Capabilities-Driven Innovation Management - Konwledge Contributions 2015 - Linkedin

All Rights Reserved. Copyright © Louis Bouwer 2015.

Slide #1

Capabilities-Driven Innovation ManagementTM Framework

Research Working PaperSlides

Louis [email protected]

mailto:[email protected]

http://www.louisbouwer.co.za/


Slide #2

OVO Innovation : Innovation and the Gartner Hype Cycle

Jeffrey Phillips

• “innovation as a

theory” is very mature

concept.

• The emergence of

“innovation as a

competency” is till on

the positive slope of

the Hype Curve.

http://innovateonpurpose.blogspot.com/2014/05/innovation-and-hype-cycle.html

http://innovateonpurpose.blogspot.com/2014/05/innovation-and-hype-cycle.html


Slide #3

Research Strategy – Theory Construction

Objective #1: “Dumpster Diving”• Being Curious• Observe• Question• Listen

• What does innovation looks like within corporations?• Current state of innovation management?• Observe what top innovators do differently?

Objective #2: “Empirical Theories”• Associations• Connections

• Suggest new definitions.• Develop new models and frameworks.

Objective #3: “Academic Construct”• Idea Experimentation and Testing• Theoretical Explanation or Solution

• Construct theories to explain a phenomenon.


Slide #4

Model for Corporate Innovation Management Knowledge

Industrial Engineering

Systems Engineering

EnterpriseEngineering

OperationsManagement

InnovationManagement

Business ProcessRe-Engineering

EngineeringCorporate Innovation Ecosystem Management

Product

Enterprise Innovation Ecosystem Management EngineeringManagement Innovation for Product Innovation ManagementManagement Innovation for Total Innovation Management

Total

Experience


Slide #5

Process to Develop Corporate Innovation Management Capabilities

Business Systems:Complex & Integrated

Technologies, Processes, Services, Etc.

Automation Optimization

Holistic Approach:Natural Sciences

Business SciencesSocial Sciences

Engineering

Activities:EvaluateSpecifyDevelopImproveDesignPredict

ImplementResources:

People, Money, Knowledge, Information,

Equipment, Energy, Materials, Etc.

Operations Management

Business Process Reengineering

Basic ScienceApplied Science

Capabilities:EfficientEffective

Productive

Technology Management

Increased Competitiveness:Lower Costs

Improve QualityCustomer Satisfaction

Wealth &Brand Recognition

OutputCreative Science


Slide #6

4 Rules - Corporate Survival and Sustainable Growth

#4 Increase Shareholder ReturnMarket Capitalization and Dividends

#3 Increase GrowthMarket, Revenue or Profit Margin Growth

#1 InnovateOrganization, Offering and Experience

#2 Competitive AdvantageGenerate Brand Recognition and Profits


Slide #7

The Challenge – Implementation of Innovation Management

Middle-Class Innovators, stuck in the

Innovator’s Chasm70%

Non Innovators10%

Top Innovators20%


Slide #8

Crossing the Innovator’s Chasm

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 1 2 3 4 5 6 7 8 9 10

Acc

um

ula

tive

Gro

wth

Crossing the Innovator's Chasm

Top Innovators

Bottom Innovators

Innovator’s Chasm

Find a simple framework that will enable the development of theories how corporations can cross the innovator’s chasm.


Slide #9

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Cu

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R&D Operations Management

IPStrategy

R&D ProjectManagement

Engineering ProjectManagement

Engineering OperationsManagement

IP Prosecution Management

Concept PortfolioManagement

BusinessStrategy

IP OperationsManagement

MarketingManagement

Product PortfolioManagement

Sales & SupportManagement

InnovationStrategy

Tech PortfolioManagement

Innovation System – R&NPD LPM Ecosystem

Tacit Knowledge Consumer ProductExplicit Knowledge

Front End of Innovation (FEI) Back End of Innovation (BEI)Technology Portfolio Development (NPD & PLM)

Ideation Implementation ForresterIncubation AccelerationSelection

Discover Deliver PDMADevelopment

Ideation Post Launch EveleensDevelopment ImplementationSelection

Define CommercializeDevelop Design BMGIDiscover Demonstrate

Outcome-Driven Innovation (ODI)(Anthony Ulwick)

Product Management Framework

Open Innovation Model(Prof Chesbrough)

Spiro-LevelTM 3-D Innovation Process Model (Dr Briones)

Launch into the MarketStage-Gate Product

Innovation System(Dr Cooper & Dr Edgett)


Slide #10

Wikipedia : Innovation Process

The innovation process (or system) inside the organization that identifies strategies, business opportunities and new technologies and then develops new capabilities and architectures with partners, new business models and new industry structures to serve those opportunities.

» Anonymous @ http://en.wikipedia.org/wiki/Chief_innovation_officer

• Phases identified from the innovation models:– Phase 1: idea generation or searching for ideas for innovation.

– Phase 2: Selection should be based on both the organisational strategy and on the existing portfolio of projects to spread risks

– Phase 3: Development, turn the (selected) idea into some tangible product, process or service, development and testing.

– Phase 4: Implementation in “the real world”, preparing for customers and marketing activities.

– Phase 5: Post Launch support, this entails the sustaining and supporting of the innovation or even re-innovating it and scaling it up.

– Phase 6: Learning, how the innovation process delivered a new idea.» Eveleens, C. 2010. Innovation management; a literature review of innovation process models and their

implications. Science, 800:900.

http://en.wikipedia.org/wiki/Chief_innovation_officer


Slide #11

Definition of Innovation

An innovation is the implementation of a new or significantly improved

product (good or service), or process, a new marketing method, or a

new organisational method in business practices, workplace

organisation or external relations.

• The ultimate reason is to improve firm performance, for example by

increasing demand or reducing costs.• OECD, Oslo Manual 2005

Guidelines for collecting and interpreting innovation data, p46

http://www.oecd.org/innovation/inno/oslomanualguidelinesforcollectingandinterpretinginnovationdata3rdedition.htmhttp://www.econ-it2.eu/en/training/5-innovation-management/5-2-types-of-innovation

http://www.econ-it2.eu/en/training/5-innovation-management/5-2-types-of-innovation

http://www.econ-it2.eu/en/training/5-innovation-management/5-2-types-of-innovation


Slide #12

Proposed Definition for Innovation @ Corporate Level

Innovation is a system that delivers new ideas as unique

solutions (for customers and consumer) in such a way that

the company will generate brand recognition in the market

and wealth for employees and stakeholders.

Where:

New ideas may require sustainable, disruptive or breakthrough

innovation efforts[1] to deliver new improved profit models,

networks, structures, processes, products, services, channels,

brands or customer engagement innovation types[2].

[1] Christensen and Bever, 2014[2] Keeley et al., 2013


Slide #13

Model for the Diffusion of Product Innovation Knowledge

Education Knowledge

Development Technology

Entrepreneurship Sales

Research Invention

Commercialization Product


Slide #14

Innovation Effort Classification & Categorization Framework

Class (Christensen) Category Innovation Strategy (PWC) Target Market Outcome (Christensen)

Breakthrough Revolutionary Technology Drivers New Markets Offensive GrowthDefensive Re-PositioningEfficiency Improvements

Disruptive Evolutionary Need Seekers Adjacent Markets

Sustainable Incremental Market Followers Core Market

Organization (Oslo Types) / Configuration

Process Product / Offering Marketing / Experience

Profit Model Process Performance Service

Network System Channel

Structure Brand

Customer Engagement


Slide #15

Ideation

Tony Swartz Richard St John iDNA (Christensen)

Saturation Curious

Observe Observe

Question Question

Listen

Incubation Connections Associate

Illumination

Verification Solve Problem Experiment

http://brightlifeforall.blogspot.com/2011/11/8-things-for-success.html

http://brightlifeforall.blogspot.com/2011/11/8-things-for-success.html


Slide #16

Managing Innovation

Corporate Innovation Management Product Innovation Management

Ecosystem Focus Process Focus

Manage Innovation Process Drive Innovation Process

Strategic Tactical / Operational

Growth P&L

Change Management Project Management

Capabilities Management Commercialization Management

Competitive Intelligence Best Practices

Strategic Alignment (BU & Strategy) Develop Skills

IT Systems & Big Data Support Business Units

Culture Development Identify Mew Markets

Collaboration & Networking Idea Generation

Benchmarking Seed Funding

Governance (Org, Promotions, Careers, Rewards, Decisions etc.) Shelter Promising Projects

Innovation Strategy Technology Management

Leadership Resource Management


Slide #17

Corporate Functions Supporting Innovation

Management Function (Highest Rank) Management Role Outcome

Innovation Management (CINO) Innovation Revenue Growth & Cost Reduction

R&NPD and PLM Management (CTO) PDM / PLM Product Innovation

Project Management (VP) PPM Complete projects on time, under budget.

Marketing Management (VP) Branding, Promotion, PR Company & Product perception development

IT Management (CIO) IT Infrastructure & Systems Automate & Optimize organization processes

Product Management (VP) Brand, Promote etc. Industry, market & consumer intelligence leaders

Supply Chain Management (CSCO) SCM Support Operations

Logistics Management (Director) Distribution Deliver product to customers or consumers

Operations Management (COO) Operations Manufactured products or services

Finance Management (CFO) Finance Finance Compliance

Human Resource Management (Director) HR Employee Support

Sales Management (VP) CRM Business Development

Executive Management (CEO)(CSO) Strategy Define future vision, goals and objectives

Legal Management (Director) Legal Functions Ensure legal requirements are met


Slide #18

Chief Innovation Officer’s Responsibilities

Wikipedia Mark Johnson - Innosight Alessandro Di Fiore - ECSI Bill Poston - Kalypso

Managing the process of innovation Defining a language for innovation Supporting best practices. Improve and deliver business results from innovation

Originates or recognizes new innovative ideas

Learning assumptions with prototypes Developing skills Formulate and communicate innovation strategy

Focuses on radical or breakthrough innovation

Long-term repeatable process creating structure

Supporting BUs in new product and service initiatives

Identify disruptive threats and opportunities based on trends

Focus on key principles behind innovation

Identifying new market spaces Shape and manage the corporate innovation portfolio

Helping people generate ideas Cultivate and sponsor breakthrough innovation initiatives

Directing seed funding Evolve innovation business disciplines and competencies

Designing shelter for promising projects Create and nurture a culture conducive to innovation

Develop innovation roles, talents, and career paths

Lead the measurement and analysis of innovation results

Define and monitor innovation metrics and measures


Slide #19

Motivation Drivers for Innovation

Hypercompetitive Industries

Demanding Shareholders and Employees

Demanding Customers and Consumers

Turbulent and dynamic markets

Fast paced changing world


Slide #20

Motivational Drivers for Innovation

1. Hypercompetitive industries.– Globalization.

– Barriers of entry are getting smaller and lesser.

– Increase in disruptive and breakthrough innovations.

– Product innovation alone is insufficient.

– Business model and systems oriented solutions is required.

2. Turbulent and dynamic markets.– Increased influence by the Internet, social media and digital devices.

– Fast-moving, uncertain markets with new entrants and solution offerings.

3. Fast paced changing world.– Increased pace to get idea-to-market.

– Shorter product life cycles.

4. Demanding shareholders and employees for growth and wealth.– Market capitalization and dividends requires increased revenues and profits.

5. Demanding customer and consumers.– Cheaper and better solutions to help get the job done.

– More individualized products or service solutions.


Slide #21

Motivational Drivers for Innovation Management

1. Increased collaboration and larger networks across and outside

the corporation.

2. Increased complexity of solutions with high tech integrations and

new business models.

3. Increased disruptive and breakthrough innovation efforts.

4. Increased pace with product research, development and

commercialization.

5. Increased financial investments required.

6. Increased risks for technological and commercial success.


Slide #22

Challenges for Managing Innovation within a Corporation

1. Corporate commitment and support.

2. Integration of product data, technology forecasts, consumer analyses and market insights.

3. Alignment of technical capabilities with turbulent and dynamic market insights.

4. Transformation of tacit knowledge (intangible assets) into products (tangible assets) via a complex innovation system.

5. Complex organization structures, organizational behaviour and culture.

6. Establishment and development of new innovation management capabilities.

7. Internal and external stakeholder management.


Slide #23

Proposed Definition for Innovation Management at Corporate Level

Innovation Management is holistic operational business function with the responsibility to automate, optimize and coherently align the multidisciplinary and multi-functional innovation capabilities of a corporation to ensure good ideas (as unique solutions) can get through the innovation system fast, effective and efficiently through proper coordination, collaboration and communication across the organization.

It has to enable the innovation system to be: – Repeatable

– Predictable

– Consistent

– Sustainable (imbedded in procedures and values)

– Scalable (according to market size)

– Tolerable (less risk)

– Profitable (revenue & growth)


Slide #24

Product Management [VP] = Product Market, Focus, Portfolio, Business, Planning, Program, Readiness and Support Pragmatic Marketing

Executive Management [CEO] = Strategy, vision, direction, leadership, goals, objectives

Innovation System – Corporate Ecosystem

Phases

Innovation Activities“Product” Innovation ManagementR&NPD PLM Capabilities

Enterprise FunctionsInnovation “Ecosystem” ManagementBusiness Support Capabilities

Innovation Management [CINO] = Innovation Strategy, Intelligence, Governance, Processes, Values and Culture CINO

Operations Management [COO] = Enterprise Innovation Management, Manufacturing, Quality, Scheduling, Maintenance, etc.

R&NPD and PL Management [CTO] = Product Innovation Management

Supply Chain Management [CSCO] = Sourcing, Negotiations, Collaborations, Coordination, etc.

Marketing Management [VP] = Brand Development, Product Promotion, Public Relations, Public Perception

Finance Management [CFO] = Accounting, Reporting, Budgeting, Investments, Compliance, etc.

Sales Management [VP] = Customer Relations Management (CRM)

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Tacit Knowledge Consumer ProductExplicit Knowledge

Front End of Innovation (FEI) Back End of Innovation (BEI)Technology Portfolio Development (NPD & PLM)

Ideation Implementation ForresterIncubation AccelerationSelection

Discover Deliver PDMADevelopment

Ideation Post Launch EveleensDevelopment ImplementationSelection

Define CommercializeDevelop Design BMGIDiscover Demonstrate Launch into the Market


Slide #25

Innovation Ecosystems

Federal Government EcosystemNational Innovation System (NIS) @ Government Policy Level

Corporate EcosystemProf Clayton M Christensen

Prof Jean-Philippe DeschampsScott D Anthony

R&NPD PLM Team• Technology Management (CTO)• Research Management• Engineering Management• Product Management• Project Management• Intellectual Property (IP) Management

Industry EcosystemProf Ron Adner

Prof Michael Porter

R&NPD PLM EcosystemDr Scott J. Edgett & Dr Robert G. Cooper

Corporate Team• Executive Management (CEO)• Innovation Management (CINO)• Information Management(CIO)• Finance Management (CFO)• Operations Management (COO)• Supply Chain Management (CSCO)• Logistics Management• Human Resource Management• Marketing Management• Sales Management


Slide #26


Strategy

Competitive Intelligence

Governance R&NPD PLM Operations (FEI)

IT Systems & Data Analytics

Leadership & Culture

Collaboration & NetworkingCommercialization

Operations (BEI)

Benchmarking

Intellectual Property

2. Info TechnologyResource Management

4. Human ResourcesValue Management

3. Current EcosystemOperations Management

1. Plan the FutureResource Management

DynamicInvisible

Capabilities

StableVisible

Capabilities

Directio

n o

f Influ

ence

Direction of Influence

Co

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lignm

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Capabilities-Driven Innovation ManagementTM is a

framework for Corporate-Level Innovation Management,

guiding corporations with management capabilities that

needs to be in place to drive innovation to generate

brand recognition and growth.


Slide #28

Attributes - Capabilities-Driven Innovation ManagementTM

1. Framework is only concerned with innovation management

capabilities.

2. Influence is from top-to-bottom and from left-to-right.

3. Coherency must exist between the top and bottom capabilities.

4. Bottom operational capabilities seek to be stable.

5. Top capabilities needs to be dynamic.

6. Bottom capabilities are visible as processes and values.

7. Top capabilities are invisibly imbedded in specific resources.


Slide #29

Theories - Capabilities-Driven Innovation ManagementTM

Theory #1: Implementation of Capabilities starts with Strategy.

– Currently corporations start at the bottom with culture and ideation.

– “Passing the buck” in responsibility for innovation, the easy way out.

Theory #2: Innovation System Capabilities are Interlinked.

– Innovation Management capabilities are interlinked with critical dependencies.

– Innovation system is only as good the weakest capability.


Slide #30

Hubbart, Leiwand & Mainardi : Supercompetitors 2014

A capability in this context, is the:

1. Ability to consistently deliver a specified outcome relevant to the

business.

2. This takes place through the right combination of processes, tools,

knowledge, skills, and organization.

3. Generally developed across functional boundaries.


Slide #31

Capabilities-Driven Innovation Management Defined vX.1

1. Competitive Intelligence - Management

2. Strategy – Management

– Portfolio Management

– Roadmap Management

3. Intellectual Property – Management

4. IT Systems & Data Analytics – Management

– Knowledge Management


Slide #32

Capabilities-Driven Innovation ManagementTM Defined vX.1

5. Governance1. Why innovate?

2. Where do you look for innovation?

3. How much innovation do you want?

4. How can you innovate more effectively?

5. With whom should you innovate?

6. Who is going to be responsible for what regarding innovation?

7. Organization design

8. Delegation - Decision making responsibilities

9. Selection – prioritize research and development projects

10. Funding – Manage the acquisition and distribution of funding


Slide #33


6. R&NPD PLM Operations (FEI) – Management

7. Commercialization Operations (BEI) – Management1. Comm/Product Management

2. Marketing

3. Sales

8. Benchmarking - Management1. Metrics


Slide #34


9. Leadership & Culture – Management1. Strategic Leadership

– Corporate Focus on Strategic Products

– Cultural motivation is a pull, not a push with ideation

2. Customer Connection

– Employee’s role and contribution to products

– Employee’s role to make customers and consumers happy

3. Have Products and a Brand to be Proud of

– Employee loyalty and enthusiasm

4. Human Resources Management

– Hiring employees with passion

– Inventor Career Path

• An IBM Fellow is an innovator, inventor, visionary, and strategist with an established reputation both inside IBM and externally in the industry and/or academia. An IBM Fellow defines future directions in his or her area of expertise, engages in activities to support business initiatives, and actively leads and nurtures technical communities.

– Invention recognition + rewards

– Hands-on in process innovation training and education


Slide #35


10.Collaboration & Networking - Management


Slide #36

Evolution of Innovation Management Theories (1/3)

1921/34/42 1975 1979 1986

Prof Joseph Schumpeter (Harvard)

InnovationEconomic CyclesCreative Destruction

Dr Robert Cooper & Dr Scott Edgett

Stage-Gate ProcessInnovation Performance Framework 2014

Dominant DesignDynamics of Innovation

Prof James M. Utterback (MIT)Prof William J. Abernathy (Harvard)

Prof Michael Porter (Harvard)

How Competitive Forces Shape StrategyCompetitive Advantage


Slide #37


1992 1997 2002 2003 2005

Prof Clayton Christensen (Harvard)

Disruptive Innovation(The Attacker’s Advantage)

Prof Henry Chesbrough (Berkley)

Open Innovation

Prof Rita Gunther McGrath

Innovation Strategy & Growth

Prof Steven C. Wheelwright (Harvard+BYU) &Prof Kim B. Clark (Harvard+BYU)

Innovation Funnel

Xu, QR ; Zheng, G (Zhejiang Univ)

Total Innovation Management (TIM)


Slide #38


2008 2011 2012 2014

Eric Ries

The Lean Start-upMinimum Viable Product (MVP)

(Continuous Innovation) Prof Jean-Philippe Deschamps (IMD)

Innovation Governance

Building a Growth Factory (2013)The Innovator's Guide to Growth (2008)

Scott D. Anthony (Innosight)

Prof Ron Adner (Dartmouth)

Innovation Ecosystem


Slide #39

Evolution of Product Management Theories (1/2)

1930 1962 1981 1991 1993

Diffusion of Innovations Theory(Technology Adoption Lifecycle)

(Technology Diffusion)

Prof Everett Rogers

Crossing the Chasm

Geoffrey Moore

Product Management Framework

Jack Trout

Positioning Theory(Marketing Warfare Theory)

Neil McElroy @ P&G

Brand/ProductManagement

http://www.troutandpartners.com/books.asp

http://www.troutandpartners.com/books.asp


Slide #40

Evolution of Product Management Theories (2/2)

1994 2005

TechnologyHype Cycle

Outcome-Driven Innovation (ODI)(Customer-Driven Innovation, HBR 2009)

Theodore Levitt’s Marketing Myopia article appeared in Harvard Business Review, the notion that people buy products and services to help them execute a task or to get a job done.

Anthony Ulwick


Slide #41

Evolution of Innovation Methodology Theories (1/2)

“organic innovation” [Moore, 2005].

“blue ocean innovation”[Kim and Mauborgne, 2005],

“frugal innovation” [Tiwari and Herstatt, 2011]

Pentathlon Innovation Management Framework

Reverse Innovation(Vijay Govindarajan & Chris Trimble)

Jugaad Innovation (Navi Radjou, JaideepPrabhu, Simone Ahuja, Kevin Roberts : 2012)

Product Management

Conjoint Innovation (Prof Joe Tidd)

Co-create Innovation

Mass-customization

Crowdsourcing Innovation

Open Innovation

Customer-Driven Innovation(Robert W Ulwich)

Co-funding Innovation


Slide #42

Evolution of Innovation Methodology Theories (2/2)

19 2008 2012 2015

Reverse Innovation (2012)

Jugaad Innovation (2012)Co-create Innovation (2008)

C. K. PrahaladM. S. KrishnanGary HamelProf Venkat Ramaswamy (Michigan)

Vijay GovindarajanChris Trimble

Navi RadjouJaideep PrabhuSimone Ahuja

Frugal Innovation (2015)

Navi RadjouJaideep Prabhu


Slide #43

Evolution of Innovation Management Capabilities Theory

2013 2014 2015

Prof Charles H. Matthews (Cincinnati)Ralph Brueggemann (Cincinnati)

Building a Growth Factory (2013)Build innovation capabilities for

repeatable growth

Scott D. Anthony (Innosight)

1. A growth blueprint that details the types of innovation you are pursuing, along with goals and guidelines for getting there.2. Production systems that transform the raw materials of innovation—ideas—into tangible new products and services.3. Governance and controls that enable the management structure to scale innovations to deliver impact and growth.4. Leadership, talent, and culture that feature the right people, in the right roles, doing and saying the right things.

Innovation and Entrepreneurship:A Competency Framework (2015)

Dr Robert Cooper & Dr Scott Edgett

Innovation Performance FrameworkTM (2014) Drivers for Innovation Performance

1. Product Innovation & Technology Strategy. Driven by your leadership team, this sets out the strategic areas where your innovation efforts will be focused (the products, technologies, and platforms that will advance the business).

2. New Product Portfolio Management. Portfolio management systems help the leadership team to effectively focus their resources on the right strategic arenas and to a short list of high-value projects

3. A Stage-Gate® Idea-to-Launch Process. The gates in your Stage-Gate® process offer rigorous evaluations of each new project forcing tough Go/Kill decisions.

4. Culture & Leadership. People, culture, and leadership are behind the sustainable success of top performing companies.


Slide #44

Evolution of Innovation Theory

Porter, M.E. 1979. How competitive forces shape strategy. Harvard Business Review, 57 (2):137-145.Porter, M.E. 1987. From competitive advantage to corporate strategy. Harvard Business Review:43.Leinwand, P. & Mainardi, C. 2010. The coherence premium. Harvard Business Review, 88 (6):86-92.Leinwand, P. & Mainardi, C. 2011. The essential advantage : how to win with a capabilities-driven strategy / Paul Leinwand, Cesare Mainardi. Boston, Mass. : Harvard Business Review Press, c2011.

1979Competitive Advantage

Christensen, C.M. 1992. Exploring the limits of the technology S‐curve. Part I: component technologies. Production and Operations Management, 1 (4):334-357.Christensen, C.M. 1992. Exploring the limits of the technology S‐curve. Part II: Architectural technologies. Production and Operations Management, 1 (4):358-366.Christensen, C.M., Suárez, F.F. & Utterback, J.M. 1998. Strategies for Survival in Fast-Changing Industries. Management Science, 44 (12):S207-S220.Christensen, C.M., Cook, S. & Hall, T. 2005. Marketing Malpractice. Harvard Business Review, 83 (12):74-83.Wessel, M. & Christensen, C.M. 2012. Surviving Disruption. Harvard Business Review, 90 (12):56-64.Christensen, C.M. & Bever, D.v. 2014. The Capitalist's Dilemma. Harvard Business Review, 92 (6):60-68.

Peters, T. 1979, Beyond the Matrix Organization. McKinsey Quarterly.Drucker, P.F. 1985. The discipline of innovation. Harvard Business Review, 63 (3):67-72.

Deschamps, J.P. & Nelson, B. 2014. Innovation Governance: How Top Management Organizes and Mobilizes for Innovation. Wiley.Adner, R. & Kapoor, R. 2014. Innovation Ecosystems and the Pace of Substitution: Re‐examining Technology S‐curves. Strategic Management Journal.

Gunther McGrath, R. 2013. Transient advantage. Harvard Business Review, 91 (6):1-10, 06 / 01 /.

Keeley, L., Walters, H., Pikkel, R. & Quinn, B. 2013. Ten types of innovation: The discipline of building breakthroughs. John Wiley & Sons.


Slide #45

Evolution of Innovation Process Theory

Rothwell, R. 1994. Towards the Fifth‐generation Innovation Process. International Marketing Review, 11 (1):7-31.Hobday, M. 2005. Firm-Level Innovation Models: Perspectives on Research in Developed and Developing Countries. Technology Analysis and Strategic Management, 17 (2):121-146.Ortt, J.R. & Van Der Duin, P.A. 2008. The evolution of innovation management towards contextual innovation. European Journal of Innovation Management, 11 (4):522-538, 01 / 01 /.Eveleens, C. 2010. Innovation management; a literature review of innovation process models and their implications. Science, 800:900.

1994Innovation Process


Slide #46

Evolution of Innovation Management Capabilities Theory

Prahalad, C.K. & Hamel, G. 1990. The Core Competence of the Corporation. Harvard Business Review, 68 (3):79-91.Leonard-Barton, D. 1992. Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13 (S1):111-125.Srivastava, S.C. 2005. Managing Core Competence of the Organization. Vikalpa: The Journal for Decision Makers, 30 (4):49-63.Smith, R. 2008. Harnessing competencies, capabilities and resources. Research Technology Management, 51 (5):47, 09//Sep/Oct2008.

Xu, Q., Yu, Z., Zheng, G. & Zhou, Z. 2002. Towards Capability-based Total Innovation Management (TIM). International Conference on Management of Innovation and Technology (ICMIT’02 & ISMOT'02). Zheng, G., Yang, Z., Xie, Z. & Bao, G. 2003. Total Innovation Management: A New Emerging Paradigm of Innovation Management. (Inorganised by IEEE.Xu, Q.R., Liang, X.R. & Zhu, L. 2004. The Evolution of Three Generations Innovation Management -From Event View, Process View to Capability View. (InInternational Engineering Management Conference organised by IEEE.

1990Core Competencies

2002Total Innovation

Management

Teece, D. & Pisano, G. 1994. The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3 (3):537-556, 01 / 01 /.Teece, D.J., Pisano, G. & Shuen, A. 1997. Dynamic capabilities and strategic management. Strategic Management Journal, 18 (7):509-533.Lee, H. & Kelley, D. 2008. Building dynamic capabilities for innovation: An exploratory study of key management practices. R and D Management, 38 (2):155-168, 03 / 01 /.Newey, L.R. & Zahra, S.A. 2009. The Evolving Firm: How Dynamic and Operating Capabilities Interact to Enable Entrepreneurship. British Journal of Management, 20:S81-S100.

1994Dynamic Capabilities

Stalk, G., Evans, P. & Shulman, L.E. 1992. Competing on capabilities: the new rules of corporate strategy. Harvard Business Review, 70 (2):57-69, 03 / 01 /.

1992Capabilities

Xu, Q., Chen, J., Xie, Z., Liu, J., Zheng, G. & Wang, Y. 2007. Total Innovation Management: a novel paradigm of innovation management in the 21st century. The Journal of Technology Transfer, 32 (1-2):9-25.Hajikarimi, A., Hamidizadeh, M.R., Jazani, N. & Hashemi, S.M.G. 2012. Comprehensive Systemic Model of Innovation Management : Total Innovation Management ( TIM ). Interdisciplinary Journal of Contemporary Research in Business, 4 (9):1078 - 1088, January, 2013.


Slide #47

Warning on the Institutionalization of Innovation Management

• In our experience, too many companies have very detailed and refined

“funnel” processes with elaborate stage gates and committees that

together ensure any innovation is completely watered down by the time

customers or end-users interact with it.» ???

• But long-used innovation models no longer keep up. Processes are

too slow, dragged out by too many rigid stages and gates to clear.

Decision making has become overly complicated and consensus

based, resulting in compromised, incremental solutions with little

chance for a big impact.» Taylor, A. & Wagner, K. 2014. Rethinking you innovation system. BCG Perspectives: BCG.


Slide #48

Steps How to develop an Innovative Culture

1. Strategic Leadership– Corporate Focus on Strategic Products

– Cultural motivation is a pull, not a push with ideation

2. Customer Connection– Employee’s role and contribution to products

– Employee’s role to make customers and consumers happy

3. Have Products and a Brand to be Proud of– Employee loyalty and enthusiasm

4. Human Resources Management– Hiring employees with passion

– Inventor Career Path– An IBM Fellow is an innovator, inventor, visionary, and strategist with an established reputation both inside IBM and

externally in the industry and/or academia. An IBM Fellow defines future directions in his or her area of expertise, engages in activities to support business initiatives, and actively leads and nurtures technical communities.

– Invention recognition + rewards

– Hands-on in process innovation training and education


Slide #49

Steps How to develop an Innovative Culture

• Hence, the factors that define an organization’s capabilities and

disabilities evolve over time. They start in resources; then move to

visible, articulated processes and values; and migrate finally to culture.» Christensen, C.M. & Overdorf, M. 2000. Meeting the Challenge of Disruptive Change. Harvard

Business Review, 78 (2):66-76.

• developing and retaining people with the right technical knowledge» Jaruzelski, B., Jaruzelski, V. & Goehle, B. 2014, The Global Innovation 1000: Proven Paths to

Innovation Success. strategy+business magazine: Winter 2014, 1-18 Winter 2014.


Slide #50

Culture: PwC Strategy 2011

Why Culture is Key: Top Culture Attributes

More than 60% cited “strong identification with the customer” and

50% chose “passion for and pride in products” as the top 2 cultural

attributes that are most prevalent at their companies.

Poor innovation performance is usually not caused by a lack of ideas or

lack of aspirations. What some companies lack is the structure needed to

effectively dedicate resources to innovation. It’s the lack of will to develop

a strategy that can balance today’s need versus tomorrow’s.

http://www.booz.com/global/home/what-we-think/global-innovation-1000http://www.strategyand.pwc.com/global/home/what-we-think/global-innovation-1000/past-year-studies/display/2011-why-culture-is-key

http://www.booz.com/global/home/what-we-think/global-innovation-1000

http://www.strategyand.pwc.com/global/home/what-we-think/global-innovation-1000/past-year-studies/display/2011-why-culture-is-key


Slide #51

APQC & Stage-Gate Int: Critical Drivers Innovation Performance.

• The study results indicate that portfolio management is

the key driver of innovation performance.

• Essential elements of portfolio management are:

– Selection and prioritization of projects

– Balance and mix of project types

– Balance of resources

– Pipeline of projects matches strategic objectives

https://www.apqc.org/knowledge-base/download/323486/K05464_Top%20Driver%20of%20Innovation%20Performance%20Infographic.pdf

https://www.apqc.org/knowledge-base/download/323486/K05464_Top Driver of Innovation Performance Infographic.pdf


Slide #52

Innovation Performance

http://www.stage-gate.com/publications_innovationperformance.php

http://www.stage-gate.com/publications_innovationperformance.php

Documents

Capabilities-Driven Innovation Management - Konwledge Contributions 2015 - Linkedin