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.