Complete summary for Technology in Organizations

Technology in Organizations
Lecture 2
{ Innovation Typologies, Innovation Management, & Value }

Invention = the creation of a ‘thing’ or ‘ability’ for the first time
Innovation = using that thing/ability to create impact
● Market entry: diffusion process
● Value creation by changing behaviors, interactions, processes, etc.
● Iterative in nature



Innovation process
1. Identification
Problem - opportunity

2. Investigation
Root cause – big picture

3. Ideation
Range & impact

4. Impact
Weigh — — — impact

5. Implementation
Get it done

Different model of innovation process:
1. Exploration → innovation process in organization
2. Exploitation → value propositions
3. Diffusion → innovation spread



Innovation process: (1) Exploration
● Trigger events
- Idea generation/creativity
- Scientific discovery
- Tech breakthrough
- Market/competitors
- Society
● Idea triggers
- Lone ranger
- R&D
- Open innovation




1

,Innovation as an organizational process
● We often associate innovation with creative individuals
● We consider creativity to be an amalgamation of intellectual abilities, knowledge,
personality, etc.

● This is not often the case: innovation is more often a group process
○ Within departments (R&D), across departments, or even outside the
organization
○ Innovation is a combination of organizational affordances:
■ Human capital, knowledge management, strategy, culture, structure,
etc.

● An organization’s characteristics affect innovation capabilities



Innovation funnel
● The process from ideation to practice is
called the innovation funnel
○ From (many) ideas to ultimately
few innovations in practice



= Traditional innovation



Open innovation
● Includes everything outside the
organization →




Crowdsourcing in relation to open innovation




2

,Types of innovation
1. Product/service innovation
Product innovation:
● Incremental or disruptive change
● Relative advantage to the change
● Requires 1000-100-10-1 funnel process
● Differentiate from competition
Service innovation
● Everything not physical: better as bundle of capabilities for a consumer to satisfy
certain needs
● E.g.: Picnic, Tikkie, Netflix
● Involves:
○ New concept, technology/customer interface, delivery system


2. Process innovation (= optimization)
● Change in the process of (buying) a product
● E.g. Dell → voorheen alleen keuze uit bestaande computers, nu zelf samenstelbaar

3. Business model innovation (= position)
● Long term (subscription) instead of short term (direct buy)

4. Paradigm innovation (= strategy)
● Changing the vision, mission and strategy of the organization



Innovation Typologies
Dichotomous (nominal) typology
● Disruptive or radical innovation
○ Start of a new product/process/idea lifecycle
○ At early stage of diffusion and adoption

● Incremental innovation
○ Advanced stages of the product lifecycle
○ Dominant design
○ Oftentimes occur during the diffusion process in the form of continual
improvements and upgrades




3

, Matrix typology
(Abernathy & Clark,
1985)




Innovation types & management
● Regular innovation: a new iPhone
○ Structure: mechanistic
○ Culture: internal
○ People: little change required

● Revolutionary innovation: Netflix
○ Structure: mechanistic
○ Culture: internal
○ People: process-oriented

● Architectural innovation: Dyson hairdryer
○ Structure: professional
○ Culture: open
○ People: innovative/willing to change

● Niche creations: vTech
○ Structure: professional
○ Culture: open/rational
○ People: external-oriented




4