Is there a generic innovation process?

Tidd, Bessant and Pavitt (2001) argue that if you look closely enough, there is a generic pattern of stages in the innovation process. Similarly, Christensen and Raynor (2003) maintain that, "Though the outcomes of successful innovations appear random, the processes that result in their success often are not."

Tidd, Bessant and Pavitt add that the pattern of stages needs to be modified according to different contexts. So what are the different contexts? And how do these affect what firms do as they manage this process?

+ Sector

Different sectors have different priorities and characteristics. For example, scale intensive or science intensive. Does R&D need to be close to, or in, the intended country-market? Can R&D be carried out far away from intended country-markets? Does R&D need to be linked to universities? Is the emphasis on science-based innovation or business/management innovation?

+ Size

Small firms don't have access to the same resources as large firms. May need more linkages.

+ National System of Innovation

Innovation in firms occurs in a broader national context that may or not be supportive to innovation. For example, financial markets, government policies, tax breaks to promote innovation, national culture etc.

+ Industry Life Cycle

Different stages of industry life cycle emphasize different aspects of innovation. For example, is the industry in a pre- or post-dominant design stage? Is the emphasis on product innovation, process innovation, channel innovation? (Channel innovation is one that is often overlooked.)

+ Degree of Novelty

Is the innovation incremental (more of the same/sustaining) or disruptive? This one is a particularly important consideration since you cannot manage incremental innovations in the same way as you manage disruptive innovations. An ability in one area is -- at the same time -- a disability in another.








innovation management in Asia

The role of universities in innovation

I just came across this interesting article on the BBC Web site about the role of universities in the commercialization of ideas. Should universities attempt to commercialize ideas from the lab, or should they focus more on attracting and developing students, who will later commercialize ideas in the real world? Probably a bit of both. The article was written by Peter Day, host of the In Business show.

There is a "Listen Again" link on In Business, which allows you to listen to streaming audio (Real Player only) of archived shows. The show on the following link, which is not the most current show, is about British entrepreneurs -- worth a listen.

Besides offering an archive of business shows (many on innovation), the BBC also allows current In Business shows to be downloaded as a podcast/MP3 file.











innovation management in Asia

Innovation activities and outcomes

It's very difficult to present a universal list of activities that occur during the innovation process. The following, which draws heavily from Tidd, Bessant and Pavitt's (2001) Managing Innovation and Mike Robert's (1997) Product Innovation Strategy, Pure and Simple, is a start:

ACTIVITIES IN THE INNOVATION PROCESS

+ Search/Scan
+ Select
+ Resource
+ Implement
+ Reflect

And what are the tangible outcomes of these activities?

Search/Scan Outcomes:
+ A body of ideas for products, processes, business models etc. (Without judgment.)

Select Outcomes:
+ A ranked list based on firm's innovation strategy. Followed by increasingly detailed risk-reward assessment: Floodlight to spotlight to microscope.

Resource Outcomes:
+ Funds. Support. Commitment. Time. People. Champions. Energy. Capabilities. Technology.

Implementation Outcomes:
+ An implementation plan. A list of players in the market (and their relative influence), along with critical success factors. Specific actions: by whom? when?

Reflect Outcomes:
+ A list of lessons learned.

You can see here that there still needs to be a formal innovation strategy against which all the numerous "good" ideas can be screened. The formal innovation strategy also cuts down the number of arguments that can occur during these activities.

The key here is being able to balance the rigidity that this list demands and being able to respond to any unexpected developments. Also, this list of activities is probably better suited to firms pursuing incremental, sustaining innovation strategies.




innovation management in Asia

Presenting ideas

Innovation: "The profitable implementation of ideas."

There are a lot of ideas out there. The manner in which these ideas are presented to individuals can influence where they end up: Are they taken on board and implemented? Or ignored and thrown in the trash?

Ideas often come from customers themselves. Yesterday I was in this great health store here in Taipei and I tried one of their vegetarian lunches for the first time. The food was basically some organic rice, raw vegetables, herbs etc. All covered in a tangy tomato sauce. It was awesome.

Prior to yesterday, I didn't even know that this little store did lunches. This was partly because the store only has two tables: it doesn't look like a restaurant. Of course there was a menu on the wall, but it was in Chinese, which I can't read. That poster could have been anything.

So my idea was to tell the owner that he could take some photos of the meals, which would make it easier for the many foreigners to choose one of these delicious, healthy lunches. But would this guy listen to my idea and do anything with it? Will his ego get in the way?

I had to sell him the idea. Here were a couple of choices I had:

1. Say to him: "You know, you should put photos of the food on the wall. I can't read Chinese."

2. Or: "There is this other restaurant near here that gets a lot of lunch-time visitors because the foreigners and tourists like the fact that there are photos of the meals on the wall. It's packed."

You can pretty much be sure that option 2 has more chance of being taken on board by this guy because a) it didn't insult his intelligence/hurt his ego and b) it appealed to his emotions -- the other restaurant is making a killing and I want a piece of the action!






innovation management in Asia