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Definition of Innovation
Introduction of a new product, service or process into the marketplace. Based on several other definitions we can deduce that Innovation=Invention + Commercial exploitation
Innovation
It is the introduction of new product, service or process into the marketplace Results into commercialisation Usually induced
2. 3. 4. 5. 6. 7.
May not be commercialised It can be autonomous or induced Can be for economic or nonEconomic motive economic motive Usually restricted to R&D centre Spread across the organisation May bring few changes in organisation Proceeds innovation Brings organisational change Succeeds invention
Goals of Innovation
Improving quality Creation of new markets Extension of the product range Reducing labor cost Improving production process Reducing materials Reducing environmental damage Replacement of products/services Reducing energy consumption Conformance to regulations
Advantages of Innovation
More sales through new products and new service Enhanced market competitiveness More profitability etc.
Characteristics of Innovation
It can be applied to all i.e. products, services and processes It leads to significant improvement/development It is different from invention Leads to organisational change which is inevitable It has an economic motive i.e. for seeking profits There can be many sources of innovation It is broader than R&D Involves risk and uncertainty It is realised only when the first commercial transaction takes place
Types of Innovation
Product, Service or Process innovations Open and Closed innovations Incremental and Radical innovations Modular and Architectural innovations Generic and Epochal innovations
INNOVATION PROCESS
IT IS THE PROCESS WHICH FACILITATES INNOVATION AND INVOLVES SEARCH AND SELECTION, EXPLORATION AND SYNTHESIS, CYCLES OF DIVERGENT THINKING AND CONVERGENCE.
INNOVATION PROCESS NEEDS SUPPORT AT THREE LEVELS: NATIONAL LEVEL ENTERPRISE LEVEL INDIVIDUAL LEVEL
CONTD
NATIONAL LEVEL:
INNOVATION DIRECTLY DEPENDS UPON THE THE NATIONAL GOVERNMENTS POLICIES AND SUPPORT
ENTERPRISE LEVEL:
INNOVATION DEPENDS UPON THE TOP MANAGEMNTS SUPPORT AND COMMITMENT
INDIVIDUAL LEVEL:
INNOVATION DEPENDS UPON THE ACTIONS AND MOTIVATION OF MULTIFUNCTIONAL TEAMS AND INDIVIDUALS INVOLVED IN THE PROCESS
CONTD
THE MODELS WORKS ONLY WHEN:
TIME REQUIRED TO INNOVATE IS SHORTER THAN RATE OF CHANGE IN ENVIRONMENT QUALITY, RELIABILITY AND SAFETY REQUIREMENTS ARE CRITICAL IT IS SAFE AND SUITABLE FOR A FIRST TIME BEGINNER
LIMITATIONS
DELAYED EVALUATION, OR REJECTION OF GOOD PROJECTS TIME CONSUMING FOCUSSED ON CONTROL LONG REVIEW PREPARTION TIME RIGID FOCUS ON ATTAINING TARGET
CONTD
TWO MODELS FOR UNDERSTANDING LINEAR INNOVATION PROCESS: a) TECHNOLOGY PUSH MODEL
TECHNOLOGY IS REGARDED AS THE KEY DRIVER OF INNOVATION IT INVOLVES SERIES OF SEUENTIAL STEPS: FUNDAMENTAL RESEARCH APPLICATION RESEARCH DESIGN ENGINEERING MANUFACTURING MARKETING AND SALES EXAMPLE: MENU OPERATED COMPUTER SOFTWARE
CONTD
b) MARKET PULL MODEL
IT INCULDES AND INTEGRATES, USER NEEDS IN THE INNOVATION PROCESS IT INVOLVES OF SERIES OF SEQUENTIAL STEPS: ASSESSING CUSTOMER NEEDS CONCEPT/IDEA GENERATION REFINING IDEA TO MEET CONSUMER NEEDS DESIGN ENGINEERING MANUFACTURING TEST MARKETING SALES EXAMPLES: PHONES, UPS. INVERTORS etc.
CONTD
2. INNOVATION PROCESS FLEXIBLE MODEL
COMBINATION OF LINEAR MODEL AND NON LINEAR APPROACHES HAS LEAD TO THE EMERGENCE OF THIRD GENERATION MODELS THESE MODELS INCLUDE TECHNOLOGY PUSH + MARKET PULL COMBINATION R&D + MARKETING CYCLICAL MODEL THE MODELS ATTEMPT TO EXPLAIN RADICAL INNOVATION PROCESS IN A RAPIDLY CHANGING ENVIRONMENT IN THESE MODELS PHASES ARE OVERLAPPED
CONCURRENT ENGINEERING
DURING INITIAL STAGES OF INNOVATION PROCESS, MANY ORGANISATIONS FOCUS ON NEW PRODUCT DEVELOPMENT AND ITS COMMERCIALISATION DURING INTIAL PERIOD, LESS/LITTLE EFFORTS ARE MADE DURING LATER STAGES, FOCUS SHIFTS TO ATTAINING PROCESS EFFCIENCIES THIS APPROACH IS SUITABLE WHEN THE RATE OF TECHNOLOGICAL CHANGE IS SLOW IN THIS APPROACH THE PRODUCT DESIGN PROCEEDS AT THE SAME TIME AS PROCESS DESIGN WITH CONTINUOUS INTERACTION BETWEEN TWO DEPARTMENTS
FAILURES OF INNOVATION
1. INTERNAL CAUSES a) FAILURE IN THE CULTURAL INFRASTRUCTURE
POOR LEADERSHIP POOR ORGANISATION POOR COMMUNICATION POOR EMPOWERMENT POOR KNOWLEDGE MANAGEMENT
CONTD
b) FAILURE WITH IN THE INNOVATION PROCESS POOR GOAL DEFINITION POOR ALIGNMENT OF ACTIONS TO GOALS POOR PARTICIPATION IN TEAMS POOR MONITORING OF RESULTS POOR COMMUNICATION ACCESS TO TO INFORMATION
CONTD
EXAMPLES OF INTERNAL CAUSES ARE:
WHEN R&D EFFORTS ARE GUIDED BY MARKETING RESEARCH OR CUSTOMER REQUIREMENTS AND PREFERENCES WHEN R&D EFFORTS ARE NOT GUIDED BY MANUFACTURING CAPABILITIES AND SKILLS AND THERE IS NO CHANGE/IMPROVEMENT IN MANUFACTURING CAPABILITIES/SKILLS WHEN THERE IS NO CORRESPONDING CHANGE IN ORGANISATIONAL PROCESSES WHEN NEW PRODUCT LAUNCH IS NOT ACCOMPANIED BY CHANGE IN MARKETING STRATEGIES
CONTD
2. EXTERNAL CAUSES
EXAMPLES ARE: MISMATCH BETWEEN PRICE CHARGED AND VALUE BENEFITS PERCEIVED BY CUSTOMER MERE IMITATION/COPY WITHOUT ANY INCREASE IN VALUE/UTILITY TO CUSTOMER COMPETITOR BRINGS IN DISRUPTIVE TECHNOLOGY/ INNOVATION GOVERNMENT REGULATIONS UNDERGO CHANGE ADVERSLY AFFECTING INNOVATION
Innovative Organisation
Emphasis on:
Top managements commitment and support. Capability /need to manage in the light of corporate restructuring and transient senior management. High degree of flexibility in planning and control. Effective communication. Multifunctional teams. Internal integrity. Supporting organisational culture and environment.
Innovision
It is long term orientation / approach of the nation or organisation towards innovation. It means building the future through Technological excellence Technological leadership Innovation
Innovation Strategies
Depends upon: Government support and policies. Risk taking ability. Organisational goals and policies. Degree of technological changes. Degree of competition. Availability of funds. Age of the organisation.
Install various gatekeepers at various stages. Extended budgetary support. Carry out rigorous progress review. Use more controls.
Innovation Management
Innovation management
Continued ..
Top management s commitment and support. Planning and control systems with high degree of flexibility. Corporate restructuring and transient senior management. Respect for individual initiative and personal growth. Building a unified and committed multifunctional team.
Continued
Supporting organisational culture and environment. The manager of the technology must be well trained and sensitive to the pattern of the technology change,market needs and business opportunities. Effective communication in the organisation.
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