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Jayabalaji Sathiyamoorthi
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Table of Figures
[ Jayabalaji Sathiyamoorthi ] 2
INNOVATION MANAGEMENT:
HOW IDEAS GET TRANSFORMED INTO INNOVATION
1. INTRODUCTION
No distance is too far and no dream is too large because the cycle of life
keeps changing. Certainly, changes bring improved lifestyle and technological
progress, consecutively to keep the momentum of improvements one has to really
appreciate innovation. But where does the innovation come from? An apple in
Newton‟s head sparked to deliver an Idea, which plays a vital role in everyone‟s life
till today. Innovation can be considered to be as creativity, i.e., to create new ideas
and knowledge creation. However it goes beyond idea generation to putting those
ideas into action. So it is important to evaluate the ideas in order to yield good
innovation. An idea that is developed and put into action creates innovation.
Moreover, “seamless flow of new Ideas is the vital source” for sustained innovation.
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So, how to tackle this situation? The only solution to combat strategy decay is
to keep innovating. There comes the importance of knowing what is a good idea,
how it is created and gets transformed into innovation. All these aspects form the
syllabus of this paper. First the theoretical aspects of the idea to innovation phases
were discussed, then the industry approach is explained with examples and it is
supported by a survey. Additionally, a modified framework for the idea assessment is
also proposed.
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market regions. The feedback from the companies are thoroughly evaluated in the
later chapters and analysed how far ideas are measured till it becomes innovation.
2. INNOVATION
DEFINITION - “INNOVATION”
The US federal advisory committee on measuring innovation defines
innovation as follows. “The design, invention, development and /or implementation of
new or altered products, services, process, systems, organizational structure or
business models for the purpose of creating new value for customers and financial
returns of the firm”.
The definition of innovation can be divided into two perspectives, namely
Opportunities to exploit and Opportunities to explore (Amy Wong, 2001). Let‟s try to
understand both of them.
First perspective, opportunities or changes to exploit are those where most of
the parameters are well defined and understood. It is something like improving an
ongoing process, reducing cycle time, increasing throughput or reducing cost. So
these are basically incremental improvements.
On the other hand, opportunities/changes to explore are those areas, where
we have newly started and have little information about it. Here we have ideas and
solutions which are applied in new ways to solve new problems. It creates the
environment for transformational innovation.
For this paper, I adopt Peter Drucker‟s (1993) definition of Innovation, who
defines Innovation in business terms as the fundamental to the quest for profitable
and sustainable growth. Precisely one of the important business competencies
needed for the future, it implies that innovation is not all about marginal
improvements on some unimportant products.
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UK Govt, Department for innovation, universities & skills, has two perspective
definitions for innovation.
First at the level of an individual firm, Innovation is defined as the “application
of ideas that are new to the firm, whether the new ideas are embodied in products,
processes, services or in work organization, management or marketing systems.”
Second at the business perspective, “Innovation is something that is new or
significantly improved, done by an enterprise to create added value either directly for
the enterprise or indirectly for its customers.”
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long as any company wants to stay on top of their competitors and win the
innovation game.
Innovation is very important criterion for success in the future, (Horibe,
Frances Dale Emy, 2001) an important study done on the rate of return of 17
successful innovations shows a mean return of 56% in comparison with an average
Return on Investment (ROI) of 16%. It is clear that organizations need to innovate to
survive and achieve good profit figures.
WHAT TO INNOVATE
Now we understood the importance of the role that innovation plays in an
organization. The next important question now arise is where and which things to
apply innovative ideas in a big organization. Suggestion and recommendation for
where to apply innovations are as follows,
1. Innovation can be applied to products, services, design, invention,
development, process, and systems.
2. To make a product/ service compete with the new economy. This is
essentially to educate organizations to move out of their traditional old habits1
to the new innovation culture.
3. To avoid high risks – Avoiding high risks involving money, staying ahead of
competition and high pay off opportunities are the essence of the innovation
4. To gain long term market focus, as a result the company can save money.
1
Traditional myths & habits may change firms incompetent to the current market and it is no longer useful
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existing product remains competitive in the market. Literally, these organizations
don‟t work against their competitors, instead build innovation groups among their
own different kind of products and be an active competitor for their products.
For example, the Hewlett-Packard2 Company produces both laser and ink jet
printers. These products equally compete in the market. They came up with a plan,
to divide the markets of both the ink jet and laser divisions. As a result, HP has
become the leader in both laser and ink jet printers.
2
Popularly called as HP
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Gary Hamel (2003) puts forward, “Most companies are built for continuous
improvement, rather than for discontinuous innovation. They know how to get better,
but they don‟t know how to get different.”
But successful companies deploy their managers to take responsibility for
initiating and directing change in addition to their objectives. Successful companies
believe that they need to do something that the world has not seen before. They
change and innovate so that they are first and unique in this wild and competitive
market.
Let us analyse this with the scenario from software industry. Yahoo first
released its popular instant messaging program Yahoo! Messenger (YM). This is a
GUI based beta release of the software, which became very popular in late90‟s 3.
Though YM is more popular, it had many bugs reported by the customers, so YM
has to develop and release bug fix and patches. The lesson learnt is being ahead in
the market and managing chance to sustain. Lately, YM introduced voice and live
video messaging options, all as a result of adapting to chance and applying
innovation.
3
Source: http://yhoo.client.shareholder.com/press/ReleaseDetail.cfm?ReleaseID=173501
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2.2.2. INNOVATION VS INVENTION
Following the above mentioned concept of creativity, the next similar
misunderstood concepts are Innovation and Invention.
Fagerberg (2004) distinguishes them as; “Invention is the first occurrence of
an idea for a new product or process, while innovation is the first attempt to carry it
out into practice".
Interesting thing is that, Innovation does occur when someone uses an
invention or an idea to change how the thing it works. So to make it more precise,
invention is a ladder to reach the spot called “innovation”.
3. GENESIS OF AN IDEA
The types of innovation helped us to understand the methodology in which the
innovation is applied in industry. This also helped us to understand the risks involved
if the organizations resist changing. This is a business view of innovation, now let us
look it from the conceptual view of innovation. The basic building blocks of innovation
are IDEAS.
Ideas are basically the outcomes of the thought process. The quantity and
quality of idea does have a direct impact in innovation, so it is important to classify
ideas. As supported by Paulo Matos (2002) that is if a company classifies a good
idea it means that there is little evaluated risk involved to achieve excellence in
execution. Therefore, to come up with good ideas and concepts for new products,
CEOs have to encourage break through thinking. So to be innovative, the idea has to
be creative and implemented.
The core discussion of this paper is to analyse the ideas process and to apply
suitable metrics to evaluate whether the germinated ideas is a good or not.
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3.1. IDEA GENERATION PROCESS
The idea generation process is nothing but the whole process from thinking to
action, i.e., from the generation of first ideas to the final innovative result.
Understanding these phases will helps us to review the ways of combining and
creating knowledge that can relate to reality.
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The long term vision,
The ability to identify or even anticipate market tendencies and
The will and ability to gather and integrate the process.
Additionally, the EU innovation manuals states the other necessary skills
that organization needs to posses are
The ability to take risk (Calculated risk)
Internal co-operation between the different functional department and
The external cooperation, with public investigation, with consulting
services.
Therefore, when developing new ideas it is important to understand the
organizations‟ skill and it is a good idea to have a list that allows controlling the
critical factors for the idea implementation. One among the critical factor is
controlling the change.
So to handle this change, a good method could be to inherent organisation
change process into small entities such that it does not cause any ruptures with the
on going procedures, articulating, and sequencing them so that in the long term the
desired result is achieved. Once the tactics are set, organizations need to employ
appropriate tools and methodologies which are discussed in the later chapters.
Summarizing the organizations‟ role from the strategic point of view, an
organization necessarily has to define the evaluation system towards the initial set
goals. The system will include the aims to be attained, manage change, and
organize the skill of the company and the indicators to consider in the innovation
activity analysis.
Idea Generation Idea Conversion Idea Diffusion Product Launch Idea Assessment
Sources of ideas
Besides depending on the internal sources, organizations need to be open to
gain information from external sources for idea generation. This could be from
customers, end users, competitors, universities, independent entrepreneurs,
investors, inventors, scientists and suppliers who play a vital role. The common
fallacy among companies‟ is that outside ideas were not good as in-house ones.
4
Famous proverb from an unknown Albanian author
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The common techniques used in this phase are brainstorming, or individual team
meetings.
Tips5:
Involving people with differences (can be based on lingual, cultural,
geographical, ethnic etc.,) can be used in such brainstorming discussions/ sessions
constructively. Because this gives room to ask as many weird and challenging
questions about the ideas, which involve people‟s educational, professional and
cultural diversity.
For instance, British Telecom, the UK telecommunications group doesn‟t lag
with good ideas for its business; however its division providing services to
multinational companies failed to hit targets6. We can infer such problem arise due to
the inadequate commercial/ business skills to tackle such projects.
5
This is my personal learning from Global Management group discussion while forecasting periods in FHoow.
6
Source: http://www.independent.co.uk/news/business/news/bt-issues-surprise-profits-warning-980548.html
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1. Market surveys
According to Robert, market surveys can be done through interviews,
through panels or by monitoring the evolution of a set of demographical,
economical and consumption indicators as well as others. In this paper, there
is a survey appended which helps us to understand the organizations‟
perception on idea generation and innovation.
2. Benchmarking
Benchmarking is an important tool for competition analysis.
Benchmarking is an ongoing process of measuring and improving business
practices against the companies that can be identified as the best worldwide.
It emphasizes the importance of improving, rather than maintaining the status
quo. It addresses searching worldwide for the best companies. Hence, the
more innovative the ideas that are discovered, the greater the potential
rewards that can be gained from the adaptation of the ideas.
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b. Suppliers
In business terms, competitive suppliers usually have a better
knowledge of what they are selling and how the client can obtain better
benefits. When suppliers are experts on their area, they may even
present solutions for the company‟s specific needs. So collecting ideas
from the suppliers is very important.
c. Customers
Customers are the important source of proposals concerning
changes in products and services.
According to Peter Drucker (1993), building relationship with
clients is also an important criterion as it creates a strong information
source.
However getting inputs/feedback from the end customers is not
easy. For example in consumer products business like tooth paste etc.,
so in those cases mediums like suggestion boxes, suggestion phone
lines will help the organization to address the complaints and feedback.
7
National Association of Software and Services Companies (NASSCOM)
http://www.nasscom.in/Nasscom/templates/LandingPage.aspx?id=50154
8
More info about the program can be found at http://campusconnect.infosys.com
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obtained, while at the companies‟ level there is an important set of information
that the company does not want to see in the hands of competitors. This is
evident during seeking surveys/interviews for this paper, as most of the
companies don‟t wish to keep their information confidential.
5. Brainstorming
Brainstorming is a widely used technique, in which a group of people
were put together and discuss their ideas that they can think of, even if
apparently foolish. The important thumb rule of this technique is not to criticise
ideas presented until the discussion ends. An advantage of this method is the
fact that the association of several ideas can trigger new ones.
9
Source: http://www.unitedbit.com/idea-diffusion-3rd-phase-in-the-innovation-chain/
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that will have better advantages in being applied or combine existing ideas, to find a
solution that is superior to each idea by itself.
There are several tool and techniques for idea selection process, which an
organization can avail. In this paper, two techniques are detailed.
1. Feasibility Analysis
Feasibility analysis is a preliminary study undertaken to determine a
project's viability, which helps to ensure the successful completion of specific
project goals and objectives. In addition, feasibility analysis gives a clear
picture, if an existing system is worth upgrading or not.
Feasibility analysis can be done in two perspectives, technical
perspective and business perspective (Paulo Matos, 2002). However
feasibility analysis can be done in many kinds.
In the technical point of view, the feasibility study is carried out to check
if it is possible to implement the idea at an acceptable cost. This involves
questions such as whether the technology needed for the system exists, how
difficult it will be to build, and whether the organization has prior experience
using that technology
In the business perspective, the feasibility study is conducted to check
the factors affecting the commercial viability of the business. Also to ensure
the cost-effectiveness of the proposed system i.e. if the benefits of the new
idea do not outweigh the costs, then it is not worth going ahead. So it could be
precisely called as a cost benefit analysis.
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same, a decision can be made about the idea. With a raising number of ideas
analysed and processed there is a better understanding of the risk level of
several types of ideas and the costs each one brings. The study of this
technique is strongly supported by a wide bibliography related to the
economical and financial areas.
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identify the areas of improvement and areas of strength. The important aims of idea
assessment process are as follows,
1. Ideas need to be Optimally Quantitative, i.e. it will stretch out to the maximum
possible extent to guide decision making based on measurable and
quantifiable criteria
2. To help in addressing ideas submitted for the organizational perusal,
minimizing the scope of escapes in estimating the organization‟s potential
long term returns, i.e., to ensure some business important factors doesn‟t left
unnoticed.
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brings in a challenge, especially if decisions have to be based on a quantified metric.
Because all the success factors of an organization can‟t be quantitatively measure.
If R be the net revenue earned after tax and expenditure deductions, across
all domains of practice of the organization, and then a new metric, called “Domain
Identification Scale factor” is added. It can be mathematically explained like,
Ω = DC / R
This aptly signifies the importance of the return value and there by we can find
the importance of the domain in an organization‟s current business practice.
Where, ∑ is the summation of returns across all business domains of practice of the
organization.
Next the profitability of pursuing the idea in terms of the organization‟s funding
or financial venture is calculated by Return on Investment (ROI).
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ROI can be formulated by a simple and easy to evaluate metric of standard
practice, as follows:
The first fit of a submitted idea can be quantifiably judged from the following novel
metric, as:
Measure of first fit, λ = Ω x ROI
Where, Ω serves as the scaling factor (as Ω <= 1) against ROI.
10
Managing filtered/ eliminated ideas are discussed in the later part of this paper
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calculations are carried out for specific innovation activities. It is given by the
following formulae,
R&D Returns = Profits / R&D investment
R&D productivity = Technical progress / R&D investment
R&D yield = Profits / Technical Progress
Once the specific R&D investment is devised for specific innovation activity,
and then a financial output metrics is defined, which are Net Sales Ratio (NSR) and
Cost Savings Realized (CSR). It is given by the following formulae,
New Sales Ratio (NSR) = Revenues realized this year from new products introduced
in last 5 years Total revenues realized this year
CSR = cost savings realized this year from process improvements introduced in last
5 years Gross profits11 realized this year
The chart in the following page will help us to understand way the R&D
returns are calculated. The factors which affect/influence the R&D productivity and
R&D yield are displayed.
11
Gross profits = Sales Revenues – Cost of Goods sold
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Figure 2 : R&D Return, Productivity and Yield Framework
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balanced with the existing business and also the new business. Balance optimization
of the resources like capital, labour, time etc., is very important in this state.
The metrics for the resources can be sub divided into inputs and outputs. The
resource view inputs measures the resources that are allocated by the company for
innovation. And like wise, the resource view output measure the company‟s success
at innovation.
Capital
Resource Return on
Talent View Investment
Time
Inputs Output
Key indicators
Based on this view, the possible key indicators for innovation metrics are
listed below. This list has indicators for both inputs and outputs of this view. Please
note that company doesn‟t really need to measure & adapt all the indicators
mentioned below. However, under their own discretion suitable indicators can be
followed, so that they have a simple and better metrics for innovation.
The key indicators are as follows,
1. Percentage of capital that is invested in idea generation, idea conversion, idea
diffusion and Idea assessment phases for new products and services.
2. Number of talented workforce in the company, i.e. individuals who have prior
knowledge of business, either within the company or before joining the
company.
3. Percentage of workforce time that is currently dedicated to innovation
projects.
4. Number of new products, services, and businesses launched in the past year.
5. Share of wealth, which is nothing but the change in the company‟s market
value during the past year divided by the change in the total industry‟s market
value during the same period
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6. Percentage of revenue from products or services introduced in the past three
to five years.
Capability New
Tools View competencies
Trainings
Inputs Output
Like that of resource view, the capability view can also be sub-divided into
inputs and outputs. The capability view inputs measure the company‟s culture and
innovation competence. This also involves the employee access to innovation
training, tools, and methodologies. On the other hand, the outputs of the capability
view measure the company‟s success at providing renewal options. For example, it
might measure new competencies in comparison with the existing business.
The key indicators for capability view are as follows,
1. Percentage of employees who have received training in innovation, for
instance, instruction in estimating market potential of an idea.
2. Percentage of employees for whom innovation is a key performance goal.
3. Number of innovation tools and methodologies available to employees.
4. Number of new competencies (i.e. distinctive skills and knowledge domains
that spawn innovation) measured as a simple count among a threshold
proportion of employees.
5. Number of strategic options (i.e. newly created opportunities to significantly
advance an existing business).
6. Number of new markets entered in past year.
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4.3.3. LEADERSHIP VIEW
The leadership view helps to evaluate leaders‟ involvement in innovation
activities, the establishment of formal processes to promote innovation, and
dissemination of innovation goals. The leadership view assesses the degree to
which a company‟s leadership supports innovation.
DISCUSSION ON METRICS
As discussed earlier, simple and straight metrics are always beneficial.
However, selection of the optimal metrics and the optimal value of any particular
metric will be varying from company to company.
There is no fit to all metric available. For example, innovation for a cement
producer will require different skills, resources, and competences than in comparison
with an automobile producer. Thus, the goals and targets of the innovation will vary
from industry to industry. However, the generic indicators that are measured by the
innovation metrics will be quite similar across most industries. The financial analysts
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of the company must analyse several metrics in order to develop a comprehensive
view of the company‟s innovation capability.
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4.4.6. Include a few customer-driven metrics.
Organization can consider measuring customer driven metrics such as sales
from new products to complement the internally focused metrics such as the number
of new competencies under development or undue emphasis on customer-driven
metrics; otherwise these metrics will stifle innovation projects with a longer-term
return on investment [Amy Muller, 2001].
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threat. The more detailed discussion of the questionnaire will be done in the later
chapters and also in appendix B.
Thus we can conclude that a company can outsource the contextual activities,
but it has to in-source the core activities. Those are what give the company a
competitive advantage.
12
For product information visit, http://www.imaginatik.com/webdoc_prod_overview
13
For product information visit, http://www.innovationtools.com/Resources/ideamgmt-details.asp?a=82
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Company, both makers of alternative beverages such as bottled waters, juices, and
teas laced with ginseng. (Amy Muller, Liisa Valikangas, Paul Merlyn, 2001).
6. QUESTIONNAIRE RESULTS
The innovation survey/questionnaire is drafted to get inputs from various
organizations. As a result we can understand their views on innovation and how do
they manage the idea generation process of innovation.
This questionnaire was framed merely to get inputs relevant to the course of
this scientific report, and thus other concepts were not included. Moreover,
companies were reluctant in sharing their method or model of innovation, which they
implement. Therefore, a real-time implementation for the proposed “Innovation
Metric Framework model” was not possible.
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Data Security
Due to the participant organizations‟ concern about data security and data
confidentiality, the results will be open only for the internal discussions of this paper
only. Based on the request from the participant organizations‟, Information such as
which organization expressed what kind of views on a particular question is kept
hidden and therefore it is not disclosed.
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having people who are passionate about their current job. However for question no
6, most of the companies responded that they have a strong understanding of their
clients and market. In case of new market they have understanding to some extent.
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36
correct, so it all depends on the kind of business and also the competency area
which is being outsourced.
The detailed evaluations of the results are discussed in appendix B.
LESSONS LEARNT
Most of the companies think that Outsourcing innovation is a mere threat.
However few of the companies still agree to the contextual activities, but it has
to in-source the core activities
Almost every organization have a very high absorptive capacity
Having the cross culture team in place doesn‟t directly influence the
innovation process, however it does impact in idea generation process
Almost every organization has a defined and structured innovation process.
They device a defined phase from idea generation to innovation.
Most of the companies, do believe in measuring their progress in innovation.
So they certainly adopt an innovation metric system, whichever they feel it is
good for them.
Most of the employees are not passionate towards innovations, unless driven
by rewards.
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7. CONCLUSIONS
From this study, it is indeed clear that the Long-term success of any organization
in any competitive marketplace demands constant innovation. To have such a
sustained innovation, the company should drive idea generation program, device
appropriate metric for measurement and manage the innovation activities.
It is also clear that the long lasting innovation requires a steady flow of new
ideas. So we can conclude that the effectiveness of a company‟s innovation efforts is
measured by how well promising ideas are selected, nurtured, and transformed into
tangible products and services.
Also it is understood that the entire process cycle of the idea generation till it
developed into product is a continual process, so performing well in one stage of
idea phase and doesn‟t necessarily promise success in the successive stages.
This can be done by facilitating the awareness of opportunities, also by getting
feedback from customers and foster the spread of entrepreneurial capabilities. Thus
development of innovative capabilities is the only means by which companies can
sustain a competitive advantage
The simplest metrics are the best for different phases of idea, so usage of simple
and suitable metrics to rank ideas and allow the best ideas to rise to the top.
Emphasis on communication, organizations should listen to the feedback and
comments from customers and partners. Besides, solicit immediate input from
employees at any level and from any organization.
Learning and improvement are to be gained from each stage of the process. So
Implementation of pilot projects to gauge the costs and benefits of new data
collection efforts could be encouraged.
Quote
“The best way to start achieving a thing is to dream about it. Imagination together
with innovation results in realization.”
– Dr. APJ Abdul Kalam
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8. ACKNOWLEDGEMENT
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9. REFERENCES
Amy Wong (2001), “Metrics of Innovation”, Intl. journal of strategy and business
transformation, issue 1, spring 2001, pp 1 to 5.
Amy Muller, Liisa Välikangas, and Paul Merlyn (2001), “Metrics for innovation:
Guidelines for developing a customized suite of innovation metrics”, viewed on 10th
October 2008,
http://www.strategos.com/articles/InnovationMetrics/InnovationMetrics.pdf
Anthony Arundel, Keith Smith, Pari Patel and Giorgio Sirilli (1998), “The future of
innovation measurement in Europe”, IDEA papers, viewed on 22 nd July 2008.
http://www.scribd.com/doc/239713/The-future-of-innovation-measurement-in-Europe
A. A. Groppelli and Ehsan Nikbakht (2000). “Barron's Finance”, 4th Edition. New
York. pp. 442–456. ISBN 0-7641-1275-9.
Boyd, Robert S. (May 15, 2007). ""Hydrogen cars may be a long time coming"".
McClatchy Newspapers, viewed on 2008-05-09
http://www.pluginamerica.org/images/McClatchyWashingtonBureau_15may07.pdf
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Gary Hamel (2003), "The future of management”, ISBN 1-4221-0250-5, Harvard
business school publication, p 27 – 45.
Hansen and Birkinshaw (2003), Incremental innovation vs. Radical innovation, Filed
under Innovation Theory, viewed on August 27th 2008,
http://innovationzen.com/blog/2006/08/04/innovation-management-theory-part-2/
George Bernard Shaw (1856 - 1959), quotes, Irish literary Critic, Playwright and
Essayist. 1925 Nobel Prize for Literature.
Hamel and Valikangas (2003): The Quest for Resilience, Harvard Business Review,
vol.2, pp 198-207
Horibe, Frances Dale Emy (2001), Creating the innovation culture: Leveraging
visionaries, dissenters and other useful troublemakers in your organization, ISBN 0-
471-64628-8, publisher John Wiley & sons Canada ltd
Lewis, Robert and Wayne, Cordeiro (2005), "Culture Shift: Leadership Network ",
ISBN 0-7879-7530-3, publisher Jossey – Bass Ltd.
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Michael Diehl and Sabine Ch. Mueller, (2001) Cognitive Stimulation in Computer-
Supported Idea Generation, view on 15th September 2008,
http://www.psych.unito.it/csc/cogsci05/frame/poster/2/ma285-mueller.pdf
N.R. Narayana Murthy, chief mentor of Infosys, interview with forbes.com (2008)
You can outsource the contextual activities, but you have to in-source the core
activities. Those are what give you a competitive advantage, viewed on 15th October
2008.
http://www.forbes.com/innovation/2006/08/23/leadership-innovation-outsourcing-
cx_hc_0824infosys.html
Paulo Matos Jorge da Silva e Sousa dos Santos (2002), “How to improve
management of ideas”, ISBN 1-58112-606-9, published by Universal Publishers.
PCT Board meeting (2007), “Fitness for purpose capability development plan”
viewed on October 19th 2008,
http://www.northsomerset.nhs.uk/Publications/meetings/PCT_Board_Meetings/2007/
July/13%20-%20Appendix%201%20-
%20FITNESS%20FOR%20PURPOSE%20CAPABILITY%20DEVELOPMENT%20P
LAN.pdf
Stein, Nicholas (2000), “The World’s Most Admired Companies,” In Fortune October
edition, (2000), p. 183.
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Thomas J. Peters and Robert H. Waterman (1982), "In search of excellence", ISBN:
0-446-38507-7 published by Warner Books Inc.
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APPENDIX – A
QUESTIONNAIRE ON INNOVATION
PURPOSE
This survey is solely circulated to companies whom appreciate innovation.
The results of which are used to analyse and review the data for the scientific project
(Project C), which is a mandatory subject in Master of Technical Management
course, University of Applied Sciences, Emden, Germany
SIGNIFICANCE
In today‟s economy, the importance of innovation is paramount in providing
the organization the desired competitive advantage. The following questionnaire is
structured to identify the significance of innovation and analyse the role of idea
generation process.
DATA PROTECTION
The data collected from this survey is strictly used for academic purpose and
to analysis how really ideas contribute in achieving innovation. The author takes
responsibility to ensure the confidentiality and privacy of the received information
from the contributors.
METHODOLOGY
What is your company‟s stand on managing ideas and Innovation? To get an
answer for this question, we have compiled a simple questionnaire of 15 statements.
We value your time, so we are not looking for elaborate answers; all you have to do
is simple to answer – 1. Agree, 2. Agree strongly, 3. To some extent, 4.disagree or 5.
Disagree strongly.
CONTRIBUTORS DETAILS
Family, First name:____________________________________________________
Designation: _________________________________________________________
Organization‟s Name: _________________________________________________
Email: ______________________________________________________________
[ Jayabalaji Sathiyamoorthi ]
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QUESTIONS – Please select an answer for all statements
1. Our organization is known for its innovation and this is crucial to our success.
2. The implications for the business of future trends and issues are analysed,
with the participation of our design experts (internal and external) and
technical specialists.
5. Employees are passionate about what they do and really want to create
something special.
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8. Do you think, once a good idea is deployed, and it will certainly help you to
attain your organization‟s business goal?
10. Our intellectual property is at the core of our competitive advantage and we
protect it accordingly in the most appropriate way.
12. Our teams are usually made up of a broad mix of people from different
cultural background
13. Trainings and workshops are consistent; people are developed for bigger
roles in the organisation.
14
Absorptive capacity is the ability of your company to effectively use information from knowledge sources.
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APPENDIX – B
Question #1
Our organization is known for its innovation and this is crucial to our success.
Sno Responses
1 Agree
2 Strongly Agree
3 Agree
4 Agree
5 Strongly Agree
6 Strongly Agree
7 Strongly Agree
8 Strongly Agree
9 Strongly Agree
Responses
6
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #2
The implications for the business of future trends and issues are analysed, with the
participation of our design experts (internal and external) and technical specialists.
Sno Responses
1 Agree
2 Agree
3 Strongly Agree
4 Strongly Agree
5 Strongly Agree
6 To Some Extent
7 Strongly Agree
8 To Some Extent
9 Strongly Agree
Response
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #3
All levels of the organisation are proactive in generating, evaluating and developing
ideas for new products/services/processes.
Sno Responses
1 Agree
2 To Some Extent
3 Strongly Agree
4 Agree
5 Strongly Agree
6 Strongly Disagree
7 Strongly Agree
8 Strongly Agree
9 Strongly Agree
Response
0
Strongly Agree To Some Disagree Strongly
Agree Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #4
Your business domain schedule regular meetings among employees to share good
& new ideas
Sno Responses
1 Agree
2 Strongly Agree
3 Strongly Agree
4 Agree
5 Strongly Agree
6 Agree
7 Agree
8 To Some Extent
9 Agree
Five of the participant companies have expressed that they are agreed.
Response
0
Strongly Agree To Some Disagree Strongly
Agree Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #5
Employees are passionate about what they do and really want to create something
special.
Sno Responses
1 To Some Extent
2 Agree
3 Agree
4 To Some Extent
5 Strongly Agree
6 To Some Extent
7 Agree
8 Agree
9 Agree
Five of the participant companies have expressed that they are agreed.
Response
0
Strongly Agree To Some Disagree Strongly
Agree Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #6
Ideas and Opportunities we identify are driven by our deep understanding of our
customers, competitors and markets.
Sno Responses
1 To Some Extent
2 Agree
3 Agree
4 Strongly Agree
5 Strongly Agree
6 Agree
7 Strongly Agree
8 To Some Extent
9 Agree
Four of the participant companies have expressed that they are agreed.
Response
0
Strongly Agree To Some Disagree Strongly
Agree Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #7
Ideas has to be necessarily tracked and certain kind of metrics has to be adapted
Sno Responses
1 Agree
2 Strongly Agree
3 Agree
4 Agree
5 Agree
6 Agree
7 To Some Extent
8 Strongly Agree
9 Agree
Six of the participant companies have expressed that they are agreed.
Response
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #8
Do you think, once a good idea is deployed, and it will certainly help you to attain
your organization‟s business goal?
Sno Responses
1 Agree
2 Disagree
3 Strongly Agree
4 Strongly Agree
5 Agree
6 Disagree
7 Strongly Agree
8 Strongly Agree
9 To Some Extent
Four of the participant companies have expressed that they are „Strongly Agreed‟.
Response
0
Strongly Agree To Some Disagree Strongly
Agree Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #9
Sno Responses
1 Agree
2 Strongly Agree
3 Strongly Agree
4 Agree
5 Strongly Agree
6 Strongly Agree
7 Strongly Agree
8 Agree
9 Strongly Agree
Six of the participant companies have expressed that they are „Strongly Agreed‟.
Response
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #10
Our intellectual property is at the core of our competitive advantage and we protect it
accordingly in the most appropriate way.
Sno Responses
1 Agree
2 Strongly Agree
3 Agree
4 Strongly Agree
5 Strongly Agree
6 Strongly Agree
7 Strongly Agree
8 To Some Extent
9 Strongly Agree
Six of the participant companies have expressed that they are „Strongly Agreed‟.
Response
0
Strongly Agree To Some Disagree Strongly
Agree Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #11
Sno Responses
1 Agree
2 Agree
3 Agree
4 Agree
5 Agree
6 To Some Extent
7 Agree
8 Agree
9 To Some Extent
Seven of the participant companies have „Agreed‟ that they got a strong absorptive
capacity.
Response
7
6
5
4
3
2
1
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #12
Our teams are usually made up of a broad mix of people from different cultural
background
Sno Responses
1 Agree
2 To Some Extent
3 Strongly Agree
4 To Some Extent
5 Strongly Agree
6 Strongly Disagree
7 Strongly Agree
8 Strongly Agree
9 Agree
Four of the participant companies have expressed that they are „Strongly Agreed‟.
Response
0
Strongly Agree To Some Disagree Strongly
Agree Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #13
Trainings and workshops are consistent; people are developed for bigger roles in the
organisation.
Sno Responses
1 Agree
2 Strongly Agree
3 Agree
4 To Some Extent
5 Strongly Agree
6 Agree
7 To Some Extent
8 To Some Extent
9 Disagree
One set of three of the participant companies have expressed that they are „Agreed‟.
And the other set of three companies expressed that they are agreed to some
extent.
Response
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #14
Sno Responses
1 Agree
2 Strongly Agree
3 Agree
4 Agree
5 Agree
6 Strongly Agree
7 Agree
8 Disagree
9 Agree
Six of the participant companies have expressed that they are „Agreed‟.
Response
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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Question #15
Sno Responses
1 Disagree
2 To Some Extent
3 To Some Extent
4 Agree
5 To Some Extent
6 To Some Extent
7 Strongly Disagree
8 Strongly Agree
9 Agree
Four of the participant companies have expressed that they are „agreed to some
extent‟.
Response
0
Strongly Agree Agree To Some Disagree Strongly
Extent Disagree
[ Jayabalaji Sathiyamoorthi ]
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SUMMARY OF THE QUESTIONNAIRE
[ Jayabalaji Sathiyamoorthi ]
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APPENDIX – C
List of organizations participated in the innovation survey
TVS Motor Company, India
http://www.tvsmotor.in/index.asp
Wipro Technologies, India
http://www.wipro.com/
Westpac, New Zealand
http://www.westpac.co.nz/
HCL Technologies, USA
http://www.hcltech.com/
Air miles, UK (A British Airways Subsidiary)
http://www.airmiles.co.uk/home.do
Robert Bosch, Germany
http:// www.bosch.com
Renault Nissan Technology and Business Centre India Private Limited
http://www.nissan-global.com/EN/GLOBAL/
SAP Labs India (P) ltd
http://www.sap.com/india/index.epx
Fastrack Design, Inc, USA
http://www.fastrack-design.com/
[ Jayabalaji Sathiyamoorthi ]
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