This document provides an introduction to innovation management. It discusses why innovation is important as a growth driver and for long-term sustainability. Innovation is defined as introducing new combinations or novel values. The document outlines the need to shift from an ad hoc approach to innovation to institutionalized innovation management. It discusses tools and challenges for facilitating innovation across an organization.

1. Objective
A Brief Introduction to:
Innovation Management
Target Audience
Notice
 This is an individual opinion irrelevant of GE
strategy either globally or locally.
 Some of the materials used in this slide are
copyright protected. Please keep it internally.

2. Innovation Management
RECAP - Why Innovation?
 Differentiator thus Growth Driver (vs. Saving)
 Long-Term Sustainability Driver vs. Short-Term
Spoke
“Business has only two basic functions-
marketing and innovation.”
- Peter Drucker

3. Innovation Management
RECAP - Why Innovation?
 Unique Function of Homo Sapiens
 Take Greater Advantage of Human Capital by
Embracing Creativity vs. Sound Operational
Device
 Creativity Induces Motivation, thus Performance

4. Innovation Management
RECAP - What is Innovation?
Innovations are "the carrying out of new
combinations." - Joseph Schumpeter
It’s about introducing novel / tweaked values
in society:
 Product / Process / Marketing
 Continual / Non-Continual
 Renovation (Kaizen)

5. Innovation Management
RECAP - 3 Megatrends around Innovation
Industrial / Informational /
Technological Experiential
Closed Open
Commercial Social

6. Innovation Management
Why Innovation Management?
AS-IS TO-BE
 Sole Coincidence  Institutional Control
 R&D’s Responsibility  Everybody’s Responsibility
 Static Budget Allocation  Dynamic Portfolio Mgmt
 Secondary to D2D  Primary Mission of
Operations Company / CEO
 Local Ad Hoc Operation  Designated+Shared Process
by PL / Knowledge
 Product-out  Market-in
 Cost Center Mentality  Profit Center Mentality

7. Innovation Management
Taking Analogy from Governance Model
Ctrl Approach Risk Approach
- Bottom up - Top down
- Authoritative - Strategic
- Thorough - Selective
- Feedback - Feed forward
R&D Innovation
- Technology out - Market in
- Allocation - Investment
- X-Biz Fairness - Weighted

8. Innovation Management
MISSION - Sensor for Megatrends
 Wherever Is beyond Direct Interests
of Day-to-Day Business
 Exploring Deep Implicit Wants

9. Innovation Management
MISSION - Taktstock for Rhythmical Innovation
Opportunity
Search /
Catalog
Gemba Market
Multi-Functional Screening / Matching
Innovation + Biz Ideation
Board
F it
Biz Modeling /
F easible
Pilot Test Needs Seeds
A ttractive
Innovation Fund

10. Innovation Management
MISSION - Feeder to Incubation Pipeline
Assess Design Pilot Scale
Launch Scale
IM Lead BU Lead / IM Consult

11. Innovation Management
MISSION - Support CEO in Building Innovation DNA
 Grow Innovation “neuron” throughout the
Company
 Thoroughly strategize up to embedding in
performance evaluation
 Cultural events for awareness / interest
Open, Creative People / Culture
Strategic Alignment
CEO Commitment

12. Innovation Management
MISSION - Mobilize People and Knowledge
Framework /
Evangelize Motif
R&D Marketing
Suppliers Incentivize
Catalyze
Indirect Manu- Connect
Functions facturing Distributors
Retailers
Consumers
Open, Creative People / Culture
Strategic Alignment
CEO Commitment

13. Innovation Management
TOOLS for Facilitating Innovation
Ideation / Co-creation Facility
(e.g. “Future Center”)
Communication / KM Tools
Professional Facilitators
Crowdsourcing
Innovation Governance
Tools
Market / Customer
Knowledge

14. Innovation Management
Why Designated Innovation Mgmt?
Disruptive Innovations, by its
nature, require good Is a long-term on-going
detachment from existing biz investment vs. short-term
profit making
Involves unique know-hows
(vs. luck) esp. for large entities
with multiple BUs
Requires to fairly represent X-
Implicit view to “Innovation” is business / X-functional stakes
different bet. CEO and
employees
Can embrace merit of scale in
general market research, etc.

15. Innovation Management
Watch-outs
Innovation is FRAGILE!
First candidate for
cost reduction Underlying skepticism
from middle
management
Mixed up with Biz
Planning teams
Occasionally the name is
used for nominal role for
rewarding / rest

16. Innovation Management
Key to Success – Consistent Ecosystem
CEO / Gov’ce Team
Every mgrs / emps with
Struct Innovation Responsibility
Domain
Priorities ure Process & Policy
DO’s / DONT’s Reward & Recog.
KM System
Strate Syste
gy ms
Shared
Open,
Values Trend Sensing
optimistic
leadership Ideation / Modeling
Experiments
Style Skills
Staff
Creative /
Proactive Rcs

17. Innovation Management
… and beyond.
History Economic
System
Culture
Ethnicity
Society
Nationality

18. Innovation Management
IDEAL: Ubiquitous Innovation
 Pervasive
 Bottom-up
 Distributed

19. Disclaimer
 This presentation is the author's personal opinion
and is NOT the representation of his employer or any
organization he is associated with.
 Some of the materials used in this presentation are
(possibly) copy-right protected. Even without any
commercial purpose, please kindly advice if there is
any issue.

20. Author
Shake the World!
Junichi OTAGAKI
Innovation Manager / Social Media Navigator
USCPA
Japanese: @jotagaki
English: @jo_overseas
Thanks to my Innovation Gurus: