Chapter 1

PERSPECTIVES ON INNOVATION
LEARNING OUTCOMES
At the end of this chapter, students should be able

to:
 Describe the various definitions of innovation.
 Distinguish between innovation, invention and
creativity.
 Discuss the factors that affect innovation.
 Identify the sources of innovation.
Innovation Management All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2015 1– 3
INTRODUCTION
 The word innovation originates from the Latin word “innovare”,

which means ‘to make something new’.
 Innovation includes both new technologies and new ways of doing
things.
 Innovation as a process which has to be established in an
organization for continued enhancement.
 Innovation management is the systematic processes that used to
develop new and improved products, services and processes.
 Innovation is a major part of any organization, essential for growth
by distinguishing the organization from others.
 Success of innovation depends on the future vision of and the
encouragement from the organizational culture.

Definition of terms
• Innovation
• Invention
• Creativity

Innovation
 Derived from Latin word “nova” meaning new

 introducing something new or doing
something in a new way.
 can be a new product, a new process, or a
new way of doing business

Invention
 Invent something did not exist.

 Example of invention: Components,
assemblies, mechanisms, and various types of
equipment used in daily living
 Inventions normally associated with patents,
however many inventions are never patented.

Creativity
 the generation of ideas that result in the

improved efficiency or effectiveness of a
system.
 a mental process involving the generation of
new ideas or concepts, or new associations
between existing ideas or concepts.

THE INNOVATION CONTINUUM
 Innovation lies on a continuum of events that begins with a raw

idea, which is developed into a concept, which then yields some
type of invention, and which is finally implemented and
commercialized.
Ideas
A raw idea ….
•is a spur of the moment thought, a reflection of

some visual or audible stimulus, or the result of
daydreaming.
•needs hard thinking to determine its significance.
Ideas need to be framed in some acceptable
manner in order to be communicated to others.

Ideas
Stage of new business development process

A Universal Industrial Success Curve
Concept
The work effort to develop a concept:

– Identifying the available resources
– Understanding the organizational infrastructure
– Assessing the competencies and capabilities of
the organization
– Interpreting economic and global demographic
information

Concept
 It requires a proof of concept to show that

the concept is workable.
 Developing a concept takes time
 to clear up
– the undefined
– the uncertainties
– the unpredictable
… issues and circumstances

The Factors That Affect Innovation
Culture
Resources INNOVATION Infrastructure
Process

Resources  People  Capability

 Money  Intellectual property
 Time  Access to information
 Customers  Plant and equipment
 Suppliers  Financial reserves
Infrastructure  Vision  Management attributes

 Mission  Support to innovation
 Objectives
 Strategies

Culture  Shared values  Past

 Belief accomplishments
 Legends  Policies and practice
 Rituals  Rules of conduct
 History  Philosophy
 Traditions  Artifacts
Process  Idea (from  Development
recognized need)  Production
 Developed into  Adoption by end
concept, users.
 Invention
SOURCES OF INNOVATION
 The Unexpected Event

– An unexpected failure, an unexpected success or an unexpected
outside event can be a platform of a unique opportunity.
 The Incongruous
– A discrepancy between reality and what everyone assumes it to be, or
between what is and what ought to be, can create an innovative
opportunity.
 The Process Need
– This one is task-focused rather than situation-focused. A process is
perfected, redesigned or a weak link replaced.
 The Industry and Market Structure Change
– The opportunity for an innovative product, service or business approach
occurs when the underlying foundation of the industry or market shifts.

SOURCES OF INNOVATION
 Demographics
– Changes in the population’s age structure, size, income, level of
education and employment can create opportunities for innovation.
 Changes in Perception, Meaning, and Mood
– Innovative opportunities can develop when a society’s beliefs, attitudes
and general assumptions change.
 New Knowledge
– Advances in scientific and non-scientific knowledge can create new
products and new markets.

INNOVATION CULTURE AND
MYTHS
Myths Realities
Individuals drive innovation. Innovation is a team sport.
Innovation begins with Innovation begins with

brainstorming. understanding the customer.
Innovation requires creative Innovation requires effective

people. problem solvers rather than
creative people.
An innovation process will The innovation process is only
give the results you need. one tool for successful
innovation.
SUMMARY
 Innovation encompasses four major components: culture,

resources, process and infrastructure.
 An organization needs to be innovative in order to survive in the
marketplace.
 Innovation involves ideas developing into concepts, materializing
into invention, ending with innovation.
 Innovation happens when an invention matches implementation
and is finally commercialized.
 Innovation effort must be nourished by a supportive organization
culture.


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PERSPECTIVES ON INNOVATION

At the end of this chapter, students should be able

Innovation Management All Rights Reserved

 The word innovation originates from the Latin word “innovare”,

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

 Derived from Latin word “nova” meaning new

Innovation Management All Rights Reserved

 Invent something did not exist.

Innovation Management All Rights Reserved

 the generation of ideas that result in the

Innovation Management All Rights Reserved

 Innovation lies on a continuum of events that begins with a raw

•is a spur of the moment thought, a reflection of

Innovation Management All Rights Reserved

Stage of new business development process

The work effort to develop a concept:

Innovation Management All Rights Reserved

 It requires a proof of concept to show that

Innovation Management All Rights Reserved

Resources INNOVATION Infrastructure

Innovation Management All Rights Reserved

Resources  People  Capability

Infrastructure  Vision  Management attributes

Innovation Management All Rights Reserved

Culture  Shared values  Past

 The Unexpected Event

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Individuals drive innovation. Innovation is a team sport.

Innovation begins with Innovation begins with

Innovation requires creative Innovation requires effective

 Innovation encompasses four major components: culture,

Innovation Management All Rights Reserved

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