WBB10202 Innovation Management

LECTURER: SUHAIZA NGAH TOPIC 1: PERSPECTIVES ON INNOVATION

PERPECTIVES ON INNOVATION

Introduction The factor that affect innovation Creativity versus innovation The innovation Continuum Source of Innovation Innovation culture and myths

INNOVATION-MAKERS

Introduction
The classic definitions of innovation include: the act of introducing something new: something newly introduced (The American Heritage Dictionary). the introduction of something new. (Merriam-Webster Online) a new idea, method or device. (Merriam-Webster Online) the successful exploitation of new ideas (Department of Trade and Industry, UK) change that creates a new dimension of performance (Peter Drucker)

Innovation is the process of making improvements by introducing something new

Innovation = Creativity X Risk

In memoriam: Peter Drucker, management and leadership guru

Peter Drucker (1909-2005), The legendary management and leadership guru who helped to pioneer modern management theory, passed away over the weekend at the age of 95. He was the author of countless business classics, such as The Concept of the Corporation and The Practice of Management (1954), and put terms like "knowledge worker" into widescale use. At age 94, Drucker published the last of his 35 books: The Daily Drucker: 366 Days of Insight and Motivation for Getting the Right Things Done. His teachings and business thinking influenced a range of business thinkers - including Bill Gates, Andy Grove, Jack Welch and key members of the Japanese business establishment. Over a career that spanned nearly 70 years, he advised countless numbers of corporations and business leaders on how to think about long-term strategy, innovation and marketing.. The Financial Times called him the "grand old man of provocative theory and thoughtful management practice." MarketWatch called his 1946 book Concept of the Corporation the "de facto blueprint for the changing U.S. economy that was being filled with millions of veterans returning home after World War II." Bloomberg called Drucker "the greatest management guru" of our time for coining such terms as "management by objective" and "knowledge worker." Finally, the Washington Post called Drucker one of "the world's most influential business gurus whose thinking transformed corporate management in the latter half of the 20th century."

Innovation as the Engine of Growth

Creativity versus Innovation

Definitions Innovation - Doing new things. Creativity - Thinking up new things. Comparisons Action vs. Ideas Has a champion vs. Needs a champion Implement vs. Originate

creativity

Innovation

Mean by innovation
the term innovation is to mean the process that transforms ideas into commercial value. 1. Introduction and commercial sale of a new or improved product, e.g. Pentium chip, Remington typewriter, tungsten filament light bulb, nuclear weapons, hybrid seeds, genetically modified foods. 2. Introduction and commercial use of a new method of production, e.g. Henry Fords production line, the Pilkington float glass process, Unipol polyethylene process, and the steam engine. 3. Introduction of a new form of business organization, e.g. franchising, co-operatives, joint ventures and co-production and outsourcing agreements, discount grocery stores, ebusiness, just in time manufacturing.

4. New uses for existing products. e.g. the electronic computer found its first uses in military applications such as calculating artillary trajectories. It's uses later broadened to include many more applications. 5. New markets for existing products. e.g. the donut was invented in Germany and subsequently spread throughout the world. 6. New distribution channels. e.g. the internet is a new distribution channel for selling books. The distinction between invention and innovation is that invention is the creation of a new idea or concept, and innovation is turning the new concept into commercial success or widespread use. We view Innovation to be primarily an economic and social, rather than exclusively a technological term. Technological innovation is an innovation with a significant performance content (as opposed to a fashion). We use the term innovation system to refer to the set of distinct institutions which contribute to the development and diffusion of new technologies in a region. As such, it is a set of interconnected institutions which form a system whose performance is determined both by the individual performance of each institution, but also by how they interact with each other as elements of a collective system.

INNOVATION CONTINUUM

A-Ha Sustainable

Start-Up

Development

Confirmation

Exploration Growth

Proof of Technology

Business Validation

Operations

STAGE
Exploration A-Ha

DESCRIPTION
Thinking about solving a problem or satisfying an unmet need by starting a business. A tentative solution to a problem or have the beginnings of an idea for a product or service that meets an unmet or underserved need Ready to validate that a business can be formed around your product or service idea Developing a formal business plan, establishing a legal structure and mechanics of the business as well as the resources required to get started on a validated product or service idea Business realize and operating and as yet, have not achieved positive cash flow. Original business plan may not be valid Developed a valid business and are now establishing the business systems for long term success Business has been successful for several years but is now experiencing difficulties Your business has been successfully developed and is now ready to grow You have a business with a defined future that is profitable, employs people and is an asset to the community

Proof of Technology Start-Up

Business Validation

Development

Confirmation Growth Sustainable

SOURCE OF INNOVATION

Individual
Corporate Undertakings

Users Insights

Spillovers (R&D)

Process Needs

INNOVATION CULTURE & MYTH

HISTORY SIZE TECHNOLOGY LEADERSHIP US GERMANY JAPAN KOREA MALAYSIA AUSTRALIA CHINA

Task 1 (INDIVIDUAL)
What is the meaning of innovation, or how is it understood from your observation of innovation organization? Please relate with what you learn this week. _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ _______________________________________________ (1 page) submit to my e-mail : sir_mahfuz@yahoo.com - due: within 24 hours from this lecture

Great Companies: Whats the Innovation?

Wal-Mart Toyota FedEx Google Yahoo

Apple Microsoft Air Asia Skali Sony

eBay Boeing Scomi

Work Group : Choose 1 of above company and present their ( 5 min) contribution towards innovation to market. Use your creativity and matured group skills.