Innovation Models, Strategies, and Management Techniques
1) Kline and Rosenberg’s Chain-Linked Model
3) Another non-linear model of innovation processes is Kline and Rosenberg’s (1986) “chain-linked model”. Describe and explain this model, (i.e. describe what constitutes an innovation process according to Kline and Rosenberg’s (1986) “chain-linked model”) (2p)
An innovation process is non-linear and complex with uncertainties, including market and technology uncertainty. They also describe it as a chain of old and new solutions.
The innovation process is visualized as follows: Potential market → Invention/analytical design → Detailed design and test → Redesign and produce → Distribute and market. These stages are connected via feedback loops, which shape and form solutions to improve or fix issues. The model also incorporates knowledge and research. Existing knowledge, both internal and external, should be utilized first. If existing knowledge is insufficient, then research should be conducted, as research is costly and time-consuming. The starting point can be anywhere, since it is not linear.
2) MIRP-Studies’ Model of Convergent and Divergent Behavior
2) In this course you have encountered a number of models that aspire to explain innovation processes, one of which is the MIRP-studies’ model of convergent and divergent behavior (Van de Ven et al., 1999). This model of “cycling the innovation journey” is presented together with 12 observations throughout the innovation process. Describe 2 observations for each period in the innovation journey. (2p)
The innovation journey includes the initiation period, developmental period, and implementation period.
Initiation Period:
- Innovation is not a single event, nor a single dramatic incident, nor the work of a single entrepreneur. There are many events and people over an extended gestation period, which can take several years.
- Shocks that start the innovation include internal and external triggers.
Developmental Period:
- Once the process has started, the initial idea proliferates into numerous different ideas that diverge and follow parallel paths.
- Setbacks and mistakes happen, which could be environmental or other factors. It’s important to address them promptly to prevent them from snowballing into bigger problems.
Implementation Period:
- Innovations are often implemented before they are fully finished, allowing for concurrent development and implementation.
- Innovations stop when they run out of resources or are stopped by management.
3) Effectuation vs. Causation (Sarasvathy, 2001)
1) According to Sarasvathy (2001), is an effectuation approach more appropriate for managing innovation processes than is a causation approach? Your answer should elaborate on what signifies the two concepts. That is, make sure to define ‘causation’ and “effectuation” in accordance with Sarasvathy (2001).
Effectuation involves having the means and the effect, exploiting contingencies. Causation involves having the effect but not the means, exploiting existing knowledge. According to Sarasvathy, neither is inherently more appropriate; the situation dictates the best approach. Effectuation is often more fitting at the start of an innovation where it is more turbulent, similar to divergence, while causation can be better towards the end of an innovation process where focus increases and uncertainty is lower, similar to convergent behavior.
4) Importance of Innovation in Today’s Society (Tidd & Bessant, 2013)
4) Why is innovation according to Tidd and Bessant (2013) extra important to study in today’s society (in comparison with how important innovation have been historically)? (2p)
One of the reasons is that the competitive climate today is much harder, and the development of technology is so fast that companies need to innovate to survive and grow. A perfect example is Nokia, once the biggest cellphone company, which refused to innovate and is now nowhere near the top. The same goes for Blockbuster and Kodak. There is so much innovation today that if you don’t innovate, you will be left behind. There is a saying that goes “innovate or die”. Now more than ever, innovation is essential.
5) Knowledge Management in Innovation (Tidd & Bessant, 2013)
6) When elaborating on the phase ‘capture’ in their generic model of managing innovation processes, Tidd and Bessant (2013) emphasize ‘knowledge management’. What does ‘knowledge management’ entail, and why is it important in managing innovation, according to Tidd and Bessant (2013)? (2p)
Knowledge is assembled and structured data embedded within the company; it is important as it helps with adapting flexibility to the environment. It is important to monitor knowledge as it determines core competencies. The management task is to obtain knowledge by encouraging in-house research, joint ventures, external networks, and research consortia. With knowledge, you can create routines. It is also important to turn tacit knowledge into explicit knowledge.
With knowledge, you can turn uncertainties into calculable risks, avoid repeating mistakes, and develop new technology.
6) Definition of Innovation (Tidd & Bessant, 2013)
8) Define, based on Tidd and Bessant (2013), the concept of innovation. (1p)
Based on Tidd and Bessant (2020), innovation is defined as the process of translating ideas into practical applications that generate value, whether economic, social, or environmental. It involves more than just invention; it encompasses the systematic development and successful implementation of new or significantly improved products, services, processes, or business models. Innovation is a core driver of organizational growth and competitiveness, requiring the integration of technological advancements, market needs, and organizational changes. Crucially, it is not limited to high-tech sectors but applies across industries and contexts, emphasizing the dynamic interplay between creativity, knowledge, and market delivery.
7) Failure Rates in Innovation (Tidd & Bessant)
5. Tidd & Bessant describe that the failure-rate for innovation is high (85% of new ideas never reach a market; 60% of R&D projects are market failures; 40% of consumer products & services fail; 20% business products & services fail). Give two explainations of the failure-rates above. (2p)
High failure rates in innovation stem from several interconnected factors. One key reason is market misalignment, where products or services fail to resonate with customer needs or expectations. This often happens when companies focus more on technological capabilities than understanding their target market. Another significant reason is technical challenges. Innovations frequently encounter unforeseen technical problems that make the product unfeasible or excessively costly to produce. Additionally, organizational factors such as lack of effective project management, insufficient resources, or poor internal collaboration can exacerbate these issues. Together, these elements highlight the inherent risks and uncertainties of the innovation process.
8) Management Tools for Handling Uncertainty
7. Describe four different management tools to handle uncertainty during the innovation process. (2p)
Managing uncertainty in the innovation process requires robust tools and strategies. Scenario planning helps organizations explore various potential futures, allowing them to prepare adaptable strategies and anticipate challenges. Prototyping is another critical tool, enabling teams to test early-stage concepts, gather feedback, and refine solutions before significant resources are invested. Agile methods, like scrum or iterative development, provide a flexible framework for adapting to rapid changes, focusing on small, incremental progress. Additionally, risk assessment frameworks offer a structured way to evaluate potential risks, prioritize resources, and develop mitigation plans. Together, these tools help organizations navigate the complexities and unpredictability of innovation.
9) Chain-Link Model Appropriateness (Kline & Rosenberg, 1986)
Why is the “Chain-link model” an appropriate name?
1. Why is the “Chain-link model” an appropriate name for the innovation process, as per Kline & Rosenberg (1986)?
The Chain-link model is aptly named because it represents innovation as a non-linear, iterative process where multiple components interact dynamically. Unlike linear models, it acknowledges feedback loops between market needs, product design, and production. It emphasizes that innovation requires integrating technological capabilities with market demands while addressing uncertainties at each stage. The model illustrates the interconnected paths of information flow and problem-solving, showing that no single element functions in isolation, much like the links of a chain that rely on each other for strength and functionality.
10) Four Common Sources of Innovation (Tidd & Bessant, 2020)
3. Four Common Sources of Innovation (Tidd & Bessant, 2020)
Tidd and Bessant identify these four sources of innovation:
- Knowledge Push: Innovations driven by scientific and technical advances.
- Need Pull: Responses to explicit demands or unmet market needs.
- Process Innovation: Enhancements to efficiency or productivity within existing operations.
- User Innovation: Solutions emerging directly from end-user experiences and needs. Each source highlights how innovation can stem from varied motivations and contexts, requiring organizations to cultivate an awareness of both internal and external opportunities.
11) Kline & Rosenberg’s Chain-Link Model Explained
1. Describe Kline & Rosenberg’s (1986) ”Chain-link model” of the innovation process (from the chapter “An Overview of Innovation” in the course compendium).
The Chain-Link Model emphasizes that innovation is not a linear process but a complex system involving feedback loops and multiple interdependencies. The process begins with design and extends through development, production, and marketing. Feedback loops allow adjustments based on market needs or technical challenges. Science supports the process, both through the application of existing knowledge and the creation of new knowledge when gaps arise. This model integrates both “technology push” and “market pull” dynamics, highlighting that innovation emerges from iterative collaboration between technical and market elements.
12) Leadership Roles in Innovation (Van de Ven et al. 1999)
2. The researchers in the MIRP-studies (Minnesota Innovation Research Program – ”The Innovation Journey”, Van de Ven et al. 1999) observed that the role of the leadership were different in the two phases in the innovation process. Describe how the leadership changed during the innovation process. (2p)
In the early phases of innovation, leadership focuses on exploration, encouraging creativity and experimentation to identify new opportunities. Leaders act as visionaries, fostering a climate for innovation and securing resources. In later phases, leadership shifts to implementation, emphasizing structure, control, and problem-solving to ensure the successful execution of ideas. This evolution from visionary to managerial leadership is crucial for navigating the uncertainty and complexity of the innovation journey.
13) Similarities Between Effectuation/Incrementalist Strategies
3. Sarasvathy (2001) describes two different strategies in terms of Effectuation and Causation. Tidd & Bessant (2009) (in the textbook “Managing innovation”) use the concepts Incrementalist and Rationalist strategies for innovation. Discuss the similaries between these strategies for innovation. (2p)
Effectuation and Incrementalist strategies both emphasize flexibility, iterative learning, and adapting based on available resources or emerging opportunities. They thrive in uncertain environments, focusing on small steps rather than predefined goals. Conversely, Causation and Rationalist strategies are goal-oriented, emphasizing planning and the use of structured analysis to achieve predetermined objectives. Despite these contrasts, all strategies aim to manage innovation by balancing control and adaptability depending on the context.
14) Importance of Routines in Managing Innovation
5) Tidd and Bessant (2013) argue that routines are important in managing innovation. Why and how are they important according to Tidd and Bessant? Give examples of routines for managing innovation, addressed by Tidd and Bessant (2013). (2p)
Routines are sort of the companys personality,
“The way we do things around here a repeated behaviour of Sorts. Routines are important as they help degrese uncertainty and ambiguity, also with saving time and reducing costs. It is important to note that routines can also be bad. Old routines can get outdated. Doing market research can also be a good routine to keep track of what consumers want. Routines are firm specific, meaning a company can not have anothers routine, it would probably not work for them
15) Techniques for Assessing Markets for Innovation
7) One important task in the management of innovation processes is to assess how the market will react to an innovation. This is especially difficult when there is no established market (a priori) for the innovation. Explain two techniques for assessing such markets. (2p)
You have Plenty of ways to do this, there is 1-Sending out scouts 2-Market research 3-Prove and learn and so on.
I would argue that “Prove and learn” is a good one as you create a prototype that you present to the consumer. The other one would be” deep diving”as you go deep and really understand how the costumers behave and what they like. This way you can create an Understanding of how they would react to your innovation. Prove and learn would be best if there is no established market.
16) Function of Routines in the Innovation Process
4. What function plays routines in the innovation process, according to Tidd & Bessant (in the textbook “Managing innovation”) (2p)
Routines act as the foundation for organizational processes, helping to standardize operations and reduce uncertainty. In innovation, routines enable consistency in knowledge management, facilitate experimentation, and provide frameworks for scaling successful practices. However, overreliance on routines can stifle creativity, so they must evolve to accommodate new ideas and insights. Balancing structure with flexibility is essential for fostering innovation.
17) Characteristics of an Innovative Climate
6. Describe from Tidd & Bessant four characteristics of an innovative climate in an organization? (2p)
An innovative climate thrives on a combination of cultural and structural factors. Shared vision is crucial, as it provides a clear direction and purpose, motivating employees to align their efforts with organizational goals. Supportive leadership plays a pivotal role in fostering trust, encouraging risk-taking, and protecting employees from punitive outcomes if experiments fail. Open communication ensures that ideas flow freely across departments and hierarchies, breaking down silos that can hinder collaboration. Lastly, a reward system that recognizes and incentivizes innovation not only motivates individuals but also reinforces a culture where creativity and initiative are valued. These characteristics collectively create an environment conducive to sustained innovation.
18) Definition of Internal Corporate Venturing
8. Define the concept of internal corporate venturing. (1p)
Internal corporate venturing refers to initiatives within established companies aimed at fostering entrepreneurial activities and exploring new business opportunities. These ventures often operate as semi-independent units, combining the agility of startups with the resources of the parent organization. By nurturing internal ventures, companies can diversify revenue streams, test disruptive ideas, and stay competitive in evolving markets. For example, Google’s “X” division focuses on breakthrough technologies like self-driving cars and AI solutions. Internal corporate venturing enables firms to reduce risks associated with external acquisitions while leveraging internal expertise and fostering a culture of innovation and growth.
19) Leadership Challenges in Innovation Processes
2. Leadership Challenges and Roles in Innovation Processes (Van de Ven et al., 1999)
Leadership in innovation, as discussed by Van de Ven et al., involves managing uncertainties and coordinating diverse actors. Leaders face the challenge of maintaining a balance between fostering creativity and ensuring disciplined execution. They must navigate resource constraints, build coalitions, and sustain momentum over time. Their role includes setting a vision, resolving conflicts, and acting as facilitators of collaboration. Effective leaders adapt to evolving conditions and leverage networks to bridge gaps between stakeholders, ensuring alignment with the organization’s broader goals
20) Roles of Leaders and Managers in Innovation
4. Roles of Leadership and Managers in Innovation Processes (Tidd & Bessant, 2020)
Leaders and managers play critical roles in fostering innovation. They set a clear vision, inspire teams, and create a culture that encourages creativity and risk-taking. Managers allocate resources, ensure projects are aligned with strategy, and act as connectors between internal teams and external networks, such as universities or suppliers. Their role is also to facilitate learning and adapt to challenges. These responsibilities are essential for navigating the uncertainties of innovation and ensuring it delivers value for the organization, driving both growth and resilience.