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Summary - Innovation Management
Innovation managementIn practice, recognizing the need for effective innovation management and achieving it are two vastly different things.
Managing innovation is complex and so there are no 'quick fixes', 'no universal solutions'.
1.2 Innovation drivers
What are the four innovation drivers that create the need for innovation1. Technological Advances
2. Changing Customers and Needs
3. Intensified Competition
4. Changing Business Environment
1.2.1 Technological advances
Explain the driver 'Technological advances'.With the vast array of technological developments, even multinational companies that used to conduct all their own basic research cannot keep abreast of all the developments, using internal resources alone.
Organizations need to monitor the progress of both the technologies they currently use and also that of potential substitutes.
Technological Advances is a driver towards Open Innovation. What is Open Innovation?The sourcing of ideas and technology across organization boundaries.
1.2.2 Changing customers & needs
Explain the driver 'Changing Customers and Needs'.Changing customers means that traditional market sagments are disappearing or fragmenting and companies will need to adjust their product ranges accordingly.
As basic needs are met, there is an additional challenge to innovation - determining customers' hidden needs.
1.2.3 Intensified competition
Explain the driver 'Intensified Competition'.Logistics costs have plummeted and, consequently, 'safe, home markets' are being threatened by foreign competition. Companies may also face competition from sources normally outside their industries.
1.2.4 Changing business environment
Explain the driver 'Changing Business Environment'.Gradually markets have become more open as the market economy has been embraced by most governments and through the efforts of trade groupings.
The regulations affecting specific markets are being relaxed in many Western countries.
A continued focus on efficiency gains will bring only diminishing returns and cost-reduction myopia needs to be replaced by a focus on increasing revenues and profits through new products and services.
1.2.5 Responding to the environment - Strategic intent
Responding to the Environment - Strategic IntentHow an organization chooses to respond to them depends on Strategic Intent: the aims of the key stakeholders, including senior management.
Innovation management is multifaceted.
1.3.1 Definitions of innovation
What is the definition of innovation developed by Joseph Schumpeter?1. The introduction of a good (product), which is new to consumers, or one of increased quality than was available in the past.
2. Methods of production, which are new to a particular branch of industry. There are not necessarily based on new scientific discoveries and may have already been used in other industrial sectors.
3. The opening of new markets.
4. The use of new sources of supply.
5. New forms of competition, which lead to the re-structuring of an industry.
What is the definition of innovation developed by Michael Porter?Innovation is to include both improvements in technology and better methods or ways of doing things.
What is the definition of innovation developed by Everett Rogers?Innovation is an idea, practice, or object that is perceived as new by the individual or other unit of adoption.
What is the definition of innovation developed by the OECD?Innovation consists of all those scientific, technical, commercial and financial steps necessary for the successful development and new or improved processes or equipment or the introduction of a new approach to a social service. R&D is only one of these steps.
How can we compare each definition?There are several common elements: what is changed, how much is changed, the source of the change, and the influence of the change.
Latest added flashcards
- R&D and other managers involved in new product development need to ensure that the learning from innovation projects is identified. Lists of lessons learned can help but promoting interactions between teams and departments can spread the knowledge more effectively.
- Certain key solutions, approaches and the like will need to be documented in a way that the organization does not lose vital information is individuals leave.
- Customers' tacit knowledge needs to be recognized and captured.
- When certain individuals have tacit knowledge that is vital, companies need to ensure that it is shared with colleagues.
- An advantage of a TRIZ database is that engineers involved with finding a specific problem can look up all the generic ways to approach the issue.
- Design trends can be identified and so opportunities for improvement can be spotted.
- It provides insight into how design trade-offs can be managed.