A brief introduction to Innovation Management. The importance of learning about managing successful innovations.

1. Innovation Management
An overview
Venkatesh G

2. Successful companies
• HP
• Apple
• Cisco
• TCS
• Google
• Infosys
• 3M

3. What is innovation?
• Latin word Nova - New
• Combination of knowledge in original, relevant and
valued new products, processes, services
• Application of invention into a product or process to
drive value for customers

4. Innovation Concept
• Innovation management – creating and implementing a
business design based on a creative idea with the goal of
transforming an invention into innovation
• Sustained competitive advantage
• Growth
• Profit

5. Schumpeter – sources of
innovation
• New product introduction
• New process
• Entering a new market
• New source of raw material

6. Systems view
• Innovation does not exist only at the level of the firm
• Government
• Competition
• Technology
• Research
• Infrastructure
• Educational levels of manpower
• All the above factors play a role in success of innovative
efforts

7. Innovation System
• Government + socio-economic culture + level of
technological development + research + capital + FDI +
Information and communication technologies

8. Innovation versus
Invention
• Starting point of innovation – creativity
• Innovation – a process (creation + diffusion)
• Creativity – new and relevant ideas
• Innovation – implementation of ideas
• Invention – creation of novel services, products or
production techniques

9. Invention -> Innovation
• Invention – commercialized, accessible and packaged so
that it reaches market
• Support of market research + business processes
• Technology + management + human + capital

10. Three aspects of
creativity
• Expertise
• Creative thinking
• Motivation (desire to excel)

11. History of Innovation
• First Generation – Mid 1960’s : Technological push
(Demand more than supply)
• Second Generation – Till Mid 1970’s: Market Pull
(Innovation as a Project)
• Third Generation – 1970s to 1990s. Technological push +
Market Pull : Product + Process Innovation
• Fourth: Early 1990s to early 2000s. Strategic alliances
• Fifth : Early 2000s and beyond: Open innovation-
innovation sourced internally + externally.

12. Innovation versus
Invention
• Change in technology- Invention
• Business world involvement - Innovation

13. Incremental innovation
• Small modifications and improvements in technologies
• Improvements in features of a phone
• Minor improvement in technology or process

14. Radical Innovations
• Breakthrough innovation
• Discontinuous technology that can drastically transform
existing products or processes
• Technical innovation that can upset industry’s existing
business model
• Transistor to digital
• PC , Smart phone
• iPad

15. • Creativity = ideas
• Innovation = ideas + action
• Creativity = novelty
• Innovation = novelty + value

16. Peter Senge’s model
• Model for fostering a creative environment
• Systems thinking – view all problems with a holistic and
integrated approach
• Mental models – experiential learning
• Team learning
• Shared vision
• Personal mastery – Proficiency of humans