Lecture 1 – Introduction Business, Technology & Innovation
Innovation, technology, organizations
- Innovation often spurred by technology
- Innovation and technology affect by organizations
- Organizations affect efficient and effective use of technology
- Organizations affect innovations
- Innovations may completely change the way organizations function
- When thinking of new technology or other innovations, you should always take the
characteristics of the organization into account
Defining innovation
Difference invention and innovation?
- Invention = the creation of a ‘thing’ or ‘ability’ for the first time
- Innovation = using that thing/ability to create impact
o Invention + market entry via user diffusion/adoption
Using an invention to create value through economic/societal impact by changing
behaviours, interactions, processes, … = iterative in nature
- Innovation (OECD, 2006) = The implementation of a new or significantly improved product
(good or service), or process, new marketing method, or a new organization method in
business practices, workplace organization or external relations.
- Innovation (Boddy, 2017) = The process of applying or implementing something new and
useful.
- Innovations may completely change the way organizations function
- When thinking of new technology or other innovations, you should always take the
characteristics of the organization into account
,Lecture 2 – Innovation Typologies, Innovation Management & Open Innovation (6/9/21)
Defining innovation
- Invention = the creation of a thing or ability for the first time
- Innovation = using that thing/ability to create impact
o Market entry; diffusion process
o Value creation by changing behaviors, interactions, proceses, etc .
o Iterative in nature
- “Invention creates something new, innovation creates something that sells.”
Innovation process
- Exploration:
o Trigger events (idea generation/creativity, scientific discovery, tech breakthrough,
market/competitors, society)
o Idea triggers (lone ranger, R&D, open innovation)
o Innovation as an organizational process
▪ We often associate innovation with creative individuals
▪ We consider creativity to be an amalgamation of intellectual abilities,
knowledge, personality, etc.
▪ Innovation is more often a group process
• Within departments (R&D), across departments, or even outside the
organization
• Innovation is a combination of organizational affordances: human
capital, knowledge management, strategy, culture, structure, etc.
▪ An organization’s characteristics affect innovation capabilities
Innovation: ideas, objects, practices
- Process of innovation in the organization: idea → object → practice
- Innovation funnel: process from ideation to practice
o From many ideas to ultimately few innovations in practice
Types of innovation (4 p’s)
- Product/service innovation (example: supermarket delivery)
- Process innovation
- Position ( = business model innovation)
- Paradigm innovation ( = strategy)
Innovation Typologies
Dichotomous typologies
- Disruptive or radical innovation
o Start of a new product/processs/idea lifecycle
o At early stage of diffusion and adoption
- Incremental innovation
o Advanced stages of the product life style
o Dominant design
, o Often times occur during the diffusion process in the form of continual
improvements and upgrades (Iphone’s)
Innovation Management
Interplay between innovations, IT & organizations
→Innovations are often technological innovations that affect how organizations organize themselves
, Organization factors that affect innovation
- Cultural
o Respect for creativity and change
o Innovation – seen as essential to survive
o Exchange and debate – part of job
o Physical arrangements – help direct contact
- Structural
o Organic structure
o Availability of resources
o System to support innovation
o Roles clarify expectations
- HRM
o Recruitment and selection – priority to creative people
o Job security – removes defensiveness
o Development opportunities – aware of current science
o Incentives and rewards – value innovation
Open innovation & crowdsourcing
- Innovation funnel = The proces from ideation to participate
- Traditional vs. open innovation
o The closed innovation model: a company generates, develops and commercializes its
own ideas. This philosophy of self-reliance dominated the R&D operations of many
leading industrial corporations for most of the 20th century.
o The open innovation model: a company commercializes both its own ideas as well as
innovations from other firms and seeks ways to bring its in-house ideas to market by
deploying pathways outside its current business.
- Crowdsourcing:
o Simply defined, crowdsourcing represents the act of a company or institution taking
a function once performed by employees and outsourcing it to an undefined (and
generally large) network of people in the form of an open call. This can take the form
of peer-production (when the job is performed collaboratively), but is also often
undertaken by sole individuals. The crucial prerequisite is the use of the open call
format and the large network of potential laborers.” (Howe, 2006)
o “Crowdsourcing is an online, distributed problem-solving and production model.”
(Brabham, 2008)
Innovation, technology, organizations
- Innovation often spurred by technology
- Innovation and technology affect by organizations
- Organizations affect efficient and effective use of technology
- Organizations affect innovations
- Innovations may completely change the way organizations function
- When thinking of new technology or other innovations, you should always take the
characteristics of the organization into account
Defining innovation
Difference invention and innovation?
- Invention = the creation of a ‘thing’ or ‘ability’ for the first time
- Innovation = using that thing/ability to create impact
o Invention + market entry via user diffusion/adoption
Using an invention to create value through economic/societal impact by changing
behaviours, interactions, processes, … = iterative in nature
- Innovation (OECD, 2006) = The implementation of a new or significantly improved product
(good or service), or process, new marketing method, or a new organization method in
business practices, workplace organization or external relations.
- Innovation (Boddy, 2017) = The process of applying or implementing something new and
useful.
- Innovations may completely change the way organizations function
- When thinking of new technology or other innovations, you should always take the
characteristics of the organization into account
,Lecture 2 – Innovation Typologies, Innovation Management & Open Innovation (6/9/21)
Defining innovation
- Invention = the creation of a thing or ability for the first time
- Innovation = using that thing/ability to create impact
o Market entry; diffusion process
o Value creation by changing behaviors, interactions, proceses, etc .
o Iterative in nature
- “Invention creates something new, innovation creates something that sells.”
Innovation process
- Exploration:
o Trigger events (idea generation/creativity, scientific discovery, tech breakthrough,
market/competitors, society)
o Idea triggers (lone ranger, R&D, open innovation)
o Innovation as an organizational process
▪ We often associate innovation with creative individuals
▪ We consider creativity to be an amalgamation of intellectual abilities,
knowledge, personality, etc.
▪ Innovation is more often a group process
• Within departments (R&D), across departments, or even outside the
organization
• Innovation is a combination of organizational affordances: human
capital, knowledge management, strategy, culture, structure, etc.
▪ An organization’s characteristics affect innovation capabilities
Innovation: ideas, objects, practices
- Process of innovation in the organization: idea → object → practice
- Innovation funnel: process from ideation to practice
o From many ideas to ultimately few innovations in practice
Types of innovation (4 p’s)
- Product/service innovation (example: supermarket delivery)
- Process innovation
- Position ( = business model innovation)
- Paradigm innovation ( = strategy)
Innovation Typologies
Dichotomous typologies
- Disruptive or radical innovation
o Start of a new product/processs/idea lifecycle
o At early stage of diffusion and adoption
- Incremental innovation
o Advanced stages of the product life style
o Dominant design
, o Often times occur during the diffusion process in the form of continual
improvements and upgrades (Iphone’s)
Innovation Management
Interplay between innovations, IT & organizations
→Innovations are often technological innovations that affect how organizations organize themselves
, Organization factors that affect innovation
- Cultural
o Respect for creativity and change
o Innovation – seen as essential to survive
o Exchange and debate – part of job
o Physical arrangements – help direct contact
- Structural
o Organic structure
o Availability of resources
o System to support innovation
o Roles clarify expectations
- HRM
o Recruitment and selection – priority to creative people
o Job security – removes defensiveness
o Development opportunities – aware of current science
o Incentives and rewards – value innovation
Open innovation & crowdsourcing
- Innovation funnel = The proces from ideation to participate
- Traditional vs. open innovation
o The closed innovation model: a company generates, develops and commercializes its
own ideas. This philosophy of self-reliance dominated the R&D operations of many
leading industrial corporations for most of the 20th century.
o The open innovation model: a company commercializes both its own ideas as well as
innovations from other firms and seeks ways to bring its in-house ideas to market by
deploying pathways outside its current business.
- Crowdsourcing:
o Simply defined, crowdsourcing represents the act of a company or institution taking
a function once performed by employees and outsourcing it to an undefined (and
generally large) network of people in the form of an open call. This can take the form
of peer-production (when the job is performed collaboratively), but is also often
undertaken by sole individuals. The crucial prerequisite is the use of the open call
format and the large network of potential laborers.” (Howe, 2006)
o “Crowdsourcing is an online, distributed problem-solving and production model.”
(Brabham, 2008)
