Innovation Management and New Product Development

Front Cover
Half Title
Title Page
Copyright Page
Contents
Preface
Acknowledgements
Plan of the book
Part One Innovation management
	1 Innovation management: an introduction
		The importance of innovation
		The study of innovation
			Two traditions of innovation studies: Europe and the USA
			Recent and contemporary studies
		The need to view innovation in an organisational context
			Individuals in the innovation process
		Problems of definition and vocabulary
			Entrepreneurship
			Design
			Innovation and invention
			Successful and unsuccessful innovations
			Different types of innovation
			Technology and science
		Popular views of innovation
		Models of innovation
			Serendipity
			Linear models
			Simultaneous coupling model
			Architectural innovation
			Interactive model
			Innovation life cycle and dominant designs
			Open innovation and the need to share and exchange knowledge (network models)
		Doing, using and interacting (DUI) mode of innovation
		Discontinuous innovation - step changes
		Innovation as a management process
			A framework for the management of innovation
			New skills
			Innovation and new product development
		Case study: How Airpods helped Apple's wearables division become the third largest within the company
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	2 National systems of innovation and entrepreneurship
		Innovation in its wider context
		The role of the state and national 'systems' of innovation
		Why firms depend on the state for so much
		How national states can facilitate innovation
			National scientific capacity and R&D offshoring
			The impact of the economic crisis on innovation
			Fostering innovation in the United States and Japan
			Triple Helix of university-industry-government relationships that drives innovation
		The right business environment is key to innovation
		Waves of innovation and growth: historical overview
		Fostering innovation in 'late-industrialising' countries
		Innovation within the European Union states
		Entrepreneurship
		Entrepreneurship and innovation
		Defining entrepreneurship
		Technological entrepreneurship: a question of context
			Science and technology policy
			Small and medium-sized enterprise
			Innovation policy
			Entrepreneurship policy
		Case study: How Israel became water self-sufficient with advanced technology
		Chapter summary
		Discussion questions
		Key words and phrases
		Websites worth visiting
		References
		Further reading
	3 Public sector innovation
		The importance of the public sector
		What is public sector innovation (PSI) and why do we need it?
		Is there really innovation in government?
		Information systems, e-government and digital government
			Social media
		Differences between private and public sector innovation
		A typology of public sector innovations
		Innovation process
		Innovation, public entrepreneurship and governance paradigms
		The output: Public value
		Case study: People's innovation - Parkrun
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	4 Managing innovation within firms
		Organisations and innovation
		The dilemma of innovation management
		Innovation dilemma in low technology sectors
		Dynamic capabilities
		Managing uncertainty
			Pearson's uncertainty map
			Applying the uncertainty map in practice
		Managing innovation projects
		Organisational characteristics that facilitate the innovation process
			Growth orientation
			Organisational heritage and innovation experience
			Vigilance and external links
			Commitment to technology and R&D intensity
			Acceptance of risks
			Cross-functional cooperation and coordination within organisational structure
			Receptivity
			Space for creativity
			Strategy towards innovation
			Diverse range of skills
		Industrial firms are different: a classification
		Organisational structures and innovation
			Formalisation
			Complexity
			Centralisation
			Organisational size
		The role of the individual in the innovation process
		IT systems and their impact on innovation
		Management tools for innovation
			Innovation management tools and techniques
			Applying the tools and guidelines
			Innovation audit
		Case study: Gore-Tex® and W.L. Gore & Associates: an innovative company and a contemporary culture
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	5 Operations and process innovation
		Operations management
		The nature of design and innovation in the context of operations
			Design requirements
			Design and volumes
			Craft-based products
			Design simplification
			Reverse engineering
		Process design
		Process design and innovation
			The relationship between product and process innovation
			Managing the manufacturing: R&D interface in process industries
			Stretch: how innovation continues once investment is made
		Innovation in the management of the operations process
			Triggers for innovation
		Design of the organisation and its suppliers: supply chain management
			Business process re-engineering (BPR)
		Lean innovation
		Case study: Innovation on the production line
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
Part Two Turning technology into business
	6 Managing intellectual property
		Intellectual property
		Trade secrets
		An introduction to patents
			Novelty
			Inventive step
			Industrial applications
		Exclusions from patents
		The patenting of life
		The configuration of a patent
		Patent harmonisation: first to file and first to invent
		Some famous patent cases
		Patents in practice
		Expiry of a patent and patent extensions
			Patent extensions
		The use of patents in innovation management
		Patent trolls
		Do patents hinder or encourage innovation?
		Alternatives to patenting
		Trademarks
			Satisfy the requirements of section 1(1)
			Be distinctive
			Not be deceptive
			Not cause confusion
		Brand names
		Using brands to protect intellectual property
			Exploiting new opportunities
			Brands, trademarks and the internet
		Duration of registration, infringement and passing off
		Registered designs
		Copyright
		Remedy against infringement
			Damages
			Injunction
			Accounts
		Counterfeit goods and IP
		Case study: How developments in electronic sensors create destruction in the disposable nappy industry
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	7 Managing organisational knowledge
		The Battle of Trafalgar
		Technology trajectories
			The acquisition of firm-specific knowledge
			The resource-based perspective
			Dynamic competence-based theory of the firm
			Developing firm-specific competencies
			Competencies and profits
			Technology development and effort required
		The knowledge base of an organisation
			The whole can be more than the sum of the parts
			Organisational heritage
			When the performance of the organisation is greater than the abilities of individuals
			Characterising the knowledge base of the organisation
		The learning organisation
		Innovation, competition and further innovation
			Dominant design
			How firms cope with radical and incremental innovation
		Developing innovation strategies
			Leader/offensive
			Fast follower/defensive
			Cost minimisation/imitative
			Market segmentation specialist/traditional
		A technology strategy provides a link between innovation strategy and business strategy
		Case study: The cork industry, the wine industry and the need for closure
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	8 Strategic alliances and networks
		Defining strategic alliances
		The fall of the go-it-alone strategy and the rise of the octopus strategy
		Complementary capabilities and embedded technologies
			Interfirm knowledge-sharing routines
		Forms of strategic alliance
			Licensing
			Supplier relations
			Outsourcing
			Joint venture
			Collaboration (non-joint ventures)
			R&D consortia
			Industry clusters
			Low technology industry rely on networks for innovation
			Innovation networks
			The 'virtual company'
		Motives for establishing an alliance
		The process of forming a successful strategic alliance
		Risks and limitations with strategic alliances
		The role of trust in strategic alliances
			The concept of trust
			Innovation risks in strategic outsourcing
			Eating you alive from the toes up
		The use of game theory to analyse strategic alliances
		Game theory and the prisoner's dilemma
		Use of alliances in implementing technology strategy
		Case study: Pizza delivery with unmanned drones
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	9 Research and development
		What is research and development?
			The traditional view of R&D
		R&D management and the industrial context
		R&D investment and company success
		Classifying R&D
			The operations that make up R&D
		R&D management and its link with business strategy
			Integration of R&D
		Strategic pressures on R&D
			The technology portfolio
			The difficulty of managing capital-intensive production plants in a dynamic environment
		Which business to support and how?
			Skunk works
			Setting the R&D budget
		Evaluating R&D projects
			Evaluation criteria
		Case study: The long and difficult 13-year journey to the marketplace for Pfizer's Viagra
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	10 Open innovation and technology transfer
		Background
			The dominant economic perspective
		Open innovation
			The paradox of openness
		The acquisition of external technology
			Level of control of technology required
		Introduction to technology transfer
			Information transfer and knowledge transfer
		Models of technology transfer
			Licensing
			Science park model
			Intermediary agency model
			Directory model
			Knowledge Transfer Partnership model
			Ferret model
			Hiring skilled employees
			Technology transfer units
			Research clubs
			European Space Agency (ESA)
			Consultancy
		Limitations and barriers to technology transfer
			NIH syndrome
		Absorptive capacity: developing a receptive environment for technology transfer
			Linking external technology to internal capabilities
		Managing the inward transfer of technology
			Technology transfer and organisational learning
		Case study: CSI and genetic fingerprinting
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
Part Three New product development
	11 Business models
		What is a business model?
		The business model and the business plan
		The range of business models
			The sixteen business model archetypes
			Revenue models
			Enterprise models
			Industry models
		The parts of the business model
			The offering
			The customer side
			The infrastructure
			The finances
		The business model dilemma of technology shifts
		Considerations in designing a business model
			Switching costs
			Scalability
			Recurring revenues
			Cashflow
			Getting others to do the work
			Protecting the business from competitors
			Changing the cost structure
			Intellectual property is an asset
			The technology licence and business relationships
			Continual adaptation of the business model
		The licensing business model
			Income from licensing
			Marketing issues related to the licensing model
			Financial and strategic implications
			Costs and benefits of the licensing model
			Other strategic uses of licensing
		Case study: Developing a new product for the teeth whitening market
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	12 Market adoption and technology diffusion
		Time lag between innovation and useable product
		Innovation and the market
			Innovation and market vision
			Analysing internet search data to help adoption and forecasting sales
			Innovative new products and consumption patterns
			Marketing insights to facilitate innovation
			Lead users
			Users as innovators in the virtual world
		Crowdsourcing for new product ideas
		Frugal innovation and ideas from everywhere
		Innovation diffusion theories
			Beacon products
			Seasonality in innovation diffusion
			The Bass Diffusion Model
		Adopting new products and embracing change
			Market adoption theories
		Case study: How three students built a business that could affect world trade
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	13 New product development
		Innovation management and NPD
			Product development as a series of decisions
			New products and prosperity
		Considerations when developing an NPD strategy
			Ongoing corporate planning
			Ongoing market planning
			Ongoing technology management
			Opportunity analysis/serendipity
		NPD as a strategy for growth
			Market penetration
			Market development
			Product development
			Diversification
			A range of product development opportunities
		What is a new product?
			Defining a new product
			Classification of new products
			Repositioning and brand extensions
			New product development as an industry innovation cycle
		Overview of NPD theories
			The fuzzy front end
			Customer cocreation of new products
			Time to market
			Agile NPD
		Models of new product development
			Departmental-stage models
			Activity-stage models and concurrent engineering
			Cross-functional models (teams)
			Decision-stage models
			Conversion-process models
			Response models
			Network models
		Case study: Umbrella wars: GustBuster® and senz°
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	14 Market research and its influence on new product development
		Market research and new product development
		The purpose of new product testing
		Testing new products
		Techniques used in consumer testing of new products
			Concept tests
			Test centres
			Hall tests/mobile shops
			Product-use tests
			Trade shows
			Monadic tests
			Paired comparisons
			In-home placement tests
			Test panels
		When market research has too much influence
		Discontinuous new products
		Market research and discontinuous new products
		Circumstances when market research may hinder the development of discontinuous new products
		Technology-intensive products
		Breaking with convention and winning new markets
		When it may be correct to ignore your customers
		Striking the balance between new technology and market research
			Using suppliers and lead users to improve product variety
		The challenge for senior management
		Case study: Dyson, Hoover and the bagless vacuum cleaner
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
	15 Managing the new product development process
		New products as projects
		The Valley of Death
		The key activities that need to be managed
			Assembling knowledge
			The generation of business opportunities
			Developing product concepts: turning business opportunities into product concepts
			The screening of business opportunities
			New technology product blogs
			Development of product prototypes
			Technical testing
			Market testing and consumer research
			How virtual worlds can help real-world innovations
			Market introduction
		NPD across different industries
		Organisational structures and cross-functional teams
			Teams and project management
			Functional structures
			Matrix structures
			Corporate venturing
			Project management
			Reducing product development times through computer-aided design
		The marketing/R&D interface
		High attrition rate of new products
		Case study: An analysis of 3M, the innovation company
		Chapter summary
		Discussion questions
		Key words and phrases
		References
		Further reading
Publisher's acknowledgements
Index
Back Cover