Text books 1 05/11/2017 Pierre Lallement, 1866 Bicycle Guglielmo - PDF document

05/11/2017 Text books 1

05/11/2017 Pierre Lallement, 1866 Bicycle Guglielmo Marconi, 1897 Radio Alan Turing, 1945 Computer Florey & Heatley, 1940 Penicillin Nicolaus Otto, 1876 Internal Combustion Engine Tim Berners-Lee, 1989 World Wide Web T. Edison/J. Swan 1879 Light Bulb Percy Shaw, 1936 Cat’s eyes Alexander G. Bell, 1876 Telephone John Logie Baird, 1923 Television ‘Innovation is the successful exploitation of ideas’ DTI (2004: p5) ‘The first commercial application or production of a new product or process’ Freeman & Soete (1997: p1) 2

05/11/2017 Newness to market New Completel Newness to Company Product y New Lines Products Improvement Line s to Existing Extension Products s s Cost Product Re- Reduction positioning s s Source: Adapted from R.G.Cooper (2001) Invention Commercialization Diffusion INNOVATION • IBM • AT&T Corporate (closed) • Licensing • Dragon’s Den Individual • Collaboration • Google Open (heroic) Invention 3

05/11/2017 • Value Creation: a series of activities that enable the user to recognise the benefit and thence the value that he/she can gain from the invention • Value Capture: extracting or obtaining value from the activities undertaken by the innovator Technology Input Business Models Economic Output •i.e. Invention •Current Business •i.e. commercially available products •Licensing •New venture Source: Rogers (1995) 4

05/11/2017 Product, Service, Process Product Innovation The development of a novel/new product • Using a new technology (e.g. Nanosolar) • Re-configuring a technology (e.g. Sony Walkman) • Better at meeting consumer needs (e.g. Workmate workbench) • Meeting new consumer needs (e.g. JCB excavator) Service Innovation Offering a new/different service to consumers � Using a new technology (e.g. Amazon.com, First Direct) � Better at meeting consumer needs (e.g. EasyJet, Paypal) � Meeting new consumer needs (e.g. Facebook) 5

05/11/2017 Process New way of making things or delivering services � New technologies � e.g. Pilkington’s ‘float glass’ process � New methods/ organisation � e.g. F .W.Taylor’s ‘scientific management’ � e.g. Ford’s moving assembly line � e.g. Toyota’s Just-in-Time production Note Process innovations can lead to what Schumpeter described as ‘creative destruction’ as new industries rise & old ones disappear Form Form Form Form Innovation Innovation Innovation Innovation Innovator Innovator Innovator Innovator Country Country Country Country Product Product Product Product iPod Steve Jobs/Apple US Ballpoint pen Laszlo Biro Hungary Velcro Georges de Mestral Switzerland Computer mouse Douglas Engelbart US Service Service Service Service Telephone insurance Peter Woods/RBS UK Social networking Mark Zuckerberg US website Tim Berners-Lee UK World Wide Web Herb Kellner/ R King US “No frills” airline Process Process Process Process Moving assembly line Henry Ford US Float glass Alistair Pilkington UK Hub + spoke delivery Fred Smith US system Computerised airline IBM/American Airlines US reservations (SABRE) 6

05/11/2017 Radical Incremental Innovation innovation Low Novelty High Novelty Radical Radical Impact on Impact on Radical Radical Technology Technology Technology Technology Impact on Impact on innovation innovation innovation innovation society society society society Jet engine Jet engine Jet engine Jet engine Gas turbine Permits mass travel Carbon fibre F1 Carbon fibre F1 Carbon fibre Better handling & Carbon fibre F1 Carbon fibre F1 chassis chassis chassis chassis safer car Personal Personal Personal Personal Integrated circuit Computing for all computer computer computer computer Photography more Digital camera Digital camera Digital camera Digital camera Digital imaging flexible/accessible MP3 player MP3 player MP3 player MP3 player MP3 files Greater access to recorded music Innovation Innovation Innovation Innovation Components Components Components Components System System System System Incremental Incremental Incremental Incremental Improved No change Modular Modular New No change Modular Modular New Architectural Architectural Architectural Architectural Improved configuration/ architecture Radical Radical Radical Radical New New configuration/ architecture 7

05/11/2017 Types Types Types Types Explanation Explanation Explanation Explanation Radical Radical innovation establishes a new dominant design, and hence a new set of core design concepts embodied in components that are linked together in a new architecture.” Henderson and Clark (1990) Incremental “ a change that builds on a firm’s expertise in component technology within established product architecture.” Christensen (1993) Modular “an innovation that changes a core design concept without changing the product’s architecture.” Henderson and Clark (1990) Architectural “leaves the core technological concepts of components intact but changes the way they are designed to work together.” 8