Course Description:: It Innovation & Enterpreneurship

Course Description:
IT INNOVATION & ENTERPRENEURSHIP
Course Code : IST 4078
Lecturer : A. Maina
Lecture 10:1 Innovation Capabilities

Lecture 8-2: Innovation capabilities
INNOVATION AND DIFFUSION OF

TECHNOLOGY IN PRODUCTS AND
SERVICES
2
IST4078: IT Innovation & Entrepreneurship : Instructor _ Ann.Maina
RECAP
 What is innovation?
 Can be viewed as the application of better solutions that
meet new requirements, unarticulated needs, or existing
market needs.
 Innovation Generates value to the world its not just an idea
 Where do innovative ideas come from?
 Local settings: cross-professional teams, creative
individuals, boundary-spanning activities
 Global networks
 Open innovation
 Global markets for Intellectual Property
3
 Creative destruction (Shumpeter, 1942):

 when innovative solutions are introduced by
entrepreneurs, undermining the current practice in
the economy, and thereby moving existing
products, production methods and even companies
of business.
 Entrepreneurial practices of supporting
innovation serve as catalyst for building the
economy.
 Frequency or infrequency of innovative ideas –
ups and downs of economic waves and
cyclical nature of economic development. 4
Introduction
 Innovation capability is a key factor for the future
competitiveness of a company especially in this era
of faster competition and digitization, companies
must increase their innovation capability.
 In the face of digitalization, companies need a process in
which to move from brainstorming and idea
generation to the systematic development of ideas for
distribution.
 They need to develop innovation strategies that
enable them to initiate and implement innovation
projects that differ greatly in nature, speed and
degree of innovation.
5
 In reference to resource-based theory of the firm , A different

understanding of a firm is as a collection of resources and capabilities
(things the firm can do especially well).
 Resources can cover employees, offices, machines and products, but
also less tangible things such brand (Apple, Google), vision and
market research.
 Where resources are appropriately combined, they make organizational
capabilities.
 If an organization combines some talented people and learning
resources with some funding for innovation, then they might have an
organizational capability to innovate quickly.
 Where those resources and capabilities are:
i. Valuable (allow the firm to exploit opportunities or neutralize
threats in its external environment)
ii. Rare (possessed by few, if any, current and potential
competitors) 6
What is innovation capability?

 Innovation Capability?
 firm's ability to identify new ideas and transform them into
new/improved products, services or processes that benefit
the firm.
 It can also be defined as the ability of a company to
exploit the individual creativity of its employees by
creating social environments to develop ideas and
implement innovations of different degrees of
innovation.
 Innovation capability is an essential prerequisite for
efficient idea management, innovation management,
and the implementation of disruptive innovations. 7
Innovation capability
 The innovation process can be slow and
cumbersome when a company’s ability to
innovate is low. However, the same process can
be extremely efficient if the company is highly
innovative.
 Companies with a low innovation capability
often struggle with internal innovation barriers.
 Q. How do these barriers work and how can we
implement innovations more efficiently?
8
The innovation culture;

Q. What are the effects of hidden innovation
barriers and how you can overcome them.
Q. Which factors of the innovation culture
influence a company’s ability to innovate
Q. What are the different degrees of
innovation capability that enable companies
to implement different types of innovation
Refer to; among other materials;
 https://innolytics-innovation.com/innovation-
capability/
9
Innovation management methodology

(O’Sullivan and Dooley, 2009):
1. Understand requirements and define

goals
2. Engage users and model processes
3. Create actions and empower teams
4. Develop migration plan
5. Implement actions and monitor results
10
The Technology Innovation Life Cycle

Innovation process steps:
 Idea generation (problem analysis)
 Idea evaluation
 Project planning
 Product development
 Testing
 Launching the product into the marketplace
11
The Technology Innovation Life Cycle
 Stages in the technology innovation lifecycle:

 Diagnose: identify and evaluate new ideas for
products and processes

 Develop: the idea is transformed through
planning and developing into a viable product or

process
 Deploy: planning the migration and roll-out.
 Roll out: the process of introducing the new

product to the market or employing the new or
improved process in particular areas of the
business. 12
Diffusion of Innovations
 Diffusion: the process by which an innovation is
communicated through certain channels over time
among the members of a social system.
 The social system constitutes a boundary within
which an innovation diffuses in two ways:
 Through the norms establishing behaviour
patterns
 Through opinion leadership (the degree to which
an individual is able to influence informally other
individuals’ attitudes or overt behaviour)
13
 The Roger’s Diffusion of Innovation Paradigm
 The Individual Innovativeness
Theory: the rate of adoption depends on

the degree of innovativeness of an
individual or other unit.
 The Theory of Perceived Attributes:
there are five attributes of the innovation

that determine the rate of adoption and
success: relative advantage; compatibility;
complexity; trialability; observability.
14
The Roger’s Diffusion of Innovation Paradigm
 The Rate of Adoption Theory: an
innovation goes through a period of slow,
gradual growth before a period of speedy
and significant growth.
 The Innovation Decision Process
Theory: Diffusion is the mental process
through which an individual passes through
five distinct stages: knowledge;
persuasion; decision; implementation;
confirmation.
15
Figure : Five categories of innovations (everett rogers)
How innovation is
adopted interms of
speedof adoption
Sequence of adoption vs speed of adoption
•https://www.youtube.com/watch?v=kxVeLlTEgtU
•https://www.youtube.com/watch?v=9QnfWhtujPA 16
Figure : Discontinuous
technology adoption, p. 108.
Based on Moore (2002), The
Revised Technology Adoption
Life Cycle.
17
Managing Innovation
 The Management of Uncertainty
 Managing (in) Networks
 Managing Integration
 The Contrary Forces of Innovation
 Innovation Investments
18
Summary
 Innovation is based on activities with high
uncertainty, often involving a high number of
actors in developing, producing and finding use
for the new product or service.
 Incremental innovation is more often successful
than radical innovation.
 As the company grows and matures, the matter
becomes one of maintaining the entrepreneurial
spirit.
19
Next Lesson…
Start ups
.
 END
ANY QUESTIONS
OR COMMENTS?
21

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Course Description:

IT INNOVATION & ENTERPRENEURSHIP

Course Code : IST 4078

Lecture 10:1 Innovation Capabilities

INNOVATION AND DIFFUSION OF

 Creative destruction (Shumpeter, 1942):

 In reference to resource-based theory of the firm , A different

What is innovation capability?

The innovation culture;

Innovation management methodology

1. Understand requirements and define

The Technology Innovation Life Cycle

The Technology Innovation Life Cycle

 Stages in the technology innovation lifecycle:

products and processes

planning and developing into a viable product or

 Roll out: the process of introducing the new

Theory: the rate of adoption depends on

there are five attributes of the innovation

Sequence of adoption vs speed of adoption

 Managing (in) Networks

 The Contrary Forces of Innovation

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