"Evaluation of Innovation" comes in the second sem of Banglore university MBA.

1. Prepared by Manoj Govind

2. Prepared by Manoj Govind
European Perfection in innovation Japanese Renovation is
Miniaturization

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Discomfort brings Innovation

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Six Domains that changed the world through
discomfort and grew the economy
• 1. Painters have magnified the field of imagination
• 2. Musical devices have generated a new style of business as personal and
collective hedonism through discomfort
• 3. Singers and musicians have, through discomfort, made a breakthrough in the
entertainment business. They have infused new thoughts that have heightened
collective and personal human emotions.
• 4. Sex has the power to disturb upfront, but is enjoyed secretively. It
embellishes living style and grows business through discomfort.
• 5. Through discomfort, automobiles are driving industrial evolution towards
lust.
• 6. Technology has helped to realise human fantasy through discomfort

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•Evaluation is a periodic exercise that attempts to
assess the relevance, performance, and success
of ongoing processes and completed events.
Evaluation is a more complete, cumulative, and
thorough process and a less frequent form of
reflection. It usually takes place at certain points
in time—e.g. mid‐term and summative
evaluations—and leads to more fundamental
decision

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•Effective evaluation is measuring the extent
to which targets are being met and
detecting the factors that hinder or facilitate
their realisation. It also involves establishing
cause-effect relationships about the extent
to which a particular policy ( or set of
policies)produces the desired outcome.
•SUMMATIVE EVALUVATION

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Risk in InnovationIssues:
1. Benefits and risks from innovation
2. Public perception of benefits and risk
3. Public opinion , prejudice and new technologies: social
dialogue
4. Communication and education
5. Science and scientific uncertainty
6. Risk-based vs Hazard-based policy and legislation
7. Risk assessment
8. Precautionary principle
9. Proportionality principle
10.Integration of risk and benefit

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• Initiative Risks
The familiar uncertainties of managing a project
• Interdependence Risk
The uncertainties of coordinating with complementary
innovators.
• Integration Risk
The uncertainties presented by the adoption process
across the value chain.

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Assessing Integration Risk
• Who has to adopt the solution before the customer can?
The Michelin PAX is an
automobile run-flat
tire system that utilizes a
special type of rim and tire to
allow temporary use of a
wheel if its tire is punctured.
The core of Michelin's PAX
system is the semi-rigid ring
installed onto the rim using
special equipment.

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The lesson. The failure of PAX was caused by misunderstanding how it
would affect Michelin’s “ecosystem” of automotive relationships – rather
than any misunderstanding of customer needs, inadequate technology or
losing out to competitors. Unlike earlier tyre innovations, the success of
PAX hinged on garage buy-in. But garage incentives to install the special
repair equipment depended on the number of cars with PAX installed,
which introduced a new interaction in the ecosystem. Even if PAX became
a standard on new cars, it would be many years before they would account
for a meaningful percentage of repairs – and therefore years before buying
the equipment would be attractive for garages.

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Conceptual Approach for Risk
• Risk…..” Risicare” …”To Dare”
• Features of Risk
1.It is the possibility of obtaining favourable or unfavourable
results in a future action expressed in terms of probabilities.
2. It is a possible future event whose production could cause
some losses.
3. It is the threat that an event or action to affect in a negative
manner the capacity of an organisation to achieve its planned
goals.
4. Focus on Probability of occurrence of an event
….comprehensive
( probability of risk manifestation and the consequences of
the event )

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•In defining the concept some experts have put
an equal sign between risk and threat
•A risk is an event with a higher probability of
occurrence, for which there is sufficient
information to rate the probability and
consequences
•Some concept focus only on negative events,
while others take all variable, both threat and
opportunities

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It is a problem ( situation, event etc. ) which has not yet
occurred, but can occur in the future, threatening the
achievement of agreed outcomes.
It is the uncertainty in obtaining expected results and
should be treated as a combination of probability and
impact
It is a permanent reality, an inherent phenomenon that
accompanies all activities and actions of an
organisation and that occurs or not, depending on the
conditions created for it.

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Integrated Approach to Risk
• Integrated Risk Management process is designed and
set by the management and implemented by the
whole staff with in the organisation.
• Manging risk determines organisational development,
performance growth, both generally ,
of the the whole organisation and also individual
activities

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COSO and integrated Risk Management
What Is The COSO Framework?
The COSO model defines internal control
as “a process, effected by an entity’s board
of directors, management and other
personnel, designed to provide reasonable
assurance of the achievement of objectives
in the following categories:
•Effectiveness and efficiency of operations
•Reliability of financial reporting
•Compliance with applicable laws and
regulations”
Committee of Sponsoring Organizations of the
Treadway Commission (COSO)

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• The Treadway Commission was formed amidst this
climate of scrutiny. The mission it defined for itself was
"to identify causal factors that can lead to fraudulent
financial reporting and steps to reduce its incidence.
• The Treadway Commission was jointly sponsored and funded
by five main professional accounting associations and
institutes headquartered in the United States of America

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1. Control Environment
Integrity and Ethical Values
Commitment to Competence
Board of Directors and Audit Committee
Management’s Philosophy and
Operating Style
Organizational Structure
Assignment of Authority and
Responsibility
Human Resource Policies and
Procedures
2. Risk Assessment
Company-wide Objectives
Process-level Objectives
Risk Identification and Analysis
Managing Change
3. Control Activities
•Policies and Procedures
•Security (Application and
Network)
•Application Change
Management
•Business
Continuity/Backups
•Outsourcing
4. Information and Communication
•Quality of Information
•Effectiveness of Communication
5. Monitoring
•Ongoing
Monitoring
•Separate
Evaluations
•Reporting
Deficiencies

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Factors Influencing Economic Effectiveness
1) Enhance Product Value
2) Enhance Product Utility
3) Reduce Prices
4) Reduce Production cost
5) Enhance Demand and Choice
6) Overcome competition
7) Enhance economic Growth

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Reduce Production Cost
• It lowers the overhead costs of production by generating
demand
• It keeps the track on track on reasonable fluctuations in
demand
• It helps the producer to achieve economies of reduced
storage capacity
• It enhances the sales turnover
• It ensures economies of scale in production
• It helps to reduce the cost of production capacity
• It helps to reduce per unit production costs.

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Enhance Demand and choice
• Produce unique products
• Enhance quality of products
• Providing product variety
• Effective promotional activities
• Creating research facilities of global standards
• Achieving economic of scale
• Creating effective advertising
• Selecting appropriate target group

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Post Implementation Analysis of Innovation
Projects
• Did the project fully solve the problem that it was
designed to address
• Can we take things further and deliver even bigger
benefits?
• What lessons did we learn that can apply to future
projects?

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Post-implementation Review (PIR)
• When and What
Ask for openness
Be objective
Document success
Look with hindsight
Be future-focused
Look at both positives and negatives

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The activities in Review
Conduct a Gap Analysis
Determine whether the project goals were achieved
Determine the satisfaction of stakeholders
Determine the project’s costs and benefits
Identify areas of further development
Identify lessons learned
Report findings and recommendation

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How to Review
Define the scope of review beforehand
Review key documents
Consider using independent reviewers
Use appropriate data collection
Deliver appropriate reports
Present recommendations

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Project Management Process
1. Phase Management
2. Planning
3. Control
4. Team Management
5. Communication
6. Procurement
7. Integration

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Legal Aspects of Innovation
• The National Innovation Act of 2008
• Integrated science and Technology Plan