INNOVATION MANAGEMENT WBB 10202

Genesis of Innovation
NURULIZA RASLAN UniKL - RCMP

University Kuala Lumpur RCMP Innovation Management WBB 10202

CONTENTS
Innovation in Established Organizations: Top-Down Innovation Bottom-Up Innovation Managing the Dynamic Tensions in Innovation

University Kuala Lumpur RCMP Innovation Management WBB 10202

OBJECTIVES
Upon completion of this lesson, student will able to: 1. Differentiate the Bottom-Up and Top-Down innovations. 2. Describe the managing dynamic tensions in innovation.
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University Kuala Lumpur RCMP Innovation Management WBB 10202

INNOVATION IN ESTABLISHED ORGANIZATION

In established organizations, innovation usually comes from: Top-Down Innovation Bottom-Up Innovation

University Kuala Lumpur RCMP Innovation Management WBB 10202

TOP-DOWN INNOVATION
Innovation were initiate from the top management and pass to the lower level employees. This approach takes the form of directive such as: - We will explore that new market. - We will eliminate some segment of our current product line. - We will compete in some new market segment with a new-to-market product. - We will invest in this new technology for the future.

University Kuala Lumpur RCMP Innovation Management WBB 10202

TOP-DOWN INNOVATION
Advantages: the top management set the targets and the objectives and also provide the funding. Limitation : the people resources

University Kuala Lumpur RCMP Innovation Management WBB 10202

BOTTOM-UP INNOVATION
Innovation originating someplace in the lowest level of the organization

Challenges: Taking an idea and developing it into a definable concept Limitation : It depends on a specific type of individual (persistence, has the drive and willing to put in personal time and effort toward reaching a goal).

University Kuala Lumpur RCMP Innovation Management WBB 10202

BOTTOM-UP INNOVATION
BUI provide the greatest challenges to innovators. Innovators are the people: Who think differently Who ask many questions Who have many interest Who are dissatisfied without change Who ask why not more often than why Who create problems for first-level managers Who are the lifeblood and future of the organization

University Kuala Lumpur RCMP Innovation Management WBB 10202

BOTTOM-UP INNOVATION These are the people who come up with ideas and are willing to go through the laborious process of first convincing themselves and then convincing several levels of management of the value of those ideas."

University Kuala Lumpur RCMP Innovation Management WBB 10202

INDEPENDENT INNOVATOR
Hewlett Packard and Apple Computer both began as private enterprises that grew into major corporations.
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INDEPENDENT INNOVATOR
Characteristics: They have a dream and driven to accomplish that dream. There are willing to dedicate their time and effort in pursuit of something that they think will in some way have an impact on society. They have vision and will dedicate themselves to fulfilling it.

University Kuala Lumpur RCMP Innovation Management WBB 10202

INDEPENDENT INNOVATOR
Those who are not working in the industry or a particular sector.
Innovation Photocopier Personal computer Carbon fibre, F1 racing car Internet bookstore Company Haloid Corporation Apple Computer McLaren International Amazon.com Innovator Chester Carlson Steve Jobs & Steve Wozniak Date 1938 1977
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John Barnard
Jeff Bezos

1981
1995

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INDEPENDENT INNOVATOR
To what extent were these individuals outsiders?
Chester Carlson, the inventor of the photocopier, worked for an electrical company analysing patents. Steve Jobs and Steve Wozniak the pioneering Apple II computer innovators were college drop-outs and although Wozniak worked for Hewlett-Packard, he was in calculators not computers. John Barnard the designer of the McLaren MP4, the world's first carbon-fibre racing car, was new to Formula One, having previously worked in the US on Indycars Jeff Bezos, who pioneered Internet-based retailing through the creation of Amazon.com, was a fund manager in the financial services industry.

University Kuala Lumpur RCMP Innovation Management WBB 10202

THE GREATEST INNOVATOR

University Kuala Lumpur RCMP Innovation Management WBB 10202

Innovation creates mental & emotional tension

Appointment of a new CEO or a new manager

Changes

Attempting to develop a culture that supports innovation

University Kuala Lumpur RCMP Innovation Management WBB 10202

MANAGING THE DYNAMIC TENSIONS IN INNOVATION

Innovation creates mental and emotional tension, changes create tension. Attempting to develop a culture that supports innovation creates tension. Managing the following dynamic tensions determines the level of innovation: Change and stability Creativity and routine Leading and following Freedom and constraint

University Kuala Lumpur RCMP Innovation Management WBB 10202

CHANGE AND STABILITY

No organization can undergo continual change. Normally periods of change need to be followed by periods of stability For example, introducing new products that continue to become more complex. > will require new approaches to customer education and training > necessary recruit people with new and different skills. > new technologies will require new technical competencies > entering new markets will require new knowledge of how those new markets function. Attitude begins at the top of the organization that positive attitude will be emulated throughout the organization.

University Kuala Lumpur RCMP Innovation Management WBB 10202

CREATIVITY AND ROUTINE

No individual, creative 24 hours a day or 365 days in the year. Experience teaches that periods of creativity are followed by periods of routine, which are needed to transform the idea into some form of physical manifestation. Creativity is hard work that requires dedication and a level of passion that not many people are willing to try to reach. Creativity involves integrating thought and action. Creativity without doing the doing remains only an idea. Creative people work at their craft be it art, writing or innovation. Each of these requires doing. Doing is routine.

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LEADING AND FOLLOWING

Like being creative, anyone can be a leader but few take the initiative. Leadership usually means bringing people along to a new way of thinking or recognizing what needs to be done that nobody else recognizes. Leaders are actually difficult to find. Some CEOs are leaders, but not all. Position doesnt automatically bestow capability. Innovators possess leadership qualities. Leadership is built on the foundation that different discipline are required to bring an idea to a successful conclusion. Leaders in innovation require followers disciplined and competent in their discipline with an understanding of the needs of other disciplines. Followers are thinkers in their own specific disciplines and they exercise their will on the leader.

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FREEDOM AND CONSTRAINT

Freedom places significant responsibilities on the individuals. Human all expect or want freedom to exercise our creativity and be masters of our own destiny. How much freedom can I handle? And what type of freedom do I want freedom to choose the work I do or freedom to do the assigned work in my own way? Most of the people cannot accept total freedom. Total freedom may be a wish, but its difficult to function in an environment where expectations are not defined. Innovators, who are mavericks and independent thinkers must be able to accept total freedom. Innovators accept this as a challenge. Freedom to accept an assignment and execute it in my own way presents other problems. It is absolutely necessary to develop some flexible approach of balancing freedom with some constraints.

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Example of Independent Innovators

Xerography Chester Carlson -1938
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University Kuala Lumpur RCMP Innovation Management WBB 10202

Sometimes it takes extraordinary patience, perseverance, and belief in oneself before the usefulness of an invention is finally realized. Take the case of physicist Chester Carlson, who invented the xerographic process, thereby launching what is today a multi-billion dollar industry. But for several years after patenting his process, Carlson could find no company interested in xerography. It was the invention that nobody wanted.

University Kuala Lumpur RCMP Innovation Management WBB 10202

He developed much of his patience and perseverance during an especially difficult childhood. Born in Seattle, WA, in 1906, Carlson was the only child of an itinerant barber and grew up in southern California. By age 14 he was working after school and weekends for a local printer to support the family, since his father was crippled from arthritis. His mother succumbed to tuberculosis when he was 17. Always fascinated by graphic arts and chemistry, Carlson didn't let his humble roots deter him from finishing high school and working his way through a nearby junior college, earning a degree in chemistry. He then attended Caltech, graduating two years later with a degree in physics.

University Kuala Lumpur RCMP Innovation Management WBB 10202

Unfortunately, Carlson entered the job market in the midst of the Depression, applying to 82 firms before landing a job as a research engineer at Bell Telephone Laboratories in New York City. His success was short lived and he was soon laid off because of the deepening Depression, finally securing a position with an electronics firm, P.R. Mallory & Co. He studied law at night at the New York Law School, and eventually became manager of the company's patent department. Despite the security of a steady job in uncertain times, Carlson was dissatisfied and restless, and devoted his leisure hours to the pursuit of invention.

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Around this time, he noticed that there never seemed to be enough copies of patent specifications around the office, and no quick or practical means of obtaining more copies. There were only two options: either send the patents out to be photographed, or laboriously type new ones, both of which were costly and time consuming. Carlson conceived of a device that would accept a document and make copies of it in seconds, researched various imaging processes at the New York Public Library, and eventually lit on the then little-known field of photoconductivity, specifically the research of Hungarian physicist Paul Selenyi. Carlson combined two fundamental concepts: materials with opposite electrical charges attract one another, and some materials conduct electricity better after being exposed to light.

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Carlson began conducting experiments in the kitchen of his apartment in Queens, eventually developing the fundamental principles of what he called "electrophotography", later known as xerography. His theory was that if the image of an original photograph or document were projected onto a photoconductive surface, current would only flow in the areas that light hit upon, and not in the areas of darkness, i.e., the print. If he could get dry particles to stick to a charged plate in a pattern corresponding to an image shining on the plate, he could make "dry reproduction" work. After filing a patent application in October 1937, he set up a small lab in Astoria and hired a lab assistant, a German refugee named Otto Kornei.

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It was there that the first xerographic copy was made on October 22, 1938. The two men prepared a sulfur coating on a zinc plate, and Kornei printed a notation in India ink on a glass microscopic slide: "10-22-38 Astoria." They pulled down the shade to darken the room, then rubbed the sulfur surface vigorously with a handkerchief to apply an electrostatic charge. The slide was laid on the surface, and the two pieces were placed under a bright incandescent lamp for a few seconds. The slide was then removed and lycopodium powder was sprinkled on the sulfur surface, then blown off. What was left on the surface was a near-perfect duplicate in powder of the same notation on the glass slide. After repeating the experiment several times to reassure themselves the process worked, the men made permanent copies by transferring the powder images to wax paper and heating the sheets to melt the wax.

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Carlson shopped his invention around for several years trying to find a company to develop it into a useful product, and was turned down by more than 20 companies, as well as the National Inventors Council. "How difficult it was to convince anyone that my tiny plates and rough image held the key to a tremendous new industry, "Carlson later recalled. Finally, in 1944, Battelle Memorial Institute, a non profit research organization, signed a royalty agreement with Carlson and began to develop the process. Three years later, Battelle made an agreement with a small photo paper company called Haloid (later to be known as Xerox), giving Haloid the right to develop a xerographic machine.

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Twenty-one years after Carlson made the first xerographic copy in his modest Queens laboratory, the first office copier was unveiled in 1959. The Xerox 914 copier could make copies quickly at the touch of a button on plain paper, and was a phenomenal success. Today, xerography is the foundation stone of the worldwide copying industry, and Carlson ended his years as a wealthy and much-honored man. But he remained both humble and generous, giving away $100 million of his personal fortune to charity before his death. r

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Xerox 914 Plain Paper Copier Introduced in 1959, the Xerox 914 plain paper copier revolutionized the document-copying industry. The culmination of inventor Chester Carlson's work on the xerographic process, the 914 was fast and economical. One of the most successful Xerox products ever, a 914 model could make 100,000 copies per month. In 1985, the Smithsonian received this machine, number 517 off the assembly line. It weighs 648 pounds and measures 42" high x 46" wide x 45" deep.

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XEROX COPIER

DIGITAL COPIER

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University Kuala Lumpur RCMP Innovation Management WBB 10202