Global Innovation Management

A Strategic Approach

by J. Christopher Westland

Learning Objectives

Click on the links below to find out what you will learn in each chapter.


CHAPTER 1: Innovation, Globalization and Commoditization

After finishing this chapter, you will…

  • innovation is no longer optional, but a necessary activity in every competitive business
  • understand the difference between innovation, invention, creativity and commercialization
  • understand the forces of globalization and commoditization, and identify their causes
  • be able to identify opportunities for innovation in industries undergoing consolidation and commoditization
  • understand that only innovations that ultimately will be profitable are of interest to firms
  • be familiar with the development and role of topics in subsequent chapters of the text.

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CHAPTER 2: Understanding Innovation

After finishing this chapter, you will…

  • understand features, constraints and figures of merit
  • understand how ‘long tail’ effects foster innovation in digital markets
  • understand the components of innovation
  • understand how the profitability of innovation is influenced by competences, complements, architecture and components
  • understand science, technology and innovation, and the inherent risk at each stage of maturity
  • be able to classify innovations based on the degree of impact on firm operations
  • be able to identify the main mistakes made by firms that fail in their attempts to innovate.

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CHAPTER 3: Assessing the Potential of an Innovation

After finishing this chapter, you will…

  • understand that your core capabilities consume your resources; that your innovations are responsible for generating future resources to support the acquisition of future capabilities
  • understand the steps for assessing the potential demand for an innovation
  • be familiar with the innovator’s mindset, and understand that innovation is seldom radical and completely new
  • recognize that most innovation is incremental, reconfiguring and re-differentiating existing services, business models and products
  • be familiar with the innovator’s analysis toolkit consisting of:
  • quizzing, and organization of resulting insights through mind maps
  • the consumption chain
  • the feature map.

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CHAPTER 4: Business Models

After finishing this chapter, you will…

  • be able to define a business model and know where the concept is applied in assessing an innovation
  • understand what a ‘scientific method’ for business analysis of innovation means, and that this is different from strategy
  • understand that business models fail because they fail either to tell a convincing story or to support that story with convincing financial numbers
  • understand the components of value mapping and how they are used to support a story, and generate financial projections of costs and revenues for an innovation.

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CHAPTER 5: Assessing and Managing Capabilities

After finishing this chapter, you will…

  • understand how capabilities (assets + competences) constrain the space in which we can compete effectively
  • understand the difference between radical, progressive, creative and intermediating industry innovation trajectories
  • understand that acquiring capabilities can expand your opportunities for innovation, but that they are limited by the money and people at your disposal
  • have learned that successful innovation requires the collaboration of five very different types of people: idea generators, boundary spanners, evangelists, coaches and project managers
  • recognize two sources of innovation, functional and circumstantial
  • recognize that innovations may be created in a firm’s own laboratories, but more oft en are procured from a combination of competitors’ laboratories, universities and government laboratories.

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CHAPTER 6: Service Innovations

After finishing this chapter, you will…

  • understand how the same concepts and features that are used to analyse product innovations can be applied to service innovations
  • understand service innovations in the finance field, and how they are developed and sold
  • understand service innovations in logistics and supply chain management.

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CHAPTER 7: Protecting Innovations

After finishing this chapter, you will…

  • understand the motivation and history behind intellectual property (IP) laws
  • understand the function and applicability of a patent
  • understand the function and applicability of a copyright
  • understand the function and applicability of a trademark
  • understand the function and use of trade secrets
  • know how to get started in setting up an IP strategy.

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CHAPTER 8: Entrance Strategies for Innovations

After finishing this chapter, you will…

  • understand that as markets and technologies change and evolve, your capabilities need to evolve to keep up with the changing demand for products and services
  • have learned how to decide where you will acquire new capabilities (assets and competences) based on an analysis of your existing and planned products/services by growth, profit and revenue size
  • have learned to use real options analysis to factor risk into your decisions on where capabilities will migrate in the future
  • understand the use of three particular options in developing an entrance strategy: positioning options, scouting options and stepping-stone options
  • have found out how to optimize entry through early engagement of the potential customers; the ‘first three customers’ rule.

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CHAPTER 9: Technology and the Growth of Productivity

After finishing this chapter, you will understand that…

  • every technology has a particular rate of advancement that is stable over long periods of time – this rate of progress is called technology acceleration
  • disruptive innovation and the so-called ‘innovator’s dilemma’ are a consequence of technology acceleration greater than the acceleration of consumer demand; when this occurs incumbent firms tend to be locked into existing customers, hampering their ability to adopt better performing technologies
  • organizational scaling results from the substitution or augmentation of labour with better-performing technologies
  • geographical scaling results from the replacement of physical products and transport with information.

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CHAPTER 10: Communities, Networks and Reputation

After finishing this chapter, you will understand that …

  • the action of network effects and industry standards
  • how brands and reputation signal the market concerning minimum quality standards
  • branding as a contracting vehicle for mutual trust, and community responsibility, however the community and contract are defined.

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CHAPTER 11: Financing Innovations

After finishing this chapter, you will understand…

  • that innovators need strategies to manage both the consumer market for their product and the capital markets that fund their operations
  • figures of merit, and which are most appropriate for their innovations and businesses
  • the function of the behavioural model and the strategy model in forecasting the value of an innovation and its associated business model
  • how a value cone displays risk and return
  • the choice of discount factor to compute present value.

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CHAPTER 12: Understanding and Managing Creative People

After finishing this chapter, you will…

  • understand current theory regarding the character and measurement of creativity
  • understand some of the personality traits of creative people
  • understand the demographics and personal histories common to creative people
  • be able to identify opportunities for leading creative people to do their best work
  • have learned some specific managerial methods for motivating and keeping your creative workforce.

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CHAPTER 13: Society and Innovation

After finishing this chapter, you will understand…

  • the changes being impelled by rapid innovation in economies and societies around the world
  • the role of tolerance, diversity and creativity in economic wealth
  • what governments can and cannot do to promote an innovation-based economy.

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