Gestão de Inovação e

Design Thinking/Innovation
Joana Mendonça
Management and Design Thinking Joana.mendonca@tecnico.ulisboa.pt
2023/24
Who are we?
 Associate professor at the Department of Engineering and
Joana Mendonça 2023 Management, IST, U. Lisbon

2021 President – National Innovation Agency-ANI (www.ani.pt)

2020 Associate professor at the Department of Engineering and

Management, IST, U. Lisbon

2017 Assistant professor at the Department of Engineering and

Management, IST, U. Lisbon

Assistant to the Minister for Economy, for Innovation,

Technology and Science

https://web.tecni
co.ulisboa.pt/joa
Research Appointment, IN+, Instituto Superior Técnico,
U. Lisbon, and IRGC 2013
na.mendonca/ind
ex.html Deputy Director at Directorate for Education and Science Statistics,
Ministry for Education and Science

Assistant of the Secretary of State for Science,

Technology and Higher Education

PhD in Engineering and Industrial Management

Master in Engineering Policy and Management of Technology
Diploma in Chemistry from Lisbon University
2009
3
4
Diogo Gonçalves

• BSc. - Social Psychology;

• MSc. - Data Science applied to Marketing; PhD
Candidate - Behavioral Economics;
• Invited Professor - DEG/IST;
• Founder of Nudge Portugal - Applied Behavioral
Science.
Rui Patricio

Rui Patrício is an invited professor at IST.

Rui coordinates the Strategic Design and Innovation Lab (SDI.Lab) and the MSc in Marketing
and Innovation at IADE - Faculty of Design, Technology and Communication - Universidade
Europeia, Lisbon.
His research interests lie at the intersection between innovation management, gamification,
and design thinking.
He conducted applied research on strategic design approaches to innovation in global firms,
resulting in publications in journals like Creativity and Innovation Management and the
European Journal of Innovation Management

Linkedin: https://pt.linkedin.com/in/ruipatricio
Twitter: https://twitter.com/RuiPatricio9
 Mondays 15h00-17h00
Office hours
(scheduled in advance)
Course Plan
Module 1
Strategy & Innovation

Module 2
Design Thinking Principles & Tools

Module 3
Innovation Challenge
Innovation Mindset

Design Thinking Overview

Inspire
Ideate
Implement
Pitch

DT and Organization Change

 Course Evaluation:

4 Individual Quizzes (30%)

Course
Evaluation
Design Thinking Project– in group (40%)

Final Pitch – group (30%)

11
 Quizz 1- September 25th

Quizz 2- October 9th

Evaluation Quizz 3- October 16th

Dates
Quizz 4- October 23rd (Final Quizz)

Final Pitch Pitch - October 25, 26, 27th

12
 Mondays:
Introduction of concepts

Class
Methods and Tools
participation

Aplication Exercise

13
 Designing for Growth: A manager’s design
thinking toolkit: Jeanne Liedtka and Tim
Ogilvie 2011 COLUMBIA UNIVERSITY PRES

Change by Design: How Design Thinking

Bibliography Transforms Organizations and Inspires
Innovation: Tim Brown 2009HarperCollins

Democratizing Innovation: Eric von

Hippel 2055 MIT Press
 INOVAÇÃO
From the Latim innovare: “renovate; make new; change”
"An invention is an idea, a sketch or model for a new or improved device, product, process or
system...
An innovation in the economic sense is accompanied with the first commercial transaction involving
the new product, process, system or device, although the word is used to describe the whole
process."
Christopher Freeman, The Economics of Industrial Innovation, (1982)

"Invention is the creation of a Invention is the conversion of cash into ideas.

new device or process... Innovation is the conversion of ideas into
Innovation is the introduction of
change via something new."
cash.
William B. Rouse, Strategies for
Phonograph
Thomas Edison's
Innovation, (1992)
Canadian patent no. 9282

Joana Mendonça 16
 Radical and Incremental Innovation
Radical innovations create major disruptive changes - Schumpeter, 1934

Examples of Radical Innovations:

Products: Video reader/recorder; CDs; DVDs
Processes: introduction of robots in manufacturing; PCs in banking; hubs in aero transport

1º VCR – 1972

9/4/23 Joana Mendonça 17

 Radical and Incremental Innovation
Incremental innovations continuously advance the process of change -
Schumpeter, 1934

Examples of Incremental Innovations:

Products: successive generations of microprocessors in PCs
Processes: successive generations of microprocessors in control of industrial processes

Microprocessador 486

Microprocessador 486

9/4/23 Joana Mendonça 18

Types of Innovations
• Introduction of new products.
• Introduction of new methods of
production.
• Opening of new markets.
• Development of new sources of supply
for raw materials or other inputs.
• Creation of new market structures in an
industry.
Schumpeter, 1934
 Product and Process Innovation
Product Innovation: development of new prototypes and products, changes in design
of existing products; use of new materials and components in the production of
established products.
Product Technology Innovation: implementation and/or commercialization of
a new product of with improved performance or attributes
Process Innovation: development and implementation of a new or significantly
improved process or production method.
Process Technology Innovation: implementation or adoption of
significantly improved production or delivery methods, which may involve
changes in equipment, in human resources, in work methods, or a
combination of these
(OCDE 1997)
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 Marketing Innovation
• Marketing innovation is the
• implementation of a marketing method not previously
implementation of a new
used
marketing method involving
significant changes in product • significant changes in product design
design or packaging, product
• introduction of new sales channels.
placement, product promotion
(Oslo Manual, OCDE 2005)
or pricing.

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 Organizational Innovation
• Organizational innovation is the • new methods for organizing routines and procedures
implementation of a new
organizational method in the
firm’s business practices, • new methods for distributing responsibilities and
workplace organization or decision making among employees for the division of
external relations work within and between firm activities

• new ways of organizing relations, establishment of new

types of collaborations, new methods of integration
with suppliers, and the outsourcing or subcontracting
for the first time of business activities
(Oslo Manual, OCDE 2005)
9/4/23 22
Advantages of Innovation
 How does Innovation happen?
Where does Innovation come from?
Society Trends and Market Opportunities
Older population

Rise of the middle class in developing countries

Greater ethnic and cultural diversity in urban centers

Greater religious diversity; more secular vs. more religious societies

Changing role of women in society

Convergence in access to higher education and codified/embodied knowledge

Increasingly important role played by ICTs and the media in everyday life

Joana Mendonça
Evolution of Innovation Models
 Sources of Innovation
Market pull: technology advances made in the sequence of identified market need,
and only secondarily motivated by discoveries of technical or scientific nature

Technology-push: technological advances driven mainly by technical or scientific

discoveries, only secondarily orientated to the market specific needs

"series of studies showing that the sources of innovation vary greatly... test some
implications of replacing the manufacturer-as-innovator assumption with the view of the
innovation process as predictably distributed across users, manufacturers, suppliers and
others.”
Eric von Hippel, The Sources of Innovation, Oxford University Press (1988)
 • Users, firms or individuals, are important
for the innovation process, and have an
active role in the development of new
products and services

• Eric von Hippel, The Sources of

Innovation,1988
User Innovation • Many times, users create or modify
products and services in order to fulfil their
own needs, and it is not uncommon that
these innovations are made freely available
to other users and even to producers
• (Harhoff et al., 2003; Oliveira and von
Hippel, 2010)

29
User Innovation
• Gary Fisher had a passion for
biking off-road, needed a bike to
do it and developed the first
mountain bike (1979)
User Innovation
• Tim Berners-Lee invented the
World Wide Web in order to
exchange data with his physicist
colleagues all around the world
(1989)
User Innovation
• ”(…)I grabbed one of the Crocs,
pulled some buttons, rhinestones
and fabric out of the sewing kit, and
stuck them in the holes. Lexie said,
'Mum, I love that!’”
• Sheri and Lexie, then seven, spent
the rest of the day filling holes in the
family's 12 pairs of Crocs. Every look-
alike shoe was suddenly unique.
32
 User Innovation
Steps Observed in the User Development of an Innovation

Users as Innovators 25

Primary Actor User | | Manufacturer

Innovation Identify Research/ Build Apply/Commercialize TIME

Process Need Development Prototype Diffuse Innovation
Stage Diffuse Innovation
Stage

FIGURE 2-2. Steps Observed in the User Development of an Innovation

The User-Dominated Innovation Process

We have now found three innovation Source: Eric von Hippel,

categories The Sources
in which it isoftypically
Innovation,1988
the
product user, not the product manufacturer, who recognizes the need, solves
the problem through an invention, builds a prototype, and proves the proto-
type's value in use. If we apply this finding to "stages" of the technical innova-
tion process, we find-somewhat counterintuitively-that the locus of almost
 134 Chapter 10

Only lead user

prototypes available

Commercial versions of product available

User
Number
Innovation of users
perceiving
need

Time

• user
Figure 10.1innovation suggests an alternative to mass customization-
manufacturing
Innovations process
by lead usersthat seeksequivalent
precede to tailor products to specific
commercial users while
products.
maintaining the economies of large-scale production

lead user-generated innovations? (See figure 10.1.) It turns out that the
answer differs
Source: Eric depending
von Hippel, on
Democratizing whether the lead users sought are at the
Innovation,2005 34 lead-
ing edge of “advanced analog” fields or at the leading edge of target mar-
kets. Searching for the former is more difficult, but experience shows that
the user-developed innovations that are most radical (and profitable)
 Product Life Cycle

Introduction/Emergence: development of
product or service, implementation of
production process, commercialization

Growth: products adopter by the market

Maturity: the market is saturated and

growth rates decline

Decline: gradual substitution of new

products/services

Source: William G. Howard, Jr. and Bruce R. Guile, Profiting from Innovation, (1992)

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 Innovation Dynamics
Emergence of a Dominant Design
Rate of innovation introduction

Product Innovation

Process Innovation

Introduction Maturity Decline

Adapted from Utterback (1984)

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 Innovation Diffusion
Diffusion is the process by which an innovation is spread accross time

“S” curve of Diffusion Number of accumulated adoptions

Number of
users
Frequency of adoptions

Tempo
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What is Design Thinking?

Methodology for generating innovation and solving

problems, based on the discovery and in-depth
knowledge of user needs
 Innovation through Design Thinking

• Design thinking produces solutions with the user and their context always in
mind, increasing the likelihood that your user will be happy with your solution.
• Design thinking is a proven and repeatable problem-solving methodology that
anyone can employ to achieve successful results.
• Design thinking is called "design thinking" because it represents how designers
go about solving problems.
• While you do not need to be an artist or a designer to do design thinking,
design thinking can benefit from visual techniques such as sketching and
storyboarding.

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 Innovation through Design Thinking
Design thinking is a user-centered, creative, and
collaborative problem-solving methodology.
• A problem might require many different types of expertise to solve, and many iterations to
target the best solution
• Teams practicing design thinking are more powerful when members have a diverse set of
perspectives and areas of expertise.
• Design thinking requires that all members understand user research to uncover the real
needs and desires of the target market.
• Design thinking requires that you place the needs of the user and your understanding of
their problem at the center of your work. Then, grounded in research and fueled by
creativity, teams come up with ideas, create models of those ideas, and critique those ideas
in a cycle of iteration that moves toward a solution.
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