BUSI1327

Innovation in Competitive Environments

Lecture 1: Introduction to the Module

Module Leader
Dr Katharina De Vita | Senior Lecturer in Creativity and Innovation
K.DeVita@greenwich.ac.uk
The Module Team

Module Leader Module Tutor

Dr Katharina De Vita Dr Lucien von Schomberg
K.DeVita@greenwich.ac.uk L.vonSchomberg@greenwich.ac.uk

Tutorial 01-01 Tutorial 01-03

Today’s Lecture
Examples
1. Introduction to the module
▪ Module Timetable
▪ Learning Mode & Resources
▪ Expectations
▪ Key Themes
▪ Coursework

2. Introduction to the topic

▪ What is Innovation?
▪ Innovation and Invention
▪ Why do Organisations innovate?
▪ Types of innovations

3. Close
▪ Tutorial Preview
▪ Next Week
Learning outcomes
By the end of this lecture, you should be able to:

▪ Understand the format, delivery mode and key themes of this module.

▪ Understand how innovation is defined and how it differs from invention.

▪ Explain why organisations innovate.

▪ Describe different innovation typologies with respect to specific examples.

Module Timetable
Weekly Lecture
▪ Thursdays, 10-11am in QA180
Weekly Tutorial
▪ Thursdays, 11-12pm (Tutorial 01-01) in QA139 with Katharina
▪ Thursdays, 1-2pm (Tutorial 01-03) in Devenport 109 (Belfast) with Lucien

Extra Sessions
▪ 23 February 2023, 5-6pm in KW002: Screening of “The Apprentice” (Practice episode for the
assessment and pre-requisite for tutorial 7)
▪ 02 March 2023, 4-5pm in KW002: Screening of “The Apprentice” (Episode for the assessment)
Learning Mode

Activity Hours Overall percentage of total

Scheduled teaching 24 16%

Guided Independent Study 126 84%

Total 150 100%

12 Lectures + 12 Tutorials represent only 16% of your study time!

You are expected to carry out 126 hours guided independent study
– that’s 10.5 hours each week in Term 2!
Resources
Expectations … on you
Arrive on time. Take notes. Come prepared. Communicate
professionally.

Engage in Ask questions. Keep your phone Listen when

discussions. in your bag. others are talking.
Expectations … on us

Organisation and management Assessment and feedback

▪ Weekly release of material on moodle. ▪ Verbal feedback in class from tutors and peers.
▪ Email response from your tutor within ▪ Written feedback on your summative
2 working days. assessment, including in-text comments.

Teaching and engagement with learning Resources and delivery

▪ Research-informed teaching. ▪ Relevant, diverse and novel module contents.
▪ Guest lectures by experts. ▪ Innovative and fun delivery.
Key Themes

Introduction (Lecture 1)

Theme I: Innovation and Individuals (Lecture 2, 3, 4)

Theme II: Innovation and Organisations (Lecture 5, 6, 8) & Coursework Clinic (Lecture 7)

Theme III: Innovation and Ecosystems (Lecture 9, 10, 11)

Wrap up (Lecture 12)

Coursework Information
Weighting Learning
Assessment Deadline Maximum length Marking type
out of 100%* Outcomes
Individual 03.04.2023, 100% 3,000 words stepped 1, 2, 3
Report 11.30pm numerical

The overall pass mark for this module is 40%.

➢ During the tutorial, you will be discussing the coursework in greater detail.
What is Innovation?

Quiz: What does innovation mean to you?

Go to www.menti.com and use the code 1132 7565

1. Grab your phone 2. Go to www.menti.com 3. Enter the code 1132 7565

What is Innovation?
Defining Innovation
▪ The word ‘innovation’ comes from the Latin, innovare, and is all about change.
▪ Perhaps a more helpful definition in terms of what we actually have to manage is that innovation is
the process of creating value from ideas.

Simple Definition
➢ Creating value from ideas
…. commercial value
…. and social value
Innovation and Invention
▪ Innovation is concerned with the commercial and practical application of ideas or inventions.
Invention, then, is the conception of the idea, whereas innovation is the subsequent translation of the
invention into the economy.
▪ Innovation = theoretical conception + technical invention + commercial exploitation
▪ Innovation is the management of all activities involved in the process of idea generation, technology
development, manufacturing and marketing of a new (or improved) product, service, or process.

Read further: Trott, 2017, p.15

Why do Organisations innovate?
▪ Innovation helps organisations grow/survive.
▪ Innovation keeps organisations relevant.
▪ Innovation helps organisations differentiate themselves and gain competitive
advantage.
▪ Innovation has a positive impact on company culture as it increases the ability to acquire,
create and make the best use of competencies, skills and knowledge.
▪…
A typology of innovations
Type of Innovation Example

Product Innovation The development of a new or improved product

Process Innovation The development of a new manufacturing process such as Henry Ford's
invention of the world's first moving assembly line.
Organisational Innovation A new venture division; a new internal communication system;
introduction of a new accounting procedure
Management Innovation TQM (Total Quality Management) systems; BPR (business process re-
engineering); introduction of SAPR3*
Production innovation Just-in-time (JIT) manufacturing system; new production planning
software, e.g. MRPII; new inspection system
Commercial/marketing New financing arrangements; new sales approach, e.g. direct marketing
innovation
Service innovation Internet-based financial services

* Note: SAP is a German software firm and R3 is an enterprise resource planning (ERP) product.

Source: Adapted from Trott, 2017

Product Innovation

iPhone launch in 2007

Source:
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3Dx7qPAY9JqE4&psig=AOvVaw3KgWhlqYZvv
SXfxtWhVhRl&ust=1642416245239000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCIi5srqLtvUCFQAAAAAdAAAAABAD
Process Innovation
Henry Ford's invention
of the world's first
moving assembly line.

The moving assembly line

allowed for the work to be
taken to workers rather
than the worker moving to
and around the vehicle.
Organisational Innovation
Samsung Electronics’ latest initiative
puts user experiences at the forefront
of product design. The company
launched the Samsung Design
Innovation Center (SDIC) to help
foster innovations and designs that
better align with, and enhance,
experiences for consumers.

Source: https://design.samsung.com/global/contents/sdic/
Management Innovation

TQM can be described as a

management system for a
customer-focused
organisation that involves all
employees in continual
improvement. It uses
strategy, data, and effective
communications to integrate
the quality discipline into the
culture and activities of the
organization.
Production Innovation
The just-in-time (JIT)
inventory system is a
management strategy that
aligns raw-material orders
from suppliers directly with
production schedules.
Companies employ this
inventory strategy to
increase efficiency and
decrease waste by receiving
goods only as they need
them for the production
process, which
reduces inventory costs.
Commercial/Marketing Innovation
IKEA has put
customer-experience
at the heart of their
marketing strategy.
For example, they
launched the
Catalogue app, which
not only gave users
access to the
company’s inventory,
but via augmented
reality, actually
allowed them to view
how items would look
in their home spaces.

Source: https://www.linkdex.com/en-gb/inked/innovative-marketing-strategies-examples/
Service Innovation
Nike provides fast service for busy
shoppers. The Speed Shop allows
customers to order shoes online
and try them on in store. Customers
use a special entrance to find their
shoe locker, which is unlocked via
smartphone. After trying the shoes
on, they can check out on mobile
without having to interact with a
person.

Source: https://www.forbes.com/sites/blakemorgan/2019/10/21/20-fresh-examples-of-customer-
experience-innovation/?sh=2b45c6c7c41c
A typology of innovations Reading: Trott, 2017, p.17-18

Type of Innovation Example

Product Innovation The development of a new or improved product

Process Innovation The development of a new manufacturing process such as Henry Ford's
invention of the world's first moving assembly line.
Organisational Innovation A new venture division; a new internal communication system;
introduction of a new accounting procedure
Management Innovation TQM (Total Quality Management) systems; BPR (business process re-
engineering); introduction of SAPR3*
Production innovation Just-in-time (JIT) manufacturing system; new production planning
software, e.g. MRPII; new inspection system
Commercial/marketing New financing arrangements; new sales approach, e.g. direct marketing
innovation
Service innovation Internet-based financial services

* Note: SAP is a German software firm and R3 is an enterprise resource planning (ERP) product.
Classifying Innovation Types

The type of innovation is dependent on two factors:

1. Market – does the innovation create a new market, or address the existing market?
2. Technology – does the innovation use a new technology or an existing technology
Classifying Innovation Types
New

The type of innovation is dependent on two factors:

1. Market – does the innovation create a new market, or address the existing market?
Market

2. Technology – does the innovation use a new technology or an existing technology

Existing

Existing New
Technology
Classifying Innovation Types

Incremental Innovation is the continuous

improvement of existing products or services to
New

provide more value to our existing market. The

improvements are based on using existing
technology and are directed at the existing
Market

market.
Existing

In the automobile industry, the improvements

Incremental
made each year to the newest model of car are
Innovation
incremental innovations. No new markets are
formed, and existing technology is used to make
Existing New the car better.

Technology
Classifying Innovation Types

Architectural Innovation occurs when new

products or services use existing technology to
Architectural
New

create new markets and/or new consumers that

Innovation
did not purchase that item before.
Market

For example, the smart watch used existing cell

phone technology and was repackaged into a
Existing

watch. This opened up a new market of

Incremental
purchasers by repackaging an existing
Innovation
technology.

Existing New
Technology
Classifying Innovation Types

Disruptive Innovation occurs when a new

product or service engages the existing market
Architectural
New

with a new technology. Firms introduce offerings

Innovation
that are so unique and superior that they threaten
to replace traditional approaches.
Market

The iPad has proved to be a disruptive

Existing

innovation since its introduction by Apple in 2010.

Incremental Disruptive
Many individuals quickly abandoned clunky
Innovation Innovation
laptop computers in favour of the sleek tablet
format offered by the iPad.
Existing New
Technology
Classifying Innovation Types

Radical Innovation occurs when new products

or services are developed using new technology
Architectural Radical
New

that open up new markets.

Innovation Innovation
For example, the airplane represents a radical
Market

innovation. This radical new technology opened

up a new form of travel, invented an industry, and
Existing

a whole new market.

Incremental Disruptive
Innovation Innovation

Existing New
Technology
Learning outcomes
Now, you should be able to:

▪ Understand the format, delivery mode and key themes of this module.

▪ Understand how innovation is defined and how it differs from invention.

▪ Explain why organisations innovate.

▪ Describe different innovation typologies with respect to specific examples.

Tutorial Preview
Part I Part II

Lecture Recap Coursework Guidance

▪ What is innovation? ▪ Individual Report
▪ What is the difference between innovation and
invention?

▪ Why do Organisations innovate?

▪ What are the different types of innovation?
Date Session Title

▪Introduction
Overview of weekly topics (TBC)
19.01.2023 Lecture 1 Introduction to the module – Dr Katharina De Vita
Theme I: Innovation and Individuals
26.01.2023 Lecture 2 Individual creativity – Dr Katharina De Vita
02.02.2023 Lecture 3 Creativity, innovation, and self-leadership – Dr Lucien von Schomberg
09.02.2023 Lecture 4 Innovating in teams – Dr Katharina De Vita
Theme II: Innovation and Organisations
16.02.2023 Lecture 5 Formal organisational structures to support innovation – Dr Katharina De Vita
23.02.2023 Lecture 6 Informal networks to foster innovation – Dr Riccardo De Vita
02.03.2023 Lecture 7 Coursework clinic – Dr Katharina De Vita
09.03.2023 Lecture 8 Promoting innovation through organisational culture – Dr Katharina De Vita
Theme III: Innovation and Ecosystems
16.03.2023 Lecture 9 Practising Open Innovation in Living Labs – Dr Katharina De Vita
23.03.2023 Lecture 10 Fostering digital platform innovation – Dr Katharina De Vita
30.03.2023 Lecture 11 Embracing Innovation Ecosystems – Dr Katharina De Vita
Wrap up
06.04.2023 Lecture 12 Innovation career pathways – Dr Katharina De Vita
Questions,
Comments,
Concerns?
Dr Katharina De Vita
Module Leader for BUSI1327 Innovation in Competitive Environments
K.DeVita@greenwich.ac.uk
References
Trott, P., 2017. Innovation management and new product development. Pearson education.