Total Innovation ManagementTotal Innovation Management

AA New Paradigm in New Paradigm in Innovation ManagementInnovation Management

Zaipul Anwar Bin ZainuZaipul Anwar Bin ZainudindinLecturer in Institute of Product Design & Manufacturing, Lecturer in Institute of Product Design & Manufacturing, (IPROM) Universiti Kuala Lumpur(IPROM) Universiti Kuala LumpurTel: 03-27154715, 019-3262427Tel: 03-27154715, 019-3262427Email: zaipul@gmail.comEmail: zaipul@gmail.comWebsite: http://www.zaipul.comWebsite: http://www.zaipul.comBlog: http://zaipul.com/category/blogsBlog: http://zaipul.com/category/blogsFacebookFacebook: http://www.facebook.com/zaipul: http://www.facebook.com/zaipul

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About the speaker

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OBJECTIVESOBJECTIVES

To introduce a new management To introduce a new management paradigm: Total Innovation paradigm: Total Innovation Management (TIM).Management (TIM).To increase the awareness about To increase the awareness about the importance of creativity and the importance of creativity and innovation in organisation.innovation in organisation.

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What is TIM?

““The term Total Innovation Management (TIM) is define as The term Total Innovation Management (TIM) is define as the innovation synergy among the innovation synergy among technologytechnology, , organizationorganization

and and cultureculture and oriented to building up innovation and oriented to building up innovation competencecompetence for an organisation.” for an organisation.”

Chen., Gang., Zhangshu., Zheng., Jin., Jingjiang., Liu., Qingrui., Wang., Xie., Xu., & Yong. (2007). Total Innovation Management: a novel paradigm of Chen., Gang., Zhangshu., Zheng., Jin., Jingjiang., Liu., Qingrui., Wang., Xie., Xu., & Yong. (2007). Total Innovation Management: a novel paradigm of innovation management in the 21st century. innovation management in the 21st century. The Journal of Technology TransferThe Journal of Technology Transfer, , 3232((1-21-2), 9-25.), 9-25.

What are the other “Total…” available?

TQMTQM – Total Quality Management – Total Quality Management

TPMTPM – Total Productive Maintenance – Total Productive Maintenance

TCSTCS – Total ? ? – Total ? ?

TNAWTNAW – Total ? ? – Total ? ?

TIMTIM – Total Innovation Management – Total Innovation Management

CreativityCreativity is the generation of is the generation ofnew ideasnew ideas

InnovationInnovation is the process of is the process oftransformation of creativetransformation of creativeideas into desired outputs.ideas into desired outputs.

What is Creativity & Innovation?

Who started to develop TIM?

This paradigm was developed and This paradigm was developed and popularized by popularized by Institute of Institute of

Management Science & Strategy Management Science & Strategy of Zhejiang Universityof Zhejiang University and a and a

group of scholars in American group of scholars in American advisory company of advisory company of Stanford Stanford

University University (SDG).(SDG).

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From Where did the ideas to develop TIM came from?

The ideas to develop TIM was inspired The ideas to develop TIM was inspired by the thoughts of by the thoughts of system and biologysystem and biology, , the complex and changeable the complex and changeable internet internet environmentenvironment, and the observations of , and the observations of

some leading Chinese firms and some leading Chinese firms and famous transnational companies’ famous transnational companies’ innovation practices, like innovation practices, like Haier, Haier, Legend, Baosteel, 3M and HPLegend, Baosteel, 3M and HP..

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These videos These videos showcase some of the showcase some of the products from these products from these companies.companies.

Before we begin let’s look at some of the videos from these innovative

companies

Why we need TIM?More and more enterprises find that innovation is More and more enterprises find that innovation is becoming the becoming the critical source and driver critical source and driver for enterprise’s for enterprise’s survivalsurvival and and developmentdevelopment..

The paradigm of TIM provides a basis for an The paradigm of TIM provides a basis for an upgradedupgraded, a , a more more unifiedunified and and better view better view of innovation management.of innovation management.

It’s not enough to focus on technological context of It’s not enough to focus on technological context of innovation, some innovation, some non-technological factorsnon-technological factors, such as the , such as the organizational organizational structurestructure, , cultural characteristicscultural characteristics, , marketmarket, , innovation strategyinnovation strategy, and , and management style management style may also may also have an important influence on innovation performance.have an important influence on innovation performance.

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EVOLUTION of INNOVATIONMANAGEMENT

Practice of innovation management has gonePractice of innovation management has gonethrough two stages:through two stages:

1. 1. Technology & Innovation Centered ManagementTechnology & Innovation Centered Management: : At this stage, the center task of enterprises’ innovation At this stage, the center task of enterprises’ innovation

management is to pay too much attention to management is to pay too much attention to product product innovation or process innovationinnovation or process innovation separately separately

It concentrates on products innovation first, then pays more It concentrates on products innovation first, then pays more attention to process innovation, and finally reaches the steady attention to process innovation, and finally reaches the steady balance between product innovation and process innovationbalance between product innovation and process innovation

What's more, the innovation activities only depend on the R&D What's more, the innovation activities only depend on the R&D function and R&D people, other sources of innovation are function and R&D people, other sources of innovation are generally ignoredgenerally ignored

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EVOLUTION of INNOVATIONMANAGEMENT

Practice of innovation management has gonePractice of innovation management has gonethrough two stages:through two stages:

2. 2. Portfolio innovation managementPortfolio innovation management.. At present, it is the dominant paradigm for innovation At present, it is the dominant paradigm for innovation

management both home and abroad. management both home and abroad. It concentrates on products innovation first, then pays It concentrates on products innovation first, then pays

more attention to process innovation, and finally reaches more attention to process innovation, and finally reaches the steady balance between product innovation and the steady balance between product innovation and process innovationprocess innovation

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Different types of innovation

MajorMajor

MinorMinor

EnhancesEnhances DestroysDestroys

Incremental Incremental InnovationInnovation

StrategicStrategicInnovationInnovation

Major Major InnovationInnovation

RadicalRadicalInnovationInnovation

Costas Markides, Paul A. Geroski, Racing to be 2nd: Conquering the Industries of the future, Costas Markides, Paul A. Geroski, Racing to be 2nd: Conquering the Industries of the future, Business Strategy Review, Vol 15, Issue 4, Winter 2004, p25-31, Blackwell Publishing LtdBusiness Strategy Review, Vol 15, Issue 4, Winter 2004, p25-31, Blackwell Publishing Ltd

Crafting & Executing Strategy, Thompson, Strickland & Gamble, McGraw Hill Crafting & Executing Strategy, Thompson, Strickland & Gamble, McGraw Hill

Effect of Effect of innovations innovations on on consumer consumer habits and habits and behaviorsbehaviors

Effect of innovations on established firms’ Effect of innovations on established firms’ competences and complimentary assetscompetences and complimentary assets

Forces of Innovation:Market Pull - R&D Push

Market pull looking for the best way of satisfying a newly emerging

customer demand improvement of the existing products, extension of the

existing offer or decrease of price impulses for continuous, incremental innovations or for

process innovations

Research and development push looking for commercial use of new impulses resulting

from the R&D results generating of new markets for conceptually different

products

TIM FRAMEWORK & CHARATERISTICS

There are three layers on total innovation:There are three layers on total innovation:

1) Involves innovation in all functional area, including organizational, cultural, institutional, process, etc.

2) It covers the whole space-time dimension and continuous innovation in every department by, everybody (all as innovators), at anytime to innovate, including the whole value chain innovation.

3) The innovation synergy among innovative elements.

TIM FRAMEWORK & CHARATERISTICS

The remarkable difference The remarkable difference between the traditional between the traditional

management of innovation management of innovation and total innovation is that it and total innovation is that it

breaks throughbreaks through the past the past framework of innovation framework of innovation

confinedconfined only only in R&D in R&D department.department.

TIM FRAMEWORK & CHARATERISTICS

TIM promotes tag lines such as:“NOW EVERYONE CAN INNOVATE”

“EVERYONE IS INNOVATOR”

“INNOVATE BY EVERYONE AT EVERYWHERE, ON EVERYTHING

AND AT ANYTIME”

TIM FRAMEWORK & CHARATERISTICS

TIM ELEMENTS: 1) Strategy: Organizational strategy should be

develop timely and kept in dynamic balance.

2) Technology: Technology innovation is the key source for enterprises to accumulate core competence and accordingly to obtain the competitive sustainable advantage.

3) Management: This refers to the innovation of managerial theory, thought, paradigm, mechanism, and tools, et al. For example 6 Sigma management mode of GE is one of typical management innovation.

TIM FRAMEWORK & CHARATERISTICS

TIM ELEMENTS: 4) Organization: Organizational structure must be

adjusted correspondingly according to the demand of innovation.

5) Culture: Changes in mind set and culture is the prerequisites to carry out all innovation. In 3M for instance there is a strong innovative culture to encourage innovation and tolerating failures.

6) System: System innovation means the innovation of rules and regulations about enterprise’s routine, performance evaluating, staff rewards and punishments, salary system, training and promotion and so on.

TIM FRAMEWORK & CHARATERISTICS

TIM ELEMENTS: 7) Market: Market innovation

means the innovation of marketing channel, the operational ways et al., by which to create new market, new channel and new ways, such as using Blue Ocean Strategy. (Show video of BOS)

TIM FRAMEWORK & CHARATERISTICS

It is necessary to It is necessary to synergize allsynergize all of this of this

elementselements systemically. systemically. Synergy of all the Synergy of all the

innovation agents has innovation agents has becoming the becoming the dominant dominant paradigmparadigm of innovation of innovation

management both management both native and abroad since native and abroad since 1980s, and it’s the basic 1980s, and it’s the basic approach to realize TIM.approach to realize TIM.

TIM FRAMEWORK & CHARATERISTICS

TIM SCOPE/DIMENSION:

1) Time: Enterprises must make every effort to realize 24/7 innovation (namely innovates throughout 7 days of every week, 24 hours of every day) (Stephen M. Shapiro, 2002). Innovative enterprises should encourage immediate innovation (like writers or musicians’ improvisation).

2) Places: Traditional organizational processes are based on function and specialization, which often lead to processes separate from each other. As a result, no one is responsible for the whole processes, and no one is really responsible for customers.

3) People: For implementing innovation at anytime and everywhere, it is necessary to have all the people inside and outside firms to participate the innovation. Life taught us that everyone possesses the capability to deal ,with complexity and interconnection. Their creativity and commitment are the greatest resources for innovation.

TIM FRAMEWORK & CHARATERISTICS

Let’s try to sketch the previous TIM model

What’s the different between TQM & TIM model?

Internal sources for TIM

Own R&DOwn R&D Technical divisions – design, technologyTechnical divisions – design, technology Production divisions (production, provision of Production divisions (production, provision of services)services) Marketing and salesMarketing and sales Logistics (purchase and supplies)Logistics (purchase and supplies)Guarantee and post-guarantee serviceGuarantee and post-guarantee serviceOwnersOwnersQCC and QITQCC and QIT

External sources for TIM

CustomersCustomersSuppliersSuppliersCompetitorsCompetitorsConsultants, R&D Consultants, R&D institutionsinstitutionsSchools, universitiesSchools, universitiesProfessional Professional publications, Internetpublications, InternetExhibitions, fairs, Exhibitions, fairs, specialized seminars specialized seminars and conferencesand conferences

Advertising agenciesAdvertising agenciesInvestorsInvestorsMediaMediaAuthorized testing Authorized testing laboratories, laboratories, certification agenciescertification agenciesState institutions, State institutions, public sectorpublic sectorLegislationLegislationGlobalizationGlobalization

CHARACTERISTICS OF SUCCESSFUL TIM COMPANIES:

Systematic Systematic collection of all impulses collection of all impulses that could lead to innovationthat could lead to innovationCreativityCreativity of employees of employeesAbility to evaluate Ability to evaluate the possibility of the innovation ideathe possibility of the innovation ideaGood Good team workteam workProject-basedProject-based approach and ability to manage projects approach and ability to manage projectsCooperation with external Cooperation with external expertsexperts (universities, research laboratories…) (universities, research laboratories…)Proper rate of Proper rate of risk-takingrisk-takingEmployees’ Employees’ motivationmotivation (the employees are willing to improve the (the employees are willing to improve the product and the operation of the whole company)product and the operation of the whole company)Continued education Continued education of employees of employees Ability to Ability to financefinance the innovation activities the innovation activities

TIM FRAMEWORK & CHARATERISTICS

DISCUSSIONDISCUSSION: Can you give other : Can you give other examples of successful examples of successful innovative innovative

companiescompanies? How do they do it?? How do they do it?

TIM FRAMEWORK & CHARATERISTICS

The context of TIM formation

1) Environmental impetus - The requirement of the complex and changeable Internet environments.

2) The practice needs - The requirement oftotal innovation practice in firm.

3) Cultural foundation - agree with innovative culture.

Some of TIM formation tools

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Different types of innovation

Can you suggest the type of innovation for TIM now?Can you suggest the type of innovation for TIM now?

MajorMajor

MinorMinor

EnhancesEnhances DestroysDestroys

Incremental Incremental InnovationInnovation

StrategicStrategicInnovationInnovation

Major Major InnovationInnovation

RadicalRadicalInnovationInnovationEffect of Effect of

innovations innovations on on consumer consumer habits and habits and behaviorsbehaviors

Effect of innovations on established firms’ Effect of innovations on established firms’ competences and complimentary assetscompetences and complimentary assets

TIM Policy Implications & Future Research Directions

1)1) TIM is a journey to heighten competence of TIM is a journey to heighten competence of company, not a destination of company. It company, not a destination of company. It isn’t an annual, quick fix, slogan-based isn’t an annual, quick fix, slogan-based strategy, strategy, but a long-termbut a long-term, , competence-competence-based strategybased strategy for achieving the for achieving the sustainable competitive advantage sustainable competitive advantage involving all people at every level of involving all people at every level of organization.organization.

2) TIM is about corporate survival and 2) TIM is about corporate survival and growth, therefore, growth, therefore, involvement from the involvement from the top managementtop management is important for the is important for the success of TIM implementation.success of TIM implementation.

3)3) TIM is a TIM is a long-term process of long-term process of organizational learningorganizational learning. In conclusion, TIM . In conclusion, TIM is a very significant path to reinvent and is a very significant path to reinvent and revitalize the company competing at the revitalize the company competing at the 21st century.21st century.

Summary of TIM in Mind Map

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ReferenceGarud, R, and K Munir. "From transaction to transformation Garud, R, and K Munir. "From transaction to transformation costs: The case of Polaroid's SX-70 camera." costs: The case of Polaroid's SX-70 camera." Research PolicyResearch Policy 37, 37, no. 4 (2008): 690-705.no. 4 (2008): 690-705.Carr, Kathleen. Carr, Kathleen. Polaroid Manipulations: A Complete Visual Guide Polaroid Manipulations: A Complete Visual Guide to Creating SX-70, Transfer, and Digital Prints (Photography for to Creating SX-70, Transfer, and Digital Prints (Photography for All Levels: Intermediate)All Levels: Intermediate). london: Amphoto Books, 2002.. london: Amphoto Books, 2002.Coupland, Douglas. Coupland, Douglas. Polaroids from the DeadPolaroids from the Dead. New York: Harper . New York: Harper Perennial, 1997.Perennial, 1997.Iizuka, Naomi. Iizuka, Naomi. Polaroid StoriesPolaroid Stories. Woodstock: Dramatic Pub Co, . Woodstock: Dramatic Pub Co, 1999.1999.Nicholson, Brian. "Transaction Costs and Control of Outsourced Nicholson, Brian. "Transaction Costs and Control of Outsourced Accounting: Case Evidence from Britain and India." Accounting: Case Evidence from Britain and India." Social Social Science Research Network Working Paper SeriesScience Research Network Working Paper Series 37 (2006): 16. 37 (2006): 16.

Other online references used: http://www.wikipedia.com, Other online references used: http://www.wikipedia.com, http://www.jbs.cam.ac.uk/interactive/expert_comment/,http://www.jbs.cam.ac.uk/interactive/expert_comment/,http://www.polaroid.comhttp://www.polaroid.com