WHAT IS INNOVATION DR SELEN NLOLU SELEN UNLUOGLUIEU

WHAT IS INNOVATION? DR. SELEN ÜNLÜOĞLU SELEN. UNLUOGLU@IEU. EDU. TR SUNLUOGLU. WEEBLY. COM

LAST WEEK: INNOVATION VERSUS INVENTION INNOVATION DOES NOT TAKE PLACE IN ISOLATION

WHAT IS INNOVATION? . . OLD QUESTION “Constant revolutionizing of production, uninterrupted disturbance of all social conditions, everlasting uncertainty. . . all old-established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries. . . whose products are consumed not only at home but in every quarter of the globe. In place of old wants satisfied by the production of the country, we find new wants. . . the intellectual creativity of individual nations become common property. ”

DEFINING INNOVATION • • Definitions vary enormously. • ‘Innovation is the successful exploitation of new ideas’ Business definition: turning opportunity or need into new products and services, which are commercially exploited.

SCOPE FOR INNOVATION • • Innovation is about new possibilities (E. g. Mobile phones, PDAs) Innovation is about creating and growing new markets (E. g. Model T, Ebay) Innovation is about new ways of serving (E. g. Easy. Jet) Innovation isn’t just about manufactured products (E. g. Amazon, Ebay)

TYPES OF INNOVATION • Innovation is not JUST new products • Processes • Business models • Systems • Services

Mc. Donalds • • Did not invent hamburger Did invent a system of standardized delivery A process innovation A service innovation

Google • • • Larry Page and Sergey Brin didn’t invent search engines New approach to search engine funded by advertising revenue Business model

Innovation does not even have to be a “thing” • Cyrus Mc. Cormick invented the “purchasing power” • Social Innovation

DEGREE OF NOVELTY • Innovation is not just new to the world • Radical Innovation – fundamental change • Incremental Innovation – modest improvements • The perceived degree of novelty by actors is what matters.

INTERPLAYS (1) Interplay between Product and Process Innovations (e. g. Electric lighting, Mc. Donald’s)

INTERPLAYS (2) Interplay between different situations for innovation Creative Destruction (e. g. ice harvesting industry) Sustainable Change (e. g. Phone, PC) Exploitation (e. g. Automobile)

INTERPLAYS (3) Interplay between Radical and Incremental Innovations

INTERPLAYS (4) • • Introducing an innovation to a different context Interplay between innovators and imitators

INNOVATION PROCESSES 1) 2) 3) 4) The production of scientific and technological knowledge The translation of knowledge into working products Matching products with users’ requirements Learning – experimentation and improved understanding

INNOVATION CAPABILITY

INNOVATION STRATEGY

Source: John Bessant and Joe Tidd (2005). Innovation and Entrepreneurship, p. 17

INNOVATION IS ABOUT. . . • • Openness to new ideas Spotting opportunities Seeing connections Combining knowledge sets Collaborating with individuals and companies Creating and growing markets New ways of serving