Innovation; the process by which organizations use their skills and resources to
develop new goods and services or to develop new production and operating
systems so that they can better respond to the needs of their customers.
Advances of technology are at the heart of the innovation process. In general there
are two principal types of technological change; quantum change and incremental
change.
Quantum technological change; a fundamental shift in technology that
revolutionizes products or the way they are produced. E.g. the first computers.
Quantum innovations; new products or operating systems that incorporate quantum
technological improvements. E.g. introduction of Intel’s 4004 microprocessor, the
first computer on a chip. Quantum innovations are likely to create uncertainty
because they force organizations to change the way they operate.
Incremental technological change; refers to the improvements that are continuously
made to particular technologies over time
Incremental innovations, superior products or operating systems that incorporate
and benefit from the refinements from incremental technological change.
New innovative ideas can be protected by property rights.
Intrapreneurship; entrepreneurs inside an organization who are responsible for the
success or failure of a project.
Creativity; ideas going beyond the current boundaries whether those boundaries are
based on technology, knowledge, social norms or beliefs.
Knowledge-creating organization; an organization where innovation is going on at all
levels and in all areas.
Product life cycle; the changes in demand for a product that occur over time.
Demand for the most successful, innovative, new products passes through four
stages:
1) Embryonic stage; a product has yet to gain widespread acceptance;
customers are unsure what the technology embed in the product has to offer
them, so there is little demand for it.
2) Growth stage; many consumers are entering the market and buying the
product for the first time; demand increases rapidly.
3) Mature stage; begins when market demand peaks because most customers
have already bought the product (relatively few first-time buyers are left). At
this stage, demand is typically replacement demand because incremental
, innovation has resulted in a new generation of products that have better
features.
4) Decline stage; follows when demand for a product falls because quantum
technological change technologically obsolete.
Things that influence the product life cycle:
- Rate of technological change (e.g. cars last 3-5 years due to new innovations)
- Role of fads and fashion (organizations are increasingly watching the
changing needs of customers and investing resources to develop new
technologies and products that will meet those needs)
Project management; the process of leading and controlling a project so it results in
the creation of effective new or improved products
Project; a subunit whose goal centers on developing the products or service on time,
within budget, and in conformance with predetermined performance specifications.
Project managers employ quantitative modeling to conduct effective advanced
planning to uncover potential bottlenecks and t help speed progress toward
successful completion of a project. Such models help PMs to develop ‘What
if?’scenarios
Modeling approach:
1) PERT/CAM network aka GANTT chart: flowcharts of a project that can be built
with many proprietary software packages. These software packages focus on:
a. Modeling the sequences of actions necessary to reach a project’s goal
b. Relating those actions to cost and time criteria such as the per-week
cost of the scientists and engineers employed in the project
c. To sort out and define the optimal path for reaching the goal.
2) Critical path method (CPM): the goal of CPM is to determine which particular
tasks or activities of the many that have to be performed are critical in their
effect on project time and cost and thus to determine how to sequence or
schedule critical tasks so a project can meet a target date at a minimum cost.
Stage-gate funnel: the purpose of this is to establish a structured and coherent
innovation process that both improves control over the product development effort
and forces managers to make choices among competing new product development
projects so resources are not spread too thinly over too many projects.
A heavyweight team leader is a true project manager who has higher status within
the organization. The heavyweight team leader is given primary control over key
human, technological and financial resources for the duration of the project. This
develop new goods and services or to develop new production and operating
systems so that they can better respond to the needs of their customers.
Advances of technology are at the heart of the innovation process. In general there
are two principal types of technological change; quantum change and incremental
change.
Quantum technological change; a fundamental shift in technology that
revolutionizes products or the way they are produced. E.g. the first computers.
Quantum innovations; new products or operating systems that incorporate quantum
technological improvements. E.g. introduction of Intel’s 4004 microprocessor, the
first computer on a chip. Quantum innovations are likely to create uncertainty
because they force organizations to change the way they operate.
Incremental technological change; refers to the improvements that are continuously
made to particular technologies over time
Incremental innovations, superior products or operating systems that incorporate
and benefit from the refinements from incremental technological change.
New innovative ideas can be protected by property rights.
Intrapreneurship; entrepreneurs inside an organization who are responsible for the
success or failure of a project.
Creativity; ideas going beyond the current boundaries whether those boundaries are
based on technology, knowledge, social norms or beliefs.
Knowledge-creating organization; an organization where innovation is going on at all
levels and in all areas.
Product life cycle; the changes in demand for a product that occur over time.
Demand for the most successful, innovative, new products passes through four
stages:
1) Embryonic stage; a product has yet to gain widespread acceptance;
customers are unsure what the technology embed in the product has to offer
them, so there is little demand for it.
2) Growth stage; many consumers are entering the market and buying the
product for the first time; demand increases rapidly.
3) Mature stage; begins when market demand peaks because most customers
have already bought the product (relatively few first-time buyers are left). At
this stage, demand is typically replacement demand because incremental
, innovation has resulted in a new generation of products that have better
features.
4) Decline stage; follows when demand for a product falls because quantum
technological change technologically obsolete.
Things that influence the product life cycle:
- Rate of technological change (e.g. cars last 3-5 years due to new innovations)
- Role of fads and fashion (organizations are increasingly watching the
changing needs of customers and investing resources to develop new
technologies and products that will meet those needs)
Project management; the process of leading and controlling a project so it results in
the creation of effective new or improved products
Project; a subunit whose goal centers on developing the products or service on time,
within budget, and in conformance with predetermined performance specifications.
Project managers employ quantitative modeling to conduct effective advanced
planning to uncover potential bottlenecks and t help speed progress toward
successful completion of a project. Such models help PMs to develop ‘What
if?’scenarios
Modeling approach:
1) PERT/CAM network aka GANTT chart: flowcharts of a project that can be built
with many proprietary software packages. These software packages focus on:
a. Modeling the sequences of actions necessary to reach a project’s goal
b. Relating those actions to cost and time criteria such as the per-week
cost of the scientists and engineers employed in the project
c. To sort out and define the optimal path for reaching the goal.
2) Critical path method (CPM): the goal of CPM is to determine which particular
tasks or activities of the many that have to be performed are critical in their
effect on project time and cost and thus to determine how to sequence or
schedule critical tasks so a project can meet a target date at a minimum cost.
Stage-gate funnel: the purpose of this is to establish a structured and coherent
innovation process that both improves control over the product development effort
and forces managers to make choices among competing new product development
projects so resources are not spread too thinly over too many projects.
A heavyweight team leader is a true project manager who has higher status within
the organization. The heavyweight team leader is given primary control over key
human, technological and financial resources for the duration of the project. This
