MANAGING

INNOVATION
What is it?

New way of doing something

Distinction between innovation and invention?

Invention – Primary attempt to bring an idea into practice;

Concerns single product or process.
E.g. mp3 player

Innovation – Tangible thing applied in new ways;

Modern idea applied to present situation.
E.g. iPod
 INNOVATION IN 20TH CENTURY

Is innovation always technology based? Many of the more significant

innovations of the 20th century are organizational rather than
technology based.

New ways work can be organized, and accomplished within an

organization to encourage and promote competitive advantage.

Manage work processes in such areas as customer relationships,

employee performance and retention, and knowledge management.

Encourages individuals to think independently and creatively in

applying personal knowledge to organizational challenges
 SOME USEFUL DEFINITIONS

Luecke and Katz wrote in 2003, “Innovation . . . is generally

understood as the successful introduction of a new thing or method ”.

Building on Schumpeter’s useful definition between invention and

innovation “Invention implies bringing something new into being;
innovation implies bringing something new into use”.
 WHY INNOVATION?

In today’s world, to be a leader in industry you have to be innovative.

Companies must be able to look forward at the strategy and know

how to bring products to market faster than their competitors.

Innovation is the key. It’s not just for the technology;

 4PS OF INNOVATION

Products and services -what is offered.

Processes -how things are done.

Position -how we select and communicate with customers.

Paradigm -the ways that we think about our business.

 SOURCES OF INNOVATION

*Within a company: Unexpected occurrences

Process needs
Industry and market changes

*Outside a company: Demographic changes

Changes in perception
New knowledge
 MANAGING INNOVATION:

Innovation means change.

Such changes can be incremental or radical, evolutionary or
revolutionary, enabling or disruptive. They can have different
effects upon producers and users.

“intuitive.. process…Individual discoveries tend to be

highly individualistic and advances chaotic and
interactive, and specific outcomes unpredictable and chancy
until the very last moment” (Quinn, 1986).

Technological innovation is therefore a messy process!

 CONTD..

Motivate employees to engage in innovative thinking

Measure the degree to which it is pursued

That which gets measured, gets done – applies here

Communication of goals and rewards for achieving milestones

accelerates the growth of ideas
 INTELLECTUAL PROPERTY
RIGHTS

IPR is qualitatively different from most others within

the intellectual capital area, notably because these rights
are legally enforceable.

Exploitation of IPR
Defence by companies of their knowledge against those
who seek to appropriate it.
 IPR CONTD…

Owners are granted certain exclusive rights to a variety of

intangible assets, such as musical, literary, and artistic works;
discoveries and inventions; and words, phrases, symbols, and
designs.

Common types of intellectual property include copyrights,

trademarks, patents and trade secrets in some jurisdictions.
 ISSUES

Fundamental tension between stability and creativity

Conflict between top and lower tiers

Support from top management needed for low level managers

Hostile environment i.e. Resistance to change

Conflicts between organisations for the same technology

 MANAGEMENT FACTORS

Personal understanding of the process of innovation

Continuous learning and study

Curiosity

Openness

Leadership

Focus on strategic issues rather than operational tasks

 PERSONAL UNDERSTANDING

Upper Manager has little interest – unreasonable to presume to

lead and manage innovation

Can innovation be structured and pursued methodically?

Let innovators do their work

Managers’ learning process enhanced if learnt from innovators

 CONTINUOUS LEARNING

Hallmark of every great executive

Senior management cannot coast along on skills and

knowledge acquired long ago

Sharpen skills continuously

 CURIOSITY

Better managed by managers with diverse interests and curious

nature

Managers must be genuinely interested in possibilities

Closer relationship with innovators if really interested in new

ways and things
 OPENNESS

Managers should be receptive to ideas

Openness exhibited towards new & novel, criticism &

Suggestion and learning from everyone & anyone

Can foster a favorable attitude towards innovation process

 LEADERSHIP

Passion for progress and for useful ideas

Continual improvement of organizational capabilities

 FOCUS ON STRATEGIC ISSUES

Focus on the important and strategic rather than the operational

is the mark of an effective upper manager

Focus on those responsibilities that only the executive can

Accomplish
 3M

Minnesota Mining and Manufacturing Company has

76,000 employees; 55,000 products

475 acres (1.92 km2) and has over 50 buildings, including an

Innovation Centre

3M's corporate image is built on its innovative and unique

products

Increase in sales each year by 25% from new products

 SKUNK WORKS

Alias for Lockheed Martin’s Advanced Development Programs

A group within an organization given a high degree of

autonomy and unhampered by bureaucracy, tasked with
working on advanced and innovative projects

More of an entrepreneurial style of activities

 REFERENCE

www.businessweek.com

www.managing-innovation.com

www.authorstream.com

www.articlesbase.com

Managing Innovation by Roger Bean and Russell Radford,

Volume 11, Number 5, May 2008
THANK YOU