MKT 410 Exam 1

High performing characteristics

- a clear, common and elevating goal -results driven structure -competent team members -unified commitment

Key aspects of innovation

-degree of novelty - incremental or radical innovation? -platforms and families of innovations -discontinuous innovation - what happens when the rules of the game change? -level of innovation - component or architecture? -timing - the innovation life cycle

Innovation is about

-identifying or creating opportunities -new ways of serving existing markets -growing new markets -rethinking services -meeting social needs -improving operations- doing what we do but better All innovations are about making changes, and doing so not for the sake of change itself, but in order to create value.

Appropriate use of the team

-participation in decisions making -team spirit -embracing appropriate change

Barriers to innovation

-seeing innovation as ideas, not managing the whole journey -not recognizing the need for change -mindset and complacency - core competence becomes core rigidity -closed information network, insulated from new ideas

Collaborative climate

-standards of excellence -external support and recognition -principled leadership

Tuckmans model of team development

1. Forming 2. Storming 3. Norming 4. Performing

12 ways to innovate

1. Offerings- new products or services 2. Platform- derivative offerings based on reconfiguration of components 3. Solutions- integrated offerings that customers value 4. Customers- unmet needs or new market segments 5. Customer experience- redesign of customer contact and interactions 6. Value capture- redefine the business model and how income is generated 7. Processes- to improve efficiency or effectiveness 8. Organization- change scope or structures 9. Supply chain- changes in sourcing and order fulfillment 10. Presence- new distribution or sales channels 11. Brand- leverage or reposition 12. Networking- create integrated offerings using networks

The core process involves 4 steps:

1. Recognizing opportunities 2. finding resources 3. developing the venture 4. capturing value

Four dimensions of innovation

1.Product- changes in the things (products/services) which an organization offers 2.Process- changes in the ways in which these offerings are created and delivered 3.Position- changes in the context into which the products/services are introduced 4.Paradigm- changes in the underlying mental models which frame what the organization does

Innovation

A process of change and experimentation that ultimately can be managed by building dynamic capabilities; the process of creating value from ideas. Strongly associated with growth. Strategic resource. Complex process (extended process) which carries risks and needs careful and systematic management. Paying attention to creating, capturing, and using knowledge is critical in innovation.

Rothwells 5 generations of innovation model

First/second - simple linear models - need pull, technology push Third- coupling model, recognizing interaction between different elements and feedback loops between them Fourth- Parallel model, integration within the company, upstream with key suppliers and downstream with demanding and active customers, emphasis on linkages and alliances Fifth- systems integration and extensive networking, flexible and customized response, continuous innovation

Capturing value

In terms of sustaining adoption, and diffusion and in learning from progressing through this cycle so that the organization can build its knowledge base and can improve the ways in which the process is managed.

Entrepreneur

Individuals who see opportunities and take risks to try and exploit opportunities to create commercial value or social change. They can also work inside of organizations and are known as intrapreneurs.

Ch.2 Summary

Innovation doesn't happen simply because we hope it will - it's a complex process which carries risks and needs careful and systematic management. Innovation isn't a single event, like the light bulb going off above a cartoon character's head. It's an extended process of picking up on ideas for change and turning them through into effective reality. At its heart it involves stages of searching, selecting, implementing and capturing value. The challenge comes in doing this in organized fashion and in being able to repeat the trick. Any organization can get lucky once but the real skill in innovation management is being able to repeat the trick. So if we want to manage innovation we ought to ask ourselves the following check questions: • Do we have effective enabling mechanisms for the core process? • Do we have strategic direction and commitment for innovation? • Do we have an innovative organisation? • Do we build rich pro-active links? • Do we learn and develop our innovation capability? Learning to do this - building innovation management capability - involves finding behavior patterns which work and then reinforcing and practicing them until they become 'routines' - 'the way we do things around here'. They become the structures and procedures through which we make innovation happen. In a constantly changing environment it's also important to check and adapt our 'routines', updating, adding and even letting some of them go. This process of regular review and reconfiguration is at the heart of innovation management as a 'dynamic capability'.

Innovation & Entrepreneurship

Innovation doesn't just happen - it is driven by entrepreneurship.

Ch.1 Summary

Innovation is about growth - about recognizing opportunities for doing something new and implementing those ideas to create some kind of value. It could be business growth, it could be social change. But at its heart it is the creative human spirit, the urge to make change in our environment. Innovation contributes to competitive success in many different ways - it's a strategic resource - helping to get the organization where it is trying to go, whether it is delivering shareholder value for private sector firms, or providing better public services, or enabling the startup and growth of new enterprises. Innovation doesn't just happen - it is driven by entrepreneurship. It's the same whether we are talking about a solo start-up venture or a key group within an established organization trying to renew its products or services (e.g. intrapreneurship). Innovation is a complex process which carries risks and needs careful and systematic management. Innovation isn't a single event, like the light bulb going off above a cartoon character's head. It's an extended process of picking up on ideas for change and turning them through into effective reality. The core process involves four steps - recognizing opportunities, finding resources, developing the venture and capturing value.

Ch.3 Summary

Leadership and organization of innovation is much more than a set of processes, tools and techniques, and the successful practice of innovation demands the interaction and integration of three different levels of management, individual, collective and climate. At the personal or individual level, the key is to match the leadership styles with the task requirement and type of teams. General leadership requirements for innovative projects include expertise and experience relevant to the project, articulating a vision and inspirational communication, intellectual stimulation, and quality of leader-member exchange (LMX). At the collective or social level, there is no universal best-practice but successful teams require clear, common and elevating goals, unified commitment, cross-functional expertise, collaborative climate, external support and recognition and participation in decision making. At the context or climate level, there is no "best innovation culture", but innovation is promoted or hindered by a number of factors, including trust and openness, challenge and involvement, support and space for ideas, conflict and debate, risk-taking and freedom.

Strategic Advantage

The particular characteristic or way of doing things that makes it more successful than others. One way to measure it is by understanding market share.

Market share

The portion (percentage) of a market controlled by a particular company or product. It is best thought of as a pie. Market share = company's sales / industry's sales

If we want to succeed in managing innovation we need to:

Understand what we are trying to manage Understand the how Understand the what, why, and when of innovation activity Understand that it is a moving target

Top management commitment

a common prescription associated with successful innovation; the challenge is to translate the conceptinto reality by finding mechanisms that demonstrate and reinforce the sense of management involvement, commitment, enthusiasm and support

Innovation strategy

a framework to guide the process of change

Ideas proliferate

after starting out in a single direction, the process proliferates into multiple divergent progressions

Adaptors

characteristically produce a sufficiency of ideas based closely on existing agreed definitions of a problem and its likely solutions but stretching the solutions. these ideas help to improve and 'do better'

Selecting

deciding (based on a strategic view of how the enterprise can best develop) which of these signals to respond to

Value

may be defined in terms of creating a product or service which others find useful and which they are prepared to pay for in order to express how much they value it

Innovators

more likely to reconstruct the problem, challenge the assumptions and to emerge with a much less expected solution which very probably is also at first less acceptable. innovators are less concerned with doing things better than with doing things differently

Climate

recurring patterns of behavior, attitudes, and feelings that characterize life in the organization

Searching

scanning the (internal & external) environment for and processing relevant signals about threats and opportunities for change

At its heart it involves stages of

searching, selecting, implementing, and capturing value

Creating an innovation strategy

strategic analysis: what could we do? strategic selection: what are we going to do and why? Strategic implementation: how are we going to make it happen?

Innovation needs:

strategy- clear strategic leadership and direction, plus the commitment of resources to make this happen innovative organizations- in which the structure and climate enables people to deploy their creativity and share their knowledge to bring about change proactive linkages- across boundaries inside the organization and to the many external agencies who can play a part in the innovation process- suppliers, customers, sources of finance, skilled resources and of knowledge, etc. learning and improvement loop

Invention

the creation of some new or different combination of needs and means

Dynamic capability

the firms ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments; need to update our routines in a changing world

Value proposition

the way marketers talk about innovation - it is cheaper, you can have it faster, it is of higher quality

Implementing

translating the potential in the trigger idea into something new and launching it in an internal or external market. Making this happen is not a single event but requires eventually acquiring the knowledge resources to enable the innovation, executing the project under conditions of uncertainty (which require extensive problem-solving) and launching the innovation into relevant internal or external markets.