Chapter 3

THE ORIGIN OF INNOVATION
Learning Objectives
At the end of this chapter, students should be able to:

– Identify the innovation issues and practices in
matured organizations and new business venture;
– Describe the innovation issues and practices in top-
down and bottom-up management styles;
– Explain the innovation issues in teamwork and
transforming individuals into teams;
– Discuss the behavior of innovators, how they change
the rules of the game, and how they manage the
pressure of innovation.
Innovation Management All Rights Reserved

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Introduction
 No one has a monopoly power on innovation.

 Innovation is open to all of us who has the courage and
the energy to take-on the challenges of promoting
something new that change the current status.
 For example, a well-structured organization with an
established comfort zone view organization from a more
formalized perspective.
 On the other hand, an independent innovator will take-
on innovation as a critical success factor.

Innovation Issues and
Practices
 Top-down Innovation (Directive style management)

– Management set the pace and the targets and
objectives as well as providing the resources.
– While functional areas and professional disciplines
will interact with each other in order to achieve the
objectives.
– For example, Apple, the CEO made all the decisions;
everything had to go through him from design to
launch of a product.

Practices (cont.)
 Bottom-up Innovation
– Every employee is strongly encouraged to get involve in
bottom-up innovation.
– Employees think differently, ask so many questions, have so
many interests, dissatisfied with current conditions, are
arrogant, bring different thinking or values, who always ask
“why not” more often than “why”, who make problems for first-
level managers, but who are the lifeblood and future of the
organization.
– These are the people who throw valuable ideas and are willing
to go through the tedious process of first convincing themselves
and then convincing several levels of management of the value
of those ideas.
Pop Quiz
 How many types of innovation in organization?

– Bottom-up
– Top-down
 Gives 2 differences each?
 Which types is the best?

Practices (cont.)
 The Challenges
– Innovation is a learning process since every day presents
new avenues for investigation.
– Idea born for its simplicity has become very complex since
more thought raises new questions and complexities.
– Bottom-up innovation depends on a specific type of individual
as follow:
• one who is willing to put in personal time and effort to
reaching a goal;
• one who has the drive to pursue a goal in spite of a
possible negative career impact;
• one who will not take no for an answer.
Practices (cont.)
 The Challenges
– Innovators are not always the persons who generate the
ideas.
– Innovation is all about:
• combining the data, information, knowledge and
experience from many different sources.
• competence in integrating knowledge of the
marketing and technical issues as well as viewing
the innovation from a strategic business
perspective.

Team Functions in Innovation
Information
facilitation
Four Roles
Execution of Opportunity
delivery Innovation consultant
Team
Opportunity
enabler

(cont.)
 Ten tips for growth companies in search of high-

performance teams that deliver.
– Start by building a bigger box rather than trying to think
outside the box
– Select your team for who they know as well as what
they know
– Pick one leader and provide him or her the autonomy
they need to be successful
– Build a team that can both identify gaps in the market
and markets in the gap!
– Find team members who tell great stories
(cont.)
 Ten tips for growth companies in search of high-

performance teams that deliver. Con’t:
– Understand the difference between good and bad
conflict
– Supplement the innovation core team with an external
provocateur
– Remember to set goals and measure progress
– Think like a startup entrepreneur
– Ensure team members have “both feet in”

Transforming Individuals Into
Team Members
 Innovation starts with an idea that eventually is

transformed into a real-life concept.
 To develop a real operational and partnership team:
– involves everyone and every participating group.
– involves every function and recognized their roles in
this process.
– breaking the rules.
– develop a functioning team that focuses on the
business objectives-not functional objectives,
– looking for common ground.
Innovators’ Behavior
 Innovation takes off anywhere–in the kitchen; the

garage; the basement; most probably in all three
locations.
 The spirit that supports and guides these innovator or
entrepreneurs presents us with a challenge and wonder.
Why are there so few of them?
 They have a dream; driven to achieve that dream; go for
it relentlessly; spend their valuable time and effort; have
a vision and mission.

Changing the Rules of the
Game
 Innovators not only break the rules of the game but they
also change the game itself.
 They challenge the traditional approaches of
bureaucratic management.
 Examples of the new game in town:
– Apple
– Canon
– Yamaha
– TI
– Lever Brothers

Managing the Pressure in
Innovation
The Change
Agents and Status
Quo
The Focus of
Following and Short-and Long-
Leading term
Dynamic
Pressures of
Routine and Innovation Constraint and
Creativity Freedom
Stability and
Change

 Status Quo: the existing state of affairs,
especially regarding social or political issues


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THE ORIGIN OF INNOVATION

At the end of this chapter, students should be able to:

Innovation Management All Rights Reserved

 No one has a monopoly power on innovation.

Innovation Management All Rights Reserved

 Top-down Innovation (Directive style management)

Innovation Management All Rights Reserved

 How many types of innovation in organization?

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

 Ten tips for growth companies in search of high-

 Ten tips for growth companies in search of high-

Innovation Management All Rights Reserved

 Innovation starts with an idea that eventually is

 Innovation takes off anywhere–in the kitchen; the

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

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