Innovation

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Innovation

  1. 1. By- Manish Kumar Singh Innovation
  2. 2. Introduction <ul><li>The term innovation refers to a new way of doing something. </li></ul><ul><li>It may refer to incremental and emergent or radical and revolutionary changes in thinking, products, processes, or organizations. </li></ul>
  3. 3. What is innovation? <ul><li>Innovation is the process and outcome of creating something new, which is also of value. </li></ul><ul><li>Innovation involves the whole process from opportunity identification, ideation or invention to development, production marketing and sales. </li></ul>
  4. 4. Definitions <ul><li>Innovation = Invention + exploitation (Ettlie) </li></ul><ul><li>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) </li></ul><ul><li>Adoption of ideas that are new to the adopting organization </li></ul>
  5. 5. Innovation - Goal <ul><li>The goal of innovation is positive change, to make someone or something better. </li></ul><ul><li>Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy. </li></ul>
  6. 6. Innovation - Business Innovation - Business <ul><li>Innovation may be linked to: </li></ul><ul><ul><li>Performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc. </li></ul></ul>
  7. 7. Innovation – Main Skills <ul><li>Association : it is a cognitive skills that allows creative people to make connections between questions, problems and ideas. </li></ul><ul><li>Questioning : it is an ability to ask: “What if”, “why” and “why not” and challenge the answers. </li></ul><ul><li>Close observe details : particularly the details of people´s behavior. </li></ul><ul><li>The ability to experimenting and networking. </li></ul>
  8. 8. Dimensions of Innovation the ‘4Ps’ of innovation <ul><ul><li>Product innovation : changes in the things (products or services) which an organization offers </li></ul></ul><ul><ul><li>Process innovation : changes in the ways in which they are created an delivered </li></ul></ul><ul><ul><li>Position innovation : changes in the context in which the product or services are introduced </li></ul></ul><ul><ul><li>Paradigm innovation : changes in the underlying mental modes which frame what an organization does </li></ul></ul>
  9. 9. Dimensions of innovation <ul><li>Extent of change (radical—incremental) </li></ul><ul><li>Modality of change (product—process) </li></ul><ul><li>Complexity of change (component—architecture) </li></ul><ul><li>Materiality of change (physical—intangible) </li></ul><ul><li>Capabilities and change (enhances or destroys market/technological capabilties) </li></ul><ul><li>Relatedness of change (replaces a firm’s existing product or extends it) </li></ul><ul><li>Appropriability/Imitability (difficult or hard to hang on to) </li></ul><ul><li>Cycle of innovation (time between discontinuities) </li></ul>
  10. 10. The innovation management process Simple representation of the innovation process
  11. 11. <ul><li>Searching –looking for threats and opportunities for change within and outside of the organisation. </li></ul><ul><ul><li>Technological opportunity </li></ul></ul><ul><ul><li>Changing requirements on the part of the market </li></ul></ul><ul><li>Selecting – deciding (strategically from how the enterprise can develop and taking into account risk) what to respond to. </li></ul><ul><ul><li>Flow of opportunities </li></ul></ul><ul><ul><li>Current technological competence </li></ul></ul><ul><ul><li>Fit with the current organizational competence </li></ul></ul><ul><ul><li>Fit with how we want to change </li></ul></ul>The innovation management process
  12. 12. <ul><li>Implement – turn potential ideas into a new product or service, a change in process. </li></ul><ul><ul><li>Acquiring – to combine new and existing knowledge (available within and outside the organization) to offer a solution to the problem </li></ul></ul><ul><ul><li>Executing – to turn knowledge into a developed innovation and a prepared market ready for final launch </li></ul></ul><ul><ul><li>Launching – to manage the initial adoption </li></ul></ul><ul><ul><li>Sustaining – to manage the long term use </li></ul></ul>The innovation management process
  13. 13. <ul><li>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. </li></ul><ul><ul><li>Restart the cycle </li></ul></ul><ul><ul><li>Failure – why? </li></ul></ul><ul><ul><li>Refine, improvement -> next generation </li></ul></ul><ul><ul><li>Learning about technology, routines & organization </li></ul></ul>The innovation management process
  14. 14. Almost the same - again
  15. 15. Almost the same - again <ul><li>SCAN </li></ul><ul><li>Definition: </li></ul><ul><ul><li>Detecting signals in the environment about potential change (market niches, technology development, etc) </li></ul></ul><ul><li>Activities </li></ul><ul><ul><li>Scanning environment for technological, market, regulatory and other signals </li></ul></ul><ul><ul><li>Collect and filter signal from background noise </li></ul></ul><ul><ul><li>Scan forward in time </li></ul></ul><ul><ul><li>Process signals into relevant information for decision making </li></ul></ul>
  16. 16. Almost the same - again <ul><li>FOCUS </li></ul><ul><li>Definition: </li></ul><ul><ul><li>Selection of the various market and technological opportunities. </li></ul></ul><ul><li>Inputs: </li></ul><ul><ul><li>(1) the flow of signals coming from the previous phase </li></ul></ul><ul><ul><li>(2) the current technological base of the firm </li></ul></ul><ul><ul><li>(3) the fit with the overall business strategy. </li></ul></ul>
  17. 17. Almost the same - again <ul><li>RESOURCE </li></ul><ul><li>Definition: </li></ul><ul><ul><li>Combining new and existing knowledge to offer a solution to the problem. </li></ul></ul><ul><li>Activities: </li></ul><ul><ul><li>Invent in-house through R&D activities </li></ul></ul><ul><ul><li>Create the conditions for creativity </li></ul></ul><ul><ul><li>Use existing knowledge in-house </li></ul></ul><ul><ul><li>Technology transfer and knowledge transfer </li></ul></ul><ul><ul><li>Licensing..etc </li></ul></ul>
  18. 18. Almost the same - again <ul><li>IMPLEMENT </li></ul><ul><li>Definition: </li></ul><ul><ul><li>Close interaction between marketing related activities and technical activities to develop the idea into a marketable product or service. </li></ul></ul><ul><li>Activities: </li></ul><ul><ul><li>Develop to maturity </li></ul></ul><ul><ul><li>Technical development </li></ul></ul><ul><ul><li>Development of the market </li></ul></ul><ul><ul><li>Launch </li></ul></ul><ul><ul><li>After-sales support </li></ul></ul>
  19. 19. Almost the same - again <ul><li>LEARN </li></ul><ul><li>Definition </li></ul><ul><ul><li>Analysing the failures and success to input the innovation process </li></ul></ul><ul><li>Activities: </li></ul><ul><ul><li>Continuous improvement </li></ul></ul><ul><ul><li>Knowledge and IC management </li></ul></ul>
  20. 20. 7 SOURCES OF INNOVATION IMPULSES <ul><li>INTERNAL </li></ul><ul><ul><li>un expected event </li></ul></ul><ul><ul><li>c ontradiction </li></ul></ul><ul><ul><li>change of work process </li></ul></ul><ul><ul><li>c hange in the structure of industry or market </li></ul></ul><ul><li>EXTERNAL </li></ul><ul><ul><li>Demographic changes </li></ul></ul><ul><ul><li>Changes in the world view </li></ul></ul><ul><ul><li>New knowledge </li></ul></ul>
  21. 21. 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 Incongruities Process needs Industry and market changes Outside a company: Demographic changes Changes in perception New knowledge
  22. 22. Elements that can jeopardize Innovation <ul><li>Poor Leadership / Organization / Communication </li></ul><ul><li>Poor Empowerment / Knowledge Management </li></ul><ul><li>Poor goal definition </li></ul><ul><li>Poor alignment of actions to goals </li></ul><ul><li>Poor participation in teams </li></ul><ul><li>Poor monitoring of results </li></ul><ul><li>Poor communication and access to information </li></ul>
  23. 23. Innovation - Conclusion <ul><li>Innovation typically involves risk. </li></ul><ul><li>A key challenge in innovation is maintaining a balance between process, product innovations and common sense. </li></ul>

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