BS2402 Innovation & Entrepreneurship
Module Teaching Objectives
 To introduce students to the concept of innovation
 To explain why it is important for all types of firm or
organisation and country economies
 To learn how to innovate and the role of
‘entrepreneurial management’ in this context
1
BS2402 Innovation & Entrepreneurship
Module Learning Outcomes
 Understand what is meant by innovation
 Understand what is meant by entrepreneurship
 Assess why innovation and entrepreneurial
management are important for wealth and value
creation
 Evaluate the potential importance of innovation and
entrepreneurial management in your own
organisation by using what you have learnt
2
BS2402 Innovation & Entrepreneurship
Module Structure Overview
Date
Content
Manual ref
Wed 5th Sept
Introduction to Innovation Unit s 1,2,3
& defining
Assignment Brief.
Entrepreneurship.
Importance of innovation
Define innovation & types.
Recent innovations in org’n
Understand assignment.
Define entrepreneurship/
entrepreneurial
management.
Sat 8th Sept
Entrepreneurial/
innovation mgt process
Context for Innovation.
Factors supporting/
hindering.
Managing the process
Overcoming barriers
Behaviours that impede or
facilitate entrepreneurial
management .
Critical factors/barriers?
Making the innovation
happen
Units 4,5,6
Assignment link
3
BS2402 Innovation & Entrepreneurship
Today’s Agenda
am
9.00 Mktg feedback form
9.10 Recap
9.30 Assignment detail
10.00 Context - external
10.20 BREAK
10.30 Context – internal
Management style &
orientation
12.40 LUNCH
pm
13.40 Innovation Process
13.55 Ideas Generation
15.00 BREAK
15.10 Remainder of
Innovation Process
15.40/16.00 Assignment
Q&A
16.00/16.30 END
(mini breaks as required)
BS2402 Innovation & Entrepreneurship
What is the difference
between invention & innovation?
BS2402 Innovation & Entrepreneurship
INNOVATION: A Definition (E. Roberts)
Good Idea
Invention
+
Successful
Exploitation and
Implementation
= INNOVATION
Innovation as Source of Competitive Advantage for
Economic Renewal
BS2402 Innovation & Entrepreneurship
Five Categories of Innovation
1. ‘Totally new or significantly improved good’ - Product
Innovation (DVD, Walkman, iPod, PC, car)
2. ‘New method of production’ - New Process (Synthetic
Insulin; float glass; iPod; Zara
http://www.msnbc.msn.com/id/5457434/site/newsweek/
3. ‘Opening New Market’ - Applying a product or process to
a new application (Plastic Jug Kettle; Sushi bars; Benihana)
4. New source/ supply of raw materials (Synthetic Slate,
Silicone)
5. New form of organisation (Direct Line, Amazon)
(Joseph Shumpeter, 1934)
BS2402 Innovation & Entrepreneurship
Entrepreneurship
• How did we define it?
BS2402 Innovation & Entrepreneurship
A Useful Definition of Entrepreneurship
‘entrepreneurship is the manifest ability and
willingness of individuals, on their own, in teams,
within and outside existing organisations, to
perceive and create new economic opportunities
(new products, new production methods, new
organisational schemes and new product market
combinations) and to introduce their ideas in the
market, in the face of uncertainty and other
obstacles, by making decisions on location, form
and the use of resources and institutions’
(Wennekers and Thurik, 1999):
BS2402 Innovation & Entrepreneurship
Fitting the entrepreneurial management process onto
innovation using Robert’s innovation model
Good Idea
Invention
INPUTS
Group member
Knowledge,
skills, effort
+
Successful
Exploitation and
Implementation
Entrepreneurial/
Innovation
Management
Process
=
INNOVATION
OUTPUTS
adding or
creating value
11
11
BS2402 Innovation & Entrepreneurship
Entrepreneurial Management
A pattern of management behaviour that produces
innovation (individual, group or firm level)
•
Perceives and Identifies innovative opportunities
•
Takes ‘Risk’ in pursuing this opportunity (link to self-confidence)
•
Finds and Gathers scarce resources into appropriate
combinations to produce an organisation to deliver that
innovation(s)
•
Continually ‘reaches’ for the necessary resources to solve
problems and foster firm growth (Baumol)
Decision-making based on bias and heuristics; networking;
opportunism
•
BS2402 Innovation & Entrepreneurship
CG Adapted Innovation and E’ship Management
Model: Bessant and Tidd 2nd Ed 2011
Strategic Vision and direction
Entrepreneurial
Goals and
Innovation
Context
Recognise
opportunity
Find Resources
Develop
Venture by
picking and
deploying
resources
Create Value
Learning
13
BS2402 Innovation & Entrepreneurship
Management approach to Entrepreneurship
A pattern of management behaviour that produces
innovation (individual, group or firm level)
•
Perceives and Identifies innovative opportunities
•
Takes ‘Risk’ in pursuing this opportunity
•
Finds and Gathers scarce resources into appropriate
combinations to produce an organisation to deliver that
innovation(s)
•
Continually ‘reaches’ for the necessary resources to solve
problems and foster firm growth (Baumol)
Decision-making based on bias and heuristics; networking;
opportunism
•
BS2402 Innovation & Entrepreneurship
Entrepreneurial Management
(manual, unit 4 p 28)
• Entrepreneurial management is becoming a
way of distinguishing a dynamic innovation
capability, where the organisation’s routines
and processes are finely honed to achieve
responsiveness (Teece et al , 1997).
BS2402 Innovation & Entrepreneurship
Entrepreneurial Management Style which on in GTEC (after Stevenson & Gumpert , 1989)
‘PROMOTOR’
‘Entrepreneurial’
‘TRUSTEE’
‘Administrative’
Proactive
Disinclined to change
Tolerant of uncertainty and ambiguity
Guards resources
Able to make incremental changes in
response to environmental pressures
Interested in maintaining
the status quo
Q: What type of manager is your manger?
BS2402 Innovation & Entrepreneurship
Types of Organisation (Burns and Stalker, 1961)
‘mechanistic reproducer’
‘organic innovator’
 Routines and competencies similar
to existing organisations
 Copied routines

 Decisions base on ‘rational’ and
‘scientific’ principles

 Formal planning and budgeting
 Risk averse resource maximisers

 Structured heirarchy


Competencies and routines
significantly different to others
Decisions based on cognitive
biases and heuristics
Incremental change to direction
and resource allocation
expected.
New resource combinations
Overconfidence and optimism
Resource leveragers; use
rather than own
 Flat organisation structure
Where does your organisation sit on this continuum?
BS2402 Innovation & Entrepreneurship
Assignment Brief Detail
BS2402 Innovation & Entrepreneurship
Module Structure Overview
Date
Content
Manual ref
Wed 5th Sept
Introduction to Innovation Unit s 1,2,3
& defining
Assignment Brief.
Entrepreneurship.
Importance of innovation
Define innovation & types.
Recent innovations in org’n
Understand assignment.
Define entrepreneurship/
entrepreneurial
management.
Sat 8th Sept
Entrepreneurial/
innovation mgt process
Context for Innovation.
Factors supporting/
hindering.
Managing the process
Overcoming barriers
Behaviours that impede or
facilitate entrepreneurial
management .
Critical factors/barriers?
Making the innovation
happen
Units 4,5,6
Assignment link
19
BS2402 Innovation & Entrepreneurship
Assignment Brief Recap
Word limit 3,000 words
BS2402 Innovation & Entrepreneurship
Assignment – section 1
• Critically analyse and evaluate the management /
employee behaviour and its ability to support and
foster and achieve innovation within the
organisation (entrepreneurial management
orientation) in which you work.
BS2402 Innovation & Entrepreneurship
Key elements of section 1
•
•
•
•
•
•
•
Critically analyse & evaluate
Current innovation levels & management style
Organisation culture
Organisation structure
Team working
Human capital
Knowledge management
BS2402 Innovation & Entrepreneurship
Marking Criteria – 30%
• Demonstrate knowledge of the many factors that influence
the ability of an organisation to produce innovation outcomes
• Analysis must include entrepreneurial management
orientation i.e. management style likely to facilitate innovation
• Demonstration of an ability to apply these factors to your
organisation, through analysis & evaluation of these factors
that may encourage / discourage entrepreneurial
management orientation & innovation within their work
organisation & critically assess them
BS2402 Innovation & Entrepreneurship
Management/employee behaviour influencing
innovation in your organisation
Factor (Assignment)
Factor (Manual &Tidd)
Current innovation
levels
Your critical reflection
Management style
Leadership, vision (& promotor vs trustee,
strategic management)
Organisation Culture
Involvement in innovation, creative
climate, external/customer focus,
communication, rewards
Structure
Appropriate structure (& mechanistic
bureaucracy vs organic innovator)
Team working
Effective Team working
Human Capital
Key individuals, recruitment, training &
development
Knowledge
management
Learning organisation
BS2402 Innovation & Entrepreneurship
Assignment – 40%
• Identify the critical factors within the
organisation/area which prevent better innovation
supportive management (entrepreneurial
management orientation) and innovation outcomes
• Provide suggestions on how to overcome these
barriers, based on evidence of appropriate reading
in entrepreneurship & innovation management
literatures, clearly indicating the level of difficulty
likely to be encountered in accomplishing them
BS2402 Innovation & Entrepreneurship
Assignment - 40% contd.
• Then identify a specific potential innovation you
would like to carry out within the organisation/area
& identify specific changes in working practice that
would help the implementation of the innovation
with reference to the overall analysis
BS2402 Innovation & Entrepreneurship
Remaining 30 %
• Overall depth & breadth of research & background
reading – 20%
• Clarity of presentation & report writing style,
Harvard Business referencing
BS2402 Innovation & Entrepreneurship
Context for Innovation
Factors Affecting Innovation
BS2402 Innovation & Entrepreneurship
Context for Innovation - External Factors
External factors
• Sector
• Size
• National systems of innovation
• Lifecycle
BS2402 Innovation & Entrepreneurship
Oil and Gas companies
• Generally large scale
• R&D labs
• Process innovation
BS2402 Innovation & Entrepreneurship
Haulage
• Some small businesses
• Customers as source
• Process / service innovation
BS2402 Innovation & Entrepreneurship
IT hardware & software
• Specialist or niche vs. large scale
• Technology driven
• Product and process innovation
BS2402 Innovation & Entrepreneurship
Large Firms
•
•
•
•
•
•
Considerable Resources - £ + people
Large R & D. Budgets / Capital
Economies of Scale
Dominant in innovation in mature industries
Market Power / Mass markets
Balance Risk from innovative projects with ‘cash
cows’
BS2402 Innovation & Entrepreneurship
Small Firms:
• Behavioural Advantage in flexibility and adaptability in
early stages of market and industry development
• Less bureaucracy and inertia preventing change
• Experimentation role
• Early stages of market development before
standardisation - dominant design
BS2402 Innovation & Entrepreneurship
Context for Innovation – National systems
• Natural resources (or lack of)
• Market Pressures
• Local demands
• Competition
• Clusters – eg: related and supporting organisations
• Skilled labour/ competencies
•eg: in production and research
• Management style & corporate governance
• Government policies & activities ?
Adapted from Porter: the competitive advantage of nations, 1990
BS2402 Innovation & Entrepreneurship
The Dynamics of Innovation (with Lifecycle)
(Abernathy-Utterback model in Utterback (1994) p.xvii
Rate of Major Innovation
Product innovation
Process innovation
Fluid phase
Specific phase
Transitional phase
BS2402 Innovation & Entrepreneurship
BREAK
BS2402 Innovation & Entrepreneurship
Context for Innovation
Internal Factors Affecting Innovation
BS2402 Innovation & Entrepreneurship
Class discussion re.Tidd & Beasant self
assessment
How well do we manage innovation?
• Leadership style – where on promotor to trustee
scale?
• Culture – ‘the way we do things around here?’
• Cross functional activity
• Key Personnel
• Team work
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
40
BS2402 Innovation & Entrepreneurship
Shared Vision, leadership & will to
innovate
• Innovation about learning, change often risky &
disruptive
• Often organisations & individuals develop ways
to maintain the status quo
• Entrepreneurs challenge the accepted rules of
the game
• Core competencies v core rigidities
• One of concerns in innovative organisations is
finding ways to ensure individuals with good
ideas can progress them – ‘intrareneurship’
BS2402 Innovation & Entrepreneurship
Role of ‘Top’ Management
• Changing mindset & refocusing organisational
energies requires articulation of a new vision
• Need to demonstrate long term commitment &
involvement
• Need to prepared to take risk & utilise lessons from
failiure
• Leaders with focus who enable their people to
focus
BS2402 Innovation & Entrepreneurship
‘Bottom up’ innovation
• IBM turnaround partly due to bottom up team
initiative – entry into e-business
• Tidd & Beasant – outline development of the idea
of the execution of leadership vision by
management drones to argue that they may be
‘two constructs on a continuum, rather than two
opposing characteristics’
BS2402 Innovation & Entrepreneurship
Appropriate organisation structure
• “Organisations – rigid hierarchies top down, one
way communication – unlikely to be supportive of
smooth info flows & cross functional cooperation
• Burns & Stalker – outlined characteristics of
‘organic’ & ‘mechanistic’ organisations
• Innovation not confined to R & D depts. Innovation
becoming corporate wide – cross functional
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
45
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
46
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
47
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
48
BS2402 Innovation & Entrepreneurship
Activity
• How does organisational structure impact on
innovation levels in your organisation?
• In Groups of 3 (5mins – then share back & exchange
ideas)
BS2402 Innovation & Entrepreneurship
Key Individuals
• Champions – help overcome complexity &
uncertainty involved in innovation
• Roles:
– Sources of critical technical knowledge -often inventor /
team leader
– Organisational sponsor / project team leader
– Business innovator
– Technological gatekeeper
BS2402 Innovation & Entrepreneurship
High involvement in innovation
• Quality Miracle – Japanese ‘continuous improvement’
Involvement of a wide range of- personnel providing limited,
incremetal innovations (kaizens)
• XYZ systems – rewards
• Needs organisational culture to support & encourage over the
long term. Now recognised as a major source of competitive
advantage (P117 Tidd & Beasant)
• Secondary effect – more people involved in change the more
receptive they become to it
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
52
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
53
BS2402 Innovation & Entrepreneurship
Effective Team Working
• Research on high performing teams
– Selection & investment in team building
– Clearly defined tasks & objectives
– Good balance of team roles & match to
individual behavioural style
• Team working critical determinant to success – can
bridge boundaries, cross functional teams bring
together different knowledge.
• Provide a decentralised & agile operating structure
BS2402 Innovation & Entrepreneurship
Effective Team Working –Tidd & Beasant
•
•
•
•
•
•
•
•
•
•
•
A clear, common & elevating goal
Results-driven structure
Competent team members
Unified commitment
Colloborative climate
Standards of excellence
Principled leadership
Appropriate use of the team
Participation in decision making
Team spirit
Embracing appropriate change
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
56
BS2402 Innovation & Entrepreneurship
Creative Climate
• Reward systems – innovative organisations look to
reward creative behaviour & to encourage its
emergence. Linked to the idea of intrapreneurship internal entrepreneurship. Concept of rewarding
failiure, people learn from their mistakes and will
get it right – look at Dyson philosophy
• www.whatifinnovation.com
– Matt Kingdon – 3 elements of Innovation energy: attitude,
behaviours & structures
– http://vimeo.com/15118963
– http://www.youtube.com/watch?v=0ZgajaPkwyE
BS2402 Innovation & Entrepreneurship
In Groups (5min discussion; 3min share back)
What policies are in place in your organisation to:
• Encourage the identification of innovative opportunities?
• Reward the successful implementation of innovative
suggestions?
• What sort of rewards, tangible and intangible, might
change your behaviour?
( think individuals and teams)
Alternative – if time, but possibly need to allocate different
aspects to each group
BS2402 Innovation & Entrepreneurship
© 2009 John Wiley & Sons Ltd.
www.wileyeurope.com/college/tidd
59
BS2402 Innovation & Entrepreneurship
• Trust & openness: emotional safety in relationships
– people share common values & trust
• Challenge & involvement - degree to which people
are involved in daily operations, long term goals &
visions
• Support & space for ideas – high idea-time
situation where there are possibilities to discuss &
test unplanned impulses & fresh suggestions. Low
idea time – research confirms individuals are less
creative.
BS2402 Innovation & Entrepreneurship
Mechanisms Stimulating Innovation at 3M
MECHANISM
15% Rule
Genesis Grants
Own Business
Opportunities
Dual Ladder
Technical Forums
New Product Forums
EFFECT
Employees are allowed to allocate around
15% of their official time to pursue
independent research, irrespective of their
official project. This rule resulted in the
development of many innovative products at
3M
Under Genesis grants employees were
provided around $50,000 financial support for
their research for developing prototypes and
conducting market tests. This stimulated
entrepreneurship at 3M
3M gave employees the opportunity to run
their projects depending on the sales. This
stimulated internal entrepreneurship at 3M
This approach at 3M enabled technical
employees to move up the career path without
compromising their research / professional
interests
Technical forums were established to give 3M
employees the opportunity to present their
technical papers and exchange ideas with
others.
These forums were established to enable all
divisions to discuss new ideas, thus
encouraging the generation of ideas across all
divisions
Source: James, C. Collins, and Jerry I. Porras Built to Last (Harper Business, 1997)
BS2402 Innovation & Entrepreneurship
• Risk Taking – high risk taking: bold new initiatives
can be taken even when the outcomes are known.
People feel ‘they can take a gamble’. Risk avoiding
climate – cautious, safe, decide to ‘sleep on the
matter’ It’s about balance between risk & stability
• Freedom – ‘the independence in behaviour
exerted by people in the organisation’
BS2402 Innovation & Entrepreneurship
Boundary Spanning
• The extent to which innovation has become an
open process involving richer networks across &
between organisations
• Successful innovating organisations – an
orientation which is essentially open to new stimuli
BS2402 Innovation & Entrepreneurship
Matt Kingdon Interview
Please can you pull out key points re the
internal context for discussion
BS2402 Innovation & Entrepreneurship
Entrepreneurial Management
(manual, unit 4 p 28)
• Entrepreneurial management is becoming a
way of distinguishing a dynamic innovation
capability, where the organisation’s routines
and processes are finely honed to achieve
responsiveness (Teece et al , 1997).
BS2402 Innovation & Entrepreneurship
Corporate Entrepreneurship and
Innovation Management
Corporate Leadership:
Transformational
Market / Industry
competition
Corporate Renewal:
Organisational
Corporate Venturing:
Product / Process
Firm 1
Firm 2
New Business within
Firm
Product / Process
Innovation
Wilson (04)
Entrepreneurial
Management:
Dynamic capability
Innovation
management:
Focus on one off
process (i.e. product /
process innovation)
BS2402 Innovation & Entrepreneurship
Barriers to Innovation
BS2402 Innovation & Entrepreneurship
Barriers to Innovation
Reluctance to close down
failing programmes or
organisations
Over-reliance on high
performers as sources of
innovation
Culture of risk aversion
Delivery pressures and
administrative burdens
Short-term budgets and
planning horizons
No innovation
No rewards or incentives to
innovate or adopt innovations
Poor skills in active risk or
change management
Figure 6:1:
Technologies available but
constraining cultural or
organisational arrangements
Barriers to Innovation in the Public Sector Source: Cabinet Office (2003) p.31
BS2402 Innovation & Entrepreneurship
Barriers to Innovation
• Path Dependence
• Convergence of reward and incentive schemes
with innovation reasoning
• Access to sufficient capital to fund long term
innovation
• Organisational inability to tolerate uncertainty
innovation requires chaos
BS2402 Innovation & Entrepreneurship
The Innovation Process
BS2402 Innovation & Entrepreneurship
Simple Model of the Innovation Process
(Tidd & Bessant, 2009)
Do we have a clear innovation strategy?
Search – how
Select – what are
can we find
we going to do –
opportunities for and why?
innovation?
Implement –
how are we
going to make it
happen?
Capture – how
are we going to
get the benefits
from it?
Do we have an innovative organisation?
BS2402 Innovation & Entrepreneurship
The Innovation Management Process
(Source ABI Assisting Business Competitiveness CDRom, 2003)
Stage
1
Idea Generation
2
IdeaStage
Screening
4
Market strategyStage
and business
analysis
Product development
Stage 5and testing
Market introduction
Stage 6& life-cycle
management
Customer Integration
Concept development
Stage 3 and testing
BS2402 Innovation & Entrepreneurship
The Innovation Process: Conceptual Model
Incubating and
prototyping
Generating
possibilities
Replication
and scaling up
Analysing
and learning
Source: Government Strategy Unit (2003) p.12
BS2402 Innovation & Entrepreneurship
Seven ‘sources’ of innovation (areas to exploit)
•
The unexpected
•
The incongruous
•
Process need
•
Industry and market structure
•
Demographics
•
Changes in perception
•
New knowledge
(Source: Drucker)
BS2402 Innovation & Entrepreneurship
Inspiration for new ideas mostly stems from the
presence of, and interplay between....
• an urgent or nagging business imperative
• different perspectives on this imperative
• an environment conducive to reflection
(“successful innovation” Michael Syrett and Jean Lammiman, 2002)
BS2402 Innovation & Entrepreneurship
Sources of Ideas
Environmental scanning
Suppliers/
Distributors/
Partners
Organisation
>50%
Competitors
30%
Customers/
Users
30%
BS2402 Innovation & Entrepreneurship
PEOPLE WANT THINGS
WANT BUT
DOESN’T EXIST?
SEEN BUT CAN’T
FIND IT?
OUT OF DATE
OR STYLE?
Customers or
interest group
QUALITY…NOT
GOOD ENOUGH?
NOT EASY TO USE?
IT’S TOO
EXPENSIVE?
Adapted from Scottish Enterprise Foundation (U. Stirling) 1990
BS2402 Innovation & Entrepreneurship
Generating Innovation Possibilities
through crossing boundaries
Internal
c
Users, frontline staff,
middle mgrs
External
Boundary spanning activities
• Networking
Govt regulation &
support
Inspection & audit
Organisational
heterogeneity/
diversity
• Scanning of
environment
• Benchmarking
Supportive
culture – eg. cross
disciplinary
working
• R&D
University
research; science &
tecnhology parks
Other public
services &
countries
BS2402 Innovation & Entrepreneurship
Changing your perspective
Look around you:
Now choose a colour…
Source: www.spaceforideas.uk.com (Professor Wiseman)
Now look around again – focusing on any objects
that match your chosen colour
Does the scene look the same? Try with a
different colour…
BS2402 Innovation & Entrepreneurship
Innovation on your doorstep - A TASK
How could the Foundation Degree be improved?
Source: University of Teeside
BS2402 Innovation & Entrepreneurship
Brainstorming...
• Generate as many ideas as possible - the more the better
• Improve and build on each others’ ideas: as well as
suggesting new ideas, try and develop someone else’s ideas
by proposing improvements or ways of combining ideas
• encourage long shots: crazy-sounding ideas can often spark
off original and practical thoughts
• encourage rather than criticize others: praise other group
members’ ideas to encourage them to come up with more
rather than turning off their creative tap by adverse
comments
• always record all ideas on a sheet of paper or a flip chart
BS2402 Innovation & Entrepreneurship
Changing perspective .…
• Take Something Away
• The foundation degree has no lecturers
• Provocation
• The foundation degree makes you less employable
• Analogy
• The foundation degree is like a car servicing garage
(window/ rugby game etc..) because......
• Blank Sheet – back to original purpose
• Providing access to higher education to wider group
BS2402 Innovation & Entrepreneurship
General Points on Opportunities
• Creating Value not lowering cost
• Opportunities not the same for everyone
• Not every
opportunity
Good
Idea
is
a
business
• Look for opportunities in emerging markets
rather than established ones: entry barriers
• Does not need to be hi tech / high risk
innovation: Schumpeterian innovation
Derived from Birley and Muzyka in Mastering Enterprise
BS2402 Innovation & Entrepreneurship
Q: How are your progressing with an Innovation Idea?
• In 3s.
•Take turns to share your ideas, or your plans to generate
innovative ideas. Help each other create a plan. (1min each)
• Where will you go to for your innovation ideas?
• Who to?/sources? – new employees; customers; suppliers; outside
sector? This group?
• Techniques useful? – eg: brainstorm with work colleagues?
• Where do you have your best ideas?
• How will you create space for yourself to reflect?
BS2402 Innovation & Entrepreneurship
The Innovation Process: Conceptual Model
Incubating and
prototyping
Generating
possibilities
Replication
and scaling up
Analysing
and learning
Source: Government Strategy Unit (2003) p.12
BS2402 Innovation & Entrepreneurship
Incubation, prototyping & managing risk...
 Is the innovation likely to succeed?
 Is the problem the innovation is designed to address
well-formulated?
 Have similar innovations been tried elsewhere?
 Is there is a clear plan for how the idea can be
developed?
 Are the potential benefits commensurate with the
development costs?
 PLUS:
 Does the innovation fit with the organisation goals?
 Is the organisation capable of coping with it?
In effect…how do you (safely) turn a good
idea into an innovative opportunity?
BS2402 Innovation & Entrepreneurship
Safe Spaces...
Safe Space
Pilot
Pathfinders
Zones
Incubators
Characteristic
Provides a local or small-scale test
Similar to pilot but linked strategically to
subsequent full-scale development
Testing ground for new ideas within pre-determined
arbitrary boundary
Support & resource infrastructure bringing together
various different parties within one ‘safe space’
BS2402 Innovation & Entrepreneurship
The Innovation Process: Conceptual Model
Incubating and
prototyping
Generating
possibilities
Replication
and scaling up
Analysing
and learning
Source: Government Strategy Unit (2003) p.12
BS2402 Innovation & Entrepreneurship
Replication and Scaling Up...
In general, Governments have relied on two sets of
mechanisms:


law, central direction and administrative
command; and
dissemination of evaluations of pilots, case
studies and best practice
Both can be appropriate in particular circumstances but
both have their weaknesses.
Q:
Can you think of some examples of each?
BS2402 Innovation & Entrepreneurship
The Innovation Process: Conceptual Model
Incubating and
prototyping
Generating
possibilities
Replication
and scaling up
Analysing
and learning
Source: Government Strategy Unit (2003) p.12
BS2402 Innovation & Entrepreneurship
Discussion – Innovation Process
Identify and example of an innovation in your
organisation that you have been involved in.
To what extent were the phases identified and
explicitly or implicitly followed?
Which phase appeared to the most challenging?
Why?
BS2402 Innovation & Entrepreneurship
Summary of the Day
Reviewed Assignment
Considered context for innovation
 External and internal factors
 Reflected on own organisation internal context – ready
for first part of assignment
Barriers to entry
Innovation Process
 Put the internal factors affecting innovation into the
context of the innovation process.
 Started to think creatively about our innovation idea(s) –
ready for final section of assignment