Joe Tidd
and
John Bessant
ISBN: 978-0-470-99810-6
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
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Chapter 5
Sources of innovation
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
2
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
3
CONTENTS
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Introduction
Sources
Search tools & methods
Innovation search space
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www.managing-innovation.com
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1. SOURCES OF INNOVATIONINTRODUCTION
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1.1 Climate & Creativity
“Innovation is the specific tool of
entrepreneurs, the means by which they
exploit an opportunity for a different
business or service” – Drucker
• Creativity = ideas, concepts & inventions
• Entrepreneurship = couples opportunities &
resources
• Innovation = process of development &
commercialisation
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www.managing-innovation.com
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Strategies for idea/concept generation:
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research & analysis
imitate or adapt
seek inspiration
consult ‘creative’ types
apply systematic creativity methods & tools
– Eg:SCAMPERR
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• Eg: China’s imitation of Mercedes:Geely
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Business creativity training is not:
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logic, research, analysis or intelligence
artistic creativity / right-brain
being crazy / a rebel
removal of structures, inhibitions or fear
brainstorming or team building
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
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Attributes of the creative mind:
• conceptual fluency - multiple responses
• mental flexibility - re-frame & change level
• defers judgement - avoid premature
analysis & criticism
• tolerance - accepts ambiguous, diverse or
opposing views
• challenging - assumptions & authority
• risk-taking - high energy, imagination
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Do:
develop broad idea
challenge everything
re-frame problem
multiple answers
consider in-action
identify obstacles
Don’t:
collect detailed data
accept assumptions
tackle given problem
find the answer
confuse action & solution
focus on objectives
celebrate success & learn from failure
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
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Some elements of business creativeness:
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stop, pause, postpone decision or (re)action
challenge perceptions & assumptions
provoke & generate alternatives
construct & test speculations & hypotheses
focus
© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
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2. SOURCES of INNOVATION
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2.1 Knowledge push
• Knowledge push(Pengetahuan)
– Innovation that came out from scientific research
– R & D processes
• Eg: Intel chips
• Antibiotics
• CDs
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2.2 Need pull
• Need Pull(Keperluan)
– “Neccessity is the mother of invention”
– Particularly important at mature stages in
industry/product life cycles
– Eg: Energy saving cars
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2.3 Shocks to the system
• Whose needs?
– Existing customers
– New & potential customers eg: small
entrepreneurs who want to save costs
• Emerging markets
– “Bottom of the pyramid”-80% under the poverty
line
– Eg: Poverty in Arica-created demand for cheap
food in low prices
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2.4 Advertising and mass
customization
• Challenge in markets-buyers want variety and
customization at the same time
• Eg: Rising individuality has opened up new
market for customized products
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www.managing-innovation.com
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© 2009 John Wiley & Sons Ltd.
www.managing-innovation.com
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2.5 Users as innovators
• Create innovative solutions on a continuing
basis
• Eg: Tech-hobbyists keep on providing ideas on
technological innovations-new models for pc,
phones
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2.6 Extreme Users
• “Tough customers mean good designs”
• The users in the toughest environments may
have needs which by definition are at edge
• Eg: Military needs inspire more innovations
within the security industry
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2.7 Watching Others
• Concept of benchmarking
• Eg: Korea manufacturing field that came from
the concept of “copy and develop”
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2.8 Combination & recombination
• ‘Crossover’
• Combination of industries
• Eg: Nike fashionable shock-absorbing shoescombination of arts, health and fitness
industry
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2.9 Regulation
• Restrict certain things and opens up new ones
• Eg: New tax rules on cigarettes- restricts sales
of cigarettes, opens up new market of ‘fake
cigarettes’ and aids to quit smoking
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2.10 Futures and forecasting
• Exploring alternatives
• Eg; Exxon and Shell exploring possibilities for
alternatives for oil and gas
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2.11 Accidents
• Mistakes that turned out to be important
inventions
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3. TOOLS FOR INNOVATION
SOURCES
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3.1 Internal knowledge
connections
• Important to recognize that much of the
knowledge lies in the experience and ideas of
ordinary employees rather than solely with
specialists in formal innovation depts like R &
D or market research
• Internal entrepreneurs=“intrapreneurship”
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3.2 External connections
• Key stakeholders
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3.3 TOOLS OF INNOVATION
SOURCES-SUMMARY
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www.managing-innovation.com
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3.4 Exercise-SCAMPER
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S Substitute- Remove some part of the accepted situation, thing, or concept and replace it
with something else.
C Combine -Join, affiliate, or force together two or more elements of your subject matter and
consider ways that such a combination might move you toward a solution.
A Adapt-Change some part of your problem so that it works where it did not before.
M Minify/Magnify- Consider many of the attribute of the thing you're working on and
change them, arbitrarily, if necessary. Attributes include: size, shape, other dimensions,
texture, color, attitude, position, history, and so on.
P Purpose (Put to other use)-Modify the intention of the subject. Think about why it exists,
what it is used for, what it's supposed to do. Challenge all of these assumptions and suggest
new and unusual purposes.
E Eliminate-Arbitrarily remove any or all elements of your subject, simplify, reduce to core
functionality
R Reverse- Change the direction or orientation. Turn it upside-down, inside-out, or make it go
backwards, against the direction it was intended to go or be used.
R Rearrange -Similar to Reverse, modify the order of operations or any other hierarchy
involved.
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• You are a product executive for Perodua and
you need to come up with a new eco-friendly
Perodua model based on Viva. Using
SCAMPERR, invent a new innovative product
suitable for the global market.
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4. CONCLUSIONS
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• There are various sources of innovation and
creativity
• Innovation process can be triggered
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