4ps of innovation space model

Innovation Management

Lecture 1.2

Different Aspects of Innovation

Purpose and Content

To introduce the following key concepts:

Innovation as a process, generic model

Incremental & Radical innovation

Discontinuous Innovation

Innovation Life Cycle

A Process View of Innovation

3

Outputs

‘product innovation’ – changes in the things (products/services) which an organisation offers;

‘process innovation’ – changes in the ways in which they are created and delivered;

‘position innovation’ – changes in the context in which the products/services are introduced;

‘paradigm innovation’ – changes in the underlying mental models which frame what the organisation does.

Source: Tidd, J. and Bessant J. (2013) Managing Innovation, (5th Edition) Chichester, Wiley.

4

4 P Framework

Tidd and Bessant take these 4 P’s to provide a framework for looking at Innovation Space, the space in which an organisation can operate.

5

4 P Framework- Garden Machinery Firm Innovation Space

6

Different Aspects of Innovation

Incremental or Radical – Degree of novelty

Platforms and families of innovations.

Discontinuous innovation – what happens when the rules of the game change?

Level of innovation – component or architecture?

Timing – the innovation life cycle.

7

Incremental or Radical

Do what we do better

Perceived degree of novelty

BIC ballpoint pen

1957 Radical innovation

Since then, incremental changes in materials, inks, ball technology, safety features etc.

8

Platform Innovation

A strong basic platform or family which can be extended

Stretch and adapt to suit different needs

Audi, VW, Skoda

Proctor & Gamble

9

Discontinuous Innovation

Rules of the game change, technology, market, political or other domain

Redefine space and boundaries

Open up new opportunities

Create new conditions for the existing players

Schumpeter’s “creative destruction”

Can you think of other examples?

https://padlet.com/r_stirzaker/ r6c4ii882byx

10

Triggers/sources of discontinuity 1

New markets emerge – Disk drives

New technology emerges – Ice harvesting

New political rules emerge –e.g. Soviet Union

Running out of road – Kodak

Sea change in market sentiment or behaviour – Napster vs. traditional music industry

Taken from text book, table 1.4. Ask students to think of their examples and link to these.

11

Triggers/sources of discontinuity 2

Deregulation/shift in regulatory regime – telecoms.

Fractures along “fault lines” – tobacco

Unthinkable events – 9/11

Business Model Innovation – low cost airlines

Architectural innovation – chip manufacture

Systemic changes which impact whole sectors or even societies “techno economic paradigm” – mass production

Taken from text book

12

Theory of Disruptive Innovation

Utterback 1994 - 27 firms in 8 industries examined, all threatened by radical innovation; only 7 were successful once a disruptive, radical innovation occurred.

Christensen, 1997 – market leaders failed when new markets emerged that required combinations of technologies.

13

Disruptive Innovation

3 components

Enabling technology

Innovative business model

Coherent value network

14

Component/Architecture

Henderson & Clark (1990) Successful innovation requires getting hold of and using knowledge about components, but also about how those can be put together –what they termed architecture of an innovation.

15

Dimensions of Innovation

16

Innovation Life Cycle

17

Purpose and Content

To introduce the following key concepts:

Innovation as a process, generic model

Incremental & Radical innovation

Discontinuous Innovation