BUSINESS, TECHNOLOGY & INNOVATION
Inhoudsopgave
Innovation .....................................................................................................................................................2
Invention vs. Innovation vs. Creativity............................................................................................................... 2
Effects of innovations to an organization ......................................................................................................... 2
Innovation processes models ............................................................................................................................ 3
Innovation types ................................................................................................................................................ 3
Innovation typologies ........................................................................................................................................ 4
Open Innovation, Closed Innovation & Crowdsourcing ..................................................................................... 5
Diffusion of Innovation models ......................................................................................................................... 6
Organization ..................................................................................................................................................9
Business model .................................................................................................................................................. 9
Business Model Canvas (BMC) .......................................................................................................................... 9
Business strategy............................................................................................................................................. 11
Strategic tools for analysis .............................................................................................................................. 12
Organization structure .................................................................................................................................... 15
Organization culture ....................................................................................................................................... 16
Business Process .............................................................................................................................................. 17
Business Process Reengineering (BPR) ............................................................................................................ 18
Information Flow Modeling............................................................................................................................. 19
Information Technology (IT) ......................................................................................................................... 20
Data, Information and Knowledge .................................................................................................................. 20
Information Technology (IT) ............................................................................................................................ 20
Information Systems (IS) ................................................................................................................................. 21
Hardware & Software ..................................................................................................................................... 24
Networks & the Internet.................................................................................................................................. 25
Technology trends ........................................................................................................................................... 25
Adoption & use ................................................................................................................................................ 26
Work motivation ............................................................................................................................................. 28
Databases ....................................................................................................................................................... 30
Database Management Systems (DBMS) ....................................................................................................... 31
Database design .............................................................................................................................................. 32
Virtual organizations ....................................................................................................................................... 33
eBusiness & eCommerce ................................................................................................................................. 35
Social media .................................................................................................................................................... 36
Social media & Internal communications ........................................................................................................ 37
Implementation ............................................................................................................................................... 38
1
,Innovation
1: Introduction
Invention vs. Innovation vs. Creativity
Invention → creation of a ‘thing’ or ‘ability’ for the first time. Something new but doesn’t yet
impact the world. Inventions never reach the stage of market entry. (Think of Google Glass)
Innovation → the process of implementing an invention to create impact and add enough value
to enter the market.
• SO, invention + impact = innovation. (Think of Klarna, Go Sharing scooters, Office 365)
• Innovations mostly build upon other innovations. (Think of iPhone -> iPad -> Apple Watch)
• Applies the 1000 – 100 – 10 rule = 1000 ideas, 100 feasible ideas, 10 concepts, 1 product
• There are different sources of innovation:
o Accidents and the unexpected (Penicillin an,0,d Post it Notes)
o Internal pressures, such as knowledge push (encouragement of staff to be creative)
o External pressures, such as market pulls (co-creation at IKEA)
An invention creates SOMETHING NEW.
An innovation creates something new, THAT SELLS
Creativity → the ability to combine ideas to produce something new (invention) and useful
(innovation, only when the idea is applied).
• Creativity contains of six resources:
1. Intellectual abilities - ability to see problems in new ways
2. Knowledge - knowing enough about the field
3. Style of thinking - thinking globally as well as locally
4. Personality - willingness to overcome obstacles and take risks
5. Motivation - intrinsic, task-focused motivation and commitment
6. Environment - providing a place where ideas can be encourages
Effects of innovations to an organization
DOPPER CASE
Imagine that Dopper goes from only basic in bulk --- to ---> customization in colors and text with a 1-
day delivery service.
• Sales process --> front-end order process.
o Change in social media interaction with customers, websites have to show the 1-day
delivery option and enable customers to customize their Dopper
• Change in IS --> location of information for ordering and shipment
o Change in machines that can make prints on Doppers, and in production chain (from
bulk to custom-made)
• Change in the organization itself --> organizational change
o New creative team consisting of designers for customization, new marketing team to
• Change in IT --> need for information technologies
o Use an more advances system for Customer Service to further develop existing
products with output from customers
2
, 2: Innovation Typologies, Innovation Management & Open Innovation
Innovation processes models
The i5 Process → process of innovation consists of 5 stages
1. Identification - identify problems/needs/possibilities
2. Investigation - seek understanding from the big picture
3. Ideation - generate/strengthen/elaborate ideas
4. Impact - evaluate/prioritize ideas based on impact
5. Implementation - creating/testing/delivering on a plan
Smith’s innovation process → process of innovation consists of 3 phases. Enough
money must be spent on all three to keep them balanced.
1. Exploration: explore the invention in the creative phase via trigger events (creativity,
scientific discovery, technological breakthrough, market competitors, society)
or via idea triggers (scientists, open innovation)
2. Exploitation: add enough value to the invention, so it sells. Innovation capabilities are
affected by the organization’s characteristics. New products must match market requirements
and customer needs
3. Diffusion: spread innovation throughout the market so that customers adopt the product.
Captioning market shares
Innovation types
1. Product and service innovation → change in feature of product or service
Product innovation: tangible item, intended to enhance customer’s experience
o Including a music player in a phone
o New version of the iPhone
Service innovation: intangible service with new concepts in technology
o New delivery system for groceries by Picnic
o New Apple Music
2. Process innovation → change in series of tasks, and changes the way process are done
o Self-service checkouts in MacDonald’s
o Dell waited for an order and then send the order to the manufacturer.
3. Business model innovation → changes in target market or customer base which is new for
everyone in the market
o Amazon started with selling books and now sells many other services and products
o Lucazade for people recovering from illness to healthy people who sport
4. Paradigm innovation → changes in what a company does which completely disrupts the
market. Most impact of all four innovation types, because this innovation combines all four
types of innovation into onto one
o Tesco: from selling groceries to selling clothing
o Uber: individual freelancers as taxi drivers
o Pathé Thuis: Business Model innovation (cinema people --> at home people),
Process innovation (series of tasks changed), Service innovation (new technology).
3
, Innovation typologies
Matrix typology (Abernathy & Clark, 1985)
Incremental → product/service innovation with only improvements/updates. Innovation builds
upon existing technology.
Dichotomous → disruptive/radical innovation, customers need new expertise to build new
routines to use the product/service.
Dichotomous Niche innovation Architectural innovation
market/customer
Professional structure | open culture Professional structure | open culture
New People are external-oriented People are innovative and flexible
Regular tablets to tablets for children Mechanic typewriter to electronic typewriter
Regular earphones to wireless Air Pods LP’s to DVD’s
Post letters to e-mail
Incremental Regular innovation Revolutionary innovation
market/customer
change Mechanic structure | internal culture Mechanic structure | internal culture
People don’t need much change People are process-oriented
Existing
Removal of Home Button on iPhone Smartphones to Tablets
Incremental technological change Dichotomous technological change
Existing New
4
Inhoudsopgave
Innovation .....................................................................................................................................................2
Invention vs. Innovation vs. Creativity............................................................................................................... 2
Effects of innovations to an organization ......................................................................................................... 2
Innovation processes models ............................................................................................................................ 3
Innovation types ................................................................................................................................................ 3
Innovation typologies ........................................................................................................................................ 4
Open Innovation, Closed Innovation & Crowdsourcing ..................................................................................... 5
Diffusion of Innovation models ......................................................................................................................... 6
Organization ..................................................................................................................................................9
Business model .................................................................................................................................................. 9
Business Model Canvas (BMC) .......................................................................................................................... 9
Business strategy............................................................................................................................................. 11
Strategic tools for analysis .............................................................................................................................. 12
Organization structure .................................................................................................................................... 15
Organization culture ....................................................................................................................................... 16
Business Process .............................................................................................................................................. 17
Business Process Reengineering (BPR) ............................................................................................................ 18
Information Flow Modeling............................................................................................................................. 19
Information Technology (IT) ......................................................................................................................... 20
Data, Information and Knowledge .................................................................................................................. 20
Information Technology (IT) ............................................................................................................................ 20
Information Systems (IS) ................................................................................................................................. 21
Hardware & Software ..................................................................................................................................... 24
Networks & the Internet.................................................................................................................................. 25
Technology trends ........................................................................................................................................... 25
Adoption & use ................................................................................................................................................ 26
Work motivation ............................................................................................................................................. 28
Databases ....................................................................................................................................................... 30
Database Management Systems (DBMS) ....................................................................................................... 31
Database design .............................................................................................................................................. 32
Virtual organizations ....................................................................................................................................... 33
eBusiness & eCommerce ................................................................................................................................. 35
Social media .................................................................................................................................................... 36
Social media & Internal communications ........................................................................................................ 37
Implementation ............................................................................................................................................... 38
1
,Innovation
1: Introduction
Invention vs. Innovation vs. Creativity
Invention → creation of a ‘thing’ or ‘ability’ for the first time. Something new but doesn’t yet
impact the world. Inventions never reach the stage of market entry. (Think of Google Glass)
Innovation → the process of implementing an invention to create impact and add enough value
to enter the market.
• SO, invention + impact = innovation. (Think of Klarna, Go Sharing scooters, Office 365)
• Innovations mostly build upon other innovations. (Think of iPhone -> iPad -> Apple Watch)
• Applies the 1000 – 100 – 10 rule = 1000 ideas, 100 feasible ideas, 10 concepts, 1 product
• There are different sources of innovation:
o Accidents and the unexpected (Penicillin an,0,d Post it Notes)
o Internal pressures, such as knowledge push (encouragement of staff to be creative)
o External pressures, such as market pulls (co-creation at IKEA)
An invention creates SOMETHING NEW.
An innovation creates something new, THAT SELLS
Creativity → the ability to combine ideas to produce something new (invention) and useful
(innovation, only when the idea is applied).
• Creativity contains of six resources:
1. Intellectual abilities - ability to see problems in new ways
2. Knowledge - knowing enough about the field
3. Style of thinking - thinking globally as well as locally
4. Personality - willingness to overcome obstacles and take risks
5. Motivation - intrinsic, task-focused motivation and commitment
6. Environment - providing a place where ideas can be encourages
Effects of innovations to an organization
DOPPER CASE
Imagine that Dopper goes from only basic in bulk --- to ---> customization in colors and text with a 1-
day delivery service.
• Sales process --> front-end order process.
o Change in social media interaction with customers, websites have to show the 1-day
delivery option and enable customers to customize their Dopper
• Change in IS --> location of information for ordering and shipment
o Change in machines that can make prints on Doppers, and in production chain (from
bulk to custom-made)
• Change in the organization itself --> organizational change
o New creative team consisting of designers for customization, new marketing team to
• Change in IT --> need for information technologies
o Use an more advances system for Customer Service to further develop existing
products with output from customers
2
, 2: Innovation Typologies, Innovation Management & Open Innovation
Innovation processes models
The i5 Process → process of innovation consists of 5 stages
1. Identification - identify problems/needs/possibilities
2. Investigation - seek understanding from the big picture
3. Ideation - generate/strengthen/elaborate ideas
4. Impact - evaluate/prioritize ideas based on impact
5. Implementation - creating/testing/delivering on a plan
Smith’s innovation process → process of innovation consists of 3 phases. Enough
money must be spent on all three to keep them balanced.
1. Exploration: explore the invention in the creative phase via trigger events (creativity,
scientific discovery, technological breakthrough, market competitors, society)
or via idea triggers (scientists, open innovation)
2. Exploitation: add enough value to the invention, so it sells. Innovation capabilities are
affected by the organization’s characteristics. New products must match market requirements
and customer needs
3. Diffusion: spread innovation throughout the market so that customers adopt the product.
Captioning market shares
Innovation types
1. Product and service innovation → change in feature of product or service
Product innovation: tangible item, intended to enhance customer’s experience
o Including a music player in a phone
o New version of the iPhone
Service innovation: intangible service with new concepts in technology
o New delivery system for groceries by Picnic
o New Apple Music
2. Process innovation → change in series of tasks, and changes the way process are done
o Self-service checkouts in MacDonald’s
o Dell waited for an order and then send the order to the manufacturer.
3. Business model innovation → changes in target market or customer base which is new for
everyone in the market
o Amazon started with selling books and now sells many other services and products
o Lucazade for people recovering from illness to healthy people who sport
4. Paradigm innovation → changes in what a company does which completely disrupts the
market. Most impact of all four innovation types, because this innovation combines all four
types of innovation into onto one
o Tesco: from selling groceries to selling clothing
o Uber: individual freelancers as taxi drivers
o Pathé Thuis: Business Model innovation (cinema people --> at home people),
Process innovation (series of tasks changed), Service innovation (new technology).
3
, Innovation typologies
Matrix typology (Abernathy & Clark, 1985)
Incremental → product/service innovation with only improvements/updates. Innovation builds
upon existing technology.
Dichotomous → disruptive/radical innovation, customers need new expertise to build new
routines to use the product/service.
Dichotomous Niche innovation Architectural innovation
market/customer
Professional structure | open culture Professional structure | open culture
New People are external-oriented People are innovative and flexible
Regular tablets to tablets for children Mechanic typewriter to electronic typewriter
Regular earphones to wireless Air Pods LP’s to DVD’s
Post letters to e-mail
Incremental Regular innovation Revolutionary innovation
market/customer
change Mechanic structure | internal culture Mechanic structure | internal culture
People don’t need much change People are process-oriented
Existing
Removal of Home Button on iPhone Smartphones to Tablets
Incremental technological change Dichotomous technological change
Existing New
4
