FACULTY OF ECONOMICS
& BUSINESS
Strategic Innovation
Management
Strategy Innovation Entrepreneurship Track MBA
Prof. Teirlinck Peter
Academic Year: 2020–2021
FACULTY OF ECONOMICS AND BUSINESS - CAMPUS BRUSSELS
WARMOESBERG 26 – B 1000 BRUSSELS BELGIUM
, STRATEGY INNOVATION MANAGEMENT
1.1 INNOVATION MANAGEMENT: INTRODUCTION (CH1)
Learning objectives
• Recognize the importance of innovation
• Explain the meaning and nature of innovation management
• Provide an introduction to a management approach to innovation
• Appreciate the complex nature of the management of innovation within organizations
• Describe the changing views of innovation over time
• Recognize the role of key individuals within the process
• Recognize the need to view innovation as a management process
Definition of innovation Definition from a firm perspective and innovation system perspective
Theoretical conception + technical invention + commercial exploitation)
• An innovation is the implementation of a new or significantly improved product (good or service), or
process, a new marketing method, or a new organizational method in business practices, workplace
organization or external relations.
• The minimum requirement for an innovation is that the product, process, marketing method or
organizational method must be new (or significantly improved) to the firm
• Innovation activities are all scientific, technological, organizational, financial and commercial steps
which actually, or are intended to, lead to the implementation of innovations. Innovation activities also
include R&D that is not directly related to the development of a specific innovation
• Management: The organization and coordination of the activities of a business in order to achieve
defined objectives. Management is often included as a factor of production along with machines,
materials, and money. The basic task of management includes both marketing and innovation.
Management consists of the interlocking functions of creating corporate policy and organizing, planning,
controlling, and directing an organization's resources in order to achieve the objectives of that policy.
(Peter Druncker)
• Innovation is about the commercial exploitation of new ideas, meaning it’s not about having new ideas/
discovering new ideas, but it’s about bringing those ideas to the market!
• Management of innovation is the coordination of activities in a business to achieve defined objectives.
Management is an additional factor (along with the production factors) that can help to improve the
performance of the organization
A typology of innovations
In innovation we can make a
differentiation between different types
of innovation. Examples:
Product innovation: smart watch,
medical service online
Process innovation: JIT system (Japan)
case Drones, new delivery method
(both product- as process
innovation, isn’t mutually exclusive)
Organizational innovation: managing
employees, the way you organize
production & distribution within the
organization (Drone case: unmanned)
, • Product innovation & Process innovation are referred to as technological innovation
• Organizational innovation is non-technological innovation
• Business model innovation: going from an economy that is focused on buying/ owning things to a
shared economy (f.e. Uber, Airbnb) disrupt the business
The interaction between development activities and design environment
It’s also important to mention what is
not considered as an innovation.
Form concepts & Design trends are not
considered as innovation -> more related
to marketing and branding activities
Important to make the distinction between:
• Radical/ Disruptive innovation: a new
Radical or disruptive innovations technology pops-up and it disrupts an existing
market (according to Schumpeterian), f.e.
digital photography (Kodak, Nokia) (typical in
high tech or fast evolving industry such as
pharma-, ICT industry)
• Incremental innovation: continuously make
small improvements on a product, you move
along a certain technology path (typical in low
tech or traditional industry; like the food
industry, clothing industry)
this depends on the industry you’re on
* Technology = knowledge applied to products or
production processes
Doing, using and interacting (DUI) mode of innovation typical in traditional industry (incremental inno)
• In low and medium technology (LMT) intensive industries the traditional science and technology model
of innovation is not applicable and cannot explain continued product and process innovations.
• In LMT environments innovation can be explained through learning by doing and the use of networks of
interactions and extensive tacit knowledge.
• Incremental innovations (along the existing technology path – technology trajectories)
• Food industry: local – distribution – meat consumption – new diaries (insects, soya,…), new perceptions cows
• Incremental innovations (along the existing technology path – technology trajectories)
Up until here we talked about the perceptions of innovations, next we talk about innovation from a
management/ business perspective
& BUSINESS
Strategic Innovation
Management
Strategy Innovation Entrepreneurship Track MBA
Prof. Teirlinck Peter
Academic Year: 2020–2021
FACULTY OF ECONOMICS AND BUSINESS - CAMPUS BRUSSELS
WARMOESBERG 26 – B 1000 BRUSSELS BELGIUM
, STRATEGY INNOVATION MANAGEMENT
1.1 INNOVATION MANAGEMENT: INTRODUCTION (CH1)
Learning objectives
• Recognize the importance of innovation
• Explain the meaning and nature of innovation management
• Provide an introduction to a management approach to innovation
• Appreciate the complex nature of the management of innovation within organizations
• Describe the changing views of innovation over time
• Recognize the role of key individuals within the process
• Recognize the need to view innovation as a management process
Definition of innovation Definition from a firm perspective and innovation system perspective
Theoretical conception + technical invention + commercial exploitation)
• An innovation is the implementation of a new or significantly improved product (good or service), or
process, a new marketing method, or a new organizational method in business practices, workplace
organization or external relations.
• The minimum requirement for an innovation is that the product, process, marketing method or
organizational method must be new (or significantly improved) to the firm
• Innovation activities are all scientific, technological, organizational, financial and commercial steps
which actually, or are intended to, lead to the implementation of innovations. Innovation activities also
include R&D that is not directly related to the development of a specific innovation
• Management: The organization and coordination of the activities of a business in order to achieve
defined objectives. Management is often included as a factor of production along with machines,
materials, and money. The basic task of management includes both marketing and innovation.
Management consists of the interlocking functions of creating corporate policy and organizing, planning,
controlling, and directing an organization's resources in order to achieve the objectives of that policy.
(Peter Druncker)
• Innovation is about the commercial exploitation of new ideas, meaning it’s not about having new ideas/
discovering new ideas, but it’s about bringing those ideas to the market!
• Management of innovation is the coordination of activities in a business to achieve defined objectives.
Management is an additional factor (along with the production factors) that can help to improve the
performance of the organization
A typology of innovations
In innovation we can make a
differentiation between different types
of innovation. Examples:
Product innovation: smart watch,
medical service online
Process innovation: JIT system (Japan)
case Drones, new delivery method
(both product- as process
innovation, isn’t mutually exclusive)
Organizational innovation: managing
employees, the way you organize
production & distribution within the
organization (Drone case: unmanned)
, • Product innovation & Process innovation are referred to as technological innovation
• Organizational innovation is non-technological innovation
• Business model innovation: going from an economy that is focused on buying/ owning things to a
shared economy (f.e. Uber, Airbnb) disrupt the business
The interaction between development activities and design environment
It’s also important to mention what is
not considered as an innovation.
Form concepts & Design trends are not
considered as innovation -> more related
to marketing and branding activities
Important to make the distinction between:
• Radical/ Disruptive innovation: a new
Radical or disruptive innovations technology pops-up and it disrupts an existing
market (according to Schumpeterian), f.e.
digital photography (Kodak, Nokia) (typical in
high tech or fast evolving industry such as
pharma-, ICT industry)
• Incremental innovation: continuously make
small improvements on a product, you move
along a certain technology path (typical in low
tech or traditional industry; like the food
industry, clothing industry)
this depends on the industry you’re on
* Technology = knowledge applied to products or
production processes
Doing, using and interacting (DUI) mode of innovation typical in traditional industry (incremental inno)
• In low and medium technology (LMT) intensive industries the traditional science and technology model
of innovation is not applicable and cannot explain continued product and process innovations.
• In LMT environments innovation can be explained through learning by doing and the use of networks of
interactions and extensive tacit knowledge.
• Incremental innovations (along the existing technology path – technology trajectories)
• Food industry: local – distribution – meat consumption – new diaries (insects, soya,…), new perceptions cows
• Incremental innovations (along the existing technology path – technology trajectories)
Up until here we talked about the perceptions of innovations, next we talk about innovation from a
management/ business perspective
