Theme 1
The Concept of Innovation
and Innovation Management
Managing Innovation

A few worlds about the course

An extensive library of additional case material to
deepen your understanding of innovation and
entrepreneurship

A wealth of multimedia resources to
bring the real world into the classroom

A set of practical, interactive tools to aid
the implementation of innovation and
entrepreneurship

Outline
1. Innovation – what it is and why does it
matters
2. Models of innovation
3. Innovation as a management process

Innovation – what is and why does it matters
innovation is …
• new stuff
• that adds value
• for various stakeholders
• can be monetized
• creates a competitive advantage
• and is sustainable
• until the advantage erodes

Innovation – what is and why does it matters
 Innovation is…
 “the process of turning opportunity into new ideas and
of putting these into widely used practice” (Tidd &
Bessant, 2009)
 “the management of all the activities involved in the
process of idea generation, technology development,
manufacturing and marketing of a new (or improved)
product[/service]” (Trott, 2008)
 “not just the conception of a new idea, nor the invention
of a new device, nor the development of a new market.
The process is all these things acting in an integrated
fashion” (Myers & Marquis, 1969)

Innovation – what is and why does it matters
 Innovative companies are more…
 …Adaptable
• Flexible strategy, structure, culture
 …Competitive
• Better processes, services,
business models

Innovation – what is and why does it matters

Innovation – what is and why does it matters
Nikolai Kondratieff / Joseph Schumpeter
• “virtually all of the economic growth that has
occurred since the eighteenth century is
ultimately attributable to innovation”
• Schumpeter’s “Creative Destruction”

Innovation – what is and why does it matters
 Incremental
 What we already do,
but better
 Sustaining
 Rules of the game
remain the same
 Radical
 New to the world
 Disruptive
 Game Changer for
Market or Industry
Technoology
Market Status Quo

Innovation – what is and why does it matters
 Product / Service Innovation
 Innovate in WHAT we do
 Process Innovation
 Innovate in HOW we do it
 Paradigm / Business Model Innovation
 Innovate in HOW we make money
 Position Innovation
 Innovate in marketing mix and strategy
WHERE, WHO, HOW MUCH

Innovation – what is and why does it matters

Models of innovation
Linear Models
1950/60s – Technology Push
Manufacturing Marketing
Research &
Development
1970s – Market Pull
Marketing Manufacturing
Research &
Development

Models of innovation
1980s
Simultaneous Coupling Model
Marketing
Manufacturing
Research &
Development

Models of innovation
Interactive Model

Models of innovation

Models of innovation
The chronological development of models of innovation

Innovation as a management process
Innovation management:
The process of creating and implementing a
business design surrounding a creative
idea, with the goal of transforming an
invention into an innovation, and
ultimately to achieving sustained
competitive advantage, leading to growth
and profit, in the marketplace.

Innovation as a management process