Module annotation

Most successful firms have, at one time or the other, used new knowledge to offer new products or services that customers want or have been in a position to exploit other firm’s innovation. For the MBA a critical goal is to apply innovation concepts to real-life problems. So there is still Jay Barney’s quote: “there really isn’t anything quite as practical as a good theory”. For many firms, competitive advantage is gained and maintained through innovation. Innovation is not limited to high technology. Innovation usually means change, both in the organizational and the economic sense. For this reason, any models that seek to understand the phenomenon are necessarily multidisciplinary. Both strategy (see module Strategic Management) and its implementations are critical to successful exploitation of innovation. Many innovation strategies fail not because there is something fundamentally wrong with them, but because they are not well implemented. Innovation entails dealing with new knowledge – collecting information and turning it into new products or services.

One needs to understand theory in order to apply it, and concepts, models and theories. However that are learned and not practiced, evaporate quickly.

There is no doubt that innovations were, are, and will be extremely important for the individual and society. One way to understand the history of human culture is via its inventions and discoveries. All human cultural development builds on the amazing technological, scientific, educational, and moral achievements of the human mind. Today, people increasingly realize that innovations are even more critical than in the past. Thus, industrial competition is increasingly harsh and companies must continuously bring innovative products and services to the global market. To survive, companies need creative and inventive employees whose novel ideas are, to a certain extent, a necessity for the companies’ continued existence and future success. Consequently, modern society desperately requires highly able citizens who can produce innovative solutions to current challenges and contribute new ideas that aid in the development and growth of the market for a particular product or service. People of exceptionally innovative ability thus remain as extremely important source of innovation and renewal. Hence, the new millennium is characterized by the need for innovative minds. Contemporary society, without doubt, is highly reliant on innovations. The future will be synonymous with innovation, since it will need an extremely high saturation of innovations in all areas of human endeavour. Despite the quite evident importance of innovations in the life of any societal ‘organism’, one should acknowledge that the phenomenon of innovation is far from well understood.

The times for students of innovation have never been better, more promising, or more challenging. Innovation in new millennium is, what TQM was to the 1970s, what time-based management was to the 1980s and what efficiency was to the 1990s – that is precondition for gaining of maintaining a competitive advantage.

In business schools and executive education programmes, courses on innovation and new product development have been increasing in proliferation. Courses on innovation management are still rather scarce. It is our hope that this module on innovation management will (at least partly) support its becoming a core discipline, just as strategy management is now a core course in virtually every graduate management degree programme.

The ability to innovate is a vital core competency - one that you, as leader, entrepreneur or manager must possess, in order to build growing, profitable businesses. At the same time, managing innovation is one of the most difficult processes that you will guide and shape. It is this combination of high risk and high return, mission-critical importance and Everest-size challenge that makes innovation and innovation management so challenging.

Successful innovation occurs when an invention, related to a product, service or process in some part of the organization’s value chain, is joined with a business design, which in turn is implemented with discipline and skill through innovation management.

Therefore, it is useful to distinguish several terms.

  • Invention: The creation of novel services, products and production techniques.
  • Innovation: The practical refinement and development of an original invention into a usable technique or product or a process in which creativity is applied to every facet of an organization’s value chain, from beginning to end, to develop new and better ways of creating value for customers.
  • Innovation management: The process of creating and implementing a business design surrounding a creative idea, with the goal of transforming an invention into an innovation, and ultimately to achieving sustained competitive advantage, leading to growth and profit, in the marketplace.
  • Value chain: The series of related actions, processes and steps required to bring the finished product or service to the ultimate consumer. An organisation has an internal value chain comprising the processes the organisation employs to get its product to market; the industry has a more comprehensive industry value chain, that shows all the various processes and products that create value for the ultimate customer.
  • Business design: An integrated system showing how to create an internal value chain - finance, produce, market, deliver, advertise and service a product or service innovation - and then implement and manage that system, down the value chain, in order to delight the customer.

The ultimate goal of innovation is sustained competitive advantage. Sustained competitive advantage necessarily requires sustained innovation. To bring an innovation to market, companies conceive an invention and create a ‘value chain’ around it.

To build profitable, in-demand products from appealing new ideas, it is necessary to manage the innovative process - that is, wrap an innovative business design or model (how to finance, produce, market, deliver, advertise and service) around a product or service innovation, and then manage that process, down the value chain to the ultimate consumer

Often, innovative products are encased in conventional business models that do not fit the product innovation itself. For example, bringing the mp3 player iPod to market as a stand-alone product would have failed. Instead, the iPod innovation of Apple was part of a large ecosystem or business design that included 99% music downloads. Without that key element in the business design, the demand for the iPod would have been substantially smaller.

This is why we argue that in the term ‘innovation management’, the noun ‘manage- ment’ is as important as, or more important than, the adjective ‘innovation’. Frequently entrepreneurs break the rules, ask insightful questions, and come up with phenomenal inventive ideas, but fail to ask the three key questions:

  1. How will I build a business around this idea?
  2. How will I make money?
  3. How will I sustain growth and profit?

Why are innovation and innovation management so vital? We believe there are three key reasons to innovate:

  1. Energize your people
  2. Build growth and profit
  3. Survive

 

 

Content of the module

Due to time allocation for the course, content of the module is based on providing introduction and main overview about innovation, their frameworks, management and fundamentals and about few perspectives and approaches (with connection to others disciplines, topics and modules like Strategic Management and Project Management). For students it is necessary to understand what the innovation is, what are interconnections to processes, change, management and impact on companies, firms and their competitive advantage. There is no one-size-fits-all approach. There is also a need to understand not only competition and competitive advantage through innovation, but to understand the point of view and the role of networks, clusters, start-ups, culture, knowledge management, creativity and globalization in the innovation process for sustainable world (eg. UN Sustainability Goals).

 

 

Module goal

To help participants acquire the basic knowledge they need to apply innovation fundamentals, tools and processes so that they can support the innovation activities and projects and carry out necessary functions within their organizations. Also to help them gain an understanding of content, terminology, and application principles dealing with the innovation management efforts in time of disruption and post-pandemic world.

The aim of this course is to develop overview and provide basic knowledge and viewpoints required for innovation and its management, which will help the students to manage innovation (change) more strategically and efficiently. After completing this course with some self-study and reading literature the students will gain in depth knowledge on how to manage innovation as a management process, create innovation strategy, take technological directions into the consideration and apply collaborative approaches and learning for mutual benefits.

 

 

Related topics and “keywords”

  • Open innovation
  • Disruption
  • R&D
  • Start-up / Lean Startup
  • Design / Design Thinking
  • Clusters, Industrial Districts
  • Knowledge management
  • Intellectual capital, property rights
  • Venture capital, business angels
  • Strategy (e.g. Blue Ocean Strategy, competitive advantage (see Module annotation for this study subject)
  • Chaos
  • Sustainability
  • Lean
  • Creativity, creative class
  • Dynamic Capabilities
  • Business models and canvases
  • Benchmarking
  • Project management (see Module annotation for this study subject)
  • …

 

 

Module structure

  • Fundamentals
  • Innovation types and frameworks
  • Models of innovation
  • Strategizing
  • Innovation (and) strategy
  • Innovation (and) change
  • Innovation (and) management
  • Innovation (and) company
  • Implementation
  • Coopetition, networks, clusters
  • IMP3rove
  • Lean start-up approach
  • Role of globalization
  • Innovation landspace in the Czech Republic

 

 

Literature available for students as e-books

  • CARAYANNIS, Elias, G. a kol. Innovation and Entrepreneurship: Theory, Policy and Practice. London: Springer, 2015. 218 s. ISBN 978-3-319-11241-1.
  • CHRISTENSEN, Clayton, M. a kol. The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators. Boston: Harvard Business School Press, 2011. 304 s. ISBN 978-1-4221-3481-8.
  • DAVENPORT, Thomas, H., LEIBOLD, Marius, VOELPEL, Sven. Strategic Management in the Innovation Economy: Strategy Approaches and Tools for Dynamic Innovation Capabilities. Erlagen: Publicis KommunikationsAgentur, 2006. 441 s. ISBN 3-89578-263-7.
  • SGROI, Anthony, Jr. The Innovative Lean Enterprise: Using the Principles of Lean to Create and Deliver Innovation to Customers. Boca Raton: CRC Press, 2014. 256 s. ISBN 978-1-4822-0391-2.
  • SHALLEY, Christina E., HITT, Michael, A., ZHOU, Jing. The Oxford Handbook of Creativity, Innovation, and Entrepreneurship. Oxford: Oxford University Press, 2015. 540 s. ISBN 978-0-19-992767-8.
  • TIDD, Joe, BESSANT, John, PAVITT, Keith. Managing Innovation: Integrating Technological, Market, and Organizational Change. 3. vyd. Chichester: John Willey & Sons, 2005. 582 s. ISBN 0-470-09326-9.
  • TROTT, Paul. Innovation Management and New Product Development. 6. vyd. Harlow: Pearson, 2017. 635 s. ISBN 978-1-292-16540-0.

 

Digest of other relevant literature (please seek other resources in English language)

  • AFUAH, Allan. Innovation Management. Oxford: Oxford University Press, 2003. 390 s. ISBN 978-0-19-524230-3.
  • BRESCHI, Stefano, MALERBA, Franco (eds.). Clusters, Networks, and Innovation. Oxford: Oxford University Press, 2007. 499 s. ISBN 978-0-19-927556-4.
  • COOPER, Robert, G. Winning at New Products: Accelerating the Process from Idea to Launch. 3. vyd. Cambridge: Basic Books. 2001. 448 s. ISBN 978-0-738-20463-5.
  • GRAF, Holger. Networks in the Innovation Process. Local and Regional Interactions. Cheltenham: Edward Elgar, 2006. 203 s. ISBN 1-84542-930-3.
  • HAKES, Chris. Restart inovací. Jak rozvíjet, řídit a hodnotit způsobilost organizace a týmu k inovacím. Praha: ČSJ, 2012. 190 s. ISBN 978-80-02-02549-8.
  • HBR’s 10 Must Reads on Innovation. Boston: Harvard Business School Publishing, 2013. 179 s. ISBN 978-1-4221-8985-6.
  • CHRISTENSEN, Clayton, M. The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Dotisk. Boston: Harvard Business School Publishing, 2013. 252 s. ISBN 978-1-4221-9602-1.
  • CHRISTENSEN, Clayton, M. The Innovator's Solution: Creating and Sustaining Successful Growth. Boston: Harvard Business School Publishing, 2003. 301 s. ISBN 978-1-4221-9657-1.
  • MAITAL, Shlomo, SESHADRI, D. V. R. Innovation Management: Strategies, Concepts and Tools for Growths and Profit. New Dehli: Response Book, 2007. 491 s. ISBN 978–0–7619–3527–8.
  • SATELL, Greg. Mapping Innovation. A Playbook for Navigating a Disruptive Age. New York: McGraw-Hill, 2017. 215 s. ISBN 978-1-259-86225-0.

 

 

Relevant links to articles from lecturer Libor Friedel (in Czech language, with other references) 

 

 

Overview of relevant publications in Czech language

  • ADAIR, John, E. Umění kreativního myšlení. Jak být inovativní a rozvíjet skvělé myšlenky. Brno: Computer Press, 2011. 134 s. ISBN 978-80-251-3004-9.
  • ADAIR, John, E. Efektivní inovace. Praha: Alfa, 2004. 233 s. ISBN 80-86851-04-4.
  • BARTÁK, Jan. Od znalosti k inovacím. Praha: Alfa, 2008. 190 s. ISBN 978-80-87197-03-5.
  • BAUER, Miroslav. Kaizen – cesta ke štíhlé a flexibilní firmě. Brno: BizBooks, 2012. 193 s. ISBN 978-80-265-0029-2.
  • COLVIN, Geoffrey. Lidé jsou podceňováni. Co ani nejchytřejší počítače nikdy nebudou umět. Praha: Management Press, 2016. 231 s. ISBN 978-80-7261-402-8.
  • DRUCKER, Peter, F. Inovace a podnikavost. Praxe a principy. Praha: Management Press, 1993. 266 s. ISBN 80-85603-29-2.
  • DYTRT, Zdeněk a kol. Ženy a management. Kreativita, inovace, etika, kvalitativní management. Brno: BizBooks, 2014. 174 s. ISBN 978-80-265-0150-3.
  • DYTRT, Zdeněk. Efektivní inovace. Odpovědnost v managementu. Praha: Computer Press, 2009.150 s. ISBN 978-80-251-2771-1.
  • FÖRETSER, Anja, Kreuz, Peter. Nekonvenční myšlení. 17 pravidel pro vítězství v byznysu. Praha: Grada, 2007. 206 s. ISBN 978-80-247-1741-8.
  • FRANKOVÁ, Emilie. Kreativita a inovace v organizaci. Praha: Grada, 2011. 254 s. ISBN 978-80-247-3317-3.
  • GOLDRATT, Eliyahu, M. Cíl. Proces trvalého zlepšování. 2. přeprac. vyd. Praha: Interquality, 2016. 369 s. ISBN 978-80-905414-0-5.
  • CHESBROUGH, Henry, William. Otevřená inovace. Nový imperativ pro rozvoj technologií a vydělávání na nich. Praha: AC Innovation, 2014. 239 s. ISBN 978-80-260-6632-6.
  • CHESBROUGH, Henry, William. Otevřené modely podnikání. Jak uspět v současných podmínkách globální inovace. Praha: AC Innovation, 2014. 263 s. ISBN 978-80-260-6632-3.
  • IMAI, Masaaki. Gemba Kaizen. Brno: Computer Press, 2005. 314 s. ISBN 80-251-0850-3.
  • ISAACSON, Walter a kol. Inovátoři. Jak skupinka vynálezců, hackerů, géniů a nadšenců stvořila digitální revoluci. Praha: Práh, 2015. 651 s. ISBN 978-80-7252-579-9.
  • JÁČ, Ivan a kol. Inovace v malém a středním podniku. Brno: Computer Press, 2005. 174 s. ISBN 80-251-0853-8.
  • JOHNSON, Steven. Šest inovací, které stvořily moderní svět. Praha: Nakladatelství Tomáš Krsek, 2018. 265 s. ISBN 978-80-906242-6-9.
  • KISLINGEROVÁ, Eva. Inovace nástrojů ekonomiky a managementu organizací. Praha: C.H. Beck, 2008. 293 s. ISBN 978-80-7179-82-8.
  • KOŠTURIAK, Ján. Inovace – vaše konkurenční výhoda! Brno: Computer Press, 2008. 164 s. ISBN 978-80-251-1929-7.
  • KOŠTURIAK, Ján, FROLÍK, Zbyněk a kol. Štíhlý a inovativní podnik. Praha: Alfa, 2006. 237 s. ISBN 80-86851-38-9.
  • KOTLER, Philip. Inovativní marketing. Jak kreativním myšlením vítězit u zákazníků. Praha: Grada, 2005. 199 s. ISBN 80-247-0921-X.
  • MILLER, Jon. Kultura Kaizen. Změňte pohled na svůj business a dosáhněte průlomových výsledků. Brno: BizBooks, 2017. 245 s. ISBN 978-80-265-0618-8.
  • MLČOCH, Jan. Inovace a výnosnost podniku. Praha: Linde, 2002. 187 s. ISBN 80-7201-302-5.
  • MUŠKA, Milan a kol. Otevřené inovace. Přístup překračující známé meze. Bratislava: DonauMedia, 2009. 160 s. 978-80-89364-08-4.
  • MÜLLER, Karel. Inovace – vědění – instituce. Praha, Karolinum, 2017. 302 s. ISBN 978-80-246-3669-6.
  • NENADÁL, Jaroslav a kol. Benchmarking – mýty a skutečnost. Model efektivního učení se a zlepšování. Praha: Management Press, 2011. 265 s. ISBN 978-80-7261-224-6.
  • NORDSTRÖM, Kjell, A., RIDDERSTRALE, Jonas. Karaoke kapitalismus. Nenapodobujte! V businessu vítězí odlišnost. Praha: Grada, 2005. 323 s. ISBN 80-247-1209-1.
  • NOVÁK, Adam. Inovace je rozhodnutí. Kompletní návod, jak dělat inovace nejen v byznysu. Praha: Grada, 2017. 205 s. ISBN 978-80-271-0333-1.
  • OSTERWALDER, Alexander, PIGNEUR, Yves. Tvorba business modelů. Příručka pro vizionáře, inovátory a všechny, co se nebojí výzev. Brno: BizBooks, 2015. 278 s. ISBN 978_80-265-0425-2.
  • PAVELKOVÁ, Drahomíra, FRIEDEL, Libor a kol. Klastry a jejich vliv na výkonnost firem. Praha: Grada, 2009. 268 s. ISBN 978-80-247-2689-2.
  • PETERKOVÁ, Jindra. Využití konceptů inovací v průmyslovém podniku. Ostrava: VŠB-TU Ostrava, 2018. 184 s. ISBN 978-80-248-4072-7.
  • PILNÝ, Ivan. Digitální ekonomika. Žít nebo přežít. Brno: BizBooks, 2016. 216 s. ISBN 978-80-265-0481.8.
  • PITRA, Zbyněk a kol. Management transferu znalostí. Od prvního nápadu ke komerčně úspěšné inovaci. Praha: Professional Publishing, 2015. 336 s. ISBN 978-80-7341-145-1.
  • PITRA, Zbyněk. Management inovačních aktivit. Praha: Professional Publishing, 2006. 438 s. ISBN 80-86949-10-X.
  • RIES, Eric. Lean startup. Jak vybudovat úspěšný byznys na základě neustálé inovace. Brno: BizBooks, 2015. 279 s. ISBN 978-80-265-0389-7.
  • SHAPIRO, Gary. Ninja inovace. Deset zabijáckých strategií. Brno: Zoner Press, 2014. 237 s. ISBN 978-80-7413-288-9.
  • ŠVEJDA, Pavel. Inovační podnikání. Praha. Asociace inovačního podnikání ČR, 2007. 345 s. ISBN 978-80-903153-6-5.
  • THIEL, Peter, MASTERS, Blake. Od nuly k jedničce. Úvahy o startupech aneb Jak tvořit budoucnost. Brno: Jan Melvil Publishing, 2015. 191 s. ISBN 978-80-87270-72-1.
  • TIDD, Joseph a kol. Řízení inovací. Zavádění technologických, tržních a organizačních změn. Brno: Computer Press, 2007. 549 s. ISBN 978-80-251-1466-7.
  • TROMMSDORFF, Volker, STEINHOFF, Fee. Marketing inovací. Praha: C.H. Beck, 209. 291 s. ISBN 978-80-7400-092-8.
  • VLČEK, Radim. Strategie hodnotových inovací. Tvorba, rozvoj a měřitelnost inovací. Praha: Professional Publishing, 2011. 196 s. ISBN 978-80-7431-048-5.

 

 

Libor Friedel, 2/2022

libfri@gmail.com

https://www.ustavprava.cz/lektor/11-ing-libor-friedel-mba

https://ebschool.cz/blog/?autor=11

Ing. Libor Friedel, MBA

Ing. Libor Friedel, MBA---

Lektor na European Business School SE a Ústavu práva a právní vědy.

Během své profesní kariéry strávil přes 11 000 hodin v přímé práci se zákazníky v komerční, veřejné i univerzitní sféře.