Management of Innovation and Product Development: Integrating Business and Technological Perspectives

Preface
Acknowledgements
Contents
Understanding Innovation and its Dynamics
1 Innovation in Business and Society
Abstract
1.1 Defining Innovation
1.2 The Innovation Process and Its Actors
1.3 The Geography of Innovation
1.4 The Impact of Technological Innovation on Society
1.4.1 Innovation, Employment and Economic Disparities
1.4.2 Innovation, Ethics and the Law
References
2 Technological Knowledge and Organizational Learning
Abstract
2.1 Knowledge in Technology and in Science
2.2 An Evolutionary Theory of the Firm
2.3 Competitive Advantage Explained
2.4 Organizational Learning
2.5 Technological Knowledge and Creativity
2.6 Data, Technological Knowledge and Innovation
References
3 The Many Types of Innovation
Abstract
3.1 The Determinants of Innovation
3.2 Technological Paradigms
3.3 A Taxonomy for Technological Innovation
3.4 The Puzzling Nature of Disruptive Innovation
3.4.1 The Inability to Join an Emerging Paradigm
3.4.2 Incumbents Tend to Neglect Emerging Markets
3.4.3 Incumbents’ Need for Ambidexterity
3.5 When Radical Innovation Does not Disrupt
3.5.1 The Existence of Markets for Technology
3.5.2 S-curves Can Be Misleading
3.5.3 Localized Technological Change
3.5.4 Appropriability Regimes and Complementary Assets
3.6 Strategies for Incumbents, Strategies for Entrants
References
4 The Dynamics of Innovation
Abstract
4.1 Technological Lifecycles and Diffusion
4.2 Diffusion s-curves and Customer Segments
4.3 The Dominant Design Model and Its Implications
4.3.1 Dominant Designs and the Technology Lifecycle
4.3.2 The Emergence and Lock-in of Dominant Designs
4.3.3 Dominant Design and Vertical Integration
4.3.4 Dominant Designs in Process Industries and in Services
4.4 The Limitations of Abernathy and Utterback’s Model
4.5 The Incubation Period
4.6 Reverse Innovation
4.7 The Many Types of Innovation, Beyond Performance
4.8 Standards and the Dynamics of Innovation
4.8.1 Defining a Standard
4.8.2 How Do Standards Arise?
4.8.3 Strategies for Imposing Proprietary Standards
4.9 Timing of Entry and Firm-Mover Advantage
References
5 Fundamentals of Technology Forecasting
Abstract
5.1 Forecasting Revolutionary Change
5.2 Forecasting Evolutionary Change
References
Formulating an Innovation Strategy
6 The Many Approaches to Innovation Strategy
Abstract
6.1 Choosing an Approach
6.2 Innovation and the Product Portfolio Management Strategy
6.3 Innovation and the Theory of Competitive Advantage
6.3.1 Competitive Advantage, the Five Forces and Generic Strategies
6.3.2 Competitive Advantage and Innovation Strategy
6.4 Intellectual Property Rights and Competitive Advantage
6.4.1 Patents
6.4.2 A Strategy for Intellectual Property
6.4.2.1 Patenting Decisions
6.4.2.2 Alternatives to Patenting
6.4.3 Patent Scanning and Industry Landscaping
6.4.4 Emerging Issues in Intellectual Property Management
6.4.4.1 Patentability of a ‘Critical’ Technology
6.4.4.2 The Fragmentation of the Technological Landscape
6.4.5 Alternative Policies to Patenting
6.5 Shaping and Blue Ocean Strategies
6.6 Innovation and the Resource-Based View
6.6.1 The Basics of the Resource-Based View in Corporate Strategy
6.6.2 Bridging the Core Competencies and Competitive Advantage Approaches
6.7 The Formulation of an Innovation Strategy
References
7 Business Model Innovation
Abstract
7.1 What is a Business Model
7.2 The Business Model Canvas
7.2.1 The Main Elements of the Business Model Canvas
7.2.1.1 Customer Segments (CS)
7.2.1.2 Value Propositions (VP)
7.2.1.3 Channels (C)
7.2.1.4 Customer Relationships (CR)
7.2.1.5 Revenue Streams (RS)
7.2.1.6 Key Activities (KA)
7.2.1.7 Key Resources (KR)
7.2.1.8 Key Partnerships (KP)
7.2.1.9 Cost Structure (CS)
7.2.2 Using the Canvas in Practice
7.2.2.1 Using the Canvas in New and in Existing Firms
7.2.2.2 Unbundling a Business Model
7.2.2.3 Competitive Benchmarking
7.2.2.4 Scenario Analysis
7.2.3 Understanding the Coherence of the Business Model
7.3 Representing a Business Model from the Perspective of a Value System: e3value
7.4 The Design of a Business Model
References
8 Innovation Strategy as the Management of Competencies
Abstract
8.1 Mapping and Planning a Competency Portfolio
8.2 Internal Research and Development
8.2.1 The Uncertain Relationship Between R&D Expenditure and Corporate Performance
8.2.2 Some Typical Features of R&D Activity
8.2.3 Positioning R&D Activity in Large Firms
8.3 Technology Acquisitions
8.4 Corporate Venturing
8.5 Hiring Human Resources
8.6 Non-equity Strategic Alliances
8.7 Equity-Based Alliances and Joint Ventures
8.8 Co-development
8.9 Sourcing R&D Activity from Other Parties
8.10 Licensing
8.11 Complete Outsourcing
8.12 The Framework of Open Innovation
References
9 Innovation Strategy as Project Portfolio Management
Abstract
9.1 Project Portfolio Management in a Strategic Perspective
9.1.1 Categorizing Projects and Defining Roadmaps
9.1.2 Platform Product and System Development
9.1.3 Technology Road Mapping
9.2 Defining a Process for Project Evaluation
9.3 Project Selection
9.3.1 Top-Down Versus Bottom-Up Selection
9.3.2 Financial Methods for Project Selection
9.3.2.1 Net Present Value
9.3.2.2 The Option Value of Projects
9.3.3 Optimization Methods
9.3.4 Multicriteria Methods
9.3.5 Mapping Methods
9.4 Best Practice in Project Portfolio Management
References
Making innovation happen—The Product Development Process
10 Organizing Product Development Activities
Abstract
10.1 What We Know of Organizations Engaged in Innovation
10.1.1 The Role of Literature and Formalized Knowledge
10.1.2 The Role of Interpersonal Communication
10.2 Gatekeepers and Innovators
10.2.1 The Role of Technological Gatekeepers
10.2.2 The Role of Innovators
10.3 Physical and Virtual Spaces
10.4 Organizational Design for Innovation Activities
10.5 Project Staffing
References
11 The Product Development Process
Abstract
11.1 The Main Phases of the Product Development
11.2 The Peculiar Managerial Complexity of the Product Development Process
11.3 Tradeoffs in the Product Development Process
11.3.1 The Key Concern of Reducing Time to Market
11.3.2 Product Performance and Customer Satisfaction
11.3.3 Managing Costs in Product Development
11.4 Information Technology Support to Product Development Processes
11.5 From Traditional Managerial Approaches to Concurrent Engineering
11.6 From Concurrent Engineering to Approaches Based on Flexibility
11.7 Lean Product Development and Agile Project Management
11.8 Agile Product Development
References
12 Project Management for Product Development
Abstract
12.1 Activities and Resources in Product Development Projects
12.2 Management of Activity Precedence Networks with Iterations
12.2.1 Identifying Circuits and Iterations
12.2.2 Managing Circuits and Iterations
12.3 Project Scheduling
12.3.1 Scheduling with Infinite Resources
12.3.2 Project Crashing
12.3.3 Finite Resource Scheduling
References
13 From Market Research to Product Positioning
Abstract
13.1 Customer-Driven Product Development
13.2 Defining the Market
13.3 Understanding Customers
13.3.1 Identifying Customers, Users and Stakeholders
13.3.2 Identifying the Network of Influences
13.3.3 Eliciting Tertiary Needs from Customers/Users
13.3.4 Organizing Needs into a Hierarchy
13.3.4.1 From Tertiary to Secondary Needs
13.3.4.2 From Secondary to Primary Needs
13.3.5 Perceptual Mapping
13.4 The Different Importance of Needs: Kano’s Model
13.5 Pricing
13.6 Product Positioning
13.6.1 Horizontal Differentiation
13.6.2 Vertical Differentiation
13.7 Demand Forecasting
13.7.1 Product Demand in Stationary Markets
13.7.2 Product Demand Subject to Diffusion Phenomena
13.7.2.1 Bass’ Model of Diffusion
13.7.2.2 Managerial Implications of Bass Diffusion Process
13.7.2.3 Some Variants of the Bass’ Model
13.7.2.4 Other Diffusion Models
13.7.3 Demand Estimation to Evaluate Diffusion of Services
13.7.3.1 Bass-Type Models for Services
13.7.3.2 Choice-Type Models for Services
13.7.3.3 Gray Models
13.8 Market Share
References
14 Specifying the Product
Abstract
14.1 The Information Required for Developing System Requirements and Specifications
14.2 From Needs to Specifications
14.3 Identifying Requirements According to the User-Centered Design Approach
14.4 Quality Function Deployment
14.5 Product and Lifecycle Costing
14.5.1 Traditional Costing and Target Costing
14.5.2 Cost Estimating
14.5.3 Cost Estimating with Learning Effects
14.5.3.1 The Learning Effect
14.5.3.2 The Boeing-Crawford Experience Curve Model
14.5.4 Lifecycle Costing
14.6 Lifecycle Analysis
References
15 Designing Products and Services
Abstract
15.1 Some Theoretical Foundations of Design
15.1.1 Design as Problem-Solving—The Cognitive Process of Technology
15.1.2 The ‘Science of the Artificial’ and Decisional Processes
15.1.3 Design Thinking as Investigated by the ‘Science of Design’
15.1.3.1 Descriptive Models of Design at the Individual Level
15.1.3.2 The Role of Constraints
15.1.3.3 Descriptive Models of Design in Groups and Organizations
15.1.4 The Objects of Design as Determinants of Design Process
15.2 Conceptual Design
15.3 Methods Supporting Conceptual Design
15.3.1 Functional Analysis
15.3.2 The Theory of Inventive Problem-Solving (TRIZ)
15.3.3 Other Methods for Creative Generation
15.3.4 Concept Combination and Classification
15.3.5 Screening and Selecting Concepts
15.4 Linking the Design Process to the Innovation Process
References
16 Design and Redesign of System Architecture
Abstract
16.1 Product Architecture Defined
16.1.1 Product Performance
16.1.2 Product Change
16.1.3 Product Variety
16.1.4 Standardization
16.1.5 Influence on the Organization and on the Supply Chain
16.2 The Design of the System Architecture
16.3 Designing Platform-Based System Architectures
16.4 Designing Modular System Architectures
16.5 Value Analysis and Value Engineering
16.5.1 Phase 1—Obtaining the Same Product at a Lower Cost
16.5.2 Phase 2—Obtaining the Same Functions at a Lower Cost
16.5.3 Phase 3—Obtaining the Required Functions at a Low Cost
16.5.4 Phase 4—Extending the Results Horizontally
16.6 Design to Value
16.7 Variety Reduction
References