Lecture Four Flashcards
(34 cards)
what are the generations of innovation and their emergence? Rothwell (1994)
first generation: technology push model (early 50s- mid 60s)
second generation: market pull model (mid 60s - early 70s)
third generation: coupling model (early 70s - early 80s)
fourth generation: integrated, parallel model (early 80s - mid 90s)
fifth generation: integrated, networked model (late 1990s)
what was innovation like before 1900s?
organised innovation was rare before 1900s.
innovation was a slow process.
Individual innovators ‘believed to’ dominate the course of technological progress e.g. Alexander Graham Bell, John Logie Baird
what is the technology push model?
scientists make unexpected discoveries (basic science)
technologists apply them to develop product ideas (design and engineering)
engineers and designers turn them into prototypes for testing (design and engineering)
manufacturing figures out how to produce them (manufacturing)
marketing and sales to customers (sales)
what are weaknesses of the technology push model?
The assumptions are clearly crude and
simplistic
The technology push approach essentially
ignores the role of market demands
The success and dominance of an innovative product/design/process cannot be known in advance or assumed because it is the output of an inventive process
what are assumptions of the technology push model?
Stepwise progression from scientific discovery through applied research to technological development and production activities leading to a stream of new products into the market place.
Assumes that the market place is a ‘sink for
receiving the fruits of R&D
Assumes that ‘more R&D in’ equals ‘more
innovation out’
summarise features of the market pull model
Focuses on further developing existing technologies, rather than developing new products
Changes in corporate culture and more intense competition
Greater awareness of the role of the marketplace in innovation
R&D becomes reactive.
what is the market pull model
Assessment of market needs (market-need)
R&D and technologists develop product/service to satisfy demand (development)
Manufacturing produces them (manufacturing)
Selling to customers (sales)
what are assumptions of the market pull model
Stepwise progression from identifying and
assessing a market need, to developing a
concept product/service to satisfy the
demand, to production activities leading to a stream of new products that satisfy a market place
Assumes that innovations arise as a result of perceived and sometimes clearly articulated customer needs
Marketplace is a source of ideas for directing R&D and R&D departments are largely reactive
what are weaknesses of the market push model
simplistic assumptions
Ignores the impact and demand that can be
stimulated by emergence of new technology
As with previous model, oversimplified,
extreme and atypical of a process that links
science, technology and organizations and the market-place
summarise features of the coupling model
Resulted from high rates of inflation, demand saturation, growing structural unemployment;
Focus on cost control and reduction, and minimising wasteful failure;
Model a result of purposeful studies aimed at identifying a successful innovation process
what is the coupling model
Studies indicated that both technology-push and market-pull models were extreme and atypical;
Better process involved interaction between Technological capabilities and Market needs
Coupling model is an interactive model which is logically sequential, though not necessarily continuous; involves feedback loops.
It can be divided in a series of functionally distinctive but interacting and interdependent stages;
Complex net of communication paths, both within and outside the organization;
Innovation process:
Links various in-house functions together and Links firm to broader scientific/technological community and marketplace
Success or failure is rarely explained by one or two specific factors.
Success stems from doing most tasks competently and in a
balanced and well-coordinated way.
Key to this are high-quality and capable key individuals
what are assumptions of the coupling model
The innovation process is logical but not
necessarily continuous
The innovation process can be divided into a series of functionally distinct but interacting and interdependent stages
The innovation process can be thought of as a complex net of communication paths both
intra-organisational and extra organisational
The innovation process is reliant on the linking of in-house functions and linking them to the broader technological and scientific communities and to the market place.
what are weaknesses of the coupling model
Although the coupling approach contains
feedback loops it is essentially a sequential
model with limited functional integration
Research during mid 1980s highlighted that
innovation is better viewed as a parallel
integrated process
what is the integrated model
Arose during a Period of economic recovery (mid 80s - early 90s)
Shortening product life-cycles led to focus on time-based strategies, integration and parallel development.
Rapid growth in number of strategic alliances between companies.
Foundations in studies of Japanese automobile and electronics sectors → were able to innovate more rapidly and
efficiently than Western counterparts.
Integration + parallel development → Integration of external (e.g. suppliers) and internal (functions) activities, which work
on the project simultaneously.
Result of the interaction of the marketplace, science-base and organisation’s capabilities.
Overcomes limitations of Coupling Model by capturing functional overlap during innovation
what are assumptions of the integrated model
The innovation process consists of parallel
activity across organisational functions
The innovation process must build upon
parallel activities to include a high level of
functional integration during concurrent
activity
The innovation process can be managed from the initial concept of a new
product/service/process through to its launch by joint group meetings between engineers and managers
what are weaknesses of the integrated model
Doesn’t fully recognise the activities that arise due to external pressures or serendipity
what is the systems integration and networking model
The pressure to yield faster and more efficient product development processes in the 1990s has led to an increase in:
- Firms strive for better integrated product and manufacturing strategies;
- Aims for greater flexibility and adaptability, greater speed of innovation, and cost
reduction. - horizontal strategic alliances and collaborative R&D consortia
- strategic vertical relationships, especially at the supplier interface
- innovative SMEs forging external relationships with both large and small firms
- greater emphasis on the development of cross-functional and parallel integration within firms to gain greater potential from higher real-time information processing
what are assumptions of the systems integration and networking model
Greater overall organisational and systems
integration
Flatter, more flexible organisational
structures for rapid and effective decision
making
Fully developed internal databases
Effective external links
what are weaknesses of the systems integration and networking model
High entry costs – new equipment and training
High learning costs at firm level and across the whole system
definitions of open innovation - academic reference
Firms increasingly rely on external knowledge and expertise as a source of new
technologies and as an alternative means to commercialise their own
discoveries – this is “Open Innovation” (Chesbrough, 2003)
“the use of purposive inflows and outflows
of knowledge to accelerate internal innovation and expand
the markets for external use of innovation” (Chesbrough, 2006)
ADD ANOTHER ONE?
what is open innovation?
Open Innovation is a model where firms use external and internal ideas to accelerate innovation. It involves collaborating with external partners (e.g., universities, startups, customers) to share knowledge, reduce costs, and bring products to market faster
innovation becomes a collective endeavor
– a type of collective problem solving in
response to a market need or opportunity
The innovation funnel becomes porous!
Goffin and Mitchell (2017)
what is closed innovation?
Closed Innovation is a model where firms develop new ideas internally, relying solely on their own R&D, resources, and expertise. Knowledge is kept confidential, and innovation happens within the company, without external collaboration. This approach aims to maintain control and competitive advantage, but it can be slower and more costly than open innovation.
what are open innovation principles
not all the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company.
external R&D can create significant value: internal R&D is needed to claim some portion of that value.
we dont have to originate the research to profit from it.
building a better busines smodel is better than getting to the market first.
if we make the best use of internal and external ideas, we will win
we should profit from others use of our IP (intelectual property) , and we should buy others IP whenever it advances our business model.
Firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their innovations
what are closed innovation principles
the smart people in the field work for us
to profit from R&D =, we must disocver it, develop it, and ship it ourselves
if we discover it ourselves, we will get it to the market first
the company that gets an innovation to the market first will win
if we create the most and the best ideas in the industry, we will win.
we should control our intellectual property so that our competitiors dont profit from our ideas.
