Managing innovation ch2

11/27/2014
Managing Innovation
Chapter2:
Innovation as a core business
process
By Sayed Eltaweel
Eltaweel2000@1 By Sayed Eltawheeol tmail.com
Outlines:
2.1 Introduction
2.2 Variations on a theme
2.3 Evolving models of the process
2.4 Can wemanage innovation?
2.5 Learning to manage innovation
2.6Measuring innovation success
2.7 Success routines in innovationmanagement
2.8 Beyond the steady state
2 By Sayed Eltaweel
By Sayed Eltaweel 1

11/27/2014
Quotes:
• "The enterprise that does not innovate ages and
declines. And in a period of rapid change such as the
present the decline will be fast." - Peter Drucker
• “Creativity is thinking up new things. Innovation is
doing new things.” —Theodore Levitt
• “To live a creative life, we must lose our fear of
being wrong.”—Joseph Chilton Pierce
3 By Sayed Eltaweel
2.1 Introduction
• The challenge facing any organization is to try and find
ways of managing the innovation process to provide a
good solution to the problemof renewal.
• InnovationManagement is a learned capability, So
each organization must find its own particular solution
and develop this in its own context.
4 By Sayed Eltaweel
By Sayed Eltaweel 2

11/27/2014
2.2 Innovation Variations
Innovations vary widely, in scale, nature, degree of novelty
and so on – the same applies for innovating organizations.
5 By Sayed Eltaweel
2.2 Innovation Variations- Cont’’d
• Services and innovations
Service innovations are often much easier to imitate and
the competitive advantages that they offer can quickly be
competed away because there are fewer barriers.
6 By Sayed Eltaweel
By Sayed Eltaweel 3

11/27/2014
• The extended organizations ( outsourcing) and
innovation
Outsourcing is one of the significant developments in business
innovation.
The underlying business model of outsourcing is being able to
do something more efficiently than the client.
Outsourcing companies try to move from providing outsourced
processes toward offering or co-evolve with a client – new
products and services.
The challenge for outsourcing organizations is how can they
develop their capabilities for carrying out processes more
effectively ( Cheaper, faster, higher quality, etc.)
7 By Sayed Eltaweel
• Not for profit and Public–sector innovation
Nonprofit organizations use innovation to help them Compete
against the challenges of , delivering healthcare, education,
law and order.
Public -sector innovations is contested amongst a diverse
range of stakeholders.
Public -sector innovations has different and often conflicting
drivers, and the rewards and incentives may be absent or
different.
8 By Sayed Eltaweel
By Sayed Eltaweel 4

11/27/2014
• Organization size and Innovation.
Regard innovation Smaller organizations possess a range of
advantages over big ones, but at the same time has a range of
limitations.
9 By Sayed Eltaweel
• Organization size and Innovation.
10 By Sayed Eltaweel
By Sayed Eltaweel 5

11/27/2014
• Project-basedOrganization and Innovation.
 For many enterprises one of the challenge is moving towards
project-based organizations, which implies a lot of innovation
in transfer or in projects execution.
• Networks and systems and Innovation.
 Organizations need to shift their way of thinking from that of a
single enterprise to more of a network and system view, so
they need to include other players – customers and suppliers,
competing firms, collaborators and beyond.
By Sayed Eltaweel 6

11/27/2014
• Local, Regional, and national innovations.
 Effective innovation management has a big challenge in case
of regional innovation-led clusters.
• Degree of novelty innovation (Organization uses do
better/ do different innovations).
Organizations use More of the same improvement
innovation require different approaches than the
organizations that uses radical innovation.
By Sayed Eltaweel 7

11/27/2014
2.3 Evolving models of the innovation process
If innovation is process so we need to have a clear and
shared understanding of what that process involves and
how it operates.
Product innovation model– Booz, Allen and Hamilton
Extended view of this model ---- Robert Cooper’s
Design centered innovation model ---- British Standard ( BS
7000
Product Development Management Association (PDMA) –
the innovation process is not so simple as in the linear model.
2.3 Evolving models of the innovation process - Cont’’d
Van de ven and colleagues explored limitations for the simple
model of the process:
Shocks trigger innovations – change happens when people or
organizations reach s threshold of opportunity or dissatisfaction.
 Ideas proliferate – after starting out in a single direction, the
process proliferates into multiple, divergent progressions.
Setbacks frequently arise, plans are overoptimistic, commitments
escalate,mistakes accumulate and vicious cycles can develop.
Restructuring of the innovating unit often occurs through external
intervention, personal changes or other unexpected events.
By Sayed Eltaweel 8

11/27/2014
Van de Ven and colleagues explored limitations for the
simple model of the process – Cont’d:
Top management plays a key role in sponsoring – but also in
criticizing and shaping – innovation.
Success criteria shift over time, differ between groups and
make innovation a political process.
 Innovation involves learning, but many of its outcomes are
due to other events that occur as the innovation develops –
making learning often superstitious in nature
1960s
By Sayed Eltaweel 9

11/27/2014
By Sayed Eltaweel 10

11/27/2014
2.4 Can we manage innovation?
• At first glance it might appear that it is impossible to
manage something so complex and uncertain.
• But it is possible to find an underlying pattern of
success, and some firms and even individuals appear
to have learned ways of responding and managing
innovation.
• Managing is about creating conditions within which an
organization can successfully resolve multiple
challenges under high levels of uncertainty.
2.4 Can we manage innovation?-Cont’’d
• One indicator of managing innovation comes from the
experiences of organizations that has survived for an
extended period of time.
• Success in innovations appears to depend upon two
key ingredients:
 Technical Resources (People, equipments, knowledge,..)
 The capabilities to manage these resources.

11/27/2014
• Organizations create what is called Routines or “ the
way we do things around here” over time as a result of
mastering specific behaviors when facing challenges.
• These routines can be a form of policy, 3M developed
the 15% policy, in which employees are enabled to
work on their own curiosity-driven agenda for up to
15% of their time.
• “How wemanage innovation around here” is one of
the routines that differentiate organizations.
• Fashion statements versus behavioral change in
organizations.
 AdvancedManufacturing technology – AMT
 Total Quality Management – TQM
 Business process reengineering – BPR
 Benchmarking best practices
 Quality Circles
 Networking/Clustering
 Knowledge Management
 Open Innovation

11/27/2014
2.5 Learning to manage innovation
• Successful innovation management routines are not easy to
acquire. Because they represent what a particular firm has
learned over time, through a process of trial and error.
• So each firm has to find its own way of doing things (
develop its own routines)
• The core capabilities can become core rigidities – when the
“ way we do things around here” becomes inappropriate,
and when the organization is too committed to the old
ways.
2.5 Learning to manage innovation-Cont’’d

11/27/2014
Type of firms regarding innovation capability
Firm Ch’s
A Firms Unaware about the need for innovation
B Firms Aware about the need for change, but are unclear
About how to go about the process, as their resources
Are limited and lack key skills and experience.
C Firms Have well-developed sense for change
And highly capable in implementing new projects and take a
strategic approach to the process of continuous innovation.
D Firms Operate at the international knowledge
Frontier and take a creative and proactive approach to
exploiting technological andmarket knowledge for
competitive advantage and do so via extensive and diverse
works net

11/27/2014
2.6Measuring innovation success
• Success relates to the overall innovation process
and its ability to contribute consistently to growth.
• Many successful inventions fail to become
successful innovations.

11/27/2014
2.7 Successful innovation management
• Although innovations varies enormously – by scale,
type, sector, etc. But there are two key points:
 Innovation is a process, not a single event, and needs to
be managed accordingly.
 The influences on the process can be manipulated to
affect the outcomes- that is, the process can be
managed.
2.7 Successful innovation management-Cont’’d
Research highlights two critical points:
1. The concept of success routines, which are learned
over time and through experience.
 How firms selects and manage projects
 How firms coordinates the input of different functions.
 How firms links up with customers
2. Innovation needs to managing in an integrated way.
 Firms with strength in R&D and the generation of the
technological innovation- but which lack the abilities to
relate these to marketplace or end-users.

11/27/2014
2.7 Success routines in innovation management
• A number of models for auditing innovation have been
developed in recent years, which provide a framework against
which to assess performance in innovation management.
2.7 Success routines in innovation management –Cont’’d
Success in Innovation Management process model requires:
• Search:
Well developed mechanisms for identifying, processing and
selecting information from turbulent environment.

11/27/2014
• Selection:
Firms select one option of the various market and technological
opportunities, and the choice must fit with the overall business
strategy of the firm, and build upon established areas of
technical and marketing competence.
The important thing here is to insure that there is a good fit
between what the firm currently knows about and the proposed
changes it wants to make.
• Implementing:
• In this phase the firm turns the potential ideas into some kind of
reality , for example a new product or service, a change in
process , a shift in business model.
• This phase has three core elements:
 Acquiring the needed knowledge
 Executing the project successfully
 Launching and sustaining the innovation

11/27/2014
• Capture:
• The purpose of innovationsmust be to capture some kind of
value from them – be it commercial success, market share, cost
reduction or – as in social innovation – changing the world.
• Technological, and capabilities and routines Learning are also
extra captures of innovationmanagement process.
2.8 Beyond the steady state
• we can observe some of the basic elements of the
complementary routines associated with successful
innovation management under discontinues
conditions.
• These tend to be linked with highly flexible behavior
involving agility, tolerance for ambiguity and
uncertainty, emphasis on fast learning through
quick failure – very much characteristics that are
often found in small entrepreneurial firms.

11/27/2014

11/27/2014
THE END

Managing innovation ch2

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (12)

Ähnlich wie Managing innovation ch2

Ähnlich wie Managing innovation ch2 (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Managing innovation ch2