Innovation management of products and services

Introduction
Innovation is the ability to conceive, develop, deliver and scale the new product, service,
process and business model for customers.
Types of Innovation

1. Incremental Innovation
Existing Technology, Existing Market

One of the most common forms of innovation that we can observe. It uses existing
technologies within an existing market. The goal is to improve an existing offering by adding
new features, changes in the design, etc.

Example

The best Example for incremental innovation can be seen in the Smartphone market where
the most innovation is only updating the hardware, improving the design, or adding some
additional features/cameras/sensors, etc.

2. Disruptive Innovation
New Technology, Existing Market
Disruptive innovation is mostly associated with applying new technologies, processes,
or disruptive business models to existing industries. Sometimes new technologies and
business models seem, especially in the beginning, inferior to the existing solutions but after
some iterations, they surpass the existing models and take over the market due to efficiency
and/or efficacy advantages.

Examples

Amazon used Internet-Technologies to disrupt the existing industry for book-shops. They had
the existing market for books but changed the way it was sold, delivered and experienced due
to the use of disruptive technologies. Another example was the iPhone, where existing
technologies in the market (Phones with buttons, keypads, etc.) were replaced with touch-
interface-cantered devices combined with intuitive user interfaces.

3. Architectural Innovation
Existing Technology, New Market

Architectural innovation is something we see with tech giants like Amazon, Google, and
many more at the moment. They take their domain expertise, technology, and skills and apply
them to a different market. This way they can open up new markets and expand their
customer base.

Examples

Especially digital ecosystem orchestrators like Amazon and Alibaba use this innovation
strategy to enter new markets. They use existing expertise in building apps, platforms, and
their existing customer base to offer new services and products for different markets. A recent
example for this: Amazon recently entered the medical care field.

4. Radical Innovation
New Technology, New Market

Even it is the stereotypical way most people see innovation; it is the rarest form of them all.
Radical innovation involves the creation of technologies, services, and business models that
open up entirely new markets.

Example

The best example of radical innovation was the invention of the airplane. This radical new
technology opened up a new form of travel, invented an industry, and a whole new market.

Stages of innovation in products and services:

To create a successful and sustainable innovation process, your company needs to go through
different stages of corporate innovation. This includes Idea Generation, Evaluation, Testing
and Experimentation, Development and Implementation, and Optimization. Each stage is
important for the overall success of your innovation initiative.
 1. Ideation & Idea generation
The process of generating new ideas and drafts. This stage is all about coming up with new
and innovative ways to improve your business, and services or products. Some common
methods for generating new ideas include brainstorming, customer feedback, new
technologies, changing economy or other sources for new ideas. No matter how you generate
them, it’s important to have a steady flow of new ideas to evaluate and move forward with.

2. Evaluation
Many companies skip the step of evaluating their ideas and this can be costly. Without taking
the time to properly evaluate an idea, you may end up investing in a project that is not
feasible or profitable. It’s important to take the time to assess each idea before moving
forward with it, so you can make sure you are investing in projects that have the greatest
potential for success.

3. Testing, Experimenting and MVP

The process of testing an idea to see if it works in practice. This stage involves prototype
development, market testing, and user feedback. However, it’s important to first start with
small-scale MVPs to reduce the risk of investing in a project that is not feasible or profitable.
MVPs are a great way to test an idea without spending too much time or money on
development.

4. Development and Implementation

A successful test can give you good first feedback that can help you create a plan and then
execute the full-scale development of the innovation. After a successful test, it’s important to
take that feedback and use it to build out a development plan. This plan should include all the
steps necessary for bringing the innovation to market. Once the plan is in place, it’s time to
execute that plan and bring the innovation to life. This also involves Marketing, Sales, and
Support.

5. Optimization & Scaling

After the innovation has been launched, it’s important to track the performance and optimize
where necessary. This stage is all about making sure the innovation is successful and
sustainable in the long term. It involves continual tracking, analysis, and improvement. Once
the innovation is established and performing well, it’s time to scale it up and bring it to more
customers.
Role of R&D in Entrepreneurship
R&D is a valuable tool for growing and improving your business. R&D involves researching
your market and your consumer needs and developing new & improved products and services
to fit these needs.
Key role / advantages / contribution of R&D
 Unique selling point
 Income
 Funding
 Tax relief
 Competitive edge
 Reputation
Types of R&D
 Basic – Knowledge / theoretical
 Applied – particular objective (Cost cutting / New market etc)
 Experimental – development
Green management
Green management is a paradigm that includes improving environmental awareness, using
energy resources and eco-friendly technologies, reuse of wastes, and recycling activities
starting from production activities of businesses to packaging and delivering to consumers.
Hart’s strategic framework

Types
 Green supply chain management
 Green marketing
 Green production
 Green R&D
 Green criminology
 Green HRM
Lean management
An approach to managing an organization that supports the concept of continuous
improvement.
3 ideas of lean management
 Deliver values
 Eliminate waste
 Continuous improvement
Model

Lean principles:
 Identify the value
 Map the value stream
 Create flow
 Establish pull
 Continuous improvement
IPR
Intellectual property rights are the rights given to persons over the creations of their minds.
They usually give the creator an exclusive right over the use of his/her creation for a certain
period of time.
Types:
Trade secrets are intellectual property (IP) rights on confidential information which may be
sold or licensed. In general, to qualify as a trade secret, the information must be:
commercially valuable because it is secret, be known only to a limited group of persons, and.
An integrated circuit is a miniature electrical circuit containing electronic devices, some or
all of the devices and interconnections of which are embedded in or on a piece of material,
usually a semi-conductor material e.g. silicon.
Geographical Indications of Goods are defined as that aspect of industrial property which
refer to the geographical indication referring to a country or to a place situated therein as
being the country or place of origin of that product.
Copyright refers to the legal right of the owner of intellectual property. In simpler terms,
copyright is the right to copy. This means that the original creators of products and anyone
they give authorization to are the only ones with the exclusive right to reproduce the work.
A patent is an intellectual property (IP) right for a technical invention. It allows you to
prevent others from using your invention for commercial purposes for up to 20 years. You
decide who is allowed to produce, sell or import your invention in those countries in which
you own a valid patent.
A trademark is a sign capable of distinguishing the goods or services of one enterprise from
those of other enterprises. Trademarks are protected by intellectual property rights.
An industrial design is an original creation of an ornamental nature, which, when
incorporated in or applied to a product, lends a special appearance to it. These characteristics
may result from its shape, lines, outline, configuration, colour, texture or material.
Principles of ethics for engineering managers
The fundamental principles of engineering ethics include honesty, integrity, and respect for
others. In addition, engineers are responsible for prioritising safety, minimising harm to
society, and promoting public health and welfare. Engineering ethics are principles and
guidelines engineers follow to ensure their decision-making is aligned with their obligations
to the public, their clients, and the industry.
Principles of engineering ethics
 Honesty
 Integrity
 Accountability
 Respect for life and property
 Concern for public safety
 Welfare
Types:
Metaethics – what is morality – the base of values
Applied ethics – how to apply – practical solution to moral problems
Normative ethics – modern standards that regulate right (or) wrong conduct.