Lecture 6 managing the internal processes.pot

1. Theme 6
Managing the Internal Processes
Managing Innovation

2. Outline
1. Enabling Effective Search
2. Enabling Strategy-making
3. Enabling Effective Knowledge
Acquisition
4. Enabling Commersionalization

3. Innovation process model

4. Today’s challenges for organizations
External conditions lead to discontinuities in the innovation
environment – for example, the emergence of radically
new technology or of completely new markets – the old
‘rules of the game’ no longer apply.
Innovation management is essentially about building and
embedding such routines within the organization – but it is
also about reviewing, improving and on occasions
replacing them with new and more appropriate ones to
cope with what is a constantly changing environment. In
other words, it is about building dynamic capability.

5. Enabling Effective Search
Various kinds of trigger signals (inside & outside)
Effective routines stretch its boundaries to create new space
“selection environment” – a search space made up of
knowledge about technologies, markets, competitors…

6. Approaches can be used to explore and extend this
search space
1) Defining the Boundaries of the Marketplace
Sometimes innovation can take the form of
repositioning – offering the same basic product or service
but addressed in a new way
to different markets.
2) Understanding Market Dynamics
Understanding where potential markets may arise as a
consequence of various kinds of change.
3) “Trend-spotting”
Market does not exist or where it suddenly takes a turn in a
new direction

7. Approaches can be used to explore and extend this
search space
4) Monitoring Technological Trends
Identification of emerging trends in technologies, where
existing trajectories may be challenged or redirected as a
result of new knowledge
“research &
development”
“connect &
development”
“know-how” “know-who”

8. Approaches can be used to explore and extend this
search space
5) Market Forecasting
Identifying markets which do not yet exist but which may
emerge as a result of identifiable current trends.
6) Technological Forecasting
Opportunities arise in part from the continuing advances in
knowledge which make new products, services and
processes possible. Making different use of existing
technologies configured in new ways.
7) Integrated Future Search
Make simplifying assumptions about the wider context in
which predicted changes might take place.

9. Approaches can be used to explore and extend this
search space
8) Learning from Others
Looking at ‘best-practice’ demonstration Projects and
‘reverse engineering’.
9) Involving Stakeholders
Involving customers in providing information about the
kinds of products and services which they require
10) Involving Insiders
In looking for signals about possible innovation triggers it is
important not to neglect those which originate inside the
organization.

10. Enabling Strategy-making
Equally organizations cannot afford to innovate at
random – they need some kind of framework which
articulates how they think innovation can help them
survive and grow and they need to be able to allocate
scarce resources to a portfolio of innovation projects
based on this view.
They can build on explorations of the future such as the
scenarios and they can make use of techniques like
‘technology road-mapping’ to help identify courses of
action which will deliver broad strategic objectives.

11. Enabling Strategy-making
Although developing such a framework is complex we can
identify a number of key routines which organizations use to
create and deploy such frameworks. These help
provide answers to three key questions:
• Strategic analysis – what, realistically, could we do?
• Strategic choice – what are we going to do (and in
choosing to commit our resources to that, what will we
leave out?)
• Strategic monitoring – over time reviewing to check is
this still what we want to do?

12. Enabling Strategy-making
The issue of strategy deployment – communicating and
enabling people to use the framework – is essential if
the organization is to avoid the risk of having ‘know-how’
but not ‘know why’ in its innovation process.
“lean philosophy”
to mobilize most of the people in an organization
to contribute their ideas and creativity towards
continuous improvement

13. Portfolio Management Approaches

14. Enabling Effective Knowledge Acquisition
This phase involves combining new and existing
knowledge (available within and outside the organization)
to offer a solution to the problem of innovation.
It involves both
- generation of technological and market knowledge (via
research carried out within and outside the organization) -
- and technology transfer (between internal sources or
from external sources).

15. Enabling Effective Knowledge Acquisition

16. Enabling Effective Knowledge Acquisition
Groups of technological knowledge (created by Arthur D. Little):
1) Base technologies represent those on which
product/service innovations are based and which are
vital to the business. However, they are also widely
known about and deployed by competitors and offer little
potential competitive advantage.
2) Key technologies represent those which form the core
of current products/services or processes and which
have a high competitive impact – they are strategically
important to the organization and may well be
protectable through patent or other form.

17. Enabling Effective Knowledge Acquisition
Groups of technological knowledge (created by Arthur D. Little):
3) Pacing technologies are those which are at the leading
edge of the current competitive game and may be under
experimentation by competitors – they have high but as yet
unfulfilled competitive potential.
4) Emerging technologies are those which are at the
technological frontier, still under development and whose
impact is promising but not yet clear.

18. Enabling Effective Knowledge Acquisition
‘absorptive capacity’ – ability of the organization to take
on and make effective use of new knowledge.

19. Enabling Effective Knowledge Acquisition

20. Enabling Implementation

21. Enabling Implementation

22. Enabling Implementation

23. Enabling Implementation