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INNOVATION MODELS

TYPE OF INNOVATIONS

The major types of innovations are:

i. Products innovations

ii. Process innovation

iii. management innovation

iv. organization innovation

v. marketing innovation

i. Product innovation:

One that results into new or improved products or service e.g.

mobile phones, automobile (Toyota Lexus). Computers, tooth
brushes, soft drinks, clothing, wireless communication, M-Pesa,
online services, on line programmers

ii. Process innovation:

Results in improved processes in organization and they lead to

efficiencies in operations. They are found in all sectors of an
organization i.e. Human resources, manufacturing, financing and
the management department e.g. improved communication
system/improved processes of communication system e.g.
database of employees i.e. human resources information system
that will give information of the employees, manufacturing –

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automation, computer aided design, computer aided

manufacturing, manufacturing assemblies, remote systems,
Finance system accounting packages , automation receipting
Organization system

iii. Management innovation:

Innovation aimed at improving organization management system.

They include implementation of total quality management, JIT
business re-engineering (BPR)

Sources of Innovation

The unexpected success/failure includes

i. Incongruities

ii. Process needs

iii. Changes in demographics

iv. Changes in perception

v. New knowledge

The unexpected

 The unexpected success or unexpected failure can be a

source of major innovations. Unexpected success occurred
in IBM when they design machines basically meant to be
accounting machines for banks but they did not buy the
machines at all but there was unexpected success when New

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York library bought several of those machines and put them

into several users. From there business showed a lot of
interest in the computers and IBM started producing
computers for business systems.

Most of the work changed and hence the computer systems came
available for the end-users i.e. market push model

 Unexpected failure occurred when ford motor company was

a highly innovative companies but at one time the company
brand vehicle. Model failed in the market miserably.

They produce a huge vehicle in mass production but no one

wanted to buy it. The company learnt that they needed to
segment their markets and really produce cars that suited
different people i.e. production based on customer needs.

1) Incongruities

That is things are not really in harmony or when things do not

work in expectation or when there is dissonance.

In many firms when incongruities occur people begin to question

the common knowledge.

For instance, medical technology in removal of age citrates.

Doctors knew that there was an enzyme that could dissolve the
citrate but this enzyme could also dissolve other ligaments
meaning the enzyme could not be used. Therefore, they used to
remove the eye, dissolve the cotterate and then fixed it back.

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This caused a lot of questions. The doctors researched because

of the questioning of common knowledge and came-up with a
new enzyme.

2) Process needs

It is also a source of innovation and occurs when conditions in the

process dictates that something new has to be created in order to
solve a problem. For instance, American telephone and
telegraph, the company used manual switchboard for a long time
which caused a lot of traffic such that companies could not cope
and was thus branded as inefficient. The company had to
innovate an automatic switchboard other examples include;
automatic vehicles.

3) Changes in demographics

Study of world's human population characteristics e.g. income,

age for instance, Japanese robotic industry was a reaction to
change in population since young people stayed long in schools.
They had to innovate for labor and had foretold that
manufacturing industries had to suffer and therefore came-up
with robots to do the work.

4) Changes in perception

This occurs when consumer perceptions about certain

products/services charges completely e.g. viewing a glass ½ full
½ empty.

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For instance, innovations in food industries are just reactions to

consumer perception immediately every food that is seems to
cause degenerative diseases disorder, and has led to organic
foods herbal foods.

5) New knowledge

New knowledge is perhaps what many people think about or

mean when they talk about or mean when they talk about
innovation because new knowledge innovative are history
making, money making and tend to stat longer in the market they
any other innovation.

New knowledge innovations are usually research based and they

lead in the production of new products, new services, new
systems etc.

NB: Not all new knowledge innovation are large some can be
trivial and small.

Now knowledge innovations result from invention. New

knowledge based innovations have a longer lead time i.e. from
when they are developed and take to 50 years to diffuse into the
market a period that technology has not changed e.g. computers.

The above sources can be categorized into two parts i.e.

 A flash of genius i.e. people who are able to come up with

new much effort ideas with

 Purposive search i.e. firms look for opportunities to innovate

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Models of innovations

A model is a visual representation of an entity or a replica of an

actual product/service/issue

Development of innovation process models

A body of literature exists on innovation processes describing the

management and the phases of the process from idea to
commercialized product.

The innovation process models have evolved in five generations

from simple linear models to increasingly complex interactive
models (Rothwell 1992).

The five generations innovation models includes

Technology push and market pull models are the first and the
second generation models with a simple and linear sequential
process. The third generation model, the coupling model, already
recognizes interactions and feedback loops between different
elements. The fourth generation interactive model combines the
technology push and the market pull models and emphasizes also
the external linkages. The fifth-generation innovation models
perceive the innovation process as a multi-factor process, which
requires high level of interaction, networking and knowledge.
Although fifth generation models are more complex, they still

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have the same basic processes as the earlier models. (Trott 2005,
Tidd et al. 1998, Rothwell 1992).

i. Technology push

The first generation innovation process models are grounded on

the research of Joseph Schumpeter, so called godfather of
innovation studies. He states that technological innovations
introduced through new products and processes lead to
economical development (Schumpeter 1934). His view of the
innovation process is linear: it begins with inventions and ends
with innovations with monetary profits (Schumpeter 1934). These
ideas form the foundation for the linear technology push model,
also known as the science push model, illustrated in figure 6
(Roberts 1998).

ii. Market pull

The second generation innovation models challenged the

Schumpeterian linear technology push model. According to
the studies of Schmookler (1966), demand forces within
markets pulled the inventions and the innovations. The
views of Schmookler and others led to the second linear
model illustrated in figure 6, the market pull model of
innovation, which is also known as demand-led model
(Roberts 1998).
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Technology Push

Basic Technol Manufact Marketin

Science ogical uring g Sales

Develop
ment

Demand Pull

Develop Manufact
Market ment uring Sales

Needs

Figure 1 Linear models of innovation process

iii. Coupling model

A simultaneous coupling model, the third generation innovation

model, was created during 1970s, when many studies showed

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that the innovation process was much more complex than

previous linear models had described (Trott 2005, Figueroa &
Conceicao 2000). The simultaneous coupling model suggests that
the innovation process is the result of simultaneous coupling of
knowledge within all three functions: R&D manufacturing and
marketing (Trott 2005).

iv. Interactive model

The fourth generation is innovation process model, it is also refers

to as the chain-link model presented by Kline and Rosenberg), is a
modification of the previous linear models and combines both the
technology push and the market pull views (Rothwell & Zegveld
1985). It also contains similar elements as the simultaneous
coupling model (Kline & Rosenberg 1986). The model is a logically
sequential – though not necessarily continuous – process that can
be divided into functionally distinct but interacting stages
(Rothwell & Zegveld 1985). Although this interactive model
resemble the linear models, the flow of information is not
necessary linear. There are complex links and feedback
relationships within the company and also between the company
and the surrounding science - technology system (Roberts 1998).
The generation of ideas is based on three basic components:
organization capabilities, needs of the market, and science and
technology. The overall process is complicated and through
efficient management companies will be able to create successful
innovations. (Trott 2005, Rothwell & Zegveld 1985).

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v. Network model

The network models, the fifth generation models, attempt to

explain the complexity of the innovation process. One illustration
of these models is a network model introduced by Trott (2005). In
this model emphasis is put on the effective management of
different activities in the innovation process in order to manage
complexity and uncertainty. The model identifies three main
functions in an organization: marketing, research and technology,
and business planning. These are also seen as the most influential
in the innovation process. Major characteristics of the network
model are the influence of external environment and the effective
communication with external environment. Other models
representing the fifth generation models are e.g. cycle model of
Padmore et al. (1998). These fifth generation models underline
also strategic elements such as total quality control, emphasis on
flexibility and responsiveness, and faster and efficient
development (Rothwell 1994). Although the fifth-generation
models seem very complex, they still involve the same basic
elements as the previous model generations. (Trott 2005).

Innovation models have been subject to criticism. Utterback

(1986) stated that “no single set of variables will suffice to
provide a workable model or a predictive understanding of
innovation. A wider, more holistic appreciation is required of the
phenomena involved.” Also Forrest (1991) has stated that

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“innovation appears to be highly situation-related and precludes a

single theory of innovation.” Some of the presented innovation
models are better to certain industries and contexts than others.
For example, the simple technology push model can be
distinguished on the pharmaceutical industry, whereas innovation
action in the food industry would be better represented by the
demand pull models (Trott 2005). But in most organizations the
innovation process is more or less a mixture of these two. Despite
the criticism Tidd et al. (2003) argues that it is possible to find an
underlying pattern of successful innovations from different
contexts. According to the Minnesota studies of Van de Ven et al.
(2000), unpredictable setbacks and surprises are inevitable in
innovation management. Learning occurs, as the innovation
process continues, and systematic learning is a better
management method than trying to avoid setbacks altogether
(Van de Ven et al. 2000). In summary, the innovation is mostly a
management question: Success in innovation process depends
mainly on the available resources and the capabilities in the
organization to manage them (Trott 2005, Van de Ven et al. 2000,
Tidd et al. 1998).

To summarize, the innovation process models have evolved from

the simple linear models to the more complex network models.
These innovation models are general and they contain important
sub processes. For example, in the early phases of the innovation
process the idea, invention, and commercial concept is
developed. Thereafter follows new product development.
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Innovation Process

Innovation is really believed to operate in a stage like process i.e.

i. Idea generation

ii. Idea implementation

iii. Idea diffusion

The process of innovation occurs in organizations that purposely

search for innovation. It could be any organization including
research institutions.

 Idea generation: this stage starts with creating ideas and in

particular the techniques of generating those ideas.
Innovating organizations go through processes of innovation
using the following techniques.

i. Brainstorming

ii. Synthetics

iii. Attributes listing

iv. Forced relations

v. Check lists

vi. Morphological analysis

Brainstorming

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A problem/issue is presented for discussion and the group

members are supposed to solve the problem

What are the guidelines to effective brainstorming?

Synthetics

It is a brainstorming but more complex because it means/involves

bring different things into a unified connection or joining together
apparently unrelated ideas. It uses analogy and metaphor in
problem identification and analysis. The forces of synthetic are to
make the strange to look familiar and familiar to look strange.

Attributes listing

It involves listing the main attributes of an object, idea system or

even a process and then examining each of these to see how they
can be changed.

The list of attributes is used as a forecast for new ideas, vehicle

sensors, automatic gears, low emitting automobiles etc.

The method is suitable for tangible products rather that intangible

products e.g. services.

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It ensures that all possible aspects of a product are examined for

improvement.

Forced relations

It is about combining unrelated ideas or things that have nothing

in common e.g. a book and a bed led to sofa beds.

The technique takes different ideas or objects and asks question

like in how many ways can they be combined to give a new idea
or object.

Check list

Almost similar to attribute listing based on adding a set of

questions to spur creativity. Questions like where, why, how,
what etc may be asked concerning a particular problem or
product for instance.

For instance;

i. Can we adapt? Where, how who

ii. Can it be modified?

iii. Can it be substituted?

iv. Can it be magnified?

v. Can it be minimized?

vi. Can it be re arranged?

vii. Can it be reversed?

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viii. Can it be combined?

A list is usually generated for a particular problem or product.

Morphological analysis

Similar to attribute listing but it provides alternative ideas in a

matrix set. For instance, the following is a matrix generating
ideas for transport system.

New transport system

Variables Alternatives

Travel in Air, water, land

Travel out wheels, magnetic

cussions
Travel path
reserved/shared
Energy source
fuel, gas, electricity,
Control
steam, petrol

remote/under operator

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The technique sets all variables in a matrix and tries to combine

them in a new way

Practical combinations are identified and they become source of

new ideas or solutions for innovation idea.

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