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The innovation management process

Evolving models of the innovation process

Can we manage innovation? Introducing the

concepts ofOrganizational Routines or

Capabilities

Specify the different phases of the innovation

process How context affects innovation

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First and second generation models

R&DDESIGN &

ENGINEERING

MANU-

FACTURINGMARKETING SALES

First generation (50s-60s): Technology push Linear model

MARKET

NEEDS

MARKETING

DEPT.

R&DMANU-

FACTURING

SALES

Second generation (mid 60s-70s): Demand pull

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Next generation model

marketing

R&D

Productdevelopment

Componentsmanufacture

Productmanufacture

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Managing complexity

Radical

NetworksR&D

Market

product

processe

sIntellectual

Capital

Increment

al

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Can we manage innovation?

The majority of failures are due to some

weakness in the way the innovation

process is managed.

Technical resources (people, equipment,

knowledge, money, etc.)

Capabilities in the organization to manage

them

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Figure 2.1 Simple representation of the innovation process

2005 Joe Tidd, John Bessant and Keith Pavitt

The innovation management process

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Searchinglooking for threats and opportunities for

change within and outside of the organisation.

Technological opportunity

Changing requirements on the part of the market

Selecting deciding (strategically from how the

enterprise can develop and taking into account risk) what

to respond to.

Flow of opportunities

Current technological competence

Fit with the current organizational competence Fit with how we want to change

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Implement turn potential ideas into a new product or

service, a change in process.

Acquiring to combine new and existing knowledge(available within and outside the organization) to offer

a solution to the problem

Executing to turn knowledge into a developed

innovation and a prepared market ready for finallaunch

Launching to manage the initial adoption

Sustaining to manage the long term use

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Learning to learn from progressing through this cycleso that they can build their knowledge base and canimprove the ways in which the process is managed.

Restart the cycle

Failure why?

Refine, improvement next generation Learning about technology, routines & organization

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Figure 2.1 Simple representation of the innovation process

2005 Joe Tidd, John Bessant and Keith Pavitt

The innovation management process

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Innovation is a risky process....but also amandatory one. Success depends of a variety

of: Internal factors

Good management

Core competencies

Clear innovation strategy

Right technology

External factors

Links with market and suppliers Learning from competitors

Institutional support: financing, human capital, etc

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Successful innovation

New products, processes and services account for

an increasing share of sales

Lower prices

Better-performing products

Better features for certain users (niche)

of resources devoted to the development of new

products go to unsuccessful projects

35% of products launched fail commercially