INNOVATION MANAGEMENT
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1 INNOVATION MANAGEMENT Strategy and Implementation using the Pentathlon Framework SECOND EDITION KEITH GOFFIN & RICK MITCHELL Includes 77 innovation case studies - from the service and manufacturing sectors and from around the globe macmillan
2 Table of Contents List of Case Studies xi Acknowledgements xvii Preface xix About the Authors xxi Copyright Material xxiii 1 KEY ASPECTS OF INNOVATION MANAGEMENT. 1 Introduction 1 Innovation Drivers 2 Technological Advances; Changing Customers and Needs; Intensified Competition; Changing Business Environment; Responding to the Environment Strategic Intent Characteristics Of Innovation 6 Definitions of Innovation; Dimensions of Innovation; Dimensions of Innovation in Services; Degrees of Innovation; Evaluating Dimensions and Degrees; Innovation and Continuous Improvement; Phases of Innovation; Innovation throughout the Organization Key Research On Innovation 20 Macro-Level Investigations; Micro-Level Investigations; Project-Level Investigations; Service Innovation Research Managing Innovation - The Challenge, 26 Need for a Framework; The Innovation Pentathlon Framework The Structure Of This Book 32 Format of the Chapters Summary 34 2 INNOVATION AND ECONOMICS 41 Introduction 41 Economic Measures Of Innovation 42 Factors Mediating Innovation 44 Company Size and Innovation; Market Sectors and Innovation; Education Levels, National Culture and Innovation; Government Policies and Innovation Impacts Of Innovation 51 Innovation and Business Cycles; Innovation and Employment; Innovation and Company Performance; Product Innovation and Growth Diffusion Of Innovations 56 VII
3 VIII TABLE OF CONTENTS The Influence of Product Features; The Adoption Life Cycle Summary^ CONTRASTING SERVICES WITH MANUFACTURING 65 Introduction 65 The Importance Of Services 66 Service and the Economy; R&D.in Services; Manufacturers Need Services Characteristics Of Services 70 Terminology of Services and Manufacturing; Service Delivery; The Servicescape; Service Characteristics and Innovation; Managing Quality in Services Innovation In Services 80 The Need.for Innovation; Managing Service Innovation; New Service Development Processes Services And Innovation Management 85 Summary 86 4 DEVELOPING AN INNOVATION STRATEGY 93 Introduction 93 Innovation Strategy And Stakeholder Satisfaction 97 Kano's Feature Analysis < Technology: The Capability Ceiling 101 The Technology C S' Curve; An Alternative Perspective: Dominant Design; Evolution of Strategy as Technology Matures Customer Satisfaction: Feature Fatigue 109 Disruptive Innovation; Responses to a Disruptive Threat Competition 115 Value Innovation: Blue Ocean Strategies; Protecting the Value Open Innovation 119 Strategic Issues Linking The Components Of Strategy 123 Roadmapping; Scenario Planning The Success Trap 131 Summary GENERATING CREATIVE CUSTOMER-FOCUSED^ IDEAS 139 Introduction ' 139 Creativity 140 Types of Business Creativity; Individual Creativity; Team Creativity and Culture; Creativity Techniques for Innovation Triz 149 Managing Knowledge 150 Nature of Knowledge; Capturing Tacit Knowledge; Promoting Knowledge Transfer. ' Ideas And Innovation 154
4 TABLE OF CONTENTS IX Identifying Customer Needs - Traditional Approaches; Hidden Needs Analysis; Empathic Design; Lead Users; Experimentation; Virtual Communities; Identifying Priorities - Conjoint Analysis; Choosing the Correct Approach to Market Research Protecting Ideas 175 Copyright; Design Right; Trademarks; Patents Summary SELECTING AND MANAGING AN INNOVATION PORTFOLIO 187 Introduction 187 Principles Of Portfolio Management 188 The Need for a Process; Elements of a Good Portfolio Valuing Individual Projects 191 Types of Project; Financial Valuation Methods; Single-Stage Projects; Estimating Probabilities in Projects; Multistage and Network Projects; Comparing the Values of Risky Projects; Valuing Large and Small Portfolios of Projects; Non-financial Methods; Choosing a Valuation Method Choosing And Managing A Portfolio 210 Ranking Projects for Selection; Balance The Management Process ' 216 People Issues; Selecting the Tools Summary IMPLEMENTING INNOVATIONS 227 Introduction 227 Project Management Techniques 229 Setting Project Aims and Tradeoffs; Work Breakdown Structure; The Project Schedule; The Resource; Plan; Agile Project Management Managing Project Risks 236 Collecting Risk Information; Appraising the Risks: The FMEA Process Linking Customer Needs To Product Design 239 Embedding the Features: Quality Function Deployment; Defining and Delivering Service Products Managing Stakeholders 248 Managing An Innovation Department 250 Phase Gates; Managing Simultaneous Projects; Managing Collaborations Summary CREATING AN INNOVATIVE CULTURE 265 Introduction 265 Organizational Culture And Innovation 266
5 TABLE OF CONTENTS Understanding and Assessing Culture; Applying the Cultural Web; Studies of Innovation Culture Managing Innovation Teams 282 Team Structures; Making Project Teams Work Managing People For Innovation 297 Recruiting and Job Assignment; Managing Performance; Development of Employees Summary 306 BOOSTING INNOVATION PERFORMANCE 311 Introduction 311 Performance Improvement '» 312 Assessing Current Performance 313 Performance Measures; The Innovation Audit Priorities And Linkages 323 Priority Areas; Considering Linkages Actions To Boost Performance 329 Change Management and Innovation; Making a Breakthrough; The Role of an Innovation Manager Summary THE FUTURE OF INNOVATION MANAGEMENT Introduction: The Innovation Environment Customers Technology Competition The Business Environment Open Innovation; The Dangers of Open Innovation; Conclusion Summary Appendix References and Notes Index
TABLE OF CONTENTS CHAPTER TITLE PAGE
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