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Managing Innovation Last Update 2013.04.23 1.0.0 Copyright Kenneth M. Chipps Ph.D. 2013 1.

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Presentation on theme: "Managing Innovation Last Update 2013.04.23 1.0.0 Copyright Kenneth M. Chipps Ph.D. 2013 1."— Presentation transcript:

1 Managing Innovation Last Update Copyright Kenneth M. Chipps Ph.D

2 Managing Innovation As discussed in another presentation a strategy for managing technology must be in place Then part of the that management, is as the introduction for Week 1 points out, is how to manage innovation so as to have a constant productive flow of products Copyright Kenneth M. Chipps Ph.D

3 Managing Innovation Further as the course introduction also points out developing a successful innovation strategy is very difficult Once the strategy is in place how do we implement it, as well as how do we continue to innovate Let’s start with an example along the same lines we just discussed when we covered what a strategy is Copyright Kenneth M. Chipps Ph.D

4 Managing Innovation Paul Kennedy in his book Engineers of Victory points out the following on managing innovation Copyright Kenneth M. Chipps Ph.D

5 Managing Innovation Here are some quotes from his concluding chapter –Was it simply that the German and Japanese war machines, which had fought with astonishing ferocity and efficiency for so long, were geographically overextended by their leaderships and ultimately collapsed in the face of the accumulated material power of the British Empire, the United States, and the USSR Copyright Kenneth M. Chipps Ph.D

6 Managing Innovation –The raw statistics certainly suggest that by 1942 the Grand Alliance was equal to the Axis in terms of productive power, by 1943 it was surging well ahead, and by 1944 it was dominant Take any measure — oil supplies, steel output, or aircraft production — and the Allies were well in front –Clearly it would be silly to deny the massive importance of the Allies’ productive superiority by 1943 – 44 Copyright Kenneth M. Chipps Ph.D

7 Managing Innovation –But the argument that emerges from the chapters above is that these crude productive disparities could be, and very much were, affected by two other variables –namely, the role of geography (and its greater or lesser appreciation of that by the planners, designers, and decision makers on either side) Copyright Kenneth M. Chipps Ph.D

8 Managing Innovation –and, perhaps the most important variable of all, the creation of war-making systems that contained impressive feedback loops, flexibility, a capacity to learn from mistakes, and a “culture of encouragement” (of which more in a moment) that permitted the middlemen in this grinding conflict the freedom to experiment, to offer ideas and opinions, and to cross traditional institutional boundaries Copyright Kenneth M. Chipps Ph.D

9 Managing Innovation –The student of all this gains a sense that both the Wehrmacht leadership and the Prussian- influenced Japanese generals had, ironically, forgotten Clausewitz’s stress upon the importance of focusing upon the enemy’s Schwerpunkte (centers of gravity, or key points) and paid the ultimate price for that forgetfulness Copyright Kenneth M. Chipps Ph.D

10 Managing Innovation –The final point that emerges from this investigation of how the war was won concerns the tricky, perhaps intangible issue of what might be termed the “culture of encouragement,” or the culture of innovation –The more interesting question, for this book, has been the how question how did some of these politico-military systems do it more effectively than others Copyright Kenneth M. Chipps Ph.D

11 Managing Innovation –A good portion of the answer has to be that the successful systems were so because they possessed smarter feedback loops between top, middle, and bottom; because they stimulated initiative, innovation, and ingenuity; and because they encouraged problem solvers to tackle large, apparently intractable problems Copyright Kenneth M. Chipps Ph.D

12 Managing Innovation –Of course the men at the top made a difference –The individual leaders, or individual leaderships, revealed very marked alterations in style –displayed a rigidity and old-boys-solidarity that could in no way handle the imaginative American counterattacks that were unfolding across the Pacific Copyright Kenneth M. Chipps Ph.D

13 Managing Innovation –Hitler and Stalin were, as many historians have pointed out, very similar in their obsessions about control, with the critical difference that Stalin began to relax his iron grasp once he understood that he had a team of first-class generals working for him, whereas Hitler became ever more megalomaniacal and paranoid, giving his experienced generals in the field little room for operational maneuver Copyright Kenneth M. Chipps Ph.D

14 Managing Innovation –There was another level of this worldwide conflict in which Churchill’s enthusiasms and encouragements were invaluable: in recognizing talent, initiative, and, frankly, unorthodoxy in people and giving them a chance to prove themselves –Yet there is more to this concept of a “culture of encouragement” than the personal tastes and whims of powerful leaders Copyright Kenneth M. Chipps Ph.D

15 Managing Innovation –This wasn’t a fluke; it was the result of a superior system –But it had to start somewhere –And that somewhere was a space, a military- political culture, that allowed problem solving to go ahead –while the high commanders took that all for granted because they were confident in their middle-level managers’ capabilities Copyright Kenneth M. Chipps Ph.D

16 Managing Innovation –In it the author, Malcolm Gladwell, argued that Jobs was not an inventor of a machine or an insight that changed the world; few beings ever are (excepting perhaps Leonardo and Edison) –Instead, he was a brilliant adopter of other people’s early, clumsy inventions and partial insights, which he built upon, modified, and constantly improved Copyright Kenneth M. Chipps Ph.D

17 Managing Innovation –He was, to use today’s parlance, a “tweaker,” and his true genius was to push for ever- greater increases in the effectiveness of his company’s products –The story of Steve Jobs’s success, however, was not new Copyright Kenneth M. Chipps Ph.D

18 Managing Innovation –The coming of the Industrial Revolution in eighteenth-century Britain — arguably, the greatest revolution that explains the rise of the West — came about precisely because that country possessed a plethora of tweakers in a national culture that encouraged progress –But all these projects needed time and support Copyright Kenneth M. Chipps Ph.D

19 Managing Innovation –If these remarks about the culture of innovation are valid, the five peculiar and parallel tales narrated above carry a significant transferable message into other fields, other disciplines, other great contestations Copyright Kenneth M. Chipps Ph.D

20 Managing Innovation –By extension, then, any smart middle manager or management consultant in today’s business world — or a CEO who reads widely — can see the lessons that emerge from these tales –None of this can be done by the chiefs alone, however great their genius, however massive their energy Copyright Kenneth M. Chipps Ph.D

21 Managing Innovation –There has to be a support system, a culture of encouragement, efficient feedback loops, a capacity to learn from setbacks, an ability to get things done –And all this must be done in a fashion that is better than the enemy’s –That is how wars are won Copyright Kenneth M. Chipps Ph.D

22 Managing Innovation –Even more rare has been an understanding of how the work of these various problem solvers also has to be joined by a fuller appreciation of the importance of having a “culture of encouragement,” to ensure that the mere declarations and strategic intentions of great leaders get turned into reality and do not wither in the storms of war Copyright Kenneth M. Chipps Ph.D

23 Pace of Innovation The pace of change of innovation has increased dramatically since the 1800s This table illustrates this Copyright Kenneth M. Chipps Ph.D

24 Pace of Innovation Copyright Kenneth M. Chipps Ph.D

25 Pace of Innovation Copyright Kenneth M. Chipps Ph.D

26 Pace of Innovation Copyright Kenneth M. Chipps Ph.D

27 Importance of Innovation According to the author of the book we are using –In many industries, technological innovation is now the most important driver of competitive success, and because the pace of innovation has increased, many firms now rely on products developed within the last five years for a large portion of their sales and profits Copyright Kenneth M. Chipps Ph.D

28 Importance of Innovation –This period is reduced to three years for firms in fast-paced industries, such as computers, software, and telecommunications Copyright Kenneth M. Chipps Ph.D

29 Importance of Innovation –Innovation is also a very powerful driver of increased effectiveness and efficiency in producing goods and bringing them to market; firms that do not constantly innovate to make their development, production, and distribution processes more effective and efficient are likely to fall behind their competitors Copyright Kenneth M. Chipps Ph.D

30 Sources of Innovation A table in the textbook shows the main sources of innovation Copyright Kenneth M. Chipps Ph.D

31 Source of Innovation Copyright Kenneth M. Chipps Ph.D

32 Making Innovation Useful The creation of the light bulb and the telephone are excellent examples of the critical difference between innovation as an end in its self and managing innovation so as to produce a useable product In the case of the light bulb several people claimed to have done as much as Edison to advance its development Copyright Kenneth M. Chipps Ph.D

33 Making Innovation Useful The key difference is that Edison like Bell developed an entire system that could be deployed as a unified whole so as to allow the light build and the telephone to be put to use in an efficient and practical basis Copyright Kenneth M. Chipps Ph.D

34 Making Innovation Useful As the book points out –Advances in information technology also have played a role in speeding the pace of innovation Copyright Kenneth M. Chipps Ph.D

35 Making Innovation Useful –Computer-aided design and computer-aided manufacturing have made it easier and faster for firms to design and produce new products, while flexible manufacturing technologies have made shorter production runs economical and have reduced the importance of production economies of scale Copyright Kenneth M. Chipps Ph.D

36 Making Innovation Useful The continuing development of 3D printing is a perfect example of this move toward shorter and shorter and more and more flexible and specific production runs Copyright Kenneth M. Chipps Ph.D

37 Creativity Part of innovation is creativity It begins with the generation of new ideas The book states –Creativity is defined as the ability to produce work that is useful and novel (i.e. different and surprising when compared to prior work) –The most creative works are novel at the individual producer level, the local audience level, and the broader societal level Copyright Kenneth M. Chipps Ph.D

38 Creativity –When a product is novel to its creator but known to everyone else, it is referred to as a reinvention –One might think that knowledge is good –However, one needs just the right amount of knowledge –Too much knowledge can result in an inability to think beyond the existing logic and paradigms of a field, but too little knowledge can lead to trivial contributions Copyright Kenneth M. Chipps Ph.D

39 Creativity –The most creative individuals can distinguish important problems from unimportant ones Copyright Kenneth M. Chipps Ph.D

40 Individual Creativity What then is individual creativity The book argues that –An individual's creative ability is a function of his or her intellectual abilities, knowledge, style of thinking, personality, motivation, and environment Copyright Kenneth M. Chipps Ph.D

41 Individual Creativity –The most important intellectual abilities for creative thinking include the ability to look at problems in unconventional ways, the ability to analyze which ideas are worth pursuing and which are not, and the ability to articulate those ideas to others and convince others that the ideas are worthwhile Copyright Kenneth M. Chipps Ph.D

42 Individual Creativity –Thus, an individual with only a moderate degree of knowledge of a field might be able to produce more creative solutions than an individual with extensive knowledge of the field Copyright Kenneth M. Chipps Ph.D

43 Individual Creativity –The personality traits deemed most important for creativity include self-efficacy (a person's confidence in his or her own capabilities), tolerance for ambiguity, and a willingness to overcome obstacles and take reasonable risks –Intrinsic motivation has also been shown to be very important for creativity Copyright Kenneth M. Chipps Ph.D

44 Individual Creativity –That is, individuals are more likely to be creative if they work on things they are genuinely interested in and enjoy –Finally, to fully unleash an individual's creative potential often requires an environment that provides support and rewards for creative ideas Copyright Kenneth M. Chipps Ph.D

45 Individual Creativity Further the book states that –Another aspect of creativity is to what extent is it ingrained in individual and to what extent is it a product of a society As discussed above Kennedy would argue that it is societal Copyright Kenneth M. Chipps Ph.D

46 Individual Creativity The raises the question whether some societies, such as China, can only produce products and not develop them In the past this was the view of Japan as well Yet it sharing a similar culture to China was able to innovate not just produce Copyright Kenneth M. Chipps Ph.D

47 Organizational Creativity On organizational creativity the book makes these points –The creativity of the organization is a function of creativity of the individuals within the organization and a variety of social processes and contextual factors that shape the way those individuals interact and behave Copyright Kenneth M. Chipps Ph.D

48 Organizational Creativity –Idea collection systems (such as suggestion boxes) are relatively easy and inexpensive to implement, but are only a first step in unleashing employee creativity –Today companies such as Intel, Motorola, 3M, and Hewlett-Packard go to much greater lengths to tap the creative potential embedded in employees, including investing in creativity training programs Copyright Kenneth M. Chipps Ph.D

49 Organizational Creativity –Such programs encourage managers to develop verbal and nonverbal cues that signal employees that their thinking and autonomy are respected Copyright Kenneth M. Chipps Ph.D

50 Organizational Creativity –These cues shape the culture of the firm and are often more effective than monetary rewards-in fact, sometimes monetary rewards undermine creativity by encouraging employees to focus on extrinsic rather than intrinsic motivation Copyright Kenneth M. Chipps Ph.D

51 From Creativity to Innovation How do we move from creation to use or from creativity to innovation The book offers these thought –Innovation is more than the generation of creative ideas; it is the implementation of those ideas into some new device or process –Innovation requires combining a creative idea with resources and expertise that make it possible to embody the creative idea in a useful form Copyright Kenneth M. Chipps Ph.D

52 From Creativity to Innovation –We will first consider the role of individuals as innovators, including innovation by inventors who specialize in creating new products and processes, and innovation by end users –We then will look at innovation activity that is organized by firms, universities, and government institutions Copyright Kenneth M. Chipps Ph.D

53 The Inventor –The familiar image of the inventor as an eccentric and doggedly persistent scientist may have some basis in cognitive psychology –Analysis of personality traits of inventors suggests these individuals are likely to be interested in theoretical and abstract thinking, and have an unusual enthusiasm for problem solving Copyright Kenneth M. Chipps Ph.D

54 The Inventor –Their tendency toward introversion may cause them to be better at manipulating concepts than at interacting socially –Such personality traits appear to suggest that the capacity to be an inventor is an innate ability of an individual –Others, however, disagree with this conclusion and argue that inventors are made, not born Copyright Kenneth M. Chipps Ph.D

55 The Inventor –One 10 year study of inventors concludes that the most successful inventors possess the following traits They have mastered the basic tools and operations of the field in which they invent, but they have not specialized solely in that field; instead they have pursued two or three fields simultaneously, permitting them to bring different perspectives to each They are curious and more interested in problems than solutions Copyright Kenneth M. Chipps Ph.D

56 The Inventor They question the assumptions made in previous work in the field They often have the sense that all knowledge is unified They seek global solutions rather than local solutions, and are generalists by nature Copyright Kenneth M. Chipps Ph.D

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