1 - 2 - defining innovation for business strategy (19-18)

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In this topic, we're looking atThe Innovation Landscape, and the way thatI'll cover it, is to gallop through whatI call a very Short Course on innovation.And we'll cover Some ofthe Basic Perspectives to Helpyou Interpret Innovation Ideas.And so while we'll cover someof these later in the course.We're also going to give you a taste of,of what they are.And give you a feel forhow they might fit.And sort of have you dipyour toe in the water forwhat these what these topics are.So let's get started.We're looking at Innovationas a Concept here.And when you think about innovation.I think the fundamentalthing about it is that,if you think about innovation asa Process with Identifiable Steps.That's a very important thing.So, you want to frame your understandingof innovation as a process, with steps.And, in those steps.People play Roles in the Process.Every step, different peopleplay different roles, and soyou have process steps and you have roles,and you could also say that,if you look at as I have in a numberof other courses that I've taught,we've taught this from the perspectiveof various different disciplines.From the discipline obviouslyof management here butalso from economics from history,from sociology, from psychology.There are all kinds of ways in which youcan look at the field of innovation.And there are many people outthere who have written books anddone studies, andhave courses that relate.To innovation or from that own,their own perspective,their own disciplinary perspective.And we could say that innovation is inthat regard part or many, many frameworks.It's part of the business frameworkthat's a framework we're looking at.But it's also the framework fororganizational behavior.It's the framework for teens.It's the framework ofindividual entrepreneurship.From all kinds of different frameworks,andso we'll be aware of whatthose frameworks are, butwe'll also begin to focus on themas we look at different topics.But, we can also say that innovationcan be systematic modeled, andour job is to begin to recognize how.Those models work andhow we can understand innovationby looking at how it's modeled.The other fundamental concept aboutinnovation is that it produces Results andit Adds Value.It's not just that it produces results,because it just is producing some kind ofresult it doesn't add value,it won't qualify as an innovation.So let's talk about a little bitabout what innovation is not.Popular beliefs about whatinnovation is and is not are, are,many many publications many conversations.Perhaps many courses.And certainly it's notjust artistic creativity.Now you might argue that, well,artistic creativity adds certain value.It adds some aesthetic value.And I wouldn't dispute that.But it doesn't add value inthe marketplace for for customers.It's not just an invention.You might say well,isn't an invention a real breakthrough?Yes it is, but an invention thatlet's say sits on the shelf ofthe patent office without actuallybeing implemented in the marketplace isnot going to produce an innovation.It doesn't add value in the marketplace.Innovation is not just a Bright Idea.We all have good ideas.But if we don't do something withthose ideas, if we don't take 'emto the next step, they're not going tobe a res, resulting in innovation.Innovation is not just Problem-Solving.Problem-Solving could help fix somethingbut not necessarily improve it.What, what innovation doesis it solves a problem andimproves the way in whichthe problem was addressed.Prior to the problem solving effort.And innovation is not simplyBasic Incremental Improvement.It's not just making somethinggo a little bit faster.Not making some,some process work a little bit smoother.Is significant,in some cases a radical improvement.So these are things thatinnovation is not andwe'll begin to differentiate howinnovation isn't these things.And how it is something that adds value.So, also we could say thisis another basic idea.We can say that innovationoccurs at different levels.One could argue that withthe individual where you have creativeskills and ideas and, and your,your active and doing things.yes.You can be innovative.But you're not necessarilyproducing an innovation, per se.The same thing goes at the team level.you, you're not producing a an innovationeven though you may be engaging ininnovative activities.When we get to the large unit orthe organization where if you look atthe purpose of an organization somethingthat is structured, for a particularmission or particular goal, a particularpurpose sometimes a profit making purpose.Sometimes a not profit making purpose.Even a governmental organization has a,has a mission.There is where you have innovationroles that get defined,and you have an outcomethat produces value.So at the individual level andat the team level,you are doing innovative activities,but you're not in the realmof an organization that is ultimatelyproducing value in the marketplace.Industries have haveinnovation at that level.The steel industry, the automobileindustry, the computer industry.All leverage things like new technology toproduce innovative results, and add value.And at the Societal level, orat the Marketplace level we're,we're thinking about large scaleviews of the landscape of innovation.The way you in which you look atinnovation is to see how it is to fuse.How it is moved andadopted by different groups, differentorganizations, different competitors.And how that works.And so those are the ways in which we canlook at innovation at different levels.I would argue that innovationat the individual andthe team level is reallymostly creativity.When you get into a,at the organizational level,where organizations have missions andpurposes,that's when you begin to see innovationproducing value for a user community.So, we can look at 3 Viewsof Innovation as a Process.There are New Product Success Factors,and the, the process that youcan use to get to a New Product.Has innovative success factors.And you can look at Innovationas New Product Development,which is the very common.Way in which innovation is lookedupon because we usually look at andidentify an recognize innovations asproducts, the products that we use.the, the smart phonesthe the televisions the the clickersthe all the different tools thatwe have that are products we canvisualize them we can put our handson them they are recognizable.So Innovation as a Product Development,New Product Developmentis easy easy to spot.Innovation as a New Technologyisn't really as easy to spot forthose of us who are let'ssay people on the street.For people in research anddevelopment labs, there they wouldbegin to see new technologies.It could be bio technologies,they could be information technologies,they could be other kinds of technologies.Where they you can begin to viewinnovation as a process that willproduce these technologies.And then finally Innovation asa Management Improvement this isThe whole world of making organizationsrun better, is really driven by takingadvantage of innovation opportunitiesto make organizations run better andmore effective.So let's first look at.New Product Development as, as Innovation.And you can see in this list of steps.The steps that it takes to run throughto ultimately get down to the bottom.Which is to support some problemsolving and improvement.And add value of that new product.That new product.The demonstration of whether that newproduct adds value in the marketplace iswhether or not it is being usedby lots of people and, andultimately whether it's beingsold to lots of people.Another way is to look at newtechnology as a trigger of innovation.So the steps there are that yourecognize a break through technology oryou discover it.Or you recognize the user need, andyou respond to that need with an ideathat has the technology application.And you translate that intosome form of solution.And you ultimately have it be adopted byusers and, and I think we see this daily.Management Practice as an Innovationis another way to look at innovation.Where you you can go into an organizationand observe needs and opportunities.Management consultantsdo this all the time.They walk into organizations and, and see.That there are things missing.There are things that aren't working.Sometimes the idea is simply to fix them.Another way is to bring innovationinto the process and say,how can we improve the way in whichwe do this, and do things better ina different way and add value to the wayin which the organization operates?So, looking at all these things and we'lllook at this in subsequent presentations.But, I wanted to put in front of youa Generic set of Process Steps forInnovation.And.You know there are wholerange of them scanning,recognition, ideation, conceptdevelopment, prototyping, testing andevaluation, actually producingthe product or the service.Positioning it adopt getting it adopted inthe marketplace or in the user community.Supporting and refining its,its ongoing the effectiveness, andrecreating it if it needsto be revised and improved.So its a cyclical process, butit is the, these are the genericsteps in any innovation.You can map any innovation along these,these process steps to understand it.And then likewise the we're,we're going to be talking about innovationrole players and what we'll find and,and we're going to be dealing withthis in a, in a subsequent discussion.But Role Players are have different.Functions and different rolesin the process of innovation.And they they maybe don't havethese as organizational titles, butthey do play these roles.People spot opportunities,they scan for opportunities.People invent.I mean, we recognize that term.There are the creators of an idea.People test them.For feasibility, people champion them tomake them work inside an organization orinside a market segment.There are gatekeeperswho broker knowledge andinformation andtalent to make things work.There are process managers thatorchestrate the innovation process.There are sponsors.That provide resources,they're protectors thatinsulate the creative teamsthe skunk works if you will.In organizations that allowthem to be creative andto produce the innovative work that theydo, and then finally there's the seller.The role that helps make the innovationwork in the marketplace.So these again are, are, is a frameworkfor understanding roles in the innovationprocess that you can begin to layer ontounderstanding how an innovation works.I want to talk a little bit aboutthe notion of Innovation Diffusion.This was founded orreally defined by Everett Rogers.This was a communications sociologistwho really studied how differentrural communities adopteddifferent agricultural practices.That's how it began.That's how the.Look at Innovation Diffusionbegan as a study.And, so Innovation Diffusion isthe process by which a discovery orinnovation is communicatedthrough various channels orcommunities by members of,of that community.So it is a process where a new ideais accepted in the marketplace.And it the rate of diffusion is the speedat which it spreads and is used.So you could think about the spreadof something as basic as a,as a smart phone andhow it has spread and really we'll,we'll talk about this in anotherpresentation the creative destruction.Of the of the standard dial telephone.Or the push button telephone.The desk telephone.And how it has been, in effect,displaced by, and by a smartphone.And displaced by the useof a new innovation.And so, the idea of innovation,and in this figure here.What we're looking at here is a figurethat is a kind of a bell curve, andthis is a standard way to portraythe Innovation Adoption cycle.And down at the bottom you can see the.The types of people who adopt variousthings, and the volume under the curve isreally the volume of people thathave adopted that innovation.And so what we see on the left handside its the, the Innovators orwe could call them the Techies.Who are the people who first adopted.Apple computers back in the 80s.they, they, they were the hobbyists,the people who tried things.Even today,we have we have people who are usingvarious innovations way aheadof whoever else is using them.And then we have a larger segmentunder the curve, the Visionaries,the people who are the first.adopters, Early Adopters.And then we have the Early Majority.And then gradually over time, sothere's a time frame and a timeline thatgoes across the bottom of that curve.And over time graduallyevery adopts something.And it may be that somepeople never will adopt.Let's say a smartphone.You know there are people who saythey're just not going to do it.And, and so there's always going tobe some segment of the market.And some segment of the population thatis not going to adopt an Innovation.But this is a a hypotheticalway of understanding,how innovations are adoptedin the marketplace.And so it's a framework foryou to understand how that works.And we'll we'll dig into thislater in the course, butI wanted to give you a taste of what thisvision is about the innovation process.Managing Innovation Value is an essentialingredient of understanding innovation.There're various ways in whichinnovation value can be captured.It could be Intellectual PropertyManagement in terms of patents.It could be Intellectual Asset Managementin term of talent you have inyour organization obviously or.The real talented organizationsthat even the Proctor & Gambles,I mean we can talk about Google andsay well they really got talent there.But, what we've really also foundin in ordinary organizations,consumer based organizations, placeslike Proctor & Gamble have an incrediblebase of very creative peoplein both intellectual assets.And the creative assetsthat they have are,are are really what helpsmake that company run.And then Intellectual Capital Management,where you harness the hidden value ofan innovation and you, you leveragethat that innovation as capital that helpsmake your, your organization work better.Ultimately we want you toAct like an Innovator.There's a,there's a book out there that is,is looking at innovation fromthe perspective of Leo, Leonardo Da Vinci.And so these are the, the seven principlesof Da Vinci that we have captured.And this is a way that youcan begin to act, act out.And be effective as an in,as an innovator.And what you want to do is to scan andlook andsee opportunities and andbasically recognize relationships.And frameworks, and sothere's some systems thinking here.There's some opportunity recognition here.There's, there's seeing how thingswork and seeing what the effects are.So it's a, it's an overallframework of understanding areain which you're operating in.Well, here's a brief summaryof what we've talked about.This is again a, a quick gallopthrough the Innovation Landscape.We want you to understand basicinnovation vocabulary and concepts.I would suggest strongly that youexplore the textbook's index,that will build yourinnovation vocabulary.You know?Not everything is going to be programmedin a, a chapter, and, and section.process.But you can explore that index and,and dig in there.you, you'll recognize the threebasic forms of innovation.New Products, New Technologies andNew Management initiatives.And then you want to ultimatelyunderstand how to manage these processes.And that's really what innovationmanagement is all about ismanaging the innovation process, but tomanage it you first got to understand andso that's what our job is.