Professional Documents
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Ondej ilavsk1,*
1 Faculty of Business and Management, Brno University of Technology, Brno, Czech Republic
* Corresponding author E-mail: zizlavsky@fbm.vutbr.cz
DOI: 10.5772/56920
2013 ilavsk; licensee InTech. This is an open access article distributed under the terms of the Creative
Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,
distribution, and reproduction in any medium, provided the original work is properly cited.
www.intechopen.com Ondej ilavsk: Past, Present and Future of the Innovation Process 3
innovation is seen as a parallel process instead of as a time represented a certain competitive advantage [11]. It is
sequenced process. External sources of ideas and also necessary to consider how the reduction of the time
thoughts become more important, and the innovation left for research and development led to increased costs.
process integrates external resources as well as the This relationship was presented by Gupta, Brockhoff and
activities of different internal departments. This leads to Weisenfeld [16] in Figure 5, showing the relationship
the overlap of various functions and tasks, but mainly to between the development time and research costs. If the
substantial time savings compared with the previous research period is reduced to below the minimum of a
sequence processes [10]. function (to the left along the curve), cost increases upon
additional expenses for coordination. A similar effect
The fourth generation covers the so-called Integrated applies to the extended development time over the
(Chained) Model by Kline and Rosenberg [15], which maximum of the function (to the right along the curve).
represents a further step towards a comprehensive Additional costs also arise, especially with decreasing
innovation process actively involving research and motivation and increased variable costs (e.g., additional
existing knowledge. This model demonstrates the working time). Thanks to measures aimed at increasing the
necessity of integrating knowledge into the innovation efficiency of the innovation process, it is now possible to
process, because knowledge is not understood as a result move from a higher to a lower time/cost curve. This kind of
of scientific activities, but rather as a result of interaction parallel shift of the curve represents development cost
between the individual units of a company, the company reductions, while preserving the same time needed for
itself and its environment. development and the same costs for research. The
minimum of the new function lies at the point of low cost
The division of this model is not very innovative. It is new of research and the short time necessary for development.
in the fact that the market represents both the beginning
and the end of the innovation process. Knowledge is The following measures to increase efficiency are needed
integrated in all phases of the innovation process (mainly in the fifth generation: i) system integration with inner
in the research phase) and, therefore, considered as a organization, ii) extensive networking, iii) flexible and flat
necessary prerequisite for innovation. The market and the organizational structures, iv) mature inner data bans, and
consumer are perceived in the same way [15]. v) electronically supported product development. The
Internet is the main driver expanding the boundaries of
research and development activities in companies,
facilitating integration with the company environment
(competitors, traders, customers, suppliers, etc.) [11].
different approaches to a problem and with Figure 6. Design of an innovation process model
differentiation. It is necessary to bear in mind that
innovation must generate value for the customer as well Phase 2
as for the shareholders and employees of the company. The second phase of the innovation process, applied
Leading Czech authors [e.g., 21, 22] believe that it will be R&D, carries the hidden potential of a new idea through
necessary to divide a company into two parts: different stages of development to the final version of
A part that creates new products (development, something new. It does not necessarily have to involve
technology construction, design), produces them extensive R&D or the search for the correct sources, but
and supplies them to customers. can also be something as simple as buying a commonly-
www.intechopen.com Ondej ilavsk: Past, Present and Future of the Innovation Process 5
available product or technology licence. It requires the a number of different pieces of knowledge. Activities
sourcing of related knowledge and know-how. This related to market preparation and marketing activities
phase should involve testing the feasibility of new ideas promoting the new product must take place alongside the
in a given company, in a given time and for a given resolution of technical problems. The company must
market. This is illustrated by prototypes and eliminate uncertainty although the final product is
demonstration models. It is necessary to define who the technically excellent, there is no guarantee that customers
consumers are and what they will use the new product or will accept it. The output is an innovative product and a
service for. This may lead to the discovery that an idea is market ready for the final launch of the innovation. The
good but that it may be either ahead of its time or else not phase of applied R&D with the production phase is one
suitable for the given market. In such a case, it does not of the longest and most expensive parts of the innovation
have to be regarded as an innovation failure; the new process. As such, we must not forget the previous
idea may become a catalyst facilitating the birth of some activities, i.e., generating ideas and searching for
other new innovation. resources (especially finance, communication, strategies,
goals and assistance). Improvement in these activities can
The transistor, first presented by Bell Labs in 1948, was significantly shorten the time from the discovery of an
first mentioned only on the back of newspapers and opportunity to the launching of an innovation on the
trade journals. However, this invention completely market. It can also generate a product that will react to
transformed the second half of the 20th century and the markets needs much more efficiently.
shaped the development of 21st century industry.
Today, large numbers of these components are Phase 4
contained in microchips as essential parts of Innovation is a process starting with an idea or the
computers, the Internet, mobile phones, digital imagination and followed by various stages of
cameras, and many other everyday items used by development, issuing with implementation. Without the
people all over the world. launch of the innovation on the market, the
implementation process is not complete and the
Another example of an unsuccessful innovation is the innovation cannot be considered to be implemented. This
post-it pad. In 1968, Spencer Silver was working for an phase represents the launching of the innovation on the
American laboratory for the 3M corporation. He market, the management of its initial acceptance and
invented glue that seemed totally useless it did not sustaining its long-term acceptance and use by the
stick permanently, was much weaker than the market. All of these activities are supported by
adhesives already produced by 3M, and it came in tiny information-gathering from various sources as to whether
drops instead of a film. However, Silver sent samples the innovation solves the customers problems or yields
to his colleagues hoping that someone would find a use new uses. The key feature is marketing activity and
for his invention. The non-stick glue finally found its promotion using this acquired information or the product
purpose some years later. Art Fry, Silvers colleague, design, etc., with the aim of minimizing the adverse
was a singer in a church choir. He was looking for a attitudes of market participants towards the innovation.
note that would not slip from a tilted songbook, would During the initial phases after the innovation successfully
not damage the pages and could be moved easily. He enters the target market, the company may rely on
remembered Silvers glue and started producing the competitive advantages based on the superior quality of
first notes coated with this glue in 1974. The result was the offered product. When the product breaks through to
satisfactory. The note held to paper and other the market and starts being profitable, it is necessary to
materials, but it was easily peeled off, did not leave look further ahead and protect the positions already
marks and was reusable. A product with unexpected occupied. The further development of the innovation
potential was born. should follow after the market launch.
Phase 3 Phase 5
The described experimenting also reaches the next phase Every company needs people, materials, technologies and
of the innovation process the pre-production and energy. The effort to accelerate economic growth is often
production phase. This represents an imaginary thread in conflict with environmental protection and the
linking knowledge and the final innovated product. conservation of resources and the quality of nature and
Companies often implement innovation projects in the landscape. Attention that is given to technical,
conditions of uncertainty (we do not know the exact form security and environmental requirements will pay a firm
of the final innovation or whether the market will accept back when compared to losses due to production
it, etc.). These uncertainties are gradually replaced with limitations, penalties or other sanctions relating to
concrete findings and knowledge. Innovations rarely breaching environmental laws or regulations. As time has
relate to a single technology or a single market, but cover gone on, products have been getting much safer, and
www.intechopen.com Ondej ilavsk: Past, Present and Future of the Innovation Process 7
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