Types of Innovations���

Why Innovative �Management Matters

Innovation is vital in today’s world

• core entrepreneurial initiative
• global motor for economic growth (Vives, 2008).
• useful to predict and satisfy market needs,
• offer higher quality and more valuable products and services, and
• controlling costs efficiently (European Commission, 1995).

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Why Innovative �Management Matters

• 1911 - Joseph Alois Schumpeter - book “Theorie der wirtschaftlichen Entwicklung” (Schumpeter, 2002)
• 1934 - “The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle”
• “the doing of new things or the doing of things that are already done, in a new way” (Schumpeter, 1982).

• Combining new ideas in unique ways or unusual ways

• Turning creative ideas into useful products, services, or methods of operation

OSLO MANUAL

• Product innovation
• A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics.
• Process innovation
• A new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software.
• Marketing innovation
• A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.
• Organisational innovation
• A new organisational method in business practices, workplace organisation or external relations.

Product innovation

• Company X develops a line of smart running shoes embedded with advanced sensor technology. These shoes have built-in sensors that can collect various data points during a run, including distance, speed, cadence, foot strike pattern, and even biometric information like heart rate and oxygen saturation.
• The sensors in the shoes connect wirelessly to a mobile app or a smartwatch, allowing users to track and analyze their running performance in real time. The app provides personalized insights and recommendations based on the collected data, helping runners optimize their training, prevent injuries, and set goals.

Process innovation

• To streamline their manufacturing process, Company X implements robotic automation in their production line. They introduce advanced robots that can assemble the smartphones with precision and efficiency. This reduces the production time and minimizes errors, resulting in cost savings and improved product quality.

Organizational innovation

• Recognizing the importance of fostering creativity and collaboration, Company X adopts a flexible work culture. They implement a "work from anywhere" policy, allowing employees to work remotely or choose their preferred workspace. Additionally, they establish cross-functional teams consisting of engineers, designers, and marketers to encourage interdisciplinary collaboration and innovation.

Marketing innovation

• An example if when customers possess the opportunity to choose desired product specifications on the firm’s Web site and then the price for the specified product will be calculated (OECD, 2005).

Classification of innovations

Classification of innovations

Classification of innovations

3M’s Rules for an �Innovative Culture

17-13

Lewin’s Three-Step Process