Assignemt Innovation & Entrepreneurship

if anyone would like to do the assignment before we do the shake hand i need also to send my presentaion slides which i had at uni to use it for the assigment to cover the qustions because my uni is so hard to mark the assignment and they give the student a low mark if they didnt answer the ex right qustions

that why i want the person who would like to do the assignment to use the slides i had at uni to cover the right qustions

please if you have an qustions about the assignment please ask

Innovation& Entrepreneurship

Assignment Brief (2011/12)

All Centres

The aim of the assignment is to provide students with the opportunity of exploring:

The role and value of entrepreneurship and innovation in their own professional working environment

· An understanding of how these may be applied to their organisation

· The particular barriers to entrepreneurship and innovation in their own organisation

· An appreciation of how their working environment might be adapted to facilitate an entrepreneurial management orientation with increased innovation outcomes for organisational economic renewal

The individual assignment consists of a management report
wherein students are asked to:

· Working within your own organisation, critically analyse and evaluate the organisation’s ability to innovate and behave entrepreneurially, using the assumption that entrepreneurial management delivers innovation. Identify a potential innovation for your organisation and outline a plan “to make it happen”

If the organisation is a very large one, select a discrete / independent area within your work organisation on which to carry out the analysis. The influence of the rest of the organisation on the area you are considering should be included.

These are the necessary elements to the task:-

· Define your terms carefully at the outset

· From your learning within the module and from reading, identify the management and employee behaviours that support / create a barrier to successful achievement of information

a) Consider these factors in an innovation audit on your organisation Identifying recent innovation across the categories product, service, process at a basic level, then organisational or strategic innovation at a higher level. The innovation categories maybe further considered as incremental, radical or transformational

b) the organisational behaviours that either impede or facilitate entrepreneurial management with innovation outcomes, either by management or other employees

c) Identify the specific critical factors/barriers for successful innovation in your organisation

d) Propose a potential innovation at any level , outlining how they would make the innovation happen, taking into account the factors indentified above that would need to change?

Word limit

,000

Marking criteria: The following areas will be taken in to account when marking the assignment:

· Underpinning Theoretical Knowledge Breadth and depth of academic knowledge and innovation and entrepreneurial management/entrepreneurship ie) understanding of organisational behaviours that facilitate entrepreneurial management orientation and innovation

· Application And Evaluation Thoroughness of the organisational innovation audit applying the concepts learnt, including careful consideration of any barriers identified with suggestions for improvement

· Synthesis ability to outline the management process whereby successful innovation can be achieved within your organisation

· Clarity of presentation and report writing style: the structure of the content , standard of English expression, use of Harvard business referencing & presentation on the page

Please consult the BLASC library website for details 1) on the form of referencing required.2) Report Writing

Criteria to be used in marking

Learning Outcomes	Task Working within your own organisation, critically analyse and evaluate the organisation’s ability to innovate and behave entrepreneurially, using the assumption that entrepreneurial management delivers innovation. Identify a potential innovation for your organisation and outline a plan “to make it happen”	%
Understand what is meant by innovation and entrepreneurship Assess why innovation and entrepreneurial management are important for wealth and value creation	Demonstration of role of innovation and entrepreneurship in an economy and organisation Comprehensive Definition of terms Understanding and application of an innovation model and entrepreneurial management Analysis and evaluation to include factors important for innovation		30
Evaluate the potential importance of innovation and entrepreneurial management in your own organisation	Analysis and Evaluation of organisation using module learning	40
Identification and justification of potential innovation, accompanied by outline of how to make it happen
·	100%

These is a guide for the assignment to help you to cover all the area and to write about

Executive summary

1 Introduction

1.1 Aim of the report

1.2 Background of your organisation

1.3 Defection of terms Innovation ,Entrepreneurship Creating value

1.4 Why its Importance of innovation and ,Entrepreneurship at your organisation find the best way to describe them and what is relevant

2 Analysis of innovation and, Entrepreneurship at your organisation (is social sectary or financial. Other…..)

2.1 innovation Audit ( Sector type of organisation) + diagram

2.2 factors supporting and hindering ,Entrepreneurship management and innovation at your organization (strategy), + diagram

3. Implementiing a potential innovation at your organisation + diagram

3.1 Entrepreneurial goals and innovation context (Structure leader and

Involvement) evolution and what are the key thing points for the structure leadership and involvement and key individuals

(Recur and trying and development)

(Resources and networking)

3.2 Recognising the opportunting.

3.3finding resources

3.4 developing the venture

3.5 creating value

Conclusion

Appendix

Reference

CG, Jan 2012

Module Teaching Objectives

To introduce students to the concept of innovation

To explain why it is important for all types of firm or organisation and country economies

To learn how to innovate and the role of ‘entrepreneurial management’ in this context

BS2402 Innovation & Entrepreneurship

Module Learning Outcomes
Understand what is meant by innovation
Understand what is meant by entrepreneurship
Assess why innovation and entrepreneurial management are important for wealth and value creation
Evaluate the potential importance of innovation and entrepreneurial management in your own organisation by using what you have learnt

BS2402 Innovation & Entrepreneurship

Your Expectations for module?

Think /note down, for 1min and be ready to share
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Module Structure Overview
Date Content Manual ref Assignment link
Wed 5th Sept Introduction to Innovation & defining
Assignment Brief.
Entrepreneurship.
Importance of innovation Unit s 1,2,3 Define innovation & types. Recent innovations in org’n
Understand assignment. Define entrepreneurship/ entrepreneurial management.
Sat 8th Sept Entrepreneurial/ innovation mgt process
Context for Innovation. Factors supporting/ hindering.
Managing the process
Overcoming barriers Units 4,5,6 Behaviours that impede or facilitate entrepreneurial management .
Critical factors/barriers?
Making the innovation happen

BS2402 Innovation & Entrepreneurship

“There’s nothing quite like doing it…”
Entrepreneur
Teaching innovation and entrepreneurship…
Tension
“This is how it should be done…”
University

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5
7.51pm
‘Teaching innovation and entrepreneurship’ does seem at odds.
Actually I disagree about the university ‘this is how it should be done’.
Purpose of university should be getting you to think critically. Skill can take to your workplace.
But even so there is a tendancy of university teaching to be all about analysis rather than the getting down to doing it trial and error of the entrepreneurial mindset.
Can’t say we will get fully past this, but perhaps you will leave with some appreciation of the importance of innovation and ideas as to how to foster successful innovation further in your organisations.

Unit1: Introduction to Innovation & Entrepreneurship

Unit Learning Outcomes
Understand broadly what is meant by innovation
Understand broadly what is meant by entrepreneurship
Understand broadly why innovation and entrepreneurial management are important for the creation of social and financial value
Introduction to a basic organisational process model
Recognise the potential importance of innovation and entrepreneurial management in your own organisation

BS2402 Innovation & Entrepreneurship

What is innovation?
What is your understanding of the term?
Brief class discussion
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Flip-chart answers
7

What is innovation? Participants in the EC Lisbon Council’s 2010 Innovation Summit
Listen to this video clip: What is innovation?

Afterwards –
Write down as many of the innovation descriptions as you can!
Just who are these people? Where do they come from
Class Discussion
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5min 24.
EIT = European Institute of Innovation & Technology.
The EIT is a body of the European Union. Our mission is to increase European sustainable growth and competitiveness by reinforcing the innovation capacity of the EU. We facilitate transitions: from idea to product, from lab to market, from student to entrepreneur.
To do so, we integrate higher education, research and business in areas of high societal need through our Knowledge and Innovation Communities (KICs), focused on the following topics: climate change mitigation (Climate-KIC), information and communication technologies (EIT ICT Labs) and sustainable energy (KIC InnoEnergy).
EIT headquarters are based in Budapest, Hungary. Knowledge and Innovation Communities gather hundreds of partners in 17 co-location centres across Europe
Suggest Google EIT – interesting information on what EU doing to promote innovation.
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INNOVATION: A Definition (E. Roberts)
Successful Exploitation and Implementation
INNOVATION
Good Idea
Invention
=
+
INPUTS
Group member
Knowledge, skills, effort
Entrepreneurial/ Innovation Management Process
OUTPUTS
adding value

BS2402 Innovation & Entrepreneurship
KEY:
Ie: can consider Innovation both as being a THING = OUTPUT that adds value. “an innovation”
OR/AND
As being the PROCESS of achieving these. (also called entrepreneurial management process). “innovation” as verb/process.
Will come back to concept as Innovation Management/Entrepreneurial Management as a process next week.

Evolutionary “Creative Destruction” Joseph Schumpeter
“This process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in….”
introducing new commodities or qualitatively better versions of existing ones;
finding new markets;
new methods of production and distribution;
new sources of production for existing commodities;
introducing new forms of economic organisations” (Schumpeter, 1942)
Schumpeter’s Innovation Definition:

BS2402 Innovation & Entrepreneurship
Joseph Schumpeter was the first economist who clearly identified innovation as an outcome of entrepreneurship (Schumpeter 1934). He identifies the economic effects of an entrepreneur on the system. Schumpeter argues, early in his career, that an entrepreneur disrupts markets and causes new ones to be formed in circular flows.
Nb: His focus was primarily private industry. Had some suggested types/modes of innovation. (poss share examples, or just continue)
Defined different modes of innovation as:
New commodities (products) – e.g. Ipad;
New markets – (new segments) e.g. India offering surgery to UK people; e.g. 3M with an eye-scan technology developed to understand how people see traffic signs, adapting for advertising research.
Methods of production – e.g. Key-hole surgery. (& minute robots- even smaller incisions possible in future); float glass; synthetic insulin
Methods of distribution – e.g. Downloading music; online streaming of music and film.
New sources of production – e.g. Silicone;
New forms of organisations – e.g. Amazon; e-bay; Streetcar;

Note he still talks about it in an active, process ways. “introducing.”; “finding”; i.e. Both the process AND the outcome can be considered as innovation.

Innovation is the process by which new ideas are successfully exploited to create economic, social and environmental value.BIS (2011) http://www.bis.gov.uk/innovation
‘innovation is the process of successfully bringing something new into use, to a market or community, that satisfies need or latent demand’ (Gurling, 2010, Unit 1)
‘A process starting with an invention or an idea, proceeds with the development of the invention/idea and results in the introduction of a new product, process or service to the market place” (Acs and Audretch, 1998)
Companies achieve competitive advantage through acts of innovation. They approach innovation in its broadest sense, including both new technologies & new ways of doing things’ (Michael Porter 2009)
At most simple level “Something new of value to the world, made to happen!”

Broad set of Definitions for Innovation:
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BS2402 Innovation & Entrepreneurship
Schmpeter focussed on markets and capatilism. But it isn’t just that.
Here other broad definitions for Innovation.
These mostly focus on the process – with value as outcome.
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Without “new things” appearing in the marketplace:-
No stimulus to demand and supply
Jeopardises sustainable economic growth
Innovation is therefore an essential ingredient to a free-market economy to encourage growth in demand and supply – basic economics
Creative tides of destruction destroying old markets and replacing them with new ones

BS2402 Innovation & Entrepreneurship

Innovation creates value

Types of Value
Economic
Financial
Social
Environmental
Aesthetic
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Examples:
Economic/Financial: New products; New simultaneous project management process – allowed reduced product to market time for medicines – financial for drug Co (but also potentially economic and social if treat diseases better, sooner)
e.g. Microfinance – economic and social
e.g. Oyster card – economic, financial?
e.g. Congestion charge – environmental
e.g. Boris Bikes – Environmental
e.g. Key-hole surgery – social & economic (coz less time in hospital so save money); Spain – using online technology to enable patients to manage themselves more from home. Pal – setting up remote medical diagnostics for oil platforms and remote rural areas. (Social, economic)
e.g. A new design of bridge (first suspension bridge; Goya’s architectural style) – Aesthetic
Your examples?
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Innovation is not the same as Creativity
Creativity: The generation of new ideas
Innovation: The successful exploitation of new ideas
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Kuhn suggests
“creativity forms something from nothing but that innovation shapes that something into products and services “ (Kuhn, 1985).
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Generation of ideas
So how do you find ideas?
Discuss then watch video:

Watch Video: Steve Jobs Where do ideas come from?

BS2402 Innovation & Entrepreneurship

The Creative Thinking Process
Creative Process
Knowledge
Accumulation
Ideas
Evaluation
&
Implementation
Incubation

BS2402 Innovation & Entrepreneurship

Knowledge
Accumulation
Ideas
Evaluation
&
Implementation
Incubation

Individual or team – which is better?

BS2402 Innovation & Entrepreneurship

“Design” links creativity and innovation
Shapes ideas to become practical and attractive propositions for users or customers
Design may be described as creativity to point to a specific end (Cox review on Creativity in Business: building on the UK’s strength 2005)

Design Application
Prototyping
Piloting
Idea/Invention
Innovation

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Recognise opportunity
Find Resources
Develop Venture by picking and deploying resources
Create Value
Entrepreneurial
Goals and Innovation Context
Strategic Vision and direction
Learning
CG Adapted Innovation and E’ship Management Model: Bessant and Tidd 2nd Ed 2011

BS2402 Innovation & Entrepreneurship

Innovations can be classified (or categorised) in many different ways
All to help think about what you can do to achieve successful innovation
So…..here are some categorisations ..

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Dimensions of innovations space
Transformational
Radical
Incremental
Product Service Process
Perceived extent of change
What is changed
(Tidd, Bessant and Pavitt)

BS2402 Innovation & Entrepreneurship
One way of considering innovation.
We will go into this in detail as it is critical to your first task in the assignment.
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Tidd,Bessant & Pavitt’s: Definition of Innovation
Incremental Innovation – small improvements to existing products, services or processes- “do what we do but better”
Radical Innovation – Significantly different changes to products, services or processes – “ do what we do differently”
Transformational Innovation – Offering something that provides the platform on which other variations and generations can be built. (e.g. The wheel, printing press, internet – one thing, wide impact)

BS2402 Innovation & Entrepreneurship
Transformational Innovation – not found a good source of a definition, but think it is about the basis on which other innovations are built.
Tidd & Bessant talk about robust platform design = offering something which provides the platform ion which other variations and generations can be built.
e.g. Sony’s original walkman architecture. – spawned several generations of personal audio equipment.
e.g. Boeing 737 – over 30 years old, but design still being adapted for different users.
e.g. Intel and AMD with microprocessor families.

Transformational innovation leads to new growth platforms – for example, redefining the the toothbrush business as oral care leading not only to electric toothbrushes, but to a thorough re-examination of the oral care ecosystem. http://oysterinternational.com/white_papers.htm
e.g: The invention of the wheel. The printing press. The internet. Lots of examples like that. Dramatically changed life for all of us. One thing, huge impact, new curve.
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Tidd,Bessant & Pavitt’s: Definition of Innovation
Product innovation – change in the things that (products/services) which an organisation offers
Process innovation – changes in the ways in which they are created and delivered
Position innovation-changes in the context in which the product for services are introduced ( Market)
Paradigm innovation which frame what the organisation does ( Strategic / Domain Transformation)

BS2402 Innovation & Entrepreneurship

Finnegan’s Fish Bar: Video clip applying Bessant & Tidd’s innovation model to a Fish & Chip shop

http://www.managing-innovation.com/vr_finnigans.php
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Take note of the innovation examples given, ready to discuss

BS2402 Innovation & Entrepreneurship
Greg, Louise, Iain/Shazi you will need to register to the book website to access the video www.iande.info for this video and others.

Check time
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Innovation: the OECD Definition – 4 types of innovation identified in the Oslo Manual for measuring innovation:

Product Innovation: a good or service that is new or significantly improved.
Process innovation: involves a new or significantly improved production or delivery method
Marketing Innovation: Marketing innovation involves a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.
Organisational Innovation : Organisational innovation involves introducing a new organisational method in the firm’s business practices, workplace organisation or external relations.
These innovations can be new to the firm/educational institution, new to the market/sector or new to the world
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BS2402 Innovation & Entrepreneurship
Discuss Organisational Innovation with class

These a bit like/overlap with the Tidd & Bessant:
Positioning = a bit like Marketing Innovations
Paradigm = a bit like Organisational Innovation.
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Plus…… Service Innovation
A new or significantly improved service concept put into practice.
e.g. can be a new customer interaction channel, distribution system or a technological concept or a combination of them.
Service innovation always includes replicable elements that can be identified & systematically reproduced in other environments.
Service innovation benefits both the service producer and customers
Competitive edge for the service provider can be based based on some technology or systematic method.

BS2402 Innovation & Entrepreneurship
Poss handout only
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Technical / technological innovation
…a mix of physical appliances and human ways of doing things involving:
1. Creating new knowledge
Generating technical ideas aimed at new and enhanced products, manufacturing processes and services
Developing those ideas into working prototypes; and
Transferring them into manufacturing, distribution and use
Sources: Scarborough and Corbin (1992); Roberts, E.B. (1988)
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BS2402 Innovation & Entrepreneurship
Poss handout only
28

Social Innovation – Mulgan and Albury 2003
“New ideas that meet unmet needs, social innovations – are all around us.
Include Fair trade and restorative justice, hospices and kindergartens, distance learning and traffic calming.
Over last two centuries, innumerable social innovations, from cognitive behavioural therapy for prisoners to Wikipedia, have moved from margins to the mainstream.
As this has happened, many have passed through the three stages identified by Schopenhauer for any new ‘truth’:

‘First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident” “
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Poss handout only
29

Watch and listen: Skoll Foundation Video
An example of a social entrepreneurship starting with – Mohammed Yunus
Nobel Prize Winner Grammeen Bank for microfinance

9 mins

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So who carries out innovation?
Entrepreneurs!
Where do we find them?
Individuals in independent new ventures – new venture entrepreneurship
Working inside organisations – intrapreneurs as individuals or teams
Organisational level – corporate entrepreneurship – many different types depending on the organisation characteristics and what needs to be done

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32
“Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced.”
32
Peter Drucker on the relationship between Innovation & Entrepreneurship
Drucker 1991 HBR The Discipline of Innovation

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33
Innovation & Entrepreneurship
Different sides of the same coin!
Innovation

Entrepreneurship

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34
So what is it entrepreneurs do?
Class Discussion…

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35
Definition of Entrepreneurship: Individual
‘A Human Creative Act that builds something of value from practically nothing.
It is the pursuit of opportunity regardless of resources….to hand.
It requires vision, passion and the commitment to lead others in the pursuit of that vision.
It also takes a willingness to take calculated risks’
Source: Timmons New Venture Creation 3rd Edition

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‘Entrepreneurship is process by which individuals – either on their own or inside organisations – pursue opportunities without regard to the resources they currently control’
Stevenson, Roberts and Grousebeck 89
Individual or Corporate entrepreneurship

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Stevenson and Gumpert 1990
“the process of discovering innovative opportunities, evaluating them and managing the innovation process to bring the innovation successfully into use”
Sharma and Chrisman 1999
“ a process whereby an individual or a group of individuals in association with an established company, creates a new organisation or instigates renewal or innovation within the current organisation”
Corporate Entrepreneurship Definitions

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A pattern of management behaviour that produces innovation (individual, group or firm level)
Perceives and Identifies innovative opportunities
Takes ‘Risk’ in pursuing this opportunity
Finds and Gathers scarce resources into appropriate combinations to create an organisation, which delivers innovation and value to customer, founder, investor and stakeholder
Continually ‘reaches’ for the necessary resources to solve problems and foster firm growth (Baumol)
Entrepreneurship:

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39
Fitting the entrepreneurial management process onto innovation using Robert’s innovation model
Successful Exploitation and Implementation
INNOVATION
Good Idea
Invention
=
+
INPUTS
Group member
Knowledge, skills, effort
Entrepreneurial/ Innovation Management Process
OUTPUTS
adding or creating value
39

BS2402 Innovation & Entrepreneurship
Unit 2: Role of Innovation & Entrepreneurship in the Economy

BS2402 Innovation & Entrepreneurship

Why is entrepreneurship & Innovation so important?
Class Discussion

National Level

Organisation Level

Individual Level
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BS2402 Innovation & Entrepreneurship

National Level – The impact of entrepreneurship / new firm starts / innovation on economic performance
Number of new enterprises linked to overall GDP performance ( Link of TEA / global entrepreneurship monitor to economic performance / OECD Audretsch & Thurik
I.e. positive effect of start-ups on economic growth.
In Developed Economies
Industry structure is generally shifting towards an increased role for small enterprises.
Extent and timing of this shift not identical across countries.
Shift in industry structures towards a greater role for SMEs heterogeneous / shaped by country-specific factors.
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UK “Innovation Nation” White Paper Mar. 2008
“Innovation is essential to the UK’s future economic prosperity and quality of life. To raise productivity, meet the challenges of globalisation and to live within our environmental and demographic limits, the UK must excel at all types of innovation.”

UK Coalition Government 2011
Innovation is the process by which new ideas are successfully exploited to create economic, social and environmental value. http://www.bis.gov.uk/innovation 2011
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Why innovate? EU Commission considers http://ec.europa.eu/enterprise/sme/innovation_en.htm#

“Innovation is now widely understood to be the driving force in economic growth. ( Addition CG- in a free market economy)
It is new products and services, and new methods for making or delivering them which add value to our economy, and enable us to improve standards of living.
SMEs are responsible for much of the innovation which leads to new higher value products and services (even if ultimately larger firms may take on production and mass marketing of such innovations), and so the European Commission seeks to promote innovation to SME’s and all organisations across Europe”
Organisational level
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Entrepreneurship & firm creation long been recognised as a vital force driving innovation.
With globalization & co-incident shift towards a knowledge-based economy, link between entrepreneurship policy & innovation received renewed attention.
By underpinning firm creation & firm expansion, entrepreneurship policies strengthen innovation, increasing productivity in the enterprise sector.
In return, policies fostering innovation will tend to spur firm creation as the results of R&D are commercialized.
OECD Fostering Entrepreneurship

BS2402 Innovation & Entrepreneurship

Individual level: The Organisation for Economic Co-Operation and Development
Towards an Enterprising Culture. (OECD (1989)
–
“An enterprising individual has a positive, flexible & adaptive disposition to change, seeing it as normal and as an opportunity rather than a problem.
To see change in this way, an enterprising individual has a security born of self-confidence, & is at ease when dealing with insecurity, risks & the unknown.
An enterprising individual has the capacity to initiate creative ideas & develop them into action in a determined manner.
An enterprising individual is able, even anxious to take responsibility, is an effective communicator, negotiator, influencer, planner & organiser. An enterprising individual is active, confident and purposeful — not uncertain & dependent“
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BS2402 Innovation & Entrepreneurship

Economic renewal / rejuvenation within the business environment (see J. Schumpeter, 1934) and enterprise
Response to accelerating pace of technological change, shorter life cycles, globalisation of markets (Krondatiev Waves) (Tidd, Bessant & Pavitt)
Socio – political cohesion improvement in communities as a means of furthering economic development through the third sector (Mort, Weerawardena & Carnegie 2003)
Value Creation and Competitive Advantage for those able to mobilize knowledge , technological skills and experience to create new products processes and services (Barney 91)
Reasons for intense focus on Innovation
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48
Recognise opportunity
Find Resources
Develop Venture by picking and deploying resources
Create Value
Entrepreneurial
Goals and Innovation Context
Strategic Vision and direction
Learning
CG Adapted Innovation and E’ship Management Model: Bessant and Tidd 2nd Ed 2011

BS2402 Innovation & Entrepreneurship
Dyson Case Study:
see electronic manual p 8 Unit 1
http://www.dyson.co.uk/about/story/
http://news.bbc.co.uk/1/hi/business/1802155.stm
http://news.bbc.co.uk/1/hi/uk/3046791.stm

View, Read and Discuss
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BS2402 Innovation & Entrepreneurship

Where do ideas come from within the company?
How does the company encourage
Opportunity selection
Innovation development
Successful implementation ie the management process adopted
What barriers did he face in introducing the Dyson vacuum cleaner?
Is Dyson an entrepreneur? Why?
Dyson Case Study:
see electronic manual p 8 Unit 1
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BS2402 Innovation & Entrepreneurship

Your Organisation: Task before next time
Ask around amongst your colleagues at work and find out what “new things” have been introduced in the past.
It is very easy to forget that the things that surround you were once probably new?
Eg zips, trainers, biros, plastic bottles….the same has probably been happening in your work context…
Try and identify their categories using the previous slide labelled Dimensions of Innovation Space
Any people around who consistently “ make new things happen? Could you categorise them as having an entrepreneurial approach through successfully introducing innovation?
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Recognise opportunity
Find Resources
Develop Venture by picking and deploying resources
Create Value
Entrepreneurial
Goals and Innovation Context
Strategic Vision and direction
Learning
CG Adapted Innovation and E’ship Management Model: Bessant and Tidd 2nd Ed 2011

BS2402 Innovation & Entrepreneurship

Dyson Case Study:
see electronic manual p 8 Unit 1
http://www.dyson.co.uk/about/story/
http://news.bbc.co.uk/1/hi/uk/3046791.stm

http://www.youtube.com/watch?v=vjD69XIv0xs
(4min)
View, Read and Discuss
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BS2402 Innovation & Entrepreneurship
Interview with James Dyson (4min) Might work as intro to the case.
http://www.youtube.com/watch?v=vjD69XIv0xs

Failure (59secs)
http://www.youtube.com/watch?v=P5eIyRVpwmc&feature=g-vrec&context=G2d93a4eRVAAAAAAAAAA
The Dyson Story (includes failure & quite good on learning from marketing research) 4min02

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BS2402 Innovation & Entrepreneurship

Exercise (if time) – in 3s. 10min.
Discuss your own organisations and/or sector.
What innovations can you think of within them?
Some may be quite old
Are they innovations created by your organisation or innovations that you use?
What type are they?
process, service, product?
incremental, radical?
55

BS2402 Innovation & Entrepreneurship

Your Organisation: Task before next time
Ask around amongst your colleagues at work and find out what “new things” have been introduced in the past.
It is very easy to forget that the things that surround you were once probably new?
Eg zips, trainers, biros, plastic bottles….the same has probably been happening in your work context…
Try and identify their categories using the previous slide labelled Dimensions of Innovation Space
Any people around who consistently “ make new things happen?” Could you categorise them as having an entrepreneurial approach through successfully introducing innovation?
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BS2402 Innovation & Entrepreneurship

Your Organisation: Task throughout module
Can you think of any nagging work problems or opportunities that need action?
Start to think, and jot down ,ideas for solving these problems or taking advantage of the opportunity.
Can you get a few colleagues together, or suggest it as a subject for a work meeting?
We will look further at prompting ideas and creativity on Sat 3rd March.
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Contributions to Study of Entrepreneurship
CAUSES
Why?
Psychology
Sociology
Importance of the individual culture and community
BEHAVIOUR
How?
Management

How to achieve entrepreneurial behaviour and outcomes
EFFECTS
What?
Economics

Function by which growth in the economy is achieved

(Derived from Stevenson and Jarillo SMJ 1990)




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Economics = main interest to the Govt.
So: Huge focus on small businesses, as greater potential for growth and belief of a greater propensity to get breakthrough innovations from these. + number of small businesses!

What Characteristics do you associate with an Entrepreneur?

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DISCUSSION: flip-chart answers. (or, if needed, get all on feet to do)
“Once have said something keep quiet.”
Make sure as many people as possible contribute

The Entrepreneur… (from Southon & West, 2002)
Entrepreneurs are:
confident
charismatic
obsessed with work
ambitious
in a hurry
arrogant
manipulative
high in energy
poor completers
impatient at times

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Psychology: The Causes
Why do people behave as entrepreneurs?
Why do we want to know?

Picking the right people / economic growth
Psychological approach: Understanding the entrepreneurial personality
Personality Traits (Hisrich & O’Brien 82, Chell 91)
Cognitive Theories of Behaviour
Socio-cultural:
Environmentally contingent

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Personality Trait Approach:
Internal Characteristics which explain Behaviour ? –
Internal Locus of Control (Miller & Freisen 84)
Need for Achievement (McCelland 61)
Desire for Autonomy (McCelland 61)
Tolerance of Ambiguity and Uncertainty (Schere 82)
Risk Taking /Overoptimistic (Begley & Boyd 87)
Financial motivation?

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Number of personality traits have consistently come out in research.
Some research shows clear financial motivation- as a means of keeping score- but there has been lots of interest in recent years about social entrepreneurs – motivated by the mission rather than financial gains (classic example would be Bob Geldof with Live Aid).

(NB: recent example where Richard Branson & ??Bob Geldof have set up a world leaders think-tank to try to get great minds to find creative solutions to some of the worlds biggest problems – Nelson Mandela, Bill Clinton & others)

Watch and listen: Skoll Foundation Video
An example of a social entrepreneurship starting with – Mohammed Yunus
Nobel Prize Winner Grammeen Bank for microfinance

9 mins

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Problems with the Trait approach
Little predictive power: no guarantee of entrepreneurial performance
Personality traits change over time
Ignores influence and interaction with the Environment: Social and Cultural, Nature and nurture debate
Difficulty in distinguishing the innate from learnt patterns of behaviour

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Socio-cultural Approach
Environment acts as stimulus
Geographic and Demographic Factors (Urban / Rural, Location / Cluster effect, Age Profile etc)
Economic Factors (Economic Climate, Legislative Environment, Specific Govt Assistance Schemes)
Social Factors (Class,Gender, Education, Family antecedents, Experience, Cultural background)
Market / Technology Development Environment acts as stimulus

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People have looked at particularly entrepreneurial communities.
Q: To what extent do you think these environmental factors have an impact?
Some impact, but entrepreneurs come from lots of different backgrounds.
Some communities – eg chinese, seem to be more entrepreneurial wherever they go in the world.
(Example clusters: manual shows music clusters in London and Manchester)
Example Social Factors: Anita Roddick – Italian Immigrant background. Family self employed + travelled alot. Impacted her attitudes and experiences for ideas.

Cognitive Theories: Entrepreneurial Behaviour Models
Behaviour modified by interaction with the environment
Personality traits + Environmental Factors + Individual Attitudes & Motivation + Learning = Behaviour

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The ‘Cornerstones’ of Support
Entrepreneur
Financier
Sales specialist
Delivery specialist
Technical innovator
Source: Southon & West

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Innovator doesn’t do it on his or her own. They need support – think dragon’s den.
Does this look like the functions in an organisation? Ie: R&D = technical; delivery = supply chain/operations;
Sales = sales & marketing.
Entrepreneur can take one or several of the roles. (often they are the technical innovator, but not necessarily)
(could share a Dragon’s Den example) – what is their role and where are the other elements of support coming from?

A pattern of management behaviour that produces innovation (individual, group or firm level)
Perceives and Identifies innovative opportunities
Takes ‘Risk’ in pursuing this opportunity (link to self-confidence)
Finds and Gathers scarce resources into appropriate combinations to produce an organisation to deliver that innovation(s)
Continually ‘reaches’ for the necessary resources to solve problems and foster firm growth (Baumol)
Management approach
Decision-making based on bias and heuristics; networking; opportunism

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GOT TO HERE – NOW CHECK VERSUS MANUAL – BEST POINTS FOR SLIDES
Ie: recognises innovative opportunities and encourages pursuit of these. (Acutely tuned to spotting opportunities)
RISK: Not bigger risks , just a different approach to risk. Some say ‘overoptimistic’ (Cooper et al, 1988, p3.17), – perhaps it is a lower fear of failure – or just an unwillingness to let that stop you (what is the risk of not taking the opportunity?) . Others link it to the decision-making process
Appropriate combinations of resources – it is this dynamic resource building concept of changing patterns and combinations of resources to create something unique that makes entrepreneurial management exp different from traditional management.
Q? what do we mean by resources? – people, finance, ‘stuff’.
Q: Heuristics = process of discovering & learning by doing/trial and error

Sharon Wright – Magnamol
Where did Sharon get the idea?
Which roles is Sharon currently fulfilling and what does she want from the Dragon/ Dragon to fund?
What risks has/ is she taking? (you may have to infer). What do you think spurred her on to take the risks?
What resources is Sharon using currently?
What characteristics does Sharon have that have helped her succeed, and so impressed the Dragons?

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Video = to 7min 50 (or 8min 14 inc magic wand). Have to explain –get more money than requested from Dragons that wants.
Idea:
From previous employment /knowledge & practical problem that needs a solution.
Roles:
Sharon – technical innovator; delivery specialist; sales – all currently.
Dragon – finance + funds for delivery probably so can do her ‘sales’/ambassador role.
Risks:
Gave up own job; Single mum – no other income (e.g. from partner).
Spurred on by self-belief that could make this big.
Resources:
Just self, office, one part-time admin (1 day per week). (i.e. Very few resources – no fat)
Characteristics:
Self-confidence and belief ; ambition (going global); impatience – 2 years wants to be further forward; forward thinking – already next invention; determination & stamina; pro-active – approached BT & has achieved contracts + got patent;

70
Recognise opportunity
Find Resources
Develop Venture by picking and deploying resources
Create Value
Entrepreneurial
Goals and Innovation Context
Strategic Vision and direction
Learning
CG Adapted Innovation and E’ship Management Model: Bessant and Tidd 2nd Ed 2011

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Entrepreneurial Management Style (after Stevenson & Gumpert , 1989)
‘PROMOTOR’ ‘TRUSTEE’
‘Entrepreneurial’ ‘Administrative’
Proactive Disinclined to change
Tolerant of uncertainty and ambiguity Guards resources
Able to make incremental changes in Interested in maintaining
response to environmental pressures the status quo
Q: What type of manager is your manger?

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This and next slide – In groups of 3 or 4. Discuss where your manager and organisation are. Will show where potential barriers to your innovation could be.
Your type of manager – will influence how easily you can implement an innovation.
They could be a champion or a barrier.
(Q – what is an intrapraneur? Internal entrepreneur – think difficulty of this. Can you think of people in your organisation? – My example ‘Vivek’ – brought in to foster innovation. Continual battling against the tide – “overoptimism/overselling” required to get people to buy into new ideas)

Which Types is G-tec here of Organisation (Burns and Stalker, 1961)
‘mechanistic reproducer’ ‘organic innovator’

Routines and competencies similar to existing organisations
Copied routines
Decisions base on ‘rational’ and ‘scientific’ principles
Formal planning and budgeting
Risk averse resource maximisers
Structured heirarchy

Competencies and routines significantly different to others
Decisions based on cognitive biases and heuristics
Incremental change to direction and resource allocation expected.
New resource combinations
Overconfidence and optimism
Resource leveragers; use rather than own
Flat organisation structure
Where does your organisation sit on this continuum?

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At Organisational level = Corporate Entrepreneurship.
Rational /scientific principles – assumes can analyse the environment fully and make strategic decisions based on this. Classic annual strategic review/budgeting process w little in between.
Planning – still needed in the innovative organisation, but may not be as formal as the mechanistic reproducer. “Formal planning is often the enemy of organisational adaption to innovation opportunities” (Stevenson & Gumpert, 1985)
Q = why would this be so?
Incremental strategy – assumes you can’t know all environmental impacts and hence maintain acute awareness of environment and flexibility to change as needed.
New resource combinations – eg: Direct line insurance (?); First direct;
Q: If you look at these why do you think small organisations have a tendancy to be more entrepreneurial than large organisations? (NOTE: resource constraints tend to be the main reason small organisations manage differently. They don’t have the resources so have to be imaginative and network to get resources & pursue opportunities.)
Q: Think public sector – what are the particular issues for the public sector? Get people’s responses (Beaurocratic; formal planning; risk-averse: NOTE – risks perceived as big eg: education, health)
Where your organisation sits on this continuum – will influence how easily you can implement an innovation.
It could support or be a barrier in particular areas.

Summary
Defined innovation & considered types of innovation
Considered the importance of innovation for different groups
Assessed entrepreneurship from different perspectives.
Started to consider entrepreneurial management…………more Saturday 10th September

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Lesson Plans/ Process

Date Content Manual ref Assignment link
Wed 5th Sept Intro to innovation Unit 1 Introduction
Assignment brief
Importance of innovation.
Entrepreneurship and intro to entrepreneurial management. Unit 2, 3;
Understand assignment
Defining innovation, entrepreneurship, entrepreneurial management & importance of innovation.
Sat 8th Sept Context for innovation including management orientation
Innovation process .
Ideas generation
Units 4, 5 . Part unit 6 Critically analyse & evaluate behaviour that supports innovation in your organisation.
Starting ideas generation for your specific innovation.

Barriers to innovation.
Assignment Q&A Unit 6 Identify barriers to innovation in your organisation & how to overcome them

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7.42pm
Setup of sessions. How relates to manual and assignment.
Run through.

NB: done so that can start doing your assignment as we go through the sessions.

Module Teaching Objectives

To introduce students to the concept of innovation

To explain why it is important for all types of firm or organisation and country economies

To learn how to innovate and the role of ‘entrepreneurial management’ in this context

BS2402 Innovation & Entrepreneurship

Today’s Agenda
am
9.00 Mktg feedback form
9.10 Recap
9.30 Assignment detail
10.00 Context – external
10.20 BREAK
10.30 Context – internal
Management style & orientation
12.40 LUNCH
pm
13.40 Innovation Process
13.55 Ideas Generation
15.00 BREAK
15.10 Remainder of Innovation Process
15.40/16.00 Assignment Q&A
16.00/16.30 END
(mini breaks as required)

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Take chocolates and grapes + a big bottle of water (take cups from staff room)
4

What is the difference
between invention & innovation?

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5

INNOVATION: A Definition (E. Roberts)
Successful Exploitation and Implementation
INNOVATION
Good Idea
Invention
=
Innovation as Source of Competitive Advantage for Economic Renewal
+

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What is the difference between creativity & innovation
Innovation as a process with many different inputs to achieve an innovative output

(Joseph Shumpeter, 1934)

Five Categories of Innovation
‘Totally new or significantly improved good’ – Product Innovation (DVD, Walkman, iPod, PC, car)
2. ‘New method of production’ – New Process (Synthetic Insulin; float glass; iPod; Zara http://www.msnbc.msn.com/id/5457434/site/newsweek/
3. ‘Opening New Market’ – Applying a product or process to a new application (Plastic Jug Kettle; Sushi bars; Benihana)
4. New source/ supply of raw materials (Synthetic Slate, Silicone)
5. New form of organisation (Direct Line, Amazon)

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Schumpeter – will see alot in your manual – talks of five main categories that cross-over with the types looked at. They are distinct ways that innovation causes change in the market.
Walkman – “platform innovation’ Tidd & Beasant p28 portable music – foundation that deploys minidisk / cd/ mp3

Entrepreneurship
How did we define it?

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Mindset – willingness to take opportunities
Risk-taking : Different attitude to risk-taking: Heuristics (trial and error) with fast feedback loop rather than highly planned.
Tolerance of failure as a source of learning.
Process – with Innovation as an outcome. Ie: ‘creating something new’.
8

A Useful Definition of Entrepreneurship
‘entrepreneurship is the manifest ability and willingness of individuals, on their own, in teams, within and outside existing organisations, to perceive and create new economic opportunities (new products, new production methods, new organisational schemes and new product market combinations) and to introduce their ideas in the market, in the face of uncertainty and other obstacles, by making decisions on location, form and the use of resources and institutions’
(Wennekers and Thurik, 1999):

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Qn: How did we define entrepreneurship?
Key points:
WILLINGNESS – ie: mindset
NEW (economic or value creation) opportunities. ie:innovation
Ability to cope with UNCERTAINTY – ie: handling and managing risk.
Decisions on resources

Entrepreneurship (according to Wilson, 2005):
Is a process of social change
In which particular individuals (entrepreneurs) undertake specific projects
Which lead to new or transformed firms and markets
With innovation as an outcome

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10
Another useful definition .
Draws out:
PROCESS
INNOVATION as outcome. – ie: entrepreneurship is all about the process of innovating.

11
Fitting the entrepreneurial management process onto innovation using Robert’s innovation model
Successful Exploitation and Implementation
INNOVATION
Good Idea
Invention
=
+
INPUTS
Group member
Knowledge, skills, effort
Entrepreneurial/ Innovation Management Process
OUTPUTS
adding or creating value
11

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A pattern of management behaviour that produces innovation (individual, group or firm level)
Perceives and Identifies innovative opportunities
Takes ‘Risk’ in pursuing this opportunity (link to self-confidence)
Finds and Gathers scarce resources into appropriate combinations to produce an organisation to deliver that innovation(s)
Continually ‘reaches’ for the necessary resources to solve problems and foster firm growth (Baumol)
Entrepreneurial Management
Decision-making based on bias and heuristics; networking; opportunism

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GOT TO HERE – NOW CHECK VERSUS MANUAL – BEST POINTS FOR SLIDES
Ie: recognises innovative opportunities and encourages pursuit of these. (Acutely tuned to spotting opportunities)
RISK: Not bigger risks , just a different approach to risk. Some say ‘overoptimistic’ (Cooper et al, 1988, p3.17), – perhaps it is a lower fear of failure – or just an unwillingness to let that stop you (what is the risk of not taking the opportunity?) . Others link it to the decision-making process
Appropriate combinations of resources – it is this dynamic resource building concept of changing patterns and combinations of resources to create something unique that makes entrepreneurial management exp different from traditional management.
Q? what do we mean by resources? – people, finance, ‘stuff’.
Q: Heuristics = process of discovering & learning by doing/trial and error

13
Recognise opportunity
Find Resources
Develop Venture by picking and deploying resources
Create Value
Entrepreneurial
Goals and Innovation Context
Strategic Vision and direction
Learning
CG Adapted Innovation and E’ship Management Model: Bessant and Tidd 2nd Ed 2011

BS2402 Innovation & Entrepreneurship
Round edges = aspects affecting entrepreneurial management capability. Through centre = innovation management process.
Key outcome of management approach is that you can define a process and approach that you can understand, practice and make happen. So develop your organisation’s ability to act entrepreneurially, and innovate successfully.
Here = suggests it is a process for one idea. In your assignments final task = take one idea through this process. How can you make it happen?
BUT: For your organisation (= rest of assignment) you need to be able to do this many, many times, at once and learning for each one.
Your assignment asks you to consider both the one individual example (your idea) and the overall organisation ability to foster & support successful innovation.
Recognising opportunities : need to have ways to identify changes that give rise to opportunities and encourage ideas to be shared and built upon.
Finding Resources:
Assess benefits versus risks & costs. How do you balance these in order to decide which ideas to pursue?
Need to build the Case: Often Business Plans required to access resources. How do ideas fit with organisation’s strategy?
Resources won’t all come at once – may a little released for a concept assessment; a little released for a pilot etc….. Until proven.
Develop Venture:
This is turning the idea into reality. Project Managing the process – with all the risk management and controls that that involves. How do you do this safely? Here pilots or prototypes are often used.
Create Value:
Even once new product is launched or process implemented you might not be getting value from it. How do you ensure you capture that value? E.g. The management ‘team meeting’ idea that was launched internally then not followed through to gain the value. Esp true of internal process changes. Need scale-up and persistence to make new habits stick. OR In pharma, new product needs to be protected with patents, else it would get copied before the research investment has been recovered.
Also – here reflect to learn what worked , and didn’t, so can improve future capabilities at managing innovation.

A pattern of management behaviour that produces innovation (individual, group or firm level)
Perceives and Identifies innovative opportunities
Takes ‘Risk’ in pursuing this opportunity
Finds and Gathers scarce resources into appropriate combinations to produce an organisation to deliver that innovation(s)
Continually ‘reaches’ for the necessary resources to solve problems and foster firm growth (Baumol)
Management approach to Entrepreneurship
Decision-making based on bias and heuristics; networking; opportunism

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Ie: recognises innovative opportunities and encourages pursuit of these. (Acutely tuned to spotting opportunities)
RISK: Not bigger risks , just a different approach to risk. Some say ‘overoptimistic’ (Cooper et al, 1988, p3.17), – perhaps it is a lower fear of failure – or just an unwillingness to let that stop you (what is the risk of not taking the opportunity?) . Others link it to the decision-making process
Appropriate combinations of resources – it is this dynamic resource building concept of changing patterns and combinations of resources to create something unique that makes entrepreneurial management exp different from traditional management.

Q: Heuristics = process of discovering & learning by doing/trial and error

Entrepreneurial Management
(manual, unit 4 p 28)
Entrepreneurial management is becoming a way of distinguishing a dynamic innovation capability, where the organisation’s routines and processes are finely honed to achieve responsiveness (Teece et al , 1997).

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Assignment talks of Entrepreneurial Management Orientation = which is effectively this.
15

Entrepreneurial Management Style which on in G-TEC (after Stevenson & Gumpert , 1989)
‘PROMOTOR’ ‘TRUSTEE’
‘Entrepreneurial’ ‘Administrative’
Proactive Disinclined to change
Tolerant of uncertainty and ambiguity Guards resources
Able to make incremental changes in Interested in maintaining
response to environmental pressures the status quo
Q: What type of manager is your manger?

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NB: This is a continuum!!
Your type of manager? – will influence how easily you can implement an innovation.
They could be a champion or a barrier.
(Q – what is an intrapraneur? Internal entrepreneur – think difficulty of this. Can you think of people in your organisation? – My example ‘Vivek’ – brought in to foster innovation. Continual battling against the tide – “overoptimism/overselling” required to get people to buy into new ideas)
CHECK: All can place their manager somewhere along this continuum.

Types of Organisation (Burns and Stalker, 1961)
‘mechanistic reproducer’ ‘organic innovator’
Routines and competencies similar to existing organisations
Copied routines
Decisions base on ‘rational’ and ‘scientific’ principles
Formal planning and budgeting
Risk averse resource maximisers
Structured heirarchy
Competencies and routines significantly different to others
Decisions based on cognitive biases and heuristics
Incremental change to direction and resource allocation expected.
New resource combinations
Overconfidence and optimism
Resource leveragers; use rather than own
Flat organisation structure
Where does your organisation sit on this continuum?

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At Organisational level = Corporate Entrepreneurship.
Rational /scientific principles – assumes can analyse the environment fully and make strategic decisions based on this. Classic annual strategic review/budgeting process w little in between.
Planning – still needed in the innovative organisation, but may not be as formal as the mechanistic reproducer. “Formal planning is often the enemy of organisational adaption to innovation opportunities” (Stevenson & Gumpert, 1985)
Q = why would this be so?
Incremental strategy – assumes you can’t know all environmental impacts and hence maintain acute awareness of environment and flexibility to change as needed.
New resource combinations – eg: Direct line insurance (?); First direct;
Q: If you look at these why do you think small organisations have a tendancy to be more entrepreneurial than large organisations? (NOTE: resource constraints tend to be the main reason small organisations manage differently. They don’t have the resources so have to be imaginative and network to get resources & pursue opportunities.)
Q: Think public sector – what are the particular issues for the public sector? Get people’s responses (Beaurocratic; formal planning; risk-averse: NOTE – risks perceived as big eg: education, health)
Where your organisation sits on this continuum – will influence how easily you can implement an innovation.
It could support or be a barrier in particular areas.

Assignment Brief Detail

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Assignment Brief Recap
Word limit 3,000 words

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Assignment – section 1
Critically analyse and evaluate the management / employee behaviour and its ability to support and foster and achieve innovation within the organisation (entrepreneurial management orientation) in which you work.

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21
It is more academic than last year
Could argue it’s broader in its scope than customer service – need to read – Tidd & beasant
&

Key elements of section 1
Critically analyse & evaluate
Current innovation levels & management style
Organisation culture
Organisation structure
Team working
Human capital
Knowledge management

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This is too certain judgement call / sensitive

Marking Criteria – 30%
Demonstrate knowledge of the many factors that influence the ability of an organisation to produce innovation outcomes
Analysis must include entrepreneurial management orientation i.e. management style likely to facilitate innovation
Demonstration of an ability to apply these factors to your organisation, through analysis & evaluation of these factors that may encourage / discourage entrepreneurial management orientation & innovation within their work organisation & critically assess them

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Management/employee behaviour influencing innovation in your organisation
Factor (Assignment) Factor (Manual &Tidd)
Current innovation levels Your critical reflection
Management style Leadership, vision (& promotor vs trustee, strategic management)
Organisation Culture
Involvement in innovation, creative climate, external/customer focus, communication, rewards
Structure Appropriate structure (& mechanistic bureaucracy vs organic innovator)
Team working
Effective Team working
Human Capital Key individuals, recruitment, training & development
Knowledge management Learning organisation

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Critical reflection – judgement call – need to be able to explain clearly & precisely before pen is put to paper – know where you’re going early –
We’re learning strategy as administrator
Promotor –trustee (in manual 3.18 ) scale entrep – admin manager
24

Assignment – 40%
Identify the critical factors within the organisation/area which prevent better innovation supportive management (entrepreneurial management orientation) and innovation outcomes
Provide suggestions on how to overcome these barriers, based on evidence of appropriate reading in entrepreneurship & innovation management literatures, clearly indicating the level of difficulty likely to be encountered in accomplishing them

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Barriers
Have to get creative – plan to overcome lot of the ideas come from the situational analysis in section1

Assignment – 40% contd.
Then identify a specific potential innovation you would like to carry out within the organisation/area & identify specific changes in working practice that would help the implementation of the innovation with reference to the overall analysis

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Remaining 30 %
Overall depth & breadth of research & background reading – 20%
Clarity of presentation & report writing style, Harvard Business referencing

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Oppurtunity to pick up narks

Context for Innovation
Factors Affecting Innovation

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Context for Innovation – External Factors
External factors
Sector
Size
National systems of innovation
Lifecycle

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THINK ABOUT YOUR ORGANISATION –
Sector – SHARE p4.4
eg: Big,mature,capital intensive industries like Oil & Gas – R&D driven; process improvements.
Contrast with restuarants – where scope for all manor of customer-focussed innovations – service; (product= taste/quality); environment; whole experience; convenience.
FAT DUCK – anyone eaten there?? Heston Blumenthal – Product innovation combining new ideas & ingredients – Crab icecream; using smells and sounds to both change & enhance the experience.
Q: IT? – types of innovation – product, process, technology -driven.
Q: Public sector? – types? – service/process;
Q: Your sector?
TECHNOLOGICAL TRAJECTORIES – share p4.5. Country-specific.
Q: where is your organisation?
Q: public sector? 6th – “Gov’t policy driven”. Get group to complete??
Implications = path dependency (nb: can change, but radical/major disruptive)
Example: typewriter – QWERTY. Difficult to change even if better ways.
2. Size – how do you think size impacts innovation?

Oil and Gas companies
Generally large scale
R&D labs
Process innovation

BS2402 Innovation & Entrepreneurship

Haulage
Some small businesses
Customers as source
Process / service innovation

BS2402 Innovation & Entrepreneurship

IT hardware & software
Specialist or niche vs. large scale
Technology driven
Product and process innovation

BS2402 Innovation & Entrepreneurship

Large Firms
Considerable Resources – £ + people
Large R & D. Budgets / Capital
Economies of Scale
Dominant in innovation in mature industries
Market Power / Mass markets
Balance Risk from innovative projects with ‘cash cows’

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Small Firms:
Behavioural Advantage in flexibility and adaptability in early stages of market and industry development
Early stages of market development before standardisation – dominant design
Experimentation role
Less bureaucracy and inertia preventing change

BS2402 Innovation & Entrepreneurship

Context for Innovation – National systems

Natural resources (or lack of)
Market Pressures
Local demands
Competition
Clusters – eg: related and supporting organisations
Skilled labour/ competencies
eg: in production and research
Management style & corporate governance
Government policies & activities ?
Adapted from Porter: the competitive advantage of nations, 1990

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Resources – Japan & energy
P: 4.16 table. (Tidd, Bessant and Pavitt, 1997)
Management style:
Anglo-saxon vs Nippon-Rhineland.
Responsive , but short- termist vs long-term R&D, but slower exploitation or back-out
Q:What impact do you think Government policies have?
Private? Public?
– Will look at more, Tuesday.

Product innovation
Process innovation
Rate of Major Innovation
Fluid phase Transitional phase Specific phase
The Dynamics of Innovation (with Lifecycle)
(Abernathy-Utterback model in Utterback (1994) p.xvii

BS2402 Innovation & Entrepreneurship
Early participants in new industries experiment freely with new forms and materials
There is a sense of pioneering
This ‘flurry’ of radical product innovation eventually ends with the emergence of a dominant design
The marketplace forms expectations for a product in terms of features, form and capabilities
In the early days of a new product technology, processes used to produce the good are usually crude, inefficient etc.
But product and process innovation are interdependent…as the rate of product innovation decreases, it is common to observe a growing rate of process innovation (Utterback, p.83)
RADICAL DISRUPTION – > NEW PRODUCT TECNOLOGY/NEW TECHNOLOGY:
Video – DVD (minidisc etc..)
Walkman – iPod
Q: Relevance to service industries/public sector? THINK NEW TECHNOLOGY/LOW TECH.
(not sure) – leave them to think about.
Q: where is your organisation industry/sector in lifecycle? (Any radical disruptions?)
36

BREAK

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Do assignment brief here.
37

Context for Innovation
Internal Factors Affecting Innovation

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Class discussion re.Tidd & Beasant self assessment
How well do we manage innovation?
Leadership style – where on promotor to trustee scale?
Culture – ‘the way we do things around here?’
Cross functional activity
Key Personnel
Team work

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Refer to NESTA P4 LEADERSHIP MODELLING BEHAVIOURS & HOW NESTA CAN HELP WITH ASSIGNMENT
BESPOKE OR ONE SIZE FITS ALL?

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Innovative organisation ‘implies more’ than a structure – it is an integrated set of components that work together to create & reinforce an environment where innovation can flourish
Appropriate structure – not always loose / level of mechanistic an advantage
Shared

Shared Vision, leadership & will to innovate
Innovation about learning, change often risky & disruptive
Often organisations & individuals develop ways to maintain the status quo
Entrepreneurs challenge the accepted rules of the game
Core competencies v core rigidities
One of concerns in innovative organisations is finding ways to ensure individuals with good ideas can progress them – ‘intrareneurship’

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Mindset good at one thing – block another
I SOLVED A LOT OF ISSUES THROUGH MECHANISTIC PROCESS – INFRA STRUCTURE ALLOES FOR INCREMNTAL CHANGE

Role of ‘Top’ Management
Changing mindset & refocusing organisational energies requires articulation of a new vision
Need to demonstrate long term commitment & involvement
Need to prepared to take risk & utilise lessons from failiure
Leaders with focus who enable their people to focus

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‘Bottom up’ innovation
IBM turnaround partly due to bottom up team initiative – entry into e-business
Tidd & Beasant – outline development of the idea of the execution of leadership vision by management drones to argue that they may be ‘two constructs on a continuum, rather than two opposing characteristics’

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MIX OF TOP DOWN / BOTTOM UP

Appropriate organisation structure
“Organisations – rigid hierarchies top down, one way communication – unlikely to be supportive of smooth info flows & cross functional cooperation
Burns & Stalker – outlined characteristics of ‘organic’ & ‘mechanistic’ organisations
Innovation not confined to R & D depts. Innovation becoming corporate wide – cross functional

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PHOTOPCOPY P 108-9
smooth info flows & cross functional cooperation – recognised as important success factors in Innovation

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45
Very Useful folis – look at your own organisation for the assignment – shades of grey – but look characteristics – try to build up a picture so that you can describe this as succintly

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Discuss – decentralised forums

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Activity
How does organisational structure impact on innovation levels in your organisation?
In Groups of 3 (5mins – then share back & exchange ideas)

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Key Individuals
Champions – help overcome complexity & uncertainty involved in innovation
Roles:
Sources of critical technical knowledge -often inventor / team leader
Organisational sponsor / project team leader
Business innovator
Technological gatekeeper

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High involvement in innovation
Quality Miracle – Japanese ‘continuous improvement’ Involvement of a wide range of- personnel providing limited, incremetal innovations (kaizens)
XYZ systems – rewards
Needs organisational culture to support & encourage over the long term. Now recognised as a major source of competitive advantage (P117 Tidd & Beasant)
Secondary effect – more people involved in change the more receptive they become to it

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Photocopy p115-116

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Plot your org / dept / area on here – useful tool
Next slide – there’s a progression – can give you some strategic direction / help with objectives

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Effective Team Working
Research on high performing teams
Selection & investment in team building
Clearly defined tasks & objectives
Good balance of team roles & match to individual behavioural style
Team working critical determinant to success – can bridge boundaries, cross functional teams bring together different knowledge.
Provide a decentralised & agile operating structure

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High performing teams – not an accident
Myers Briggs
P124 vancom zuid limburg

Effective Team Working –Tidd & Beasant
A clear, common & elevating goal
Results-driven structure
Competent team members
Unified commitment
Colloborative climate
Standards of excellence
Principled leadership
Appropriate use of the team
Participation in decision making
Team spirit
Embracing appropriate change

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Creative Climate
Reward systems – innovative organisations look to reward creative behaviour & to encourage its emergence. Linked to the idea of intrapreneurship – internal entrepreneurship. Concept of rewarding failiure, people learn from their mistakes and will get it right – look at Dyson philosophy
www.whatifinnovation.com
Matt Kingdon – 3 elements of Innovation energy: attitude, behaviours & structures

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On interview – emotion

In Groups (5min discussion; 3min share back)
What policies are in place in your organisation to:
Encourage the identification of innovative opportunities?
Reward the successful implementation of innovative suggestions?
What sort of rewards, tangible and intangible, might change your behaviour?
( think individuals and teams)
Alternative – if time, but possibly need to allocate different aspects to each group

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58
GROUPS – 5mins and present back 3min each.
NB: Some tangible rewards to protect innovation – copywrite, patents, trade-marks. (see p4.24 )
eg: if manager accepts and encourages new ideas then people will bring new ideas [perhaps devotes 15mins at end of a meeting to considering new ideas, AND makes sure they are received positively.

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Climate – ‘recurring patterns of behaviour, attitudes & feelings that characterise life in the organisation

Trust & openness: emotional safety in relationships – people share common values & trust
Challenge & involvement – degree to which people are involved in daily operations, long term goals & visions
Support & space for ideas – high idea-time situation where there are possibilities to discuss & test unplanned impulses & fresh suggestions. Low idea time – research confirms individuals are less creative.

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Mechanisms Stimulating Innovation at 3M

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Q: YOUR ORGANISATION – Allowing space for new ideas?
61

Risk Taking – high risk taking: bold new initiatives can be taken even when the outcomes are known. People feel ‘they can take a gamble’. Risk avoiding climate – cautious, safe, decide to ‘sleep on the matter’ It’s about balance between risk & stability
Freedom – ‘the independence in behaviour exerted by people in the organisation’

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KEEP STRESSING ITS ALL ABOUT CALIBRATING CORRECT BALANCE FOR PEOPLE / CULTURE

Boundary Spanning
The extent to which innovation has become an open process involving richer networks across & between organisations
Successful innovating organisations – an orientation which is essentially open to new stimuli

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Matt Kingdon Interview
Please can you pull out key points re the internal context for discussion

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Management/employee behaviour influencing innovation in your organisation
Factor (Manual)
Factor (Assignment)
Visionary Leadership Management style, culture
Organisational structure Structure
Key Individuals Human capital,
Effective Teamworking Teamworking
Training and skill development Human Capital
Communication Organisation Culture
Customer Orientation Organisation Culture
Innovative Climate Organisation Culture
Processes to institutionalise knowledge management Knowedge Management

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65

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Mechanisms Stimulating Innovation at 3M

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Q: YOUR ORGANISATION – Allowing space for new ideas?
67

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Assignment talks of Entrepreneurial Management Orientation = which is effectively this.
68

Corporate Entrepreneurship and Innovation Management

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Difference between entrepreneurial management and innovation management.
69

Dynamic Capabilities – emphasises two aspects
The shifting character of the environment
The key role of strategic management in adapting, integrating and re-configuring internal and external organisational skills, resources and competencies towards a changing environment.
Tidd (2009) p 174

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Barriers to Innovation

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Barriers to Innovation
Reluctance to close down failing programmes or organisations
No innovation
Poor skills in active risk or change management
No rewards or incentives to innovate or adopt innovations
Short-term budgets and planning horizons
Technologies available but constraining cultural or organisational arrangements
Delivery pressures and administrative burdens
Over-reliance on high performers as sources of innovation
Culture of risk aversion

Figure 6:1: Barriers to Innovation in the Public Sector Source: Cabinet Office (2003) p.31

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Barriers to Innovation
Path Dependence
Convergence of reward and incentive schemes with innovation reasoning
Access to sufficient capital to fund long term innovation
Organisational inability to tolerate uncertainty innovation requires chaos

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The Innovation Process

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Do we have a clear innovation strategy?
Simple Model of the Innovation Process (Tidd & Bessant, 2009)

Select – what are we going to do – and why?

Implement – how are we going to make it happen?
Capture – how are we going to get the benefits from it?
Search – how can we find opportunities for innovation?
Do we have an innovative organisation?

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This version from Tidd shows a simple process within the context of the innovative organistion.
Search for ideas -> select the best ideas to progress -> implement them -> capture benefits/value.

In manual there are two other processes shown:
75

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This – like New product development process (know from marketing 1?)
It is easier to see this process in big business (eg: Unilever and Lilly) because it is more structured this way, but even in small organisations the innovation process will go through these steps, even if instinctively.
(EXAMPLE: at extreme, development of a new pharma product – like a funnel)
Won’t focus on this.

The Innovation Process: Conceptual Model
Analysing
and learning
Generating
possibilities
Incubating and
prototyping
Replication
and scaling up

Source: Government Strategy Unit (2003) p.12

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From Unit in manual: I Like this coz shows the iterative nature & touches on the trial and error in the incubation step with fast learning feedback.
What aiming to create dynamic capability to support.
Innovation process – but encouraging more than just each – lots, concurrently occuring.
Key – is idea of iterations – (which this example shows in terms of piloting) – because innovation is (coz new) not predictable, so need systems in place to learn and feedback to improve.
Now will think about each step. As go through, reflect on how the management and employee behaviours can support or hinder the steps.
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Seven ‘sources’ of innovation (areas to exploit)
The unexpected
The incongruous
Process need
Industry and market structure
Demographics
Changes in perception
New knowledge
(Source: Drucker)

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More clearly – these are potential areas to exploit through innovation. Is your organisation in a position to perceive opportunities from these?
Remember – technological trajectories – where are ideas likely to come from for your organisation?
Ask for examples.
Unexpected – Viagra (developed as a heart treatment – noticed ED function).
Incongruous – steel market – gave rise to minimills
Process need – synthetic insulin (not possible to get enough animal insulin);
Industry and market structure – banking – first direct.
Demographics – aging population; immigration; global mobility; dispersal of families – all given rise to possible opportunities and new needs.
Changes in perception – rise of concern for environment/global warming; organic food; farmers market (eg: Hampton)
New Knowledge – much high tech; iPod etc..
Q Can you think of examples either in your own organisation or have come across of any of these?
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an urgent or nagging business imperative
different perspectives on this imperative
an environment conducive to reflection

(“successful innovation” Michael Syrett and Jean Lammiman, 2002)
Inspiration for new ideas mostly stems from the presence of, and interplay between….

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IMPERATIVE = NEED
Q: Can you think of any nagging business needs in your organisation?
Q: What was the nagging need for Dyson? (other example?) Jaipur foot?
(adversity is the mother of invention – certainly heightens the need for ideas)
Q What differences public/private? Large/small firms?
Eg:
Unilever – competition always fierce. If don’t innovate then will lose market share…..
Small companies- survivial
Public sector – cuts in funding – think mission/customer service/ value for money. Huge urgency to find more cost effective ways of meeting needs.
Q: Do you think needs always exist?
I would say yes “even if people haven’t recognised it yet”.
Perspectives – we’ll look at this next
Conducive – space to reflect

Organisation
>50%

Customers/
Users
30%
Suppliers/
Distributors/
Partners
Competitors
30%
Sources of Ideas
Environmental scanning

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More than half of ideas come from within the organisation – particularly front-line staff. (This is why the numbers don’t add up to 100% coz some of the internal ideas will have originated from customers and other external sources)
So it is critical to encourage these ideas to come forward.
It is also a reason to build diversity within the organisation. Inc – bringing in fresh thinking from outside the organisation who might look at things differently.
Q: Do you have any examples of where, say, someone new into the organisation has had ideas to improve things? (how were the ideas received?)

Many come from customers… So we’ll look at this a bit more.
80

Customers or
interest group
SEEN BUT CAN’T
FIND IT?
OUT OF DATE
OR STYLE?
NOT EASY TO USE?
QUALITY…NOT
GOOD ENOUGH?
WANT BUT
DOESN’T EXIST?
IT’S TOO
EXPENSIVE?
PEOPLE WANT THINGS

Adapted from Scottish Enterprise Foundation (U. Stirling) 1990

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So lets look at customers:
Q: Can you think of examples? Ask going round the circle:
Want but doesn’t exist. (eg: Anita Roddick – Bodyshop wanted to buy toiletries like she bought fruit & veg, in difft amounts)
seen but can’t find. (poss seen in another country. Eg: food found in Poland/other countries)
Not easy to use. (broadband growth to make internet use easier; Sharon’s cavity wall wire threading tool)
It’s too expensive (many new industries; + why so much innovation/change being pushed on the NHS currently? ; cheap copies; minaturisation (Sony) covered price and use)
Quality… Not good enough (eg: banking service; Sharon and cavity wall tool)
Out of date/style (fashion)
I would add at top aka Steve Jobs “A lot of times people don’t know what they want until you show it to them”.
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c
Generating Innovation Possibilities through crossing boundaries
Boundary spanning activities
External
Internal
Govt regulation & support
Inspection & audit
University research; science & tecnhology parks
Other public services & countries
Supportive culture – eg. cross disciplinary working
Organisational heterogeneity/ diversity
Users, front-line staff, middle mgrs

Networking
Scanning of environment
Benchmarking
R&D

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When you look for opportunities for innovation in your organisation you can try looking at these areas.
Q: Examples of innovation, or changes made, picked up these in your organisation/generally?
Internal – covered this am.
Networking – e.g.between departments; conferences – e.g. Universities Russell group; doctors/consultants specialities often have international conferences in specialism.
Scanning env – customer trends; new technology? (e.g. Key-hole surgery; texting pts)
Benchmarking – e.g. Comparing Police forces, or a Police force might look at how customs complete their work. OR Swedish schools – results & approach.
Internal = much as for private sector and as have considered this am. Key diversity in recruitment and encouraging constructive conflict. (unit 5 manual)
, sch
Govt regulation & support: “ Breaking the Rules”: “there is a need to develop a dissident culture in which organisational rule-breaking is encourgaed and managed”. BUT: impact of this in public sector??? examples – encouraging Beacon schools – trying new ideas; protecting considered experimentation
+ Creating competition (e.g. Hospitals , schools – to incentivise new ideas for improvement)
Inspection and audit. Eg: Internal auditing such as within FE; Ofsted – inspecting Schools (whether agree – aim = to spot good practice and spread ideas); Six sigma – & other structured approach to auditing processes using problem solving techniques with aim to create improved/better value solutions.
Research: e.g. Toiletries – anti-aging research from Universities.
Other sectors: Airport passenger movement – patient movement in hospitals (but now poss need the other way)
Other Countries: Gov’t initiatives. Current banking – Govts all looking to other countries for ideas. Eg: Policing – zero tolerance (New York); Education – Scandinavia – Swedish ‘Open Schools’ being piloted here.
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Environmental scanning…

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When you look for opportunities for innovation in your organisation you can try looking at these areas.
Q: Examples of innovation, or changes made, picked up these in your organisation/generally?
Inspection and audit. Eg: six sigma = structured approach to auditing processes using problem solving techniques with aim to create improved/better value solutions.
Research: Gov’t think tanks?; Toiletries – anti-aging research from Universities.
New Technologies: minaturisation; gene technology; mobile technologies.
Other sectors: Airport passenger movement – patient movement in hospitals (but now poss need the other way)
Other Countries: Gov’t initiatives. Current banking – Govts all looking to other countries for ideas. Eg: Policing – zero tolerance (New York); Education – Scandinavia – Swedish ‘Open Schools’ being piloted here.
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Changing your perspective
Look around you:

Now look around again – focusing on any objects that match your chosen colour
Now choose a colour…
Does the scene look the same? Try with a different colour…
Source: www.spaceforideas.uk.com (Professor Wiseman)

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How could the Foundation Degree be improved?
Source: University of Teeside
Innovation on your doorstep – A TASK

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Brainstorming…
Generate as many ideas as possible – the more the better
Improve and build on each others’ ideas: as well as suggesting new ideas, try and develop someone else’s ideas by proposing improvements or ways of combining ideas
encourage long shots: crazy-sounding ideas can often spark off original and practical thoughts
encourage rather than criticize others: praise other group members’ ideas to encourage them to come up with more rather than turning off their creative tap by adverse comments
always record all ideas on a sheet of paper or a flip chart

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86
5mins.
AT LEAST 20 ideas – but don’t stop at 20.
Mid way through – add in:
Group 1) ‘take something away’ – ie: degree has no teachers – more ideas?
Group 2) ‘provocation’ – ie: the degree makes you less employable – what is good about this.
Share back in overview – 3min each group.

Changing perspective .…
Take Something Away
The foundation degree has no lecturers
Provocation
The foundation degree makes you less employable
Analogy
The foundation degree is like a car servicing garage (window/ rugby game etc..) because……
Blank Sheet – back to original purpose
Providing access to higher education to wider group

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Changing perspective is about forcing yourself to break away from how things are done now.
There are also other ideas in your manual in Unit 6.

General Points on Opportunities
Creating Value not lowering cost
Opportunities not the same for everyone
Not every Good Idea is a business opportunity
Look for opportunities in emerging markets rather than established ones: entry barriers
Does not need to be hi tech / high risk innovation: Schumpeterian innovation
Derived from Birley and Muzyka in Mastering Enterprise

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Value = in public sector could be improving outcomes.
e.g: Keyhole surgery.
Congestion charge
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Q: How are your progressing with an Innovation Idea?
In 3s.
Take turns to share your ideas, or your plans to generate innovative ideas. Help each other create a plan. (1min each)
Where will you go to for your innovation ideas?
Who to?/sources? – new employees; customers; suppliers; outside sector? This group?
Techniques useful? – eg: brainstorm with work colleagues?
Where do you have your best ideas?
How will you create space for yourself to reflect?

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IDEAS ALREADY?
Where will you go : think about the areas we’ve looked at – eg: asking customers/users; someone new to the organisation. Can you set up an internal brainstorm? Perhaps creating an innovation culture would be the biggest innovation??
IDEAS TO SHARE WITH OTHERS TUESDAY?
+ think about this process – creating space for ideas.
NB: Like we did with Foundation Degree theme. Can provide a theme for a brainstorming session. Also use for overcoming barriers.
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The Innovation Process: Conceptual Model
Analysing
and learning
Generating
possibilities
Incubating and
prototyping
Replication
and scaling up

Source: Government Strategy Unit (2003) p.12

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Incubating and prototyping
There is at the start of this phase and throughout the issue of allocating resources to support the best ideas going forward.
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Is the innovation likely to succeed?
Is the problem the innovation is designed to address well-formulated?
Have similar innovations been tried elsewhere?
Is there is a clear plan for how the idea can be developed?
Are the potential benefits commensurate with the development costs?
PLUS:
Does the innovation fit with the organisation goals?
Is the organisation capable of coping with it?

Incubation, prototyping & managing risk…
In effect…how do you (safely) turn a good idea into an innovative opportunity?

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Key questions
Critical – allow innovations to flourish, rather than dismissed pre-chance. STRONG HISTORY OF INNOVATION REQ’D/
Product development: concept development, business and market analysis; market research, test marketing. (MARKETING)
Public sector: timescales to plan/mechanisms to foster innovation = harder to grab opportunities.
Barriers and ‘won’t work here’; ‘not how we do things around here’ can start to emerge.
BREAKING THE RULES p5.8 (within rules) “Rule-breaking is encouraged and managed” Govt Strategy Unit paper on innovation.
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Safe Spaces…

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If Innovation is to succeed – need to protect it from day to day. In Co.s often set up a separate project team, or even separate business unit to pursue an innovation. NB: Part of structure/mgt behaviours needed in org’n.
‘Safe spaces’ are areas where fledgling ideas or firms are encouraged.
P 5.11
Examples:
Pilot – widely used (examples from group)
[EXAMPLE: Teleweb – 1st = 3rd party, measure results; 2nd = in house small scale w contract staff. Self allocated as project manager, so outside other distrctions; 3rd = recruit and scale up, results measured all time]
Decision to go ahead rests on outcome of pilot. NB: Appropriate pilot thinking of scale-up. (+ texting example).
NB: Must test, analyse, learn – example of Poll tax.
Pathfinders: Govt & Private. Strategic link to full scale; shortened timescales. Tests practicalities and make modifications. Qn: any of you been involved in a pathfinder project?
Zones: similar to pilot (again public sector mostly).
Incubators: much used for small firms. So such as office space; legal advice; financial advice and opportunities available within a network or area. Support mechanism for the fledgling firm. Kingston University links to Kingston Innovation Centre.
So, for your innovation(s) – how can you create ‘safe space’ to allow them to be tried and tested to give them best chance of success? How does your company support this? Q: How would you measure if your pilot or trial has been successful?
EXAMPLE:
(eg: ring-fencing funds for pilots/innovations- Teleweb example)
Q: WHAT IS YOUR ORGANISATION ATTITUDE TO FAILURE? – examples?

The Innovation Process: Conceptual Model
Analysing
and learning
Generating
possibilities
Incubating and
prototyping
Replication
and scaling up

Source: Government Strategy Unit (2003) p.12

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Q: Main issues regarding replication and scale-up? Flip chart ideas.
(private and public sectors)
V. FOCUSSED SELECTION REQUIRED – TIMELY EVALUATION?
Specific combination of resources/competencies – how created competency? (Esp public sector). Potential barrier.
Costing & resources – this where big commitments needed.
Was the pilot appropriate to all? Barriers/excuses that not relevant to other parts of organisation. Esp true in public sector “not invented here/won’t work here/our situation is different”.
Need proper assessment of pilot and its implications
Manufacturing – manufacturing on bigger scale/sourcing – some processes in development phase may nee redesigning
Replication and scaling up – barriers big in public sector – initiatives in one area working elsewhere in the country. (ownership for an idea; differences in local population – real and perceived). Also rules and norms entrenched. Need appropriate reward/penalty balance.
e.g. Roll out of new way of working. Monitored and included in performance measures. (Lilly CRM)
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Replication and Scaling Up…
In general, Governments have relied on two sets of mechanisms:
law, central direction and administrative command; and
dissemination of evaluations of pilots, case studies and best practice
Both can be appropriate in particular circumstances but both have their weaknesses.
Q: Can you think of some examples of each?

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Easier in private
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The Innovation Process: Conceptual Model
Analysing
and learning
Generating
possibilities
Incubating and
prototyping
Replication
and scaling up

Source: Government Strategy Unit (2003) p.12

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Q: How good is your organisation at analysing success of new initiatives?
What difficulties in evaluating? How might these be overcome?
Links back to Learning Organisation.
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Identify and example of an innovation in your
organisation that you have been involved in.
To what extent were the phases identified and
explicitly or implicitly followed?
Which phase appeared to the most challenging?
Why?

Discussion – Innovation Process

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Summary of the Day
Reviewed Assignment
Considered context for innovation
External and internal factors
Reflected on own organisation internal context – ready for first part of assignment
Barriers to entry
Innovation Process
Put the internal factors affecting innovation into the context of the innovation process.
Started to think creatively about our innovation idea(s) – ready for final section of assignment

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MECHANISM
EFFECT
15% Rule
Employees are allowed to allocate around
15% of their official time to pursue
independent research, irrespective of their
official project. This rule resulted in the
development of many innovative products at
3M
Genesis Grants
Under Genesis grants employees were
provided around $50,000 financial support for
their research for developing prototypes and
conducting market tests. This stimulated
entrepreneurship at 3M
Own Business
Opportunities
3M gave employees the opportunity to run
their projects depending on the sales. This
stimulated internal
entrepreneurship at 3M
Dual Ladder
This approach at 3M enabled technical
employees to move up the career path without
compromising their research / professional
interests
Technical Forums
Technical forums were established to give 3M
employees the opportunity to present their
technical papers and exchange ideas with
others.
New Product Forums
These forums were established to enable all
divisions to discuss new ideas, thus
encouraging the generation of ideas across all
divisions
Source: James, C. Collins, and Jerry I.
Porras Built to
Last (Harper Business, 1997)
MECHANISM
EFFECT

15% Rule
Employees are allowed to allocate around 15% of their official time to pursue independent research, irrespective of their official project. This rule resulted in the development of many innovative products at 3M

Genesis Grants
Under Genesis grants employees were provided around $50,000 financial support for their research for developing prototypes and conducting market tests. This stimulated entrepreneurship at 3M

Own Business Opportunities
3M gave employees the opportunity to run their projects depending on the sales. This stimulated internal entrepreneurship at 3M

Dual Ladder
This approach at 3M enabled technical employees to move up the career path without compromising their research / professional interests

Technical Forums
Technical forums were established to give 3M employees the opportunity to present their technical papers and exchange ideas with others.

New Product Forums
These forums were established to enable all divisions to discuss new ideas, thus encouraging the generation of ideas across all divisions

Source: James, C. Collins, and Jerry I. Porras Built to Last (Harper Business, 1997)

MECHANISM
EFFECT

Own Business Opportunities
3M gave employees the opportunity to run their projects depending on the sales. This stimulated internal entrepreneurship at 3M

Dual Ladder
This approach at 3M enabled technical employees to move up the career path without compromising their research / professional interests

Technical Forums
Technical forums were established to give 3M employees the opportunity to present their technical papers and exchange ideas with others.

New Product Forums
These forums were established to enable all divisions to discuss new ideas, thus encouraging the generation of ideas across all divisions

Source: James, C. Collins, and Jerry I. Porras Built to Last (Harper Business, 1997)

Wilson (04)

New Business within
Firm
Corporate Venturing:
Product / Process
Innovation
management:
Focus on one off
process (i.e. product /
process innovation)
Firm 1 Firm 2
Corporate Renewal:
Organisational
Corporate Leadership:
Transformational
Market / Industry
competition
Entrepreneurial
Management:
Dynamic capability
Product / Process
Innovation

Wilson (04)
Corporate Leadership:
Transformational

Market / Industry

competition

Entrepreneurial Management:
Dynamic capability

Firm 1

Firm 2

Corporate Renewal:
Organisational

New Business within Firm

Corporate Venturing:
Product / Process

Innovation management:
Focus on one off process (i.e. product / process innovation)

Product / Process Innovation

The Innovation Management Process
(Source ABI Assisting Business Competitiveness
CDRom, 2003)
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Stage 6
Idea Generation
Idea Screening
Concept development and testing
Market strategy and business analysis
Product development and testing
Market introduction & life-cycle
management
Customer Integration
The Innovation Management Process

(Source ABI Assisting Business Competitiveness CDRom, 2003)

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Stage 6
Customer Integration

Idea Generation

Idea Screening

Concept development and testing

Market strategy and business analysis

Product development and testing

Market introduction & life-cycle management

Source: Strategy Unit (2003)
p.x
scanning, networking,
benchmarking,
openness to challenge
other organisations
other countries
other sectors
new technologies
research findings
inspection and audit

Source: Strategy Unit (2003) p.x

inspection and audit

other organisations

scanning, networking,
benchmarking,
openness to challenge

other sectors

research findings

new technologies

other countries

Safe Space
Characteristic
Pilot
Provides a local or small-scale test
Pathfinders
Similar to pilot but linked strategically to
subsequent full-scale development
Zones
Testing ground for new ideas within pre-determined
arbitrary boundary
Incubators
Support & resource infrastructure bringing together
various different parties within one ‘safe space’
Safe Space

Characteristic

Pilot
Provides a local or small-scale test
Pathfinders
Similar to pilot but linked strategically to subsequent full-scale development
Zones
Testing ground for new ideas within pre-determined arbitrary boundary
Incubators
Support & resource infrastructure bringing together various different parties within one ‘safe space’

Running Head: INNOVATION & ENTREPRENEURSHIP

1

INNOVATION & ENTREPRENEURSHIP

Innovation & Entrepreneurship: G-TEC

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1 Introduction

Innovative entrepreneurs in the modern global market are shaping societies and markets substantially. Being innovative means that a company can provide technical and organizational improvements that can be successfully sold in the marketplace. Sustainable development in a market system requires sustainable innovation and entrepreneurs who can attain customer satisfaction with superior processes that are successful in the mainstream marketplace.

1.1 Aim of the report

Entrepreneurship and innovation are critical in the contemporary competitive business markets. Both aspects are important for firms that are inherently technology-oriented. Majority of G-Tec’s customers are organizations, governments, security agencies and firms, and individuals. G-Tec is a distributor of CCTV products

1.2 G-Tec Background

G-TEC Distribution Ltd was founded in March 2002 (G-Tec, 2012). G-TEC’s head office is situated in London, UK. G-TEC is a privately owned company. Almost 15 employees are currently working in the Head office. The company is well established and recognized in the United Kingdom Security Industry. The company is a leading distributor of wide range of CCTV products, access controls and security services. With over 10 years of experience and a vast network of strong relationship that have been built with suppliers and installers, G-TEC looks forward for continuous growth in terms of sales, size, coverage and market shares in the UK and Worldwide. That clearly represents the main motive of the company for the customer’s satisfaction. Moreover, the company’s vision is to keep up the excellent after sales services, breaking through innovation in order to keep up with the technology advancements & developments.

Definitions This part in in the papers session please use them because there is some part missing

Entrepreneurship is the process of creating value that effectively connects with the attitude and skills of the entrepreneur with two types of events: Creating and/or seizing business opportunities in the external environment. It is also concerned with the development of identified and evaluated opportunities in terms of associated risks and allocated resources (Nitu & Feder, 2012). It reflects the strategic direction as implemented by an organization in order to achieve superior performance continuously.

Innovation is regarded as the development of novel customer values that have the capacity to meet old market and customer needs, unarticulated needs and new customer and market needs. Typically, this is achieved by the development of more effective and/or different ideas, technologies, services, processes and products that are readily available to existing and emerging markets. As opposed to invention which is concerned with more direct creation of ideas or the method itself, innovation is concerned with the utilization of a better new method or idea. It is refers to doing things differently as opposed to doing the same thing better.

Value creation entails providing services and making products that consumers find consistently useful (O’Malley, 1998). Successful business firms understand the core purpose of any business is the creation of value for customers, investors and employees. The three groups’ interests are inextricably linked. Sustainable value can only be created for if value is created for all the groups.

1.3 Importance of Innovation and Entrepreneurship for G-Tec

This part in in the papers session please use them because there is some part missing

In a constantly changing dynamic external business environment, innovation and entrepreneurial behaviour are holistic and dynamic process. They are vital to organizational sustainability and success and are complementary. Considering the high rate of technological development and advancement and increasingly competitive security surveillance market, innovation and entrepreneurship is critical for the survival and success of G-Tec. This is particularly because competitors are developing cost effective and quality products that are easily accessible to customers.

The initial focus for creating value should be on the customer. However, this cannot be attained unless the suitable employees are selected, trained, developed and rewarded. It cannot be achieved also if the investors do not consistently receive attractive returns. It is hence imperative for G-Tec to ensure it is innovative in the way it recruits its employees. The company also need to be sensitive to the relationship between the management and the employee. Contemporary, the employees

Analysis of Innovation and Entrepreneurship in G-Tec This part in in the papers session please use them because there is some part missing

G-Tec conducts its business in a technologically competitive field. This is because the products distributed by the company highly depend on technology to meet the purpose they are manufactured for.

The management style and organization behaviour at G-Tec significantly impact the development of innovative and entrepreneurial behaviours. The company’s employee pool is significantly small since it only distributes CCTV products. The employees are not fully engaged with regard to running the company, innovations and the supply chain. They only play the role of engaging with customers. The management engages with suppliers and installers of the products. The employees do not enjoy autonomy in making decisions regarding the relationship of the company and the customers.

Factors supporting and hindering entrepreneurship management and innovation in G-Tec This part in the papers session please use them because there is some part missing

The emergence of the internet has significantly supported the company’s entrepreneurship management and innovation. The company has in recent years developed a website with a web portal where customers and suppliers can engage the management on any concerns they have (Cherri, 2009) (Since when is our family quoted?).

The lack of employee engagement and autonomy acts as a stumbling block to the contribution of employees towards innovation. In other organizations, employees are often engaged to come up with innovative ways that will contribute towards the realization of organizational goals. Since employees engage customers with day-to-day business of the company, they possess information that may be vital for the development of innovative ways of conducting business to ensure customer satisfaction.

3. Implementing a potential innovation at G-Tec This part in in the papers session please use them because there is some part missing

In order to ensure the desired customer satisfaction, it is imperative for the company to ensure that employees are fully engaged. This will enable the employees to effectively communicate with customers as they will be in a position to respond to any question asked by the customer as opposed to referring the customer to other offices. The company should develop a communication infrastructure that will enable employees to contact the appropriate departments so that they can timely respond to customer concerns (Herbig, Golden & Dunphy, 1994). (Is this a real reference/quote?) The company should also ensure that employees fully understand all the aspects of the products and services the company provides.

3.1 Entrepreneurial goals and innovation context This part in in the papers session please use them because there is some part missing

The involvement of individual employees in the activities of the company creates a sense of ownership which results to loyalty. Engaged employees are keen to ensure the success of the business. The management should also freely interact with the employees so that the employees feel as part of the company. This will create job satisfaction. This will increase employee confidence which will easily be transferred to customers during their interactions with the employees. Since customers interact with customers on daily basis, they are better placed to identify opportunities through responses they receive from customers. (Doesn’t sound right) The interaction between customers and employees creates a wide network as satisfied customers refer friends and relatives to a company that meets their needs.

3.2 Recognizing the opportunity.

Depending on space and time context, companies can easily identify opportunities in order to generate value (Carree & Thurik, 2005). In the contemporary business arena, it is easier to recognize opportunities given the wide variety of internet information resources. Hyper-connection through employees presents the company with the opportunity to expand its customer base.

3.3 Finding resources This part in in the papers session please use them because there is some part missing

Individuals who allocate resources with the objective of capturing opportunities presented by innovative ideas and methods are critical for the success of any business venture. The resources required for implementing the proposed innovation are human and financial. The employees need to be trained on how to effectively address the concerns of the company even when they do not have an immediate response regarding the customer’s concerns. The employees also require to be informed about the services and products the company offers in the market (Johnson, 2001). The employees should have the full information before the products and services are placed in the market. Customers will feel satisfied when the employees attending them fully comprehend the services or products they sell to the customer.

3.4 Developing the venture This part in in the papers session please use them because there is some part missing

In order to develop the venture into an international player as per the company’s mission and objectives, the new organizational culture need to be entrenched into the mind of the existing managers, employees, customers, suppliers, installers and the investors. The venture will be drive by innovation economies, efficiency and the entrepreneurial framework established during the implementation of the innovation (Porter & Schwab, 2008).

Through embracing less hierarchical management and more open innovation, the company should integrate entrepreneurial behaviors with the existing company capabilities. This will enable the company to be ahead of the many copycats that are likely to emerge once this strategy works in favor of the company (Anthony, 2012).

3.5 Creating value This part in in the papers session please use them because there is some part missing

Through the proposed innovation, the company will create value for customers. CCTV products and service customer place high value on information. By providing information through the employees, the customers will have their problems attended to without having to be referred to other persons within the company. Since the number of staff in the company is limited, knowledgeable employees will facilitate bridging any communication gaps between the customers and the management. Through prompt giving of appropriate information, value will be created for customers.

Conclusion

Innovation through employee involvement on the part of G-Tec is an appropriate way of ensuring creation of value. The company needs to review its current organizational structure and culture. This will involve engaging the employees to promptly respond to customers’ concerns.

Please don’t use cherri web as a reference

References

Anthony, S. D. (2012). The New Corporate Garage. Harvard Business Review. 44-53.

Carree, M. and Thurik, R. (2005). The Impact of Entrepreneurship on Economic Growth, Handbook of Entrepreneurship Research. International Handbook Series on Entrepreneurship, Vol. 1(7), 437-471.

Cherri, W. (2009). CCTV Distributor. Retrieved from http://www.G-Tecsecurity.co.uk/acatalog/aboutus.html

G-Tec, (2012). G-Tec Distribution Ltd. Retrieved from http://www.securityworldhotel.com/int/CompanyInfo.asp?idf=27075

Herbig, P., Golden, E.J. and Dunphy, A. (1994). The Relationship of Structure to Entrepreneurial and Innovative Success. Marketing Intelligence & Planning, Vol. 12(9), 37-48

Johnson, D. (2001). What is Innovation and Entrepreneurship? Lessons for Large Organizations. Industrial and Commercial Training, Vol. 33(4), 135-40.

McDougall, P. and Oviatt, B. (2000). International Entrepreneurship: The Intersection of Two Research Paths. Academy of Management Journal, Vol. 43(5), 902-908.

Nitu, R. D. and Feder, E. (2012). Entrepreneurial Behavior Consequences on Small and Medium-Sized Firms’ Innovation. Theoretical and Applied Economics, Vol. 7(572), 85-96.

O’Malley, P. (1998). Value Creation and Business Success. Retrieved from http://www.pegasuscom.com/levpoints/valuecreate.html

Porter, M. E. and Schwab, K. “The Global Competitiveness Report 2008-2009”, World Economic Forum, 2008.

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Running Head: INNOVATION & ENTREPRENEURSHIP 1

Innovation & Entrepreneurship: G-TEC

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