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Innovation and strategy
Session 1 Anne Casati
Afiliate Professor Grenoble Ecole de Management
People Organistation & Society Department
Founder & Owner of Ressource-conseil
Management and Organisational Change
Founder and Owner of Ressource-Conseil
(Strategic Management of Organisation)
Affiliate Professor at Grenoble Ecole de Management
Area of expertise:
o Project and Change Management,
o Organizational Behaviour, Organisations Design,
o Innovation Management and entrepreneurship.
Working method:
o Experiential Learning (simulation games or exercises),
o Complex Sale (Strategic Selling),
o MBTI (Myers and Briggs Personality Type indicator).
Research interest:
o Research organization in emerging fields
o Focusing on the role of Pis and Innovation Leaders
o Change management
Anne Casati’s bio
Titre de la partie (Verdana – 24)
Course Objectives
Understand interactions between science, technology, markets,
within & beyond organization, to shape and position innovation
program and help managers better lead innovation
•Understand the relation between economic growth, innovation and technology
management
•Learn to analyze market and technology dynamics
•Learn how innovation should be part of the strategy to develop the competitiveness
of the firm in a global environment.
•Learn how to promote innovation in organizations, clusters and regions
•Position yourself as innovators (Innovation matrix practices)
Titre de la partie (Verdana – 24)Grading :
40% - Group work in class.Attendance and class
participation could be integrated in this part.
60% - Reflexive Analysis.
What did I learn… (format delivered separately)
This document must ne submitted by mail before end of
June
Session 1
Innovation and its impact on global economy
• What is innovation…
• Main features of Innovation in the modern economy
• Innovation as a management process: Aligning with strategy
and having a vision
• Understand the relation between science, technology,
markets, interaction within & beyond organization to shape
and position innovation program
7
Sharing Intuitions…
A magazine is an Ipad that doesn’t work…
Show
time
PREDICTION: The power of rationality?
• In 1900, one couldn’t have extrapolated how rapidly we would
cross the Atlantic in 1930’s…
• The booming of big datas, the explosion of new technologies
(mostly information technologies ) is increasing tremendously
the amount of information to deal with…
• will it help?
• will it provide relevant information to help us predicting the
future?
• we can make some generalizations by extrapolation…
• The Moores Law belongs to that one, but extrapolation that are
very linear like that or exponential in a very accurate way are
more exceptions than the rule…
• will it provide relevant information to help us predicting the
future?
Most of
the cumulative change
occurs in one, single –
often dramatic –
occurrence. In the
language of
engineering, some
things don’t “fail
gracefully” (e.g. a bridge
that breaks suddenly
instead of bending
slowly).
Innovate or die?
• How can science and technology help?
• What is the power of rationality when paradigm is changing?
• How can we cope with change? Do we have the choice?
• What is scientific knowledge?
• Being right?
• Search for truth, knowing reality?
The power of rationality?
?
“ When Newton
(1643-1727) surveyed
the vast ocean of truth
which lay before him,
the laws of nature
were shrouded in an
impenetrable veil of
mystery, awe, and
superstition.
Science as we know it
did not exist.”
What is scientific Knowledge?
• What is scientific Knowledge?
– Produced by observations and experimentation
– No speculation, personal opinion or imagination
– Objective and proved knowledge
• But what happens when we question how scientific
knowledge is built? Controversies
Science contribution to innovation…
• XVI° : Science is the quest of truth (Descartes)
• XVIII° : The beginning of industrial use
• XIX°: Promises of better life with science
• XX°: Systematic use of scientific research for innovation and
the society. The scientific activity becomes banal
• XXI°: Scientific activities as part as other economic activities
contributing to innovation but not always….
Gaston Bachelard
 Opposition between Science and opinion
 Science : search for truth, knowing reality
– But Opinion comes from residual observation…
 Scientific work: formation, conceptualization of
the problem. i.e. “earth turns around the sun” is
a concept before being a reality.
• Thomas Samuel Kuhn ( July 18, 1922 – June 17,
1996) was an American physicist, historian,
and philosopher of science whose controversial 1962
book The Structure of Scientific
Revolutions was deeply influential in both academic
and popular circles, introducing the term "paradigm
shift“
• A rebuttable proposal is deemed to be a scientific
hypothesis.
• As soon as it is refuted it ceases to be valid.
• In contrast, a non-rebuttable proposal (irrefutable in
the logical sense) is classified as metaphysics…
Kuhn
Kuhn argues that scientists work within a conceptual paradigm that
strongly influences how they see the facts.
Scientists are willing to fight to defend their paradigm against refutation,
adding as much as necessary ad-hoc hypotheses to existing theories.
Paradigm shift is difficult because it requires an individual to
break up with her peers and defend a heterodox theory.​​
Kuhn
The research compas
Higher education, training, competencies
Text books
On-line resources
Cases
Innovations,
added value
Products
Patents
Technical reports
Films
Norms
books
Dissemination, administration
Medias, expertisePublic policies,
public good
Reports
Grant applications
reports
Articles Books
Colloquium
Thesis
Certified
knowledge
23
Sharing Intuitions…
Changing paradigm…
Show
time “Visions: How science will
revolutionize the 21st
century”
MICHIO KAKU
• By the end of the twentieth century, science had reached
the end of an era, unlocking the secrets of the atom,
unraveling the molecule of life, and creating the
electronic computer.
• With these three fundamental dis- coveries, triggered by
the quantum revolution, the DNA revolution, and the
computer revolution, the basic laws of matter, life, and
computation were, in the main, finally solved.
That epic phase of science is now drawing to a close;
one era is ending and another is only beginning.
First Lesson !
• From closed world to infinite universe…
– The structure of the thought is influenced by
metaphysic thoughts.
– Collective common knowledge often predetermines
experiments
Scientifc knowledge is temporary & relies on
peers agreement
(Anomalies, competing theories, new
paradigm emerges…)
Scientific knowledge is not different from any
other knowledge !
What is innovation?
Is Innovation?
?
? ?
?
?
?
By subgroup of 2, choose an innovation which
provided the firm with a competitive
advantage.
You have 20 min to decide which innovation.
The poster will be presented to the class for
10 min. You have to use visual elements and
speech as well.
You need to present at least 4 elements:
•What is the innovation? Describe it. To what extent this
innovation is radical?
•How the innovation is contributing to the competitive
advantage? Which is the advantage?
•To what extent it has been sustainable?
• Which has been the impact for the firm?
•How the innovation has been developed?
Works
A
GAME
That
ForFor
You !You !
Workshop 1:Innovation quest?
Definition
• What is innovation?
Introduction of new product, new process, new product
and process or new organization, new for the firm or new
for the market (CIS def)
• What is management of innovation
– Analysis of the determinants and effects of innovation in the
markets (breakthrough Vs. incremental innovation, structure of
knowledge base, creative destruction Vs. cumulative process
etc.)
– Analysis of innovation within the firm, management of the
process
– Analysis of competences and organisation to innovate…
Innovation and competitive advantage
• Sources of competitive advantages?
– Traditionally : size, possession of assets, proximity of
sources of energy
– Recently: capacity to mobilize knowledge and technological
skills, experience to create new products processes and
services
Innovation and competitive advantage
• Innovation contributes to competitive
advantages in several ways
• Maintaining market shares
• Mature markets, influence of non price-factors
(differentiation)
• New products : Adaptation to the environment and
gain of market positions
• Role of process innovation (car – Toyota product
system + Logan Renault + Tata (India) Cf. Ford T)
• Role of process innovation in service industry (ATM,
on line reservation, Benetton – IT led production
system)
• Low cost and south west airlines reservation system
TYPE OF
INNOVATION
STRATEGIC ADVANTAGE
1.Novelty Offering something which no one else can
2.Competence-
shifting
Rewriting the rules of the competitive game
3.Complexity Difficulty of learning about technology keeps
entry barriers high
4.Robust design Basic model product or process can be stretched
over an extended life, reducing overall cost
5.Continuous
incremental inno
Continuous movement of the cost/ performance
frontier
Types of innovation
• Definitions: Two forms
• In the things (product or service) that an organisation offers
• In the ways in which they are created and delivered
Core concepts
Linkagebetweenthecoreconceptsandcomponents
Incremental
innovation
Heavy traffic
Modular
innovation
EPOS
Architectural
innovation
Mosaic
Radical
innovation
Transistor
• Radical innovation: change of
the core concept and the
components
• Architectural: reinforcement of
basic concept and change the
organisation of the
components
• Incremental: Innovation of
components. Reinforcement of
existing concepts and
unchanged linkages
• Modular: changes of
components and unchanged
linkages.
Types of innovation
1958 Ford Edsel
How did the Edsel come to be synonymous with failure?
Innovation is not easy…
With the Edsel, Ford had
expected to make significant
inroads into the market
share of both General
Motors and Chrysler and
close the gap between itself
and GM in the domestic
American automotive
market. It never worked…
Innovation is not easy…
• 1960’s : Concorde?
Innovation is not easy…
… but imperative
… but imperative
• Innovation is the strategic renewal…
• Innovate or die!
Second Lesson !
• Researcher is not an innovator but
rather someone who solve enigma (being
embedded in the scientific community)
• What is innovation? Introduction of new
product, new process, new product and
process or new organization, new for the
firm or new for the market
• Applied research: problems are raised
from outside, and researchers have to
combine paradigms
Thank you for your attention !
Questions and comments welcome
Anne CASATI
Grenoble Ecole de Management
12, rue Pierre Sémard - BP 127
38003 Grenoble Cedex 01
Tél. : +33 6 31 98 19 66
acm@ressource-conseil.com

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  • 1. Innovation and strategy Session 1 Anne Casati Afiliate Professor Grenoble Ecole de Management People Organistation & Society Department Founder & Owner of Ressource-conseil Management and Organisational Change
  • 2. Founder and Owner of Ressource-Conseil (Strategic Management of Organisation) Affiliate Professor at Grenoble Ecole de Management Area of expertise: o Project and Change Management, o Organizational Behaviour, Organisations Design, o Innovation Management and entrepreneurship. Working method: o Experiential Learning (simulation games or exercises), o Complex Sale (Strategic Selling), o MBTI (Myers and Briggs Personality Type indicator). Research interest: o Research organization in emerging fields o Focusing on the role of Pis and Innovation Leaders o Change management Anne Casati’s bio
  • 3. Titre de la partie (Verdana – 24) Course Objectives Understand interactions between science, technology, markets, within & beyond organization, to shape and position innovation program and help managers better lead innovation •Understand the relation between economic growth, innovation and technology management •Learn to analyze market and technology dynamics •Learn how innovation should be part of the strategy to develop the competitiveness of the firm in a global environment. •Learn how to promote innovation in organizations, clusters and regions •Position yourself as innovators (Innovation matrix practices)
  • 4. Titre de la partie (Verdana – 24)Grading : 40% - Group work in class.Attendance and class participation could be integrated in this part. 60% - Reflexive Analysis. What did I learn… (format delivered separately) This document must ne submitted by mail before end of June
  • 5. Session 1 Innovation and its impact on global economy
  • 6. • What is innovation… • Main features of Innovation in the modern economy • Innovation as a management process: Aligning with strategy and having a vision • Understand the relation between science, technology, markets, interaction within & beyond organization to shape and position innovation program
  • 7. 7 Sharing Intuitions… A magazine is an Ipad that doesn’t work… Show time
  • 8. PREDICTION: The power of rationality?
  • 9. • In 1900, one couldn’t have extrapolated how rapidly we would cross the Atlantic in 1930’s…
  • 10. • The booming of big datas, the explosion of new technologies (mostly information technologies ) is increasing tremendously the amount of information to deal with… • will it help? • will it provide relevant information to help us predicting the future?
  • 11. • we can make some generalizations by extrapolation… • The Moores Law belongs to that one, but extrapolation that are very linear like that or exponential in a very accurate way are more exceptions than the rule… • will it provide relevant information to help us predicting the future?
  • 12. Most of the cumulative change occurs in one, single – often dramatic – occurrence. In the language of engineering, some things don’t “fail gracefully” (e.g. a bridge that breaks suddenly instead of bending slowly). Innovate or die?
  • 13. • How can science and technology help? • What is the power of rationality when paradigm is changing? • How can we cope with change? Do we have the choice?
  • 14.
  • 15. • What is scientific knowledge? • Being right? • Search for truth, knowing reality? The power of rationality? ?
  • 16. “ When Newton (1643-1727) surveyed the vast ocean of truth which lay before him, the laws of nature were shrouded in an impenetrable veil of mystery, awe, and superstition. Science as we know it did not exist.”
  • 17. What is scientific Knowledge? • What is scientific Knowledge? – Produced by observations and experimentation – No speculation, personal opinion or imagination – Objective and proved knowledge • But what happens when we question how scientific knowledge is built? Controversies
  • 18. Science contribution to innovation… • XVI° : Science is the quest of truth (Descartes) • XVIII° : The beginning of industrial use • XIX°: Promises of better life with science • XX°: Systematic use of scientific research for innovation and the society. The scientific activity becomes banal • XXI°: Scientific activities as part as other economic activities contributing to innovation but not always….
  • 19. Gaston Bachelard  Opposition between Science and opinion  Science : search for truth, knowing reality – But Opinion comes from residual observation…  Scientific work: formation, conceptualization of the problem. i.e. “earth turns around the sun” is a concept before being a reality.
  • 20. • Thomas Samuel Kuhn ( July 18, 1922 – June 17, 1996) was an American physicist, historian, and philosopher of science whose controversial 1962 book The Structure of Scientific Revolutions was deeply influential in both academic and popular circles, introducing the term "paradigm shift“ • A rebuttable proposal is deemed to be a scientific hypothesis. • As soon as it is refuted it ceases to be valid. • In contrast, a non-rebuttable proposal (irrefutable in the logical sense) is classified as metaphysics… Kuhn
  • 21. Kuhn argues that scientists work within a conceptual paradigm that strongly influences how they see the facts. Scientists are willing to fight to defend their paradigm against refutation, adding as much as necessary ad-hoc hypotheses to existing theories. Paradigm shift is difficult because it requires an individual to break up with her peers and defend a heterodox theory.​​ Kuhn
  • 22. The research compas Higher education, training, competencies Text books On-line resources Cases Innovations, added value Products Patents Technical reports Films Norms books Dissemination, administration Medias, expertisePublic policies, public good Reports Grant applications reports Articles Books Colloquium Thesis Certified knowledge
  • 23. 23 Sharing Intuitions… Changing paradigm… Show time “Visions: How science will revolutionize the 21st century” MICHIO KAKU
  • 24. • By the end of the twentieth century, science had reached the end of an era, unlocking the secrets of the atom, unraveling the molecule of life, and creating the electronic computer. • With these three fundamental dis- coveries, triggered by the quantum revolution, the DNA revolution, and the computer revolution, the basic laws of matter, life, and computation were, in the main, finally solved. That epic phase of science is now drawing to a close; one era is ending and another is only beginning.
  • 25. First Lesson ! • From closed world to infinite universe… – The structure of the thought is influenced by metaphysic thoughts. – Collective common knowledge often predetermines experiments Scientifc knowledge is temporary & relies on peers agreement (Anomalies, competing theories, new paradigm emerges…) Scientific knowledge is not different from any other knowledge !
  • 28. By subgroup of 2, choose an innovation which provided the firm with a competitive advantage. You have 20 min to decide which innovation. The poster will be presented to the class for 10 min. You have to use visual elements and speech as well. You need to present at least 4 elements: •What is the innovation? Describe it. To what extent this innovation is radical? •How the innovation is contributing to the competitive advantage? Which is the advantage? •To what extent it has been sustainable? • Which has been the impact for the firm? •How the innovation has been developed? Works A GAME That ForFor You !You ! Workshop 1:Innovation quest?
  • 29. Definition • What is innovation? Introduction of new product, new process, new product and process or new organization, new for the firm or new for the market (CIS def) • What is management of innovation – Analysis of the determinants and effects of innovation in the markets (breakthrough Vs. incremental innovation, structure of knowledge base, creative destruction Vs. cumulative process etc.) – Analysis of innovation within the firm, management of the process – Analysis of competences and organisation to innovate…
  • 30. Innovation and competitive advantage • Sources of competitive advantages? – Traditionally : size, possession of assets, proximity of sources of energy – Recently: capacity to mobilize knowledge and technological skills, experience to create new products processes and services
  • 31. Innovation and competitive advantage • Innovation contributes to competitive advantages in several ways • Maintaining market shares • Mature markets, influence of non price-factors (differentiation) • New products : Adaptation to the environment and gain of market positions • Role of process innovation (car – Toyota product system + Logan Renault + Tata (India) Cf. Ford T) • Role of process innovation in service industry (ATM, on line reservation, Benetton – IT led production system) • Low cost and south west airlines reservation system
  • 32. TYPE OF INNOVATION STRATEGIC ADVANTAGE 1.Novelty Offering something which no one else can 2.Competence- shifting Rewriting the rules of the competitive game 3.Complexity Difficulty of learning about technology keeps entry barriers high 4.Robust design Basic model product or process can be stretched over an extended life, reducing overall cost 5.Continuous incremental inno Continuous movement of the cost/ performance frontier
  • 33. Types of innovation • Definitions: Two forms • In the things (product or service) that an organisation offers • In the ways in which they are created and delivered
  • 34. Core concepts Linkagebetweenthecoreconceptsandcomponents Incremental innovation Heavy traffic Modular innovation EPOS Architectural innovation Mosaic Radical innovation Transistor • Radical innovation: change of the core concept and the components • Architectural: reinforcement of basic concept and change the organisation of the components • Incremental: Innovation of components. Reinforcement of existing concepts and unchanged linkages • Modular: changes of components and unchanged linkages. Types of innovation
  • 35. 1958 Ford Edsel How did the Edsel come to be synonymous with failure? Innovation is not easy… With the Edsel, Ford had expected to make significant inroads into the market share of both General Motors and Chrysler and close the gap between itself and GM in the domestic American automotive market. It never worked…
  • 36. Innovation is not easy… • 1960’s : Concorde?
  • 37. Innovation is not easy…
  • 39. … but imperative • Innovation is the strategic renewal… • Innovate or die!
  • 40. Second Lesson ! • Researcher is not an innovator but rather someone who solve enigma (being embedded in the scientific community) • What is innovation? Introduction of new product, new process, new product and process or new organization, new for the firm or new for the market • Applied research: problems are raised from outside, and researchers have to combine paradigms
  • 41. Thank you for your attention ! Questions and comments welcome Anne CASATI Grenoble Ecole de Management 12, rue Pierre Sémard - BP 127 38003 Grenoble Cedex 01 Tél. : +33 6 31 98 19 66 acm@ressource-conseil.com

Notas do Editor

  1. Discussion of table 1.1. p 7
  2. Une innovation est radicale si les concepts de base ainsi que leurs liens détruisent les existants. Elle est architecturale si les concepts de base sont renforcés tandis que les liens changent Elle est incrémentale si les concepts de base sont renforcés et les liens inchangés Enfin, elle est modulaire si les concepts de base sont détruits tandis que les liens restent inchangés.