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A literature survey on a managerial perspective on the process of innovation management

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A literature survey on a managerial perspective on the process of innovation management

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Content A LITERATURE SURVEY ON
A MANAGERIAL PERSPECTIVE ON THE PROCESS OF INNOVATION
MANAGEMENT
by
Aniruddha Tekawade
A Thesis Presented to the
FACULTY OF SCHOOL OF ENGINEERING
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements of the Degree
MASTER OF SCIENCE
INDUSTRIAL & SYSTEMS ENGINEERING
(ENGINEERING MANAGEMENT)
May 2004
Copyright 2004 Aniruddha Tekawade
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Acknowledgements
I wish to thank Dr. Settles, who provided me with invaluable perspective
from both the academic and industry research issues on innovation
management. I also wish to thank Prof. Khoshnevis and Prof.
B ukkapatnam for their insight, guidance and support, with out which
this research would not have been complete.
1 1
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Table of Contents
ACKNOWLEDGEMENTS ii
LIST OF TABLES iv
LIST OF FIGURES v
ABSTRACT vi
CHAPTER 1 : DEFINITIONS & TYPES OF INNOVATION 1
Definitions 1
Types of Innovation 3
CHAPTER 2: INNOVATION METHODLOGIES 20
Process Oriented 21
Critical Success Factor 25
CHAPTER 3: INNOVATION ISSUES 27
Strategic Issues 27
Operational Issues 31
Tactical Issues 35
CHAPTER 4: INNOVATION TOOLS & SOLUTIONS 37
Strategic Tools & Solutions 37
Operational Tools & Solutions 44
Tactical Tools & Solutions 49
CHAPTER 5: CONCLUSION & FURTHER RESEARCH 59
AREAS
BIBLIOGRAPHY 60
1 1 1
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List of Tables
Table 1.1 Types of Innovation by Strategic Advantage 17
Table 2.1 Cooper and Klienschmidt's 13 stage model of the 22
NPD process
Table 2.2 Crawford's six-stage model of the NPD process 24
Table 4.1 Idea Generation Techniques 54
IV
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List of Figures
Fig 1.1. Product/Service & Process Innovation Cost Timeline 5
Matrix
Fig 1.2 Current Structures - Innovation Type by Firm Type and 10
Size
Fig. 1.3 New Structure - Innovation Type by Firm Type and 11
Size
Fig. 1.4 Current Structure- Innovation Type By Organization 13
Function Type
Fig. 1.5 New Structure- Innovation Type By Organization 14
Function Type
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Abstract
As competition increases, and technology changes, firms are
increasingly feeling the need to innovate. However, innovating alone
cannot make an innovation commercially viable or even successful. Like
any other process, within a company innovation is a process, which
needs to be managed. Different industries, products, firms and even
functions require different methodologies/approaches/processes to
manage innovations. Most innovations, however, can be classified into
two types, radical or revolutionary evolution and incremental or
evolutionary innovation. Like most processes, innovations in firms are
usually managed on three levels - strategic, operational and tactical. The
executive and senior management usually manages the strategic level of
the innovation process. The operational level is usually managed by
middle management, while the tactical level is managed by field
personnel and people directly Involved in the innovation process. Some
of the current innovation management issues from this perspective are
strategy management, technology management, risk management, team
composition, people issues etc. The issues and tools are discussed from
a managerial perspective (using a strategic/operational/tactical).
VI
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Chapter 1 : Definitions & Types Of Innovation
1.1. Definitions
There are various definitions of innovation advocated by academia and in
the industry. I have selected a few of these, which shed light from a
innovation management perspective.
J.B Say defines innovation as introducing "something new to the existing
realm and the order of things or to change the yield of resources". (Elias G.
Carayannis and Edgar Gonzalez, 7)
Sternberg, Pretz and Kaufman (17) define innovation " as the channeling of
creativity so as to produce a creative Idea and/or product that people can
and wish to use". (Robert J. Sternberg, Jean E. Pretz, and James C.
Kaufman, 17)
Jorde and Teece define innovation as " the search for and the discovery,
development, improvement, adoption and commercialization of new
processes, new products and new organizational structures and
procedures" (Athanasios Hadjumanolis,8)
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All the above definitions of innovation have a central theme with respect to
usefulness, creativity, products/processes, and commercialization. Since
creativity and discovery are linguistically closely related to innovation, it is
necessary to distinguish innovation from creativity and discovery.
Lubart, Ochshe, Sternberg, Lubart (17) defines creativity as " the ability
flexibly to produce work that is novel (i.e. original, unexpected), in high
quality and useful, in that it meets task constraints". (Robert J. Stemberg,
Jean E. Pretz, and James C. Kaufman, 17). Webster's English defines
create "as bringing something into existence, to invest with a new form, to
produce or bring about by a course of action, to produce through
imaginative skill and to make or bring into existence something new".
Albert Szent- Gyorgyi define discovery as " looking at the same thing as
everyone else and thinking something different" (Elias G. Carayannis and
Edgar Gonzalez, 7). Webster's English dictionary defines discovery as " the
gaining knowledge of or ascertaining the existence of something previously
unknown or unrecognized".
From the definitions above we might conclude that discovery and creativity
are subsets of innovation. Innovation is something more than creating
something new and /or gaining knowledge on something previously
unknown.
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Since this research is iimited to a strategic/operationai/tactical management
perspective on innovation, I wiil define innovation as the process of creating,
deveioping and commercializing a product/service or process, which is/are
distinctictively different in use and or features/functions from any other
commercially available product/service/process. Innovation management
therefore can be defined as managing this process.
1.2 Types of Innovation
Innovation can be of classified according to many different types. Some of
these areas are as follows:
1 ) Product/Service/Process innovation
2) How different a product/service or process is from the current family
of product/service/processes the firm is engaged in and or what is
commercially available.
3) The function in a company which leads the innovation
4) Types of innovation by strategic advantage
5) The type of firm engaged in innovation
6) Top down and Bottom Up
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It is important that managers understand the type of innovation their firm is
being involved with. Understanding the different types of innovation will help
a firm to develop the appropriate trategies in managing it. For example a
company, which is engaged in an innovation for strategic survival as
opposed to one, which is initiated to broaden the market share, would
require different approach to be followed by the management.
7.2. f ProducùCSe/vfce/Process/nnovaf/on
Innovation at its most basic level of differentiation can be classified as
product, service, or process innovation. Firms usually engage in product or
service innovation to gain market share, strategically position itself in the
market with respect to competition or to gain entry into unfamiliar or new
markets. Product/service innovation usually involves huge budgets, have
fixed deadlines and enjoy strong senior management support. Firms usually
engage in process innovation to decrease costs, improve efficiency and
product quality and usually have longer timelines.
According to conventional wisdom and product management textbooks,
product/service innovation usually occurs at the start of the product life cycle
period when the product/service is new while process innovation usually
occurs when the market for the product/service has matured. But this rarely
occurs in reality, product/service and process innovation usually
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occurs intermittently and according to organization's priorities and strategic
objectives at a period of time. Aiso rarely are product/service/process
innovations compietely distinguishable from each other. In order to achieve
maximum benefit, firms need to ensure that their innovation
(product/service/process) fits into the third quadrant below where the costs
are low and timelines are smaller.
Cost
Product/Service
Innovation
Dangerous
Process Innovation Best
Tim eline -----------------------------------------
Fig 1.1. Product/Service & Process Innovation Cost Timeline Matrix
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7.2.2 Reyo/uf/onafy yersus Evo/uf/onafy /nnovaf/on
Many researchers have defined innovation according to how different a
product/service/process is from the current family of
products/services/processes the firm is engaged in and or what is
commercially available. They have classified innovation of revolutionary or
radical innovation and evolutionary or incremental innovations.
Hamid Noori(14) defines revoiutionary/radicai innovation as something,
which " represents a major product, and process breakthrough that creates
a new industry or a significant change in a mature industry". He argues that
revolutionary innovations typically originate outside the firm and establish
themselves a niche within the industry. Radical or revolutionary innovation
are usu6reaily of high risk and cost because it such
products/services/processes are being developed for the first time and have
been untested in the market, thus they are susceptible to unseen problems,
delays, costs and questions regarding its success. These projects are aiso
susceptible to changing organization pnority, and senior management
turnover and usually require millions of dollars. (Christopher M. McDermott
and Gina Colareiii O'Connor, 12). Christopher M. McDermott and Gina
Coiareiii O'Connor (12) define radical innovation as innovation, which
involves technological uncertainty, technical experience, business
inexperience and technology cost. Government research
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organizations, universities, large multi-nationals corporations and other
research organizations usually undertake these types of projects. However
due to the increase in the trend of outsourcing by huge multinational
corporations, this type of work, although on a smaller scale and usually for
more defined areas is being done by smaller research firms backed by
venture capitalists and institutional investors. During the earlier R&D and
test market launch phases of the product life cycle, products generally go
through radical product or service innovation. Product innovation usually
involves prototyping, product modification and product testing related
activities. The goal of product/service innovation during the early stages is to
establish a dominant product (Hamid Noori,14). Noori (14) defines this stage
as the fluid stage.
Evolutionary or incremental innovation as defined by Noori (14) is product or
process improvements that occur within a firm. Since incremental innovation
projects consist of building upon or within the current family of product or
processes, firms involved in such projects have a more thorough
understanding of the technical, organizational, costs, timelines and market
needs. The nature of these projects makes it easier for large, medium and
small sized firms to undertake.
As the product life cycle and time to bring a product to market decreases
revolutionary and evolutionary innovations have become
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indistinguishable. The strategy to engage in radicai/incremental or a
combination of both innovation depends upon the how soon the firm wants
to bring the product to market, cost, time, patent life, competition, life of the
product of service etc. (Hamid Noori, 14)
f.2.3 Types of/nnovaf/on by Hrms
Souitaris (16) has identified innovation by the type of firms as follows:
1. Supplier-dominated firms: These firms are usually medium to large
sized, they do not place much emphasis on R&D, and they have
lower engineering capabilities. They take the majority of their
innovative ideas from firms, which supply them with equipment or
materials.
2. Large-scale producers: These firms tend to be much bigger and
instigate their own process technologies. They concentrate their
resources in this area, and usually diversify vertically into
technological equipment, which is related to their own technology. As
a result they contribute to a large extent to innovation In all sectors of
their activity.
3. Specialized suppliers: These firms tend to be smaller, perhaps
mechanical or instrumental engineering firms. They also
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produce a high proportion of their innovative activities on new
products on new products for use in other sectors. There is little
diversification of innovations produced in their principal sector
activity. Their end users and other firms outside the sector make a
more significant contribution.
4. Science-based firms: These companies are usually firms in the
chemical pharmaceutical and electrical engineering sectors, whose
main source of technology is internal R&D. They produce a relatively
high proportion of their own process technology and of product
innovations used in other sectors of the industry. Usually large, most
of the technological diversification is within the corporation, and they
produce a relatively high proportion of all the innovations made in
their principal sector of activity.
With increasing competition, smaller margins and shorter product life cycles
firms are being forced into a combination of radical and incremental
innovation. The relationship between type of firm and firm size and radical
and incremental innovation is becoming more and more indistinguishable.
The diagram below shows this, txath conventional and the new relationship
between firm type-size and innovation type.
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Evolutiaiiary/lhcremental Revoluüonmy/Radioal
Innovation Innovation
Large
Sm all
Firm
Size
] .
Supplier Dom inated Large Scale Pmducera
3.
Specialized Suppliers
4.
Science Based Fhms
Firm Specialty
Low H ig h
Fig 1.2 Current Structure - Innovation Type by Firm Type and Size
1 0
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Large
Sm all
Firm
Size
1.
Supplier Dom inated
2 .
Large Scale Producers
Radical/R.e^
( Incremental/1Evolutionary )
Dmovation
Specialized Suppliers
Science Based Firms
T 7 : __ c_ _
I J L U U i opcvituLy
Low High
Fig. 1.3 New Structure - Innovation Type by Firm Type and Size
y.2.4 Funcf/on Led /nnovaf/on
Innovation can be defined according to the function, which leads the
innovation. R&D, Marketing or Manufacturing, usually leads innovations
with firms. R&D led innovations tend to be radical/revolutionary
product/service/process in nature. They are usually of long term in nature
and involve high costs and risks and usually occur towards the start of the
product/service life cycle. Marketing led innovations usually involve
incremental/evolutionary in product/service innovations. Increasing market
share and providing a bigger family of products/services to their customers
11
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usually motivate them. Manufacturing innovations usually involve
incremental or evolutionary process innovations. They involve the least cost,
are usually cost saving measures and usually occur towards the end of the
of product/process life cycle.
Depending upon the function, which leads innovation, firms need to adopt
different approaches to the innovation process. For example an R&D led
innovation might require the innovation process to be taking place at a
facility away from the rest of the organization so as to reduce the afflictions
such as organization politics etc from affecting the innovation process on the
other had marketing led innovation might require a high degree of
interaction from the production and production management folks with the
company and therefore prefer to be in close proximity to them as much as is
possible.
At the same time, with ever increasing competition and shorter product
lifecycles, and a race to bring the product to market first, functions within the
company are however having to interact more and more with each other to
make a new product/service/process a success. Thus making it
indistinguishable between the types of innovations they are being involved
with.
1 2
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The figure below shows the conventional and new relationships between
functions and innovation types.
Process
Innovation
Product/
Service
Innovation
1.
Manufacturing
Process Mang
2 .
Special Team
ement Team
3.
Marketing
Product Man
4 .
R & D
agement Team
Incran ental/EvoIuüonaiy
Innovation
Radical/Revolutionaiy
Innovation
Fig. 1.4 Current Structure- innovation Type By Organization Function Type
1 3
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Process
Innovation
Prodncl/
Service
Innovation
Special Teams
Management
Team
Marketing-
Manufacturing Product/Process R& D
4.
Incranental/Evolntionaiy
Innovation
Radical/Revolntionaiy
Innovation
Fig. 1.5 New Structure- Innovation Type By Organization Function Type
Ï.2 .5 Top Down, Boffom Up or Horkonfa/ /noovaf/on
Innovation can be initiated either by the senior management by making a
strategic decision to enter into new markets or to gain market share or from
within the functions for example R&D or marketing which comes up with a
new product/service idea. It could therefore move top down or bottom up
depending upon where the idea was initiated. This is usually the case for
product/service or even process innovation, which is of radical type. For
incremental innovations ideas generally flow horizontally from one
14
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function to another. This could be of either process/product/service
innovation. For example the manufacturing supervisor comes up with an
idea which will save x dollars by making a small changes to the a certain
process or the marketing manager comes up with an idea to come up with a
new product within an existing family of products so as to offer a variety of
services to the customers. In each case the idea needs to get the buy in
from the functions affected but does not necessarily involve the senior or
corporate management in the decision-making.
7.2.6 Producf /nnovaf/on by Tiecbn/ca/ and Afarkef Uncerfa/nfy
McDermott and O'Connor (12) have identified product innovation by
depicting project characteristics classified along dimensions of technical and
market uncertainty. According McDermott and O'Connor (12), Moriarty and
Kosnik (13) have presented taxonomy of marketing and NPD situations
based on technological and market uncertainty. The quadrant of high
uncertainty on both dimensions requires "high-tech" marketing principles,
skills and tactics, which differ from the marketing strategies applied to the
other three quadrants. Also Veryzer (19) classifies innovations along the
dimensions of newness of product capability and newness of technological
capability. He has labeled those innovation efforts that operate in the
advanced technology and enhanced capability (as perceived by the market)
as technologically and commercially discontinuous. Projects
15
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operating in this realm encounter high degrees of uncertainty, in that
perceived value from the market may focus on features of the technology
not anticipated by the developers (Christopher McDermott and Gina
Coiareiii O'Connor, 12)
y.2.7 Tiec/mo/og/ca/ /nnovaf/on
Technology is playing a huge role with respect to innovation. Technology
could either be aiding innovation or become the core principle upon which
the innovation is based. For example information technology is a aiding
innovation because it helps to speed up the innovation process by allowing
quick communication of information while technological innovation in LCD is
playing a central role with respect to television monitor related innovations.
Others have defined technological innovation differently, for example
Carayannis and Gonzalez (7), Tomazky & Fleishcer have defined
technological innovation as the situation-ally new development which"
people extend their control over the environment. While some others have
defined technological innovation as basically information which is organized
in a new way. Therefore technology transfers amounting to the
communication, usually from one organization to another. (Elias G.
Carayannis & Edgar Gonzalez, 7)
1 6
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y.2.6 Types oT/nnovaf/on by Sfrefeg/c Adwanfage
Bruce and Cooper have defined innovation with respect to strategic
advantage.
Type of Innovation Strategic Advantage
Novelty Offering something, that no-one else can
Competence Shifting Rewriting the rules of the competence game
Complexity Difficulty of learning technology and the keeping
the entry barriers high
Robust Design Basic model product or process can be stretched
over and extended life, reducing overall cost
Continuous
incremental innovation
Continuous movement of cost-performance
frontier
Source: Tidd, et al., 1997. (Margaret Bruce and Rachel Cooper, 5)
Table 1.1 Types of Innovation by Strategic Advantage
Y.2.9 E/gbf Types of Creaf/ve ConWbuf/on
Sternberg, Pretz, and Kaufman (17) have identified eight types of creative
contributions or innovation. These areas are discussed as below.
17
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1. Replication: the creative contribution represents an effort to show
that a given field is where it should be. The propulsion is intended to
keep the field where it is rather than moving it.
2. Redefinition: The creative contribution represents an effort to
redefine where the field currently is. The current status of the field
this is seen from a new point of view.
3. Forward Incrimination: The creative contribution represents an
attempt to move the field forward in the direction in which it already is
moving, and ht contribution takes the field to a point of which others
are ready to go.
4. Advanced Forward Incrimination: The creative contribution
represents an attempt to move the field forward in the direction it is
already going, but the contribution moves beyond where others are
ready for the field to go.
5. Redirection: The creative contribution represents an attempt to move
the field where it is currently headed to a new and different direction;
6. Reconstruction/Redirection: The creative contribution represents and
attempt to move the field back where it once was (a reconstruction of
the past) so that the field may move onward from that point, but in a
direction from the one it took in the past;
7. Reinitiation: The creative contribution represents an attempt the
move the field to a different and as yet not reached starting
18
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point and then moves the field in a new direction from the past.
8. Field by putting together aspects of tow or move past kinds of
contributions that Integration: The creative contribution represents an
attempt to move the formerly were viewed as distinct or even
opposed. This type of contributions shows particularly well the
potentially dialectical nature of creative contributions, in that it
merges into a new Hegelian type of synthesis that formerly may have
seen as opposed.
(Robert J. Sternberg, Jean E. Pretz, and James C. Kaufman, 17)
Of/*er Types of/nnovaf/on
Lastly there are many researchers have defined innovation by their function
such as technological, poetic, musical etc. For the purpose of this thesis we
will only concentrate on engineering and management related disciplines.
19
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Chapter 2: Innovation Methodologies
Innovation is at best semi-chaotic in nature and usually involves high
uncertainty and risk. This makes it even more necessary identify, plan
and manage the process as much is possible. To deal with unforeseen
hurdles an accepted by all process needs to be put in place. This should
include requirements gathering, scope management, risk management,
resource management and product management methodologies. Firms
also have to be prepared for and include potential failures and changes
in scope of the innovation project as part of the planning. Various
researchers have presented various methodologies to manage
innovation. These methodologies include step-by-step processes, critical
success factors and the milestones to be achieved at each stage before
moving on to the next stage etc some of these methodologies are
discussed below. These include sequential and parallel process
methodologies and a critical success factors oriented methodology.
2 0
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2.1 Process Oriented Methodologies
2. T . y Sequenüa/ Process Or/enfed Mef/?odo/og/es
Sequential process methodologies have processes, which run in a
sequence. According to Schilling and Hill, such methodologies tend to
be too prescriptive and mechanistic, and fail to take into account
overlaps of activities that will occur naturally in the workplace. They also
tend to increase the cycle time and provide no early warning system for
problems that may occur later in the process. These methodologies
imitate the conventional project management planning process. They are
especially good for planning projects. (Margaret Bruce and Rachel
Cooper, 5). Cooper says that the main problem with the sequential
process methodology is that there are a number of tasks; need to be
completed before the project can progress (Margaret Bruce and Rachel
Cooper, 5).
An example of the sequential process methodology by Cooper and
Klienschmidfs 13 stage model of the NPD process and Crawford's six-
stage model of the NPD process are as below:
2 1
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Table 2.1 Cooper and Klienschmidfs 13 stage model of the NPD
process
1. Initial Screening The initial go/no go decision where it was first
decided to allocate the funds to the proposed new
product idea
2. Preliminary
market assessment
An initial, preliminary, but non-scientific market
assessment; a first quick look at the market
3. Preliminary
Technicai
Assessment
An initial, preliminary appraisal if the technical
merits and the difficulties of the project
4. Detail market
study/market
research
Marketing research, involving a reasonable
sample of respondents, a formal design and
consistent data collection procedure
5.
Business/financial
analysis
A financial or business analysis leading to a
go/no-go decision to product development
6. Product
Development
The actual design and development of the
product, resulting in, for example a prototype or
sample product.
2 2
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Table 2.1 (cent.)
7. In-house product
testing
Testing the product in house, in the lab or under
controlled conductions
8. Customer tests of
product
Testing the products under real-life conductions,
e.g. with customers and/or in the field.
9. Test market/trial
sell
A test market or trial sell of the product-trying to
sell
10. Trial production A trial production run to test the production
facilities
11. Pre
commercialization
business analysis
A financial or business analysis, foilowing product
development but prior to full scale launch
12. Production start
up
The start-up of full scale or commercial production
13. Market launch The launch of the product, on a full-scale and/or
commercial basis; an identifiable set of marketing
activities specific to this product
Source: Hart, 1995 (Margaret Bruce and Rachel Cooper, 5)
23
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Table 2.2 Crawford's six-stage model of the NPD process
Activity Description
1. New Product
Planning
Emphasizing NPD as an element of corporate
planning process
2. Idea generation Seeking ideas internally and externally (from
management, research, competition)
3. Screening To analyze corporate and technical synergy
and feasibility of the project
4. Technical
development
Concepts developed in to physical forms
5. Market appraisal To assess user opinions
6. Commercialization Launch if the product or service
Source: Roberts, 1996, (Margaret Bruce and Rachel Cooper, 5)
In addition to the various steps already defined by various researchers in
the sequential process methodology, Bruce and Cooper have identified
criteria such as performance, reliability, availability, instability, testability,
manufacturability, profitability, and timeliness to help the organization
decide on the funding of the project.
24
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2.Y.2 Para//e/ Pfoceas Or/enfad AfafAodo/og/es
Parallel process models have processes, which run in parallel to one
another. According to Hart parallel process methodologies reduce time
to market, provide a smoother transition between stages of the
processes, promote shared responsibility, cooperation, involvement and
commitments, and improve the problem-solving focus, initiative,
diversified and heightened sensitivity to market conditions. (Margaret
Bruce and Rachel Cooper, 5). Parallel process models also do not
usually require organizational changes, more effort and effective
management. 1995 (Margaret Bruce and Rachel Cooper, 5)
2.2 Critical Success Factors Oriented Methodologies
Kelley in his book - The Art of innovations describes a five-step process,
which is as follows : a) understand the market, the client, and the
technology b) observe real people in real-life situations to understand
how they might relate to the proposed product c)visualize new-to-the-
world concepts and the customers who will use them d)build, evaluate,
and refine prototypes quickly and iteratively and e) commercialize the
new concept.
25
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Kelley lays a lot emphasis on prototyping mantra, teamwork, customer
observation and interface design. Interesting anther recurring theme,
throughout his book is about failure and how its relation to success, to
quote him "one must fail often to succeed sooner." (Smith, The art of
innovation: lessons in creativity from IDEO).
26
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Chapter 3: Innovation Issues
Companies face many strategic, operational and tactical issues during
their product development process. Since the scope of this thesis is
limited to the management discipline, I will define strategic actions as
those relating to the corporate or executive management while
operational actions as those relating to the senior or middle management
and tactical actions as those relating to field personnel or management
directly involved with the project on a day-to-day basis. Some of the
unique innovation management issues from a strategic, operational and
tactical perspective are discussed as below.
3.1 Strategic Issues
g.t.y LacAr of EAiscf/ve Corporafe P/ann/ng
Scott (15) in his survey found out that many companies lack an effective
corporate planning process. More ever initiating a corporate strategic
plan and following it through are difficult. He argues that this could be
because companies do not have an effective corporate planning
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making it difficult to plan for technology. In his survey he aiso found out
that within the firms there is an understanding that managers do not
understand the nature, purpose and processes of strategic planning.
Sometime the technologies planning methodologies and implementation
methodologies are even absent. More ever, where technology strategic
planning activity is satisfactory, the planned implementation fails. He
argues that firms would do best if they concentrate on making existing
strategies work rather than trying to change strategies. (George M Scott,
15)
3. T.2 CAa//enge Of fam ///ar yind Onfa/n/Z/af Afarkefa
Development projects, which are targeted at familiar markets, face
difficulties in ensuring delivery of a perceptible benefit, managing the
threat of cannibaiization, and overcoming the market resistance to the
technoiogy. On the other hand project teams which choose to create
products which are unfamiliar to the firm face two challenges 1) where to
locate this business within the firm, given that it has no obvious operating
unit home, and 2) how to build an effective business modei that takes
advantage of the potential the innovation offers. (Christopher M.
McDermott and Gina Colareiii O'Connor, 12)
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3.1.3 Short Term gains over Long Term Plans
Companies also, sometimes abandon or downplay the technology
strategic plans to pursue new opportunities, which may be short term in
nature. These short-term opportunities usually take precedence over
current technology plans. Short-term financial problems sometimes force
companies to abandon their strategic technology plans (George M Scott,
15). Participants in Scott's (15) survey expressed concern that " long
term technology plans, which may run for ten or more years are difficult
to link with long term business plans which are typically have about a 5
year horizon" Also " too much of aligning technology with business goals
may inhibit innovation in developing technology products."
3. f.4 f?/sAr Managem enf
The innovation process is inherently trial and error process. An ability to
foresee and manage risk could make the difference between success
and failure. Tushman and Anderson (18) suggest managing risks, by
managing competencies. They suggest that competencies can either be
enhanc/ng, where they further a firm's leadership position through
extension of strengths, or desfmy/ng, where they replace existing
strengths and incumbent firms. Competency stretching takes the form of
moving to a new direction for the firm (either technologically or
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through markets). It was not strictly competency enhancing, because it
required the creation of truly new abilities and knowledge within the firm.
Enhancing, and stretching are separate, yet critical activities for long
term growth and renewal of large established organizations. (Christopher
M. McDermott and Gina Colareiii O'Connor, 12).
3.Y.5 TecAno/ogy Core Compefencfee
Scott (15) argues, that areas of core competencies and their
development are not well understood by technology mangers.
Companies usually have expertise in a few areas. This plays a critical
role in development projects. Scott (15) through his survey argues that
the processes, which identify a firm's core competencies, are not
institutionalized. This results in them becoming a victim of short-term
needs. This requires corporate introspection, which is not easily brought
into a company's culture. He also argues that recognition of
technological opportunities (both evolutionary and revolutionary) is
essential to product success. (George M Scott, 15) On the other hand
focus on just the core competencies could result in rigidity of the firms
capabilities and the projects it can successfully undertake.
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3.2 Operational Issues
3.2. Y Po/Wca/ System
Innovation projects usually have to compete with other interests for
limited company resources. T h e political system of a business is the
product of the various demands, either actually and potentially
conflicting, which are the made on the total resources of the concern".
Demands are usually for wages, capital expenditure allocation, space,
equipment, number of work people etc. Section leaders, or sections of
people who share a common concern usually put demands forward.
There is competing pressure from each group to get a larger share of the
resources. (Tom Burns and G.M. Stalker, 6).
3.2. Y MarArefmg and R&O /nfagraf/on
Early interaction of R&D and marketing are essential for improving
product success rates. (Margaret Bruce and Rachel Cooper, 5). There is
a disagreement between marketing and R&D about how they should
cooperate. Marketing may not be versed with what products are possible
in the future and what the customer may desire in the future. Marketing
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may need to be involved as full member of the product development
teams so that marketing may gain understanding of the technoiogy and
its background and evolution. Marketing involvement may also help
technical personnel a more value orientation to customers. Ciose
collaboration between R& D and marketing enables the production of
that product that fits weli with customer requirements. However, several
studies have shown that adequate integration of marketing and R&D is
hard to achieve. (George M Scott, 15). According to Bruce and Cooper,
there are four kinds of barriers to good interface between R&D and
marketing.
1. Perpetual - Personality traits of R&D and marketing are more
actually more similar than the perceived stereotypes.
2. Cuiturai- resuiting from training in different backgrounds
3. Organizational - arising from different task priorities. Ambiguity,
tolerance and departmental structures.
4. Language - marketing managers and R&D managers have
different terminoiogies that are specific to their training area of
expertise, making communication between the two very difficult. "
(Margaret Bruce and Rachel Cooper, 5).
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3.2.2 Conduc/ye Cu/fure
A company, which is seriously engaged in innovation, needs to have a
culture, which encourages and rewards innovations. Corporate senior
managers have to take a lead towards building a culture, which is
conducive. Building such a culture may take years to build and may be
hampered by downsizing, costing cutting and shore term technology
perspective. (George M Scott, 15)
3.2.3 Afeasuremenf /ssues
It is difficult to measure an outcome, which is not yet completely defined
and or could change with strategic and market objectives. The innovation
process is also subjected to changing management priorities, changing
project scope and is inherently a trial an error process. This is more so
with respect to radical/revolutionary innovations. How does one measure
innovation then? Acs and Audretsch (1) have tried to measure
innovation by measuring the process itself (e.g. R&D expenditures), the
output of the process (e.g. number of inventions). There are however
limitations on using such measures. For example a measure on the R&D
activity reflects only the resources allocated towards trying to produce an
innovative output but not the actual amount of resulting innovative
process. Some researchers and firms have advocated using
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patent measure i.e. the number of patents acquired by a company. The
reliability of patent measures is also questionable since there are many
innovations, which are never patented and not all acquired patents are
commerciaiiy viable. (Zoltan J. Acs, and David B. Audretsch, 1991,1)
3.2.4 Cyc/e T7me /ssues
A reduced cycie time couid bring in the saies revenues earlier, and
increase the patent life (thus earning higher revenues). However, it is
very difficult to accomplish significant reductions in product development
cycle in practice without incurring an extra cost or trading benefits. The
significance of cycle reduction is increased because markets are
evolving at an accelerated rate that requires faster product development.
(George IV I Scott, 15). However since the innovation process is
inherently a triai and error process, there are inherent areas for
improving efficiencies. How these can be identified and improved is
however another question.
3.2.5 Orgamfzaf/ona/ Leam/ng & Know/acfge Afanagemanf
innovation inherently is a process of triai and error. An organization,
which is abie to learn faster, will be able to increase the chances of
success. Scientists, technologists, engineers, manufacturing
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personnel and sales go through this process. An organization, which is
quickly able to learn from its past mistakes, promotes sharing of
information and knowledge not only within the organization but also from
outside sources will be able to decrease the learning curve. However,
decreasing the learn curve by promoting and sharing information and
knowledge is difficult to implement in companies because of lack of
organizational priority, precedence of short term gains over long term
benefits given by senior management and downsizing.
3.3 Tactical Issues
3.3.T Teams & Peop/e
An innovation process will usually require input and buy in from different
functions within the company. Inter- team communication, team building,
and interpersonal skills, training becomes highly valued in such settings.
(George M. Scott, 15). Along with inter-team communication, leadership,
team composition & informal networks play valuable roles. These
become even more important for companies involved in radical
innovation. (McDermott & Colareiii O'Connor, 12).
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3.3.2 Sf. Afanagemenf Supporfer (Sponsor/
Sponsors are particularly important to product innovation projects
because of the long payback periods and uncertainty of these projects.
Many of the projects would "fall between the cracks" of the existing
businesses of their corporations if weren't for the sponsors. There are
various issues with sponsors however, right from identifying, getting
access to him/her and convincing him/her. (McDermott & O'Connor, 12)
3.3.3 Cuafomer Percepf/on O f t/aefu/ness Of TTie New Tachno/ogy
Customer perception of usefulness of the new technology and
willingness to purchase it ultimately drives the go no go decision of an
innovation project. In spite of the various tools available, including QFD,
focus groups etc it usually difficult for the managers to gauge this. To
quote, Branscomb. Auerswald in their book (Taking technical risks: how
innovators, executives, and investors manage high-tech risks) "Another
risk is that the customer does not perceive the performance features
enabled by the technology as an advantage. More than one technologist
has been disappointed when customers simply did not care about the
marvels of the technology embedded in the product."
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Chapter 4: Innovation Tools and Solutions
Many different tools and solutions have been researched and
recommend by researchers. Some of the unique innovation management
tools and solutions from a strategic, operational and tactical perspective
are as discussed below
4.1 Strategic Tools and Solutions
4.1. f Hnanc/a/ Afefr/cs
Designing and monitoring financial metrics allow executive management
to monitor the progress of radical innovation projects. Since radical
innovation projects involve huge number of company resources and
have a large budget monitoring such projects becomes vital for the both
success and survival of the firm.
Opinions about the efficacy of project-to-project financial metrics and
other traditional metrics such as ROI are varied. Some researchers
advocate metrics, which focus on an overall strategic project portfolio,
which provides good market share potential, and a cohesive ^
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family of products, rather than project-to-project financial metrics. On the
other hand, Kuczmarski advocates and a method to measure the return
on innovation investment. He characterizes innovation as a mindset or
attitude, and successful innovation requires managers to assess market
needs and demands, and to manage the inherently higher risks. He
advocates measuring two categories of innovation investment metrics
(hence the 1 ^ acronym). Investment Performance Metrics and Investment
Program Metrics. Investment Performance Metrics include components
that indicate likely effects on income, firm growth, new product
performance, and so on. The second category of metrics is the Program
Metrics, which examine implications such as efficiency of R&D process,
strength of innovation focus, the balance within the product portfolio,
resource allocation effectiveness, and so on. To make it all happen,
Kuczmarski recommends that the tracking data obtained above be
applied to purpose, process, and people. (Di Benedetto 2002, 3)
4.7.2 ^///ances/O ufsourc/ng
As product life cycles gets shorter and competition increases more and
more firms have started to use alliances/outsourcing as a way to reduce
the time to bring a product to market and also reduce the risk involved
with putting all resources in one basket. According to Howard and
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Guile (9), Licensing, supplier arrangements (outsourcing), joint ventures,
acquisitions, research consortia are mechanisms by which companies
bring together technical personnel for exchange of technology. (William
G. Howard Jr., Bruce R. Guile 1992, 9).
Companies involved with radical innovation have also started looking at
universities for alliances. However, according to Logar, Ponzurick and
Spears there are four potential roadblocks to successful industry-
university new product alliances that need to be addressed. One such
obstacle is, that university culture usually purports a philosophy that they
are not in the business of commercializing faculty-driven intellectual
capital. Secondly universities have difficulty adapting to the private sector
culture of aggressive market entry. And thirdly faculty tend not to release
a product until they are convinced that it is as close to perfect as
possible, but in the time it takes to reach this level of perfection the
market might have changed. The final issue, being that universities
usually lack the infrastructure and funding to support the
commercialization of new products (Di Benedetto and C. Anthony, 2)
An alternative to alliances is outsourcing. Outsourcing can be used to fill
In competency gaps thus reducing risk and progressing through projects
where skills were not available internally. (Christopher M.
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McDermott and Gina Colareiii O'Connor, 12). Outsourcing, however,
usually requires project managers on both ends of the spectrum to
manager relationships and expectations. Outsourcing is also another
approach to managing risk. Reducing uncertainty through outsourcing
can result in a drain on managerial time and resources, as well as a
potential loss of control and missed opportunity for competency
stretching. (Christopher M. McDermott and Gina Colareiii O'Connor, 12)
4. f.3 /nformaffon TecAno/ogy (77)
As product life cycles and the time to bring products to market become
shorter there are growing needs within an organization to speed up its
internal processes. According to Ozer (20), IT can contribute towards
speed, productivity, collaboration/coordination, versatility, knowledge
management, decision quality, and product quality. It can also coordinate
the work of multiple companies and consultants located all over the
world. IT can also be used to involve customers and business partners in
innovation process. Firms need flexibility in technology to handle
different communications needs through the NPD process. IT provides
the necessary flexibility through e-mail, electronic bulletin boards, video
conferencing and data conferencing. Knowledge generation and
management are also assisted by IT. IT can support human
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decision-making at various stages in NPD, improving decision quality
(Muammer Ozer, 20).
Firms need to engage in benchmarking so as to ensure that their
products/services are competitive in the marketplace. The benchmarking
process compares existing company performance to the best in the
class. The benchmarking process helps the management to develop a
feel for where improvements are possible and also set realistic
expectations.
4.Y.5 R/sAr Managem enf
Most radical innovation projects are of long durations, which make it
difficult to conduct a risk analysis and manage risk. However, it is vital for
a firm to manage risk involved with innovation projects. Keizer, Halman,
and Song (10) have proposed three domains i.e. technology (product
design, manufacturing technology), market (consumer acceptance,
competition action) and financial viability to manage risk. They have also
proposed a risk assessment approach, which includes
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a) Evaluating each potential risk, its likeiihood and controilabiiity and
relative importance to project performance.
b) Identification of technological, operational, market and financial risks
from a cross-functional perspective.
c) Conducting a risk assessment at the each phase and periodicaliy
reassessing the project for unforeseen risks and deviations from the risk
management plan.
d) Identifying and evaluating the product innovation risks individuaily, and
generating, evaluating and selecting alternative solutions.
(Keizer, Halman, and Song, 10)
4. f .6 Tec/mo/opy Roadmaps
As technology changes fast, managers need to keep themselves abreast
with the latest changes. Managers need to be able to determine
technology developments that will help them to accomplish overall
objective. Technology roadmaps can be used for identification and
deveiopment of supporting technoiogies. A roadmap is a systematic
process for devising a picture of future technology. The roadmap is a
projection of major technologicai elements of product design and
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manufacturing over time. The technology road map process requires a
complete understanding of competitive behavior, product life cycle, and
production needs. It contains information from various management
tools including product life cycle, learning curves, competitive analysis
etc.
4.7.7 /nnovaf/on Leam/ng & Knoiv/ecfge Management
Firms need to learn quickly from past mistakes and also manage
knowledge so as to maximize use of their resources. According to
Howard and Guile (9), Learning curves/experience curves, progress
functions are a management tool, which can be used to assess rate of
improvements in an ongoing production and design environment.
Leaning curves can be used in planning a project to asses general
improvement in performance if an ongoing activity, stimulate actions
needed to cause improvements and progress in product/process
attributes (such as quality levels, cycle time etc). (William G. Howard Jr.,
Bruce R. Guile, 1992,9)
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4.2 Operational Tools and Solutions
4.2. f t/pper Afanagemenf Confro/
Bonner, W.Walker and Orville Jr (5) propose that projects that are
subjected to micro management by upper managers are associated with
delays, cost overruns, lower product performance, and lower team
performance. Their study found a negative association between process
control and project performance was even stronger for relatively
standalone projects than for projects that are part of an integrated
program. The study found no significant relationship between the use of
output controls and project performance. This holds true for both
incremental and radical innovation projects. Upper managers should be
cautious about actually intervening in decisions for which the project
team is held responsible, and in changing resource allocations and
control standards during the project. (Bonner, W. Walker & Orville Jr., 5)
4.2.2 /nferface Management
As firms increasing collaborate with each other it has becoming
increasingly vital to mange the interfaces between them. This is also with
respect to functions within a firm. According to Howard and Guile (9),
firms seeking to minimize technology transfer problems between
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internal organizations periodically shift responsibility for directing critical
departments from functional research departments to integrated
production and development mangers and back. (William G. Howard Jr.,
Bruce R. Guile, 9).
Many experts have suggested critical functions within a firm need to start
participating early in the innovation process. According to Boner, Ruerket
and Orville Jr,' s (5) study, early and active participation by project team
members in the determination of the project's operational controls— such
as, goals, budgets and schedules— are associated with superior project
performance. They also suggest that there is significant relationship
between early and active participation in project strategy development
and project performance. The lack of a significant relationship may
indicate that project team members are not often in a good position to
assist upper level managers in the development of the project strategy.
(Bonner, Ruekert, and Orville Jr, 5).
According to Howard, and Guile (9), one way to smoothen
communication between functions within a firm is by using contracts.
Contracts are a formal understanding rather than a legal document,
between cross-functional departments is a useful mechanism for forming
and managing work between multi-disciplinary teams. Such a
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contracts would help to clear expectations, track project status and
involve senior management with any decision that would affect the
fundamental direction of the project;. Such contracts could exist between
marketing, development, R&D, production and management. (William G.
Howard Jr., Bruce R. Guile 1992, 9).
4.2.3 Cusfomer Regu/remenfs and /(a Trans/af/on w/fA/n fAe
It is a well-known fact that different functions within a firm speak a
different language because of their different backgrounds, objectives and
even the general ways they go about completing their tasks. It is
especially vital that everyone has a common understanding of customer
requirements and specifications.
Quality Function Deployment (QFD) is also a management tool, which
cannot only achieve this, but it can also be used to identify opportunities
for product improvement and differentiation. Customer requirement
characteristics can be translated through a matrix so that engineers
understand them.
4.2.4 Performance Afefr/ca
It is vital to design and monitor performance metrics for innovation
management. According to Thomas Kuczmarski, many firms use
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metrics to diagnose strengths and weaknesses, to allocate resources
and priorities, compensate new product team members, communicate
the firm's goals to employees and externally and to set future goals.
Measuring innovation requires ways to measure the firm's innovation
activities and initiatives. Choosing the correct metrics, or tools. Thomas
Kuczmarski has identified five frequently seen flaws in innovation metrics
including using too many metrics, focusing too much on the outcome,
focusing too much on the immediate financial impact of innovation, rather
than considering competitive advantage or benefits to other operations
within the firm and using metrics too infrequently, focusing too much on
cutting costs and focusing too much on the on the past.
Vangelis Souitaris (16) proposes seven innovation indicators to measure
innovation. These are as follows:
1. Number of incrementally innovative products, radically innovative
products, innovative manufacturing process introduced
2. Percentage of current sales due to incrementally and radically
innovative products introduced
3. Innovation expenditure over current sales and number of patents
acquired.
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4.2.5 /nnoyaf/on LeacfersA^p
Managers who engage in innovation face a variety of difficulties and
hurdles throughout the innovation process, which constantly test their
leadership skills.
According to Benedetto and Anthony (2), leaders to manage their teams
can use five objectives and strategies. These include ensuring
commitment, building information-intensive environments, playing
facilitator, focusing on human interaction, and focusing on leaming.
4.2.5 Leve/ag/ng Exfsf/np Know/ecfge
It is important that an organization utilize its resources as efficiently as
possible in order to maximize the commercial benefits from innovation.
This is especially true with respect to incremental innovation which is
depends upon preexisting products and processes. According to
McDermott and O'Connor (12) a firm's unique historical knowledge of
the enabling technologies, building of existing strengths also helps to
reduce the risks when involved with radical product development.
(Christopher M. McDermott and Gina Colarelli O'Connor, 12 )
One way of leveraging existing knowledge is by way of informal
networks. Informal networks help team members to tap on
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information and resources as needed to help the development process.
These networks also help in the early validation of business
opportunities. (Christopher M. McDermott and Gina Colarelli O'Connor,
1 2 ).
4.3 Tactical Tools and Solutions
4.3.1 Customer /npuf
it is vital to both design according to customer requirements validate a
new product/service through customer input and feedback. According to
Anthony Ulwick, companies often listen to customers wrong. They
usually ask their customers what they want and customers usually tend
to provide solutions in terms of desired products or services. Customers
however are not experts in providing solutions but do offer valuable
information on what they want the new product or service to do for them.
Ulwick has come up with a five-step process to collect customer
requirements. This is as follows:
1. Plan outcome-based customer interviews.
2. Capture only the desired outcomes.
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3. Organize the outcomes
4. Rate outcomes for importance and satisfaction.
5. Use the outcomes to jump-start innovation.
(Di Benedetto and C. Anthony - Turn customer input into innovation, 2)
4.3.2 Pro/ecf Managem ent Tbo/a
Many researchers have advocated using project management tools to
manage innovation. This however has its pitfalls.
According to McDermott and O'Connor (12), since project management
tools are based on clearly defined objectives, schedules and budgets
they are difficult to use in manage innovation, which is more of a trial and
error process. PERT/CPM are difficult to use in uncertain environments.
Many studies have been conducted about managing projects under
conditions of uncertainty. These studies are based on a disciplined
approach to innovation development allowing for mistakes and discovery
of false assumptions. Leonard-Barton's (11) concept of Tailing forward'
and Lynn, Morone and Paulson's concept of probing and learning' are
few such tools which provide flexible, trial and error approaches to
managing projects with high levels of uncertainty. (Christopher M.
McDermott and Gina Colarelli O'Connor, 12 )
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4.3.3 /nnoyaffon ProducfSe/v/ce/Process CAamp/ons
The importance of champions in innovation is undeniable, especially in
firms where support systems, process and infrastructure are iacking. The
success of the innovation project is dependent on strong, persistent
individuals. This is especiaily true with respect to radical innovation
projects. (Christopher M. McDermott and Gina Coiarelli O'Connor, 12)
According to McDermott and O'Connor (12), the champions are usuaily
people who have been with their firm for many and rotated through
several business units. These people have deep informal networks,
which they could use to access for information at any time. They also
possess experiential knowledge of most of their firms
According to Howard and Guile (9), these people accept responsibility
and become personally invested in, and identify with the innovation
process. An effective champion focuses on intensifying team efforts
dedicated to market-driven commercialization problems or to product and
process improvement. Champions also share dedication, a vision,
willingness to take risks, and an ability to gamer resources. (William G.
Howard Jr., Bruce R. Guile, 1992, 9)
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4.3.4 Team Compoa/f/ona
Different team members bring in different perspectives, knowledge, and
organizational strength to the table. A team possessing a variety of skills
and strengths increases its chances of success. Senior executives are
often enthusiastic supporters of teams, but can be poor team players.
(Di Benedetto and C. Anthony 2). According to McDermott & O'Connor
(12), people who join radical innovation development teams are usually
characterized by breadth of experience, in addition to depth. A
combination of product development skills & functional sophistication is
usually sought after for the liaison position.
4.3.5 Ru/es BreaAr/ng
In order to succeed, sometimes it is necessary to break rules. This could
be especially true for radical innovation where in, there are no set
precedents or historical information to rely on. These projects are also
most likely to fail because of its high-risk nature and also resources are
scarce and limited. Olin and Wickenberg argue for breaking the rules
because they argue that standardized processes work against innovation
since innovation thrives in an environment of creativity and autonomy.
(Di Benedetto & C. Anthony 2002,2)
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4.3.6 Manag/ng R/aks by /gnor/ng R /aAra
McDermott and O'Connor (12) propose managing risks by simply
ignoring them for sometime.
4.3.7 /cfea Generaf/on & Screen/ng Tecbn/guea
Generating and screeningideas is a critical step in the innovation
process. There are many methodoiogies/tools, which have been
proposed for idea generation and screening. Mathod (1992) has
classified idea generation techniques as either systematic analytical
techniques (e.g. morphological analysis) or associative techniques (such
as brainstorming) analogical techniques (such as synetics). Crawford
has classified idea generation techniques into three types
1. To identify unmet needs and problems (problem fine/solve
approach)
2. To modify or improve existing products to create new products
(fortuitous scan approach)
3. To find problems and brainstorming to identify possible solutions
(problem find/solve approaches)
(Margaret Bruce and Rachel Cooper 1994, pg 49-78, 5)
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Below are few of the idea generation techniques advocated by
researchers.
/cfea Generaf/on TecAn/ques
Table 4.1 Idea Generation Techniques
Method Characteristics Objectives
Abstraction
(progressive
abstraction)
Make problem or situation
more abstract
Insights into new
solutions
Adaptation Modifying or partial
transformation of an
existing of an existing
product for different
conditions
Reliable solution for
new condition
Aggregation Combination of product
characteristics into a single
product, or of function of a
number of products into one
product
New properties,
simplified structures
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Table 4.1 (cent.)
Analysis of
(attribute listinc
Thorough analysis of every
property of the product
Application of a
proven product to
new areas of use
Attribute-based
discriminant
Einalysis
(PREFIVIAP)
Market Segments
developed on basis of
brand preferences,
geometric representation
developed by discriminant
analysis from brand's
effective attributes, then
mapped without criticism
Market structure
generated and
search for new
product
opportunities
Brainstorming Collect ideas in
freewheeling discussion
without criticism
Find many new
ideas
Combinations
with interactions
Combining of product or
properties to obtain new
and more complicated
effects.
Derive new solutions
from existing
products
55
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Table 4.1 (cent.)
Critical path
network
Graphic representation and
activities and their duration
Create and overview
of the sequence and
the timing and find
the critical path
opportunities.
Descartes Four principles, criticism,
division, ordering, create
overview
Correctness and
effectiveness of
thought process
stimulate ideas
Dimensional
investigation
Technical and economic
properties of the product
brought together into a
mathematical relationship
Find optimal solution
on product
development
Division of
totality
Tactical procedure based
on the division of whole
concept or problem into
component parts
Create overview,
generate partial
solutions
56
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Table 4.1 (cent.)
Evaluation Find Technical and
economic valuation by point
counting
Find best variant
among a few/
Experimentation By measuring and testing,
obtain desired values
Determination of
product
Incubation After through preparation of
the problem, take a break
Find ideas by
intuition.
(Margaret Bruce and Rachel Cooper 1994, pg 49-78, 5)
/dea Scraen/np
There are a number of techniques for idea screening. These include the
following
# Ranking
# Checklists
# Scoring Models
# Network Models
# Attribute-based analysis
# Numerical weighting methods
# Line Profiles
57
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# Block Profiles
# Idea Sort
# Profitability index method
(Margaret Bruce and Rachel Cooper 1994, pg 49-78, 5)
Profofyp/ng
Another way to screen ideas is by using prototyping. Prototypes force
decision-making; they can persuade. In short, a good one is worth a
thousand pictures. There are many ways of making prototypes, and
modem computerization has reduced the cost of many of these
processes tenfold, opening up new prototyping strategies. It helps to
exploit the advantages of making numerous relatively cheap but crude
prototypes early in the project to move ahead faster and more surely.
(Smith, The art of innovation: lessons in creativity from IDEO)
58
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Chapter 5: Conclusion and Further Research
Areas
Different firms need to formulate and implement different strategies to
manage the innovation process. Managers need to understand the
different innovation types and methodologies that would help in
formulating and implementing a strategy to manage innovation. Mangers
need to understand arid address critical innovation issues such as
strategy formulation and implementation, risk management, firm culture,
people issues and also at first glance seeming trivial issues such as
political forces within the organization, rule breaking are important for
success. The scope of the research does not include empirical data on
how these issues can be successfully managed and solutions for them
be implemented.
59
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BIBLIOGRAPHY
1. Acs, Zoltan J; Audretsch, David B; "Innovations and Technological
Change." Chap. in Innovation and Technological Change, Pgs 1-
23, USA, The University of Michigan Press, 1991.
2. Anthony, C; Benedetto, Di; Abstracts, Journal of Product
Innovation Management (2002), Vol 19 (2002), Pgs 455-460
3. Benedetto Di; Abstracts, Journal of Product Innovation
Management. Abstracts (2002), Pgs 318-323; 171-176; 246-251:
384-389.
4. Bonner, Joseph M.; Ruekert, Robert; Orville C Jr. "Upper
Management Control of New Product Development Projects and
Project Performance." Journal of Product Innovation Management
Vol 19, Pgs 233-245.
5. Bruce, Margaret; Cooper, Rachel. "New Product Development.
Pgs 3-26, Pgs 49-78; Great Britan: John Wiley & Sons, Ltd.
Bums, Tom; Stalker, G.M; "Organization, Politics and Status"
Chap. in The Management of Innovation; Pgs 126-124.
Oxford University Press Inc., New York, 1994.
7. Carayannis, Elias G; Gonzalez, Edgar; "Creativity and Innovation:
Competitiveness." In The International Handbook of Innovation,
Larisa V. Shavinina; Pgs 587-606. Oxford, UK: Elsevier
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Science Ltd, 2003.
8. Hadjumanolis, Athanasios; T h e Barriers Approach to Innovation";
The International Handbook on Innovation, Larisa V. Shavinina,
Pgs 559-573. Oxford, UK, Elsevier Science Ltd, 2003.
9. Howard Jr., William G; Guile, Bruce R, and Management Tools
and Techniques. "Profiting from Innovations." Pgs 39-86. USA.
The Free Press, 1992.
10. Keizer, Jimme A., Hakman, Johannes and Song, Michael "From
Experience: Applying the Risk Diagnosing Methodology." Journal
of Product Innovation Management Vol 19(2002), Pgs 213-232.
11. Leonard-Barton D; "Well-Springs of Knowledge: Building and
Sustaining the Sources of Innovation." Harvard Business Press
Harvard Business Press, (1995).
12.McDermott, Christopher; O'Connor, Colarelli Gina;. "Managing
Radical Innovation: An Overview of Emergent Strategy Issue."
Journal of Product Innovation Management 19 (2002), Pgs, 424-
438
13.Moriarty, R.T; Kosnik, T.J.; "High-Tech Marketing: Concepts,
Continuity, and Change." Sloan Management Rev (Summer)
(1989) Pgs 7-17.
61
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14.Noori, Hamid; "Technological innovation." Chap. in Managing the
Dynamics of New Technology. Pgs 99-128. USA: Prentice Hall,
1990.
15. Scott, George M; "Critical Technology Management Issues of New
Product Development in High-Tech Companies Critical
Technology Management Issues of New Product Development in
High-Tech Companies." Journal of Innovation Management (New
York) Voi 17: Pgs 57-77.
16.Souitaris, Vangelis; "Determinants of Technoiogicai innovation." in
The International Handbook on innovation, Pgs 513-528, Larisa V.
Shavinina. Oxford, UK, Elsevier Science Ltd (2003).
17. Sternberg, Robert J.; Pretz, Jean E; Kaufman, James C.; "Types
of Innovation.", The International Handbook on Innovation, Larisa
V. Shavinina. Elsevier Science Ltd(2003).
18.Tushman M, Anderson P, "Technoiogicai Discontinuities and
Organization Environments." Admin Science Quarterly 31
19.Veryzer, R.W.; "Discontinuous Innovation and the New Product
Development Process." Journal of Product Innovation
Management, Vol 15 (1998), Pgs 304-321.
20. Ozer, Muammer, The contributions of IT in NPD, Industrial
Marketing Management, Vol. 29, 2000, pp. 387-396
62
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Asset Metadata

Creator Tekawade, Aniruddha (author)

Core Title A literature survey on a managerial perspective on the process of innovation management

School School of Engineering

Degree Master of Science

Degree Program Engineering Management

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag business administration, management,engineering, industrial,OAI-PMH Harvest

Language English

Contributor Digitized by ProQuest (provenance)

Advisor Settles, F. Stan (committee chair), Bukkapatnam, Satish (committee member), Khoshnevis, Behrokh (committee member)

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