Innovation Management in Healthcare 6-9-2021 (IQM)
Different phases of innovation (‘the development funnel’):
1. Idea generation
-Input of ideas for new products, services or processes
-Some are directly filtered out/others are further developed
2. Choice of the best ideas (selecting)
-Promising ideas are selected and developed into concepts
-Potential market will be explored
-Best design is considered
-Assessment of investment needed and potential returns
3. Implementation
-Management decides which new products, services, processes, business models or any
combination of these will be developed
Unsuccessful implementation projects are terminated
4. Market
-Based on successful implementation projects, innovations are brought to the market
Involved functions of an organisation during an innovation: all functions/departments should
actively contribute to innovation. So not only the Research and Development (R&D) but also for
example:
Industrial design: focus on form and function
Marketing: identifies customer needs
Sales: develop new markets
Operations: optimizing production processes
Finance and accounting: calculating return on investment
Human Resource Management: support a culture of innovation
Senior Management: breaking down functional barriers (higher budget for innovation)
Outside resources: essential for open innovation
Innovations can be managed: innovation is not something that happens by accident or coincidence.
It can be planned and structured
Decide how much innovation is needed
Set an appropriate ratio of radical versus incremental innovation
Select areas in which you want to compete
Select an appropriate innovation strategy
Establish an foster an innovation culture in your organisation (encourage the right behaviour
and give people ownership of their innovation efforts)
Measure your performance (success) in innovation
Innovation management theory/approaches (8 trends):
1. Stage-Gate: defines different stages of new product development and the responsibilities of
different departments at these stages (Barlow 2017 addresses this in more detail)
2. Voice of the customer: this covers many different ways for identifying customer needs
3. Portfolio management: the processes that organizations use to select ideas
4. Diffusion of Innovation: factors that influence market uptake of an innovation, such as
characteristics of the (potential) adopters)
1
, 5. Culture of innovation: setting the right atmosphere in which innovation can flourish
6. Disruptive technology: every technology reaches its natural limits and its inevitable that
another technology will, at some stage overtake it and changes the market
7. Business model innovation: how a company can create value for their customers and
capture value in ways that lock out competitors.
8. Open innovation: companies looking beyond their own organisation for ideas.
The discipline of innovation managements remains relatively new so it is hard to chose an certain
theory or approach. Moreover different ones emerge and become popular. ‘Good innovation
management requires a combination of approaches rather than just the latest idea’.
1.The innovation Pentathlon (means 5) Framework: Goffin & Mithcell (2017) integrated different
insights and approaches into a framework consisting of 5 elements:
The 3 aspects of the previously discusses ‘development funnel’
-Idea generation
-Selection
-Implementation
Combined with 2 additional elements
-Innovation strategy:
Set clear goals for innovation
Have leadership
Establish a common language with regard to innovation
Assess the potential role of technology in innovation and the expertise needed
Measure innovation performance
-People, culture and organization
Manage the human resources and create effective organizational structures
Create a culture of innovation
Maintain effective reward and recognition programmes
Appraise employees by looking at performance vs the agreed (innovation) goals
2. Stage-gate model (by Robert Coopers): a innovation management theory with a structured
decision making process which is aimed at managing the progress of technology projects from the
first idea to commercialization.
-It involves clear decision criteria (gates) on which to base decisions to proceed or abandon a
projects
-Decisions are made according to technical, financial or marketing criteria
Basic stages of the stage-gate model:
Concept generation: identifying the opportunities for new products and services
Project assessment and selection: screening and choosing options which satisfy criteria
Development: translation concepts/options into a product and testing the winning ideas
Commercialization: launching and marketing the new product
However, in practice product development is not as simple as implied by this and other models. In
reality it is often far more messier and iterative.
3.Innovation Rocket (Nichols, 2007):
2
Different phases of innovation (‘the development funnel’):
1. Idea generation
-Input of ideas for new products, services or processes
-Some are directly filtered out/others are further developed
2. Choice of the best ideas (selecting)
-Promising ideas are selected and developed into concepts
-Potential market will be explored
-Best design is considered
-Assessment of investment needed and potential returns
3. Implementation
-Management decides which new products, services, processes, business models or any
combination of these will be developed
Unsuccessful implementation projects are terminated
4. Market
-Based on successful implementation projects, innovations are brought to the market
Involved functions of an organisation during an innovation: all functions/departments should
actively contribute to innovation. So not only the Research and Development (R&D) but also for
example:
Industrial design: focus on form and function
Marketing: identifies customer needs
Sales: develop new markets
Operations: optimizing production processes
Finance and accounting: calculating return on investment
Human Resource Management: support a culture of innovation
Senior Management: breaking down functional barriers (higher budget for innovation)
Outside resources: essential for open innovation
Innovations can be managed: innovation is not something that happens by accident or coincidence.
It can be planned and structured
Decide how much innovation is needed
Set an appropriate ratio of radical versus incremental innovation
Select areas in which you want to compete
Select an appropriate innovation strategy
Establish an foster an innovation culture in your organisation (encourage the right behaviour
and give people ownership of their innovation efforts)
Measure your performance (success) in innovation
Innovation management theory/approaches (8 trends):
1. Stage-Gate: defines different stages of new product development and the responsibilities of
different departments at these stages (Barlow 2017 addresses this in more detail)
2. Voice of the customer: this covers many different ways for identifying customer needs
3. Portfolio management: the processes that organizations use to select ideas
4. Diffusion of Innovation: factors that influence market uptake of an innovation, such as
characteristics of the (potential) adopters)
1
, 5. Culture of innovation: setting the right atmosphere in which innovation can flourish
6. Disruptive technology: every technology reaches its natural limits and its inevitable that
another technology will, at some stage overtake it and changes the market
7. Business model innovation: how a company can create value for their customers and
capture value in ways that lock out competitors.
8. Open innovation: companies looking beyond their own organisation for ideas.
The discipline of innovation managements remains relatively new so it is hard to chose an certain
theory or approach. Moreover different ones emerge and become popular. ‘Good innovation
management requires a combination of approaches rather than just the latest idea’.
1.The innovation Pentathlon (means 5) Framework: Goffin & Mithcell (2017) integrated different
insights and approaches into a framework consisting of 5 elements:
The 3 aspects of the previously discusses ‘development funnel’
-Idea generation
-Selection
-Implementation
Combined with 2 additional elements
-Innovation strategy:
Set clear goals for innovation
Have leadership
Establish a common language with regard to innovation
Assess the potential role of technology in innovation and the expertise needed
Measure innovation performance
-People, culture and organization
Manage the human resources and create effective organizational structures
Create a culture of innovation
Maintain effective reward and recognition programmes
Appraise employees by looking at performance vs the agreed (innovation) goals
2. Stage-gate model (by Robert Coopers): a innovation management theory with a structured
decision making process which is aimed at managing the progress of technology projects from the
first idea to commercialization.
-It involves clear decision criteria (gates) on which to base decisions to proceed or abandon a
projects
-Decisions are made according to technical, financial or marketing criteria
Basic stages of the stage-gate model:
Concept generation: identifying the opportunities for new products and services
Project assessment and selection: screening and choosing options which satisfy criteria
Development: translation concepts/options into a product and testing the winning ideas
Commercialization: launching and marketing the new product
However, in practice product development is not as simple as implied by this and other models. In
reality it is often far more messier and iterative.
3.Innovation Rocket (Nichols, 2007):
2
