Von Stamm 2003 - Role of Creativity in Innovation Process
creativity is relating a concept to particular body of knowledge
creativity as conscious process determination, commitment and organisation knowledge provides basis for creativity creativity implies the new -
Innovation = Creativity + Commercialization
biggest organizational challenge to seek balance between creativity and innovation against operational commitments innovation as organizational or commercial application of creativity innovation as the introduction of new products or processes - can be radical or incremental New to the world products Line extensions Olsen etal 1995 - Innovation Classification
innovation can lead to social and economic changes that occur beyond boundaries of the firm and raise issues of ethics development of pharmaceuticals and dilemmas around patent protect for income generation and availability of drugs in developing countries genetic engineering and role of Internet child protection issues
Me too products - new to company but not market Product or Service modifications Mark 1 Model - technological change as uneven and random process - innovation generates temporary monopoly power
Business and Ethics of Innovation
Schumpter 1912/1942 - Models of Innovation
Mark 2 Model - innovation as process of cumulative accumulation - innovation is firm specific and is generated within firms through R&D
marketing and advertising - medicalisation of problems
Introducing Innovation Rothwell 1994 - Generations of Innovation Practice open approaches to innovation with focus on permeability of the modern firm and boundaries
importance of context on innovation determinants and process and outcomes through organizational structures
focus on product development funnel - in open case the funnel is open to external ideas and combined across innovation process
organizational types are critical differences between public and private sectors - competitive advantage vs public value
innovation as collective process development of boundary spanning activities have a number of benefits
role of industrial relations systems Anglo Saxon vs German - open vs rigidity Coherence - array of organisations and relationships within a region form a coherent whole different from that of constituents Unified Function - identifiable objectives or aims to which all elements of the system contribute Bounded - must be possible to discriminate between the system and the rest of the world
access to external research reducing internal R&D spend Open Innovation
A World of Innovation
Towards Open Innovation Edquist 2004 - Economy Criteria for Innovation System
responding more effectively to externally generated uncertainty strengthening and solidifying supply chain relationships - technology transfer and collaboration ability to grasp advantages reliant on absorptive capacity
major critique of regional innovation is that it places undue onus on the local and ignores the global
The Context for Innovation
importance of internal connectivity cross functional teams and knowledge integration - trust and mutual learning growth of academic research and diffuse distribution of it means that knowledge monopolies are now extinct
policy intervention as linked to market failures promotion of innovation takes place at a number of levels - key policy issue to maintain coherence between local/regional/national/supranational
growth of post college graduates has increased diffusion of knowledge
Policy Questions
accessing new locations of knowledge require new approaches
OECD view that governments address systematic failures that block the functioning of innovation
need to survey the knowledge landscape and determine location of knowledge resources
longstanding differences between nations and sectors in terms of R&D investments and performance
instead of hoarding knowledge through internal R&D structures multiple paths to market can be leveraged
differences in R&D investments also exist within nations differences between nations can be reflected in industrial strucutre of nations linkages between business and higher education spends
Geography of Innovation
Chesborough 2003 - Open Innovation Paradigm
open innovation expands role of internal researchers and allows for knowledge brokering - movement of knowledge in and out of silos role of customers in pushing products to the extreme creating new product combinations IP issue critical - few firms can exclusively control technology for any given period must increase metabolic rate at which knowledge can be managed Role of internal R&D to manage the KM process and development of architecture
Lesson 1 Mindmap.mmap - 18/05/2009 -
evidence on links between R&D and performance significant but difficult to measure against other impacts measurement of links between product innovation and profitability suggest innovators are more profitable - but this could be due to existing market position
Innovation and Business Performance development of a range of tools and measures to compare innovation in different countries European Innovation Scoreboard
empirical evidence is mixed and some argue that affects are transitory as new innovations only provide temporary advantage Behavioral Additionally - innovation projects provide additional capability and learning benefits
firms may discover new technological or market opportunities firms may develop new coordinating systems for R&D and innovation firms may develop new competencies PM and technological skills
Measuring and Comparing Innovation Performance Absorptive Capacity - ability of firm to exploit and absorb external knowledge
general framework developed to consider all innovation activity of a firm
number of research topics that suggest benefit of innovation on productivity
internal review of functional groups for creative sparks
HERD has greater impact on productivity than any other public R&D form
cross unit collaboration sharing insights and knowledge from different locations
positive impact of public R&D is diminished by defence spending
Innovation Impacts Beyond the Firm - The Evidence
key role of universities should be in basic rather than applied research
importance of knowledge sharing between divisions and companies
Idea Generation
sourcing of external knowledge - tapping into customers, end users suppliers etc
fundamental stocks of knowledge from universities and scientific papers has positive productivity effect on US manufacturing
address issue of 'Not Invented Here' filtering of ideas and development innovations which are diffused across the organisation
sequential three phase process
tight budgets and conventional thinking can shut down novel ideas Conversion
Innovation and Performance
poor commercial skills and shortage of seed money can undermine new projects some firms will not apply screens strictly enough new products need buy in from across the organisation before moving to market
Diffusion time spent on delivering mediocre ideas becoming weak products often caused by poor networks both within and without the organisation
Innovation and Business Performance - Causal Links
Hansen & Birkenshaw 2007 Innovation Value Chain
Idea Poor Company
impacts of innovation occur beyond firm level influencing wealth creation and quality of life
building external networks - solution networks look to fix specific problems and discovery networks looks to develop new ideas - Siemens 15 person scouting unit building internal networks - ongoing exchange and dialogue between different units within an organisation
private and social returns to innovation or R&D distinction between types of externalities or spillovers
Pure Knowledge Spillovers - benefits of innovation that accrue without following market transactions extent of rent spillovers depend on market interaction between innovator and other organisations
many good ideas but not properly screened or developed
IVC and Organizational Types
Rent Spillovers - quality improvements become productivity gains in a different industry
a number of innovation practices can address this problem
Innovation Impacts Beyond the Firm - How They Work
Conversion Poor Company
Safe Havens - building safe places for ideas to develop and evolve - shielding projects from short termism
pure knowledge spillovers don't require interaction but depend on free flow of information range of benefits from innovation both public and private
Multi Channel Funding - opens up source of funding for potential projects and undermines negative impact of individual managers or budget holders
difficulty in monetising good ideas - not invented here dominates Diffusion Poor Company
promotion of ideas evangelist promoting new ideas across the organisation
understand strengths and weaknesses of firms innovation processes IVC can be used to great effect in 3 key ways
help prioritize upgrading - focusing on weak links identify factors that enhance or constrain capability at each level
Lesson 2 Mindmap.mmap - 19/05/2009 -
standard models of management science considers expert consulting school which approaches a problem as a defined task not always an effective approach for innovation and change management and ignores the complex nature of organizational situations and the need for regular innovation
A Process Approach to Innovation
The process approach considers a different angle and includes Soft Systems Methodology - SSM - a series of facilitated modeling approaches that allow analysis of complex problems
process and organizational innovation strategic thinking knowledge management collaboration
application of SSM begins with a number of assumptions
process and organizational innovation need to become part of organizational culture
innovation will always take place within a complex and unique situation
SSM is participative 3 stage process delivered in a workshop context process approaches have been shown tow ork in a number of situations but can be undermined by politics and power struggles within groups
Key Conclusions
effective innovation projects require a group of participants to work in partnership to generate ideas
Enabling Creativity Leadership, Culture and Environment
facilitation of this process will allow for best use of in-depth knowledge and actions plans have best opportunity for implementation SSM application follows 3 key stages use of vignettes to create freehand representation of a problem and capture all the main elements
Innovation Using SSM Situation Mapping
mapping process allows for all participants to step back develop holistic view of the situation development of creative ideas for the future
Design Modeling
use of modeling tools to construct designs of potential processes analogous to architect building scale model system models compared with existing structures to identify desirable changes and develop action plans for delivery
Action Planning
Lesson 3 Mindmap.mmap - 19/05/2009 -
key approach of how Honda leverages engines and other subsystem technology into new products generation of organic growth follows 3 stages Identify new market application opportunities
view that there are managerial and organizational steps that increase innovation outputs
Innovation at Honda
develop intimate understanding of needs of users in new markets
IVC and impact of external suppliers
implement the results of user centered design
Overview
innovation process used as tool to build up corporate memory and developing intellectual capital
also of consideration is given to the role of progressive filtering of potential designs to reduce uncertainty number of drivers for filtering - reduced time to market/desire to maximize innovation quality/pressure to align innovation with corporate strategy
costs of corporate amnesia
key role of Innovation by Design
5 aspects of corporate memory benefit from innovation Personal Relationships Databases and Intranets
Cross & Baird 2000 - Innovation and Learning Process
Innovation and Organizational Learning
Work Processes and Systems Products and Services - reflection of firms accumulated product and process knowledge
critical role of industry and innovation context of firm - smaller firms will have ad hoc approaches, larger firms will have to follow strict guidelines
Innovation by Design key element of development process is filtering of projects and ideas stage-gate models are used to ensure a formal structure underlies the development process evaluating technical and marketing data at each stage
innovation process will differ in length and complexity
context of innovation varies widely and will be affected by a range of constraints
notion of Funnel of Development innovation a process of filtering out ideas until commercial proposition exists
Reflecting Context and Constraints
mouth of funnel needs to be wide enough to capture knowledge to stimulate embryonic product development capabilities assessment and forecasting - analysis of own product development capability
linking projects to service line strategies project portfolio planning
identifying capability requirements project management and execution notion of development funnel suggest a range of core capabilities necessary for innovation management
Lesson 4 Mindmap.mmap - 19/05/2009 -
industry factors - technological characteristics of the industry - market environments/extent of globalization and product lifecycles/industry norms and standards - regulation and expected returns
project constraints - budgets, restriction on development times and network capabilities key stages of filtering process
specifying type and mix of products identifying existing capacity
national factors - economic conditions and business climate and regulation/cultural factors and nature of innovation
principle of dominant design - internal combustion engine
market assessment and forecasting needs of existing clients and new markets development goals and objectivesspecific metrics - strategic fit, revenues or anticipated profitability
in service sector there is significant overlap between service design and process design
Decisions Decisions
Managing Innovation Resources
recognition that innovation is now the work of numerous organisations rather than individual firms idea of open innovation suggests role of interaction and relationships between different firms
Key Concepts
critical importance of interorganisational and interpersonal networks recognition of the role of networks in both enabling and preventing change difficulty in generalizing about role of networks with formal networks transferring knowledge but are less important than innovation from informal spillovers between people role of interpersonal ties in the formation of industry clusters and the spreading of ideas spread of innovations that are advanced by network externalities social networks and non rational influence on adoption norm setting networks play an important role in legitimizing new approaches
enablers of innovation in one place can become barriers in another power of boundary spanners can be negative as well as benign - gatekeepers to innovation
impact of imitation - adoption of innovation often driven by desire to imitate competitors
Negative Impact of Networks
Institutional Isomorphism - tendency of organisations to conform their practices with wider network members
see NHS case study
important to understand the structure of networks where people and organisations are embedded - small world effect spread of the Internet and development of online networks which don't conform to existing norms members dispersed widely and limited within interactions
Networks and Boundary Spanning Links for Innovation
suggestion that communications across dispersed networks can create shared cultural objectives communities of transaction communities of interest 4 key types of online network
The Role of Networks in Innovation
role of trust has a significant impact on social interactions - allows for greater efficiency and coordination of activities
Granovetter 1973 - Strong and Weak Ties
Nahapiet & Ghoshal 1998 - 3 Dimensions of Social Capital
valuable new information is often collected from weaker ties - cheaper to set up and maintain
other research has considered how different ties facilitate the sharing of tacit vs explicit knowledge
Relational - norms of cooperation and control
Boundary Spanners - important in maintaining inter-organizational links - managing relationships between internal interfaces i.e. departments and project groups
social networking
measurement of the quality of social ties that make up networks
Structural - use of relationships to gain access to actors with desired knowledge
much of the analysis for networks suggests the importance of boundary spanning links managed by a small group of key individuals
communities of relationships
online communities have played a critical role in shaping the innovation process Pentium chips
social capital evident in the ways that people are able to use strong ties to gain access to key knowledge and resources
Cognitive - shared meanings created through group interactions
role playing communities
Trust and Social Capital in Networks
although analysis of ties is an effective way of analyzing a social structure its important to recognise all social networks are an accumulation of interactions over time analysis of link between networking behaviour and innovative capacity
Knowledge Brokers - individuals who sit in privileged positions and can broker knowledge as they access information from different directions
risk sharing access to new technology and markets networking has identified a series of principle firm based benefits Pittaway etal 2004 - Networking and Innovation
reduced time to market pooling of skills safeguarding intellectual property access to external knowledge
critical importance of network relationships with supply chain to enhance innovation, performance and productivity
Lesson 5 Mindmap.mmap - 21/05/2009 -
traditional business strategy encourages firms to build competitive advantage through barriers to entry rather than promote openness industry is experimenting with novel business models looking to harness collectivity creativity through open innovation grappling with the key issue of value capture and sustainability of business models many conventional views of strategy are based on ownership and control and are directly firm based none take notice of valuable external resources shift of focus from ownership concept to openness requires reevaluation of process of value creation and capture impact of network externalities and value/knowledge creation repeated use of knowledge to create increasing returns Linux has been created using large amounts of freely provided resources
Open Invention
creation of innovation community
many organisations follow an innovation strategy process that initiates a definition of innovation goals and then develops a further set of operational elements
building of consensus around technology standards allowing whole ecosystems to flourish IBM and opening of PC architecture
model reflects the level of radicalness of business models and market offerings
Open Coordination
key question arises around who is capturing the value created by open innovation?
firms may chose to spread innovation investments across matrix providing diversified portfolio of activity
some is captured by the bigger companies who protect with IP rights
commitment that innovation is a key corporate asset and differentiator
support/subscription and professional services
Open Innovation and Strategy
placing of high value on innovation and will focus on more radical elements of the matrix
Chesbrough & Appleyard 2007
innovation activities heighten user experience and users willing to pay after initial free offering
Deployment PTW Strategy
proprietary extensions
Setting Strategic Directions
proprieatary innovation investments are made relying on IP ownership for add ons
Hybridization
Open Business Models
high tech firms focused towards small number of key development projects high risk high reward
Innovation Matrix
aim to play longer game slowly outperforming rivals
vendor will sell device at profit which relies on open source operating system
successive incremental innovation allowing for a built up unassailable competitive position
Complements user community create software application for own needs
may reflect volatile market conditions to adopt PTW Self Service
PNTL Strategy
how to attract participation of broad community contributors and then how to sustain it over time
number of dangers - vulnerability to competitor firms adopting aggressive PTW and danger of strategic drift
open oriented projects must compete for competitors Key Challenges Facing an Open Source Initiative
open strategy balances value creation found in individuals, communities and collaborative groups with need to capture value Technology
open initiatives must confront real challenges to sustainability over time importance of developing an open strategy - balance of open innovation with traditional strategy
match innovation to company strategy make innovation integral to business mentality balance creativity and value capture neutralize antibodies that kill off good ideas
Davila etal 2006 - Innovation Rules
Strategy as Practice
create innovation networks inside and outside the company implement the correct metrics to make innovation work
metrics and measures are used to define strategy as well as set targets key role of measurement system is to provide indication of performance and improvement - provides structure for reward or incentive system can be developed
important to note that it is difficult to assess innovation performance in terms of finance alone
Recognition - peer approval
types of incentives will depend on motives of individuals - 4 key types
Innovation measurement has three key roles
key objective of system to harness individual motivations incentives will only work if they are supported by the broader organizational culture Pixar - informal approach to work and HR policy - employees encouraged to think in terms of forward steps negative elements of incentivisation financial innovation of credit crunch leading to short term gains over long term losses
monitor innovation at company wide level or individual projects via IVC learn about effectiveness of IVC and identify development opportunities
Economic Incentives
Lesson 6 Mindmap.mmap - 25/05/2009 -
define and communicate strategy in a specific terms - should reflect elements of IVC
Metrics and Measurement
Passion - creative industries Vision - buy in to corporate vision
Incentivising Change
Radical
Incremental
Semi-radical
Business Model
Innovation Strategy
exert leadership defining innovation strategy
Semi-radical New
if the company cannot find a way to profit from innovation activities they cannot sustain participation
Near to existing
how the project is led and how its agenda evolves
reflected in cultural structures - UK more PTW Germany incremental
both factors of innovation and enterprise include processes of creating value from knowledge assets entrepreneur creates new wealth producing resources of endows existing resources with enhanced potential for growth
rationale for intervention based market failure arguments - many countries have active measures focused towards supporting SMEs
Silicon Valley has a regional network based industrial system that promotes collective learning and flexible adjustments amongst producers of complex range of technologies
most countries provide support for innovation in smaller firms particularly with a focus towards technology or in under developed regions support for innovation around service innovation or service business models other innovative measures include focus on addressing problems in identifying and forming relationships with other innovation partners
Innovation and Enterprise - 2 Sides of the Same Coin?
Policy Support
innovation here is also about strong inter firm networks and their relationships key role of networking in stimulating entrepreneurship and innovation amongst smaller firms creation of a new firm is the endogenous response to investments in knowledge that have been exhausted by the incumbent firm
EU policy focused on promoting innovation in small firms as part of wider Lisbon agenda Audretsch 2007 - Knowledge Spillovers
knowledge filter - difference between social stock of knowledge and that which has been commercialized entrepreneurship as key mechanism in exploiting unexploited knowledge
Innovation in Smaller Companies Barriers, Enablers and Policy
analysis of strategic challenges has taken RBV approach - competitive advantage built through heterogeneous bundles of assets
research has focused on validity of Schumpterian models especially argument that innovation will be found predominantly around smaller firms and that it will be transitory
strengths of large firms are material based while smaller firms are dynamic Vossen 1998 - Innovation Barriers
Small Firms in the Innovation Landscape
financial - lack of available capital and low rates of return human resources - development, employee attitudes, managerial expertise
Hewitt-Dundas 2006 - Key Innovation Constraints
organizational - regulatory and lack of partners research suggests the key balance between managerial and strategic issues larger firms - risk, investment priorities and resource allocation smaller firms - project selection, resource acquisition and development partners Davilla 2006 - & Innovation Rules differences in approach to IP management and protection smaller firms will struggle to protect patent rights due to smaller number of overall patents that reduce technology swapping and less interaction with other parties
Lesson 7 Mindmap.mmap - 25/05/2009 -
Barriers and Enablers of Small Firm Innovation
evidence has shown that innovative activity will depend on industry base rather than firm size greatest contribution to economic efficiency is by smaller firms
MNEs manage business operations across a range of country contexts which represent different opportunities for innovation
process of internationalisation has accelerated since 1980s alongside trade, FDI and cross border M&A - number of reasons
distinctive market opportunities for customized products and services country locations provide resources or inputs into innovation process - scientific and technological assets
growth of new markets outside of triad areas increased access to foreign labour and expertise growing international competition between MNEs
as process of internationalisation has grown MNEs have been required to develop more global networks for innovation - number of key drivers
MNEs act as channels for transfer of R&D capabilities into other countries develop local assets and resources, engage in training and develop local capabilities
firm needs to adapt products as organizational structures to suit new markets
impact of spillover effects and unintended transfers of assets capabilities and knowledge
product strategy will vary depending on product type and target market - some firms have built global brands around similar products (Nike) relaying on global media channels
Presence of advanced R&D facilities and expertise attracts foreign R&D investment and provides starting point for hi tech clusters
reflection of processes of homogenization of values and buying patterns
Brazilian bio fuels industry and emergence as market leader role of Chinese govt in guiding economic development process - National Development and Reform Commission
Market Seeking
Emerging Economies as Locations for and Sources of Innovation
facilitation of local technology start ups and encouraging FDI by improving R&D infrastructure
many products will need customization or modification for local needs - cosmetics, food and packaging products minimization of customization costs can build significant economies of scale but can only be achieved if product demand is homogenous
Drivers of Internationalisation for Innovative MNEs
attraction of pharmaceutical and automotive sectors govt enforces conditions of entry into China based on technology transfer and local training opportunities
Evidence of re-assertion of distinctive local values which will impact on MNE strategy
firms expand across new borders to exploit new input sources including knowledge and creativity
China: Big and Innovative
innovation developed through joint ventures and learning opportunities and development of own capabilities in manufacturing and process management unintentional asset transfer through spillover effects and weak infrastructure to protect IP rights
Resource Seeking
when seeking input resources abroad need to adapt operating systems to local conditions - working cultures, employment regulation and governance issues customization allows for leverage of local endowments - optimization of production capabilities for global distribution is seen as a key competitive strategy
Innovation in Multinational Firms and Global Networks
development of model to better understand tensions between standardization and local responsiveness
evidence shows MNEs distributing R&D activities across the world increase has taken place in developing countries with growing attractiveness of China as R&D location market and resource seeking internationalisation explain movement beyond triad areas
Resource centralization vs dispersion Product standardization vs customization Organizational uniformity or diversity
The Globalization of R&D Networks Integration vs Responsiveness
emerging economies have significant population sizes with more disposable income than before as well as holding a convenient sources of knowledge - growing numbers of scientists and engineers
Bartlett & Ghoshal 1989 - Integration Responsiveness Framework
Innovation centrlaised or dispersed framework considers both the key dilemmas and captures complexity faced by international managers pressures for integration and standardization include impact of economies of scale, access to raw materials and global competition
framework describes several structures for MNE innovation management - differentiates between 3 generic forms of innovation activity - sensing/responding and implementing MNEs dominate as largest investors in R&D structurally they face a number of challenges and need to prioritize country locations according to 2 variables
local market requirements - adaptation, design and development needs benefit of accessing local resources
specialist unit or centre for excellence innovates and creates products for global market - computer chips - Intel Centre for Global
Blue Sky - linked to universities or government research bodies
local subsidiaries develop products for local markets or country conditions
technical design centres - focused on practical near market R&D Applied technical development departments focus on incremental improvements to production processes
Local for Local
MNEs operate several types of R&D networks
home country R&D often sets overall strategy but resources may come from country based managers
Ghoshal & Nohria 1997 - Glocal MNE Innovation Structures
The Location of Innovation Activities in the MNE
ideal organizational structure for transnational corporations - resources are pooled to address changing global markets
Location and Relocation of R&D
organisation structures are critical in determining extent of leveraging competitive advantage through R&D
Global for Global
efficiency of how specialist knowledge is coordinated is critical to overall innovation practice and operation
MNEs face dilemma of being both global and local - major competitive advantage is ability to combine various inputs from innovation process to serve different customer needs
large MNEs continually adjust global R&D networks in the face of changing technological opportunities particularly in the BRIC economies Innovative MNE as Differentiated Network
Lesson 8 Mindmap.mmap - 31/05/2009 -
locally developed product develops into a global product - Unilever clothes cleaner Local for Global
exploiting advantage depends on how they are structured to manage networks - those firms which are able to integrate specialist knowledge tend to have a degree of slack in configuration of resources and other key assets
big business element of the public sector consumption of major part of OECD GDP - 37% ratio of spending
innovations do not always lead to success assumptions that all innovations are good
large levels of expenditure, employment, organisation size and production of services
failure rates for innovation in the public sector are numerous
increased interrelationship between public, private and VCS sectors
range of stakeholders means that criteria for success may be difficult
Background Issues
democratic accountability means that innovation develops under public debate politicians may be cautious to innovate because of responsibility
Accountability, Risk and Reward
throws a different light on innovation as wider assumptions of innovation
sharing of good, promising or innovative practice close attention to innovation development - management involvement
role of public sector in stimulating wealth creation and innovation in the private sector - creation of conditions that support market activity
Mitigating risk in public service innovation
determining which innovations should be dropped and which carried forward
little research about public sector innovation but some similarities with private sector in terms of outcomes but some distinctive differences
adaptation of innovation - occurs where adopter has sparse knowledge of innovation and where there are many practical applications
driving forces of institutional and environmental contexts - existence of market forces assumption that there is no public sector innovation due to lack of competitive pressure - Schumpter
Rogers 2003 - Reinvention of Innovation at organizational level there is growing interest in the process enabling innovation to be shared across the organisation importance of motivation and capacity of the organisation to take in new information also need to consider the policy context in which diffusion is taking place critical role of political and managerial leadership in adoption of new practices
Moore 1995 - public managers as explorers commissioned by society to search for public value - need to seek opportunities for adaptation to changing needs of society
Public Services Innovation
review of 388 English LAs with Beacon scheme
steering improvement strategy, providing access to resources and acquiring knowledge
however evidence suggests innovation exists - NHS, foundation hospitals Welsh Assembly - competition not the only driving force
The Diffusion of Innovation
both sectors have to respond to continual environmental changes and customer demands
Hartley & Rashman 2007 - Enablers of Interorganisational Knowledge Transfer
Pressures for Public Innovation
innovation in the public sector needs to be analyzed not only in terms of metrics but also in terms of public value
relentless pressure to increase productivity increases demand for innovative approaches
need to develop clearer understanding for the unit of measurement public value - challenge for government to make services better but also build public sphere of self determination and participation economic social value political value
both commission research to increase their level of knowledge - trend analysis to shape thinking and strategy
terminology of innovation embedded in a range of activities - units, networks,organisations and job titles innovation as means to go beyond quality improvement of 1990s
When does Innovation Contribute or Detract from Public Value?
Product innovation service innovation
Benington 2005 -Dividends of Innovation to the Public realm
process innovation
ecological value
Public and Private Sector Innovation
Aspects of public sector innovation
position innovation - new customers or contexts strategic innovation - new goals or purposes
searching - environmental scanning for opportunities and threats selecting - strategic overview on which signals to respond to Implementing - developing a series of activities for adoption
governance innovation - new forms of citizen engagement Rhetorical innovation - new language and concepts Bessant 2005 - Four Key Activities
Processes of Managing Public Innovation
Dimensions of Public Sector Innovation
improvement of social conditions innovation around decision making and development Governance Innovation
learning
Rhetorical Innovation
innovation through redrawing of boundaries between 3 sectors - i.e. contracting out used to precede organizational or policy innovation to build support London congestion charging top down - politicians bottom up
Hartly 2005 - Sources of Innovation
lateral - sharing of good practice external
evidence suggests in USA that 51% of innovations come from middle managers or front liners Who are the Sources of Innovation
innovation will also occur through networks of professionals - development of joined up government and knowledge sharing pressure to acquire and share knowledge - direct contrast with private sector and protection of innovations public value theory and processes of co production - key role of customers
Lesson 9 Mindmap.mmap - 02/06/2009 -
the appropriate strategy will depend on operational context of the firm key role of the leadership team within the firm is identification of appropriate innovation strategy key roles of business leadership is to support creativity as part of innovation activity using SSM model the creativity process has implicit process dynamic from mapping to modeling etc critical role is the separation of creative process from the operational process Delivering on Creativity
clear definition of problem creating a space for the discussion key leadership tasks in terms of delivering on creativity facilitation of discussion structure process using SSM to develop creative thinking
focus on the task of the business manager in stimulating innovation - innovation as a strategic issue within organisations
networking and boundary spanning activities are critical in developing innovation strategy
critical issue of innovation strategy and implementation to be consistent with wider business strategy
stronger network ties are more expensive than weaker ties which are quicker to develop and cheaper to manage
tensions between promoting creativity and value capture
boundary spanning links are seen as key competitive assets which need managing and developing alongside tangible assets
innovation can risky, expensive and time consuming, but it matters - arms race with innovation as the key weapon
networks and alliances can be problematic where trust is lacking or problems arise over IP issues
innovation can change the entire future of one company - research have shown potential impacts of innovation;
other issues can arise around cheating on agreements or carelessness with proprietary information developing clear mapping of firms intellectual capabilities and identifying gaps which can be filled through external working identify portfolio of partners and understanding firm fit with partner requirements building trust with partners and ensuring development of appropriate external partnerships
Delivering on Networks
innovative firms are more profitable although linkage is still uncertain
Innovation Matters
innovative firms generate higher levels of productivity and wealth creation innovation has been positively linked to exporting levels
building effective innovation networks requires a number of management activities
innovative firms will also attract capable recruits innovation can also have a societal perspective in terms of potential contribution of the firm the economic growth externalities and spillovers Innovation Value Chain - links innovation and business performance - model suggests a strategic approach encouraging managers to follow an end to end approach to innovation
overcoming attitudinal barriers restricting the on take or sharing of knowledge ensuring creative ideas are effectively evaluated and developed into new market offerings is critical development of innovation culture in the firm supported by environmental and incentive structures
key leadership tasks for value creation
Delivering on Value
implementing end to end metrics or benchmarking to monitor performance targeting development resources on weakest links celebrating success and learning from failures innovation Value Chain requires optimization at its weakest points addressing idea poor/conversion poor/diffusion poor
Lesson 10 Mindmap.mmap - 06/06/2009 -
Leading the Innovation Challenge
innovation can also create learning advantages for firms - i.e. production or logistical improvements
developing internal management systems to assess, appropriate and implement knowledge from partners
development procedures for capturing new ideas, evaluation and allocation of resources
Developing and Delivering Innovation Strategy
Delivering on Effective Innovation