1-Intro to Innov Product Mgt- Part 2

8/2/2019 1-Intro to Innov Product Mgt- Part 2

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INNOVATION AND PRODUCTNNOVATION AND PRODUCTMANAGEMENTANAGEMENT- SPL 4402PL 4402

PM Dr. WILFREDO HERRERA LIBUNAOE-MAIL: [email protected]

PHONE: OFFICE= 5534361; MOBILE:+60177622027; +60167825658

OFFICE: C15-403(1), FACULTY OFEDUCATION

11:00 AM 1:00 PM, WEDNESDAYS

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Theory, concepts,heory, concepts,pr inciples and definit ions:rinciples and definit ions:

Innovat ion, invent ion, creat ivity,nnovat ion, invent ion, creat ivity,technology, research andechnology, research and

developm ent , etc.evelopm ent , etc.



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*PHILOSOPHY**PHILOSOPHY*

*PRINCIPLES**PRINCIPLES**THEORIES**THEORIES*

*CONCEPTS**CONCEPTS*



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- "love of wisdom love of wisdom ." [Socrates]. A philosopher is a lover ofwisdom, a searcher for the truth, or one who pursuesknowledge .

- "a system of principles system of principles for guiding practicalaffairs [Stein, 1980].

- the general beliefs and attitudes of an

individual or group[Moore, 1988]

- the body of principles body of principles underlying a branchof learning or major discipline [Moore, 1988] .

PhilosophyPhilosophy



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PrinciplesPrinciples a basic generalization that is accepted as true

and that can be used as a basis for reasoning basis for reasoning or conduct or conduct

a rule or standard especially of good behavior good behavior

a basic truth or law or assumption

a rule or law concerning a naturalphenomenon or the function of a complexsystem



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Importance of principlescontd Importance of principlescontd

n A unique feature of principles is that, unlike concepts andprocedures, they are discovered rather than invented discovered rather than invented .

n Principles are the only kind of content which represents represents "truth" "truth" in any significant way.

n It provides us with an understanding of the world aroundus, among us, and within us an understanding of how how things happen and why they happen the way they do things happen and why they happen the way they do .

n Therefore, principles are probably the most importantkind of content for us to include in the majority of our include in the majority of our instruction instruction . And it is usually helpful to learn how to apply learn how to apply the principles to new situations.the principles to new situations.



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- are constructed to give an explanation of explanation of phenomena phenomena (Stam, 2000).

According to Denzin (1970), there are threefunctions of a theory:

1.Permitting organization of descriptions,

2.leading to explanation, and

3. furnishing the basis for prediction of futureevents.

TheoriesTheories



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STIMULUSTIMULUS-RESPONSE THEORYESPONSE THEORY

Stimulus ResponseFreedom to

Choose

Self-awareness

Imagination

Independentwill

Conscience



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In a nutshell, theories:

- Tell us what we are doing

- Tell us why we do things

- Not how to do things

- It help us better understandthe process

- Will enable us to predictwhat is going to happen inthe future



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Th e Eleph an tTh e Eleph an tSi x b l i n d s ag e s w e r e sh o w n a nSi x b l i n d s ag e s w e r e sh o w n a ne l ep h a n t a n d m e t t o d i s cu s s t h e i re l ep h a n t a n d m e t t o d i s cu s s t h e i re x p e r i en c e. I t ' s w o n d e r f u l , sa ide x p e r i en c e. I t ' s w o n d e r f u l , sa idt h e f ir s t , a n e l ep h a n t i s l i k e at h e f ir s t , a n e l ep h a n t i s l i k e ar o p e : sl e n d e r a n d f l ex i b l e . N o ,r o p e : sl e n d e r a n d f l ex i b l e . N o ,n o , n o t a t a l l, s ai d t h e s ec o n d ,n o , n o t a t a l l, s ai d t h e s ec o n d , a n el e p h a n t i s l ik e a t r e e , a n el e p h a n t i s l ik e a t r e e ,st u r d i l y p l an t e d o n t h e g r o u n d . st u r d i l y p l an t e d o n t h e g r o u n d . N o n se n se , s ai d t h e t h i r d , a n N o n se n se , s ai d t h e t h i r d , a ne l ep h a n t i s l i k e a w a l l.e l ep h a n t i s l i k e a w a l l. I n cr e d ib l e, sa id t h e f o u r t h , a n I n cr e d ib l e, sa id t h e f o u r t h , a ne l ep h a n t i s a t u b e f i l le d w i t he l ep h a n t i s a t u b e f i l le d w i t hw a t er . W h a t a st r a n g e a n dw a t er . W h a t a st r a n g e a n dp i e ce m e a l b e as t t h i s i s, s ai d t h ep i e ce m e a l b e as t t h i s i s, s ai d t h ef i f t h . St r a n g e i n d ee d , sa id t h ef i f t h . St r a n g e i n d ee d , sa id t h esi x t h , b u t t h e r e m u s t b e so m esi x t h , b u t t h e r e m u s t b e so m eu n d e r l y i n g h a r m o n y. Le t u su n d e r l y i n g h a r m o n y. Le t u s

i n v e st i g a t e t h e m a t t e r f u r t h e r.i n v e st i g a t e t h e m a t t e r f u r t h e r.

Adapted from a traditional Hindu fable



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IMPORTANCE OF CONCEPTIMPORTANCE OF CONCEPT

A concept is aA concept is a mental abstraction mental abstraction which allowswhich allowsgeneralization generalization and the extension of knowledgeand the extension of knowledgefrom some known objects to others unknown.from some known objects to others unknown.

A concept is formed by taking a number ofA concept is formed by taking a number ofsimilar entit ies and deciding what makes themsimilar entit ies and deciding what makes themsimilar in an important way similar in an important way ..

Concepts areConcepts are bearers of meaning bearers of meaning , as opposed, as opposedtoto agents of meaning agents of meaning . A single concept can be. A single concept can beexpressed by any number of languages.expressed by any number of languages.



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Importance of conceptcontd Importance of conceptcontd

In other words concepts are essentiallyIn other words concepts are essentiallyhypotheses hypotheses that wil l become invalid, should theythat wil l become invalid, should theyfail to fi t in some critical way the empirical realityfail to fi t in some critical way the empirical realityit i s claimed they represent.it i s claimed they represent.

The word concept refers to a class of acts,The word concept refers to a class of acts,thoughts, activities, processes, or structures.thoughts, activities, processes, or structures.

In science its In science its concepts drive research concepts drive research ,,

steering inquiry according to the meaning steering inquiry according to the meaning of each.of each.



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Importance of conceptcontd Importance of conceptcontd

Concepts lead to new directionsConcepts lead to new directionsand new ideas throughand new ideas throughdisturbances or provocations in disturbances or provocations in usual thinking processes.usual thinking processes.

Concepts areConcepts are keys to change keys to change and improvement and improvement ..



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An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing

method, or a new organizational method inbusiness practices, workplace organization orexternal relations.

The minimum requirement for an innovation isthat the product, process, marketingmethod or organizational method must be new must be new (or significantly improved) to the firm.(or significantly improved) to the firm.

Defining Innovat ionefining Innovation(Based on Oslo Manual, 3rd edition, 2005)



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Innovation activities are all scientific,scientific,technological, organizational,technological, organizational,financial and financial and commercial commercial steps whichactually, or are intended to, lead to theimplementation of innovations.Innovation activities also include R&D Innovation activities also include R&D that is not directly related to thedevelopment of a specific innovation.

Defini ng Innovationcont defining Innovationcont d



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Innovationnnovat ion What is it?hat is it ?TheThe creation creation of new ideas/processesof new ideas/processes

which will lead towhich will lead to change change in anin anenterprises economic or socialenterprises economic or socialpotentialpotential [P. Drucker, The Discipline of Innovation , Harvard Business Review,Nov-Dec, 1998, 149]




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Innovation hasoccurred when anyaspect (e.g.capability, use) of aproduct, process orservice provides animproved solution to improved solution to a need a need .




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Innovation is the process ofconverting new ideas or inventionsinto new products and services that

improve efficiency, effectiveness or improve efficiency, effectiveness or quality of life quality of life .

Innovation is the viable viable and practical practical application of a meaningful, newconcept or invention concept or invention .




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The term innovation means a new wayof doing something. It may refer toincremental, radical, and revolutionary incremental, radical, and revolutionary

changes changes in thinking, products, processes,or organizations. A distinction is typicallymade between invention, an idea mademanifest, and innovation, ideas appliedsuccessfully. [Mckeown 2008]




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Rank Countr y Over allInnovation

InputsInnovation

Performance

1 South Korea 2.26 1.75 2.552 United States 1.80 1.28 2.16

3 Japan 1.79 1.16 2.254 Sweden 1.64 1.25 1.885 Netherlands 1.55 1.40 1.556 Canada 1.42 1.39 1.32

7 United Kingdom 1.42 1.33 1.37

8 Germany 1.12 1.05 1.09

9 France 1.12 1.17 0.96

10 Australia 1.02 0.89 1.05

11 Spain 0.93 0.83 0.95

12 Belgium 0.86 0.85 0.79

13 China 0.73 0.07 1.3214 Italy 0.21 0.16 0.24

15 India 0.06 0.14 -0.0216 Russia -0.09 -0.02 -0.16

17 Mexico -0.16 0.11 -0.42

18 Turkey -0.21 0.15 -0.55

19 Indonesia -0.57 -0.63 -0.4620 Brazil -0.59 -0.62 -0.51

Innovation index by country [Wikipedia, 2009]


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Innovation typically involves creativity creativity , but is notidentical to it : innovation involves acting on the : innovation involves acting on the creative ideas creative ideas to make some specific and tangibledifference in the domain in which the innovationoccurs. For example, Amabile et al. (1996)

propose:

"All innovation begins with creative ideas . . . We define innovation as the successful implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a creativity by individuals and teams is a starting point for innovation starting point for innovation ; the first is necessary but not sufficient condition for the second".



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} is an essential element ofinnovation

} is an ability or aptitude (basicallyinnate) which allows a person tothink of, dream up, visualize or

imagine new or unusual solutions toproblems

Defining CreativityDefining Creativity


G t d b F it PDF C t F it S ft


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Creativity is a mental and social processinvolving the generation of new ideas ideas orconcepts concepts , or new associations of the

creative mind between existing ideas orconcepts. Creativity is fueled by theprocess of either conscious or unconsciou s insight insight . An alternativeconception of creativeness is that it issimply the act of making something new.

Defining Creativi tycontd


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Creativityproducing work that is novel or original and appropriate

Creative Individualspeople whose works exert a significant effect upon

Views on Creativity (Gardner, 1993)Views on Creativity (Gardner, 1993)

Defining Creativi tycontd




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Creativity Creativity is typically used to refer to the act of producing act of producing new ideas, approaches or actions new ideas, approaches or actions , while innovation innovation is theprocess of both generating and applying such creative generating and applying such creative ideas in some specific context ideas in some specific context .

In the context of an organization , therefore, the terminnovation is often used to refer to the entire process bywhich an organization generates creative new ideas andconverts them into novel, useful and viable commercial

products, services, and business practices, while the termcreativity is reserved to apply specifically to thegeneration of novel ideas by individuals or groups , as a as a necessary step within the innovation process necessary step within the innovation process .

CREATIVITY VS. INNOVATIONCREATIVITY VS. INNOVATION




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Amabile and Shermaine Montefalco et al. (1996)suggest that:

While innovation innovation "begins with creative ideas,""...creativity by individuals and teams is a starting is a starting point for innovation point for innovation ; the first is a necessary butbutnot sufficientnot sufficient condition for the second.

Although the two words are novel, they go handin hand. In order to be innovative, employees In order to be innovative, employees have to be creative to stay competitive have to be creative to stay competitive .





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As Davila et al. (2006) commented:

"Often, in common parlance, the words

creativity and innovation are used interchangeably. They shouldn't be,because while creativity implies coming up with ideas, it's the innovation that innovation that "brings ideas to life "brings ideas to life " . . . that makes innovation the distinct undertaking it is."





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Innovation = (Creativity* Risk Taking)

THEREFORE THEREFORE




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} is a creative ideawhich is inherentlynovel in the legalsense that it may bepatentable

} the creation of newforms, compositions ofmatter, or processes

Defining Invent ionefining Invention




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A patentable invention: Anovel and useful product /

apparatus, machine,process, or composition ofmatter...

Which Invention Has theMost Patents?

Defining Invention contd

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An invention is a new configuration ,composition of matter, device, or process.Some inventions are based on pre- existing models or ideas . Otherinventions are radical breakthroughs which may extend the boundaries of

human knowledge or experience.

Defining Invention contd




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Invention vs. InnovationInvention vs. Innovation

Invention is the first occurrence ofan idea for a new product orprocess, while innovation is the first attempt to carry it out into practice "(Fagerberg, 2004: 4)




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Unlike invention, whichoften concerns a singleproduct or process,innovation often involvesa combination of productsand processes that allowthe successful translation

of new ideas into tangiblesocietal impact, [Krisztina Holly] .

Invention vs. InnovationcontdInvention vs. Innovationcontd

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From Invent ion torom Invent ion torom Invent ion torom Invent ion to

InnovationnnovationWhile inventiondepends upon

creativity , successfultechnologicalinnovation requiresint egrat ing newknowledge withmult iple businessfunctions .


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Dis c o v e r i e s v s . In v e n t io n s

Discovery Identification of a

biochemical pathway Identification of a new

species of plant Observation of a

phenomena

Invention Method of treating a

disease A chemical purified

from a new speciesof plant

Computer software


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Defining Research and Development (R&D)efining Research and Development (R&D)

R&D. Discovering new knowledge knowledge aboutproducts, process and services products, process and services , and thenapplying that knowledge to create new andimproved products, processes, and services thatfill the market needs.

Systematic activity Systematic activity combining both basic andapplied research applied research , and aimed at discoveringsolutions to problems solutions to problems or creating new good and good and knowledge knowledge . R&D R&D may result in ownership of result in ownership of

intellectual property intellectual property such as patents patents .


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Research and development Research and development is a phraseused to describe the activitiesassociated with the creation ordiscovery of new processes, methods,products and/or services and using thenewly discovered knowledge to fulfill amarket need or demand demand .

Successful Research & Development Successful Research & Development may lead to innovate new products.may lead to innovate new products.

Defining R&Dcont defini ng R&Dcont d




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A creat ive work undert aken on a systematic basisin order t o increase the stock of knowledge ,including knowledge of man, culture and society,

and the use of this stock of knowledge to devise new applicat ions .

The term research and experimentaldevelopment is used as synonymous to the termresearch and development and both areabbreviated by the expression R&D.

Defining Research and Development (R&D)efining Research and Development (R&D)(Based on OECDs Frascati Manual, 2002 edition)




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The term R&D covers three activit ies:basic research, applied research andexperimental development :

Basic research is experimental ortheoretical work undert aken primarily t oacquire new knowledge of the underlyingfoundation of phenomena and observablefacts, without any part icular applicat ion

or use in view.

Defining R&Dcont d

The main motivation is toThe main motivation is to expand man's expand man's knowledge knowledge , not to create or invent something., not to create or invent something.




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Applied research is also or ig inalinvest igat ion undertaken in order toacquire new knowledge. It is,however, directed primarily towardsa specif ic pract ical aim or object ive.

Defining R&Dcont d

The goal of the applied scientist is to The goal of the applied scientist is to

improve the human condition .improve the human condition .e.g., improve the energy efficiency ofhomes, offices, or modes of

transportation




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Ex perim ental development is systematicwork , drawing on existing knowledgegained from research and/ or pract icalexperience, which is directed to

producing new m aterials, products ordevices, to installing new processes,systems and services, or to improvingsubstant ially those already produced or

installed.

Defining R&Dcont d




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The basic crit erion f or d istinguishing R&D fromrelated activities is the presence in R&D of anappreciable element of novelt y and the resolut ionof scienti f ic and/ or technological uncert aint y.

A prot otype is an or iginal model constructed toinclude all the technical characterist ics andperform ances of t he new product . The design,construction and test ing of prot otypes normallyfalls with in the scope of R&D.

The boundaries of R&D: Clarif icat ionof specif ic cases

(Based on OECDs Frascat i Manual




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The construct ion and operat ion of a pilot plant isa part of R&D as long as the pr incipal purposesare to obtain experience and t o compileengineering and other data.

Those elements of industrial design work, whichinclude plans and drawings aim ed at definingprocedures, technical specificat ions andoperational f eatures necessary to t he concept ion,development and manufacturing of new productsand processes.

The bou ndaries of R&D: Clarif ication of specific casescont d

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Defining TechnologyDefining Technology The process used to change inputs into outputs .

The application of knowledge to perform work . The theoretical and practical knowledge, skills and

artifacts that can be used to develop products as well as their production and delivery system .

The technical means people use to improve theirsurroundings.

The application of science, especially to industrialor commercial objectives; the entire body ofmethods and materials used toachieve such objectives.

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Defining Technologycontd

The practical implementation of learning andknowledge by individuals and organizationsto aid human endeavor.

The knowledge, products, process, tools andsystems used in the creation of goods or inthe provision of services.

p y



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END OF SESSIONND OF SESSION

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1-Intro to Innov Product Mgt- Part 2

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