1.2 Product, service and process innovations

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Del curso dictado por Erasmus University Rotterdam

Innovation Management

396 calificaciones

Erasmus University Rotterdam

Innovation Management

396 calificaciones

What is innovation management? How do firms bring in new business models and get new products and services to the market? Go on a nine-week journey through innovation management concepts, theories of idea generation, selection, strategy formulation and implementation in this MOOC in Innovation Management. In it, you will also learn the tools for implementing innovation projects yourself. Guided by world-class academics, you will develop an innovative mindset and expertise in how firms successfully create new ideas for marketing new products. The syllabus also includes sessions about innovation strategy, idea management and social networks. During this course, you will learn how to: • use the main innovation management terminology and concepts • explain the adoption life cycle and innovation adoption at the individual level • define creativity and explain how creativity can be stimulated • recognise and describe three types of idea management systems • explain what an innovation strategy is and why it is important • describe what a product portfolio is • explain how innovation projects should be selected and managed • explain the importance of teams, team structures and networks for innovation. Rotterdam School of Management, Erasmus University (RSM) is one of Europe’s leading business schools, and ranked among the top three for research. RSM’s primary focus is on developing business leaders with international careers who carry their innovative mindset into a sustainable future. Go to www.rsm.nl for more information. This nine-week MOOC in Innovation Management is taught in English. There is no fee to participate in the programme.

De la lección

Introduction

After this week’s studies and the associated exercise, you will understand the meaning of innovation and innovation management. Also, you will learn to identify and differentiate between various types of innovation. As a result, you will become acquainted with basic terminology that will help you to better process and understand the course content of the following weeks.

About this course4:03

1.1 What is innovation management?5:02

1.2 Product, service and process innovations6:29

1.3 Incremental and radical innovations2:48

1.4 Architectural and modular innovations5:57

Conoce a los instructores

Serge Rijsdijk
Assistant Professor
Rotterdam School of Management, Erasmus University
Jan van den Ende
Professor
Rotterdam School of Management, Erasmus University
Sandra Langeveld
Teaching and research coordinator
Rotterdam School of Management, Erasmus University
Murat Tarakci
Assistant Professor
Rotterdam School of Management, Erasmus University
Stefano Tasselli
Assistant Professor
Rotterdam School of Management, Erasmus University
Daan Stam
Associate Professor
Rotterdam School of Management, Erasmus University
Dirk Deichmann
Assistant Professor
Rotterdam School of Management, Erasmus University

[SOUND] Hi, welcome to this video.

This is the first of three videos in which we discuss different types of innovations.

Being able to recognize the different types of innovations is important

because firms have to deal with them in different ways.

In this video, we will discuss product innovations, service innovations, and

process innovations.

In the next video, we will look into this distinction between incremental and

radical innovations.

And after that, we will discuss the difference between architectural and

modular innovations.

But let's start with product service and process innovations.

The shoes that you see on this slide are product innovations.

Product innovation concerns the innovation of physical products,

products that are tangible.

In contrast to such physical products, services are generally not tangible.

Take for example a supermarket that starts to deliver groceries at

the customer's doorstep.

This delivery of the groceries, so not the groceries themselves, but the bringing of

groceries to someone's house is a new service for the supermarket.

Product innovations and

service innovations have in common that they concern the output of organizations,

output in terms of what they deliver to the outside world.

Process innovations concern innovation in how a firm conducts its activities.

Let me give you an example.

Imagine a human resource department of a firm that tracks employee performance

in paper files by collecting reports on yearly appraisal talks.

If this HRN department will move to a new system in which a manager and

employee jointly fill out a form on the appraisal talk on a computer,

then the process of keeping track of employee performance has been innovated.

So, this would be a process innovation.

Lets take a look at some other examples.

The mobile phone, motor bike, and flip flops that we saw in the previous video

are typical examples of product innovations.

Next to that, you see a screenshot of the webpage of NextToNews.

This is a service that offers online advertising space

next to certain news items.

As an additional feature, advertisements are also put next to news items

that are related to what is being advertised.

So an advertisement, for example,

a thesis printing company could be placed next to a news item on student housing.

Now providing firms with the opportunity to make online advertisement is a service,

and newly introducing this service can be called a service innovation.

Below, you see a person scanning a bar code.

Most products these days have their unique bar code.

While the bar code itself is a technology and

not a process, it has stimulated a lot of process innovation.

Not so long ago, cashiers in the supermarkets

knew practically all prices of all products in the shop by heart.

At a certain moment, however, the barcode was introduced, and

the cashiers only needed to scan the barcode.

This change in how the checkout of a shop is organized is a process innovation.

Another example of a process innovation that you see here is the assembly line of

Ford, the US car manufacturer.

You may remember this example when we discussed the definition of innovation in

the previous video.

Ford was the first to introduce the assembly line to put together their cars.

Ford built an assembly line, and instead of having a car standing on the same

location all the time, the cars moved through the factory, where each additional

component was added to the car by people who specialized in that specific task.

This leads to a much more efficient and higher quality production process.

Most important for you to know, however,

is that moving from the approach in which the car stood still in one location

to the use of the assembly line is another example of a process innovation.

Let's take a look at another example that combines product, service, and

process innovations.

In the top left corner of this slide,

you see a LED light being produced by Philips lighting.

These LED lights are used by horticulturists in the Netherlands

to grow their vegetables and flowers in greenhouses.

In addition to these LED lights,

Philips delivers LED light recipes to these horticulturalists.

Think about a tomato.

The size and taste of a tomato depends on the humidity and

temperature within the greenhouse, but also on the light.

They depend on the color of the light, the position of the LED light relative to

the tomato, and the brightness of the light.

This all influences the quality of the tomato.

Each LED light recipe describes which color, brightness, and

position of the light is best for specific vegetables and flowers.

Through these recipes, the growth of vegetables and

flowers is further optimized.

Now, if you think about this example,

would you describe the LED lights as a product, service, or process innovation?

In fact, the LED lights themselves are product innovations.

They are physical products that form the output of a firm, in this case, Philips.

Now think about the horticulturist that you see in this picture.

If he would introduce the use of LED lights and

LED light recipes in his greenhouse, would you describe that as a product innovation,

service innovation, or process innovation?

For the horticulturist, introducing the LED lights and LED light recipes in

his greenhouse would be a change in the production process of his tomatoes.

As such, the introduction of the LED lights and

recipes would be a process innovation.

That's it for this video.

In the next video, we will focus on the distinction between incremental and

radical innovations.

Thanks for watching.

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