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Managing Innovation assignments plus answers for chapter 1,2,3,4,9 &10

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assigments answer for chapter 1,2,3,4,9 &10. A lot of this information comes from the book and slides! Not the answer of the professor (only ch4) the others are usually based on what he discussed in class about the assignments.

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A lot of this information comes from the book and slides! Not the answer of the professor (only
ch4) the others are usually based on what he discussed in class.

ch1: Innovation – what it is and why it matters

1.ING-Bank once presented (artikel in NRC Handelsblad) a plan. It intended to sell data on banking
transactions of their customers to other companies.

a.What kind of innovation (or dimension of innovation space according to Tidd & Bessant) would this
be from the Bank’s perspective? Four P’s: product, process, position and paradigm innovation.
Paradigm innovation would be this development be because it focusses on a new business model in
which they asked themselves: for who do we create value? In this case they step away from banking
services and go on to the collecting and selling of data of those banking services. So, you could say
that they changed the way they look at their business model and who they serve being a paradigm
innovation.

b. Why did this innovation fail? It was not excepted by their customers and law enforcement forbid
the selling of information of customers to third parties without their approval.

2. The book presents different typologies of innovation. One distinguishes using two dimensions:
changes in linkages between core concepts and innovations in core concepts (using four forms:
modular, incremental, architectural, and radical.

a. Why is it relevant to make this distinction? Successful innovation management requires that we
can get hold of and use knowledge about components but also about how those can be put together;
the architecture of an innovation. It also important to find a fit within your context (strategy and
organisation).

b. What kinds of products is this typology useful for? Especially useful for technological innovations
for products like camera’s, hardware and software.

c. What can a manager responsible for these kinds of products do (better) using this typology? Make
sure to be open for other developments outside their own trajectories. This can limit the not invented
here syndrome and mitigate negative lock in effects. Also make a balance between exploitation of
incremental innovation on short term returns and exploration of the long term viability of more
radical innovations.



Ch2: Innovation as a core business process

3. In chapter 2 Tidd & Bessant suggest that innovation success depends on (technical) resources of
the firm, and its ability to manage these resources.

A. Name two abilities/competencies: recognizing opportunities and learning from innovation
processes.
B. Explain how they contribute to innovation success. You need to be able to recognize
(externally) when technological clues present themselves that can trigger change  makes
you less reactive and more active. Learning is important to improve on your management of
routines and management of innovation projects.

4. Kodak is a brand owned by Eastman. Kodak was among the first to present a digital camera in
1975, based on their technological development. In spite of that early success, Kodak dropped

, development of their digital camera technology. Kodak went (almost) bankrupt in 2012, largely as a
result of this decision. Uses internet sources to answer these questions:

a. Why didn’t Kodak develop the digital camera? It did not believe that the digital camera would fit in
their business model and continued with their other projects.

b. What consequences did it have for its competitive positioning? It lost it’s competitive advantage
and market share to competitors who did commercialise the digital camera. Digitalisation was
disruptive innovation changing the rules of the game.
(https://www.forbes.com/sites/chunkamui/2012/01/18/how-kodak-failed/#231c12e66f27)

c. How did Kodak try to prevent bankruptcy? They bought Sterling Drug to move to the chemical
industry feeling that it was a industry close to their core competencies  failed and had to sell
Sterling for half the price. Stayed in their traditional view until 2007.



Assignments MI Ch. 3 Building the innovative organization

1. Nelson & Winter develop the notion of organizational routines to help explain the behaviour and
evolution of organizations. Which of the following is not a characteristic of routines:

A. Regular and predictable.
B. Collective, social and tacit.
C. Easily observable and measured.
D. Guide cognition, behaviour and performance.

2. High involvement and effective teamwork are both important building blocks of an innovative
organization. Describe what they entail, why they are important and how they are related. High
involvement is making sure that all people are actively involved with continues improvement. Tidd
and Bessant developed a 5 stage model for HII (high involvement in innovation) 
natural>structural>goal oriented>proactive/empowered>full capability. Effective teamwork is about
working efficiently and effectively to a common goal/purpose (not the same as a group!). cross
functional teams are used a lo to work with complex problems in which different sets of knowledge
and skills are needed. To get the most out of those teams you need high involvement in which teams
can work on their own ideas and solutions making them empowered. (not discussed in lecture)

3. Organizational culture is important for innovation, but an innovative organizational climate is
preferable. Why? Because it is about the recurring patters of behaviour attitudes and feelings that
characterise life in an organisation. You need an innovative climate to create routines that attribute
to the successfulness of innovation projects like trust and openness, challenge and involvement,
support and space for ideas. Create organisational slack. It is far more tangible and normative than
culture. (not discussed in lecture)

4. How manageable is the innovativeness of a firm? To some extend is building an innovative
organisation and setting flexible but guiding strategy targets of help to support the successfulness of
innovations. It is however not 100% manageable. (notes from lecture)



Assignments IM 18-19 Ch 4 Developing an innovation strategy

1. Firms generally follow one of two main types of strategies: a rationalist strategy or incrementalist
strategy. Describe the difference between these two strategies. The incrementalist strategy assumes

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