The document discusses principles of marketing and innovation. It defines innovation as exploiting new ideas to create new products, processes or services. Key aspects of innovation discussed include creating an innovative culture within an organization, having the proper organizational structure for innovation management, and the role of marketers in driving innovation. The innovation process involves collaborating, strategizing, selecting, evaluating ideas. Managing the innovation process requires making innovations available to customers, collecting feedback, addressing deficiencies, and documenting the process. Open innovation is also discussed as engaging external partners and customers in the innovation process.
6. WHAT IS INNOVATION?
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Innovation is the specific
instrument
of
entrepreneurship
(or
business)... the act that
endows resources with a
new capacity to create
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7. In Simple
•Innovation may be defined as exploiting new
ideas leading to the creation of a new
product, process or service.
•It is not just the invention of a new idea that is
important, but it is actually “bringing it to
market”, putting into practice and exploiting it in a
manner that leads to new products, services or
systems that add value or improve quality.
•It possibly involves technological transformation
and management restructuring.
•Innovation also means exploiting new technology
and employing out-of-the-box thinking to generate
new value and to bring about significant changes
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in society.
8. Need for Innovation
“If an established
organization, which in this
age necessitating
innovation, is not able to
innovate, it faces decline
and extinction”
Peter Drucker
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9. Drivers for innovation
Growth sustainability
• Wealth creation
• Responsibility to the society
• Financial pressure to reduce cost & increase
efficiency
• Increased Competiion
• Shorter Product Life Cycles
• Stricter Regulation
• Demographic, social & market changes
• Rising customer expectations regarding service
& quality
• Greater availability of potentially useful
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technologies coupled with a need to exceed the
•
11. Innovation
Is one which results in the
evolution of new methods of
marketing with enhancements
in product design or packaging,
its promotion or pricing, among
others.
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19. Company’s Role – Creating
an innovative culture
The internal potential of an organization measures how much of employees'
creativity is exploited. The ideas generated by talented individuals and groups
need a receptive environment in which to flourish and become real innovations.
The system openness measures how far ahead an organization can see and
whether it is capable of scanning the “business periphery,” exploiting relevant
but weak signals in the environment.
The overall capacity for innovation is a function of both system openness and
internal potential.
Internal potential with poor system openness leads to a paradoxical case of
“missing the train” or being closed into the “follower's corner” even if the human
resources and the work environment support innovation.
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21. 5 Best practices that create innovative
culture
•Select the most promising innovators, but encourage unexpected surprises
•Create “buffer zones” for the most innovative people
•Give innovators room to “play:”
•Resist the temptation to look for immediate results
•Commit to driving the best ideas through to implementation: Innovators
are seldom the best salespeople for their ideas. The business leader who
want to encourage innovation must act as the first-line filter to test the best
ideas and solutions, choosing which ones are the right ones to see through
to fruition.
•Leaders who want to encourage business creativity must be sure also to
build talent driven, positive cultures that place a value on learning.
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23. Organisational Structure for Innovative
Managment
•In addition to an effective and efficient innovation
process, companies have started adopting an organizational
structure of innovation that enables them to launch innovations
faster.
•In the context of innovation management the innovation process
and its optimization received maximum attention, above all also in
relation to the question how innovations can be launched into the
market-place more rapidly in the spirit of Fast Innovation.
•The innovation machine Toyota as well as Procter & Gamble ,
GE, 3M, IBM, Google, Microsoft, Sony, Hewlett-Packard, DuPont,
Honeywell and Whirlpool have adopted an oranizational structure
of innovation that significantly facilitates Fast Innovation thus
answering the question in affirmative.
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24. management and organisation for Fast
Innovation – Those following by major
companies which are considered Innovative
Champions
1. Delegation of Decisions to Innovation Teams
2. Integration of R&D in the business unit
(product innovation)
3. Co-location of Teams and Departments
4. Central Innovation Teams (product innovation)
5. Central Innovation Funds (product innovation)
6. External Interface for Open innovation
7. M & A Dept (product innovation)
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25. MARKETERS
"Innovation (product or otherwise) … is directly
proportional to the attitude of the marketer”
“Innovations and inefficiencies are persistent
anomalies in organizations."
"… The real question revolves not around whether
the marketers have the vision, but do they have the
courage and fortitude to stand before the board and
defend the opportunity to explore and fail?"
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26. ROLE OF MARKETERS
•CUSTOMER FOCUSED
•WATCH COMPETITION
•BE CREATIVE BUT COPY & MODIFY IF NECESSARY –
(SUSTAIN GROWTH)
•TAKE INITIATIVE
•CHANGE BEFORE YOU ARE FORCED TO
•ALWAYS EXPLORE NEW OPPORTUNITIES
•SHOULD BE A RISK TAKER
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30. MANAGING THE INNOVATION PROCESS –
ANOTHER FACET
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A
MARKETER
CANNOT REST AFTER
AN INNOVATIVE IDEA
IS EXECUTED. HE
SHOULD
PREPARE
HIMSELF FOR….
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31. MANAGING THE INNOVATION PROCESS –
ANOTHER FACET
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1. MAKING THE
PRODUCT
AVAILABLE
TO
THE
CUSTOMER
AT
THE
RIGHT
PLACE
AT
THE RIGHT
TIME. E.G:MOVIE
32. MANAGING THE INNOVATION PROCESS –
ANOTHER FACET
2. COLLECT
FEEDBACK
3. LOOK FOR
DEFICIENCY AND
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34. MANAGING THE INNOVATION PROCESS –
A PRACTICLE APPROACH
•INNOVATE
•QUANTIFY
•ORCHESTRATE/IMPLEMEN
T
•DOCUMENT
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35. OPEN INNOVATION
The idea of bringing customers into the
process of defining the products and service of
your organization is one that is gaining a lot of
steam. In this scenario, companies engage their
social customers for feedback and marketing
purposes
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36. OPEN INNOVATION
•Open innovation is about integrating external partners
in the entire innovation process.
•This should happen not just in the idea or technologydevelopment phase but also in all other phases toward
market acceptance.
•User-driven innovation is great because it directs your
innovation efforts toward market needs. Open
innovation takes you to the next step by providing more
opportunities through external partners as you address
those market needs.
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37. OPEN INNOVATION
•Procter & Gamble illustrates the benefit.
•In 2000, P&G CEO A.G Lafley set a goal of having
50% of the company’s products derived from
external sources.
•To accomplish this, the company consciously
engaged external parties through its Connect +
Develop initiative.
•Through Connect + Develop, P&G conducted a
two-way exchange of ideas and feedback with
industry, leveraging a dedicated staff of over 50
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people.