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3 Structured processes for developing new products For most companies wanting to become more innovative, which they will almost certainly associate with the development of new products, the starting point is the introduction – or revision – of a new product development process. While structured processes for the development and management of new products are no guarantee for improving innovativeness they are nevertheless an important part in an organisation’s armoury to improve new product introduction rate and maximise the benefits from a company’s product portfolio. One of the key dilemmas is described by one interviewee, ‘‘The problem with process is, if you provide too much detail you create information overload; if you have too little detail – people make mistakes and lose perspective.’’ The processes should be about providing guidance, not dictating what needs to be done. The last few years have brought a couple of new insights into processes in the context of innovation. First, a structured process alone is often not sufficient; the behaviours of the people will have to change alongside. Second, many companies have realised that one process is not enough, particularly if innovation is to go beyond the incremental. Incremental and radical innovation require different conditions under which they flourish. Leading innovators have started to address this by either having different pathways or by establishing a pre-process phase. We will come back to that in more detail in Chapter 21. This chapter briefly reviews the evolution of the new product development process, expands on the stage-gate process and product portfolio management as well as the role of the project leader, concluding with some insights into best and worst practice. THE EVOLUTION OF THE NEW PRODUCT DEVELOPMENT PROCESS One of the biggest influences on how companies approach product development in the west has been a concept developed by NASA in the 1960s, introduced to make the management of large-scale, complex defence projects easier. The first version ‘Phased Project Planning’, as it was called, described a basically sequential approach consisting of four phases: • preliminary analysis (phase A) • definition (phase B) • design (phase C) • operation (phase D) 50 MANAGING INNOVATION, DESIGN AND CREATIVITY In addition checkpoint reviews were introduced to ensure that mistakes would not be carried forward into the next phase. While this approach was originally applied to complex, large-scale projects only, its principles were soon scaled down and translated for new product development in a more general way. The fundamental principles – phases and checks between them – are still valid today, and reflected in the now most commonly used kind of process, the stage-gate process, which we will look at in the following section. Figure 3.1 shows the NASA process as seen in Peter W.G. Morris’s book The Management of Projects. Preliminary Design Review (PDR) Critical Desig.
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CHAPTER 12 Managing Innovation and Fostering Corporate Entrepreneurship Copyright Anatoli Styf/Shutterstock 1 Learning Objectives After reading this chapter, you should have a good understanding of: 12-1 The importance of implementing strategies and practices that foster innovation. 12-2 The challenges and pitfalls of managing corporate innovation processes. 12-3 How corporations use new venture teams, business incubators, and product champions to create an internal environment and culture that promote entrepreneurial development. 12-4 How corporate entrepreneurship achieves both financial goals and strategic goals. 12-5 The benefits and potential drawbacks of real options analysis in making resource deployment decisions in corporate entrepreneurship contexts. 12-6 How an entrepreneurial orientation can enhance a firm’s efforts to develop promising corporate venture initiatives. ©McGraw-Hill Education. 2 Managing Innovation Consider . . . To remain competitive, established firms must continually seek out opportunities for growth and develop new methods for strategically renewing their performance. How can innovation and corporate entrepreneurship activities become an avenue for achieving competitive advantage? ©McGraw-Hill Education. Strategic leaders need to manage change. Changes in customer needs, new technologies, and shifts in the competitive landscape require that companies continually innovate and initiate corporate ventures in order to compete effectively. That is why managing innovation is an important strategic implementation issue. Innovation plays an important role in identifying venture opportunities and creating strategic renewal. Firms need to learn how to successfully manage the innovation process and develop corporate entrepreneurship activities. A firm’s entrepreneurial orientation can contribute to its growth and renewal as well as enhance the methods and processes strategic managers use to recognize opportunities and develop initiatives for internal growth and development. 3 Managing Innovation: Definition Innovation allows for Transformation of organizational processes Creation of new & commercially viable products & services Innovation requires new knowledge from Latest technology Results of experiments Creative insights Competitive information ©McGraw-Hill Education. Growth opportunities come through innovation. Innovation = the use of new knowledge to transform organizational processes or create commercially viable products and services. The sources of new knowledge may include the latest technology, the results of experiments, creative insights, or competitive information. However it comes about, innovation occurs when new combinations of ideas and information bring about positive change. In fact, the root of the word innovation is the Latin novus, which means new. Innovation involves introducing or changing to something new. It is a critical part of strategic implementation. 4 Question (1 of 2 ...
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Ch13 - Organisation theory design and change gareth jones
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Organizational Theory, Design,
and Change Sixth Edition Gareth R. Jones Chapter 13 Innovation, Intrapreneurship, and Creativity
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Figure 13.1:
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Figure 13.2: Technological
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Figure 13.3: CPM
Project Design
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Figure 13.4: A
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Figure 13.5: Innovation
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