Managing Innovation: Integrating Technological, Market and Organizational Change

Managing Innovation is the bestselling text for graduate and undergraduate students and a classic in the field. Emphasizing practical, evidence based tools and resources, this title provides students with the knowledge base to successfully manage innovation, technology, and new product development. The holistic approach addresses the interplay between the markets, technology, and the organization, while relating the unique skill set required to manage innovation and innovation processes. The sixth edition of Managing Innovation continues to include the popular “Innovation in Action” sections in each chapter which are now newly titled Case Studies, and also features a number of new cases, updated and new research notes and references, and links to videos, audio interviews, activities, and case studies. The sixth edition also features new material on emerging innovation themes, including business model innovation, user innovation, crowd-sourcing, creativity, entrepreneurship, service innovation, public services, and more. The rapid pace of the field's evolution has brought an increase in multi-disciplinary approaches and skills, while expanding the available tool kit and pushing the boundaries of possibility forward. This text provides expert navigation through the abundance of new data, new methods, new concepts, and approaches — but it is designed to encourage and support tailored experimentation, not replace it. Equipped with a strong foundation and a productive innovation management mindset, today’s students will be equipped to bring about the era’s next great advances.

Table of Contents:
About The Authors v Preface To The Sixth Edition vii How To Use This Book: Key Features ix 1 Innovation – What It Is and Why It Matters 1 1.1 The Importance of Innovation 1 1.2 Innovation Is Not Just High Technology 3 1.3 It’s Not Just Products 6 1.4 Innovation and Entrepreneurship 7 1.5 Strategic Advantage Through Innovation 9 1.6 Old Question, New Context 14 1.7 What Is Innovation? 15 1.8 A Process View of Innovation 19 1.9 Innovation Scopes and Types 20 1.10 Key Aspects of Innovation 26 1.11 Innovation Management 40 Summary 44 Further Reading 44 Case Studies 46 References 46 2 Innovation as a Core Business Process 48 2.1 Different Circumstances, Similar Management 49 2.2 Services and Innovation 50 2.3 Variations on a Theme 55 2.4 A Contingency Model of the Innovation Process 63 2.5 Evolving Models of the Process 64 2.6 Can We Manage Innovation? 67 2.7 Learning to Manage Innovation 70 2.8 What Do We Know About Successful Innovation Management? 73 2.9 Beyond the Steady State 83 Summary 84 Further Reading 84 Case Studies 85 References 85 3 Building the Innovative Organization 89 3.1 Shared Vision, Leadership, and the Will to Innovate 91 3.2 Appropriate Organizational Structure 96 3.3 Key Individuals 100 3.4 High Involvement in Innovation 103 3.5 A Roadmap for the Journey 108 3.6 Effective Team Working 111 3.7 Creative Climate 117 3.8 Boundary-Spanning 131 Summary 134 Further Reading 134 Case Study 135 References 135 4 Developing an Innovation Strategy 139 4.1 “Rationalist” or “Incrementalist” Strategies for Innovation? 140 4.2 Innovation “Leadership” versus “Followership” 147 4.3 The Dynamic Capabilities of Firms 150 4.4 Appropriating the Benefits from Innovation 156 4.5 Exploiting Technological Trajectories 161 4.6 Developing Firm-specific Competencies 164 4.7 Globalization of Innovation 175 4.8 Enabling Strategy Making 180 Summary 184 Further Reading 184 Case Studies 185 References 185 5 Sources of Innovation 190 5.1 Where Do Innovations Come From? 190 5.2 Knowledge Push 191 5.3 Need Pull 193 5.4 Making Processes Better 196 5.5 Crisis-driven Innovation 198 5.6 Whose Needs? The Challenge of Underserved Markets 200 5.7 Emerging Markets 204 5.8 Toward Mass Customization 206 5.9 Users as Innovators 208 5.10 Using the Crowd 210 5.11 Extreme Users 213 5.12 Prototyping 214 5.13 Watching Others – and Learning From Them 215 5.14 Recombinant Innovation 215 5.15 Design-led Innovation 217 5.16 Regulation 219 5.17 Futures and Forecasting 220 5.18 Accidents 220 Summary 222 Further Reading 222 Case Studies 223 References 223 6 Search Strategies for Innovation 226 6.1 The Innovation Opportunity 227 6.2 When to Search 229 6.3 Who Is Involved in Search 230 6.4 Where to Search – The Innovation Treasure Hunt 232 6.5 A Map of Innovation Search Space 235 6.6 How to Search 238 6.7 Absorptive Capacity 241 6.8 Tools and Mechanisms to Enable Search 243 Summary 251 Further Reading 252 Case Studies 252 References 253 7 Innovation Networks 255 7.1 The “Spaghetti” Model of Innovation 256 7.2 Innovation Networks 258 7.3 Networks at the Start-up 266 7.4 Networks on the Inside 267 7.5 Networks on the Outside 268 7.6 Networks into the Unknown 272 7.7 Managing Innovation Networks 275 Summary 278 Further Reading 278 Case Studies 278 References 279 8 Decision Making Under Uncertainty 281 8.1 Meeting the Challenge of Uncertainty 282 8.2 The Funnel of Uncertainty 282 8.3 Decision Making for Incremental Innovation 284 8.4 Building the Business Case 287 8.5 Concept Testing and Engaging Stakeholders 289 8.6 Spreading the Risk 290 8.7 Decision Making at the Edge 291 8.8 Mapping the Selection Space 297 Summary 302 Further Reading 303 Case Studies 303 References 303 9 Making the Innovation Case 306 9.1 Developing the Business Plan 306 9.2 Forecasting Innovation 310 9.3 Estimating the Adoption of Innovations 315 9.4 Assessing Risk, Recognizing Uncertainty 326 9.5 Anticipating the Resources 333 Summary 343 Further Reading 344 Case Studies 344 References 345 10 Creating New Products and Services 347 10.1 Processes for New Product Development 347 10.2 Factors Influencing Product Success or Failure 356 10.3 Influence of Technology and Markets on Commercialization 362 10.4 Differentiating Products 367 10.5 Building Architectural Products 370 10.6 Commercializing Technological Products 376 10.7 Implementing Complex Products 380 10.8 Service Innovation 383 Summary 390 Further Reading 391 Case Studies 391 References 392 11 Exploiting Open Innovation and Collaboration 394 11.1 Joint Ventures and Alliances 394 11.2 Forms of Collaboration 399 11.3 Patterns of Collaboration 402 11.4 Influence of Technology and Organization 404 11.5 Collaborating with Suppliers to Innovate 417 11.6 User-led Innovation 422 11.7 Extreme Users 424 11.8 Benefits and Limits of Open Innovation 428 Summary 431 Further Reading 431 Case Studies 432 References 432 12 Promoting Entrepreneurship and New Ventures 436 12.1 Ventures, Defined 436 12.2 Internal Corporate Venturing 448 12.3 Managing Corporate Ventures 455 12.4 Assessing New Ventures 459 12.5 Spin-outs and New Ventures 469 12.6 University Incubators 471 12.7 Growth and Performance of Innovative Small Firms 479 Summary 487 Further Reading 488 Case Studies 489 References 489 13 Capturing the Business Value of Innovation 493 13.1 Creating Value through Innovation 493 13.2 Innovation and Firm Performance 498 13.3 Exploiting Knowledge and Intellectual Property 502 13.4 Sharing and Distributing Knowledge 508 13.5 Exploiting Intellectual Property 513 13.6 Business Models and Value Capture 521 13.7 Dynamics of Generative Interaction 525 Summary 527 Further Reading 527 Case Studies 528 References 528 14 Capturing Social Value 531 14.1 Building BRICs – The Rise of New Players on the Innovation Stage 531 14.2 Innovation and Social Change 536 14.3 The Challenge of Sustainability-led Innovation 542 14.4 A Framework Model for Sustainability-led Innovation 543 14.5 Responsible Innovation 548 Summary 552 Further Reading 552 Case Studies 553 References 553 15 Capturing Learning from Innovation 554 15.1 What We Have Learned About Managing Innovation 554 15.2 How to Build Dynamic Capability 556 15.3 How to Manage Innovation 557 15.4 The Importance of Failure 559 15.5 Tools to Help Capture Learning 560 15.6 Innovation Auditing 563 15.7 Measuring Innovation Performance 564 15.8 Measuring Innovation Management Capability 565 15.9 Reflections 567 15.10 Developing Innovation Capability 572 15.11 Final Thoughts 574 Summary 575 Further Reading 575 Case Studies 575 References 575 Index 577