Innovation Management in Supply Chain and

Logistics – SCM613
Unit 4: Innovation Management

Dr. Syed Mehmood Hasan

PhD (SCM-UoG, UK); M.Sc. (Engg. Mgmt.-UoG, UK); B.E (IMD-NEDUET)

Assistant Professor (IMD)

N.E.D University of Engineering & Technology
+92-3202200115
syed.m.hasan@hotmail.co.uk
mehmoodhasan.vf@iobm.edu.pk
© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23
 Unit – Innovation Management
Fundamental Concepts
Basic Concepts of Innovation
Innovation and Invention, Types of Innovations, Models of Innovation.
Change Management
Different models of change management
Process Modelling:
Business Process Management and its tools, Process Modelling Tools
New Product Development (NPD):
NPD Process Management, NPD Performance Management

Case Study:
Kellogg’s - New products from market research.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Basic Concepts
Innovation and Invention

Myers and Marquis (1969):

“Innovation is not a single action but a total process of
interrelated sub processes. It is not just the conception of
a new idea, nor the invention of a new device, nor the
development of a new market. The process is all these
things in an integrated fashion”.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Types of Innovation
Type of Innovation Example

Product innovation The development of a new or improved product.

Process innovation The development of a new manufacturing process.

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).

Production innovation Quality circles. Just in Time (JIT) manufacturing systems; new production
planning software.

Commercial/Marketing New financing arrangements; new sales approach e.g. direct marketing.
innovation

Service innovation Internet-based financial services.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Innovation – Invention Linkage

Rothwell’s (1992) equation shows the relationship

between the two terms:

Innovation = Theoretical conception + technical

Invention + commercial exploitation

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Chronological Development of
Models of Innovation
Date Model Characteristics

1950/60s Technology push Simple linear sequential process; emphasis on Research &
Development (R&D); the market is a recipient of the fruits of
R&D.

1970s Market pull Simple linear sequential process; emphasis on marketing; the
marketing is the source for directing R&D; R&D has a
reactive role.

1980s Coupling model Emphasis on integrating R&D and marketing.

1980/90s Interactive model Combination/s of push and pull.

2000s Network model Emphasis on knowledge accumulation and external linkages.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Change Management
Change management (CM) is a generalized approach to
organisational change in the work organisation.

According to Watson (2002) the work organisation may

be defined as: Work arrangements involving
relationships, understandings and processes in which
people are employed, or their services otherwise
engaged, to complete tasks undertaken in the
organisation’s name.
© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23
Different Models of Change Management
Kotter and Schlesinger (1979) have famously identified
the following six general approaches to dealing with
resistance to change by positively influencing
employees:
1. education and communication,
2. participation and involvement,
3. facilitation and support,
4. manipulation,
5. negotiation and agreement, and
6. explicit and implicit coercion.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

 Kotter’s “EIGHT STEP” change model/framework and analysis of change, based
primarily on organisational change in the corporate sector, has been articulated and adapted since the
Early-1990s. It is well known and widely quoted and applied.
1.Establish a sense of urgency – about the need to make changes.
2.Form a powerful high level coalition to guide and lead the changes – a group with enough power and
influence in the organisation to lead the change effort.
3.Create a vision of the organisation’s future – to help focus and direct the change.
4.Communicate that vision widely, repeatedly and consistently – from the leadership level down through
all organisational levels, in language and in actions and behaviours.
5.Empower people in the organisation to act on the vision – remove obstacles to change, improve
processes and systems, encourage and enable people to take risks, engage in non-traditional thinking
and activities.
6.Plan for visible short-term performance improvements – enable these to occur and recognise their
achievement and the work of those who have enabled that achievement.
7.Consolidate improvements and produce more change – as change takes effect build on the credibility
and confidence that results, extending the reform or structures, systems and processes and encouraging
and growing change agents in the organisation.
8.Institutionalise new approaches – clearly articulate the connections between the new ways of working
and organisational successes, encourage and develop on-going leadership of change and anchor the
changes into the organisational culture.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Carbone and Haeckel (1994) divided experience design
into four phases:
1. Acquisition of service experience design skills;
2. Data collection and analysis;
3. Service clue design; and
4. Implementation and verification.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

TROPICS Model by Paton and McCalman, 2000
Tropics Factor “Hard” Solution Methodology “Soft”Solution Methodology

Timescales Clearly defined: Short to medium term Ill define: Medium to long term

Resources Clearly defined and reasonably fixed Unclear and variable

Objectives Objective and quantifiable Subjective and visionary

Perceptions Shared by those affected Creates conflicts of interest

Interest Limited and well define Widespread and ill defined

Control Within the managing group Shared out with the group

Source Originates internally Originates externally

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Doppelt’s “WHEEL OF CHANGE” model, 2003

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Carbone (2004) suggested five steps:
1. Build a diverse design team.
2. Drill down to the experience core.
3. Focus on clues.
4. Develop the experience narrative or story line.
5. Prioritise implementation opportunities.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Berry and Carbone (2007) proposed a five-step
approach:
Identify the emotions that evoke customer
commitment.
Establish an experience motif.
Inventory and evaluate experience clues.
Determine the experience gap.
Close the experience gap and monitor execution.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Process
Different tasks that create a value added product is called a business process.
The common goals for these different processes are (Marri, et.al, 2002):
Satisfied customer,
Return on Investment, and
Profit in market share.

To understand “AS IS” process the following two-step approach is often used to document a
process:
Step One: Define and describe the process in qualitative terms using a technique called
relationship mapping. This involves answering questions including:
Who are the customers of the process and what is the output from it?
Who are the suppliers to the process and what is their input to it?
What are the requirements for their input and output of the process?
What is the internal flow of activities of the process?
Step Two: Construct a flow chart that shows all the activities in the process in a more
detailed map.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

According to Kenneth Preiss (1999), the primary variable in the flow of process is to
look at the flows in and out of a single enterprise.This Kenneth Preiss model has five
components. These are the process itself, the inputs which are converted by the process
to outputs, the resources used to perform the conversion, and the controls or conditions
that may not be violated by the process.

The controls are mandated by external conditions and cannot be changed by management
of the process. The other four factors can be changed by management.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Overview of Process Modelling Tools
Process modelling tools can be graphical or textual

Graphical modelling tools use a diagram technique with

named symbols that represent concepts and lines that
connect the symbols and represent relationships and
various other graphical notations to represent constraints.
Textual modelling tools typically use standardized
keywords accompanied by parameters to make computer-
interpretable expressions.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Examples of Graphical Modelling Tools
 Behavior Trees
 Business Process Modelling Notation (BPMN)
 EXPRESS and EXPRESS-G (ISO 10303-11)
 Extended Enterprise Modelling Language (EEML)
 Flowchart
 Fundamental Modelling Concepts (FMC)
 IDEF
 Jackson Structured Programming (JSP)
 LePUS3
 Object Role Modelling (ORM)
 Petri nets
 South beach Notation
 Specification and Description Language (SDL)
 SysML
 Unified Modelling Language (UML)
 Service-Oriented Modelling Framework (SOMF)
 Architecture description language (ADL)
© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23
Business Process Management
A structured approach to analyse and continually
improve fundamental activities such as manufacturing,
marketing, communications and other major elements
of a company’s operation.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

 BPM Rules
BPM has to be governed by the following rules:
 Major activities have to be properly mapped and documented.
 BPM creates focus on customers through horizontal linkages between key activities.
 BPM relies on systems and documented procedures to ensure discipline, consistency and
repeatability of quality performance.
 BPM relies on measurement activity to assess the performance of each individual process,
set targets and deliver output levels which can meet corporate objectives.
 BPM has to be based on a continuous approach of optimization through problem solving
and reaping out extra benefits.
BPM emerged as a succeeding concept to Total Quality Management (TQM) in the 1980s and
Business Process Reengineering (BPR) in the 1990s (Hammer and Champy, 1993;
Davenport, 1993). Following BPR, several Information Technology (IT) systems such as
Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) gained
organisational focus (Jeston and Nelis, 2008).

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

Business Process Simulation
Business process simulation (BPS) used to be the way to do the analysis of
manufacturing systems, but is now being utilised in the management of
change in a different way of manufacturing and service platforms.

Simulation can be referred to different types of model like:

spread sheet modelling,
discrete event simulation and
system dynamic simulation.

Using BPS to Analyse Dynamic Systems

An important aspect of BPS is its ability to capture the dynamic (i.e., time-
dependent) behaviour of a process. There are two aspects of dynamic
systems that are:
Variability
Dr.
© Interdependence
Syed Mehmood Hasan-Spring 2022 9/16/23
New Product Development Process
Management
 There is no evidence of single model present which companies can use
for new product development process (Holtzman, 2011).
 5 factors are of great importance: good product quality, lower product
cost, less development time, lower development cost, and effective
development capability (Kidder, 1981).

(Hasan et al.; 2012)

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

 New Product Development Performance
Management
Thomas and Refik (1993) indicated that from the view of PD process, different firms
would have different types of NPD according to corporate and product characteristics:
(1) Sequential new product development; (2) Holistic new product development; (3)
Overlapping new product development; (4) Chaotic new product development.
Hisrich and Peters (1986) suggested that typical product development process:
(1) Idea generation (2) Screening. (3) Business analysis. (4) Development. (5) Testing.
(6) Commercialization.
Cooper and Kleinschmidt (1995) suggested 7 steps and the process became the
criterion for most of the business circle at present and it included:
(1) Idea; (2) Preliminary Assessment; (3) Concept; (4) Development; (5) Test; (6) Trial;
(7) Launch.
Veryzer (1998) suggested 8 steps of new product development:
(1) Dynamic trend (2) Convergence stage (3) Forming stage (4) Initial design (5)
Assessment preparation (6) Prototype construction (7) Test design (8) Prototype and
commercialization.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

 Kellogg’s
New products from market research

Case Study
© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23
 Wrap – Up for Unit – Basic Concepts
Fundamental Concepts
Basic Concepts of Innovation
Innovation and Invention, Types of Innovations, Models of Innovation.
Change Management
Different models of change management
Process Modelling:
Business Process Management and its tools, Process Modelling Tools
New Product Development (NPD):
NPD Process Management, NPD Performance Management

Case Study:
Kellogg’s - New products from market research.

© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23

 Questions &
Answers
© Dr. Syed Mehmood Hasan-Spring 2022 9/16/23