| Preface | IX |
| Acknowledgments | XV |
1. | The Strategic Impetus for Innovation | 1 |
| The Business of Innovation | |
| Three Big Ideas | |
| Innovation Matters | |
| Management Matters | |
| Strategy Is the Key Enabler | |
| The Creative Process: Who Are the Innovators? | |
| A System of Focused Innovation | |
| Alignment and Innovation | |
| Continuous Evolution | |
Part 1 | The Business of Innovation | 23 |
2. | The Miracle of Systems | 25 |
| Systems Thinking | |
| A World of Systems | |
| The Importance of Interrelatedness | |
| Feedback Loops: The Key to Understanding Systems | |
| Related Disciplines | |
| Applying Systems Principles | |
| Developing a Structure for Managing Innovation | |
3. | A Model for Managing Innovation | 37 |
| Seeing the Challenge Clearly | |
| The Innovation Management Model | |
| Four Different Systems | |
| Clusters of Innovation Activity | |
| Combining the Model with the Clusters | |
| Uses of the Model | |
| The Context for Innovation | |
4. | Nurturing Innovation | 52 |
| Developing and Nurturing an Environment of Innovation | |
| Management Development | |
| Strategy Development | |
| Employee Development | |
| Necessity versus Opportunity | |
| Creating the Favorable Environment for Innovation | |
5. | Innovation with a Purpose | 72 |
| Developing the Capacity Needed for Innovation | |
| Strategic Focus Is Always Market Focus | |
| Communicating the Strategy to Employees | |
| Getting and Organizing Information | |
| In Search of Competitive Advantage | |
| When the Target Keeps Moving: The International Space Station Project | |
6. | Developing the Capacity to Innovate | 88 |
| Strategic vs. Tactical Innovations | |
| Getting the Innovations We Need | |
| Ten Key Areas of Innovation Opportunity | |
| Examining the Key Areas of Innovation Opportunity | |
| Developing Capability within the Innovation Management Model | |
7. | Crafting the Innovating Organization | 109 |
| What Structure Is Best? | |
| Organizing for an Innovative Future | |
| Recent Developments in Organizational Thinking | |
| Different Types of Organization Structure | |
| A Low-Tech Example of a High-Tech Challenge | |
| Upsetting Traditional Business | |
| A Hierarchy Based on Accountability Horizon | |
| Responsibility Based on Process Activity Clusters | |
| Seeing the Processes Differently | |
| The E-Friendly Organization Structure | |
| Steps in New Organization Design | |
| Revisiting the Innovation Management Model | |
| The Potential of Cost Savings | |
| Conclusion: Rethinking the Fundamental Structure of the Company | |
Part 2 | Supporting Innovation | 139 |
8. | Innovation and Organizational Policy | 141 |
| The Power of Organizational Policy | |
| What Is Policy? | |
| Sources of Policies | |
| Three Levels of Policy | |
| Supporting the Innovative Environment with Policies | |
| Planning Innovation | |
| Selecting Innovations to Pursue | |
| Funding Innovation | |
| Conclusion: Setting the Policies that Support Innovation | |
9. | Leveraging Logic | 157 |
| Logic, Critical Thinking, and the Scientific Method | |
| The Scientific Method | |
| Errors in Thinking | |
| Conclusion: Avoid Errors in Thinking to Make Better Decisions | |
10. | Coping with Serendipity | 175 |
| Studying the Entire Market | |
| Shifting the Balance of Innovation | |
| When Things Unexpectedly Go Right | |
| More Things that Get in the Way | |
| How the System Handles the Unexpected | |
| Several Alternative Ways to Capitalize on Unexpected Innovation | |
11. | Measuring and Evaluating Innovations | 186 |
| Evaluating the Corporate Innovation Strategy | |
| Evaluating Innovations | |
| A Framework for Evaluating Innovations | |
| Innovations in Evaluation | |
Part 3 | Leading Innovation | 211 |
12. | Developing and Implementing Market-Focused Innovations | 213 |
| Market-Focused Innovations | |
| From Idea to Launch | |
| Development Projects Are Projects | |
| Getting Ideas from the Market | |
| Designing the Innovation | |
| Teams: The Design Conundrum | |
| Involving External Development Resources | |
| Cost: The Final Frontier | |
| Broadening the Innovation Target Area | |
| Experimentation and Prototyping | |
| Preparing for the Physical Launch | |
13. | Exploiting Market-Focused Innovations | 234 |
| What Is Exploitation? | |
| What Does It Take to Exploit Success? | |
14. | Bridging the Gap between the Old and the New Economies | 255 |
| What Business Model? | |
| Organizing for E-Innovation | |
| Outsourcing Innovation | |
| Challenges for Innovative Organizations | |
| Conclusion | 275 |
15. | Toward the Future | 277 |
| Breaking Paradigms | |
| Understanding the White Space | |
| Service Innovation | |
| Social Innovation | |
| Technological Innovation | |
| Scientific Innovation | |
| Conclusion: Innovation as the Life Force of the Organization | |
| Bibliography | 291 |
| Index | 295 |