2. What is INNOVATION?
Why Business Innovation?
How can we start Innovating?
The role of organisational Culture and climate on Innovation
Creating a Climate for Innovation and Creativity
Understanding your persona when it Comes to Innovation
AGENDA
3. WHAT IS INNOVATION
The successful exploitation of new ideas (DTI, 1998: p.1).
This definition tries to simplify the subject by not limiting it to either services,
processes, or products exploitation. But the definition also fails to mention a
significant aspect which is value (incentive)
The implementation of a new and possibly problem-solving idea, practice or material
artefact (e.g. a product) which is regarded as new by the relevant unit of adoption
and through which change is brought about (Martins and Terblanche, 2003, p: 4).
4. WHY BUSINESS INNOVATION?
Business is not just limited to buying and selling but includes bringing value to the buyer and
seller
‘‘The creation of substantial new value for customers and the firm by creatively changing one or
more dimensions of the business system’’ (Sawhney, Robert and Indigo, 2006 p: 3).
Business system covers: technology, management, services, process, product and people.
It is important to avoid what Sawhney, et al (2006) calls Innovation myopia
The essence of INNOVATION is to gain a competitive advantage which is the outcome of the
combination of the value firms can exhibit externally from their internal resource and processes
(Andrei, et al 2011)
‘‘scarcity and not ubiquity that makes a business resource truly strategic as companies gain an
edge by having or doing something others can't have or do’’ (Carr, 2003, p:2).
F5 of Competition and The Big Five of Leadership
5. HOW CAN WE START INNOVATING?The Innovation Value chain (Morten and Birkinshaw, 2007)
Idea generation
In house (within a unit), cross collaboration (across units) & external (from third-party)
Idea selection
Idea selection and Idea development
Idea diffusion -Development and Spread
Innovation Radar (12 ways to innovate) by Sawhney, et al (2006)
Offer (WHAT)
Customer (WHO)
Processes (HOW)
Presence (WHERE)
Value chain by Millar & Porter
‘‘This concept divides a company or industry's activities into the technologically and economically distinct activities it
perform to do business’’ (Millar and Porter, 1996: 3).
Value chain is a collection of smaller activities which is called value activities and between one activity and another is
what is called linkages
F5 by Michael Porter
Avoid differentiating along common path such as price differentiation.
It is only the customer (end user or buying firm) that tends to benefit when we differentiate along common path
Above all, the founder or CEO’s priority must be right; is the reason for the business to raise money for immediate
financial security, empower family generation, plug a gap in the society? It determines the actual goals and objective of
any business and the extent the business will go!
6. Organisational Culture and Climate
Culture is, ‘‘the deeper and more enduring values, norms, and beliefs within the
organisation’’ and climate is, ‘‘the recurring pattern of behaviour, attitudes, and feelings
that characterise life in the organisation’’ (Ekvall, et al, 2001, p:2) .
Culture is, ‘‘the deeply seated (often subconscious) values and beliefs shared by
personnel in an organisation’’ (Martins and Terblanche, 2003, p: 2).
‘‘climate is only a surface manifestation of culture’’ (Schein, 1990, p. 1)
It is the reason behind why people behave the way they do!
Leaders and managers must set the right culture and climate for innovation to thrive and
become a life style!
The role of organisational Culture and climate on Innovation
7. Cultural Factors that influence Innovation and Creativity
Martins Interactive Model
Dimensions measured to directly describe organisational culture
Strategic vision and mission
Customer focus (external environment)
Means to achieve objectives
Management processes
Employee needs and objectives
Interpersonal relationships
Leaderships
Determinants of organisational culture that influence
innovations
Strategy
Purposefulness
Trust relationships
Behaviour that encourages innovation
Working environment
Customer orientation
Management support
8. HOW DOES CULTURE AFFECTS FIRMS
SOCIALISATION
TRUST Process
Collaboration
Communication and Open trust
Idea generation
13. References
DTI (1998). An Audience with Innovation: Innovation in Management. London: Department of Trade and Industry.
Harvard Business School Press, (2003) ‘Types of Innovation: Several Types on Many Fronts’, in Managing Creativity and Innovation,
Boston, MA: Harvard Business School Publishing Available
at:https://services.hbsp.harvard.edu/services/proxy/content/21976796/43399237/71d9de6434459bb56379d70f281a9732 (accessed:
26/03/2017)
Martins, E. and N. Martins (2002) 'An organisational Culture Model to Promote Creativity and Innovation' SA Journal of Industrial
Psychology, Vol. 28 Iss 4 pp. 58-65
Martins, E. C., & F. Terblanche, (2003) ‘Building Organisational Culture that Stimulates Creativity and Innovation’, European Journal of
Innovation Management, 6 (1) pp.64-74
Sawhney, M., R. C. Wolcott, & I. Arroniz, (2006) ‘The Twelve Different Ways for Companies to Innovate’, MIT Sloan Management
Review, 47 (3) pp.75-81