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Implement Innovation

Implement Innovation

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Published by Daniel Prins

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Published by: Daniel Prins on Jan 06, 2012
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Your Innovation Hub
INDEXINTRODUCTION1CHAPTER 13History of InnovationInnovation and EconomicsCHAPTER 26Ways to InnovateRisk, Failure, and InnovationThomas Edison on InnovationCHAPTER 39The Innovation HubThe Innovation PipelineEvaluation Criteria for IdeasInnovation is a Cross-Functional ActivityCHAPTER 414More about ValueThe Value ChainIdea Generation CHAPTER 517Business InnovationProduct or Service InnovationMarketing InnovationProcess InnovationCHAPTER 620Problem Solving MethodologiesBuilding Innovation into Business ProcessesMaking Innovation a HabitCHAPTER 725The Innovation PlatformInnovation and PeopleInnovation and PerformanceThe Integrated Innovation FrameworkCONCLUSION30
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Your Innovation Hub
INTRODUCTION
Innovation is the key to growing your business. Most likely, you already know this. What you maynot know is precisely how to go about incorporating innovative practices into your currentbusiness. In the following pages, you will learn the steps that you can take to maximize your success.The word innovation is derived from the Latin “innovatus”, meaning renewal. In business, it is theprinciple of creating new products or services to increase market share and profits. There is adistinction between invention and innovation, though they are often used interchangeably incasual language. Invention is the idea itself, while innovation is the putting into practice of the fullyrealized idea. Ideas are great, but until they are implemented, they are not innovation. To be trulyinnovative, you must have the follow through.Innovation has been called a convex value, referring to the shape of the growth curve on a graph,because it bears fruit in the future. Innovation is cyclical as opposed to linear. Every output is alsoan input, providing information that can be used to decide where to go in the future. Outputs feedback, as well, becoming a means of determining how effective a given procedure or tactic was,the flow that creates continuous improvement.Innovators are bold and confident. They possess “social intelligence”, a combination of charisma,gregariousness, and communication skills that makes them good at bringing others to their way of thinking. In this way they are able to sell others on their ideas in order to get the necessarysupport to see them through to the end. Some people are born innovators, but the skills can betaught.
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Your Innovation Hub
CHAPTER 1History of Innovation
The theory of diffusion of innovation, first studied in 1903 by sociologist Gabriel Tarde, describeshow ideas and technology spread through a culture. It is as applicable to business innovation as itis to social concepts. It begins with knowledge: a new idea or concept is generated. Attitudes areformed about the idea, and it is adopted or rejected on the basis of those attitudes. Followingimplementation, there is a final step, which is the confirmation of the decision; in other words,what was once new becomes routine, or falls out of favor, and the cycle begins again.In business, diffusion of innovation is often illustrated by means of an s-curve, graphing growth asa function of time. Growth begins slowly as a new product or service becomes established andthe word gets out. This is followed by a period of more rapid growth as demand increases.Finally, a plateau is reached and the line stabilizes, or may even begin to drop, signaling thefunctional end of the product’s lifecycle. Continuous innovation requires that new products beunder development already when the previous product is experiencing its growth spurt. That way,the new product will be established and beginning its rise as the old product begins to wane,allowing a business to grow.From manufacturing to service industries, and for every business in between, you cannotcompete without continuous innovation. You’ll be left behind by your competitors. Businesses inthe modern era face competition not only from within their own region and country, but from allaround the world. They must also be competitive worldwide themselves. The only way to surviveis through a dedication to establishing an innovation culture within the organization.The classic example of the perils of failure to innovate is Ford. The automobile manufacturer began with a highly innovative product and revolutionary manufacturing techniques, leading togreat success in its early years. However, for all his business acumen, Henry Ford failed torecognize the importance of continued innovation. Between 1920 and 1927, the company’smarket share fell to 15 percent due to the influence of competitors. The need to innovate isn’t anew concept in business.Taking a proactive approach to innovation impacts your business by improving efficiency,productivity, quality, competitiveness, and market share. It benefits not only manufacturing andretail organizations, but service industries, healthcare, science, and technology. Becauseinnovation principles are scalable, the same basic approach can be applied to an organization of any size and can grow with a business.The intended end result is to gain market share, and therefore profits, by enhancing customer satisfaction. Innovations can be applied directly to the product or service, or to any businessprocess, including implementing of new standards relating to safety, performance, and quality.The most successful organizations incorporate innovations across all areas of the business.Innovation is a human-focused perspective, rather than a process-focused one. Businesspractices are driven by the needs of the customer and the input of the employees at all levels.This approach leads to an improved reputation in the community and in the industry for anorganization and to happier customers and employees. Innovative organizations depend on aninternal distributed network to generate and develop ideas, in contrast to the traditional top-downapproach, in which management determines the course of improvements. Employees areempowered and have a greater stake in outcomes, which improves both morale and the bottomline.Innovation is particularly important in so-called mature markets, not only in times of rapideconomic or business growth. Once you have an established place in the market, your competitive edge depends even more on providing a product or service that is continually
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