MME 1208

TECHNICAL ENGLISH-II
ycel birol
Innovation =
Creativity +
Commercialization
 What is innovation?
innovation is the implementation of a new or
significantly improved product (good or service),
or process, a new marketing method, or a new
organisational method in business practices,
workplace organisation or external relations.
The main driver for innovation is often the
courage and energy to better the world.
An essential element for innovation is its
application in a commercially successful way.
Innovation has changed human history (consider
the development of electricity, steam engines,
motor vehicles)
What is innovation?
Innovation involves the whole process from
opportunity identification, ideation or invention
to development, prototyping, production,
marketing and sales, while entrepreneurship only
needs to involve commercialization.
Today it is also said to involve the capacity to
adapt quickly by adopting new innovations
(products, processes, strategies, organization, etc)
Traditionally the focus has been on new products or
processes, but recently new business models have
come into focus, i.e. the way a firm delivers value
and secures profits.
What is innovation?
Technological innovations are defined as new
products and processes and major technological
modifications to products and processes.
An innovation is considered performed if it is
introduced to the market (product innovation) or
implemented in the production process (process
innovation).
Innovation includes many research, technological,
organizational, financial and commercial
activities.
Non technological innovation
Many innovations are of a non-technological
nature, for example in areas such as marketing,
organisation, management and design.
They are not primarily driven by a technological
invention or improvement, and hence referred to
as non-technological innovations.
Nevertheless, technology is used as an enabler to
support most of today's innovations, even when
technology is not the main focus or driver of the
innovation.
Types of innovation
Product innovation
Process innovation
Marketing innovation
Organisational innovation
Technological innovations
Social innovations
Business Model innovation
product innovation
Product innovation involves the
introduction of a new good or service that
is substantially improved. This might
include improvements in user friendliness,
components and materials, software in the
product, functional characteristics,
technical abilities or any other dimension.
Process & marketing innovation
Process innovation
A new or significantly improved production or
delivery method. This includes significant changes
in techniques, equipment and/or software.

Marketing innovation
development of new marketing methods with
improvement in product design or packaging,
product promotion or pricing.
Organisational & technological
innovation
Organisational innovation
involves the creation of new organizations, new
organisational methods in business practices,
ways of running organizations or new
organizational behavior, workplace organisation
or external relations.

Technological innovations
based on specific technology, invention, discovery
Social & business model
innovation
Social innovations
in critical historic periods more important than
technological ones (mail, educational systm,
social systm, health care,..)

Business Model innovation

involves changing the way business is done in
terms of capturing value e.g. Compaq vs. Dell.
Degree of novelty
Incremental innovations
Radical innovations
Systemic innovations
innovation management
innovation management encompasses an integrated
approach to managing all dimensions of innovation,
from innovation in products, services and business
processes to organisational and business models,
through continuous monitoring, development and
improvement processes.
Bench marking
A management tool for comparing performance
against an organisation that is widely regarded as
outstanding in one or more areas, in order to
improve performance.
What is Creativity?
there are three basic ingredients to creativity:
Domain skills - Domain skills are developed as one
becomes an expert in a field. To be a creative
metallurgical engineer, one must first master the
fundamentals of the discipline.
Creative thinking skills - Creative thinking skills
include seeking novelty and diversity, being
independent, being persistent, and having high
standards.
Intrinsic motivation - Intrinsic motivation implies
that the reasons for doing things come from within,
from passion and pleasure, not as a result of
external demands, pressures, or rewards.
Portrait of a Creative Person
Creative people pay attention to their world,
see things differently, challenge
assumptions, take risks, are not afraid to fail
and strive to generate multiple solutions to
problems.
They are passionate about creativity and
seek opportunities to innovate.
Six Tips To Help You Enhance
Your Creativity
1. Open Your Mind - Have one new experience every
day; no matter how small. New experiences
stimulate the brain and help you make new and
original connections; critical for boosting
breakthroughs.
2. Diversify - Involve others in your problem-solving
efforts who bring a different perspective or
cultural experience than yours.
 Six Tips To Help You Enhance
Your Creativity
3. Mental Floss Relax; Stress, exhaustion, boredom
and even pain can block our pathways to
creativity.
4. Stop Looking For the Right Answer - Look for
many right answers.
5. Discover Your Creative Rhythm - Start paying
attention to when you get your best ideas.
6. Health Makes Wealth - Regular exercise not only
benefits your body, it boosts brain performance as
well.
 and another one: Find what
you love to do
We know that people do their most creative work
when they love doing what theyre doing.
Theres no substitute for intrinsic motivation, that
is, motivation that comes from within.
Although such motivation doesnt guarantee
creativity, dislike or lack of interest in work
practically guarantees non-creativity.
Classical models of innovation
Science Push approaches suggest that
innovation proceeds linearly:
Scientific discovery invention
manufacturing marketing
Demand Pull approaches argued that
innovation originates with unmet customer
need:
Customer suggestions invention
manufacturing
Characteristics of successful
innovating companies
Systematic collection of all impulses that
could lead to innovation
Creativity of employees
Ability to evaluate the possibility of the
innovation idea
Good team work
Project-based approach and ability to
manage projects
Characteristics of successful
innovating companies
Cooperation with external experts
(universities, research laboratories)
Proper rate of risk-taking
Employees motivation (the employees are
willing to improve the product and the
operation of the whole company)
Continued education of employees
Ability to finance the innovation activities
Characteristics of successful
innovation process
Research and development (R&D)
Production
Marketing

Innovation is an opportunity for something new,

different.
It is always based on change.
Innovators do not view any change as a threat
but as an opportunity.
Three conditions for innovations
Innovation means work, hard, concentrated and
thorough work. If these qualities are lacking
then there is no use for the big talent,
cleverness or knowledge.
Successful innovations must build on your strong
points. The innovation must be important to the
innovator.
Innovation must focus on a market, must be
controlled by the market (market-pull).
Degree of novelty
Diffusion
New to the firm
New to the market
New to the world
Disruptive innovations
Degree of novelty
Diffusion
is the way in which innovations spread, through
market or non-market channels, from their first
worldwide implementation to different
consumers, countries, regions, sectors, markets,
and firms.
Without diffusion, an innovation will have no
economic impact.
The minimum entry for a change in a firms
products or functions to be considered as an
innovation is that it must be new (or significantly
improved) to the firm.
Degree of novelty
New to the firm:
A product, process, marketing method, or
organisational method might already have been
implemented by other firms, but if it is new to the
firm (or in case of products and processes:
significantly improved), then it is an innovation for
that firm.
Degree of novelty
New to the market:
the firm is the first to introduce the innovation
onto its market.
The market is defined as the firm and its
competitors.
The geographical scope is subject to the firms
own view of its operating market and thus can
include both domestic and international firms.
Degree of novelty
New to the world:
the firm is the first to introduce the innovation
for all markets and industries, domestic and
international.
implies a qualitatively greater degree of
novelty than new to the market.
Degree of novelty
Disruptive innovations:
an innovation that has a significant impact on
a market and on the economic activity of
firms in that market.
focuses on the impact of innovations as
opposed to their novelty.
These impacts can, for example, change the
structure of the market, create new markets,
or render existing products obsolete.
However, it might not be apparent whether an
innovation is disruptive until long after the
innovation has been introduced.
Innovation activities
are all scientific, technological, organisational,
financial and commercial steps which actually, or
are intended to, lead to the implementation of
innovations.
Some innovation activities are themselves
innovative, others are not novel activities but are
necessary for the implementation of innovations.
Innovation activities also include R&D that is not
directly related to the development of a specific
innovation.
Classifying firms by degree of
innovativeness
The innovative firm is one that has introduced an
innovation during the period under review. The
innovations need not have been a commercial
success many innovations fail.
An innovation active firm is one that has had
innovation activities during the period under
review, including those with ongoing and
abandoned activities. In other words, firms that
have had innovation activities during the period
under review, regardless of whether the activity
resulted in the implementation of an innovation,
are innovation active.
Classifying firms by degree of
innovativeness
A potentially innovative firm is one type of
innovation active firm, that has made
innovation efforts but not achieved results. This
is a key element in innovation policies: to help
them overcome the obstacles that prevent
them from being innovative (converting efforts
into innovations) Annex for developing
countries.