Managing Innovation: Integrating Technological, Market and Organizational Change
Now in its seventh edition, Managing Innovation: Integrating Technological, Market and Organizational Change enables graduate and undergraduate students to develop the unique skill set and the foundational knowledge required to successfully manage innovation, technology, and new product development. This bestselling text has been fully updated with new data, new methods, and new concepts while still retaining its holistic approach the subject. The text provides an integrated, evidence-based methodology to innovation management that is supported by the latest academic research and the authors’ extensive experience in real-world management practice.

Students are provided with an impressive range of learning tools—including numerous case studies, illustrative examples, discussions questions, and key information boxes—to help them explore the innovation process and its relation to the markets, technology, and the organization. "Research Notes" examine the latest evidence and topics in the field, while "Views from the Front Line" offer insights from practicing innovation managers and connect the covered material to actual experiences and challenges. Throughout the text, students are encouraged to apply their knowledge and critical thinking skills to business model innovation, creativity, entrepreneurship, service innovation, and many more current and emerging approaches and practices.

1116726503
Managing Innovation: Integrating Technological, Market and Organizational Change
Now in its seventh edition, Managing Innovation: Integrating Technological, Market and Organizational Change enables graduate and undergraduate students to develop the unique skill set and the foundational knowledge required to successfully manage innovation, technology, and new product development. This bestselling text has been fully updated with new data, new methods, and new concepts while still retaining its holistic approach the subject. The text provides an integrated, evidence-based methodology to innovation management that is supported by the latest academic research and the authors’ extensive experience in real-world management practice.

Students are provided with an impressive range of learning tools—including numerous case studies, illustrative examples, discussions questions, and key information boxes—to help them explore the innovation process and its relation to the markets, technology, and the organization. "Research Notes" examine the latest evidence and topics in the field, while "Views from the Front Line" offer insights from practicing innovation managers and connect the covered material to actual experiences and challenges. Throughout the text, students are encouraged to apply their knowledge and critical thinking skills to business model innovation, creativity, entrepreneurship, service innovation, and many more current and emerging approaches and practices.

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Managing Innovation: Integrating Technological, Market and Organizational Change

Managing Innovation: Integrating Technological, Market and Organizational Change

Managing Innovation: Integrating Technological, Market and Organizational Change

Managing Innovation: Integrating Technological, Market and Organizational Change

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Overview

Now in its seventh edition, Managing Innovation: Integrating Technological, Market and Organizational Change enables graduate and undergraduate students to develop the unique skill set and the foundational knowledge required to successfully manage innovation, technology, and new product development. This bestselling text has been fully updated with new data, new methods, and new concepts while still retaining its holistic approach the subject. The text provides an integrated, evidence-based methodology to innovation management that is supported by the latest academic research and the authors’ extensive experience in real-world management practice.

Students are provided with an impressive range of learning tools—including numerous case studies, illustrative examples, discussions questions, and key information boxes—to help them explore the innovation process and its relation to the markets, technology, and the organization. "Research Notes" examine the latest evidence and topics in the field, while "Views from the Front Line" offer insights from practicing innovation managers and connect the covered material to actual experiences and challenges. Throughout the text, students are encouraged to apply their knowledge and critical thinking skills to business model innovation, creativity, entrepreneurship, service innovation, and many more current and emerging approaches and practices.


Product Details

ISBN-13: 9781119713302
Publisher: Wiley
Publication date: 11/23/2020
Edition description: 7th ed.
Pages: 624
Product dimensions: 8.00(w) x 9.90(h) x 1.10(d)

About the Author

Joe Tidd is a Professor of Technology and Innovation Management in the Science Policy Research Unit (SPRU) of the University of Sussex Business School and a visiting Professor at University College London. He was Director of the Executive MBA Program at Imperial College London and co-creator of the Imperial Distance Learning MBA. He is the author of nine books and more than 100 papers on the management of technology and innovation, and the founder and Managing Editor of the International Journal of Innovation Management.

John R. Bessant is Emeritus Professor of Innovation and Entrepreneurship at the University of Exeter and has visiting appointments at the University of Stavanger (Norway) and Friedrich-Alexander University (Germany). Active in the field of research and consultancy in technology and innovation management for over 40 years, he has served as an advisor to a wide range of companies and international bodies, including the United Nations, The World Bank, and the OECD. He is the author of 40 books and monographs and numerous articles published in leading journals.

Read an Excerpt

Managing Innovation


By Joe Tidd

John Wiley & Sons

ISBN: 0-470-09326-9


Chapter One

Key Issues in Innovation Management

'A slow sort of country' said the Red Queen. 'Now here, you see, it takes all the running you can do to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!' (Lewis Carroll, Alice through the Looking Glass)

'We always eat elephants ...' is a surprising claim made by Carlos Broens, founder and head of a successful toolmaking and precision engineering firm in Australia with an enviable growth record. Broens Industries is a small/medium-sized company of 130 employees which survives in a highly competitive world by exporting over 70% of its products and services to technologically demanding firms in aerospace, medical and other advanced markets. The quote doesn't refer to strange dietary habits but to their confidence in 'taking on the challenges normally seen as impossible for firms of our size' - a capability which is grounded in a culture of innovation in products and the processes which go to produce them.

At the other end of the scale spectrum Kumba Resources is a large South African mining company which makes another dramatic claim - 'We move mountains'. In their case the mountains contain iron ore and their huge operations require large-scale excavation - and restitution of the landscape afterwards. Much of their business involves complex large-scale machinery - and their abilities to keep it running and productive depend on a workforce able to contribute their innovative ideas on a continuing basis.

Innovation is driven by the ability to see connections, to spot opportunities and to take advantage of them. When the Tasman Bridge collapsed in Hobart, Tasmania, in 1975 Robert Clifford was running a small ferry company and saw an opportunity to capitalize on the increased demand for ferries - and to differentiate his by selling drinks to thirsty cross-city commuters. The same entrepreneurial flair later helped him build a company - Incat - which pioneered the wave-piercing design which helped them capture over half the world market for fast catamaran ferries. Continuing investment in innovation has helped this company from a relatively isolated island build a key niche in highly competitive international military and civilian markets.

But innovation is not just about opening up new markets - it can also offer new ways of serving established and mature ones. Despite a global shift in textile and clothing manufacture towards developing countries the Spanish company, Inditex (through its retail outlets under various names including Zara) have pioneered a highly flexible, fast turnaround clothing operation with over 2000 outlets in 52 countries. It was founded by Amancio Ortega Gaona who set up a small operation in the west of Spain in La Coruna - a region not previously noted for textile production - and the first store opened there in 1975. Central to the Inditex philosophy is close linkage between design, manufacture and retailing and their network of stores constantly feeds back information about trends which are used to generate new designs. They also experiment with new ideas directly on the public, trying samples of cloth or design and quickly getting back indications of what is going to catch on. Despite their global orientation, most manufacturing is still done in Spain, and they have managed to reduce the turnaround time between a trigger signal for an innovation and responding to it to around 15 days.

Of course, technology often plays a key role in enabling radical new options. Magink is a company set up in 2000 by a group of Israeli engineers and now part of the giant Mitsubishi concern. Its business is in exploiting the emerging field of digital ink technology - essentially enabling paper-like display technology for indoor and outdoor displays. These have a number of advantages over other displays such as liquid crystal - low-cost, high viewing angles and high visibility even in full sunlight. One of their major new lines of development is in advertising billboards - a market worth $5 bn in the USA alone - where the prospect of 'programmable hoardings' is now opened up. Magink enables high resolution images which can be changed much more frequently than conventional paper advertising, and permit billboard site owners to offer variable price time slots, much as television does at present.

At the other end of the technological scale there is scope for improvement on an old product - the humble eyeglass. A chance meeting took place between an Oxford physics professor developing his own new ophthalmic lens technology (and with an interest in applying it in the developing world) and someone with a great deal of knowledge of the developing world. This has led to a new technology with the potential to transform the lives of hundreds of millions of people in the developing world - a pair of spectacles with lenses that can be adjusted by the wearer to suit their visual needs. No sight tests by opticians are required, the special lenses can be simply adjusted to accurately correct the vision of large numbers of people. Mass production of the spectacles will soon be under way, with manufacturing designed to give high quality at low cost. In the developing world, where a severe shortage of opticians is a real problem, this innovation is likely to have an impact on a larger number of people than the celebrated wind-up radio.

Innovation is of course not confined to manufactured products; examples of turnaround through innovation can be found in services and in the public and private sector. For example, the Karolinska Hospital in Stockholm has managed to make radical improvements in the speed, quality and effectiveness of its care services - such as cutting waiting lists by 75% and cancellations by 80% - through innovation. In banking the UK First Direct organization became the most competitive bank, attracting around 10 000 new customers each month by offering a telephone banking service backed up by sophisticated IT. A similar approach to the insurance business - Direct Line - radically changed the basis of that market and led to widespread imitation by all the major players in the sector. Internet-based retailers such as Amazon.com have changed the ways in which products as diverse as books, music and travel are sold, whilst firms like e-Bay have brought the auction house into many living rooms.

1.1 Innovation and Competitive Advantage

What these organizations have in common is that their undoubted success derives in large measure from innovation. Whilst competitive advantage can come from size, or possession of assets, etc. the pattern is increasingly coming to favour those organizations which can mobilize knowledge and technological skills and experience to create novelty in their offerings (product/service) and the ways in which they create and deliver those offerings. This is seen not only at the level of the individual enterprise but increasingly as the wellspring for national economic growth. For example, the UK Office of Science and Technology see it as 'the motor of the modern economy, turning ideas and knowledge into products and services'.

Innovation contributes in several ways. For example, research evidence suggests a strong correlation between market performance and new products. New products help capture and retain market shares, and increase profitability in those markets. In the case of more mature and established products, competitive sales growth comes not simply from being able to offer low prices but also from a variety of non-price factors - design, customization and quality. And in a world of shortening product life cycles - where, for example, the life of a particular model of television set or computer is measured in months, and even complex products like motor cars now take only a couple of years to develop - being able to replace products frequently with better versions is increasingly important. 'Competing in time' reflects a growing pressure on firms not just to introduce new products but to do so faster than competitors.

At the same time new product development is an important capability because the environment is constantly changing. Shifts in the socio-economic field (in what people believe, expect, want and earn) create opportunities and constraints. Legislation may open up new pathways, or close down others - for example, increasing the requirements for environmentally friendly products. Competitors may introduce new products which represent a major threat to existing market positions. In all these ways firms need the capability to respond through product innovation.

Whilst new products are often seen as the cutting edge of innovation in the marketplace, process innovation plays just as important a strategic role. Being able to make something no one else can, or to do so in ways which are better than anyone else is a powerful source of advantage. For example, the Japanese dominance in the late twentieth century across several sectors - cars, motorcycles, shipbuilding, consumer electronics - owed a great deal to superior abilities in manufacturing - something which resulted from a consistent pattern of process innovation. The Toyota production system and its equivalent in Honda and Nissan led to performance advantages of around two to one over average car makers across a range of quality and productivity indicators. One of the main reasons for the ability of relatively small firms like Oxford Instruments or Incat to survive in highly competitive global markets is the sheer complexity of what they make and the huge difficulties a new entrant would encounter in trying to learn and master their technologies.

Similarly, being able to offer better service - faster, cheaper, higher quality - has long been seen as a source of competitive edge. Citibank was the first bank to offer automated telling machinery (ATM) service and developed a strong market position as a technology leader on the back of this process innovation. Benetton is one of the world's most successful retailers, largely due to its, sophisticated IT-led production network, which it innovated over a 10-year period, and the same model has been used to great effect by the Spanish firm Zara. Southwest Airlines achieved an enviable position as the most effective airline in the USA despite being much smaller than its rivals; its success was due to process innovation in areas like reducing airport turnaround times. This model has subsequently become the template for a whole new generation of low-cost airlines whose efforts have revolutionized the once-cosy world of air travel.

Importantly we need to remember that the advantages which flow from these innovative steps gradually get competed away as others imitate. Unless an organization is able to move into further innovation, it risks being left behind as others take the lead in changing their offerings, their operational processes or the underlying models which drive their business. For example, leadership in banking has passed to others, particularly those who were able to capitalize early on the boom in information and communications technologies; in particularly many of the lucrative financial services like securities and share dealing have been dominated by players with radical new models like Charles Schwab. As retailers all adopt advanced IT so the lead shifts to those who are able - like Zara and Benneton - to streamline their production operations to respond rapidly to the signals flagged by the IT systems.

With the rise of the Internet the scope for service innovation has grown enormously - not for nothing is it sometimes called 'a solution looking for problems'. As Evans and Wurster point out, the traditional picture of services being either offered as a standard to a large market (high 'reach' in their terms) or else highly specialized and customized to a particular individual able to pay a high price (high 'richness') is 'blown to bits' by the opportunities of Web-based technology. Now it becomes possible to offer both richness and reach at the same time - and thus to create totally new markets and disrupt radically those which exist in any information-related businesses.

The challenge which the Internet poses is not only one for the major banks and retail companies, although those are the stories which hit the headlines. It is also an issue - and quite possibly a survival one - for thousands of small businesses. Think about the local travel agent and the cosy way in which it used to operate. Racks full of glossy brochures through which people could browse, desks at which helpful sales assistants sort out the details of selecting and booking a holiday, procuring the tickets, arranging insurance and so on. And then think about how all of this can be accomplished at the click of a mouse from the comfort of home - and that it can potentially be done with more choice and at lower cost. Not surprisingly, one of the biggest growth areas in dot.com start-ups was the travel sector and whilst many disappeared when the bubble burst, others like lastminute.com and Expedia have established themselves as mainstream players.

Of course, not everyone wants to shop online and there will continue to be scope for the high-street travel agent in some form - specializing in personal service, acting as a gateway to the Internet-based services for those who are uncomfortable with computers, etc. And, as we have seen, the early euphoria around the dot.com bubble has given rise to a much more cautious advance in Internet-based business. The point is that whatever the dominant technological, social or market conditions, the key to creating - and sustaining - competitive advantage is likely to lie with those organizations which continually innovate.

Table 1.1 indicates some of the ways in which enterprises can obtain strategic advantage through innovation.

1.2 Types of Innovation

Before we go too much further it will be worth defining our terms. What do we mean by 'innovation'? Essentially we are talking about change, and this can take several forms; for the purposes of this book we will focus on four broad categories (the '4Ps' of innovation):

'product innovation' - changes in the things (products/services) which an organization offers;

'process innovation' - changes in the ways in which they are created and delivered;

'position innovation' - changes in the context in which the products/services are introduced;

'paradigm innovation' - changes in the underlying mental models which frame what the organization does.

For example, a new design of car, a new insurance package for accident-prone babies and a new home entertainment system would all be examples of product innovation. And change in the manufacturing methods and equipment used to produce the car or the home entertainment system, or in the office procedures and sequencing in the insurance case, would be examples of process innovation.

Sometimes the dividing line is somewhat blurred - for example, a new jet-powered sea ferry is both a product and a process innovation. Services represent a particular case of this where the product and process aspects often merge - for example, is a new holiday package a product or process change?

Innovation can also take place by repositioning the perception of an established product or process in a particular user context. For example, an old-established product in the UK is Lucozade - originally developed as a glucose-based drink to help children and invalids in convalescence. These associations with sickness were abandoned by the brand owners, SmithKline Beecham, when they relaunched the product as a health drink aimed at the growing fitness market where it is now presented as a performance-enhancing aid to healthy exercise. This shift is a good example of 'position' innovation.

Sometimes opportunities for innovation emerge when we reframe the way we look at something. Henry Ford fundamentally changed the face of transportation not because he invented the motor car (he was a comparative latecomer to the new industry) nor because he developed the manufacturing process to put one together (as a craft-based specialist industry car-making had been established for around 20 years). His contribution was to change the underlying model from one which offered a handmade specialist product to a few wealthy customers to one which offered a car for Everyman at a price they could afford. The ensuing shift from craft to mass production was nothing short of a revolution in the way cars (and later countless other products and services) were created and delivered. Of course making the new approach work in practice also required extensive product and process innovation - for example, in component design, in machinery building, in factory layout and particularly in the social system around which work was organized.

(Continues...)



Excerpted from Managing Innovation by Joe Tidd Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

Table of Contents

About the Authors v

Preface to the Seventh Edition vi

How to Use This Book: Key Features viii

1 Innovation – What It Is and Why It Matters 1

1.1 The Importance of Innovation 2

1.2 Innovation Is Not Just High Technology 4

1.3 It’s Not Just Products . . . 7

1.4 Innovation and Entrepreneurship 9

1.5 Strategic Advantage Through Innovation 10

1.6 Old Question, New Context 15

1.7 The Globalization of Innovation 16

1.8 So, What Is Innovation? 19

1.9 A Process View of Innovation 22

1.10 The Scope for Innovation 24

Four Dimensions of Innovation Space 24

Mapping Innovation Space 28

1.11 Key Aspects of Innovation 29

Incremental Innovation – Doing What We Do but Better 30

Component/Architecture Innovation and the Importance of Knowledge 31

Platform Innovation 33

The Innovation Life Cycle – Different Emphasis Over Time 34

Discontinuous Innovation – What Happens When the Game Changes? 37

1.12 Innovation Management 42

Summary 44

Further Reading 45

Other Resources 47

References 48

2 Digital Is Different? 50

2.1 What Is Digital Innovation? 51

2.2 Is It New? 54

2.3 Is It Revolutionary? 55

2.4 What Does It Mean for Innovation? 56

2.5 What Does It Mean for Innovation Management? 59

The New Digital Toolkit 60

New Ways of Thinking About Innovation Management 64

Summary 67

Further Reading 67

Other Resources 68

References 68

3 Innovation as a Core Business Process 70

3.1 The Innovation Journey 70

3.2 Different Circumstances Similar Management Challenges 72

3.3 Variations on a Theme 73

Services and Innovation 73

Service Innovation Emphasizes the Demand Side 77

The Extended Enterprise 79

Innovation in the Non-commercial Arena 79

Not-for-Profit Innovation 80

Social Entrepreneurship 82

3.4 Cross Sector Differences 84

Organizational Size 84

Project-based Organizations 85

Platform Innovation 85

Ecosystems 86

The Influence of Geography 86

Regulatory Context 87

Industry Life Cycle 87

3.5 Do Better/Do Different 88

3.6 A Contingency

Model of the Innovation Process 90

3.7 Evolving Models of the Process 90

3.8 Can We Manage Innovation? 93

3.9 Building and Developing Routines across the Core Process 95

Navigating the Negative Side of Routines 95

3.10 Learning to Manage Innovation 96

Identifying Simple Archetypes 97

Measuring Innovation Success 98

What Do We Know About Successful Innovation Management? 99

Success Routines in Innovation Management 101

Key Contextual Influences 107

3.11 Beyond the Steady State 108

Summary 108

Further Reading 109

Other Resources 109

References 110

4 Developing an Innovation Strategy 115

4.1 ‘Rationalist’ or ‘Incrementalist’ Strategies for Innovation? 116

Rationalist Strategy 117

Incrementalist Strategy 120

Implications for Management 121

4.2 Innovation ‘Leadership’ versus ‘Followership’ 123

4.3 The Dynamic Capabilities of Firms 126

Institutions: Finance, Management and Corporate Governance 126

Learning and Imitating 128

4.4 Appropriating the Benefits from Innovation 130

4.5 Exploiting Technological Trajectories 136

4.6 Developing Firm-specific Competencies 139

Hamel and Prahalad on Competencies 139

Assessment of the Core Competencies Approach 141

Developing and Sustaining Competencies 144

4.7 Globalization of Innovation 149

4.8 Enabling Strategy Making 154

Routines to Help Strategic Analysis 154

Portfolio Management Approaches 155

Summary 157

Further Reading 158

Other Resources 158

References 159

5 Building the Innovative Organization 164

5.1 Shared Vision, Leadership and the Will to Innovate 166

5.2 Appropriate Organizational Structure 172

5.3 Key Individuals 176

5.4 High Involvement in Innovation 179

5.5 A Roadmap for the Journey 183

5.6 Effective Team Working 186

5.7 Creative Climate 192

5.8 Boundary-Spanning 204

Contents xiii

Summary 207

Further Reading 207

Other Resources 208

References 209

6 Sources of Innovation 214

6.1 Where Do Innovations Come From? 215

6.2 Knowledge Push 216

6.3 Need Pull 218

6.4 Making Processes Better 220

6.5 Crisis-driven Innovation 222

6.6 Whose Needs? The Challenge of Underserved Markets 223

6.7 Emerging Markets 227

6.8 Toward Mass Customization 229

6.9 Users as Innovators 232

6.10 Using the Crowd 235

6.11 Extreme Users 237

6.12 Prototyping 238

6.13 Watching Others – and Learning from Them 239

6.14 Recombinant Innovation 240

6.15 Design-led Innovation 241

6.16 Regulation 243

6.17 Futures and Forecasting 243

6.18 Accidents 244

Summary 245

Further Reading 246

Other Resources 247

References 248

7 Search Strategies for Innovation 251

7.1 The Innovation Opportunity 252

Push or Pull Innovation? 252

Incremental or Radical Innovation? 253

Exploit or Explore? 254

7.2 When to Search 254

7.3 Who Is Involved in Search? 255

7.4 Where to Search – The Innovation Treasure Hunt 257

Ambidexterity in Search 258

Framing Innovation Search Space 258

7.5 A Map of Innovation Search Space 260

Zone 1 261

Zone 2 261

Zone 3 262

Zone 4 262

7.6 How to Search 263

7.7 Absorptive Capacity 266

7.8 Tools and Mechanisms to Enable Search 268

Managing Internal Knowledge Connections 268

Extending External Connections 270

Summary 272

Further Reading 272

Other Resources 273

References 274

8 Innovation Networks 277

8.1 The ‘Spaghetti’ Model of Innovation 279

8.2 Innovation Networks 281

Why Networks? 282

Emergent Properties in Networks 284

Learning Networks 284

Breakthrough Technology Collaborations 286

Regional Networks and Collective Efficiency 286

Mobilizing Networking 287

8.3 Networks at the Start-up 288

8.4 Networks on the Inside . . . 290

8.5 Networks on the Outside 291

8.6 Networks into the Unknown 296

8.7 Managing Innovation Networks 298

Configuring Innovation Networks 298

Facing the Challenges of Innovation Networks 299

Summary 300

Further Reading 301

Other Resources 301

References 302

9 Dealing with Uncertainty 304

9.1 Meeting the Challenge of Uncertainty 305

9.2 The Funnel of Uncertainty 306

9.3 Planning Under Uncertainty 307

9.4 Forecasting Innovation 311

Customer or Market Surveys 313

Internal Analysis, for Example, Brainstorming 314

External Assessment, for Example, Delphi 314

Scenario Development 315

9.5 Estimating the Demand for Innovations 316

9.6 Assessing Risk, Recognizing Uncertainty 318

Risk as Probability 319

Perceptions of Risk 321

9.7 Assessing Opportunities for Innovation 325

Financial Assessment of Projects 325

How to Evaluate Learning? 326

How Practicing Managers Cope 334

9.8 Decision Making at the Edge 336

Selection and Reframing 336

9.9 Mapping the Selection Space 339

Summary 345

Further Reading 345

Other Resources 345

References 346

10 Creating New Products and Services 349

10.1 Processes for New Product Development 350

Concept Generation 353

Project Selection 353

Product Development 354

Product Commercialization and Review 355

Lean and Agile Product Development 355

Lean Start-up 356

10.2 Factors Influencing Product Success or Failure 358

Commitment of Senior Management 362

Clear and Stable Vision 362

Improvisation 363

Information Exchange 363

Collaboration under Pressure 364

10.3 Influence of Technology and Markets on Commercialization 364

10.4 Differentiating Products 368

10.5 Building Architectural Products 371

Segmenting Consumer Markets 372

Segmenting Business Markets 373

10.6 Commercializing Technological Products 378

10.7 Implementing Complex Products 381

The Nature of Complex Products 382

Links Between Developers and Users 382

Adoption of Complex Products 384

10.8 Service Innovation 385

10.9 Diffusion of Innovations 391

Processes of Diffusion 391

Factors Influencing Adoption 393

Characteristics of an Innovation 394

Summary 399

Further Reading 399

Other Resources 400

References 401

11 Exploiting Open Innovation and Collaboration 405

11.1 Joint Ventures and Alliances 406

Why Collaborate? 406

11.2 Forms of Collaboration 410

11.3 Patterns of Collaboration 413

11.4 Influence of Technology and Organization 415

Competitive Significance 416

Complexity of the Technology 417

Codifiability of the Technology 418

Credibility Potential 418

Corporate Strategy 419

Firm Competencies 419

Company Culture 419

Management Comfort 420

Managing Alliances for Learning 420

11.5 Collaborating with Suppliers to Innovate 427

11.6 User-led Innovation 431

11.7 Extreme Users 434

Co-development 435

Democratic Innovation and Crowdsourcing 436

11.8 Benefits and Limits of Open Innovation 438

Summary 441

Further Reading 442

Other Resources 442

References 443

12 Promoting Entrepreneurship and New Ventures 448

12.1 Ventures, Defined 449

Profile of a Venture Champion 450

Venture Business Plan 453

Funding 453

Crowd-funding 456

Corporate Venture Funding 456

Venture Capital 458

12.2 Internal Corporate Venturing 460

To Grow the Business 463

To Exploit Underutilized Resources in New Ways 463

To Introduce Pressure on Internal Suppliers 463

To Divest Noncore Activities 463

To Satisfy Managers’ Ambitions 464

To Spread the Risk and Cost of Product Development 464

To Combat Cyclical Demands of Mainstream Activities 464

To Learn About the Process of Venturing 464

To Diversify the Business 465

To Develop New Competencies 465

12.3 Managing Corporate Ventures 467

12.4 Assessing New Ventures 470

Structures for Corporate Ventures 472

Direct Integration 474

Integrated Business Teams 474

New Ventures Department 474

New Venture Division 474

Special Business Units 475

Independent Business Units 475

Nurtured Divestment 476

Complete Spin-off 476

Learning Through Internal Ventures 477

12.5 Spin-outs and New Ventures 479

12.6 University Incubators 482

12.7 Growth and Performance of Innovative Small Firms 489

Summary 499

Further Reading 499

Other Resources 500

References 501

13 Capturing the Business Value of Innovation 505

13.1 Creating Value through Innovation 506

13.2 Innovation and Firm Performance 510

13.3 Exploiting Knowledge and Intellectual Property 514

Generating and Acquiring Knowledge 514

Identifying and Codifying Knowledge 515

Storing and Retrieving Knowledge 518

13.4 Sharing and Distributing Knowledge 520

Converting Knowledge into Innovation 522

13.5 Exploiting Intellectual Property 525

Patents 525

Copyright 529

Design Rights 529

Licensing IPR 529

13.6 Business Models and Value Capture 532

Summary 540

Further Reading 540

Other Resources 541

References 542

14 Creating Social Value 545

14.1 Innovation and Social Change 546

14.2 The Social Innovation Process 548

Social Innovation as a Learning Laboratory 552

Public Sector Innovation 552

Supporting and Enabling Social Innovation 552

Challenges in Social Innovation 553

14.3 Inclusive Innovation 554

14.4 Humanitarian Innovation 556

14.5 The Challenge of Sustainability-led Innovation 557

14.6 A Framework Model for Sustainability-led Innovation 559

14.7 Responsible Innovation 567

Summary 568

Further Reading 569

Other Resources 569

References 570

15 Capturing Learning from Innovation 571

15.1 What We Have Learned About Managing Innovation 572

15.2 How to Build Dynamic Capability 573

15.3 How to Manage Innovation 575

15.4 The Importance of Failure 576

15.5 Tools to Help Capture Learning 577

Postproject Reviews (PPRs) 577

Proceduralizing Learning 578

Agile Innovation Methods 578

Benchmarking 579

Capability Maturity Models 579

15.6 Innovation Auditing 580

15.7 Measuring Innovation Performance 581

15.8 Measuring Innovation Management Capability 581

15.9 Reflection Questions for Innovation Auditing 583

Search 583

Select 584

Implement 584

Proactive Links 586

Learning 587

15.10 Developing Innovation Capability 588

15.11 Final Thoughts 590

Summary 591

Further Reading 591

Other Resources 591

References 592

Index I-1

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