Applying the change theory with

references to Innovation

APPLYING CHANGE THEORY WITH REFERENCE TO INNOVATION

MARIAM MANZAR

BBA- 8C

REG # 7592

CHANGE MANAGEMENT

BAHRIA UNIVERSITY KARACHI CAMPUS

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

INNOVATION

An invention is useful only to the inventor unless it is offered to the public, however niche that public may be. If the
invention improves some product, process or service for the public, then that invention transforms into an
innovation.

An innovation can be big or small. Brand-new or just a bit different, it doesn’t matter. An innovation can be clearly
complex or seemingly simple. Innovations are often thought of in terms of technical achievement, but can also be a
design. The type, industry and style of innovation are irrelevant; an innovation’s impact determines its qualification.

The presence of a genius can help with innovation – it may speed up the end result by having a person who can see
and make the future happen. However, innovation is more than the work of any one “Einstein.” Innovation involves
the taking of the work of an individual (or team) of inventors and taking it to a broader audience.

“Real” Innovation does not happen haphazardly or sporadically within organizations. “Real” Innovation is
accomplished consistently and systematically, given the true voice of the customer and a process for delivering
solutions. Companies that innovate successfully do so using an efficient and repeatable methodology. Success is not
dependent upon genius – it emerges from the disciplined application of a proven innovation methodology.

There are many authors who have commented on innovation and have drawn very different conclusions on the
following questions:

1. What is innovation ? Drucker(2006), Flystra(2006), Webster(2006) and Gunzinger (n.d)

2. Why innovation is important? Gunzinger (n.d)

3. Difference between innovation and leadership? Selman(1999) and Barsh, Capozzi and Jonathan (2008)

4. What are the types of innovation? Tidd et al (2005)

5. What are the forms of innovation ? Baumgartner(2004)

6. Is organizational innovation important to keep the organization competitive? Fleming(2008)

7. How much does innovation contributes to the organizational success? Steven(2004)

8. What is the contribution of Human Resource Department in the implementation of the innovation? Phillips(
2008) , Laursen and Nicolai (2000) and Reynold(n.d)

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

9. Does innovation increases the stress or fear in the employees? Papageorge(n.d)

10. Is it important to analyze the employee behavior regarding innovation before its implementation? Phillips
(2008) and Callahan (2003)

What is innovation ?

Innovation is not a random event or intangible activity. It is a process. More specifically, innovation is
best defined as “the process of devising a solution that addresses unmet customer needs.”

According to Webster(2006) , innovation is:

1 : the introduction of something new

2 : a new idea, method or device

Drucker(2006) believes that Innovation is the specific instrument of entrepreneurship... the act that endows
resources with a new capacity to create wealth. Fylstra(2006) states that Innovation is hard to schedule.

The future of many businesses depends upon their ability to innovate. Competition is fierce. Knowledge spreads
quickly. The ability of a company to not only keep up with its current business practices, but to exceed its own – and
its competition’s – expectations are critical to survival.

The definition of innovation is that it is "the successful exploitation of new ideas". This implies that it is not just the
invention of a new idea that we are interested in, but that this idea is actually "brought to market", used, put into
practice, exploited in some way, maybe leading to new products, processes, systems, attitudes or services that
improve something or add value.

There are different kinds of innovation. The main ones are:

• Incremental innovation - where something is adapted or modified. This may mean that an old idea is
transferred to a new setting or that existing ideas are embedding in a new setting.
• Radical innovation - which involves completely new ideas.

Developing something innovative can be an individual process but what has been frequently observed that this is
being done by groups of people who may take on different aspects of the process, playing to their individual
strengths, knowledge and roles in an organisation.

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Smith (n.d) says that the goal of innovation is to create business value by developing ideas from mind to market.
And it is, for most companies, tremendously difficult to achieve. Innovation isn’t difficult because employees don’t
have good ideas.

The world is awash with creativity and technological breakthroughs. Rather, myriad obstacles in the idea-to-cash
process limit a company’s ability to innovate. Rigour and training are required to overcome these obstacles.
Seen as the creator of new value, innovation isn’t hit-or-miss, trial-and-error lateral thinking, but a repeatable
process. What is innovative about innovation today is the realisation that it can be achieved systematically, and that
the innovator is an obsessive problem solver.

Gunzinger (n.d) adds that the history of Mankind, our history, is a history based on innovation. Innovation is a
process which leads to improved engineering, technology, methods, state of mind and organization. If you look at
it that way, we are constantly involved with innovation as human beings. We have no choice other than to carry on
learning and improving ourselves. Innovation means venturing away from familiar ground into uncharted territory.
With the aim of somehow discovering something better in the uncharted territory than on the familiar ground.

Why innovation is important?

Innovation is considered important now because now the companies are facing a number of key
challenges. Globalization, the technological and knowledge revolutions, cultural debate and climate change are
issues that face companies all at some level. They mean that as well as wanting to innovate in order to improve a
process or product and add value, companies also have to innovate because there is an overwhelming imperative to
do so. These issues pose challenges for the private sector, for public services and for governments and policy
makers.

Globalization and shifting patterns of trade and commerce with manufacturing increasingly being undertaken in
countries where labour costs are lower mean that different skills will be required by the workforce of the future.

Growing up in the world of MySpace, the popular social networking site, or Second Life, the rapidly growing 3-D
virtual world built and owned by its "residents", with the whole web providing exabytes of information offers the
potential for very different educational experiences.

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Migration patterns and shifting demographics along with climate change will also impact on the futures of the young
people in our society.

All this leads companies to consider that innovation is now an essential component of any kind of system that has an
impact on education. They focus on innovation in public services to improve the experience of users.

Gunzinger (n.d) commented on the importance of innovation and says that Today our memory is primarily driven by
the laws of the free market. So a supplier needs to churn out innovations constantly, otherwise the competition will
leave him standing.

If a company comes up with little or no innovation, there are no short-term consequences, there may even be a
positive effect on profits. Developing innovation always entails provision of resources as well, and making a long-
term investment in the company's future.

Innovation is becoming important because:

• Technology is changing fast, new products come from new competitors

• Fast changing environment, product lifetimes shorter, need to replace products sooner

• Products are increasingly difficult to differentiate

• Customers are more sophisticated, segmented and demanding, and expect more in terms of customization,
newness, quality and price

• Customers have more choice

• New technologies no-one understands

• Apparently separate technologies come together

• Markets forming and changing fast

• With markets and technology changing fast, and good ideas quickly copied, there is continual pressure to
devise new and better products, processes and services faster

Difference between innovation and leadership?

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Selman(1999) explains that Innovation and leadership are closely related. Leadership always has some focus on
bringing about a better future. In this sense, leaders are necessarily innovators. We would not normally consider a
spectator of the status quo to be a leader. The term innovation also suggests some break with the ‘norm’ or the status
quo. ‘Innovator’ and a ‘leader’ are cut from the same cloth, that these terms are distinguishing different but
intersecting dimensions of the same phenomenon.

Barsh, Capozzi and Jonathan (2008) commented that like short skirts, innovation has traditionally swung into and
out of fashion: popular in good times and tossed back into the closet in downturns. But as globalization tears down
the geographic boundaries and market barriers that once kept businesses from achieving their potential, a company’s
ability to innovate—to tap the fresh value-creating ideas of its employees and those of its partners, customers,
suppliers, and other parties beyond its own boundaries—is anything but faddish. In fact, innovation has become a
core driver of growth, performance, and valuation.

Their research bears out the point that More than 70 percent of the senior executives in a survey say that innovation
will be at least one of the top three drivers of growth for their companies in the next three to five years. Other
executives see innovation as the most important way for companies to accelerate the pace of change in today’s
global business environment. Leading strategic thinkers are moving beyond a focus on traditional product and
service categories to pioneer innovations in business processes, distribution, value chains, business models, and even
the functions of management

What are the types of innovation:

Innovation Innovation
Category Type Description of type Business example

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Finance 1 How you make money Dell revolutionized the personal computer business model
Business by collecting money before the consumer's PC was even
model assembled and shipped (resulting in net positive working
capital of seven to eight days).

2 How you join forces Consumer goods company Sara Lee realized that its core
Networks with other companies competencies were in consumer insight, brand management,
and for mutual benefit marketing and distribution. Thus it divested itself of a
alliances majority of its mfg. operations and formed alliances with
mfg. and supply chain partners.

Process 3 How you support the Starbucks can deliver its profitable store/coffee experience
Enabling company's core to customers because it offers better-than-market
process processes and workers compensation and employment benefits to its store
workers--usually part time, educated, professional, and
responsive people.

4 How you create and Wal-Mart continues to grow profitably through core process
Core add value to your innovations such as real-time inventory management
processes offerings systems, aggressive volume/ pricing/delivery contracts with
merchandise providers, and systems that give store
managers the ability to identify changing buyer behaviors in
and respond quickly with new pricing and merchandising
configurations.

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Offerings 5 How you design your The VW Beetle (in both its original and its newest form)
Product core offerings took the market by storm, combining multiple dimensions
performance of product performance.

6 How you link and/or Microsoft Office "bundles a variety of specific products
Product provide a platform for (Word, Excel, PowerPoint, etc.) into a system designed to
system multiple products. deliver productivity in the workplace.

7 How you provide An international flight on any airlines will get you to your
Service value to customers intended designation. A flight on Singapore Airlines,
and consumers beyond however, nearly makes you forget that you are flying at all,
and around your with the most attentive, respectful, and pampering pre-
products flight, in-flight and post-services you can imagine.

Delivery 8 How you get your Legal problems aside, Martha Stewart has developed such a
Channel offerings to market deep understanding of her customers that she knows just
where to be (stores, TV shows, magazines, online, etc.) to
drive huge sales volumes from a relatively small set of
"home living" educational and product offerings.

9 How you Absolut conquered the vodka category on the strength of a

Brand communicate your brilliant "theme and variations" advertising concept, strong
offerings bottle and packaging design, and a whiff of Nordic
authenticity.

10 How your customers Harley Davidson has created a worldwide community of

Customer feel when they interact millions of customers, many of whom would describe
experience with your company "being a Harley Davidson owner" as a part of how they
and its offerings fundamentally see, think, and feel about themselves.

Tidd et al (2005) argues that there are four types of innovation; consequently the innovator has four pathways to
investigate when searching for good ideas:

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

a) Product Innovation – new products or improvements on products. The new Mini or the updated VX Beetle, new
models of mobile phones and so on.

b) Process Innovation – where some part of the process is improved to bring benefit. Just in Time is a good example.

c) Positioning Innovation – Lucozade used to be a medicinal drink but the was repositioned as a sports drink.

d) Paradigm Innovation – where major shifts in thinking cause change. During the time of the expensive mainframe,
Bill Gates and others aimed to provide a home computer for everyone.

Statistics Canada's Survey of Innovation 2005 asked distinguished five types of innovation which are :

Product Innovation

1. Introducing a new or significantly improved good

2. Introducing a new or significantly improved service

Process Innovation

1. Introducing a new or significantly improved method of manufacturing or producing goods or services

2. Introducing new or significantly improved logistics, delivery or distribution methods for inputs, goods or
services
3. Introducing new or significantly improved supporting activities for processes, such as maintenance systems
or operations for purchasing, accounting, or computing

The Survey of Innovation 2005 found that two-thirds (65%) of manufacturing establishments were innovative, while
approximately one-half of all establishments indicated that they introduced a new or significantly improved product
innovation and one-half indicated that they introduced a new or significantly improved process innovation

Generally speaking, there are three different types of innovation: (1) product and service innovation, which focuses
on improving a product or service, (2) operational innovation, which focuses on making an internal business process
a core strength, such as Toyota did with the automotive production process, and (3) business model innovation,
which focuses on creating a new formula for making money. Google, for example, has reinvented the way a
company makes money with advertising on the Web.

When it comes to product and service innovation, there are four growth paths: (1) core market growth, which is
making improvements to products and services that already exist in order to help customers get a job done better, (2)
adjacent or related market growth, which is improving existing products and services to help customers get related
or ancillary jobs done (for example, by adding a tongue cleaner to a tooth brush), (3) new market creation, which is

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

creating a new product or service for customers who are trying to get a job done but cannot because no solutions or
only ad hoc solutions exist, and (4) disruption, which is specifically defined as the creation of a technology that
enables a new set of customers to perform a job that only specialists could previously perform. Crest Whitestripes,
for example, made it possible for people to whiten their teeth on their own, eliminating the specialist – the dentist.

Disruptive innovation

So much has been written about disruptive innovation that the word “disruptive” has become a way to refer to
practically any type of innovation that changes anything. Although a company can be impacted – even to the point
of its demise – by a competitor that employs a strategy of operational and business model innovation (we see this
with Wal-Mart in the retail industry), this is not disruptive innovation.

It is important for a company to be specific in the way it defines its innovation strategy, as different strategies
require different tactics. Companies must keep in mind that not everything is disruptive innovation – a better
categorization scheme is needed.

Outcome-driven innovation

Using the job the customer is trying to get done as the unit of analysis, rather than technology, we say that
companies can engage in product or service innovation by (1) helping customers get a job done better, (2) helping
them get related jobs done, (3) helping them get new jobs done where no product currently exists, and (4) helping a
new set of customers perform a job that was previously performed by other, more skilled people. Using this simple
framework, product and service innovation initiatives can be planned and executed predictably.

Ting-A-Kee(2006) states that as businesses evolve, innovation becomes increasingly important for companies to
survive. The new paradigm is, "The fast eat the slow." When examining the magnitude of an innovation you can use
the following chart to categorize the innovation.

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

• Improve the core business - Take something that works and add a new wrinkle to it (e.g., add a clock.)
• Develop new capabilities - Find a new way to do something within an existing marketplace.
• Exploit strategic advantage - Extend a competitive advantage into a new market (e.g., Nintendo extended
their video game systems into the portable video game system market with the Gameboy. Nintendo can no
longer claim the top position in the console market however they have the vast majority of the portable
market.)
• Create revolutionary change - Create a new capability for your company and use it to fundamentally
change how your company operates and behaves (e.g., The introduction of the Apple Ipod and Itunes.
Think of how these two products have changed Apple's business model.)

What are the forms of innovation?

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

The most common accepted innovation is that of the development and exploitation of a new
product that has a ‘customer delight factor’. While this is difficult to achieve, many such concepts are based on
factors such as:

• the introduction of a product or service from one sector across to another sector
• deep insights to a limited element of an existing product, from which a new product is created
• the exploitation of a new technology.

There is an increasing level of new products, an ‘explosion of products’ when compared with some decades ago.
This creates much greater competition, but also limits opportunities by many companies to create their innovative
products as they will already have been created and patented.

There is increasing attention to innovation in services. The extent of international services provides an opportunity
for much greater value through innovation. Many new services are being identified, and many of them are
technology bound. The availability and applicability and integrity of the technology become extremely important.

Baumgartner(2004) says that it seems everyone is talking about corporate innovation these days. Erkki Liikanen, the
European Commissioner in charge of the Information Society and Enterprise Directorates General can hardly open
his mouth without speaking of European business's need to be more innovative. Nevertheless, to look at all
corporate innovation as being the same kind of innovation is dangerous. Defining categories of innovation not only
clarifies the kinds of innovation necessary, but also points out approaches for promoting appropriate innovation
within the organisation.

Corporate innovation can be divided into four categories:

1. customer oriented innovation

2. product innovation
3. process innovation
4. strategic innovation

Is organizational innovation important to keep the organization competitive?

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Process innovation has become critical to greater competitiveness. Operational and organizational
improvements can greatly enhance the ability of an organization to carry out business. However processes need to
be considered from entirely new angles to make for true innovation. The result can be an entirely new way of
working, new models of outsourcing and collaboration. It can also create opportunities for entirely different products
and services. In IT we are seeing how improvements in Amazon processes are opening up possibilities of exploiting
their network and intellectual assets for new services to major internet operations such as social networking.

Business model innovation represents a new way of carrying out business. An example of this is the change by
software product companies to become service companies through operation of their products as a service (SaaS
software as a service). In this example the switch is from sale of software as a technology play to sale of a core
competence that includes deep knowledge of their market combined with professional services and use of their
software technology.

Fleming(2008) believes that innovation is essentially a process of recombinant search. Having studied more than
17,000 patents, Fleming(2008) says it’s essential to understand innovation in a very basic light: that is, a new
combination of components, ideas or processes. Every invention can be thought of as an assembling of these parts.

Fleming (2008) says, in order to have more control over the innovation process, companies must understand that
inventing is an iterative process, one that has a distribution of outcomes. And, in fact, this distribution is very
skewed. According to Fleming’s research, almost all inventions are useless. A few have moderate value and only a
tiny, tiny few are breakthroughs.

How much does innovation contributes to the success of the organization?

Does the future success of the organization require ongoing innovation? if people keep doing
things exactly as they do them today will they be just as successful in five years? If organization is dependent on
knowledge work and professional competencies it’s highly unlikely the winning formula will remain unchanged.
Steven (2004) states Innovation is essential!

Steven(2004) elucidates that the challenge is that leading a team or organization for continuous high-performance

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

innovation requires different structures, processes, and culture than managing for continuous high-performance
operations. In contrast, organizational characteristics that encourage ongoing innovation include:

• Rewards emphasizing group performance over that of individuals

• Minimal formal structures and hierarchal roles

• A climate that is personal and non-critical

The implications are that leaders must do the following to create opportunities for innovation in their organizations.

• Establishing rewards for innovation

• Aligning innovation structures with operational ones

• Encouraging a climate conducive for innovation

If the organizations stop innovating it is impossible for them to succeed and following would happen:

• Customers stop buying your products, processes and services

• Sales drop

• Revenues drop

• Shareholder returns drop

• Stock price drops

• Key employees leave

• More customers stop buying your products, processes and services

• Sales drop

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

What is the contribution of human resource department in the implementation of

innovation?

Phillips( 2008) explained why HR is so important to corporate, especially sustainable innovation.

First, innovation is foremost a commitment of resources to an uncertain future. People dislike uncertainty and are
somewhat unwilling to risk their jobs or futures working on items that are new or risky, without the appropriate
assurances that the firm needs and requires people to try new things and make mistakes. So, the ability to
communicate that failure is expected and people need to "think outside the box" and will be rewarded for doing
those things is important.

Second, HR need to identify people who can "think outside the box". Let's not assume that everyone is equally
innovative, but instead let's recruit people for their innovation capabilities. Are they inquisitive? Are they locked into
one viewpoint or willing to consider others? Are they open to new ideas, new concepts? These questions have a lot
to do with how people are recruited and how their skills are improved to welcome innovation.

Finally, the most powerful force in business is culture. While corporate culture is not necessarily the responsibility
of HR, the people who are hired and the training and cultural imperatives placed on the business are done so through
HR, so HR can have a big impact on whether or not the firm is culturally attuned to innovation.

Laursen and Nicolai (2000) explains in this text that Although organizational structure has sometimes been
mentioned in evolutionary economics as well as in the innovation literature as a possible determinant of innovation
performance, little systematic theoretical and empirical work exist on this issue. In this paper, Laursen and Nicolai
(2000) take their theoretical point of departure in recent work in organizational economics on systems of human
resource management practices. They put and develop the argument that just as complementarities between new
HRM practices positively influence financial performance, they will also positively influence innovation
performance. Laursen and Nicolai(2000) examine this overall hypothesis by estimating an empirical model of
innovation performance, using data from a Danish survey of 1900 business firms. Using principal components
analysis they identify two HRM systems which are conducive to innovation. The first is one in which all of the nine
HRM variables matter (almost) equally for the ability to innovate. The second system, which is found to be
conducive to innovation is dominated by performance related pay and to some extent by firm-internal training. Of
our total of nine sectors They find that the four manufacturing sectors correlate with the first system, while also
firms located in ICT intensive service sectors are (however weakly) associated with the first system. Firms
belonging to the wholesale trade sector tend to be associated with the second system.

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Reynold(n.d) believes that it is important to ensure that a company’s Human Resource Management
processes are geared as much as possible to support the particular needs of innovation.

Does innovation increases the stress or fear in the employees ?

Shortly after the death of the harsh Soviet dictator Joseph Stalin, his successor Nikita Khrushchev was
addressing the Supreme Soviet Council. As the new leader denounced his predecessor’s terrible crimes, a voice in
the back called out: "Comrade, you were there. Why did not you stop him?"

Khrushchev looked around the hall with a look of intense disgust and yelled, "Who said that? Show your face! I
want to know who said that!" No one spoke. No hand went up. After a long and uncomfortable silence, Khrushchev
said, "Now you know why."

Papageorge(n.d) states that Fear exists in every organization. This includes:

• Fear of challenging a dictatorial boss

• Fear of confronting cherished dogmas
• Fear of making mistakes
• Fear of showing ignorance

Papageorge(n.d) believes that the greatest fear is admitting we are fearful. Having this awareness is the start of a
whole new world. According to Papageorge(n.d) all our fears narrow our perceptions, limit our potential, stifle our
creativity and exhaust the energy for innovation. When we do not tell the truth, we withhold critical information that
undermines the quality of decisions. If we are not willing to make mistakes, we will not be able to innovate.

Innovation thrives where everyone can "tell the truth" and not be admonished for so-called "failures." As IBM’s
legendary founder Thomas Watson said upon retirement: "If I had it all to do over again, I would have encouraged
employees to make more mistakes."

Papageorge(n.d) says that as leaders of innovation, we cannot eliminate fear in our organizations. But we can reduce
it. We can do this by nurturing an environment where innovation can flourish; show understanding and acceptance
of intelligent failure; and respond openly when ideas are challenged.

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

In such an open environment, innovation will boom. It takes time and commitment to empower an organization in
which people feel safe. However, as we lower this fear, we will increase the speed and effectiveness of innovation
and, consequently, our collective success.

Papageorge(n.d) gives some tips for reducing fear levels in the organization:

• Follow the law of feedback: This states there is no failure, only feedback. Successful people look at failure as an
"event," an opportunity to embrace learning in the process of success.
• Encourage and reward autonomy: Honor ideas that challenge accepted norms and objectives.
• Support creative experiments: Encourage all brainstorming and input that serves the mission of the organization.

Is it important to communicate innovation with the employees?

Phillips (2008) explains innovation as something which is risky and that creates change, hopefully
for the better, in most organizations. Given that most people are knowledge workers and can apply their skills to the
most pressing needs of the business, it would seem obvious that when a firm embarks on a plan to become more
innovative, and to put good ideas into action on a more consistent basis, that the firm would tell its employees why
innovation is important and what the firm intends to do. Working in the face of corporate cultural inertia, fear of
change and increasing risks of innovation, telling people what the goals are and how they'll be accomplished seems
like a logical approach. Logic be damned. Most firms do a poor job communicating their regular strategic goals to
their employees, and do a spectacularly poor job of communicating the purpose and intent of innovation.

Phillips (2008) believes that As a firm, we harp on consistent communication, before, during and after any
innovation campaign or event.

Asking for innovation and change without developing the expectations in your organization is like asking for
volunteers for a firing squad. Everyone understands the difficulty inherent in an innovation program in a larger
organization, and if the management team isn't willing to commit to a consistent communication effort to set
expectations and publicly support an innovation program, then innovation won't succeed, since none of the
individuals on the team will stick their necks out any further than they believe is safe within the existing culture. No
risk, no change equals little to no innovation.

If the cmpanies management team wants real innovation, then when they build their team ask for a resource to help
with consistent communication about the companies effort, their goals and the change necessary. Ask the senior

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

management to sponsor the communication throughout the organization and keep up a regular drumbeat of
communication about the companies progress and their goals. This has the possibility to change the culture and set
appropriate expectations. Anything else means working against existing corporate culture and without clear goals
and priorities.

Callahan (2003) commented on the importance of the innovation and says that she see as the big hurdle for most
creative endeavors is establishing an effective communications system. Thousands of words are subject to as many
perceived meanings as "creativity" and "innovation." Getting all the members of a functional unit on the same page
about what their organizaitional language is, in precise detail, isn't easy.

Callahan(2003) believes that if the communications systems that support a creative product aren't working so hot,
the creation isn't going to be what it could be.

Conclusion

Innovations are very important for the success of the organization or for the survival of the organization in the
industry because almost every day new innovations are coming up leaving less chance for the other companies to
bring something new in the market. Continuous innovation is the key to success for any organization. The authors
discussed many types of innovations and the forms of innovation that an organization can bring for the betterment.
The Human Resource department plays an expended role in the implementation of innovation as human resource
department is the one that monitors the employees behavior and their working so they know better which innovation
will be successful. The communication of innovation is also considered very important if the innovation is
communicated well to the employees only then the management can succeed here again the Human resource
department play the role of communicating innovation to their employees to reduce their fear level and enhance their
productivity by explaining them why they need to innovate because employees are the people who makes the
organization successful.

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

References:

• Anderson, Frances(2005). Five Types of Innovation In Canadian Manufacturing: First Results From The
Survey Of Innovation 2005. Canada. Statistics Canada.

• Barsh, Joanna, Capozzi, Marla M. and Davidson ,Jonathan (2008) leadership and innovation. Retrieved
Dec 6, 2008 from http://www.mckinseyquarterly.com/Leadership_and_innovation_2089

• Baumgartner, Jeffery. (2004, May4). Four types of corporate innovation. Retrieved Dec 23, 2008 from
http://www.jpb.com/creative/article_4kinds_corp_innovation.php

• Center For Software Engineering, Forms Of Innovation. (n.d). Retrieved DEC 7,2008 FROM
http://www.cse.dcu.ie/our_services/innovation/forms-of-innovation.html

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

• Callahan, Renee Hopkins (2003, June 12). Communicating Innovation: You Need A Pete Anderson!.
Retrieved Dec 25, 2008 from
http://ideaflow.corante.com/archives/2003/06/12/communicating_innovation_you_need_a_pete_anderson.p
hp

• Drucker, Peter , Fylstra, Dan (2006). What Is Innovation. Retrieved Dec 12,2008 from
http://www.realinnovation.com/content/what_is_innovation.asp

• Fleming, Lee (2008, March 18), where do successful innovations come from? Retrieved Dec 11, 2008 from
http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=307

• Gunzinger, Anton.(n.d). What is innovation. Retrieved Dec 19, 2008 from

http://www.scs.ch/index.php?id=28&L=1

• Laursen, Keld and J.Foss, Nicolai (2000), New HRM Practices, Complementarities, and the Impact on
Innovation Performance. Howitzvej 60, 2000 Frederiksberg, Denmark. Copenhagen Business School

• Papageorge, Andrew. (n.d). To Increase Innovation, Reduce Fear. Retrieved Dec 8, 2008 from
http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=349

• Phillips, Jeffrey ( June 11, 2007) The Role Of HR In Innovation. Retrieved on Dec 20th, 2008 from
http://innovateonpurpose.blogspot.com/2007/06/role-of-hr-in-innovation.html

• Phillips, Jeffery(2008, Dec 9). Communicating your innovation goals. Retrieved Dec 25, 2008 from
http://innovateonpurpose.blogspot.com/2008/12/communicating-your-innovation-goals.html

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

• Reynolds, Clive (n.d). HRM and Innovation people planning for innovation tool. Retrieved Dec 25, 2008
from
http://www2.warwick.ac.uk/fac/sci/wmg/research/pard/pardprojects/skills/results/tools/11.0_tool_summary
_people_planning_for_innovation_01nov07.pdf

• Selma, Jim. (1999) Leadership and Innovation: Relating to Circumstances and Change [Electronic
Version].

• Smith, Howard. (n.d) what innovation is . [ Electronic Version ]. A CSC white Paper.

• Stevens, Tom. (2004). Leading for innovation Retrieved Dec 6, 2008 from
http://www.thinkleadershipideas.com/leadershipideasblog/files/leadinnovation.php

• Ting-A-Kee, Marcus(march 27, 2006) From Start To End: Types Of Innovation. Retrieved Dec 8, 2008
from http://rationalizedthoughts.blogspot.com/2006/03/types-of-innovation.html

• Ten types of innovation. (n.d). Retrieved Dec 7, 2008, from

http://www.doblin.com/ideas/TenTypesOverview.html

• Types of innovation. (n.d). Retrieved Dec 6, 2008, from http://www.strategyn.com/innovation.asp

• Webster, Mariam (2006). What is innovation. Retrieved Dec 6, 2008 from

http://www.realinnovation.com/content/what_is_innovation.asp

• What is innovation. (n.d). Retrieved Dec 23, 2008 from http://www.innovation-unit.co.uk/about-us/what-is-

innovation/what-is-innovation.html

• Why innovation is becoming more important.(n.d). Retrieved Dec 25, 2008 from
http://www.johnstark.com/in8.html

Term
paper- fall 2008 semester
 Applying the change theory with
references to Innovation

Term
paper- fall 2008 semester