BUSS6049

Managing Innovation

Week 1

The Innovation Imperative, and Social

Innovation
 Learning Outcome

1. Explain the meaning of innovation

2. Understanding the dimensions and models of innovation
3. Understanding the meaning of innovation in a social
context
4. Explain why entrepreneurs need social innovation
 Outline

1. Innovation Matters
2. Innovation and Entrepreneurship
3. Innovation Isn’t Easy!
4. Managing Innovation and Entrepreneurship
5. Dimensions of Innovation: What Can We Change?
6. A Process Model for Innovation and Entrepreneurship
7. What, Why, and When: The Challenge of Innovation Strategy
8. What Is Social Innovation?
9. Different Players
10. Motivation: Why Do It?
11. Enabling Social Innovation
12. The Challenges of Social Entrepreneurship
INNOVATION MATTERS
 1

Innovation Matter

Innovation does make a huge differenc to organization of all

shapes and size. The logic is simple: if we don’t change what we
offer the world (product and services) and how we create and
deliver them, we risk being overtaken by others who do”

One person’s problem is another’s opportunity and the nature

of innovation is that it is fundamentally about
entrepreneurship. The skill to spot opportunities and create
new ways to exploit them is at the heart of the innovation
process
On the plus side innovation is also strongly associated with
growth. New business id created by new ideas, by the process
of creating competitive advantage in what a firm can offer.
 INNOVATION AND
ENTREPRENEURSHIP
 2

Innovation and Entreprenuership

Definition of Innovation.....
Innovation is the specific tool of entrepreneurs, how they exploit change as an
opportunity for a different business or service. It is capable of being presented
as a discipline, capable of being learned, capable of being practised.
(Definition by Peter Drucker)

Definition of Entreprenuership .....

The capacity and willingness to develop, organize and manage a business
venture along with any of it’s risks in order to make a profit. The most obvious
example of entrepreneurship is the starting of new businesses.
(Definition in businessdictionary.com)
 Cont...

We use this lens to look at managing innovation and entrepreneurship. We’ll

use three core concepts:

1 Innovation
As a process which can be organized and managed, whether in a star-up venture or in
renewing a 100-years-old business

2 Entrepreneurship
As the motive power to drive this process through the efforts of passionate individuals,
engaged teams and focuses networks

3 Creating Value
As the purpose for innovation, whether expressed in financial terms, employment or
growth, sustainability or improvement of social welfare
INNOVATION ISN’T EASY!
 3

Innovation Isn‘t Easy!

Coming up with good ideas is what human being are good at – we have
this facility already fitted as standard equipment in our brains! But taking
those ideas forward is not quite so simple, and most new ideas fail.

Many SMEs fail because they don’t see or recognize the need for change.
They are inward looking, too busy fighting fires and dealing with today’s
crises to worry about storm clouds on the horizon

One problem for successful companies occurs when the very things which
helped them achieve success – their ‘core competencies’ become the things
which make it hard to see or accept the need for change
MANAGING INNOVATION AND
ENTREPRENEURSHIP
 4

Managing Innovation and

Entrepreneurship

There have been many attempts to answer the question of whether

we can manage innovation. Researchers have looked at case
examples, at sectors, at entrepreneurs at big firm and small firms, at
success and failure. Practising entrepreneurs and innovation managers
in large business have tried to reflect on the ‘how’ of what they do.
The key message come from the world of experience.
The key message from this knowledge base are that successful
innovators
• Explore and understand different dimension of innovation
• Manage innovation as a process
• Create condition to enable them to repeat the innovation trick (building capability)
• Focus this capability to move their organization forward (innovation strategy)
• Build dynamic capability (the ability to rest and adapt their approaches in the face of a
changing environment)
DIMENSIONS OF INNOVATION:
WHAT CAN WE CHANGE?
 5

Dimension of Innovation:
What Can We Change?

Innovation can take many forms but we can map the option along four
dimension, as show in table 1.3
 Cont…

Some examples of paradigm

innovation
A PROCESS MODEL FOR
INNOVATION AND
ENTREPRENEURSHIP
 6

A Process Model For Innovation

and Entrepreneurship

Innovation is interpreted as a process of a series of extended activities. There

are four major steps of the entrepreneurial process model
• Recognizing the opportunity
• Finding the resources
• Developing the idea
• Capturing value
 WHAT, WHY, AND WHEN: THE
CHALLENGE OF INNOVATION STRATEGY
 7

What, Why, and When: The

Challenge of Innovation Strategy

Building a capability to organize and manage innovation is a great

achievement, but unless that capability is pointed in a suitable direction the
organization risks being all dressed up with nowhere to go!

For entrepreneurs starting a new venture the challenge is even greater:

without a clear sense of direction, a vision you can share with others to
excite and focus them, the whole thing may never take off.
Cont…
Cont…
WHAT IS SOCIAL INNOVATION
 8

What is Social Innovation

Definition of Social Innovation

Social innovation is the process of developing and deploying effective

solutions to challenging and often systemic social and environmental
issues in support of social progress.

Social innovation is not the prerogative or privilege of any organizational

form or legal structure. Solutions often require the active collaboration of
constituents across government, business, and the nonprofit world.

By: Soule, Malhotra, Clavier

 Cont…

Key characteristics of social entrepreneurs include:

Mission Result-
Ambitious Strategic Resourceful
driven Oriented
DIFFERENT PLAYERS
 9

Different Players

Social innovation involves the same core entrepreneurial process of

finding opportunities, choosing amongst them, implementing and
capturing value, but in plays out in a number or different ways, which we
explore briefly

Social innovation is an important role in improving people's lives, and

attracted the attention of various institutions aimed at supporting and
stimulating it.
MOTIVATION: WHY DO IT?
 10

Motivation: Why Do It?

Pyschological studies of entrepreneurs suggest they often have a high need

for achievement (n-Ach), which is a measure of how far they want to make
their on the world.

High n-Ach requires some evidence that a mark has been made – but this
doesn’t have to be in terms of profit or loss on balance sheet.

Many people find entrepreneurial satisfaction through social value

creation, and even those with a long track record of building successful
businesses may find themselves drawn into this territory.
ENABLING SOCIAL INNOVATION
 11

Enabling Social Innovation

Innovation doesn’t just happen because there’re processes that can be

managed. This process begins by searching for opportunities and
cultivating them into a concept that deserves to be a goal. The next step
turns the idea into reality and finally launches a new product.

Whether they choose to adopt and use it, and spread the word to
other so the innovation diffuses, depends a lot on how we manage
using other knowledge and resource streams to understand, shape
and develop the market
THE CHALLENGES OF SOCIAL
ENTREPRENEURSHIP
 12

The Challenges of Social Entrepreneurship

Innovation doesn’t just happen because there’re processes that can be

managed. This process begins by searching for opportunities and
cultivating them into a concept that deserves to be a goal. The next step
turns the idea into reality and finally launches a new product.

Whether they choose to adopt and use it, and spread the word to other so
the innovation diffuses, depends a lot on how we manage using other
knowledge and resource streams to understand, shape and develop the
market
Cont…
 REFERENCE

John Bessant, and Joe Tidd (2015). Managing Innovation: Integrating

Technological, Market and Organizational change 5th Edition. John
Wiley & Sons, the Atrium. South Gate, Chichester, West Susses,
United Kingdom. ISBN: 978
Thank You