Identifying success factors that support breakthrough innovation development

Abstract

Purpose and Objective of the Thesis

The purpose and objective of this thesis is to identify success factors that affect the success of the development of breakthrough innovations, and to construct a breakthrough innovation appraisal framework for a case company based on the findings. It holds both practical value to the case company, and academic value through answering to Davila et al. (2005) call for further research on how to structure the control process to support radical innovations to prosper.

Data and Methodology

This thesis follows constructive research approach (CRA). CRA studies contribute to research by solving real life problems by constructing models, plans, frameworks etc. to tackle those problems. In this thesis, the construct is the breakthrough innovation appraisal framework.

The primary source of data in the thesis are interviews that were conducted at the case company in the Spring of 2019. In addition to this, process description documents and reporting templates provided by the different divisions’ innovation functions were examined. The eventual construct is based on these, and to relevant academic literature.

Findings and Academic Contribution

The main academic contribution of this thesis is that it answers to Davila et al. (2005) call on further research by constructing and proposing a framework for it.

Main differences between breakthrough innovation projects and other, less risky, innovation projects typically lie in the fuzzy front-end of the development. The later parts of the process are more similar, as when more information about the breakthrough project is gathered, the risk level of the breakthrough project decreases through acquired information. Breakthroughs differs in the fuzzy front-end as relying on financial figures and other hard figures does not work well. More iterative and learning oriented approach is needed. The proposed framework reflects these factors.

The findings of this thesis indicate that the most productive innovator companies might have processes that are built more for successful breakthrough innovation development rather than generally for great innovation development. If this is indeed the case is left for further research.

This thesis offers also other possibilities for further research. Several other topics related to the case company’s innovation are discussed in the constructive section of this thesis.