Management of Innovation and Entrepreneurship Dr. J. Roland Ortt,

Faculty of TPM

Overview

• Two perspectives on innovation

and diffusion

• Implication for management competences

• Conclusion, implication for RI

Focus on High-tech Innovations

• Product Innovations

• Technology-based

• Focus on the management of the

innovation and diffusion process

• Company perspective

Examples – telephone

Example – television

Example – kevlar

Example – glare

Example – prozac

Example – aspirin

Perspective 1 on innovation and diffusion (a)

Innovation

Market

introduction

project

Diffusion

Perspective 1 on innovation and diffusion (b)

Innovation

Market

introduction

project

Diffusion

R&D and

project

management

Marketing

management

R&D marketing interface

R&D Marketing

Innovation is more complex than a project

• Simultaneous technology and product

development

• Many (networks of) companies in parallel

• Market development

Example – nylon fiber

Innovation is more complex than a project

• Simultaneous technology and product development

• Many (networks of) companies in parallel

• Market development

• Scientific principles are sometimes mastered later

Perspective 2 on innovation and diffusion (a)

Innovation phase

Market

introduction

Stabilization

phase

Invention

Adaptation phase

Large-scale

diffusion

time

Many

projects in

parallel

Perspective 2 on innovation and diffusion (b)

External orientation

Innovation phase

Market

introduction

Stabilization

phase

Invention

Adaptation phase

Large-scale

diffusion

Many

projects in

parallel

Entrepreneurship

Management implications

1. External orientation Align development processes of products with related technology development processes at other companies

Management implications

2. Consider

– Market need and designing a product that fulfills that need. Create a business model to make money when commercializing the product.

– When to introduce the innovation (timing of entry).

– Where to introduce the innovation (niche strategy).

The second or adaptation phase is the

phase in which many companies go

bankrupt or leave the market

Conclusion

The innovation process can be seen as a new product development project • Project R&D-management, • Project management • Marketing management skills.

The innovation process can also be seen as a long-term process of innovation and diffusion • External orientation • Entrepreneurship

Implications for RI

• In the adaptation, experimental and entrepreneurial phase accidents can happen and unexpected by-effects can emerge.

• Mainstream application in the stabilization phase is sometimes hard to predict and so are the consequences.

• Responsible approach is required!

Thank you for your attention! Please post any questions you may have in our discussion forum

References

Slide 1: https://www.flickr.com/photos/maxtm/6823667554/sizes/k/

Slide 2: http://en.wikipedia.org/wiki/Technology