Abstract Total Innovation Management (TIM)can be considered simply the mutually reinforcing innovation in all elements of an organization’s business system,by everyone,everywhere,all the time.We analyze HP’s innovation history and find that HP embodies all of the basic principles of TIM.This pro-vides preliminary evidence for the universality of TIM.A longitudinal analysis indicates that HP also embodies the flexibility of TIM.
Keywords Total innovation management ÆHP
JEL Classification
O321Introduction
The theory of TIM was first formally articulated in 2002(Xu,Yu,Zheng,&Zhou,2002).TIM emphasizes that enterpris need innovation not only in technology,but in all key parts of the business—strategy and marketing innovation,business pro-cess innovation,organization innovation,institution innovation,and culture inno-vation.We are therefore considering the technological innovation as the core with the support of innovations in other related areas to be a central theme.In addition,This paper was under the project #70372018supported by NSFC.
M.Menke (&)
Hewlett–Packard Company,1501Page Mill Road,Palo Alto,CA 94304-1126,USA
Q.Xu ÆL.Gu
School of Management,Zhejiang University,20Yugu Road,Hangzhou,Zhejiang 310027P.R.China
e-mail:sbaxuqr@dial.
L.Gu
e-mail:guliangfeng@ 123
J Technol Transfer (2007)32:49–62
DOI 10.1007/s10961-006-9005-z
An analysis of the universality,flexibility,and agility
of total innovation management:a ca study
of Hewlett–Packard
Michael Menke ÆQingrui Xu ÆLiangfeng Gu
Published online:1November 2006ÓSpringer Science+Business Media,LLC 2006
50M.Menke et al. TIM also incorporates innovation by everyone,at all times and in all places(Xu et al.,2002).The intention of TIM is the synergy of all innovation elements and dimensions to create greater value than isolated innovation in individual elements alone.
Beyond the initial development of the TIM model including two articles in this special issue(Xu et al.,forthcoming;Xu,Zhu,Zheng,&Wang,forthcoming),the TIM theory still needs to provide clear answers to the following questions.
What is TIM’s effective range of applications?Is it a regional,developing-country approach or is it globally relevant?When does an enterpri need TIM?Is tech-nology innovation always the core element?Or does the core element change according to an enterpri’s stage of development and the external environment?
To explore the questions,this paper will analyze the innovation history of Hewlett–Packard(HP),a U
S-bad multi-national technology company—one of the early innovators of the Silicon Valley.The example of HP will show that the basic tenets of TIM apply globally.We alsofind that at HP there exists the synergy among different innovation elements and a dynamic innovation core TIM with synergy and flexibility is esntial if an enterpri wants to become an‘‘evergreen tree of inno-vation’’like HP.
The paper is organized as follows:Section2describes HP as it looked in2004; Sect.3asss HP’s innovation practices within the TIM framework,providing some validation of TIM from the perspective of an international organization;Sect.4 discuss the evolution of HP’s innovation practices,showing the considerable applicability of TIM;Sect.5,by comparing HP and Haier,analyzes the differences in TIM implementation that depend on the background and behavior of leaders,as well as the climate for organizational learning.
2HP innovation
Bill Hewlett and David Packard founded the Hewlett–Packard Company(HP)in 1939.They introduced many important innovations in enterpri management,such as open corporate culture(OCC),management by walking around(MBWA),and management by objective(MBO).With th
eir belief that‘‘everyone in an organi-zation wants to do a good job,’’they also changed the traditional enterpri man-agement assumptions about employees.At the same time,HP grew revenue from US$60million in1960to US$31.5billions in1995through its innovative activities.In the following,we will analyze some of the business innovations,chronologically, according to the framework of TIM.
焜黄华叶衰
2.1Strategy and marketing innovation
The most important strategies in HP’s history are the rational objective strategy, open culture and trust strategy,and technology innovation strategies.Its strategies are also cloly related to market behaviors.HP’s strategies in different time periods are outlined in Table1and described as follows.
1940s:This was the period of company creation.For a new company,survival is the most important focus.HP’s open culture and belief in employees were tacit strategies,becau they did not come from management theory or written policies, but rather from the life experiences,attitudes and confidence of Bill Hewlett and 123
A ca study of Hewlett–Packard51
Table1The timeline of HP’s strategy and marketing innovations
Time Strategy innovation Marketing innovation
1940s Survival strategy Low price and high quality of products Open culture and trust strategy
1950s Strategy of organization Diversification of products
1960s Globalization strategy Global marketing
1970s Technology leading strategy Leading the electronic calculator market 1980s Technology leading strategy Entering the Chine market
Leading personal printer market
1990s Transition strategy Returning to PC market
2000s Adaptive enterpri strategy Staying clo to customers
苦瓜汁怎么做Source:Information compiled from‘‘The HP Way’’(Packard,1995)and
David Packard.From the beginning,this helped HP to form a tight core of company leaders and cooperate as a team for product invention,innovation,and production. The prices of HP’sfirst product
s,such as the resistance–capacitance audio oscillator (HP200A),an electronic instrument ud to test sound equipment,were less than one third of rivals’products,with equivalent quality.In the US in the1940s,products of thefledgling company won acceptance among customers,such as engineers and scientists.
1950s:The organizational strategy consisted of talent cultivation and the trans-formation of HP into a public company.Talent cultivation enabled more than400 HP engineers to obtain master’s or doctor’s degrees from Stanford University, providing very important human resources for HP’s future development.HP’s transformation into a public company in1957provided capital for fast development of the company,with very little debt.Simultaneously,diversification of products helped HP rapidly expand and diversify its markets.HP also embarked on the path to globalization by establishing manufacturing and marketing operations in Europe in1959.
1960s:The company continued its expansion overas,forming veral subsidiary companies.Early in the decade it expanded into Asia with a Japane joint venture. HP entered the Asian market by forming itsfirst joint venture,Yokogawa Hewlett–Packard(YHP),with Yokogawa Electric Works,in Tokyo,Japan.By1963,overas sales already accounted for18%of HP’s business;the largest foreign markets were Western Europe,Canada,and Japan.
1970s:Guided by the technology leadership strategy,HP cho electronic calcu-lators over further development on the mainframe.This strategy made HP the global leader in the electronic calculator market.
1980s:HP ud the same technological leadership strategy in the printer industry. Its ries of inkjet and lar printers made HP a widely known company all over the world.In the ca of lar printers,HP developed a highly productive partnership to develop products bad on Canon’s lar technology.Simultaneously,HP’s precision RISC architecture microprocessors,embodied in the HP9000family of rvers,gave HP a strong technology-bad position in the emerging computer rver industry.
1990s:This was a very important decade.Major technological advances continued in color printing and imaging,as well as in computing.The strong development of the business was critical to smoothing the process of transition.The rapid ri of the Internet created both opportunities and challenges for HP.As electronic
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52M.Menke et al. calculator products,a growth business in the1970s and1980s,entered the mature p
ha,HP successfully refocud on personal computer(PC)products and industry-standard rvers bad on the Wintel standards.HP clod the decade by transfer-ring leadership from the business founders and homegrown leaders to itsfirst externally hired CEO.
2000s:HP’s adaptive enterpri strategy denotes that HP will be clor to cus-tomers,adapt to the competitive environment of global markets,and emphasize efficiency of business management and reduction in the cost of internal manage-ment.Senior management is measured by a balanced scorecard that includes metrics for improving the total customer experience.In2002,HP merged with Compaq Computer to achieve a world-class cost structure and market leadership positions in nearly all of its business categories.
2.2Traits of HP’s technology innovation
In Table2,we focus mainly on HP’s product innovation.(We do note that HP has carried out very effective process innovation in such products as oscilloscopes, electronic calculators,and personal printers.)However,what is astonishing is that almost all aspects of technology innovation can be found at HP.
Product portfolio innovation:HP OfficeJet personal printer–fax–copier is the integration of personal pr
inter,fax,and copier.
Product and process portfolio innovation:The HP Deskjet5550,featuring up to six-ink printing and4,800-optimized dots-per-inch technology,surpass both the photo quality and fade resistance(up to73years,more than twice as long as most traditional prints)of traditionally procesd photographs.
Independent innovation:HP invented the high-speed frequency counter(HP 524A)in1951.
Secondary innovation:HP’s printer innovation is the optimal ca of condary innovation.In1958,in itsfirst acquisition,HP bought F.L.Moley Company of Pasadena,California,a producer of high-quality graphic recorders.This was HP’s entry into the plotter industry,the forerunner to HP’s printer business.Since the 1980s,HP’s ries of successful innovations bad on plotter technologies made it the market leader.Its most famous products are the HP LarJet printer and the HP DeskJet printer.
Customer innovation:For most of its history,HP produced many products to help scientists and engineers do their work.Since HP was also a company that included many scientists and engineers,they realized that products designed to solve internal colleagues’problems would probably
雷锋做好事alsofind a good external market.This has been described as the‘‘next bench syndrome’’and was one of the primary ways HP got‘‘customer’’input.The importance of customer demands and requirements to HP’s technology innovation is stresd in the book‘‘The HP Way’’(Packard,1995).
Supplier innovation:The original design technology for HP’s electronic calculator came from an engineer,Tom Ausben,who worked at a mechanical calculator manufacturer.Tom failed to ll his design to many companies.When he demon-strated it to HP,HP formed a rearch team to collaborate with Tom to develop this technology.HP’s subquent ries of technological innovations made electronic calculators one of HP’s most famous products(Packard,1995).
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Table2The timeline of HP’s technology innovations舍不得放手
Time Product innovation Important process innovation 1940s Enters the microwavefield with
signal generators
1950s 1.Invents the high-speed frequency
金鸡颗粒counter(HP524A)
2.Produces itsfirst oscilloscopes:models
130A/150A
3.Enters the business of plotters,a precursor
to HP’s printer business,by itsfirst
acquisition
1960s 1.Medical equipment with purcha
of Sanborn Company
自制超轻粘土2.Highly accurate HP5060A
cesium-beam atomic clocks
3.Expands its measuring and testing experti
into the area of chemical analysis with the
acquisition of F&M Scientific Corporation
4.HP’sfirst computer,the HP2116A
5.Introduces the world’sfirst desktop scientific
calculator,the HP9100A
6.Time-shared operating system
on a minicomputer
1970s 1.Introduces thefirst minicomputer to be bad on4K dynamic random access
memory chips(DRAM)instead of
magnetic cores 1.Personal computing with the HP-35,the world’s first scientific handheld calculator
2.Simplifies instrument systems by creating a standard interface HP-IB(interface bus)2.First electronic calculator
to print Japane characters 3.The world’sfirst programmable pocket calculator,the HP-65
1980s 1.First personal computer,the HP-85
2.Thefirst lar printer that is fast
and inexpensive enough for u outside
of a central computer room
3.Electronic mail system
4.HP9000technical computer with32-bit
回收垃圾‘‘superchip’’technology—thefirst
‘‘desktop mainframe’’
5.First handheld computer,the HP-75C
6.Personal printer,HP ThinkJet
7.Personal desktop HP LarJet printer
8.Introduce a precision architecture bad
on reduced instruction t computing(RISC)
9.HP’s DeskJet printer,thefirst mass-market
inkjet printer
1990s 1.HP95LX palmtop PC 1.Color DeskJet500C
2.Collaboration with Intel to develop a common64-bit microprocessor architecture 2.HP Corporate Business Systems—nine HP3000and HP 9000computing systems with mainframe performance
3.HP OfficeJet personal printer–fax–copier 3.HP OmniBook300,
a‘‘superportable’’personal
computer
4.World’s brightest LED(light-emitting diode)4.Jornada PDA(personal digital assistant)
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A ca study of Hewlett–Packard53
Collaborative innovation:The first major collaboration was the highly successful partnership with Canon in lar printing,which has thrived for over two decades.In the 1990s,HP began collaboration with Intel to develop a common 64-bit micro-processor architecture for the computers of the 21st century.This work drew on years of HP Lab rearch eking to create a replacement for PA-RISC processors.Known originally as IA-64,and now called Itanium,the new processor debuted in 2001.
Besides the characteristics of technology innovation just outlined,there are two other traits,relative low investment and high success rate,that can’t be reasonably explained within prent technology innovation theories.The are analyzed in the next two ctions.
2.3Organization and institution innovation
David Packard believed that management by objective (MBO)is the core of organization management and is completely different from objective management (OM).The definition of MBO is communicating overall objectives clearly and giving employees the flexibility to determine the best ways to work toward tho objectives within their own areas of responsibility.This is quite different from OM,which attempts to normalize all behaviors and control the actions of employees on the job (
Packard,1995).
Divisionalization was an early successful organization innovation of HP at the end of the 1950s (e Table 3).It was well adapted to HP’s original product portfolio of test and measurement instruments,and allowed fast firm growth.It retains the autonomy and agility of small companies,responding to market demands quickly,and also effectively avoids the overly bureaucratic structure typical of large com-panies.Although a division structure works well for product lines with clear boundaries,it doesn’t em well suited to systems engineering business,such as computers.When the organization structure did not match business needs and led to bureaucratization,resulting in disappointing progress in the computer field in the 1980s,HP obtained good results by flattening the organization structure at the beginning of the 1990s.From 1990to 1993,HP’s price per share quickly ro from US$25to US$70.
The most important institutional innovations were carried out in HP’s first two decades,as shown in Table 3.In later decades,HP made only a few supplemental changes.Foresighted,stable institutions plans strongly supported an ‘‘open corpo-rate culture,’’helped to build trust and teamwork among managers and staff,and led Table 2continued
Time
Product innovation Important process innovation 2000s 1.High-end Superdome rver line
1.HP introduces systems and rvices bad on the new Itanium processor
2.The world’s first eight-ink consumer
photo printer,the HP Photosmart
7960
2.HP Deskjet 5550,which features up to six-ink printing and 4,800-optimized dots-per-inch (dpi)technology
3.HP DVD Movie Writer dc3000Source :Information compiled from ‘‘The HP Way’’(Packard,1995)and 12354
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