Management of Innovation and Product Development

Inhaltsverzeichnis

1. Frontmatter

2. Understanding Innovation and its Dynamics

   1. Frontmatter

   2. Chapter 1. Innovation in Business and Society

      Marco Cantamessa, Francesca Montagna

      Abstract

      Innovation is an often used (and misused) word, which is tied closely to the substantial changes that characterize the evolution of technology and society. This chapter has the objective of providing a preliminary foundation on innovation as a social, economic and technological phenomenon, on its relationship with science, and on the main actors—public and private—that are involved. A short discussion is also provided on the relationship between innovation and geography and on the potentially negative impacts that innovation can have under societal, ethical and legal perspectives.

   3. Chapter 2. Technological Knowledge and Organizational Learning

      Marco Cantamessa, Francesca Montagna

      Abstract

      Innovation occurs thanks to the ability of humankind to produce and exploit practical knowledge. This chapter provides a discussion on the different forms of knowledge, and—following Nelson and Winter’s evolutionary theory of the firm—it shows the centrality of knowledge in studying the nature of organizations. Moreover, it provides a high-level perspective on organizational learning and on its role in determining competitive advantage. Finally, the chapter provides a discussion on creativity and on its relationship with knowledge and innovation.

   4. Chapter 3. The Many Types of Innovation

      Marco Cantamessa, Francesca Montagna

      Abstract

      Innovation is not a linear phenomenon, and this chapter has the objective of providing readers with a complete understanding of the different types of innovations that occur along the technological lifecycle. A detailed discussion is at first provided on the way with which evolutionary and revolutionary innovations alternate along s-curves, and on the way with which such innovations shape technological paradigms, viewed as the outcome of a complex interplay between supply and demand. Then, the discussion focuses on the mechanisms that can lead to—or can prevent—disruptive innovations, along with the ensuing managerial implications, both for incumbent firms and for aspiring entrants.

   5. Chapter 4. The Dynamics of Innovation

      Marco Cantamessa, Francesca Montagna

      Abstract

      This chapter focuses on the phenomena that occur along technology s-curves, looking at both demand side and supply side aspects. The dominant design model by Abernathy and Utterback is presented in detail, followed by a discussion on its variants and on a number of aspects that are emerging in recent research, from the role of vertical integration to the phenomena that typically occur in the fluid phase. Finally, the chapter introduces the topic of technological standards and provides a discussion on the associated decisions and strategies.

   6. Chapter 5. Fundamentals of Technology Forecasting

      Marco Cantamessa, Francesca Montagna

      Abstract

      This chapter provides an introduction to the field of technology forecasting, which is instrumental to most of the studies that have been presented in the first four chapters of the book. Specifically, it discusses the main approaches, quantitative and qualitative, that can be used when dealing with both revolutionary and evolutionary change.

3. Formulating an Innovation Strategy

   1. Frontmatter

   2. Chapter 6. The Many Approaches to Innovation Strategy

      Marco Cantamessa, Francesca Montagna

      Abstract

      Innovation strategy is a core part of corporate strategy. This chapter has the objective of defining a rigorous link between the main approaches and schools of thought in corporate strategy, and innovation. This connection allows the formulation of a sound innovation strategy, including considerations pertaining to intellectual property. The chapter focuses especially on the resource-based view approach, which leads to the suggestion that innovation strategy be jointly expressed as a dynamic capabilities strategy for developing competencies and as a complementary project portfolio strategy, aimed at enacting and exploiting the former. These two strands will then be described in detail in Chaps. 8 and 9.

   3. Chapter 7. Business Model Innovation

      Marco Cantamessa, Francesca Montagna

      Abstract

      This chapter focuses on the concept of the business model of a firm and on business model innovation, which is at the heart of a number of innovation strategies. The chapter focuses on the amply diffused Business Model Canvas and on its practical use within both established and startup firms. The discussion also presents the e3value modeling methodology and presents recent literature on the process by which business models can be designed.

   4. Chapter 8. Innovation Strategy as the Management of Competencies

      Marco Cantamessa, Francesca Montagna

      Abstract

      As discussed in Chap. 6, a core component of innovation strategy has to do with the proactive management of corporate competencies. This topic is discussed at first from a methodological perspective, followed by a detailed discussion on a variety of approaches that can be used for this purpose, such as internal R&D, Technology Acquisitions, Corporate Venturing, Hiring, Equity and Non-Equity Strategic Alliances, Co-Development, Sourcing R&D activity from other parties, Licensing and Complete Outsourcing. The chapter ends with a discussion on the Open Innovation paradigm, which encompasses many of the previously mentioned approaches, and on issues pertaining to its implementation in a corporate setting.

   5. Chapter 9. Innovation Strategy as Project Portfolio Management

      Marco Cantamessa, Francesca Montagna

      Abstract

      Chapter 6 showed how project portfolio management has a key role within the formulation of an innovation strategy. In fact, it allows a rigorous management of initiatives aimed at both advancing and exploiting corporate competencies. The chapter discusses the main elements relevant to the implementation of a project portfolio management system, which includes the classification of project types, the setting up of a Stage and Gate evaluation process and the different quantitative and qualitative methods that can be used to decide on project initiation and termination, along with their typical difficulties and pitfalls.

4. Making innovation happen—The Product Development Process

   1. Frontmatter

   2. Chapter 10. Organizing Product Development Activities

      Marco Cantamessa, Francesca Montagna

      Abstract

      This chapter deals with organizational issues pertaining to the management of innovation and technical development activities within firms. The discussion is based on the classic—and mostly still valid—results deriving from Tom Allen’s research, which include the use of codified knowledge, the role of gatekeepers and the influence of physical space. The discussion is enriched with recent research findings, which consider the role of innovators, the impact of contemporary information and communication technology. Finally, the chapter discusses issues pertaining to organizational design of development teams, along with their staffing in an international setting.

   3. Chapter 11. The Product Development Process

      Marco Cantamessa, Francesca Montagna

      Abstract

      The objective of this chapter is to discuss managerial approaches to the management of the product development process. At first, the chapter presents the main phases of product development and the defining features of this process, such as the lever effect, the pervasive presence of iterations and the need to balance tradeoffs associated to project cost, time and outcomes. After presenting classical approaches to the management of product development (i.e., sequential, design reviews, concurrent engineering) and the support that can be derived from information technology systems, the discussion explains the role of flexibility and the emerging approaches that is enabled by flexibility (i.e., Agile and Lean).

   4. Chapter 12. Project Management for Product Development

      Marco Cantamessa, Francesca Montagna

      Abstract

      This chapter discusses the application of project management methods in the peculiar context of product development processes. The chapter presumes a basic knowledge of project management, and focuses on the derivation of Work Breakdown Structures from the development process, on project scheduling in both cases of infinite and finite (and single and multiple) resources, and on the management of project iterations.

   5. Chapter 13. From Market Research to Product Positioning

      Marco Cantamessa, Francesca Montagna

      Abstract

      This chapter discusses the main topics pertaining to the front end of a product development process, starting from the definition of the market, going through a systematic understanding of customer needs in both B2C and B2B contexts and achieving a solid positioning with respect to customer perception and pricing. Then, the chapter discusses the issue of forecasting demand, with a special focus on the case of estimating diffusion phenomena for new technologies and associated market shares. This latter discussion will build on classical models from Bass and Kotler, and add recent research findings.

   6. Chapter 14. Specifying the Product

      Marco Cantamessa, Francesca Montagna

      Abstract

      In order to support the design of a product or service, it is necessary to translate the outcomes of Chap. 13 in technical terms, deriving precise requirements and specifications. This chapter discusses the approaches and methods that can be used to this purpose, with a special focus on customer-centered design methods, and on the definition of target costs, taking into account a lifecycle perspective and estimating experience economies.

   7. Chapter 15. Designing Products and Services

      Marco Cantamessa, Francesca Montagna

      Abstract

      This Chapter focuses on the design process that is at the heart of product development. Following Herbert Simon’s view of design as the ‘science of the artificial’, it discusses the main ways with which design has been studied from a descriptive and normative perspective. The chapter then proceeds to discussing the design of technical systems and focuses especially on the conceptual design phase, viewed as the phase in which requirements are translated into a functional design, followed by a highly creative activity, in which solution principles are identified, product concepts are proposed and then selected. Methods supporting this activity, such as TRIZ, are discussed at some length.

   8. Chapter 16. Design and Redesign of System Architecture

      Marco Cantamessa, Francesca Montagna

      Abstract

      This chapter deals with the topic of product architecture, highlighting its central role and its manifold implications at both strategic and operational level. It then discusses a few design support methods based on product architecture, such as platform design, Value Analysis and engineering, design to value and variety reduction.