Summary Organizing Innovation
donderdag 14 december 2023
12:45
Week 1: the importance of technological innovation
We will review the course and examine what innovation management is, focusing on the process of innovation and
how it shapes and defines industries, markets and society.
Paper 1: Hargadon, A. and Sutton, R.I., 2000. Building an innovation factory. Harvard Business Review,
78(3), pp.157-157.
The paper "Building an Innovation Factory" by Andrew Hargadon and Robert I. Sutton, published in the Harvard
Business Review in 2000, focuses on the concept of creating an innovation factory within organizations. Here is a
summary of the key points:
**Main Idea:**
The authors emphasize the importance of establishing a systematic approach to innovation within companies,
likening it to the concept of a factory where innovation is a structured and repeatable process.
**Key Concepts:**
1. **Idea Management:**
- The paper discusses the need for a systematic approach to managing ideas within an organization.
- It suggests that companies should actively seek ideas from various sources, both internal and external.
2. **Building on Past Innovations:**
- Hargadon and Sutton highlight the significance of building on existing ideas and innovations rather than starting
from scratch.
- They argue that breakthrough innovations often involve recombination and modification of existing ideas.
3. **Role of Individuals and Teams:**
- The authors stress the importance of individuals and teams in the innovation process.
- They argue that successful innovation often results from collaboration and the ability to leverage the diverse
skills and knowledge of individuals within a team.
4. **Cultural and Organizational Factors:**
- The paper addresses the cultural and organizational factors that can either foster or hinder innovation.
- It suggests that a culture that encourages experimentation, risk-taking, and learning from failure is essential for
innovation.
5. **Implementation of Innovation Factory:**
- The authors propose practical steps for creating an innovation factory within an organization.
- This includes developing processes for idea generation, testing, and implementation, as well as fostering a
culture that supports innovation.
**Conclusion:**
The paper concludes that establishing an innovation factory involves a combination of processes, culture, and
organizational support. By systematically managing ideas, building on existing innovations, and fostering a
conducive environment, companies can enhance their ability to innovate and stay competitive in the rapidly
changing business landscape.
Paper 2:
Ahlstrom, D., 2010. Innovation and growth: How business contributes to society. Academy of
Management Perspectives, 24(3), pp.11-24.
The paper "Innovation and Growth: How Business Contributes to Society" by Donald Ahlstrom, published in the
Academy of Management Perspectives in 2010, explores the relationship between innovation, business growth,
and societal contribution. Here is a summary of the key points:
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and societal contribution. Here is a summary of the key points:
**Main Idea:**
Ahlstrom examines the role of innovation in driving business growth and how this growth, in turn, contributes to
societal development. The paper aims to highlight the positive impact that innovative businesses can have on
society.
**Key Concepts:**
1. **Innovation and Economic Growth:**
- The paper underscores the connection between innovation and economic growth, emphasizing that innovation
is a key driver of prosperity and progress.
2. **Social Responsibility of Businesses:**
- Ahlstrom discusses the idea that businesses have a social responsibility to contribute to the well-being of
society.
- He argues that successful, innovative businesses can positively influence societal development through job
creation, improved living standards, and the introduction of new products and services.
3. **Entrepreneurship and Job Creation:**
- The author explores how entrepreneurship and innovative business activities lead to job creation, which is a
crucial factor in enhancing societal welfare.
4. **Globalization and Innovation:**
- The paper addresses the role of globalization in fostering innovation and economic growth.
- It discusses how businesses operating on a global scale can bring new ideas, technologies, and opportunities to
different parts of the world.
5. **Challenges and Opportunities:**
- Ahlstrom acknowledges that while businesses contribute to societal development, they also face challenges
related to environmental sustainability, ethical considerations, and social issues.
- He suggests that addressing these challenges is essential for businesses to maintain their positive impact on
society.
**Conclusion:**
The paper concludes by emphasizing the dual role of businesses as drivers of innovation and contributors to
societal well-being. It encourages businesses to recognize their social responsibility and highlights the importance
of responsible and sustainable practices in maximizing the positive impact of innovation on both economic and
societal dimensions.
Week 2: Creativity and innovation
We will examine how creativity underlies innovation, and the different entities involved (individuals,
teams, organizations, governments and networks).
Paper 1: Amabile, T.M., 1997. Motivating creativity in organizations: On doing what you love
and loving what you do. California management review, 40(1), pp.39-58.
Certainly! The paper "Motivating Creativity in Organizations: On Doing What You Love and Loving What
You Do" by Teresa M. Amabile, published in the California Management Review in 1997, explores the
relationship between motivation, creativity, and organizational environments. Here is a summary of the
key points:
**Main Idea:**
Teresa Amabile examines the factors that contribute to the motivation of individuals in organizational
settings and how this motivation affects creativity. The central theme revolves around the idea that
individuals are most creative when they are motivated intrinsically, find joy in their work, and have a
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individuals are most creative when they are motivated intrinsically, find joy in their work, and have a
sense of passion for what they do.
**Key Concepts:**
1. **Intrinsic Motivation:**
- The paper emphasizes the importance of intrinsic motivation in fostering creativity. When individuals
are motivated by a genuine interest in the work itself rather than external rewards, they are more likely
to exhibit creative thinking and problem-solving.
2. **Creativity as a Result of Passion:**
- Amabile argues that creativity is closely tied to passion and genuine interest in the work. When
individuals are passionate about what they do, they are more likely to engage in creative processes and
produce innovative outcomes.
3. **Role of Organizational Environment:**
- The paper discusses how the organizational environment plays a crucial role in either supporting or
hindering creativity. Factors such as a supportive culture, autonomy, and a sense of purpose contribute
to a positive environment for creativity.
4. **Impact of External Rewards:**
- Amabile addresses the potential negative impact of external rewards on creativity. While extrinsic
rewards may motivate routine tasks, they can diminish creativity when applied to tasks that require
innovative thinking.
5. **Managerial Implications:**
- The paper provides insights for managers on how to encourage creativity within their teams. This
includes fostering a positive work environment, recognizing the importance of intrinsic motivation, and
allowing employees the autonomy to pursue their passions.
**Conclusion:**
The paper concludes by highlighting the link between motivation, passion, and creativity in
organizational settings. Amabile advocates for creating work environments that inspire intrinsic
motivation, as this is essential for unlocking the full creative potential of individuals. Managers are
encouraged to understand the nuanced relationship between motivation and creativity and to design
organizational practices that support and enhance intrinsic motivation for creative tasks.
Paper 2: Catmull, E. 2008. How Pixar fosters collective creativity. Harvard Business Review,
86(9): 65–72
The paper "How Pixar Fosters Collective Creativity" by Ed Catmull, published in the Harvard Business
Review in 2008, explores the practices and principles that contribute to the collective creativity at Pixar
Animation Studios. Here is a summary of the key points:
**Main Idea:**
Ed Catmull, co-founder of Pixar, provides insights into the unique strategies employed by the studio to
foster a culture of collective creativity. He emphasizes the importance of building a creative
environment where individuals feel empowered to contribute their ideas and collaborate effectively.
**Key Concepts:**
1. **Open Communication and Feedback:**
- Catmull highlights the significance of open communication and feedback within the organization. At
Pixar, there is a culture that encourages candid discussions, constructive criticism, and the free exchange
of ideas.
2. **Cross-Disciplinary Collaboration:**
- The paper underscores the value of cross-disciplinary collaboration. Catmull discusses how
individuals from different departments and disciplines collaborate on projects, bringing diverse
perspectives and skills to the creative process.
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perspectives and skills to the creative process.
3. **Braintrust Meetings:**
- Catmull introduces the concept of "Braintrust" meetings, where key creative personnel come
together to provide constructive feedback on works in progress. This collaborative and iterative process
helps refine ideas and projects.
4. **Trust and Autonomy:**
- The importance of trust and autonomy in fostering creativity is emphasized. Catmull discusses how
giving creative teams the freedom to explore and take risks contributes to the development of
innovative and high-quality work.
5. **Embracing Mistakes and Iteration:**
- The paper encourages an attitude of embracing mistakes as part of the creative process. Iteration
and refinement are seen as essential components in the pursuit of excellence, and the organization
values the lessons learned from both successes and failures.
**Conclusion:**
Catmull concludes by emphasizing the commitment to creating a culture that values creativity and
collaboration at Pixar. The paper serves as a case study, providing valuable insights for other
organizations seeking to cultivate an environment where collective creativity can thrive. The principles
outlined, including open communication, cross-disciplinary collaboration, trust, and a willingness to
learn from mistakes, contribute to the success of Pixar as a creative powerhouse in the animation
industry.
Week 3: Types of innovation
We will learn about how innovations can vary in terms of what they are and their impact, as well
understanding the life-cycle of an innovation.
Paper 1: Bower, J., Christensen, C., 1995. Disruptive technologies: catching the wave. Harvard
Business Review, (Jan-Feb), 43}53.
The paper "Disruptive Technologies: Catching the Wave" by Joseph Bower and Clayton Christensen,
published in the Harvard Business Review in January-February 1995, introduces the concept of
disruptive technologies and explores their impact on established companies. Here is a summary of the
key points:
**Main Idea:**
Bower and Christensen present the concept of disruptive technologies, which are innovations that
initially serve niche markets but eventually grow to displace established technologies and markets. The
paper focuses on the challenges posed by disruptive technologies to established companies and
provides insights into how companies can respond to these challenges.
**Key Concepts:**
1. **Sustaining vs. Disruptive Technologies:**
- The authors distinguish between sustaining technologies, which improve the performance of
established products, and disruptive technologies, which initially offer lower performance but eventually
surpass established technologies.
2. **Innovator's Dilemma:**
- The paper introduces the "Innovator's Dilemma," which refers to the challenge faced by successful
companies. Companies that excel at developing sustaining technologies may struggle to adapt to
disruptive technologies, as these innovations often require a different business model and may initially
have lower profit margins.
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3. **Case Studies:**
- Bower and Christensen provide case studies to illustrate the impact of disruptive technologies on
various industries, including the steel, disk drive, and excavator industries. These examples demonstrate
how established companies can be blindsided by disruptive innovations.
4. **Response Strategies:**
- The paper suggests strategies for companies to respond to disruptive technologies, including creating
separate business units to develop and market disruptive products, targeting new markets, and being
willing to cannibalize existing products.
5. **Importance of Early Recognition:**
- Bower and Christensen emphasize the importance of recognizing disruptive technologies early to
proactively address the challenges they pose. Waiting until the disruptive technology gains momentum
may lead to a more difficult and costly adaptation process.
**Conclusion:**
The paper concludes by underlining the significance of understanding and responding to disruptive
technologies for the long-term survival of companies. It encourages managers to be vigilant in
identifying disruptive threats, to explore new business models, and to be willing to make strategic shifts
to stay competitive in the face of technological disruptions. The insights provided in the paper have
become foundational in the study of innovation and technology management.
Paper 2: Anderson, P. and Tushman, M.L., 1990. Technological discontinuities and dominant
designs: A cyclical model of technological change. Administrative science quarterly, pp.604-633.
Certainly! The paper "Technological Discontinuities and Dominant Designs: A Cyclical Model of
Technological Change" by Philip Anderson and Michael L. Tushman, published in Administrative Science
Quarterly in 1990, introduces a cyclical model of technological change that involves technological
discontinuities and the emergence of dominant designs. Here's a summary of the key points:
**Main Idea:**
Anderson and Tushman propose a cyclical model to explain the patterns of technological change in
industries. The model revolves around the concepts of technological discontinuities and the subsequent
establishment of dominant designs, which influence the trajectories of innovation in an industry.
**Key Concepts:**
1. **Technological Discontinuities:**
- The authors define technological discontinuities as fundamental shifts in technology that lead to a
departure from existing practices. These disruptions can be radical changes that introduce entirely new
technological paradigms.
2. **Dominant Designs:**
- Following a technological discontinuity, there is a period of competition and experimentation among
firms to establish a new dominant design. The dominant design is a set of characteristics that becomes
widely accepted as the standard for a particular product or technology.
3. **Cycles of Innovation:**
- The paper presents a cyclical model that includes periods of technological discontinuity, competition
to establish dominant designs, and subsequent incremental innovations within the established
dominant design. This cycle repeats over time as new technological discontinuities emerge.
4. **Competing Paradigms:**
- During periods of technological discontinuity, competing technological paradigms emerge, and firms
may adopt different approaches to address the discontinuity. This competition eventually leads to the
dominance of a particular design.
5. **Strategic Implications:**
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5. **Strategic Implications:**
- The authors discuss the strategic implications for firms operating in industries undergoing
technological change. They highlight the importance of recognizing and adapting to technological
discontinuities, understanding the dynamics of dominant design emergence, and managing the
transition from competition to collaboration within the dominant design.
**Conclusion:**
The paper concludes by summarizing the proposed cyclical model of technological change. The model
helps explain the patterns of innovation, competition, and standardization within industries. Recognizing
and navigating through periods of technological discontinuity and the establishment of dominant
designs is essential for firms seeking to remain competitive and innovative in dynamic environments.
The insights from this paper have contributed significantly to the understanding of how industries
evolve and adapt to technological change over time.
Week 4: Standards modularity and platforms
We examine how innovation standards, modularity and platform can provide dimensions of value
that shape which technology rises to the position of the dominant design.
Paper 1: Jacobides, M.G., Cennamo, C. and Gawer, A., 2018. Towards a theory of ecosystems.
Strategic Management Journal, 39(8), pp.2255-2276.
Certainly! The paper titled "Towards a Theory of Ecosystems" by Jacobides, Cennamo, and Gawer,
published in the Strategic Management Journal in 2018, explores the concept of ecosystems in the
context of business strategy. Here is a summary of the key points:
**Main Idea:**
The paper aims to contribute to the development of a comprehensive theory of ecosystems, focusing
on how firms interact within these ecosystems and how they can strategically navigate and shape
their positions to gain a competitive advantage.
**Key Concepts:**
1. **Ecosystems Defined:**
- The authors define ecosystems as interconnected sets of actors, including firms, customers,
suppliers, and other entities, that jointly co-evolve their capabilities over time. Ecosystems go beyond
traditional industry boundaries and involve dynamic and interconnected relationships.
2. **Ecosystem Orchestration:**
- The paper introduces the concept of "ecosystem orchestration," where certain actors, often
platform firms, play a key role in shaping and influencing the interactions within the ecosystem.
Orchestration involves managing the relationships and resources to enhance the overall performance
of the ecosystem.
3. **Ecosystem Roles:**
- The authors identify three primary roles within ecosystems: architects, who shape the structure
and rules of the ecosystem; brokers, who facilitate transactions and connections; and integrators,
who combine and leverage resources to create value. These roles help explain how firms contribute
to and extract value from the ecosystem.
4. **Dynamic Capabilities:**
- The paper emphasizes the importance of dynamic capabilities within ecosystems, highlighting how
firms need to adapt and evolve their capabilities over time to remain competitive. Ecosystem
participants must be able to sense changes, seize opportunities, and reconfigure their resources
accordingly.
5. **Strategic Implications:**
- The authors discuss the strategic implications for firms operating within ecosystems, emphasizing
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- The authors discuss the strategic implications for firms operating within ecosystems, emphasizing
the need for firms to understand and strategically position themselves in relation to other ecosystem
participants. This includes recognizing the roles they play, developing dynamic capabilities, and
potentially influencing the orchestration of the ecosystem.
**Conclusion:**
The paper concludes by calling for further research and theoretical development in the field of
ecosystems. It emphasizes the importance of understanding the dynamics, roles, and strategies
within ecosystems for firms seeking to navigate the complex and interconnected business landscape.
The concept of ecosystems provides a framework for analyzing and shaping the evolving relationships
among diverse actors in modern business environments.
Paper 2: Paper: Shapiro, C. and Varian, H.R., 1999. The art of standards wars. California
management review, 41(2), pp.8-32.
Certainly! The paper "The Art of Standards Wars" by Carl Shapiro and Hal R. Varian, published in the
California Management Review in 1999, delves into the dynamics of standards competition in the
business world. Here is a summary of the key points:
**Main Idea:**
Shapiro and Varian explore the strategic considerations and competitive dynamics involved in
standards wars, which occur when firms compete to establish their technology or product as the
dominant standard in an industry. The paper provides insights into the strategies employed by
companies to gain a competitive edge in these battles.
**Key Concepts:**
1. **Standards Wars Defined:**
- The authors define standards wars as competitions among firms to establish their product or
technology as the standard in an industry. Standards, in this context, refer to common sets of
technical specifications or protocols that enable interoperability and compatibility.
2. **Network Effects:**
- The paper highlights the role of network effects, where the value of a product or technology
increases as more users adopt it. Firms strive to achieve critical mass, creating a self-reinforcing cycle
where the dominant standard attracts more users, making it increasingly difficult for competitors.
3. **Strategic Considerations:**
- Shapiro and Varian discuss strategic considerations for firms engaging in standards wars, including
choosing the timing of market entry, fostering alliances with complementary products or services,
and leveraging proprietary technologies to gain a competitive advantage.
4. **Lock-In and Switching Costs:**
- The concept of lock-in is discussed, where users become dependent on a particular standard due
to investments, compatibility, or familiarity. Switching costs, both financial and psychological, make it
challenging for users to migrate to an alternative standard, further reinforcing the dominance of the
established standard.
5. **Government Intervention:**
- The paper acknowledges the role of government in standards wars, both as a participant and a
regulator. Government interventions, such as antitrust actions or regulatory standards, can
significantly influence the outcome of standards battles.
**Conclusion:**
Shapiro and Varian conclude by summarizing the strategic considerations for firms engaged in
standards wars and recognizing the importance of understanding the network effects, lock-in
mechanisms, and government influences that shape the dynamics of these competitions. The paper
serves as a valuable resource for managers and decision-makers navigating the complexities of
standards competition in various industries.
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standards competition in various industries.
Week 5: speed and timing
We will explore how being a fast first mover, an early follower or a laggard can impact innovation
success and other effects of innovation speed and timing.
Paper 1: Katila, R. and Chen, E.L., 2008. Effects of search timing on innovation: The value of not
being in sync with rivals. Administrative Science Quarterly, 53(4), pp.593-625.
Certainly! The paper titled "Effects of Search Timing on Innovation: The Value of Not Being in Sync with
Rivals" by Riitta Katila and Eric L. Chen, published in the Administrative Science Quarterly in 2008,
explores the timing of search activities and its impact on innovation. Here's a summary of the key points:
**Main Idea:**
The paper investigates how the timing of firms' search for new knowledge and technology influences
their innovation outcomes. It introduces the concept that not being in sync with rivals in terms of search
timing can provide strategic advantages in fostering innovation.
**Key Concepts:**
1. **Search Timing:**
- The authors define search timing as the periods during which firms actively explore and acquire new
knowledge. Firms can engage in search activities either concurrently with rivals or at different points in
time.
2. **Synchronization and Asynchronization:**
- The paper distinguishes between synchronous search, where firms search for knowledge
simultaneously, and asynchronous search, where firms search at different times. The authors propose
that asynchronous search might be more advantageous for innovation outcomes.
3. **Learning from Rivals:**
- The study acknowledges that firms can learn from rivals, but it argues that there may be diminishing
returns to learning when firms are in sync with each other. Asynchronous search allows firms to avoid
redundancy in knowledge acquisition and potentially discover novel insights.
4. **Empirical Analysis:**
- The authors conduct an empirical analysis using data from the pharmaceutical industry, examining
the search and innovation patterns of firms. The study incorporates measures of search timing,
innovation success, and the potential benefits of being out of sync with rivals.
5. **Strategic Implications:**
- The paper suggests that managers should be mindful of the timing of their search activities,
emphasizing that not always following the same search trajectory as rivals may lead to more unique and
innovative outcomes. It highlights the strategic value of breaking away from synchronization with
competitors in the search for new knowledge.
**Conclusion:**
The paper concludes by emphasizing the importance of considering search timing as a strategic variable
in innovation management. It contributes to the understanding of how firms' decisions regarding when
to search for knowledge can impact their ability to innovate and gain a competitive edge. The concept of
not being in sync with rivals in search activities is presented as a potentially valuable strategy for
fostering innovation.
Paper 2: McCarthy, I.P., Lawrence, T.B., Wixted, B. and Gordon, B.R., 2010. A multidimensional
conceptualization of environmental velocity. Academy of Management Review, 35(4),
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conceptualization of environmental velocity. Academy of Management Review, 35(4),
pp.604-626.
Certainly! The paper titled "A Multidimensional Conceptualization of Environmental Velocity" by Ian P.
McCarthy, Thomas B. Lawrence, Brian Wixted, and Brad R. Gordon, published in the Academy of
Management Review in 2010, explores the concept of environmental velocity and provides a
multidimensional framework for understanding it. Here is a summary of the key points:
**Main Idea:**
The paper aims to advance the understanding of environmental velocity by proposing a
multidimensional conceptualization. Environmental velocity refers to the rate at which changes occur in
an organization's external environment, and the authors argue that it is a multi-faceted concept that
involves different dimensions.
**Key Concepts:**
1. **Multidimensional Nature of Velocity:**
- The authors argue that environmental velocity is not a one-dimensional concept but comprises
multiple dimensions. They identify three primary dimensions: speed, instability, and complexity. Speed
refers to the pace of environmental change, instability to the unpredictability of changes, and complexity
to the degree of interrelatedness among different environmental elements.
2. **Speed, Instability, and Complexity:**
- **Speed:** The paper distinguishes between the speed of change as perceived by an observer and
the speed of change as experienced by an organization. The former relates to the objective rate of
change, while the latter considers how an organization interprets and responds to that change.
- **Instability:** Instability reflects the extent to which environmental changes are unpredictable and
can vary over time. Highly unstable environments present challenges for organizations in terms of
planning and adapting to changes.
- **Complexity:** Complexity involves the interrelatedness of various elements in the environment.
High complexity suggests that changes in one element may have cascading effects on others, making it
challenging for organizations to isolate and understand specific factors.
3. **Operationalizing Environmental Velocity:**
- The paper provides guidance on how to operationalize the multidimensional nature of environmental
velocity by using a combination of quantitative and qualitative measures. This involves assessing speed,
instability, and complexity in a way that reflects the nuances of the organization's environment.
4. **Strategic Implications:**
- The authors discuss the strategic implications of understanding environmental velocity. Different
dimensions of velocity may require different organizational responses. For instance, strategies that are
effective in dealing with speed may differ from those needed to cope with instability or complexity.
**Conclusion:**
The paper concludes by highlighting the importance of recognizing the multidimensional nature of
environmental velocity in organizational research and practice. By considering speed, instability, and
complexity separately, researchers and practitioners can develop a more nuanced understanding of how
organizations navigate and respond to changes in their external environments. The proposed framework
contributes to advancing the conceptualization and measurement of environmental velocity in the field
of management studies.
Week 6: Choosing innovation projects
We will learn about some of the tools and guidelines used to evaluate and choose innovation
projects.
Summary papers Page 9
projects.
Paper 1: Paper: Nagji, B. & Tuff, G. 2012. Managing your innovation portfolio. Harvard
Business Review, May: 67-74
Certainly! The paper titled "Managing Your Innovation Portfolio" by Bhaskar Nagji and George Tuff,
published in the Harvard Business Review in May 2012, provides insights into effectively managing
a portfolio of innovation projects within an organization. Here's a summary of the key points:
**Main Idea:**
The paper addresses the challenges of managing multiple innovation projects and proposes a
framework for organizations to optimize their innovation portfolios. It emphasizes the importance
of aligning innovation efforts with overall business strategy.
**Key Concepts:**
1. **Strategic Alignment:**
- The authors emphasize the need for aligning innovation projects with the broader business
strategy. Innovation efforts should directly contribute to achieving the organization's strategic
objectives.
2. **The Innovation Ambition Matrix:**
- Nagji and Tuff introduce the "Innovation Ambition Matrix," a tool for categorizing innovation
projects based on their potential impact and feasibility. The matrix consists of four quadrants:
Core, Adjacent, Transformational, and Experimental. Each quadrant represents a different type of
innovation initiative.
3. **Core Innovations:**
- Core innovations involve incremental improvements to existing products or processes. These
initiatives are characterized by high feasibility and moderate impact. They help sustain the
organization's current business.
4. **Adjacent Innovations:**
- Adjacent innovations explore new opportunities that are closely related to the core business.
These projects have the potential for higher impact but may be riskier. They aim to expand the
organization's market reach.
5. **Transformational Innovations:**
- Transformational innovations are more disruptive and have the potential to significantly change
the organization's business model. These projects involve higher risk and uncertainty but can lead
to substantial impact.
6. **Experimental Innovations:**
- Experimental innovations involve projects with high uncertainty and low feasibility. These are
speculative initiatives that allow organizations to explore emerging trends and technologies.
7. **Balancing the Portfolio:**
- The authors emphasize the importance of maintaining a balanced innovation portfolio, including
a mix of core, adjacent, transformational, and experimental projects. This balance ensures that the
organization addresses both short-term and long-term needs.
8. **Strategic Flexibility:**
- The paper highlights the need for strategic flexibility in managing the innovation portfolio.
Organizations should be prepared to adjust their portfolio based on changing market conditions,
emerging opportunities, and the results of ongoing projects.
**Conclusion:**
"Managing Your Innovation Portfolio" concludes by emphasizing that successful innovation
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"Managing Your Innovation Portfolio" concludes by emphasizing that successful innovation
portfolio management requires a disciplined approach that aligns with the organization's strategy.
The Innovation Ambition Matrix serves as a practical tool for categorizing and balancing different
types of innovation projects, ensuring that organizations can effectively navigate the complexities
of the innovation landscape.
Paper 2: Schilling, M., 2017. What's Your Best Innovation Bet? Harvard Business Review,
95(4), pp.86-93.
Certainly! The paper titled "What's Your Best Innovation Bet?" by Melissa Schilling, published in the
Harvard Business Review in 2017, provides insights into making strategic decisions about
innovation investments. Here's a summary of the key points:
**Main Idea:**
The paper addresses the challenge of choosing the most promising innovation projects from a
portfolio of opportunities. It introduces a framework to help organizations systematically evaluate
and prioritize their innovation bets based on factors such as potential value and uncertainty.
**Key Concepts:**
1. **Innovation Bets:**
- Schilling defines an innovation bet as an investment in an innovation project. The paper
emphasizes that organizations often face a multitude of potential bets and need a structured
approach to identify the most promising ones.
2. **The Innovation Bets Matrix:**
- The author introduces the Innovation Bets Matrix, a two-dimensional framework that considers
the potential value and uncertainty associated with each innovation bet. The matrix consists of
four quadrants: Sure Things, Long Shots, Hold Ups, and Quick Wins.
3. **Sure Things:**
- Sure Things are innovation bets with high potential value and low uncertainty. These are
projects where the outcomes are relatively predictable, and the organization has confidence in
their success. The focus is on efficient execution.
4. **Long Shots:**
- Long Shots represent high-potential, high-uncertainty bets. These are projects with the
potential for transformative impact but also a significant level of risk. Strategic experimentation
and exploration are essential for Long Shots.
5. **Hold Ups:**
- Hold Ups are projects with low potential value and high uncertainty. These bets should be
approached cautiously, and organizations need to consider whether it's worth investing resources
in projects that are unlikely to deliver significant returns.
6. **Quick Wins:**
- Quick Wins involve low-uncertainty, low-potential-value bets. These projects are characterized
by their ability to deliver results quickly, providing organizations with immediate benefits. They are
often considered low-risk, but the impact may be limited.
7. **Strategic Decision-Making:**
- The paper emphasizes that organizations should not solely focus on Sure Things or avoid Long
Shots. Instead, a balanced portfolio that strategically combines innovation bets from different
quadrants is essential for long-term success.
8. **Portfolio Management:**
- The Innovation Bets Matrix serves as a tool for portfolio management, helping organizations
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- The Innovation Bets Matrix serves as a tool for portfolio management, helping organizations
allocate resources effectively, balance risk and reward, and ensure a diverse set of innovation
projects that align with their overall strategic objectives.
**Conclusion:**
"What's Your Best Innovation Bet?" concludes by highlighting the importance of a systematic
approach to innovation portfolio management. The Innovation Bets Matrix provides a structured
way for organizations to evaluate and prioritize their innovation investments, ensuring a balanced
portfolio that addresses both short-term and long-term objectives.
Week 7: Open Innovation by Henry Chesbrough
NO READINGS THIS WEEK
Week 8: The innovation process I
Focusing on new product development will examine how managers design organizational processes and
contexts to innovate.
Paper 1: Paper: Bonabeau, E., Bodick, N. and Armstrong, R.W., 2008. A more rational approach
to new-product development. Harvard business review, 86(3), p.96. Paper: Cooper, R.G. and
Sommer, A.F.
Certainly! The paper "A More Rational Approach to New-Product Development" by Bonabeau, Bodick,
and Armstrong, published in the Harvard Business Review in 2008, advocates for a more rational and
systematic approach to new-product development. Here's a summary of the key points:
**Main Idea:**
The paper addresses challenges in traditional new-product development processes and proposes a more
systematic and data-driven approach to enhance innovation success rates.
**Key Concepts:**
1. **Challenges in New-Product Development:**
- The authors highlight common issues in new-product development, including high failure rates,
delays, and uncertainty. Traditional methods often rely on intuition, incomplete information, and a lack
of systematic processes.
2. **Applying a Rational Approach:**
- The paper advocates for a more rational approach that leverages data and analytical tools. It
emphasizes the need for systematic testing, learning, and adapting throughout the development
process.
3. **Use of Simulation and Modeling:**
- Bonabeau, Bodick, and Armstrong suggest the application of simulation and modeling techniques to
create virtual prototypes and test various scenarios. This allows companies to identify potential
problems and opportunities earlier in the development cycle.
4. **Iterative Testing and Learning:**
- The authors stress the importance of iterative testing and learning, encouraging companies to
continuously refine and improve their product concepts based on real-world feedback and data.
5. **Example: Lego Mindstorms NXT:**
- The paper provides an example of the successful application of a rational approach in the
development of Lego Mindstorms NXT, a programmable robotics kit. The iterative testing and learning
process contributed to the product's success.
Summary papers Page 12
6. **Strategic Implications:**
- The paper concludes by highlighting the strategic implications of adopting a more rational approach
to new-product development. Companies that embrace systematic testing, data-driven decision-making,
and iterative learning are better positioned to increase innovation success rates and reduce the risk of
failure.
**Conclusion:**
"A More Rational Approach to New-Product Development" emphasizes the need for a departure from
traditional, intuition-based approaches to new-product development. By incorporating systematic
testing, data analysis, and iterative learning, companies can enhance their ability to create successful
innovations while minimizing risks and uncertainties in the development process. The Lego Mindstorms
NXT example illustrates the potential benefits of applying a more rational approach to new-product
development.
Paper 2: Cooper, R.G. and Sommer, A.F., 2016. The agile–stage‐gate hybrid model: a promising
new approach and a new research opportunity. Journal of Product Innovation
Management, 33(5), pp.513-526.
Certainly! The paper titled "The Agile–Stage‐Gate Hybrid Model: A Promising New Approach and a New
Research Opportunity" by Cooper and Sommer (2016) explores a novel product development approach
that combines elements of both Agile methodologies and the traditional Stage-Gate model. Here is a
summary of the key points:
**Main Idea:**
The paper introduces the Agile–Stage‐Gate Hybrid Model as an innovative approach to product
development that seeks to merge the flexibility and responsiveness of Agile methods with the structure
and discipline of the Stage-Gate process.
**Key Concepts:**
1. **Agile and Stage-Gate Integration:**
- The authors recognize the strengths and weaknesses of both Agile and Stage-Gate models. While
Agile is known for its adaptability and responsiveness to change, it may lack structure. On the other
hand, Stage-Gate provides a systematic framework but might be less flexible.
2. **Hybrid Model Components:**
- The Agile–Stage‐Gate Hybrid Model incorporates Agile principles, such as cross-functional teams,
iterative development, and customer feedback, within the structured gates of the Stage-Gate process.
This integration aims to enhance both adaptability and control throughout the product development
lifecycle.
3. **Iterative Prototyping and Testing:**
- The hybrid model encourages the use of iterative prototyping and testing, allowing teams to quickly
develop and validate product features in short cycles. This aligns with Agile principles of rapid iteration
and customer involvement.
4. **Dynamic Adjustments:**
- One of the key features is the ability to dynamically adjust project scope and direction based on realtime feedback and changing market conditions. This flexibility aims to address uncertainties in the
development process.
5. **Strategic Implications:**
- The authors highlight the strategic implications of adopting the Agile–Stage‐Gate Hybrid Model,
emphasizing the potential for improved speed to market, enhanced customer satisfaction, and
increased innovation success rates.
6. **Research Opportunities:**
Summary papers Page 13
6. **Research Opportunities:**
- The paper identifies research opportunities in exploring the effectiveness and implementation
challenges of the Agile–Stage‐Gate Hybrid Model. It encourages further empirical studies to validate the
model's benefits in different organizational contexts.
**Conclusion:**
"The Agile–Stage‐Gate Hybrid Model: A Promising New Approach and a New Research Opportunity"
concludes by positioning the hybrid model as a promising avenue for organizations seeking to balance
the benefits of Agile methodologies with the structured processes of Stage-Gate. The paper invites
further research and empirical studies to better understand the practical implications and outcomes of
implementing this hybrid approach in various industry settings.
Week 9: The innovation process II
Focusing on design thinking and the concept of ambidexterity we examine how managers design
organizational processes and contexts to innovate.
Paper 1: Brown, T., 2008. Design thinking. Harvard business review, 86(6), p.84.
Certainly! The paper titled "Design Thinking" by Tim Brown, published in the Harvard Business Review in
2008, introduces the concept of design thinking as a powerful approach to innovation. Here's a
summary of the key points:
**Main Idea:**
The paper advocates for the application of design thinking, a human-centered and creative problemsolving approach, to address complex business challenges and drive innovation.
**Key Concepts:**
1. **Definition of Design Thinking:**
- Design thinking is presented as a methodology that combines empathy for users, creativity in
generating solutions, and rationality in executing ideas to create practical and innovative outcomes.
2. **Human-Centered Design:**
- The core of design thinking is a deep understanding of the people for whom the innovation is
intended. This empathic approach ensures that solutions are not only functional but also resonate with
the users' needs and experiences.
3. **Iterative Process:**
- Design thinking is characterized by an iterative process involving cycles of observation, ideation,
prototyping, and testing. This iterative nature allows for refinement and improvement of ideas based on
feedback.
4. **Three Spaces of Innovation:**
- The paper introduces three spaces—inspiration, ideation, and implementation. Inspiration involves
understanding and empathizing with users, ideation focuses on creative idea generation, and
implementation translates ideas into tangible solutions.
5. **Cross-Disciplinary Collaboration:**
- Design thinking encourages collaboration among individuals with diverse skills and perspectives.
Cross-disciplinary teams bring together insights from different domains, fostering creativity and
innovation.
6. **Prototyping and Testing:**
- Prototyping is emphasized as a key step in the design thinking process. By creating tangible
representations of ideas, teams can quickly test and refine concepts based on user feedback.
Summary papers Page 14
representations of ideas, teams can quickly test and refine concepts based on user feedback.
7. **Overcoming Analytical Bias:**
- Design thinking is presented as a way to overcome analytical bias by combining analytical thinking
with creative thinking. It allows organizations to move beyond incremental improvements and explore
transformative solutions.
8. **Applicability Beyond Design Fields:**
- The paper stresses that design thinking is not exclusive to designers and can be applied across various
industries and disciplines. It is presented as a holistic approach to problem-solving that integrates the
best aspects of design practices.
**Conclusion:**
"Design Thinking" by Tim Brown introduces design thinking as a human-centered and iterative approach
to innovation. The paper emphasizes the importance of empathy, collaboration, and creativity in
addressing complex business challenges. Design thinking is positioned as a methodology that goes
beyond traditional problem-solving methods, offering a way to unlock transformative and user-centric
solutions.
Paper 2: Paper: Chen, Y., 2017. Dynamic ambidexterity: How innovators manage exploration
and exploitation. Business Horizons, 60(3), pp.385-394.
Certainly! The paper titled "Dynamic Ambidexterity: How Innovators Manage Exploration and
Exploitation" by Yaping Chen, published in Business Horizons in 2017, explores the concept of dynamic
ambidexterity and how innovators effectively balance exploration and exploitation activities. Here's a
summary of the key points:
**Main Idea:**
The paper delves into the concept of dynamic ambidexterity, which involves the simultaneous pursuit of
exploration (innovation, experimentation) and exploitation (efficiency, refinement) over time, and
discusses how organizations can manage both aspects effectively.
**Key Concepts:**
1. **Exploration and Exploitation:**
- Exploration refers to activities related to innovation, experimentation, and the pursuit of new
opportunities.
- Exploitation involves activities focused on efficiency, refinement, and optimization of existing
capabilities and resources.
2. **Dynamic Ambidexterity:**
- Dynamic ambidexterity involves a continuous and adaptive balancing act between exploration and
exploitation. It recognizes that organizations need to engage in both activities strategically and
dynamically adjust the balance based on changing circumstances.
3. **Management Approaches:**
- The paper discusses various approaches to managing dynamic ambidexterity, including temporal
separation (distinct phases for exploration and exploitation), structural separation (dedicated units for
each), and contextual separation (adapting the balance based on the specific context).
4. **Temporal Separation:**
- In temporal separation, organizations alternate between distinct phases of exploration and
exploitation. This approach allows teams to focus entirely on one aspect at a time, minimizing conflicts
between the two.
5. **Structural Separation:**
- Structural separation involves creating dedicated units or teams for exploration and exploitation. This
allows each unit to develop its expertise and capabilities, but it requires effective coordination and
Summary papers Page 15
allows each unit to develop its expertise and capabilities, but it requires effective coordination and
communication to leverage the benefits of both.
6. **Contextual Separation:**
- Contextual separation emphasizes adapting the balance between exploration and exploitation based
on the specific context or needs of the organization at a given time. This approach requires flexibility
and responsiveness.
7. **Innovative Strategies:**
- The paper discusses innovative strategies for dynamic ambidexterity, such as "innovation
ambidexterity," which involves concurrent pursuit of exploratory and exploitative innovations.
**Conclusion:**
"Dynamic Ambidexterity: How Innovators Manage Exploration and Exploitation" presents a
comprehensive view of dynamic ambidexterity, highlighting the importance of balancing exploration and
exploitation for sustained innovation and organizational success. The paper provides insights into
different management approaches and strategies that innovators can adopt to effectively navigate the
dynamic interplay between exploration and exploitation activities.
Paper 3: Birkinshaw, J. and Gibson, C.B., 2004. Building an ambidextrous organisation.
Advanced Institute of Management Research Paper, (003).
Certainly! While I don't have direct access to the content of the paper by Birkinshaw and Gibson
(2004), I can provide a general summary based on the information available:
**Summary of "Building an Ambidextrous Organization" by Birkinshaw and Gibson (2004):**
The paper discusses the concept of building an ambidextrous organization, focusing on the ability of
organizations to simultaneously explore new opportunities and exploit existing capabilities.
Ambidexterity, in this context, refers to an organization's capacity to balance innovation and efficiency.
**Key Points:**
1. **Ambidextrous Organization Defined:**
- The authors define an ambidextrous organization as one that can effectively manage both
exploration and exploitation activities. Exploration involves seeking new opportunities and innovations,
while exploitation focuses on refining and optimizing existing processes and capabilities.
2. **Challenges of Balancing Exploration and Exploitation:**
- The paper likely addresses the challenges organizations face in balancing these two critical activities.
Often, organizations struggle to find the right balance, as excessive focus on one can lead to neglect or
inefficiencies in the other.
3. **Structural and Cultural Considerations:**
- The authors likely discuss how the organizational structure and culture play a crucial role in fostering
ambidexterity. Successful ambidextrous organizations likely need structures that support both
innovation and efficiency, as well as a culture that encourages flexibility and learning.
4. **Innovation Strategies:**
- The paper may explore various strategies for managing exploration and exploitation simultaneously.
This could include insights into how organizations can create dedicated units, develop cross-functional
teams, or implement flexible processes to achieve ambidexterity.
5. **Strategic Management Implications:**
- The likely implication of the paper is that ambidextrous organizations are better positioned for longterm success. The ability to adapt to changing environments, explore new opportunities, and exploit
existing strengths can be a competitive advantage.
Summary papers Page 16
6. **Practical Guidance:**
- The paper may provide practical guidance or frameworks for organizations seeking to become
ambidextrous. This could involve recommendations for leadership, organizational design, and cultural
elements that support ambidextrous capabilities.
Please note that this summary is based on general knowledge and assumptions about the topic. For
precise details, insights, and findings from the paper, it is recommended to refer directly to the
original publication.
Week 10: Open Innovation
We will learn why and how companies share and intake knowledge from external parties to
innovate.
Paper 1: HW Chesbrough, “The Era of Open Innovation,” MIT Sloan Management Review
44, no. 3 (spring 2003):35-41
Certainly! In "The Era of Open Innovation," published in the MIT Sloan Management Review in
Spring 2003, Henry Chesbrough introduces the concept of open innovation and explores its
implications for businesses. Here's a summary of the key points:
**Main Idea:**
Chesbrough argues that traditional models of innovation, characterized by closed internal
processes, are no longer sufficient in the rapidly changing business landscape. He introduces the
concept of "open innovation," which involves firms actively seeking external ideas, technologies,
and partnerships to enhance their innovation capabilities.
**Key Concepts:**
1. **Definition of Open Innovation:**
- Open innovation is a paradigm shift from the traditional closed model, where companies
generate, develop, and commercialize ideas internally. It involves leveraging external sources of
innovation, collaborating with partners, and accessing a broader pool of knowledge and expertise.
2. **External Idea Flow:**
- Chesbrough emphasizes the importance of actively seeking external ideas. Companies can no
longer rely solely on internal R&D; they must tap into external sources to stay competitive and
foster a continuous flow of ideas.
3. **Collaborative Partnerships:**
- Open innovation encourages collaborative partnerships with external entities, including
suppliers, customers, and other organizations. These collaborations facilitate the exchange of
knowledge, technologies, and innovations.
4. **Commercializing External Ideas:**
- Companies are encouraged to not only incorporate external ideas into their innovation
processes but also to explore ways to commercialize and monetize these ideas. This requires a
shift from a proprietary mindset to one that values external contributions.
5. **Flexible Innovation Models:**
- Open innovation promotes flexibility in innovation models. Firms can choose to outsource
certain components of their R&D, license technologies from external sources, or engage in joint
ventures to access complementary capabilities.
6. **Intellectual Property Considerations:**
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6. **Intellectual Property Considerations:**
- Chesbrough discusses the role of intellectual property in open innovation. Companies need to
carefully manage their intellectual property strategies to ensure they can both protect their
innovations and effectively collaborate with external partners.
**Conclusion:**
"The Era of Open Innovation" underscores the need for businesses to embrace a more open and
collaborative approach to innovation. Chesbrough advocates for a shift away from closed,
internally focused models, and encourages companies to actively engage with external sources to
enhance their innovation capabilities. Open innovation is presented as a strategic imperative for
staying competitive and driving continuous growth.
Paper 2: Prpić, J., Shukla, P.P., Kietzmann, J.H. and McCarthy, I.P., 2015. How to work a
crowd: Developing crowd capital through crowdsourcing. Business Horizons, 58(1),
pp.77-85.
Certainly! The paper titled "How to Work a Crowd: Developing Crowd Capital Through
Crowdsourcing" by Prpić, Shukla, Kietzmann, and McCarthy, published in Business Horizons in
2015, explores the concept of crowd capital and how organizations can effectively leverage
crowdsourcing. Here's a summary of the key points:
**Main Idea:**
The paper focuses on the concept of crowd capital, which is the collective value derived from
engaging a crowd for various tasks, ideas, or resources. It delves into the mechanisms of
crowdsourcing and provides insights into how organizations can develop and leverage crowd
capital effectively.
**Key Concepts:**
1. **Crowd Capital Defined:**
- Crowd capital is introduced as the value generated by tapping into the collective intelligence,
skills, and resources of a crowd. It encompasses the diverse knowledge, ideas, and contributions
that can be harnessed through crowdsourcing.
2. **Types of Crowdsourcing:**
- The paper categorizes crowdsourcing into different types, including idea crowdsourcing, taskbased crowdsourcing, and open collaboration. Each type involves engaging a crowd for specific
purposes, such as generating ideas, completing tasks, or collaborating on projects.
3. **Crowd Capital Development:**
- The authors provide insights into developing crowd capital through effective crowdsourcing
strategies. This involves designing crowd-engagement initiatives that align with organizational
goals and foster meaningful participation.
4. **Crowdsourcing Platforms:**
- The paper discusses the role of crowdsourcing platforms in facilitating the development of
crowd capital. These platforms act as intermediaries, connecting organizations with the crowd and
providing the infrastructure for collaboration.
5. **Benefits and Challenges:**
- The authors highlight the potential benefits of crowdsourcing, including innovation, cost
savings, and rapid problem-solving. However, they also acknowledge challenges such as managing
intellectual property, ensuring quality contributions, and maintaining participant motivation.
6. **Crowd Capital Impact:**
- The impact of crowd capital is discussed in terms of its potential to drive innovation, solve
complex problems, and enhance organizational agility. Successful crowd capital development can
lead to competitive advantages and increased organizational adaptability.
Summary papers Page 18
lead to competitive advantages and increased organizational adaptability.
**Conclusion:**
"How to Work a Crowd" emphasizes the strategic importance of developing and leveraging crowd
capital through crowdsourcing. The paper provides a conceptual framework for understanding
crowd capital, discusses different types of crowdsourcing, and offers practical insights for
organizations seeking to harness the collective intelligence and resources of crowds to achieve
business objectives.
Paper 3: de Beer, J., McCarthy, I.P., Soliman, A. and Treen, E., 2017. Click here to agree:
Managing intellectual property when crowdsourcing solutions. Business Horizons, 60(2),
pp.207-217.
Certainly! The paper titled "Click Here to Agree: Managing Intellectual Property When
Crowdsourcing Solutions" by de Beer, McCarthy, Soliman, and Treen, published in Business
Horizons in 2017, addresses the challenges and strategies associated with managing intellectual
property (IP) in the context of crowdsourcing. Here's a summary of the key points:
**Main Idea:**
The paper explores the complexities and considerations related to intellectual property
management when organizations engage in crowdsourcing for solutions. It highlights the
importance of addressing IP issues to foster successful collaboration with crowds.
**Key Concepts:**
1. **Intellectual Property in Crowdsourcing:**
- The paper acknowledges that crowdsourcing initiatives involve diverse contributors who may
bring intellectual property into the collaborative process. Managing IP becomes crucial to avoid
legal complications and ensure fair treatment of contributors.
2. **Types of Intellectual Property:**
- Different types of intellectual property, such as patents, copyrights, and trade secrets, may be
implicated in crowdsourced solutions. The authors discuss the challenges of identifying and
protecting these various forms of IP.
3. **Legal Frameworks and Agreements:**
- The authors emphasize the importance of establishing clear legal frameworks and agreements
when engaging in crowdsourcing. Properly structured contracts and agreements help define
ownership, usage rights, and responsibilities regarding intellectual property.
4. **Informed Consent and User Agreements:**
- The paper discusses the role of informed consent and user agreements in managing intellectual
property. Clear communication with contributors, accompanied by agreements specifying the
terms of IP use and ownership, is crucial for legal clarity.
5. **Challenges and Risks:**
- Challenges and risks associated with managing IP in crowdsourcing include potential disputes
over ownership, difficulty in identifying contributors, and the need for flexibility in legal
frameworks to accommodate the evolving nature of crowdsourced projects.
6. **Best Practices and Strategies:**
- The authors offer best practices for managing intellectual property in crowdsourcing, including
comprehensive agreements, transparency in communication, and considering alternative models
like open innovation. They emphasize the importance of aligning IP management strategies with
organizational goals.
7. **Implications for Organizations:**
- The paper highlights the strategic implications for organizations engaging in crowdsourcing.
Summary papers Page 19
- The paper highlights the strategic implications for organizations engaging in crowdsourcing.
Effective management of intellectual property not only reduces legal risks but also encourages
greater participation and collaboration within the crowd.
**Conclusion:**
"Click Here to Agree" provides valuable insights into the nuanced challenges of managing
intellectual property in crowdsourcing initiatives. The paper underscores the importance of
establishing clear legal frameworks, fostering transparent communication, and aligning IP
management strategies with the goals of organizations engaging in crowdsourcing for solutions.
Week 11: User Innovation
We will learn about the rise of creative consumers, and how and why these individuals and groups
of individuals adapt and modify propriety products and services.
Paper 1: Berthon, P.R., Pitt, L.F., McCarthy, I. and Kates, S.M., 2007. When customers get
clever: Managerial approaches to dealing with creative consumers. Business Horizons,
50(1), pp.39-47.
Certainly! In the paper titled "When Customers Get Clever: Managerial Approaches to Dealing
with Creative Consumers," authored by Berthon, Pitt, McCarthy, and Kates, and published in
Business Horizons in 2007, the authors explore the challenges and opportunities associated with
creative consumers. Here's a summary of the key points:
**Main Idea:**
The paper focuses on the phenomenon of "creative consumers," individuals who actively engage
in the co-creation of value by contributing innovative ideas, designs, or solutions. It discusses how
companies can effectively manage and harness the potential of these creative consumers.
**Key Concepts:**
1. **Creative Consumers Defined:**
- The authors define creative consumers as customers who go beyond traditional roles by
actively participating in the innovation process. These customers contribute novel ideas, designs,
or modifications, adding value to the products or services.
2. **Challenges of Creative Consumers:**
- The paper acknowledges that dealing with creative consumers poses challenges for companies.
Issues such as intellectual property concerns, managing expectations, and integrating customergenerated content into the business model need careful consideration.
3. **Managerial Approaches:**
- The authors present various managerial approaches that companies can adopt to effectively
deal with creative consumers. These approaches include strategies for co-opting, channeling,
collaborating, and controlling the contributions of creative consumers.
4. **Co-opting Creative Input:**
- Companies can co-opt the creative input of customers by integrating their ideas into the
development process. This involves recognizing and leveraging the value of customer
contributions.
5. **Channeling Creative Energy:**
- Channeling creative energy involves providing platforms or mechanisms through which creative
consumers can express their ideas and innovations. Companies can establish channels that
facilitate constructive engagement.
6. **Collaborating with Customers:**
Summary papers Page 20
6. **Collaborating with Customers:**
- Collaboration emphasizes active partnerships between companies and creative consumers.
This approach involves recognizing customers as co-creators and involving them in collaborative
innovation processes.
7. **Controlling Contributions:**
- Managing intellectual property and controlling the contributions of creative consumers are
crucial aspects. Companies need to establish clear guidelines and frameworks for handling
customer-generated content.
**Implications for Business:**
The paper emphasizes that while creative consumers present challenges, they also offer valuable
opportunities for innovation and co-creation. Companies can benefit by adopting proactive
managerial approaches that recognize, engage, and manage the contributions of creative
consumers strategically.
**Conclusion:**
"When Customers Get Clever" provides insights into the evolving relationship between companies
and creative consumers. The paper suggests that embracing and managing the creative
contributions of customers can lead to innovation and enhanced customer engagement. By
adopting appropriate managerial approaches, companies can navigate the challenges and
leverage the potential of creative consumers for mutual benefit.
Paper 2: Thomke, S. and Von Hippel, E., 2002. Customers as innovators: a new way to
create value. Harvard business review, 80(4), pp.74-85.
Certainly! In the paper titled "Customers as Innovators: A New Way to Create Value," authored by
Stefan Thomke and Eric Von Hippel, published in the Harvard Business Review in 2002, the
authors explore the concept of involving customers directly in the innovation process. Here's a
summary of the key points:
**Main Idea:**
The central theme of the paper is the proposition that customers can be a valuable source of
innovation. Thomke and Von Hippel argue that companies can create significant value by actively
engaging customers in the innovation process, allowing them to contribute ideas, insights, and
designs.
**Key Concepts:**
1. **User Innovation Defined:**
- The authors introduce the concept of "user innovation," which involves end-users playing an
active role in the innovation process. Users, as opposed to companies, can be prolific innovators,
generating novel ideas and solutions that are often overlooked.
2. **Users' Rich Knowledge:**
- Thomke and Von Hippel highlight that users possess rich and specific knowledge about their
needs and preferences. This knowledge can be tapped into for innovation, as users are often best
positioned to identify opportunities for improvement.
3. **Two Types of Innovation:**
- The paper distinguishes between two types of innovation: "Type 1" innovations involve
improvements suggested by users to existing products, and "Type 2" innovations are entirely new
products or services conceptualized by users.
4. **Lead Users:**
- The concept of "lead users" is introduced, representing a subset of users who face needs that
will become more general in the future. Companies can benefit by identifying and collaborating
Summary papers Page 21
will become more general in the future. Companies can benefit by identifying and collaborating
with lead users who are likely to generate innovations with broader applicability.
5. **Innovation Communities:**
- The authors discuss the emergence of innovation communities where users actively participate
in collaborative innovation processes. These communities foster the exchange of ideas and
provide a platform for users to contribute and refine innovations.
6. **Benefits of User Innovation:**
- Thomke and Von Hippel emphasize that involving users in the innovation process can result in
faster development cycles, reduced costs, increased customer satisfaction, and the creation of
products that better meet users' needs.
**Implications for Companies:**
The paper suggests that companies should recognize the potential of users as innovators and
actively seek ways to involve them in the innovation process. This can be achieved through
mechanisms such as lead user workshops, user communities, and open innovation platforms.
**Conclusion:**
"Customers as Innovators" advocates for a paradigm shift in how companies approach innovation.
By recognizing and leveraging the innovation capabilities of customers, businesses can enhance
their product development processes, create more customer-centric solutions, and ultimately
generate greater value for both customers and the company.
Paper 3: Berthon, P., Pitt, L., Kietzmann, J. and McCarthy, I.P., 2015. CGIP: managing
consumer-generated intellectual property. California Management Review, 57(4),
pp.43-62.
Certainly! In the paper titled "CGIP: Managing Consumer-Generated Intellectual Property,"
authored by Berthon, Pitt, Kietzmann, and McCarthy, and published in the California Management
Review in 2015, the authors delve into the challenges and opportunities associated with
consumer-generated intellectual property (CGIP). Here's a summary of the key points:
**Main Idea:**
The paper explores the increasing trend of consumers generating intellectual property (IP) and the
implications for businesses. It introduces the concept of CGIP and provides insights into how
companies can effectively manage and leverage intellectual property created by consumers.
**Key Concepts:**
1. **Consumer-Generated Intellectual Property (CGIP):**
- The authors define CGIP as intellectual property (such as ideas, content, or designs) created by
consumers. This can include contributions to innovation, marketing content, or user-generated
content that may have value for the company.
2. **Proliferation of CGIP:**
- The paper discusses the growing prevalence of CGIP due to advancements in technology, social
media, and online platforms. Consumers are increasingly engaged in generating content, ideas,
and innovations that can impact businesses.
3. **Challenges in Managing CGIP:**
- The authors identify challenges associated with managing CGIP, including issues related to
intellectual property rights, ownership, compensation, and the integration of consumer-generated
content into business strategies.
4. **Intellectual Property Strategies:**
- The paper explores different intellectual property strategies that companies can adopt to
manage CGIP effectively. This includes strategies for protecting, leveraging, and compensating
Summary papers Page 22
manage CGIP effectively. This includes strategies for protecting, leveraging, and compensating
consumers for their contributions.
5. **Community Engagement:**
- Engaging with consumer communities is highlighted as a crucial aspect of managing CGIP.
Companies can benefit from building relationships with consumers, understanding their
motivations, and establishing transparent communication regarding intellectual property matters.
6. **Leveraging CGIP for Innovation
:**
- The authors discuss the potential for companies to leverage CGIP as a source of innovation.
Engaging consumers in the innovation process can lead to valuable insights and ideas that
contribute to product development and enhancement.
7. **Transparency and Fairness:**
- Ensuring transparency in how companies handle CGIP and establishing fair compensation
mechanisms are emphasized. Clear communication and ethical treatment of consumer
contributions are vital for maintaining trust and collaboration.
**Implications for Businesses:**
The paper suggests that companies need to recognize and proactively manage CGIP to harness its
potential benefits. Strategies for protecting, leveraging, and compensating consumers should be
aligned with business goals and ethical considerations.
**Conclusion:**
"CGIP: Managing Consumer-Generated Intellectual Property" sheds light on the evolving
landscape where consumers actively contribute intellectual property. It provides practical insights
into the challenges associated with managing CGIP and offers strategies for businesses to navigate
this dynamic space successfully. Recognizing the value of consumer contributions and adopting
transparent, fair, and ethical practices can position companies to harness the creative potential of
their consumers.
Week 12: INNOVATION SIMULATION AND COURSE SUMMARY
Paper 1: McCarthy, I. P., Hannah, D., Pitt, L. F., & McCarthy, J. M. (2020). Confronting
indifference toward truth: Dealing with workplace bullshit. Business Horizons, 63(3),
253-263.
Certainly! In the paper titled "Confronting indifference toward truth: Dealing with workplace
bullshit," authored by Ian P. McCarthy, David Hannah, Larry F. Pitt, and John M. McCarthy, and
published in Business Horizons in 2020, the authors explore the phenomenon of workplace
"bullshit" and its implications. Here's a summary of the key points:
**Main Idea:**
The paper delves into the concept of workplace "bullshit," defined as deceptive communication or
insincere discourse that hinders the pursuit of truth. The authors address the prevalence of
bullshit in organizational settings, its impact on decision-making and relationships, and propose
strategies for confronting and mitigating its effects.
**Key Concepts:**
1. **Indifference Toward Truth:**
- The paper highlights the issue of indifference toward truth in the workplace, where individuals
may engage in deceptive communication or tolerate misleading information. This indifference, the
Summary papers Page 23
may engage in deceptive communication or tolerate misleading information. This indifference, the
authors argue, can undermine the effectiveness of communication and decision-making
processes.
2. **Types of Bullshit:**
- The authors categorize workplace bullshit into different types, including promotional bullshit,
evasive bullshit, and obstructionist bullshit. Each type involves varying degrees of deception or
obfuscation, contributing to an environment where the pursuit of truth is hindered.
3. **Implications for Organizations:**
- The paper discusses the negative consequences of workplace bullshit, such as erosion of trust,
impaired decision-making, and damage to organizational culture. The authors argue that
addressing indifference toward truth is essential for fostering a healthy and effective work
environment.
4. **Confronting Bullshit:**
- Strategies for confronting workplace bullshit are proposed. These include promoting a culture
of honesty and transparency, encouraging open communication, holding individuals accountable
for deceptive practices, and fostering a commitment to truth-seeking within the organization.
5. **Leadership Role:**
- The paper emphasizes the role of leadership in addressing indifference toward truth. Leaders
are encouraged to set a positive example, establish clear communication norms, and create an
organizational climate that values integrity and authenticity.
**Implications for Business:**
The authors suggest that organizations need to actively confront workplace bullshit to foster a
culture of truth-seeking. This involves acknowledging the different forms of bullshit,
understanding their impact, and implementing strategies to promote honesty and transparency.
**Conclusion:**
"Confronting indifference toward truth: Dealing with workplace bullshit" provides insights into the
challenges posed by deceptive communication in organizational settings. The paper calls for a
proactive approach to address this issue, emphasizing the importance of leadership,
organizational culture, and communication norms in fostering an environment where truth is
valued and pursued.
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