0% found this document useful (0 votes)
55 views31 pages

Introduction To Innovation

The document discusses the significance of innovation in business, emphasizing that companies must adapt and evolve to survive in competitive markets. It outlines the distinction between innovation and invention, highlighting that innovation involves the commercial application of ideas and the management of various processes. Various models of innovation, including linear, market-pull, and interactive models, are presented, along with the concept of disruptive innovation that can significantly alter industries.

Uploaded by

arudianindura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
55 views31 pages

Introduction To Innovation

The document discusses the significance of innovation in business, emphasizing that companies must adapt and evolve to survive in competitive markets. It outlines the distinction between innovation and invention, highlighting that innovation involves the commercial application of ideas and the management of various processes. Various models of innovation, including linear, market-pull, and interactive models, are presented, along with the concept of disruptive innovation that can significantly alter industries.

Uploaded by

arudianindura
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MANAJEMEN INOVASI DAN

HAK KEKAYAAN INTELEKTUAL

SKI4102

1. Introduction to Innovation

Dr.Eng. Leny Yuliati, S.Si., M.Eng.


MRCPP 04-01

[email protected]
THE IMPORTANCE OF INNOVATION (1)

Corporations must be able to adapt and evolve if they wish to


survive. Businesses operate with the knowledge that their
competitors will, inevitably, come to the market with a product
that changes the basis of competition. The ability to change
and adapt is essential to survival.

The share price is not something we control. We control


innovation, sales and profits.
(Rushe and Waples, 2008)

‘. . . not to innovate is to die’, wrote Christopher Freeman (1982)


in his famous study of the economics of innovation. Certainly,
companies that have established themselves as technical and
market leaders have shown an ability to develop successful
new products.
THE IMPORTANCE OF INNOVATION (2)
THE IMPORTANCE OF INNOVATION (3)
A brief analysis of economic history will show that industrial
technological innovation has led to substantial economic
benefits for the innovating company and the innovating country.
Indeed, the industrial revolution of the nineteenth century was
fuelled by technological innovations. Technological innovations
have also been an important component in the progress of
human societies.
STUDY OF INNOVATION (1)

There was a need to understand how science and


technology affected the economic system. A series of
studies of innovation were undertaken in the 1950s, which
concentrated on the internal characteristics of the innovation
process within the economy. A feature of these studies was
that they adopted a cross-discipline approach, incorporating
economics, organisational behaviour and business and
management.

The studies looked at:


● the generation of new knowledge;
● the application of this knowledge in the development of
products and processes;
● the commercial exploitation of these products and
services in terms of financial income generation.
STUDY OF INNOVATION (2)

Overview of the innovation process


INNOVATION VS INVENTION (1)

Innovation itself is a very broad concept that can be understood


in a variety of ways. One of the more comprehensive definitions
is offered by Myers and Marquis (1969):
Innovation is not a single action but a total process of
interrelated sub processes. It is not just the conception of a new
idea, nor the invention of a new device, nor the development of
a new market. The process is all these things acting in an
integrated fashion.

It is important to clarify the use of the term ‘new’ in the context of


innovation. Rogers and Shoemaker (1972) do this eloquently:
It matters little, as far as human behaviour is concerned,
whether or not an idea is ‘objectively’ new as measured by the
lapse of time since its first use or discovery . . . If the idea seems
new and different to the individual, it is an innovation.
INNOVATION VS INVENTION (2)

Innovation is concerned with the commercial and practical


application of ideas or inventions. Invention, then, is the
conception of the idea, whereas innovation is the subsequent
translation of the invention into the economy.

The following simple equation helps to show the relationship


between the two terms:

Innovation = theoretical conception + technical invention +


commercial exploitation

Then, innovation depends on inventions, but inventions need to


be harnessed to commercial activities before they can contribute
to the growth of an organisation.
INNOVATION VS INVENTION (3)

Innovation is the management of all the activities involved


in the process of idea generation, technology
development, manufacturing and marketing of a new (or
improved) product or manufacturing process or
equipment.

This definition of innovation as a management process


also offers a distinction between an innovation and a
product, the latter being the output of innovation.

Creativity: the thinking of novel and appropriate ideas.


Innovation: the successful implementation of those ideas
within an organisation.
TYPE OF INNOVATION
MODEL OF INNOVATION (1)

Linear Model (1)

There is the technology-driven model (often referred to as


technology push) where it is assumed that scientists make
unexpected discoveries, technologists apply them to develop
product ideas and engineers and designers turn them into
prototypes for testing.
It is left to manufacturing to devise ways of producing the
products efficiently. Finally, marketing and sales will promote
the product to the potential consumer. In this model, the
marketplace was a passive recipient for the fruits of R&D.
MODEL OF INNOVATION (2)

Linear Model (2)

The market-pull model of innovation or the customer need-


driven model emphasises the role of marketing as an initiator of
new ideas resulting from close interactions with customers.
These, in turn, are conveyed to R&D for design and engineering
and then to manufacturing for production.

In fast-moving consumer goods industries the role of the market


and the customer remains powerful and very influential.
MODEL OF INNOVATION (3)
Simultaneous Coupling Model

The linear model is able to offer only an explanation of where


the initial stimulus for innovation was born, that is, where the
trigger for the idea or need was initiated. The simultaneous
coupling model shown suggests that it is the result of the
simultaneous coupling of the knowledge within all three
functions that will foster innovation. Furthermore, the point of
commencement for innovation is not known in advance.
MODEL OF INNOVATION (4)
Interactive Model

The interactive model links together the technology-push and


market-pull models. It emphasises that innovations occur as
the result of the interaction of the marketplace, the science base
and the organisation’s capabilities.
Like the coupling model, there is no explicit starting point. The
use of information flows is used to explain how innovations
transpire and that they can arise from a wide variety of points.
MODEL OF INNOVATION (5)

At the centre of the interactive model are the organisational


functions of R&D, engineering and design, manufacturing and
marketing and sales. Whilst, at first, this may appear to be a
linear model, the flow of communication is not necessarily
linear. There is provision for feedback. Also, linkages with the
science base and the marketplace occur between all
functions, not just with R&D or marketing.

For example, as often happens, it may be the manufacturing


function that initiates a design improvement that leads to the
introduction of either a different material or the eventual
development by R&D of a new material. Finally, the generation
of ideas is shown to be dependent on inputs from three basic
components: technological developments; the needs of the
marketplace; the science and technology base.
MODEL OF INNOVATION (6)

Open innovation and the need to share and exchange


knowledge (network models)

Innovation has been described as an information–creation


process that arises out of social interaction.

Chesbrough (2003), adopting a business strategy perspective,


presents a persuasive argument that the process of innovation
has shifted from one of closed systems, internal to the firm, to a
new mode of open systems involving a range of players
distributed up and down the supply chain. Significantly, it is
Chesbrough’s emphasis on the new knowledge-based economy
that informs the concept open innovation.
MODEL OF INNOVATION (7)

In particular, it is the use of cheap and instant information


flows that places even more emphasis on the linkages and
relationships of firms. It is from these linkages and the
supply chain in particular that firms have to ensure that they
have the capability to fully capture and utilise ideas.

For example, information and communication technologies


have changed the way individuals, groups and communities
interact. Mobile phones, email and websites are obvious
examples of how people interact and information flows in a
huge osmosis process through the boundaries of the firm.
When this is coupled with changes in manufacturing and
operations technologies, enabling rapid prototyping and
flexible manufacturing at low costs, the process of
innovation seems to be undergoing considerable change.
DISCONTINOUS INNOVATION (1)

Occasionally, something happens in an industry that causes


a disruption – the rules of the game change.

This has happened in many different industries: for example,


telephone banking and internet banking have caused
huge changes for the banking industry. Likewise, the switch
from photographic film to digital film changed the
landscape in that industry. The music industry is still
grappling with the impact of downloading as the dominant
way to consume music.

These changes are seen as not continuous, that is


discontinuous: the change is very significant. Sometimes
this is referred to as disruptive innovation. Schumpeter
referred to this concept as creative destruction.
DISCONTINOUS INNOVATION (2)
A disruptive innovation
creates a step change in
performance. This very
same pattern of
disruption can be
observed with video
rental services,
department stores and
newspapers.
The appearance of online news services, web portals and other
media platforms, such as blogs and wikis, clearly represent a
disruptive innovation for the traditional newspaper industry.
Other examples of disruptive innovations are:
● music downloads (which disrupted CDs); and
● internet shopping (which disrupted high street retailing).
INNOVATION AS MANAGEMENT PROCESS (1)

The fact is coming up with an idea is


the least important part of creating something great.
The execution and delivery are what’s key.
(Sergey Brin, Co-founder of Google, quoted in The Guardian (2009))

We need to view innovation as a management process. The


innovation is not a singular event, but a series of activities that
are linked in some way to the others. This may be described as
a process and involves:
1. a response to either a need or an opportunity that is context
dependent;
2. a creative effort that, if successful, results in the introduction
of novelty;
3. the need for further changes.
INNOVATION AS MANAGEMENT PROCESS (2)

Usually, in trying to capture this complex process, the


simplification has led to misunderstandings.

The simple linear model of innovation can be applied to only a


few innovations and is more applicable to certain industries
than others. The pharmaceutical industry characterises much
of the technology-push model. Other industries, like the food
industry, are better represented by the market-pull model. For
most industries and organisations, innovations are the result
of a mixture of the two.

We need to recognise that change is at the heart of it and


that change is caused by decisions that people make.
INNOVATION AS MANAGEMENT PROCESS (3)

Another innovation model is proposed and called as ‘cyclic


innovation model’, where it attempts to capture the iterative
nature of the network processes in innovation and represents
this in the form of an endless innovation circle with
interconnected cycles. It is a cross-disciplinary view of
change processes (and their interactions) as they take place in
an open innovation arena.

This circular concept helps to show how the firm gathers


information over time, how it uses technical and societal
knowledge, and how it develops an attractive proposition. This is
achieved through developing linkages and partnerships with
those having the necessary capabilities (‘open innovation’). In
addition, the entrepreneur is positioned at the centre.
INNOVATION AS MANAGEMENT PROCESS (4)

Here, entrepreneurship plays a central role by making use of


those opportunities. Without the drive of entrepreneurs there is
no innovation, and without innovation there is no new business.
SOME EXAMPLES
Small Quiz 1
Dikumpulkan 23/9/2020 sebelum kelas dimulai, dan
dipresentasikan saat kelas

Cari satu produk di sekitar anda, yang menurut anda


merupakan produk hasil proses yang inovatif.

Buat dalam 1 lembar ppt (pdf) berisi:


- Nama produk
- Gambar produk
- Alasan mengapa merupakan produk yang inovatif.
(Inovasi dari produk sebelumnya atau produk lainnya).
- Model inovasi yang mungkin dianut oleh perusahaan.
- Hal-hal yang mungkin bisa menyebabkan produk
tersebut terhenti (discontinous innovation).

You might also like