Managing Innovation

About the Authors v Preface to the Seventh Edition vi How to Use This Book: Key Features viii 1 Innovation What It Is and Why It Matters 1 1.1 The Importance of Innovation 2 1.2 Innovation Is Not Just High Technology 4 1.3 Its Not Just Products . . . 7 1.4 Innovation and Entrepreneurship 9 1.5 Strategic Advantage Through Innovation 10 1.6 Old Question, New Context 15 1.7 The Globalization of Innovation 16 1.8 So, What Is Innovation? 19 1.9 A Process View of Innovation 22 1.10 The Scope for Innovation 24 Four Dimensions of Innovation Space 24 Mapping Innovation Space 28 1.11 Key Aspects of Innovation 29 Incremental Innovation Doing What We Do but Better 30 Component/Architecture Innovation and the Importance of Knowledge 31 Platform Innovation 33 The Innovation Life Cycle Different Emphasis Over Time 34 Discontinuous Innovation What Happens When the Game Changes? 37 1.12 Innovation Management 42 Summary 44 Further Reading 45 Other Resources 47 References 48 2 Digital Is Different? 50 2.1 What Is Digital Innovation? 51 2.2 Is It New? 54 2.3 Is It Revolutionary? 55 2.4 What Does It Mean for Innovation? 56 2.5 What Does It Mean for Innovation Management? 59 The New Digital Toolkit 60 New Ways of Thinking About Innovation Management 64 Summary 67 Further Reading 67 Other Resources 68 References 68 3 Innovation as a Core Business Process 70 3.1 The Innovation Journey 70 3.2 Different Circumstances Similar Management Challenges 72 3.3 Variations on a Theme 73 Services and Innovation 73 Service Innovation Emphasizes the Demand Side 77 The Extended Enterprise 79 Innovation in the Non-commercial Arena 79 Not-for-Profit Innovation 80 Social Entrepreneurship 82 3.4 Cross Sector Differences 84 Organizational Size 84 Project-based Organizations 85 Platform Innovation 85 Ecosystems 86 The Influence of Geography 86 Regulatory Context 87 Industry Life Cycle 87 3.5 Do Better/Do Different 88 3.6 A Contingency Model of the Innovation Process 90 3.7 Evolving Models of the Process 90 3.8 Can We Manage Innovation? 93 3.9 Building and Developing Routines across the Core Process 95 Navigating the Negative Side of Routines 95 3.10 Learning to Manage Innovation 96 Identifying Simple Archetypes 97 Measuring Innovation Success 98 What Do We Know About Successful Innovation Management? 99 Success Routines in Innovation Management 101 Key Contextual Influences 107 3.11 Beyond the Steady State 108 Summary 108 Further Reading 109 Other Resources 109 References 110 4 Developing an Innovation Strategy 115 4.1 Rationalist or Incrementalist Strategies for Innovation? 116 Rationalist Strategy 117 Incrementalist Strategy 120 Implications for Management 121 4.2 Innovation Leadership versus Followership 123 4.3 The Dynamic Capabilities of Firms 126 Institutions: Finance, Management and Corporate Governance 126 Learning and Imitating 128 4.4 Appropriating the Benefits from Innovation 130 4.5 Exploiting Technological Trajectories 136 4.6 Developing Firm-specific Competencies 139 Hamel and Prahalad on Competencies 139 Assessment of the Core Competencies Approach 141 Developing and Sustaining Competencies 144 4.7 Globalization of Innovation 149 4.8 Enabling Strategy Making 154 Routines to Help Strategic Analysis 154 Portfolio Management Approaches 155 Summary 157 Further Reading 158 Other Resources 158 References 159 5 Building the Innovative Organization 164 5.1 Shared Vision, Leadership and the Will to Innovate 166 5.2 Appropriate Organizational Structure 172 5.3 Key Individuals 176 5.4 High Involvement in Innovation 179 5.5 A Roadmap for the Journey 183 5.6 Effective Team Working 186 5.7 Creative Climate 192 5.8 Boundary-Spanning 204 Contents xiii Summary 207 Further Reading 207 Other Resources 208 Reference