Using alliances in implementing technology strategy 292 Case study: And the winner is Sony's Blu-ray - the high-definition. The Kodak case is all the more remarkable because Kodak pioneered digital cameras – the technology that ultimately led to the drop in income.
Objective of the book
In this book, we see that many of the old traditional approaches to management need to change and new approaches need to be adopted. Complex management relationships often need to be developed as organizations attempt to produce complex products and services across geographic boundaries.
Target audience
Special features
What is new in the 6th edition?
Web products
Author’s acknowledgements
Publisher’s acknowledgements
All rights reserved; Illustration 4.1 from Business pioneers in technology, Financial Times Waters, R.), © The Financial Times Limited. All rights reserved; Illustration 14.1 from New products key to success, Financial Times Marsh, P.), © The Financial Times Limited.
Part One Innovation management
National systems of
Market adoption and
Managing innovation
Managing intellectual
Part Two Turning technology into business
Strategic alliances
Managing R&D
Open innovation and
Part Three New product development
New service innovation
Market research and
The purpose of this part of the book is to introduce and explore the concept of innovation management. A key part of the innovation process is the management of a firm's intellectual efforts, and this is the focus of Chapter 6.
Introduction
Chapter contents
Learning objectives
But even though the term is now embedded in our language, to what extent do we fully understand the concept? A scientist's view of innovation can be very different from that of an accountant in the same organization.
Apple Watch app designers scramble ahead of launch
It is the analysis of the role of the individual entrepreneur that distinguishes the study of entrepreneurship from that of innovation management. It is important to clarify the use of the term “new” in the context of innovation.
A $900 shop
In his book The Young World Rising, Rob Salkowitz argues that three forces are converging to shape the twenty-first century. First, Salkowitz argues that in the fastest-growing economies, such as the BRICI countries (Brazil, Russia, India, China and Indonesia), young people make up a much larger proportion of the population than is typical of Western countries of the Old World.
Innovation in action
Being innovative is relatively easy – the hard part is making sure your ideas become commercially viable. As soon as the market experienced a radical innovation – the introduction of digital technology – Kodak tried to defend its position against new entrants. Further, in the classic article by Pavitt he explained, in his typology of firms, that 'LMT industries are characterized by process, organizational and marketing innovations, by weak internal innovation capabilities and by strong dependence on external provision of machines, Table 1.6 Chronological development of innovation models.
Every now and then something happens in an industry that causes a disruption – the rules of the game change. In 2000, the company released the bar-shaped Apple Pro mouse – the elongated, but still simple, curves could be held comfortably and securely. 1946) Capital expansion, growth rate and employment, Econometra, vol. 2000) 'The knowledge-based economy: from the knowledge economy to the learning economy', in Foray, D. eds) Employment and Growth in the Knowledge-Based Economy, OECD, Paris.
Commenting on both the tangible and intangible aspects of the Industrial Revolution, he suggested that "the secrets of industry are in the air". Interdependence between state and society can create a favorable national culture that welcomes scientific development and removes it. Figure 2.1 The state's role in innovation.
Brussels v Google – antitrust rules – EU poised to launch broader competition crackdown
Is it true that in a developed market economy the role of the state is of secondary importance? During the very first Kondratieff wave, the rise of the factory and mechanization in the textile sector were only part of the story. Waves of innovation and growth: historical overview Table 2.1 Characteristics of the five growth waves.
Although the late developers followed more or less similar paths to industrialization, some managed significant achievements, particularly in the private sector's attitude to innovation and technology development (eg, Taiwan, Malaysia and Korea). This was partly due to the nation-building and 'Turkification' of the economy in the twentieth century. In Turkey, however, there seems to be a missing link in relation to the innovative Figure 2.4 map of the EU, which indicates four performance groups ranging from the highest to the lowest overall performance.
1 George Bernard Shaw was an Irish playwright and co-founder of the London School of Economics. Moreover, it is the recognition of the entrepreneur's desire to change things that is so important within innovation.
Penny apples – selling them thrice over
For example, there are many studies that have tried to explain why certain companies or individuals have been successful - the rise (and fall) of Microsoft or Nokia. They recognize nearby objects, remember their locations, and thus build a map of the area through which the drone flies. This chapter explored the broader context of innovation, particularly the role of the state.
2003) 'Marketing and development of innovative products', in Shavinina, L. ed.), The International Handbook on Innovation, Elsevier, Oxford. It is this part of the innovation process that proves to be so extremely difficult for many companies. Consumption pattern refers to the degree of change required in the consumer's thinking and behavior when using the product.
And Lay's "Do Us a Flavour" contest is one of the most successful crowdsourcing campaigns for new products. The chairman of the Chinese computer manufacturer Lenovo stated that it is the best company in the world in balancing innovation and efficiency.
Bottom of the pyramid diffusion: toilets in India
The history of the use of dedicated containers for trade dates back to the 1830s. Finally, this chapter discussed an aspect of innovation that is often overlooked—the consumption pattern of a new product or service. 2003) Innovation success and failure: a literature review, International Journal of Innovation Management, vol.
In particular, it emphasized the need to consider innovation as a management process within the context of the organization. Managing the innovation process involves trying to develop the creative potential of the organization. Sometimes one is clear about the nature of the target market and the type of product required.
3 Vigilance and external links The organization's ability to be aware of its threats and opportunities. The ability to effectively manage this diversity of knowledge and skills is at the heart of the innovation process.
Business pioneers in technology
Organizations need a combination of specialized skills and knowledge in the form of specialists, for example in science, advertising or accounting, and general skills that facilitate the cross-enrichment of expertise. Similarly, hybrid managers who have technical and commercial backgrounds are particularly useful in product development (Wheelwright and Clark, 1992). Indeed, their strength lies in buying technologies in the form of products and matching.
Youth has been a more pronounced factor in the software and internet industries than in electronics and hardware. Only Lou Gerstner, a career manager, was not involved in the early days of the company where he made his biggest impact. But by reviving the struggling IBM in the 1990s, he initiated a turnaround unparalleled in the history of the tech industry—that is, until Steve Jobs returned to be Apple's founder.
While making hardware was the primary route to wealth in the early days of the industry, the technology sector's greatest fortunes have come from more intangible resources: creating the software code or online services on which the digital world increasingly depends. These can be found in the fast-growing industries of the twentieth century: chemicals, pharmaceuticals, electronics, computers, etc.
Miele: A €3 billion German engineering family firm
Enterprise resource planning (ERP) business software has become one of the most successful products in the world. All colleagues have the opportunity to participate in the growth of the company by taking ownership in it. 2 List some of the wide range of products that have used Gore-Tex® fabric.
These innovative ideas are likely to be ideas for improvement in the process of manufacturing or delivering the product or service. Choosing the most appropriate and cost-effective method of manufacturing is critical to the continued success of the organization. The flexibility and speed of response of the operation is therefore critical to the success of the organization.
Process design is related to the technology involved in the process and, in essence, is related to both organization and work design. The flow of product within a factory operation may correspond to the flow of customers (as with an airport design) or of information (as in the headquarters of a bank).
Be creative about distribution
Given its widely recognized importance, process innovation has received far less attention than product innovation in the innovation management literature. In practice, product and process innovation are intertwined and any distinction between them is arbitrary. In a major review of the constructs of product and process innovations, Simonetti et al. 1995) conclude that 97 percent of innovations include product and process innovation characteristics.
Process innovation can be defined as new activities introduced into a company's production or service operations to achieve lower costs and/or produce a higher quality product (Reichstein and Salter, 2006). In a large study examining the sources of process innovation, Reichstein and Salter (2006) found that 'the presence of R&D activities is associated with process innovation'. In contrast, process innovation will be undertaken where products are less differentiated and there is less competition in the industry.
In this context, process innovation is often associated with companies' attempts to achieve cost leadership in their market segment or to focus on reducing costs in the production of existing products. They found that process innovation is the most likely route to achieving this highly sought after product flexibility reward.
