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oIt is an idea, practice or object that is
perceived as new by an individual or other
unit of adoption.
oIt is a use of new knowledge to offer a new
product or service that customers want. Thus,
it is
“Innovation is the search for and the
discovery, developed, improvement, adoption
and commercialization of new processes, new
products and new organization structures
and procedures.”
OTHERWISE THEIR
SURVIVAL CHANCES
ARE SERIOUSLY
THREATENED
ORGANIZATION
PREPARE
THEMSELVES TO
INNOVATE ON A
CONTINUING BASIS
TURBULENT AND
RAPIDLY CHANGING
ECONOMY
Concept
Development
Implementation
PROJECT
START
CONCEPT
FROZEN
MARKET
INTRODUCTION
Concept
Development
Implementation
PROJECT
START
CONCEPT
FROZEN
MARKET
INTRODUCTION
Open Model For Innovation
Closed Model For Innovation
Architectural
Innovation
Change in
Product
Structure
Modular
Innovation
Change in
Component
Technology
Steam Engine
of Car
Fuel Engine
of Car
Recognizing or scanning the environment.
Aligning the overall business strategy &
proposed innovation.
Acquiring technology from outside.
Generating technology in-house.
Exploring & selecting the most suitable
response to the environment.
Executing & implementing innovation.
Learning lessons for improvement.
Developing the organization.
INNOVATION OCCURS AT
THREE LEVELS
NATIONAL LEVEL
ENTERPRISE LEVEL
INDIVIDUAL LEVEL
GOVT. POLICIES &
SUPPORT
ENTERPRISE
POLICIES, SUPPORT
& INITIATIVES
INDIVIDUAL &
GROUP
INNOVATION
ACTIVITIES
SEARCH SELECT IMPLEMENT
LEARN
T I M E
ORGANIZATIONAL PROCESS FOR
INNOVATION MANAGEMENT
Market Learning
Effectively Building
Business Models
Creating a Cause
& not a business
Designing an open
market for :Ideas,
Capital, Talent
Listening to New
Voices
Setting Unreasonable
Expectations &
Stretching the
Business Definition
Building
Partnership and
Alliances
Lowering the risks
of
experimentation
Paying the
Innovators Well
One of the most prominent programmatic approaches
to innovation currently in use.
It is different from building layers of competitive
advantages & does not means segmenting market &
accommodating customer needs.
It’s main focus is on offering those products &
services which creates a superior buyer value in
existing markets & enables a quantum leap for the firm
to create new markets.
Value Innovation also differs from technology
innovation. New technology developed does not
becomes a value innovation unless it is cheap enough
for MASS BUYERS.
Three Basic
Building Blocks
of Strategy
Conventional
Focus
Value Innovation
Process
Competition Outperforming the Seeking Radically Super
Competition value to capture the en
mass market
Customers Retaining & better Targeting the mass of buyers by
satisfying existing following non-customers closely
customers & willingly losing some
existing customers
Corporate Leveraging & extending Willing to combine
Capabilities the current capabilities a company
of with other companies capabilities
 External Barriers
- Market-Related Barrier
- Government & its Policies
- Others (Technical, Societal, & Inter
Organizational Barriers)
Internal Barriers
-People Related
-Structural
-Strategy Related
• Clearly articulated &
shared sense of purpose
• Stretching strategic
intent
• Top management
commitment.
SHARED
VISION,
LEADERSHIP &
THE WILL TO
INNOVATE.
• Encouraging creativity
• Enabling learning &
interaction
• Balancing between
‘organic & mechanistic’
APPROPRIATE
CULTURE
HOW TO OVERCOME THESE BARRIERS
CONTD.
• Promoters, champions &
other roles which
facilitate innovation
KEY
INDIVIDUALS
• Use of teams at cross-
functional & inter-
organizational level
• Investment in team
selection & building
EFFECTIVE
TEAM WORKING
• Education & training of
employees to ensure
high level of skills &
competence
CONTINUING &
STRETCHING
INDIVIDUAL
DEVELOPMENT
• Within & between the
organization and
outside
EXTENSIVE
COMMUNICATION
• Positive approach to
creative ideas,
supported by
relevant motivation
systems
CREATIVE CLIMATE
• High level of
involvement within &
outside the firm in
proactive
experimentation
• Knowledge capture &
LEARNING
ORGANISATION
Enterprises should emphasize
Planning &
Controlling
Systems
With high
degree of
Flexibility
Respect for
Individual
Initiative
And
Personal
Growth
Tolerance for
mistakes
And
Allowing
Room for
Failure
BUILDING BLOCKS OF INNOVATION

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BUILDING BLOCKS OF INNOVATION

  • 1.
  • 2. oIt is an idea, practice or object that is perceived as new by an individual or other unit of adoption. oIt is a use of new knowledge to offer a new product or service that customers want. Thus, it is “Innovation is the search for and the discovery, developed, improvement, adoption and commercialization of new processes, new products and new organization structures and procedures.”
  • 3.
  • 4. OTHERWISE THEIR SURVIVAL CHANCES ARE SERIOUSLY THREATENED ORGANIZATION PREPARE THEMSELVES TO INNOVATE ON A CONTINUING BASIS TURBULENT AND RAPIDLY CHANGING ECONOMY
  • 5.
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  • 9.
  • 11. Recognizing or scanning the environment. Aligning the overall business strategy & proposed innovation. Acquiring technology from outside. Generating technology in-house. Exploring & selecting the most suitable response to the environment. Executing & implementing innovation. Learning lessons for improvement. Developing the organization.
  • 12. INNOVATION OCCURS AT THREE LEVELS NATIONAL LEVEL ENTERPRISE LEVEL INDIVIDUAL LEVEL GOVT. POLICIES & SUPPORT ENTERPRISE POLICIES, SUPPORT & INITIATIVES INDIVIDUAL & GROUP INNOVATION ACTIVITIES
  • 14. ORGANIZATIONAL PROCESS FOR INNOVATION MANAGEMENT Market Learning Effectively Building Business Models Creating a Cause & not a business Designing an open market for :Ideas, Capital, Talent Listening to New Voices Setting Unreasonable Expectations & Stretching the Business Definition Building Partnership and Alliances Lowering the risks of experimentation Paying the Innovators Well
  • 15. One of the most prominent programmatic approaches to innovation currently in use. It is different from building layers of competitive advantages & does not means segmenting market & accommodating customer needs. It’s main focus is on offering those products & services which creates a superior buyer value in existing markets & enables a quantum leap for the firm to create new markets. Value Innovation also differs from technology innovation. New technology developed does not becomes a value innovation unless it is cheap enough for MASS BUYERS.
  • 16. Three Basic Building Blocks of Strategy Conventional Focus Value Innovation Process Competition Outperforming the Seeking Radically Super Competition value to capture the en mass market Customers Retaining & better Targeting the mass of buyers by satisfying existing following non-customers closely customers & willingly losing some existing customers Corporate Leveraging & extending Willing to combine Capabilities the current capabilities a company of with other companies capabilities
  • 17.  External Barriers - Market-Related Barrier - Government & its Policies - Others (Technical, Societal, & Inter Organizational Barriers) Internal Barriers -People Related -Structural -Strategy Related
  • 18. • Clearly articulated & shared sense of purpose • Stretching strategic intent • Top management commitment. SHARED VISION, LEADERSHIP & THE WILL TO INNOVATE. • Encouraging creativity • Enabling learning & interaction • Balancing between ‘organic & mechanistic’ APPROPRIATE CULTURE HOW TO OVERCOME THESE BARRIERS
  • 19. CONTD. • Promoters, champions & other roles which facilitate innovation KEY INDIVIDUALS • Use of teams at cross- functional & inter- organizational level • Investment in team selection & building EFFECTIVE TEAM WORKING • Education & training of employees to ensure high level of skills & competence CONTINUING & STRETCHING INDIVIDUAL DEVELOPMENT
  • 20. • Within & between the organization and outside EXTENSIVE COMMUNICATION • Positive approach to creative ideas, supported by relevant motivation systems CREATIVE CLIMATE • High level of involvement within & outside the firm in proactive experimentation • Knowledge capture & LEARNING ORGANISATION
  • 21. Enterprises should emphasize Planning & Controlling Systems With high degree of Flexibility Respect for Individual Initiative And Personal Growth Tolerance for mistakes And Allowing Room for Failure