INNOVATION AND DEVELOPMENT - Nordgen · INNOVATION AND DEVELOPMENT Helle Alsted Søndergaard, Associate professor Department of Management ... Trott, P. (2008). Innovation management

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

INNOVATION AND DEVELOPMENTHelle Alsted Søndergaard, Associate professor

Department of Management

Aarhus BSS, Aarhus University

hals@mgmt.au.dk

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

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• Defining innovation

• Innovation in context

• … of strategy

• ... of business models

• … of creating value for customers/users

• … of competences

• ... of creativity

• ... of processes

AGENDA

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

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WHAT IS INNOVATION?

Innovation is the commercialization of an idea/invention (Schumpeter, 1934)

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AN EXAMPLE

Designer:Erik Bagger

Inventer:Brian Vang Innovation = idea + commercialization

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Innovation is the process of turning ideas into reality

& capturing value from them

Tidd & Bessant (2013)

INNOVATION IN A BROADER PERSPECTIVE

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

DEGREE OF INNOVATION…

Application innovation

Radicalinnovation

Incremental innovation

Technical innovation

Technological/resourcechange

Customer benefit

High

Low

Gobeli & Brown (1987)

Do what we do, but

better

Do something different

Tidd & Bessant (2013)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

© 2009 John Wiley & Sons Ltd.

www.managing-innovation.com

Changes in the ways they are created and delivered

Changes in the things an organization offers

Changes in the context they are introduced

Changes in the underlyingmental models which framewhat the organization does

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

© 2009 John Wiley & Sons Ltd.www.wileyeurope.com/college/tidd

INNOVATION IN CONTEXT

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

THE IMPORTANCE OF STRATEGY AND PROCESSES

u Successful innovation demands well planned strategies and implementation processes.

u Why? Because it can take 3000 raw ideas to get one commercial success!

Stevens & Burley (1997)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

The R&D strategic decision-making process, Trott (2008)

SRATEGY IS RESSOURCE ALLOCATION!Important questions to ask…

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

INNOVATION STRATEGY, PISANO (2015)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

BUSINESS MODEL CANVASOsterwalder & Pigneur

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

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Who are your customers?

Who are your users?

Segments?

How are you creating value for them?

How can you create value for them and others?

How is your business model?

CREATE VALUE FOR YOUR CUSTOMERS!

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

THE INNOVATION AMBITION MATRIX

Nagji, B., & Tuff, G. (2012). Managing your innovation portfolio. Harvard Business Review, 90(5), 66-74.

70%

20%

10%

10%

Resourceallocation(investment)

Return on investment

20%

70%

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

CORE COMPETENCES

Core competences are “the knowledge set that distinguishes and provides a competitive advantage”

Four dimensions:

1. Employee knowledge and skills

2. Embedded in technical systems

3. Guided by managerial systems

4. Values and norms associated with all the above

Values and

norms

Skills and knowledge

base

Managerial systems

Technical systems

Leonard-Barton (1992)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

WHEN CORE COMPETENCES BECOME CORE RIGIDITIES

u Core competences can both foster and hinder innovation

u ’Beliefs and behaviours rooted in pastsuccesses’

Leonard-Barton (1992)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

THE ALIGNMENT OF PROJECTS WITH CORE COMPETENCES

Core competence 1

Core competence 2

Projects A-DA

B

C

D

Leonard-Barton (1992)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

Communicatio

n

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

EMPLOYEE CREATIVITY

Amabile(1998)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

WHERE TO GO?

u Where to go, not how to get there!

Amabile

(1998)

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

INNOVATION = INSECURITY

Insecurity Available knowledge

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

THE STAGE-GATE PROCESS MODEL

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

• Sophisticated process

• Planned loops

• Focus on market risk

• Create customer needs

• Addressing the future

Unger & Eppinger, 2011

AN ITERATIVE PROCESS - ’THE SPIRAL WAY’

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

WHAT TYPE OF RISKS IS THE PROJECT FACING?

Technical… will our design work?

Market… can we match needs?

Maximize control ->Stage-Gate

Maximize flexibility-> Iterative

Unger & Eppinger 2011

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

DESIGN THINKING - A HUMAN CENTERED PROCESS

EMPHATHIZE

EMPHATHIZE

IDEATE TESTPROTO

TYPEDEFINE

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

OPEN INNOVATION

HELLE ALSTED SØNDERGAARDPHD, ASSOCIATE PROFESSOR

REFERENCES

u Amabile, T. (1998). How to kill creativity. Harvard business review, september-october, p77-78.

u Brown, T., Martin, R. 2015. Design for Action - How to Use Design Thinking to Make Great Things Actually Happen. Harvard Business Review 93, 9 (September 2015), 56-64.

u Gobeli, D. H., & Brown, D. J. (1987). Analyzing product innovations. Research Management, 30(4), 25-31.

u Leonard-Barton, Dorothy. (1992) Core Capabilities and Core Rigidities: A Paradox in Managing New Product Development.In: Strategic management journal, Vol. 13, pp. 111-125.

u Moore (2004) Darwin and the Demon: Innovation within established enterprises, Harvard Business Review, July-August.u Nagji, B., & Tuff, G. (2012). Managing your innovation portfolio. Harvard Business Review, 90(5), 66-74.

u Pisano (2015) You need an Innovation Strategy. Harvard Business Review; Vol. 89 Issue 1/2, p. 132-140.

u Tidd & Bessant (2009) Managing innovation: Integrating Technological, Market and Organizational Change, 4th Edition, Wiley. u Trott, P. (2008). Innovation management and new product development. Pearson education.

u Unger D. & Eppinger, S. (2011) Improving product development process design: a method for managing information flows, risks, and iterations. Journal of Engineering Design Vol. 22, Iss. 10.