Post on 17-May-2015
InnovationInnovation
By-Manish Kumar Singh
Introduction
The term innovation refers to a new way of doing something. It may refer to incremental and emergent or radical and revolutionary changes in thinking, products, processes, or organizations.
What is innovation? Innovation is the process and outcome
of creating something new, which is also of value.
Innovation involves the whole process from opportunity identification, ideation or invention to development, production marketing and sales.
Definitions Innovation = Invention + exploitation
(Ettlie) A new way of doing things, which is
commercialized. The process of innovation cannot be separated from a firm’s strategic and competetive context (Porter)
Adoption of ideas that are new to the adopting organization
Innovation - Goal
The goal of innovation is positive change, to make someone or something better.Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.
Innovation - Business
Innovation - Business
Innovation may be linked to:• Performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc.
Innovation – Main Skills
Association: it is a cognitive skills that allows creative people to make connections between questions, problems and ideas.Questioning: it is an ability to ask: “What if”, “why” and “why not” and challenge the answers.Close observe details: particularly the details of people´s behavior.The ability to experimenting and networking.
Dimensions of Innovation the ‘4Ps’ of
innovation
Product innovation: changes in the things (products or services) which an organization offersProcess innovation: changes in the ways in which they are created an deliveredPosition innovation: changes in the context in which the product or services are introducedParadigm innovation: changes in the underlying mental modes which frame what an organization does
Dimensions of innovation Extent of change (radical—incremental) Modality of change (product—process) Complexity of change (component—architecture) Materiality of change (physical—intangible) Capabilities and change (enhances or destroys
market/technological capabilties) Relatedness of change (replaces a firm’s existing
product or extends it) Appropriability/Imitability (difficult or hard to
hang on to) Cycle of innovation (time between discontinuities)
The innovation management process
Simple representation of the innovation process
Searching –looking for threats and opportunities for change within and outside of the organisation. Technological opportunity Changing requirements on the part of the market
Selecting – deciding (strategically from how the enterprise can develop and taking into account risk) what to respond to. Flow of opportunities Current technological competence Fit with the current organizational competence Fit with how we want to change
The innovation management process
Implement – turn potential ideas into a new product or service, a change in process. Acquiring – to combine new and existing
knowledge (available within and outside the organization) to offer a solution to the problem
Executing – to turn knowledge into a developed innovation and a prepared market ready for final launch
Launching – to manage the initial adoption Sustaining – to manage the long term use
The innovation management process
Learning – to learn from progressing through this cycle so that they can build their knowledge base and can improve the ways in which the process is managed. Restart the cycle Failure – why? Refine, improvement → next generation Learning about technology, routines &
organization
The innovation management process
Almost the same - again
Almost the same - again
SCAN Definition:
Detecting signals in the environment about potential change (market niches, technology development, etc)
Activities Scanning environment for technological, market, regulatory
and other signals Collect and filter signal from background noise Scan forward in time Process signals into relevant information for decision making
Almost the same - again
FOCUS Definition:
Selection of the various market and technological opportunities.
Inputs: (1) the flow of signals coming from the previous phase (2) the current technological base of the firm (3) the fit with the overall business strategy.
Almost the same - againRESOURCE
Definition: Combining new and existing knowledge to offer a solution
to the problem. Activities:
Invent in-house through R&D activities Create the conditions for creativity Use existing knowledge in-house Technology transfer and knowledge transfer Licensing..etc
Almost the same - againIMPLEMENT
Definition: Close interaction between marketing related activities and
technical activities to develop the idea into a marketable product or service.
Activities: Develop to maturity Technical development Development of the market Launch After-sales support
Almost the same - again
LEARN Definition
Analysing the failures and success to input the innovation process
Activities: Continuous improvement Knowledge and IC management
7 SOURCES OF INNOVATION IMPULSES
INTERNAL 1. unexpected event2. contradiction3. change of work process4. change in the structure of industry or
market
EXTERNALn Demographic changesn Changes in the world viewn New knowledge
Strategic Innovation
All sizes of businesses engage in highly successful entrepreneurship. Hence it is an activity!! At the heart of that activity is innovation.Sources of innovation:Within a company: Unexpected occurences
IncongruitiesProcess needsIndustry and market changes
Outside a company: Demographic changes Changes in perception New knowledge
Elements that can jeopardize Innovation
Poor Leadership / Organization / Communication Poor Empowerment / Knowledge Management Poor goal definition Poor alignment of actions to goals Poor participation in teams Poor monitoring of results Poor communication and access to information
Innovation - Conclusion
Innovation typically involves risk.A key challenge in innovation is maintaining a balance between process, product innovations and common sense.