The document discusses the management and nature of innovation, highlighting both internal and external innovations, their technical and non-technical aspects, and the necessary resources for implementation. It emphasizes the importance of collaboration, shared values, and training for fostering creativity and innovation within organizations while addressing the challenges in managing and diffusing innovations. Additionally, it identifies key skills and characteristics of innovation agents who can successfully navigate the complexities of change.

1. Management of Innovation
Gopaldas Pawan Kumar
Excerpts from “ Corporate Creativity”
-The Winning Edge
By Pradip N Khandwalla

2. Nature of Innovation
• Innovation could be internal or an external for a
company to develop.
• There are technical and Non- technical
innovations.
• Requires resources to be allocated
• Innovations means embarking on uncertain voyage
• „Skunk works‟ and Dedicated teams are formed.
• Innovation also has to tackle politics and „market‟
it properly.
• Mind sets differences need to be sorted out .
• Innovation has two phases – Design of Innovation
and implementation of the same in a professional
way.
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3. Technological Innovations
and their Management
• Technological Innovations could be Process or Product
Innovations. Top Management involvement.
• „Big Bang‟ Innovations (Revolutionary) and
„Suggestion Box‟ innovations (Small , Low Key)
• Only 2-3 % of the Innovations are only commercially
successful.
• „Gate Keepers‟ who identify new ideas are to be
encouraged . Cross Functional Teams to be formed for
a collaborative approach.
• Major blocks of innovations are – internal barriers to
communication, inadequate business acumen &
creativity , poor follow up etc .
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4. Inter – Organizational and Network
Innovations
• Collaboration of competitors or rivals is taking
place for mutual growth
• Ex: Sony and Ericsson, Maruti and Fiat , Apple
and Samsung are examples.
• Network innovations may be tying up with rivals
or vendors or distributors.
• Ex: IT companies with Banks, Insurance
companies with Banks, Mobile Towers common
for different operators (Airtel, Reliance, Aircel
etc)
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5. Design of a Successful Innovative
Organization: McKinsey’s7-S Framework
S . No Sub System Innovative Features
1 Shared Values Quality and Service , Originality and newness,
Importance of employees , Profits etc
2 Styles Orientation towards excellence, mutual trust and
cooperation
3 Systems Systems that improve innovativeness,
communication , provide control and rewards.
4 Structure Organic that evolves and grows , flexible ,
encourages team work, decentralized small groups
5 Staff Entrepreneurial, diversified , cross functional
6 Skill Divergent thinking, integration Skills and lateral
thinking
7 Strategy Innovation strategies that are radical, incremental
– product, process and administrative.
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6. Training for Innovation
• Creativity Skills can be learned and applied .
• Training individuals on creativity involves
education , development and focus on job
related skills and knowledge.
• It also involves changing attitudes, expanding
horizons and developing creative potential.
• Training for innovation requires changing
thinking styles from linear to lateral.
• For maintaining operational excellence and to
sustain growth during business cycles.
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7. Management of Innovation
• Management Innovations are novel changes in
decision making in areas like Marketing , HR
, Finance ,Operations and in their related fields.
• Technological Innovations are easier to measure in
terms of costs and benefits ,but, Management
Innovations are political in nature and affects
decision making quality.
• Once institutionalized , Management Innovations
cannot be discarded easily.
• Diffusion of Management Innovations in a
organization is a difficult process due to factors of
resistance to change by employees .
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8. Agents of Innovation
There are many agents for innovation depending on the
area of concern . They could be in an Organization or
in Society .
The agent of innovation should have the skills to mange
innovation diffusion and implementation . He /She
should be able to face opposition and develop a team
for implementation.
Examples:
Entrepreneurs ,Venture Capitalists, Fashion Designers
, Film Stars , Leaders etc
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9. Skills for Sponsoring Innovations
The Change Agents for Innovation are calculated risk
takers and have the ability to spot opportunities. They
have the following skills:
1. Ability to identify Costs involved and potential
outcomes.
2. Ability to identify the significant risks in the venture.
3. Ability to work out “What –if” scenarios.
4. Ability to take higher risks for higher pay- off.
5. Knowledge of high opportunity domains.
6. Ability to convert threats into opportunities, reduce
weaknesses and reinforce strengths.
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10. End
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