new enterprise and innovation management

1. INNOVATION MANAGEMENT
Presented by,
SHRUTHI.R.NAIR
2ND SEM
MBA

2. CONTENTS
 MEANING OF INNOVATION
 MEANING OF INNOVATION MANAGEMENT
 ESSENTIAL INGREDIENTS OF INNOVATION
 SOURCES OF INNOVATION
 TYPES OF INNOVATION
 MODELS OF INNOVATION
 ORGANISATIONAL SETUPS THAT FACILITATE
INNOVATION
 INNOVATION PROCESS
 DIFFICULTIES OF SUCCESSFUL INNOVATION
MANAGEMENT

3. MEANING OF INNOVATION
 According to Stephen P Robbins, “Innovation is a new idea applied
to initiating or improving a product, process or service”.
 According to Peter Drucker, “Innovation is the means by which the
entrepreneur either creates new wealth producing resources or
endows existing resources with enhanced potential for creating
wealth”.

4. MEANING OF INNOVATION MANAGEMENT
 According to Harhoff, “Innovation management can be defined as
the attempt to systematically shape and influence innovation
processes in the company in such a way that the company obtains
an optimal return from the creation and marketing of new
products, services and processes”.
 Innovation management is all about taking over and guiding the
four key phases from initial idea through to product launch,
combined with the lifecycle, in the company.
Phase 1: The idea is formulated, an analysis of the state of the art
is conducted and the disadvantage of the current technical
solution are apportioned, i.e., the process of developing a
potential innovation gets under way.

5. Phase 2: The process of protecting the innovation
begins with the preparation of a description of
the problem solution and the filing of rights
application.
Phase 3: Covers enforcement to defence and
preservation.
Phase 4: Covers the implementation, launch and
application of the innovation.

6. ESSENTIAL INGREDIENTS OF INNOVATION
 Something New
 Better Than What Exists
 Economically Viable
Widespread Appeal

7. SOURCES OF INNOVATION
Peter Drucker recommends entrepreneur to monitor
7 sources of innovation that offer entrepreneurial
opportunity
 Unexpected Success, Unexpected Failure,
Unexpected Outside Event.
 Incongruity in Reality.
1) Financial Performance.
2) Look for things that do not Harmonise.
3) Search for the mismatch between customer’s and beliefs
about their needs and wants.

8.  Innovation based on process need.
 Changes in Industry and Market structure that catch
everyone Unawares
 Demographic Changes
 Changes in Perception, Mood and Meaning
 New knowledge.

9. TYPES OF INNOVATION
 Product Innovation.
 Process Innovation.
 Paradigm Innovation.
 Radical Innovation.
 Systems Innovation.
 Incremental Innovation.
 Additive Innovation.
 Complementary Innovation.
 Technology Innovation.

10. MODELS OF INNOVATION
 LINEAR MODEL
Technology Push
User
MARKET Pull
User
Research and
development Manufacturing Marketing
Marketing R&D Manufacturing

11.  SIMOUTANEOUS COUPLING MODEL
Manufacturing
R&D
Marketing

12.  Interactive Model: This model develops this idea
further and links together the technology-push
market-pull models.
Technology Push.Latest sciences and technology
advances in society
Idea R&D Manufacturing Marketing Commercial Product
Needs in society and the market
place.

13. ORGANISATIONAL SETUPS THAT FACILITATE INNOVATION
 Growth Orientation.
 Organisational Heritage and Innovation Experience.
 Vigilance and External Links.
 Commitment to Technology and R&D Intensity.
 Acceptance of Risks
 Cross-Functional cooperation and coordination
within Organisational Structure.
 Receptivity.
 Space for Creativity.
 Diverse Range Of Skills.

14. INNOVATION PROCESS

18. DIFFICULTIES OF SUCCESSFUL IM
 Innovations are not always Profitable.
 Rarely Instantaneous Innovation.
 Diffusion is Uneven.
 Limitations of patent protection.
 Resistance.