What is innovation ?
innovation = idea + implementation + business success
Innovation combines all three aspects. Innovation can be called innovative when the idea has never been seen before, and the technology used for it is also new. If that idea is combined with a business plan that makes this invention successful, you can call it innovation. replacing old products
Following aspects are true:
business success through novelty
when the market goes “Yippee!”
when customers judge your product innovative and it is hard to imitate
creative destruction (Joseph Schumpeter)
whats the Innovators’ dilemma
taking on a new approach will reduce your revenues from existing business
default reaction: kill the new approach
internally: stop any developments
externally: drive standards to prevent new approach
risk: somebody else could go to market with the new approach
tradeoff: either you are the first to eat into your own (and others) market, or somebody else will do it
What is the Diffusion Theory
Diffusion of Innovation (DOI) Theory, developed by E.M. Rogers in 1962, is one of the oldest social science theories. It originated in communication to explain how, over time, an idea or product gains momentum and diffuses (or spreads) through a specific population or social system.
What are the Key components of innovation management?
• innovation strategy
– strategic goals and focus areas
• idea management
– scanning – cooperations
– idea positioning and evaluation – idea selection
• innovation project management
– project portfolio management (“multi-project management”)
– management of innovation projects
• transfer into business
What are “Stage gate” processes?
• stage gates = milestones combined with decision point
• useful between different phases of innovation projects
– check if project phase goals have been reached
– ... and if they are still relevant
• stage gate decision
– continue with new setup for next phase – align / combine with other project – stop project – sellout/spinout/...
• some projects need to be stopped (remember the “funnel”)
– this is about exploration, not about “succeeding” in research