Management of Innovation

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Presentation covers nature of Innovation, Management of Innovations,Training, Skills and Network of Innovations. It also looks at Technological innovations and its management.

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Management of Innovation:

Management of Innovation Gopaldas Pawan Kumar Excerpts from “ Corporate Creativity” -The Winning Edge By Pradip N Khandwalla

Nature of Innovation:

Nature of Innovation Innovation could be internal or an external for a company to develop. There are technical and Non- technical innovations. Requires resources to be allocated Innovations means embarking on uncertain voyage ‘Skunk works’ and Dedicated teams are formed. Innovation also has to tackle politics and ‘market’ it properly. Mind sets differences need to be sorted out . Innovation has two phases – Design of Innovation and implementation of the same in a professional way. GDP 2

Technological Innovations and their Management :

Technological Innovations and their Management Technological Innovations could be Process or Product Innovations. Top Management involvement. ‘Big Bang’ Innovations (Revolutionary) and ‘Suggestion Box’ innovations (Small , Low Key) Only 2-3 % of the Innovations are only commercially successful. ‘Gate Keepers’ who identify new ideas are to be encouraged . Cross Functional Teams to be formed for a collaborative approach. Major blocks of innovations are – internal barriers to communication, inadequate business acumen & creativity , poor follow up etc . sGDP 3

Inter – Organizational and Network Innovations:

Inter – Organizational and Network Innovations Collaboration of competitors or rivals is taking place for mutual growth Ex: Sony and Ericsson, Maruti and Fiat , Apple and Samsung are examples. Network innovations may be tying up with rivals or vendors or distributors. Ex: IT companies with Banks, Insurance companies with Banks, Mobile Towers common for different operators ( Airtel , Reliance, Aircel etc) GDP 4

Design of a Successful Innovative Organization: McKinsey’s7-S Framework:

Design of a Successful Innovative Organization : McKinsey’s7-S Framework S . No Sub System Innovative Features 1 Shared Values Quality and Service , Originality and newness, Importance of employees , Profits etc 2 Styles Orientation towards excellence, mutual trust and cooperation 3 Systems Systems that improve innovativeness, communication , provide control and rewards. 4 Structure Organic that evolves and grows , flexible , encourages team work, decentralized small groups 5 Staff Entrepreneurial, diversified , cross functional 6 Skill Divergent thinking, integration Skills and lateral thinking 7 Strategy Innovation strategies that are radical, incremental – product, process and administrative. GDP 5

Training for Innovation:

Training for Innovation Creativity Skills can be learned and applied . Training individuals on creativity involves education , development and focus on job related skills and knowledge. It also involves changing attitudes, expanding horizons and developing creative potential. Training for innovation requires changing thinking styles from linear to lateral. For maintaining operational excellence and to sustain growth during business cycles. GDP 6

Management of Innovation:

Management of Innovation Management Innovations are novel changes in decision making in areas like Marketing , HR , Finance ,Operations and in their related fields. Technological Innovations are easier to measure in terms of costs and benefits ,but, Management Innovations are political in nature and affects decision making quality. Once institutionalized , Management Innovations cannot be discarded easily. Diffusion of Management Innovations in a organization is a difficult process due to factors of resistance to change by employees . GDP 7

Agents of Innovation:

Agents of Innovation There are many agents for innovation depending on the area of concern . They could be in an Organization or in Society . The agent of innovation should have the skills to mange innovation diffusion and implementation . He /She should be able to face opposition and develop a team for implementation. Examples: Entrepreneurs ,Venture Capitalists, Fashion Designers , Film Stars , Leaders etc GDP 8

Skills for Sponsoring Innovations:

Skills for Sponsoring Innovations The Change Agents for Innovation are calculated risk takers and have the ability to spot opportunities. They have the following skills: Ability to identify Costs involved and potential outcomes. Ability to identify the significant risks in the venture. Ability to work out “What –if” scenarios. Ability to take higher risks for higher pay- off. Knowledge of high opportunity domains. Ability to convert threats into opportunities, reduce weaknesses and reinforce strengths. GDP 9

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End GDP GDP 10

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