Innovation Process

1) Insight/research
 inspiration from an idea of individual
 idea by something happened
 by customers (survey, complaints)
 by suppliers/distributors/employees (complaint, interview)
2) Development
 Transform idea into products
 At this stage, the products are not ready to sell to consumers yet
 Its all about testing, modifying, improving the products
 Prototype: to determine weakness and improvement before production of real product
 Models: to show how product look like
 Example: Nissan & Ford create small size clay models
3) Design
 Concentrates on product details
 Take ideas form prototype and determine features to final product
 Detailed design gives: materials used, precise shape of the product
 Ensure products not only works well and look good, but cost produced make sense the price
4) Production engineering
 To produce final product, different skills and processes are required to made in vast quantities
 Different process structure, provide different capabilities
 Four basic process structure
 Job shop, batch, line, continuous process
5) Pilot testing
 To ensure for marketplace suitability & acceptance
 To ensure the product is safe in the hand of customer
 Involve interaction with consumers
6) Full scale manufacturing
 Before full-scale manufacture:
 Commission process needs to take place to ensure manufacturing system function as planned
 Recruit & provide training to personnel who are going to operate and use equipment
 End ramp up phase, manufacturing system accuracy and reliability are satisfactory
7) Market launch
 addresses how organizations introduce product to the market and marketing efforts involved.
 concern on when, where, who and how to launch the product.
 some of the activities include:
 conducting demonstrations
 preparing promotion activities
 creating and designing suitable advertisements

2. Organizational Culture

 Component of organizational culture

 There are various ways employees could learn about organizational culture. The common organizational culture components include:
 Paradigm
o Defines organization about, mission, values, what it does
o Culture used as guideline of behaviours and mindsets needed to achieve vision organization
 Control system
o Used to control entire organization which includes finance system, quality system and reward systems.
o The company uses reward system to influence behaviour.
 Stories
o Contain narrative events about the organization founder, rule breaking rich success, reactional to past mistake, organizational coping.
o These stories used to explain and justify current practices to newcomers so that they understand the culture organization.
 Material symbol
o Include corporate headquarter layout, types automobile given to top executive, corporate aircraft, attire, office sizes.
o Convey employees about who is important, the kind of behaviour (risk taking, conservative, individualistic)
 Organizational structures
o Indicates whose contribution the most valued
o Formal hierarchical structures form of top management whom establish organization strategies and everyone else ‘working to orders’
 Power structure
o Influence decisions, operation and strategic directions
o The most powerful grouping within organizations determines core assumptions and belief that will followed by others
 Ritual and routines
o Rituals mean repetitive sequence activities that express and reinforces the keys value organization or what goals that are important
o Routines is a daily behaviour and actions that determines what expected to happen.

3. Organizational Infrastructure

Importance of Vision

 A vision addresses the inquiry of what do we want to become?

 An acceptable vision creates a complete mission statement.
 Doing what is needed to make the organization what it wants to be require and management competence.
 Figure out what the need to be and convey the message to skate holder.
 Is a device to drive the dedication of company workers

Importance of Mission

 Mission is a statement of explanation for what an organization is.

 Mission statements can vary as follow
 customer: stat the firm’s customer
 product of services: state the firm’s major product or services
 markets: the geographic location of the market
 technology: the firm’s technology level
 self-concept: the firm’s major competitive advantage
  concern for employee: the firm’s reaction to their employees

Importance of organization

 Objective characterized as specific outcomes that organization seek to accomplish fundamental mission:
 specific: specific and clear
 measurable: express in quantitative term so that success or failure easily measured
 achievable: should be achievable and attainable
 realistic: realistic and within reach with sources available
 time frame: must have deadline when it should be accomplished
5. Market Type

Consumer market:

 Represented by every single person and family, buying goods and services for personal common needs and priorities
 Consumer behaviour (Three fundamental classes of choice making)
 Routine reaction behaviour
 Constrained choice making
 Broad choice making

Business market:

 Includes associations that purchase merchandise and administrations for utilization to get profit
 Four Classes of Business Customers:
 Producers
 Resellers
 Government
o Federal Government
o State, County and City Government
 Institutions

Difference:

Characteristic Business Market Consumer Market

Volume Larger smaller
Location Concentrated Dispersed
Number of customers Fewer Many
Buy influence Multiple Single
Leasing Greater Laser
Promotion Personal selling Advertising