Additional Information
Book Details
Abstract
Innovation Management and New Product development is an established, text for MBA, MSc and advanced undergraduate courses on innovation management, management of technology, new product development and entrepreneurship. It is also widely used by practitioners of innovation.
Now in its sixth edition, Innovation Management & New Product Development has been fully revised. Its clear and informed coverage of the management processes of new product development, coupled with a practical orientation of taking you through real life challenges and dilemmas, results in a book that brings together the most up-to-date and accessible discussion of the literature in this area, as well as a wealth of examples and illustrations in every chapter.
New to this edition
- Three new chapters on Entrepreneurship and National Systems of Innovation; Business Models; and Adoption and diffusion.
- Thoroughly revised and updated chapters including new coverage of process innovation, user driven innovation, and imitation goods.
- New case studies on Drones, Apple and disposable nappies with sensors as well as updated case studies including 3M, eBay/PayPal and Gore-Tex®
- New 'Innovation In Action' feature in every chapter – practical examples of innovation in action that help you to link theory with practice
Online resources available at www.pearsoned.co.uk/trott include PowerPoint slides and an Instructor’s Manual for lecturers.
Aimed at students taking courses in business studies and management, as well as non-specialist courses in other disciplines, this book provides a practical and accessible evidence-based approach to managing innovation in a wide range of contexts, including: manufacturing, services, small to large organisations and the private and public sectors.
About the Author
Paul Trott is Professor of Innovation Management at the Business School, University of Portsmouth and Professor of Innovation Management & Entrepreneurship at The Technical University of Delft, The Netherlands. His research is widely cited and is published in many journals including Research Policy, R&D Management, Technovation, International Journal of Innovation Management and Marketing Management.
Table of Contents
Section Title | Page | Action | Price |
---|---|---|---|
Cover | Cover | ||
Title Page | iii | ||
Copyright Page | iv | ||
Contents | v | ||
Preface | xix | ||
Acknowledgements | xxiii | ||
Plan of the book | xxix | ||
Part One Innovation management | 1 | ||
1 Innovation management: an introduction | 2 | ||
The importance of innovation | 4 | ||
The study of innovation | 7 | ||
Two traditions of innovation studies: Europe and the USA | 9 | ||
Recent and contemporary studies | 10 | ||
The need to view innovation in an organisational context | 11 | ||
Individuals in the innovation process | 12 | ||
Problems of definition and vocabulary | 12 | ||
Entrepreneurship | 13 | ||
Design | 13 | ||
Innovation and invention | 15 | ||
Successful and unsuccessful innovations | 16 | ||
Different types of innovation | 17 | ||
Technology and science | 18 | ||
Popular views of innovation | 20 | ||
Models of innovation | 21 | ||
Serendipity | 21 | ||
Linear models | 22 | ||
Simultaneous coupling model | 23 | ||
Architectural innovation | 24 | ||
Interactive model | 24 | ||
Innovation life cycle and dominant designs | 25 | ||
Open innovation and the need to share and exchange knowledge (network models) | 26 | ||
Doing, using and interacting (DUI) mode of innovation | 27 | ||
Discontinuous innovation - step changes | 28 | ||
Innovation as a management process | 30 | ||
A framework for the management of innovation | 30 | ||
New skills | 33 | ||
Innovation and new product development | 34 | ||
Case study: Has the Apple innovation machine stalled? | 35 | ||
Chapter summary | 41 | ||
Discussion questions | 42 | ||
Key words and phrases | 42 | ||
References | 42 | ||
Further reading | 46 | ||
2 National systems of innovation and entrepreneurship | 48 | ||
Innovation in its wider context | 50 | ||
The role of the state and national 'systems' of innovation | 52 | ||
Why firms depend on the state for so much | 52 | ||
How national states can facilitate innovation | 53 | ||
National scientific capacity and R&D offshoring | 56 | ||
The impact of the economic crisis on innovation | 56 | ||
Fostering innovation in the United States and Japan | 56 | ||
Triple Helix of university-industry-government relationships that drives innovation | 57 | ||
The right business environment is key to innovation | 59 | ||
Waves of innovation and growth: historical overview | 59 | ||
Fostering innovation in 'late-industrialising' countries | 62 | ||
Innovation within the 28 European Union states | 63 | ||
Improving the innovation performance of the EU | 65 | ||
Entrepreneurship | 68 | ||
Entrepreneurship and innovation | 69 | ||
Defining entrepreneurship | 71 | ||
Technological entrepreneurship: a question of context | 73 | ||
Science and technology policy | 74 | ||
Small and medium-sized enterprise | 74 | ||
Innovation policy | 75 | ||
Entrepreneurship policy | 76 | ||
Case study: Pizza delivery with unmanned drones | 76 | ||
Chapter summary | 81 | ||
Discussion questions | 81 | ||
Key words and phrases | 82 | ||
Websites worth visiting | 82 | ||
References | 82 | ||
Further reading | 85 | ||
3 Market adoption and technology diffusion | 86 | ||
Time lag between innovation and useable product | 88 | ||
Innovation and the market | 88 | ||
Innovation and market vision | 89 | ||
Analysing internet search data to help adoption and forecasting sales | 89 | ||
Innovative new products and consumption patterns | 89 | ||
Marketing insights to facilitate innovation | 91 | ||
Lead users | 93 | ||
Users as innovators in the virtual world | 95 | ||
Crowdsourcing for new product ideas | 95 | ||
Frugal innovation and ideas from everywhere | 97 | ||
Innovation diffusion theories | 98 | ||
Beacon products | 100 | ||
Seasonality in innovation diffusion | 102 | ||
The Bass Diffusion Model | 102 | ||
Adopting new products and embracing change | 102 | ||
Market adoption theories | 104 | ||
Case study: How three students built a business that could affect world trade | 104 | ||
Chapter summary | 110 | ||
Discussion questions | 111 | ||
Key words and phrases | 111 | ||
References | 111 | ||
Further reading | 113 | ||
4 Managing innovation within firms | 116 | ||
Organisations and innovation | 118 | ||
The dilemma of innovation management | 118 | ||
Innovation dilemma in low technology sectors | 119 | ||
Dynamic capabilities | 120 | ||
Managing uncertainty | 120 | ||
Pearson's uncertainty map | 121 | ||
Applying the uncertainty map in practice | 123 | ||
Managing innovation projects | 124 | ||
Organisational characteristics that facilitate the innovation process | 126 | ||
Growth orientation | 129 | ||
Organisational heritage and innovation experience | 130 | ||
Vigilance and external links | 130 | ||
Commitment to technology and R&D intensity | 130 | ||
Acceptance of risks | 131 | ||
Cross-functional cooperation and coordination within organisational structure | 131 | ||
Receptivity | 131 | ||
Space for creativity | 131 | ||
Strategy towards innovation | 132 | ||
Diverse range of skills | 132 | ||
Industrial firms are different: a classification | 133 | ||
Organisational structures and innovation | 135 | ||
Formalisation | 136 | ||
Complexity | 136 | ||
Centralisation | 137 | ||
Organisational size | 137 | ||
The role of the individual in the innovation process | 137 | ||
IT systems and their impact on innovation | 138 | ||
Management tools for innovation | 141 | ||
Innovation management tools and techniques | 141 | ||
Applying the tools and guidelines | 144 | ||
Innovation audit | 144 | ||
Case study: Gore-Tex® and W.L. Gore & Associates: an innovative company and a contemporary culture | 145 | ||
Chapter summary | 149 | ||
Discussion questions | 150 | ||
Key words and phrases | 150 | ||
References | 150 | ||
Further reading | 153 | ||
5 Operations and process innovation | 154 | ||
Operations management | 156 | ||
The nature of design and innovation in the context of operations | 157 | ||
Design requirements | 158 | ||
Design and volumes | 160 | ||
Craft-based products | 162 | ||
Design simplification | 163 | ||
Reverse engineering | 163 | ||
Process design | 164 | ||
Process design and innovation | 166 | ||
The relationship between product and process innovation | 168 | ||
Managing the manufacturing: R&D interface in process industries | 168 | ||
Stretch: how innovation continues once investment is made | 168 | ||
Innovation in the management of the operations process | 169 | ||
Triggers for innovation | 170 | ||
Design of the organisation and its suppliers: supply chain management | 175 | ||
Business process re-engineering (BPR) | 178 | ||
Lean innovation | 179 | ||
Case study: Innovation on the production line | 180 | ||
Chapter summary | 184 | ||
Discussion questions | 184 | ||
Key words and phrases | 185 | ||
References | 185 | ||
Further reading | 186 | ||
6 Managing intellectual property | 188 | ||
Intellectual property | 190 | ||
Trade secrets | 193 | ||
An introduction to patents | 193 | ||
Novelty | 195 | ||
Inventive step | 195 | ||
Industrial applications | 195 | ||
Exclusions from patents | 196 | ||
The patenting of life | 196 | ||
The configuration of a patent | 198 | ||
Patent harmonisation: first to file and first to invent | 198 | ||
Some famous patent cases | 199 | ||
Patents in practice | 200 | ||
Expiry of a patent and patent extensions | 201 | ||
Patent extensions | 202 | ||
The use of patents in innovation management | 203 | ||
Patent trolls | 203 | ||
Do patents hinder or encourage innovation? | 204 | ||
Alternatives to patenting | 205 | ||
Trademarks | 207 | ||
Satisfy the requirements of section 1(1) | 208 | ||
Be distinctive | 209 | ||
Not be deceptive | 209 | ||
Not cause confusion | 210 | ||
Brand names | 210 | ||
Using brands to protect intellectual property | 210 | ||
Exploiting new opportunities | 211 | ||
Brands, trademarks and the internet | 212 | ||
Duration of registration, infringement and passing off | 212 | ||
Registered designs | 213 | ||
Copyright | 214 | ||
Remedy against infringement | 216 | ||
Damages | 216 | ||
Injunction | 216 | ||
Accounts | 216 | ||
Counterfeit goods and IP | 216 | ||
Case study: Pricing, patents and profits in the pharmaceutical industry | 218 | ||
Chapter summary | 221 | ||
Discussion questions | 222 | ||
Key words and phrases | 222 | ||
References | 222 | ||
Further reading | 224 | ||
Part Two Turning technology into business | 225 | ||
7 Managing organisational knowledge | 226 | ||
The Battle of Trafalgar | 228 | ||
Technology trajectories | 229 | ||
The acquisition of firm-specific knowledge | 230 | ||
The resource-based perspective | 230 | ||
Dynamic competence-based theory of the firm | 231 | ||
Developing firm-specific competencies | 233 | ||
Competencies and profits | 234 | ||
Technology development and effort required | 235 | ||
The knowledge base of an organisation | 236 | ||
The whole can be more than the sum of the parts | 237 | ||
Organisational heritage | 237 | ||
When the performance of the organisation is greater than the abilities of individuals | 238 | ||
Characterising the knowledge base of the organisation | 239 | ||
The learning organisation | 241 | ||
Innovation, competition and further innovation | 242 | ||
Dominant design | 244 | ||
How firms cope with radical and incremental innovation | 244 | ||
Developing innovation strategies | 248 | ||
Leader/offensive | 249 | ||
Fast follower/defensive | 250 | ||
Cost minimisation/imitative | 250 | ||
Market segmentation specialist/traditional | 250 | ||
A technology strategy provides a link between innovation strategy and business strategy | 251 | ||
Case study: The cork industry, the wine industry and the need for closure | 251 | ||
Chapter summary | 260 | ||
Discussion questions | 260 | ||
Key words and phrases | 260 | ||
References | 261 | ||
Further reading | 262 | ||
8 Strategic alliances and networks | 264 | ||
Defining strategic alliances | 266 | ||
The fall of the go-it-alone strategy and the rise of the octopus strategy | 268 | ||
Complementary capabilities and embedded technologies | 269 | ||
Interfirm knowledge-sharing routines | 270 | ||
Forms of strategic alliance | 271 | ||
Licensing | 271 | ||
Supplier relations | 272 | ||
Outsourcing | 272 | ||
Joint venture | 273 | ||
Collaboration (non-joint ventures) | 273 | ||
R&D consortia | 273 | ||
Industry clusters | 274 | ||
Low technology industry rely on networks for innovation | 275 | ||
Innovation networks | 275 | ||
The 'virtual company' | 278 | ||
Motives for establishing an alliance | 279 | ||
The process of forming a successful strategic alliance | 279 | ||
Negotiating a licensing deal | 280 | ||
Terms for the agreement | 281 | ||
Rights granted | 281 | ||
Licence restrictions | 281 | ||
Improvements | 281 | ||
Consideration (monetary value) | 281 | ||
Reports and auditing of accounts | 282 | ||
Representations/warranties | 282 | ||
Infringement | 282 | ||
Confidentiality | 282 | ||
Arbitration | 282 | ||
Termination | 282 | ||
Risks and limitations with strategic alliances | 283 | ||
The role of trust in strategic alliances | 284 | ||
The concept of trust | 285 | ||
Innovation risks in strategic outsourcing | 286 | ||
Eating you alive from the toes up | 289 | ||
The use of game theory to analyse strategic alliances | 289 | ||
Game theory and the prisoner's dilemma | 290 | ||
Use of alliances in implementing technology strategy | 292 | ||
Case study: And the winner is Sony's Blu-ray - the high-definition DVD format war | 292 | ||
Chapter summary | 299 | ||
Discussion questions | 299 | ||
Key words and phrases | 299 | ||
References | 300 | ||
Further reading | 302 | ||
9 Management of research and development | 304 | ||
What is research and development? | 306 | ||
The traditional view of R&D | 307 | ||
R&D management and the industrial context | 307 | ||
R&D investment and company success | 310 | ||
Classifying R&D | 313 | ||
The operations that make up R&D | 315 | ||
R&D management and its link with business strategy | 317 | ||
Integration of R&D | 318 | ||
Strategic pressures on R&D | 319 | ||
The technology portfolio | 320 | ||
The difficulty of managing capital-intensive production plants in a dynamic environment | 322 | ||
Which business to support and how? | 322 | ||
Technology leverage and R&D strategies | 324 | ||
Strengths and limitations of this approach | 326 | ||
Allocation of funds to R&D | 326 | ||
Setting the R&D budget | 327 | ||
Level of R&D expenditure | 329 | ||
Case study: The long and difficult 13-year journey to the marketplace for Pfizer's Viagra | 330 | ||
Chapter summary | 337 | ||
Discussion questions | 337 | ||
Key words and phrases | 338 | ||
References | 338 | ||
Further reading | 339 | ||
10 Managing R&D projects | 342 | ||
Successful technology management | 344 | ||
The changing nature of R&D management | 346 | ||
Organising industrial R&D | 349 | ||
The acquisition of external technology | 350 | ||
Level of control of technology required | 351 | ||
Forms of external R&D | 352 | ||
Effective R&D management | 355 | ||
Managing scientific freedom | 355 | ||
Skunk works | 359 | ||
Technology roadmapping | 360 | ||
The link with the product innovation process | 360 | ||
The effect of R&D investment on products | 362 | ||
Evaluating R&D projects | 363 | ||
Evaluation criteria | 363 | ||
Case study: CSI and genetic fingerprinting | 368 | ||
Chapter summary | 374 | ||
Discussion questions | 374 | ||
Key words and phrases | 375 | ||
References | 375 | ||
Further reading | 376 | ||
11 Open innovation and technology transfer | 378 | ||
Background | 380 | ||
The dominant economic perspective | 381 | ||
Open innovation | 382 | ||
The paradox of openness | 384 | ||
Introduction to technology transfer | 384 | ||
Information transfer and knowledge transfer | 385 | ||
Models of technology transfer | 386 | ||
Licensing | 386 | ||
Science park model | 387 | ||
Intermediary agency model | 388 | ||
Directory model | 388 | ||
Knowledge Transfer Partnership model | 388 | ||
Ferret model | 388 | ||
Hiring skilled employees | 390 | ||
Technology transfer units | 390 | ||
Research clubs | 390 | ||
European Space Agency (ESA) | 390 | ||
Consultancy | 391 | ||
Limitations and barriers to technology transfer | 391 | ||
NIH syndrome | 392 | ||
Absorptive capacity: developing a receptive environment for technology transfer | 393 | ||
Linking external technology to internal capabilities | 395 | ||
Managing the inward transfer of technology | 396 | ||
Technology transfer and organisational learning | 397 | ||
Case study: How developments in electronic sensors create destruction in the disposable nappy industry | 398 | ||
Chapter summary | 403 | ||
Discussion questions | 403 | ||
Key words and phrases | 404 | ||
References | 404 | ||
Further reading | 406 | ||
Part Three New product development | 409 | ||
12 Business models | 410 | ||
What is a business model? | 413 | ||
The business model and the business plan | 415 | ||
The range of business models | 416 | ||
The sixteen business model archetypes | 417 | ||
Revenue models | 420 | ||
Enterprise models | 421 | ||
Industry models | 422 | ||
The parts of the business model | 422 | ||
The offering | 423 | ||
The customer side | 423 | ||
The infrastructure | 424 | ||
The finances | 424 | ||
The business model dilemma of technology shifts | 426 | ||
Considerations in designing a business model | 428 | ||
Switching costs | 428 | ||
Scalability | 428 | ||
Recurring revenues | 428 | ||
Cashflow | 429 | ||
Getting others to do the work | 429 | ||
Protecting the business from competitors | 429 | ||
Changing the cost structure | 429 | ||
Intellectual property is an asset | 430 | ||
The technology licence and business relationships | 430 | ||
Continual adaptation of the business model | 431 | ||
The licensing business model | 431 | ||
Income from licensing | 432 | ||
Marketing issues related to the licensing model | 432 | ||
Financial and strategic implications | 433 | ||
Costs and benefits of the licensing model | 433 | ||
Other strategic uses of licensing | 434 | ||
Case study: Developing a new product for the teeth whitening market | 435 | ||
Chapter summary | 441 | ||
Discussion questions | 442 | ||
Key words and phrases | 442 | ||
References | 442 | ||
Further reading | 443 | ||
13 Product and brand strategy | 446 | ||
Capabilities, networks and platforms | 448 | ||
Product platforms | 449 | ||
Product planning | 451 | ||
Product strategy | 454 | ||
Competitive strategy | 454 | ||
Product portfolios | 455 | ||
The competitive environment | 456 | ||
Differentiation and positioning | 457 | ||
Differentiation | 457 | ||
Product positioning | 458 | ||
Competing with other products | 460 | ||
Managing brands | 462 | ||
Brands and blind product tests | 462 | ||
Brand strategy | 464 | ||
Brand extensions | 465 | ||
Market entry | 468 | ||
Launch and continuing improvement | 470 | ||
Withdrawing products | 471 | ||
Managing mature products | 472 | ||
Case study: Umbrella wars: GustBuster® and senz° | 473 | ||
Chapter summary | 477 | ||
Discussion questions | 477 | ||
Key words and phrases | 478 | ||
References | 478 | ||
Further reading | 479 | ||
14 New product development | 480 | ||
Innovation management and NPD | 482 | ||
Product development as a series of decisions | 484 | ||
New products and prosperity | 484 | ||
Considerations when developing an NPD strategy | 485 | ||
Ongoing corporate planning | 485 | ||
Ongoing market planning | 486 | ||
Ongoing technology management | 486 | ||
Opportunity analysis/serendipity | 486 | ||
NPD as a strategy for growth | 486 | ||
Market penetration | 487 | ||
Market development | 487 | ||
Product development | 487 | ||
Diversification | 488 | ||
A range of product development opportunities | 488 | ||
What is a new product? | 490 | ||
Defining a new product | 492 | ||
Classification of new products | 494 | ||
Repositioning and brand extensions | 496 | ||
New product development as an industry innovation cycle | 497 | ||
Overview of NPD theories | 498 | ||
The fuzzy front end | 499 | ||
Customer cocreation of new products | 501 | ||
Time to market | 502 | ||
Agile NPD | 502 | ||
Models of new product development | 503 | ||
Departmental-stage models | 503 | ||
Activity-stage models and concurrent engineering | 505 | ||
Cross-functional models (teams) | 505 | ||
Decision-stage models | 506 | ||
Conversion-process models | 507 | ||
Response models | 507 | ||
Network models | 507 | ||
Case study: Launching innocent into the growing fruit smoothie market | 508 | ||
Chapter summary | 516 | ||
Discussion questions | 516 | ||
Key words and phrases | 516 | ||
References | 517 | ||
Further reading | 519 | ||
15 New service innovation | 522 | ||
The growth in services | 524 | ||
Growth in knowledge-intensive business services (KIBS) | 524 | ||
Outsourcing and service growth | 525 | ||
Different types of services | 528 | ||
Technology and new service development | 530 | ||
New services and new business models | 530 | ||
Characteristics of services and how they differ from products | 531 | ||
Classification of service innovations | 532 | ||
The new service development process | 533 | ||
New service development models | 535 | ||
Sequential service development models or Stage-Gate® models | 535 | ||
Concurrent service development models | 536 | ||
Service innovation and the consumer | 538 | ||
Consumer user toolkits | 538 | ||
Consumer testing of services | 540 | ||
Case study: Developing new services at eBay | 541 | ||
Chapter summary | 548 | ||
Discussion questions | 548 | ||
Key words and phrases | 548 | ||
References | 548 | ||
Further reading | 551 | ||
16 Market research and its influence on new product development | 552 | ||
Market research and new product development | 554 | ||
The purpose of new product testing | 555 | ||
Testing new products | 556 | ||
Techniques used in consumer testing of new products | 557 | ||
Concept tests | 557 | ||
Test centres | 558 | ||
Hall tests/mobile shops | 558 | ||
Product-use tests | 558 | ||
Trade shows | 558 | ||
Monadic tests | 559 | ||
Paired comparisons | 559 | ||
In-home placement tests | 559 | ||
Test panels | 559 | ||
When market research has too much influence | 559 | ||
Discontinuous new products | 562 | ||
Market research and discontinuous new products | 563 | ||
Circumstances when market research may hinder the development of discontinuous new products | 564 | ||
Technology-intensive products | 565 | ||
Breaking with convention and winning new markets | 566 | ||
When it may be correct to ignore your customers | 570 | ||
Striking the balance between new technology and market research | 571 | ||
Using suppliers and lead users to improve product variety | 572 | ||
The challenge for senior management | 573 | ||
Case study: Dyson, Hoover and the bagless vacuum cleaner | 573 | ||
Chapter summary | 582 | ||
Discussion questions | 582 | ||
Key words and phrases | 583 | ||
References | 583 | ||
Further reading | 584 | ||
17 Managing the new product development process | 586 | ||
New products as projects | 588 | ||
The Valley of Death | 589 | ||
The key activities that need to be managed | 590 | ||
Assembling knowledge | 592 | ||
The generation of business opportunities | 593 | ||
Developing product concepts: turning business opportunities into product concepts | 594 | ||
The screening of business opportunities | 595 | ||
New technology product blogs | 597 | ||
Development of product prototypes | 597 | ||
Technical testing | 599 | ||
Market testing and consumer research | 599 | ||
How virtual worlds can help real-world innovations | 600 | ||
Market introduction | 601 | ||
NPD across different industries | 603 | ||
Organisational structures and cross-functional teams | 603 | ||
Teams and project management | 604 | ||
Functional structures | 604 | ||
Matrix structures | 605 | ||
Corporate venturing | 607 | ||
Project management | 607 | ||
Reducing product development times through computer-aided design | 608 | ||
The marketing/R&D interface | 608 | ||
High attrition rate of new products | 609 | ||
Case study: An analysis of 3M, the innovation company | 612 | ||
Chapter summary | 617 | ||
Discussion questions | 617 | ||
Key words and phrases | 618 | ||
References | 618 | ||
Further reading | 619 | ||
Index | 621 | ||
A | 621 | ||
B | 621 | ||
C | 622 | ||
D | 624 | ||
E | 624 | ||
F | 625 | ||
G | 625 | ||
H | 626 | ||
I | 626 | ||
J | 627 | ||
K | 627 | ||
L | 628 | ||
M | 628 | ||
N | 629 | ||
O | 630 | ||
P | 630 | ||
Q | 631 | ||
R | 631 | ||
S | 632 | ||
T | 633 | ||
U | 634 | ||
V | 634 | ||
W | 635 | ||
X | 635 | ||
Y | 635 | ||
Z | 635 |