Managing
Innovation
Strategy
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Innovation Types
Product Innovation
Process Innovation
Strategy Innovation
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Product Innovation
The process of bringing to life a new
product/service to solve the
customer's problem benefits
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Process Innovation
Process innovations increase bottom-line
profitability, reduce costs, raise productivity,
and increase employee job satisfaction.
The customer also benefits from this type
of innovation by virtue of a stronger, more
consistent product or service value
delivery.
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Strategy Innovation
Strategy innovation is about challenging
existing industry methods of creating
customer value in order to meet newly
emerging customer needs, add additional value,
and create new markets and new customer
groups for the sponsoring company.
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Innovation Levels
Incremental Innovation
Substantial Innovation
Breakthrough Innovation
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McDonald’s Innovation
INNOVATION
Product
Process
Breakthrough
Big Mac
Substantial
Value Meals Hamburger
University
Opening for
Breakfast
Incremental
Green
New French
Milkshakes Fry Cookers
for St. Pat’s
Day
Boston
Markets
Acquisition
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Franchisee
Regulations
of Quality
Strategy
Global
Expansion
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Innovation Model
Model 1: The Suggestion System
Model 2: Continuous Improvement Teams
Model 3: New Venture Teams
Model 4: The Incubator Lab
Model 5: Innovation Teams
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Model 1 : The Suggestion System
Suggestion programs provide
employees an organized system through
which to submit ideas and to have
those ideas considered by a panel of
dispassionate reviewers, who accept or
reject them depending on preestablished criteria from management.
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Model 2:
Continuous
Improvement
Teams
• Unlike suggestion programs
that focus on motivating
individual contributors to come
forward with their ideas,
Continuous Improvement
Model systems rely on team
collaboration.
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Model 2:
Continuous
Improvement
Teams
• Sometimes called Kaizen
Teams, (kaizen is the
Japanese word for continuous
improvement), they mostly
focus on incremental, rather
than substantial or
breakthrough process on
product improvements.
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Model 2:
Continuous
Improvement
Teams
• Nevertheless, when these
seemingly small, continuous
tweaks produced by firm's
rank and file workers are
added up, they can be
substantial in their bottomline impact.
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Model 4: New Venture Teams
• The goal of the New Venture Team Model is
decidedly not cost-saving ideas, not
incremental improvements, and not process
innovations.
• Rather, the goal is more apt to be surfacing
(and funding) unconventional product, service,
or strategy ideas that have the potential to be
breakthroughs.
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Model 5: The Incubator
Lab
• The Incubator Model of
Idea Management
gained popularity along
side the dot-corn bubble
of the late 1990s and
lost favor just as fast.
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Model 5: The Incubator Lab
• Beneath the hype, the basic idea of incubators was
not too different from the skunkworks approach
pioneered by Lockheed during World War II to
rapidly develop and launch new aircraft by forming
small, dedicated teams separate from the
bureaucracy.
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The gist of this approach is to set up a
company-wide network of people with
demonstrated skills in innovation and
give
them
very
clear
marching
orders:
Model 7:
Innovation Go out and find some new ideas that
Teams have promise.
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Innovation
Strategy
• Scan and monitor the sources of
innovation opportunity.
• Create a personal future-scan
system.
• Integrate future scanning with
your company's idea
management system.
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Innovation
Strategy
• Assault industry assumptions.
• Broaden your company's vision.
• Strategize your place in the first
mover, fast follower race.
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Producing
Innovative Products
• Study previous
breakthrough products.
• Focus relentlessly on
value creation
throughout the
development process.
• Design and implement
a new product
development process.
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Producing
Innovative Products
• Use a learning strategy
for more radical ideas.
• Use cross-functional
teams.
• Use rapid prototyping.
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Source of Reference:
Robert B. Tucker, Driving Growth Through Innovation,
Berrett-Koehler Publishers.
You can obtain this excellent book at this link : http://www.amazon.com/Driving-Growth-Through-InnovationTransforming/dp/1576754952/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1219804049&sr=1-1
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