APPM2MARKETINGINNOVA - Knowledge

Marketing & Innovation

Session 01:
Introduction to Innovation
Management
Marcos LIMA, PhD
Skema Business School

Part 1

Course
Introduction

While watching this short clip
attentively…
…

write
down:
 Which
innovations

are
portrayed?
 The names of
famous
innovators
you could
identify

 Then

http://www.youtube.com/watch?v=XUw55PKCa1A&feature=related

The Spirit of Innovation (source: IEEE)

About me
Marcos LIMA, PhD
Worked for BOSCH (Germany), SECTI (Brazil); Amadeus
(France);
Studied at Bahia (Brazil), Klagenfurt (Austria), Michigan (US)
Currently, Associate Professor (EMLV); Research interests

include Innovation, Social Media, Marketing and Knowledge
Management



My Social Media
Contacts

 Twitter
• @limamarcos

 Facebook

 LinkedIn
• Marcos Lima

 Google+
• limamarcos@gm

Knowledge Management,

Innovation and New Products
 How

are these concepts
related?
Do we
Innovation

Knowledge
Management

Technology

have an
innovatio
n
strategy?

Positioning
Business Model

Process
Marketing Mix

New Products
& Services

Do we have an
innovative
Or g a n i z a t i o n ?

Market
Results

Targeted
Segments

Scope of This Course
 Session 1
 Introduction to Innovation
Management

 Sessions 2
 The Innovative Organization
& Knowledge Management
Culture
 Session 3
 Mid-term Quiz

Scope of This Course

5

4+

 SEARCHING the
Innovation
Environment
 SELECTING the
Innovation
Strategy
 IMPLEMENTING

the Innovation
Process

Select
STRATEGY
Implement
PROCESS

Develop
CULTURE

 Sessions

Search
ENVIRONMENT

My Expectations
 DREAM:

buy the textbook and

read the chapters
 NICE: listen to the podcasts,
surf the internet for
related topics
 MUST: read the articles
prepare the case
 You should also be…
 PARTICIPATIVE
 ASSIDUOUS & ON TIME

Your first group assignment:
Discuss Your Expectations
A

good course…

 should be…
 should have…
 should NOT be…
 should NOT have…

Brainstorming


Should:
 Concrete
examples, real life
stories
 Time for discussion
 Keep a ‘dynamic
speech’
 Sharing
experiences

Brainstorming


Should NOT:
 Only reciting
content ; too

theoretical
 Speak in Frenc
 Let the class be
noisy
 Just read the PPTs
 Be irresponsive
(not interactive)

Evaluation
 MCQ

Evaluation

25 %

 Individual quiz
(Mid-term)
 Case

Study

Presentations
 5 x 15

75%

Oral Evaluation Criteria: 75

VISUAL AID
(2 point):

DELIVERY
(3 point):

Simple, legible, organized logically, important findings stand out

Poised, well-rehearsed, good eye contact, no distracting gestures or mannerisms, not
too fast or slow, spoke clearly, stayed within time limit, used appropriate language, did
not read speech, did not turn back on audience when using visual aids

PERSUASIVENESS

(5 points)

Objective, well structured, clear, realistic, seductive, prioritized and highlighted most
relevant information

THOUGHTFULNESS
(5 points)

Critical thinking (capacity to analyze and synthesize), creative thinking (capacity to adapt
existing concepts / create new ideas).

Main Sources
 Books
 Tidd & Bessant, “Managing
Innovation: Integrating
Technological, Market &
Organizational Change”,
Wiley 2009
 Trott, “Innovation
Management & New Product
Development”, Prentice Hall,
2008
 See syllabus for other
sources
 Podcasts
 Businessweek Innovation

Podcast Links for
Voluntary Presenters
Class
Podcast Title
#
2 Disruptive Innovation

Link
http://media.libsyn.com/media/hbsp2/HBR_IdeaCa
st_Episode_81-Disruptive_Innovation.mp3

3

Five Traits of Innovative
Companies

http://www.businessweek.com/mediacenter/qt/pod
casts/innovation/IOW_Chandy.mp3

4

Building Innovation Radar

http://www.businessweek.com/mediacenter/qt/pod
casts/innovation/IOTW_MacCormack_061609.mp3

5

Innovation at Procter & Gamble

http://traffic.libsyn.com/hbsp2/Harvard_Business_I
deaCast_100__Innovation_at_Procter__Gamble.m
p3

6

From Me-Too to New to the
World
Transformative Innovation

7

http://www.businessweek.com/mediacenter/qt/pod
casts/innovation/innovation_06_03_08.mp3
http://www.businessweek.com/mediacenter/qt/pod
casts/innovation/IOTW_silverlining_060209.mp3

Learning from each other…
What is a SHARED
SYNTHESIS?




At any moment during the
class…
•





The lecturer assigns each pair
of individuals a fragment
(usually 1 paragraph) of the
text that will be discussed in
class.

After reading the fragment,
discuss in pairs the main
messages / ideas
After 5 minutes of

Questions?

Part 2

Introduction:
Understanding
Innovation

Preliminary Quotes
 Niccolo

MACHIAVELLI

 “There is nothing more
difficult to take in hand,
more perilous to conduct,
or more uncertain in its
success than to take the
lead in the introduction
of
The Prince, 1532
a new order of things”

Preliminary Quotes
 ????
 “Constant revolutionizing
of production,
uninterrupted disturbance
of all social conditions,
everlasting uncertainty…
all old established national
industries have been
destroyed or are daily
being destroyed. They are
dislodged by new
industries … whose
products are consumed not

KARL MARX
Communist
Manifesto, 1848

What is Innovation?
 Let’s

brainstorm!

 Let’s

 Something new
brainstorm!
 It’s a transformation of ideas into
concrete products
 It’s an improvement
 It changes the habits of people
 Could be revolutionary
 It could be disruptive (breakthrough)

What is Innovation?
 Video

Interview:
Strategyn

What is Innovation?
 Which

of these is NOT an
innovation? Why?

a) Nintendo Wii

b) Banana Peeler

c) Apple’s iPhone

d) Self-Service

What is Innovation?
 Is

this an Innovation or an
Invention?

A Few Definitions
 Innovation

is…

 “the process of turning
opportunity into new ideas and of
putting these into widely used
practice” (Tidd & Bessant, 2009)
 “the management of all the
activities involved in the process
of idea generation, technology
development, manufacturing and
marketing of a new (or improved)
product[/service]” (Trott, 2008)
 “not just the conception of a new

A Few Questions
Is an unsuccessful new
product an innovation?
 Is the successful
introduction of an old
product in a new market
an innovation?
 Does all innovation involve
new technology?
 Xerox created the first
computer with a Graphic
User Interface. Steve Jobs


A Visual Definition

These two variables
explain the critical
role of
MARKETING in the
innovation process

Text for Discussion

http://blogs.hbr.org/2012/06/you-dont-need-a-phd-to-innovat/

You don’t need a PhD…
1.
2.
3.
4.
5.
6.

Better Planet
Yoghourt
Bike
iPhone
Cartoon
Ketchup

Innovative in Different Ways
Innovative
Chief
Executive

Close
cooperation
w/ suppliers

Use of
external tech
sources

Scientific
freedom of
employees

Design

Speed of
product
development

BusinessWeek’s Most
Innovative Companies

Innovation’s Economic Relevance
 Nikolai

Kondratieff / Joseph
Schumpeter
 “virtually all of the economic
growth that has occurred since the
eighteenth century is ultimately
attributable to innovation”
 Schumpeter’s “Creative
Destruction”

Kondratieff’s 5th Wave…
McKinsey Global Institute Report: Digital Disruption is Coming

http://www.mckinsey.com
/Insights/Business_Tech
nology/Why_every_leader
_should_care_about_digi
tization_and_disruptive
_innovation?cid=other-e
ml-alt-mgi-mck-oth-1401

Types of Innovation
 Radical
Incremental

 What
New to
we
the world
already do,
but better

Types of Innovation
 Product / Service Innovation
 Innovate in WHAT we do
 Process Innovation
 Innovate in HOW we do it
 Paradigm

/ Business Model
Innovation
 Innovate in HOW we make money

 Position Innovation
 Innovate in marketing mix and strategy
WHERE, WHO, HOW MUCH

Types of Innovation
 Tidd’s

4Ps

 Can you find
at least
one example
of each type
of innovation?

Disruptive Innovation
Technology

 Incremental

 What we
already do,
but better
Market Status Quo
 Sustaining

 Rules of the
game
remain the
same

 Radical

 New to the
world

 Disruptive

 Game Changer
for
Market or
Industry


Disruptive Innovation
 HBR

– The Explainer Video
http://hbr.org/video/2688242135001/the-explainer-disruptive-innovation

Disruptive Innovations

Disruptive Innovations
http://www.youtube.com/watch?v=DaKgMcFP4Mo

Disruption at Work
A

lecture by Clayton
Christensen (00 – 12:42)

http://www.youtube.com/watch?v=rpkoCZ4vBSI

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Christensen’s Lecture


A few other examples

Text for Discussion
 Say

no to innovation-in-general

http://blogs.hbr.org/2014/01/say-no-to-innovation-in-general/

Fragmented Synthesis
 Group

Assignments

1. I had just … leaving the discussion
disappointed
2. Yes, all of the panelists … different in
nature
3. Without differentiating … investment
decisions
4. It’s easy to poke fun… what the word
means.
5. Innovation simply isn’t … innovationin-general

Evolution of Innovation Models
 Linear

Models

1950/60s – Technology Push
Research &
Development

Manufacturing

Marketing

1970s – Market Pull
Marketing

Research &
Development

Manufacturing

Evolution of Innovation Models
A

Case
for
MarketPull

Evolution of Innovation Models
 Simultaneous

Coupling Model

1980s
Manufacturing

Marketing

Research &
Development

Evolution of Innovation Models
 Interactive

Latest in science & technology

1990s

Idea

Market
Pull

Model
Advances in society

R&D

Manufacturing

Needs in society
and the marketplace

Marketing

Technology
Push

Commercial
Product

Evolution of Innovation Models
 Open

Innovation Model

 Emphasis on Business Model
innovation as driver

2000s

Myths about Innovation
 Innovation

is not

simply…
 Having strong R&D
capability
 The province of
specialists
 Understanding and
meeting customer
needs

Myths about Innovation
 Innovation

is not

simply…
 Only about
breakthrough
changes
 Only internally
generated
 Only externally
generated

Innovation as an Integrated
Process
Search int./ext.
ENVIRONMENT
Select
STRATEGY

Implement
PROCESS

Value-Capture
CULTURE

Recommended Reading
 TIDD,

2009

 Chapters 1,2,3
 TROTT,

2008

 Chapter 1

For next class…
 Jan.

28

 Podcast: Disruptive
Innovation
• Volunteer?

 Article:
• The discipline of
innovation – Peter
DRUCKER

Good Luck!

Marcos Lima

marcos.cerqueira_lima@devinci.fr