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Central Problems in the Management of Innovation ANDREW H. VAN DE VEN

2011 Fall Seminar on Technological Innovation . Central Problems in the Management of Innovation ANDREW H. VAN DE VEN MANAGEMENT SCIENCE, Vol. 32, No. 5 (1986). 2011.9. 14 기술경영학협동과정 고윤미 , 한상연. Contents. Introduction. 4 factors and central problems . 1. 2. Conclusion.

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Central Problems in the Management of Innovation ANDREW H. VAN DE VEN

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  1. 2011 Fall Seminar on Technological Innovation Central Problems in the Management of Innovation ANDREW H. VAN DE VEN MANAGEMENT SCIENCE, Vol. 32, No. 5 (1986) 2011.9. 14 기술경영학협동과정 고윤미, 한상연

  2. Contents Introduction 4 factors and central problems 1 2 Conclusion 3 Further discussion 4

  3. 1. Introduction • A decline in American productivity and obsolescence of its infrastructure in the 1980’s • The need for understanding and managing innovation • focus on research and scholarship about organizational mode for innovation • ⇒ According to a general management perspective on innovation(Lewin and • Minton’s, 1985) this paper begins with key problems confronting general • managers. • □ Innovation is defined as the development and implementation of new ideas • by people who over time engage in transactions with others within an • institutional context.

  4. 2. 4 factors : New Ideas /human problem of managing attention • Innovative Ideas • • technical innovations(new technologies, products, services) • • administrative innovations(new procedures, policies, organizational forms) • Management of Ideas Q1. How and why certain innovative ideas gain good currency? Q2. How and why people pay attention to only certain new ideas and ignore the rest? Q3. How to trigger the action thresholds of individuals to appreciate and pay attention to new ideas, needs and opportunities? Fig 1. Managing life cycle of ideas in good currency

  5. 2. 4 factors : People/process problem in managing new ideas into good currency • Management of attention • • physiological limitations of human beings • • group and organizational limitations • • way to management attention • → direct personal confrontations with problem • → triggering the action thresholds of organizational participants • → channeling the action toward constructive ends 2. 4 factors : Transactions/structural problem of managing part-whole relationships • An Innovation is a collective achievement. • The transactions are deals or exchanges which tie people together within an institutional framework. • The organizational design for a process for integrating all the essential functions, organizational units, and resources. Fig 2. Linear sequential coupling compared with simultaneous Coupling of knowledge(Galbraith, 1982)

  6. 2. 4 factors : Transactions/structural problem of managing part-whole relationships • Four inter-related design principles about how to design holographic organizations(Morgan, 1985). ① self-organizing units The principle of operating an autonomous groups and choosing courses of action to solve problems ② Redundant functions The principle of developing an understanding of the innovation in addition to perform their individual assignments ③ Requisite variety The principle of making environmental scanning a responsibility of all unit members ④ Temporal linkage The principle of integrating parts of time(past, present, and future events) into an overall chronology of the innovation process

  7. 2. 4 factors : Institutional context/strategic problem of institutional leadership • Creating intra and extra-organizational infrastructures takes us directly to the strategic problem of innovation, which is institutional leadership. • Within the organization, institutional leadership is critical in creating a cultural context that fosters innovation, and in establishing organizational strategy, structure, and systems that facilitate innovation. Figure 3. Institutional and technical processes(Lodahl and Mitchell, 1980)

  8. 3. Conclusion Conclusions • To understand the process of innovation from a managerial viewpoint • 1) How do innovations develop over time? • 2) What kinds of problems will most likely be encountered? • 3) What responses are appropriate for managing problems? • • Suggestion to 4 basic concepts and 4 central problems • ⇒ conceptual framework to conduct longitudinal research on the • management of innovation Limitations • No systematic evidence to substantiate central problem, implications and proposed solutions in the management of innovation

  9. 4. Further Discussion

  10. 4. Further Discussion - IDEO case • How can we interpret 4 factors and 4 central problems in this paper with HBR-IDEO Case ? IDEO Culture/Process Brainstorming, trial and error, Deep Dive Process/ Management Frequent prototyping, Tech Box Frequent prototyping, Tech Box, Own 5 Phases process, Convergent Process/ Organization Flat Organization, Amoeboid growth, , Deep Dive Organization/ Management

  11. 4. Further Discussion - Samsung/LG • Based 4 factors and 4 central problems in this paper, what are differences between IDEO, Samsung, and LG ? • Is the Samsung and LG Innovative? If not or ambiguous, what’s the reason? Samsung LG * This comparison would be just for the creativity and innovativeness IDEO Culture Process 디자인경영센터 7개국 약 1,000명(‘11) 2006년 ‘제2의 디자인 혁명’…독창적 디자인과 유저 인터페이스 체계 구축,디자인 우수 인력 확보, 창조적이고 자유로운 조직문화 조성 Vs. Organization Management 디자인경영센터 10개국 약 650명(‘11) 디자이너들이 기획자, 엔지니어들과 같이 회의하고 좋은 발전방향을 함께 고민하면서 새로운 자극도 받아야… (이건표 LG디자인 센터장, ‘11.4월) “Quality of Innovation”

  12. 4. Further Discussion - Samsung/LG • Based 4 factors and 4 central problems in this paper, what are differences between IDEO, Samsung, and LG ? The Innovation Funnel Too Short Too Long Melissa A. Schilling(2010), Strategic Management of technical Innovation Inefficient • The matter is Time and Culture to keep the whole process • Time and Culture finally turn on Human

  13. 4. Further Discussion - Samsung/LG • Based 4 factors and 4 central problems in this paper, what are differences between IDEO, Samsung, and LG ? 비혁신기업의 혁신저해요인(중요도 4이상-5기준) 김현호 외(2009), 2009년도 한국의 기술혁신조사:서비스부문, STEPI

  14. 4. Further Discussion – Sustainability of IDEO • Does the IDEO have sustainability from an innovation resource point of view? • In this paper and HBR-IDEO, there is no consideration innovation resource • Only focus to the internal organization and competency for innovation R&D Expenditure ; Internal Funding Vs. Outsourcing Funding(2002-2007) Mil. USD Mil. USD Outsourcing Funding Internal Funding Source: Report on the survey of Research and Development in Korea-Manufacturing(2002-2007)

  15. 4. Further Discussion – Sustainability of IDEO • Does the IDEO have sustainability from an innovation resource point of view? • External Knowledge can be considered one of innovation resource Manufacturing Industry Service Industry Firm 1 Firm 2 Firm 3 Firm 1 Firm 2 Firm 3 · · · · · · · · · · · · · · · · · · · · · Firm N SS/LG IDEO · · · Firm N Is there any good idea??? Institute University Other industry firms User Open Innovation

  16. 4. Further Discussion – Sustainability of IDEO • Does the IDEO have sustainability from an innovation resource point of view? • Need to change the Innovation Funnel of IDEO? • In an open innovation point of view, how can interpret 4 factors and 4 central problems in this paper? Chesbrough(2003) • Shape or length of innovation funnel for efficiency(money, time, etc.)

  17. Thank you

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