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Innovation Process
Innovation
What is innovation?
Schumpeter argued that innovation comes about
through new combinations made by an
entrepreneur, resulting in
a new product,
a new process,
opening of new market,
new way of organizing the business
new sources of supply
Innovation
Understanding the concepts
Research,
Development
and
Research
Innovation
Types of innovation?
Product/service: introduction in the market of
new or significantly improved products or
services, in what respects to their features and
usability.
Process: implementation of new or significantly
improved processes (manufacturing, logistics,
and distribution).
Types of innovation?
Organizational:
Innovation
within
the
organizational
methods
in
business
and
tools,
involving
significant
Types of innovation?
Organizational:
Innovation
within
the
organizational
methods
in
business
and
tools,
involving
significant
Grades of Innovation
Grades of innovation
Incremental
Distinctive
Disruptive
Grades of innovation
Grades of Innovation
Incremental innovation:
The
Incremental
Distinctive
Disruptive
new
incorporates
product
a
few
new
10
Grades of innovation
Grades of Innovation
Distinctive innovation:
Although
Incremental
possessing
some
Distinctive
Disruptive
previously
functions.
correspond
to
non-existing
Progress
is a
Winning
Appeal
Grades of innovation
Disruptive innovation:
This type of innovation is
Grades of
Innovation
Incremental
Distinctive
characterized by a complete
breakdown of the previous
existing products. It
may
satisfaction
of
certain
innovation in 2 ways:
Closed Innovation: research and development is
performed
in-house
and
any
or
little
external
knowledge is used
Open Innovation: the organization uses external
Closed Innovation
For most of the 20th century,
many
leading
corporations
industrial
adopted
this
model.
A company generates, develops
and commercializes its own
ideas.
Tight
control
of
all
the
Opened Innovation
External
company
knowledge
is
competitors,
used
from
the
(suppliers,
entrepreneurs
17
13.9
Technology-based
Redesign
Sociotechnical systems
Information technology
Reengineering
Restructuring
Organizational
Change
Task-based
People-oriented
Job specialization
Job enrichment
OD
HRM systems
Adapted from Figure 13.3
Redesign Approach
Redesign approach involves internal
structural changes
Reengineering - creating new ways to get work
done
Restructuring - making changes in the distribution
of authority, responsibility, and control in the
organization
SAC1
SAC3
SAC2
$10
LAC
$8
B
SMC1
SMC3
LMC
SMC2
Q1
Chapter 7
Output
Slide 22