regional widgets dairy products agricultural base  110 employees  45 employees  70 employees  Entrepreneur and prof.  Family owned &  Family & professional mgt. managed mgt.  Established reputation  Specialised New market supplier Product Technical extension process Process innovation for quality, reliability and strong and customer position co- specialist and process anddriving agility new focus creation through product lines and ‘licencing’ out supply chain position innovation network All financially constrained and markets tending towards commodisation Very limited history of R&D