Innovation intro

The Amaté platform
- Preliminary Draft -
Introduction
March 30, 2016
Innovation Management
Is a State of Mind

• I work with managers to help them
understand how enterprise applications,
web and mobile technologies can enrich
their careers.
• The client portfolio in the ICT industry
includes Microsoft, Apple, Ernst & Young,
France Telecom, HP, IBM, Oracle and SAP
•The work with the IT industry in Europe
has included fifty partner and customer
conferences, a dozen case studies, and
various marketing support activities.
Prof. Lee SCHLENKER,
Professor of Information Systems
Deputy Director, ESC PAU
Web : www.leeschlenker.com
Introduction Typologies ProcessesDefinitions

http//DSign4.biz
• Course slides
• Recommended reading
• Course deliverables
• Student input

•In this module, we will explore the
relationship between business and
innovation, and analyze some of the
current applications in the tourist
industry.
•The aim of the present module is to
arm students with a coherent set of
concepts, methods and metrics to
identify, nurture and evaluate
business innovation.
•. The course is structured around
four specific axes:
The context
Methods and technologies
Case studies
Evaluation Metrics
i. CHAT
ii. Continuous Productivity
iii. Specificity
iv. Terminology
v. Links with creativity, knowledge
management
vi. Typologies
vii. Innovation Processes
viii. Innovation Drivers
ix. Innovation Models
x. The e-workbook

Malcolm Gladwell’s Creation Myth: Xerox PARC, Apple, and the truth about
innovation is a story about the mouse and how inventions travel – and
are transformed – across time and place.
 Malcolm Gladwell discusses the factors that the factors that distinguish
an innovation from an invention. What is the difference between the
two ?
 The author suggests that by adding limits or constraints companies can
actually foster innovation. How does the example of the mouse
demonstrate this?
 The article also appears to imply that success requires failure. How so,
and what are the implications for work cultures that seek to avoid risk ?
 The story also suggests that innovations are rarely unique, but often
simply adaptations existing ideas to new conditions. What other
examples confirm this contention?

Definitions:
 Innovation is the sum of invention plus the commercialisation of that invention. (D.R. Ireland)
 Innovation = conception + invention + exploitation (Henry & Walker )
 Innovation is a process by which a company
 Builds insights about its customers
 Identifies and evaluates unique market opportunities and prepares a plan to seize them
 Develops a stream of winning products (JP Deschamps)
“Business has…two basic functions: marketing and
innovation. They produce results - all the rest are costs”
Peter Drucker

“The implementation of a new management
practice, process or structure that
significantly alters the way in which the
work of management is performed and is
intended to further organizational goals.”
PRINCIPLES
PROCESSES
PRACTICES
STRUCTURES
Julien Birkinshaw

 Harder, better, faster…
 Mechanized productivity
 Knowledge productivity
 Continuous Productivity
)
Steven Sinofsky

 Economic development consists of
three distinguishable stages of
invention, innovation and imitation
 An ’invention’ is an idea, a sketch or
model for a new or improved device,
product, process or system.
 An ’innovation’ is accomplished with
the commercial transactions of the
product, process, system or device.
Invention vs Innovation
Joseph Schumpeter

Product innovation, which involves the introduction of a
new good or service that is substantially improved.
Process innovation involves the implementation of a new
or significantly improved production or delivery
method.
Marketing innovation is the development of new
marketing methods with improvement in product
design or packaging, product promotion or pricing.
Organizational innovation (also referred to as social
innovation) involves the creation of new
organizations, business practices, ways of running
organizations or new organizational behavior.
Business Model innovation involves changing the way
business is done
Innovative Thinking: Six Simple Secrets
by Padi Selwyn, M.A

0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Technological Product Business / business
model
Strategy / strategic Organizational /
organisational
Administrative Management
Numberofhits
Julien Birkinshaw

 Product innovation: changes in the things which an
organization offers
 Process innovation: changes in the ways in which
they are created an delivered
 Position innovation: changes in the context in
which the product or services are introduced
 Paradigm innovation: changes in the underlying
mental modes of what an organization does
Bessant and Tidd (2007)

• Place - changes in geography, time, physical
resources and budget
• Platform – enriching how information is produced
and consumed
• People – modifying the frame of reference
• Practice - impacting the reality of management
Schlenker and Chantelot (2015)

Tidd et al. (2005)

Research &
development
Manufacturing Marketing user
technology push
Research &
development
ManufacturingMarketing user
market pull

Idea ProductMarketingR&D Manufacturing
latest science and technology
advances in society
Societal needs
and the market place
TECHNOLOGY
PUSH
MARKET
PULL
Rothwell and Zegweld (1985)

– New business opportunities
– Multidisciplinary R&D projects
– Start up projects
– IP Strategy
– IP Tactics
Innovation &
R&D Strategy
R&D Knowledge
Management
New Business
Development
Intellectual
Property
– Technology teams
– Cooperations (Universities, Institutes)
– Innovation Forum
– People exchange
– IT Systems R&D
– Innovation and R&D strategy
– Strategic areas and technologies
– Innovation pipeline
– New technologies

• Tourism products are “experience
goods
• Classification according to the nature of
the innovation
• An emphasis is on non-technological
forms of innovation, such as professional
know-how, brands and design
• The importance of personalization and
networked effects
©2014 L. SCHLENKERIntroduction Typologies ProcessesDefinitions
Xavier Decelle (2004)

• Based on the Schumpeterian idea of
“creative destruction”
• Application to the tourism industry is
attributed to Anne-Mette Hjalager
(2002)
•Two dimensions: intensity of
obsolescence of knowledge and
intensity of change

• A more synthetic vision of innovation
• Four levels, from customer expectations
to the means and resources deployed by
the provider.
• Layers 1 and 2 represent the demand
for service
• Layers 3 and 4 are the supply of
services
• The core of the construction of
innovation.

• The adoption of innovation can be understood
from a cyclical standpoint
• First phase - the incremental process
innovation intended to enhance the efficiency of
a service by substituting capital for labour.
• Second phase - an accumulation of
knowledge enable radical process innovations
improving the quality of service
• Third phase the role played by network
technologies and the domination of product
differentiation strategies

Innovation intro

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