Innovation Management.pptx

Dept. of MBA, Sanjivani COE, Kopargaon
402 :Current Trends in Management
Unit No 1
INNOVATION MANAGEMENT
Presented By:
Dr. S.P. Ghodake
(Asst. Prof. Department of MBA)
1
Sanjivani College of Engineering,
Kopargaon
www.sanjivanimba.org.in

Content
• Introduction To Innovation Management
• Sources Of Technology and Innovation
• Developing and Introducing New Products And Services
• Driving Intra-organizational Innovation Technology And
Innovation Strategy .
• Latest Research In Innovation Management: E.G. Knowledge
Networks, Technology Transfer, Innovation In The Digital
Economy, Retail Innovation, Financial Innovation, Eco-innovation

Introduction to Innovation Management
“Innovation management” thus refers to handling of all
the activities needed to “Introduce something new”,
which in practice means things like coming up with ideas,
developing, prioritizing and implementing them, as well
as putting them into practice.
• For example by launching new products, or by
introducing new internal processes.

Definition
• Gartner defines innovation management as a business discipline that aims
to drive a repeatable, sustainable innovation process or culture within an
organization.
• Innovation management initiatives focus on disruptive or step changes that
transform the business in some significant way.

Technological Innovations
• “Technological innovations are defined as new products
and processes and major technological modifications to
products and processes.”
• An innovation is considered performed if it is introduced
to the market (product innovation) or implemented in the
production process (process innovation).
• Innovation includes many research, technological,
organizational, financial and commercial activities.

The World's Most Innovative Companies : 2018 Rankings
Rank Company Country
12-Month Sales
Growth
Innovation Premium*
#1 ServiceNow United States 39.02% 89.22%
#2 Workday United States 36.07% 82.84%
#3 Salesforce.com United States 24.88% 82.27%
#4 Tesla United States 67.98% 78.27%
#5 Amazon.com United States 30.8% 77.4%
#6 Netflix United States 32.41% 71.23%
#7 Incyte United States 38.93% 70.59%
#8 Hindustan Unilever India 11.49% 67.2%
#9 Naver South Korea 19.36% 64.62%
#10 Facebook United States 47.09% 64.42%
Source : https://www.forbes.com/innovative-companies/list/#tab:rank

SOURCES OF INNOVATION
9

Knowledge push
• Knowledge push
• Innovation that came out from scientific
research
– R & D processes
• E.g: Intel chips
• Antibiotics
• CDs
10

Need pull
• Need Pull
• “Necessity is the mother of invention”
– Particularly important at mature stages in
industry/product life cycles
– Eg: Energy saving cars
11

Shocks to the system
• Whose needs?
– Existing customers
– New & potential customers eg: small entrepreneurs who
want to save costs
• Emerging markets
– “Bottom of the pyramid”-80% under the poverty line
– Eg: Poverty in Arica-created demand for cheap food in low
prices
12

Advertising and mass customization
• Challenge in markets-buyers want variety and
customization at the same time
• Eg: Rising individuality has opened up new market
for customized products
13

Users as innovators
• Create innovative solutions on a continuing
basis
• Eg: Tech-hobbyists keep on providing ideas on
technological innovations-new models for pc,
phones
14

Extreme Users
“Tough customers mean good designs”
• The users in the toughest environments may have
needs which by definition are at edge
• E.g: Military needs inspire more innovations within
the security industry
15

Watching Others
• Concept of benchmarking
• Eg: Korea manufacturing field that came from
the concept of “copy and develop”
16

Combination & recombination
‘Crossover’
• Combination of industries
• Eg: Nike fashionable shock-absorbing shoes-
combination of arts, health and fitness industry
17

Regulation
• Restrict certain things and opens up new ones
• Eg: New tax rules on cigarettes- restricts sales of
cigarettes, opens up new market of ‘fake cigarettes’
and aids to quit smoking
18

Futures and forecasting
• Exploring alternatives
• E.g.; Exxon and Shell exploring possibilities for
alternatives for oil and gas
19

Accidents
• Mistakes that turned out to be important
inventions
20

Developing New Products And Services
• When one considers a variety of different industries, a decline in product
innovations is matched only by a decline in market share. The importance
of innovation and how the effective management of that process can lead to
corporate success.
• To many people, new products are the outputs of the innovation process,
where the new product development (NPD) process is a sub-process of
innovation.
• Managing innovation concerns the conditions that have to be in place to
ensure that the organisation as a whole is given the opportunity to develop
new products.
• The actual development of new products is the process of transforming
business opportunities into tangible products

Dynamic competences enable innovation
• Every firm has a baseline set of routines that enable it to serve the purpose
of producing and marketing the given products and services currently in the
portfolio.
• Some firms have dynamic capabilities that relate to the innovation of
products and services, to the innovation of the production process, or to the
search and attraction of new customer segments. This enables many firms
to adapt and evolve.
• There is, then, a further level of capabilities, so-called dynamic capabilities
that relate to the
• innovation of the way innovation is pursued. These are highly creative
‘reconfigurations’ of thinking and methods for innovating.
• Examples would include: Dyson’s development of the bagless vacuum
cleaner, Pfizer’s Viagra or Tesla’s electric sports car.

A variety of perspectives from which to analyse the development of new
products
• New product development concerns the management of the disciplines involved in the
development of new products. These disciplines have developed their own perspectives on the
subject of NPD. These are based largely on their experiences of involvement in the process.
Hence, production management examines the development of new products from a
manufacturing perspective, that is, how can we most effectively manufacture the product in
question? Marketing, on the other hand, would take a slightly different perspective and would
be concerned with trying to understand the needs of the customer and how the business could
best meet these needs.
• However, producing what the customer wants may or may not be either possible or profitable.
The lack of a common approach to the development of new products is due to this multiple
perspective. the areas that are left in the dark by other perspectives.
• Usually, competition between companies is assessed using financial measures such as return
on capital employed (ROCE), profits and market share. Nonfinancial measures, such as
design, innovativeness and technological supremacy, may also be used

A variety of perspectives from which to analyse the development of new
products

Considerations when developing an NPD strategy
Ongoing corporate planning
• In large organisations this can be a very formal activity involving strategic planners and senior managers
with responsibility for setting the future direction of the business. In smaller organisations this activity may
be undertaken by the owner of the business in an informal, even ad hoc way. For many businesses it is
somewhere in the middle of these two extremes. The effects of any corporate planning may be important
and long term. For example, the decision by a sports footwear manufacturer to exit the tennis market and
concentrate on the basketball market due to changing social trends will have a significant impact on the
business.

NPD as a strategy for growth
Ansoff matrix
•
Source: Adapted from Ansoff, I. (1965) Corporate Strategy, Penguin, Harmondsworth;
(1968) Toward a Strategy of the Theory of the Firm, McGraw-Hill, New York.

Driving Intra-organizational Innovation Technology And
Innovation Strategy
• Inter-organizational collaboration is the
relationships that a firm has to external actors in a
network, such as customers, suppliers, research
institutes and partners.
• It is mainly motivated by a firm’s incentives for
enhancing new product development and innovation
by reducing internal development costs and gaining
access to resources, knowledge and alternative
delivery channels,

Intra-organizational collaboration
• Intra-organizational collaboration refers to the
interrelationships between departments, units and
individuals within a firm, for example through cross-
functional teams in projects or knowledge exchange
between individuals.
• There exist several perspectives on how intra-
organizational collaboration contributes to the
innovation output in a firm

Driving Intra-Organizational Innovation:
• Intra-organizational innovation refers to the process of generating and
implementing new ideas within a company.
• Driving intra-organizational innovation requires a combination of effective
leadership, a supportive organizational culture, and the use of innovative
technologies.
– Effective Leadership:
– Supportive Organizational Culture:
– Use of Innovative Technologies:
– Technology and Innovation Strategy:
– Identifying New Technologies:
– Evaluating New Technologies:
– Implementing New Technologies:

Effective Leadership:
• Leadership is crucial for driving intra-organizational
innovation. Leaders should create an environment
where employees feel free to share their ideas and are
encouraged to think creatively.
• They should also ensure that the company has the
necessary resources and support for innovation
initiatives.

Supportive Organizational Culture:
• A supportive organizational culture is essential for
promoting innovation within a company. The culture
should be open to new ideas, flexible, and provide a
safe space for experimentation and failure. The
company should also encourage collaboration and
cross-functional teams to promote innovation.

Use of Innovative Technologies:
• Innovative technologies can help drive intra-
organizational innovation by providing new tools and
processes for employees to use. These technologies
can help streamline processes, improve
communication, and allow employees to work more
efficiently.

Technology and Innovation Strategy:
• A technology and innovation strategy is a plan that
outlines how a company will use technology to drive
innovation and achieve its business goals.
• The strategy should include a clear roadmap for how
the company will identify, evaluate, and implement
new technologies and processes.

Identifying New Technologies:
• To identify new technologies, companies should
conduct market research, attend conferences and
industry events, and engage with technology vendors.
• They should also consider how new technologies
align with their business goals and assess the
potential risks and benefits.

Evaluating New Technologies:
• When evaluating new technologies, companies
should consider factors such as cost, scalability, and
ease of use. They should also evaluate how the
technology fits into their existing technology
infrastructure and determine the potential impact on
their business processes.

Implementing New Technologies:
• To successfully implement new technologies,
companies should develop a clear implementation
plan that includes a timeline, milestones, and metrics
for success. They should also provide training and
support for employees to ensure they can effectively
use the new technology.

Conclusion:
• Overall, driving intra-organizational innovation and
developing a technology and innovation strategy are essential
for companies to stay competitive in today's rapidly changing
business environment.
• By creating a culture that supports innovation and leveraging
innovative technologies, companies can drive growth, improve
efficiency, and achieve their business goals.

Latest Research in Innovation Management
• Knowledge Networks
• Technology Transfer
• Innovation In The Digital Economy
• Retail Innovation
• Financial Innovation
• Eco-Innovation

Knowledge Networks
• A knowledge network is a collaborative and interconnected system
that allows individuals or organizations to share knowledge and
expertise. These networks can be formal or informal and can take
many forms, including online communities, professional
associations, academic research groups, or industry consortia.
• The goal of a knowledge network is to leverage collective
intelligence, foster collaboration, and accelerate the exchange of
information, ideas, and best practices. Members of a knowledge
network can learn from one another, build on each other's work, and
solve complex problems together.

Example of Knowledge Network
• One recent example of a knowledge network is the COVID-19 Clinical Research
Coalition, which was launched in March 2020. This coalition is a global network of
clinicians, researchers, and other healthcare professionals who are working together
to accelerate research on COVID-19 treatments and vaccines.
• The coalition includes more than 50 organizations from around the world, including
the World Health Organization, Medicines Sans Frontiers, and the Welcome Trust.
• Members of the network share information, expertise, and resources to support
clinical trials and other research efforts related to COVID-19.
• Through the COVID-19 Clinical Research Coalition, members have collaborated
on a range of activities, such as developing clinical trial protocols, sharing data on
COVID-19 cases, and advocating for equitable access to treatments and vaccines.
This knowledge network has helped to speed up research and improve coordination
across different regions and healthcare systems, ultimately contributing to the
global effort to combat the COVID-19 pandemic.

Technology Transfer
• Technology transfer is the process of moving knowledge, technology, or
other intellectual property developed in one context to another context
where it can be applied and commercialized.
• In the context of innovation management, technology transfer is a crucial
step in the development and commercialization of new products and
services.
• Technology transfer can occur through various channels, including
licensing agreements, joint ventures, spin-offs, and collaborations between
companies, universities, and government agencies.
• The ultimate goal of technology transfer is to create value from innovation
by bringing new products, services, or processes to the market.

Example of technology transfer
• A recent example of technology transfer is the partnership between the biotech
company Moderna and the National Institutes of Health (NIH) in the development
of the COVID-19 vaccine. The technology used in the Moderna vaccine is based on
messenger RNA (mRNA) technology, which was initially developed by researchers
at the NIH.
• The NIH licensed the technology to Moderna, which then used it to develop its
COVID-19 vaccine. The mRNA technology allowed Moderna to develop a vaccine
in record time, and the vaccine has shown to be highly effective in clinical trials.
• This partnership between the NIH and Moderna demonstrates the importance of
technology transfer in the development of new therapies and vaccines. By
leveraging existing research and technology, companies like Moderna can rapidly
develop new products and bring them to market, ultimately benefiting patients and
society as a whole.

Innovation In The Digital Economy
• Innovation in the digital economy refers to the development and adoption
of new technologies, processes, and business models that transform the
way we live, work, and interact in the digital age.
• The digital economy encompasses a wide range of industries, including
information and communication technologies, e-commerce, social media,
online platforms, and digital services.
• Innovation in the digital economy is driven by a combination of factors,
including advances in technology, changing consumer preferences, and the
emergence of new business models. Companies that are able to innovate
and adapt to these changes are more likely to succeed in the digital
economy, while those that fail to innovate risk falling behind their
competitors.

Examples of innovation in the digital economy
• Artificial intelligence and machine learning: These technologies are
transforming industries such as healthcare, finance, and manufacturing by
enabling automated decision-making, predictive analytics, and personalized
services.
• Blockchain: This distributed ledger technology is disrupting traditional
industries such as banking and finance by enabling secure and transparent
transactions without the need for intermediaries.
• Internet of Things (IoT): This network of connected devices is
transforming industries such as transportation, logistics, and healthcare by
enabling real-time monitoring and control of physical systems.
• Augmented and virtual reality: These technologies are transforming
industries such as gaming, education, and retail by creating immersive and
interactive experiences for users.

Retail Innovation
• Retail innovation refers to the adoption of new technologies, strategies, and
business models to improve the overall shopping experience for consumers
and increase sales for retailers. It involves developing new ways of
engaging customers, streamlining operations, and improving the supply
chain to enhance efficiency and profitability. Retail innovation can take
many forms, such as the introduction of new payment systems, the use of
augmented and virtual reality, the implementation of smart inventory
management systems, and the adoption of omnichannel retailing, among
others. The goal of retail innovation is to create a competitive advantage by
delivering new and unique experiences to customers while meeting their
changing needs and preferences.

Examples of retail innovation
• Self-checkout systems: These are automated systems that allow customers to scan
and pay for their items without the assistance of a cashier, reducing wait times and
improving the overall shopping experience.
• Augmented reality (AR): AR allows customers to visualize products in their own
environment before making a purchase, giving them a more immersive and
engaging experience. For example, IKEA's AR app allows customers to see how
furniture would look in their home before making a purchase.
• Smart mirrors: Smart mirrors use technology to allow customers to try on clothes
virtually and see how they look without physically changing. This enhances the in-
store experience and helps customers make more informed purchase decisions.
• Mobile payments: Mobile payment options, such as Apple Pay and Google Wallet,
allow customers to pay for items using their smartphones, providing convenience
and reducing the need for physical payment methods.

Financial innovation
• Financial innovation refers to the creation of new financial instruments,
products, and services that aim to improve the efficiency, accessibility, and
profitability of the financial system. Financial innovation can take many
forms, including new methods of payment, new investment opportunities,
new lending products, and new risk management techniques.
• Financial innovation can be driven by a variety of factors, including
changes in technology, regulation, and consumer demand.
• For example, the rise of digital technologies has led to the development of
new payment methods such as mobile payments and cryptocurrencies,
while changes in regulation have led to the creation of new investment
products such as exchange-traded funds (ETFs) and mutual funds.

Eco-Innovation
• Eco-innovation refers to the development and implementation of new or
improved products, services, processes, and technologies that contribute to
sustainable development and the protection of the environment.
• It involves the integration of environmental concerns into innovation
processes to create products or services that have a reduced environmental
impact or promote sustainable consumption and production patterns.
• Eco-innovation aims to find solutions to environmental challenges such as
climate change, resource depletion, and pollution, while at the same time
providing economic benefits and improving the quality of life for people.
Examples of eco-innovations include renewable energy technologies,
sustainable transportation, green building materials, and eco-friendly
consumer products.

Example of Eco-Innovation
• Renewable energy technologies: Eco-innovation in this sector involves the
development and implementation of new technologies that harness renewable
sources of energy such as solar, wind, and hydro power. Examples include solar
panels, wind turbines, and geothermal energy systems.
• Sustainable agriculture: Eco-innovation in agriculture involves the development
of new farming methods and technologies that reduce the environmental impact of
farming practices and promote sustainable land use. Examples include precision
agriculture techniques, organic farming, and agroforestry.
• Eco-friendly consumer products: Eco-innovation in this sector involves the
development of products that have a reduced environmental impact throughout their
lifecycle, from production to disposal. Examples include biodegradable cleaning
products, reusable water bottles, and eco-friendly clothing made from sustainable
materials.

Thank You….

Innovation Management.pptx

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