14. The Innovation Process: Sparking Creativity by Cross-Industry Analogies

From invention to innovation – the distinction of the two concepts is critical if firms are to successfully introduce new products into the market. Invention, that is, a new solution to a problem – be it a technical concept, an outline of a manufacturing process, or a service concept – only transforms into an innovation if it takes the form of a product for which the market is willing to pay. The innovation process is a structured approach that links invention and innovation and helps developing early stage ideas and concepts (i.e., inventions) to marketable products, processes, or services. Today, the innovation process is a constituting part of every successful company. With respect to the St. Gallen Business Innovation framework, the innovation process is the vehicle by which products and services as well as entire processes and business models can be systematically innovated.

In this chapter, the focus is on the early phase of the innovation process where new product ideas are generated – the very first phase in the innovation process of the St. Gallen Business Innovation framework. This phase is coined by individual and collective creativity as vital preconditions for new ideas and, therefore, for any physical product development activities. First, the innovation process in a wider sense is described with a focus on its early phase. The chapter continues by focusing on the specific use of analogical thinking in the early phase to spark creativity and increase the number of highly novel product ideas. Finally, based on four cases where analogical thinking across industry boundaries has led to successful product innovations, we describe the Cross-Industry Innovation (CII) process that entails the use of analogical thinking within the wider frame of the innovation process. The chapter concludes by providing guidelines to management practice regarding critical success factors in the CII process.