MAM Innovation 1

WBB10202
Innovation Management
LECTURER:
MAHFUZ ABD MALEK
TOPIC 1:
PERSPECTIVES ON INNOVATION
PERPECTIVES ON INNOVATION
• Introduction
• The factor that affect innovation
• Creativity versus innovation
• The innovation Continuum
• Source of Innovation
• Innovation culture and myths
INNOVATION-MAKERS
Introduction
Innovation is the
The classic definitions of innovation include: process of making
• the act of introducing something new: something
newly introduced improvements by
(The American Heritage Dictionary).
introducing
• the introduction of something new.
(Merriam-Webster Online) something new
• a new idea, method or device.
(Merriam-Webster Online)
• the successful exploitation of new ideas

(Department of Trade and Industry, UK) Innovation =
• change that creates a new dimension of Creativity X Risk
performance
(Peter Drucker)
In memoriam: Peter Drucker,
management and leadership guru
Peter Drucker (1909-2005),
The legendary management and leadership guru who helped to pioneer modern management theory,
passed away over the weekend at the age of 95. He was the author of countless business classics, such
as The Concept of the Corporation and The Practice of Management (1954), and put terms like
"knowledge worker" into widescale use. At age 94, Drucker published the last of his 35 books: The
Daily Drucker: 366 Days of Insight and Motivation for Getting the Right Things Done.
His teachings and business thinking influenced a range of business thinkers - including Bill Gates,
Andy Grove, Jack Welch and key members of the Japanese business establishment. Over a career that
spanned nearly 70 years, he advised countless numbers of corporations and business leaders on how to
think about long-term strategy, innovation and marketing..
The Financial Times called him the "grand old man of provocative theory and thoughtful management
practice."
MarketWatch called his 1946 book Concept of the Corporation the "de facto blueprint for the
changing U.S. economy that was being filled with millions of veterans returning home after World War
II."
Bloomberg called Drucker "the greatest management guru" of our time for coining such terms as
"management by objective" and "knowledge worker."
Finally, the Washington Post called Drucker one of "the world's most influential business gurus whose
thinking transformed corporate management in the latter half of the 20th century."
Innovation as the Engine of Growth
Creativity versus Innovation
Definitions
• Innovation - Doing new things.
• Creativity - Thinking up new things.
Comparisons
Action vs. Ideas
Has a champion vs. Needs a champion
Implement vs. Originate
creativity
Innovation
Mean by innovation
• the term innovation is to mean the process that transforms
ideas into commercial value.
• 1. Introduction and commercial sale of a new or improved
product, e.g. Pentium chip, Remington typewriter, tungsten
filament light bulb, nuclear weapons, hybrid seeds, genetically
modified foods.
• 2. Introduction and commercial use of a new method of
production, e.g. Henry Ford’s production line, the Pilkington
float glass process, Unipol polyethylene process, and the steam
engine.
• 3. Introduction of a new form of business organization, e.g.
franchising, co-operatives, joint ventures and co-production and
outsourcing agreements, discount grocery stores, e-business, just
in time manufacturing.
• 4. New uses for existing products. e.g. the electronic computer found its
first uses in military applications such as calculating artillary trajectories. It's
uses later broadened to include many more applications.
• 5. New markets for existing products. e.g. the donut was invented in
Germany and subsequently spread throughout the world.
• 6. New distribution channels. e.g. the internet is a new distribution channel
for selling books.
• The distinction between “invention” and “innovation” is that invention is
the creation of a new idea or concept, and innovation is turning the new
concept into commercial success or widespread use. We view Innovation to
be primarily an economic and social, rather than exclusively a technological
term. “Technological innovation” is an innovation with a significant
performance content (as opposed to a fashion).
• We use the term “innovation system” to refer to the set of distinct
institutions which contribute to the development and diffusion of new
technologies in a region. As such, it is a set of interconnected institutions
which form a system whose performance is determined both by the
individual performance of each institution, but also by how they interact with
each other as elements of a collective system.
INNOVATION CONTINUUM
A-Ha Start-Up Development Confirmation Sustainable
Exploration Proof of Business Operations Growth

Technology Validation
STAGE DESCRIPTION
Exploration Thinking about solving a problem or satisfying an unmet
need by starting a business.
A-Ha A tentative solution to a problem or have the beginnings of
an idea for a product or service that meets an unmet or
underserved need
Proof of Technology Ready to validate that a business can be formed around
your product or service idea
Start-Up Developing a formal business plan, establishing a legal
structure and mechanics of the business as well as the
resources required to get started on a validated product or
service idea
Business Validation Business realize and operating and as yet, have not
achieved positive cash flow. Original business plan may not
be valid
Development Developed a valid business and are now establishing the
business systems for long term success
Confirmation Business has been successful for several years but is now
experiencing difficulties
Growth Your business has been successfully developed and is now
ready to grow
Sustainable You have a business with a defined future that is
profitable, employs people and is an asset to the
community
SOURCE OF INNOVATION
Individual
Corporate
Users
Undertakings
Insights
Spillovers Process
(R&D) Needs
INNOVATION CULTURE & MYTH
• HISTORY • US
• SIZE • GERMANY
• TECHNOLOGY • JAPAN
• LEADERSHIP • KOREA
• MALAYSIA
• AUSTRALIA
• CHINA
Task 1 (INDIVIDUAL)
What is the meaning of innovation, or how is it understood

from your observation of innovation organization? Please
relate with what you learn this week.
_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________
(1 page) – submit to my e-mail : [email protected]
- due: within 24 hours from this lecture
Great Companies: What’s the Innovation?
• Wal-Mart • Apple • eBay

• Toyota • Microsoft • Boeing
• FedEx • Air Asia • Scomi
• Google • Skali
• Yahoo • Sony
Work Group : Choose 1 of above company and present their
( 5 min) contribution towards innovation to market.
Use your creativity and matured group skills.

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WBB10202

• the successful exploitation of new ideas

• Innovation - Doing new things.

• Creativity - Thinking up new things.

A-Ha Start-Up Development Confirmation Sustainable

Exploration Proof of Business Operations Growth

What is the meaning of innovation, or how is it understood

• Wal-Mart • Apple • eBay

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