Joe Tidd and John Bessant

ISBN: 978-0-470-99810-6

2009 John Wiley & Sons Ltd. www.managing-innovation.com

Chapter 5 Sources of innovation

2009 John Wiley & Sons Ltd. www.managing-innovation.com

 2009 John Wiley & Sons Ltd. www.managing-innovation.com

CONTENTS
Introduction Sources Search tools & methods Innovation search space

2009 John Wiley & Sons Ltd. www.managing-innovation.com

1. SOURCES OF INNOVATIONINTRODUCTION

1.1 Climate & Creativity

Innovation is the specific tool of entrepreneurs, the means by which they exploit an opportunity for a different business or service Drucker Creativity = ideas, concepts & inventions Entrepreneurship = couples opportunities & resources Innovation = process of development & commercialisation

2009 John Wiley & Sons Ltd. www.managing-innovation.com

Strategies for idea/concept generation: research & analysis imitate or adapt seek inspiration consult creative types apply systematic creativity methods & tools
Eg:SCAMPERR
2009 John Wiley & Sons Ltd. www.managing-innovation.com

 Eg: Chinas imitation of Mercedes:Geely

Business creativity training is not: logic, research, analysis or intelligence artistic creativity / right-brain being crazy / a rebel removal of structures, inhibitions or fear brainstorming or team building
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2009 John Wiley & Sons Ltd. www.managing-innovation.com

Attributes of the creative mind: conceptual fluency - multiple responses mental flexibility - re-frame & change level defers judgement - avoid premature analysis & criticism tolerance - accepts ambiguous, diverse or opposing views challenging - assumptions & authority risk-taking - high energy, imagination
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Do: develop broad idea challenge everything re-frame problem multiple answers consider in-action identify obstacles

Dont: collect detailed data accept assumptions tackle given problem find the answer confuse action & solution focus on objectives

2009 John Wiley & Sons Ltd. www.managing-innovation.com

celebrate success & learn from failure

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Some elements of business creativeness: stop, pause, postpone decision or (re)action challenge perceptions & assumptions provoke & generate alternatives construct & test speculations & hypotheses focus
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2009 John Wiley & Sons Ltd. www.managing-innovation.com

2. SOURCES of INNOVATION

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2.1 Knowledge push

Knowledge push(Pengetahuan)
Innovation that came out from scientific research R & D processes
Eg: Intel chips Antibiotics CDs

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2.2 Need pull

Need Pull(Keperluan)
Neccessity is the mother of invention Particularly important at mature stages in industry/product life cycles Eg: Energy saving cars

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2.3 Shocks to the system

Whose needs?
Existing customers New & potential customers eg: small entrepreneurs who want to save costs

Emerging markets
Bottom of the pyramid-80% under the poverty line Eg: Poverty in Arica-created demand for cheap food in low prices
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2.4 Advertising and mass customization

Challenge in markets-buyers want variety and customization at the same time Eg: Rising individuality has opened up new market for customized products

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2.5 Users as innovators

Create innovative solutions on a continuing basis Eg: Tech-hobbyists keep on providing ideas on technological innovations-new models for pc, phones

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2.6 Extreme Users

Tough customers mean good designs The users in the toughest environments may have needs which by definition are at edge Eg: Military needs inspire more innovations within the security industry

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2.7 Watching Others

Concept of benchmarking Eg: Korea manufacturing field that came from the concept of copy and develop

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2.8 Combination & recombination

Crossover Combination of industries Eg: Nike fashionable shock-absorbing shoescombination of arts, health and fitness industry

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2.9 Regulation
Restrict certain things and opens up new ones Eg: New tax rules on cigarettes- restricts sales of cigarettes, opens up new market of fake cigarettes and aids to quit smoking

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2.10 Futures and forecasting

Exploring alternatives Eg; Exxon and Shell exploring possibilities for alternatives for oil and gas

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2.11 Accidents
Mistakes that turned out to be important inventions

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3. TOOLS FOR INNOVATION SOURCES

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3.1 Internal knowledge connections

Important to recognize that much of the knowledge lies in the experience and ideas of ordinary employees rather than solely with specialists in formal innovation depts like R & D or market research Internal entrepreneurs=intrapreneurship

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3.2 External connections

Key stakeholders

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3.3 TOOLS OF INNOVATION SOURCES-SUMMARY

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3.4 Exercise-SCAMPER

S Substitute- Remove some part of the accepted situation, thing, or concept and replace it with something else. C Combine -Join, affiliate, or force together two or more elements of your subject matter and consider ways that such a combination might move you toward a solution. A Adapt-Change some part of your problem so that it works where it did not before. M Minify/Magnify- Consider many of the attribute of the thing you're working on and change them, arbitrarily, if necessary. Attributes include: size, shape, other dimensions, texture, color, attitude, position, history, and so on. P Purpose (Put to other use)-Modify the intention of the subject. Think about why it exists, what it is used for, what it's supposed to do. Challenge all of these assumptions and suggest new and unusual purposes. E Eliminate-Arbitrarily remove any or all elements of your subject, simplify, reduce to core functionality R Reverse- Change the direction or orientation. Turn it upside-down, inside-out, or make it go backwards, against the direction it was intended to go or be used. R Rearrange -Similar to Reverse, modify the order of operations or any other hierarchy involved.
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 You are a product executive for Perodua and you need to come up with a new eco-friendly Perodua model based on Viva. Using SCAMPERR, invent a new innovative product suitable for the global market.

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4. CONCLUSIONS

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 There are various sources of innovation and creativity Innovation process can be triggered

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