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Ass Sbmt Innovation)

Ass Sbmt Innovation)

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Published by Farrukh Jamil

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Published by: Farrukh Jamil on Oct 31, 2010
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here isn¶t a business that doesn¶t want to be more creative in its thinking.

According to one study, 75 per cent of CEOs of the fastest growing companies claim their strongest competitive advantage is unique products and services and the distinct business processes that power them to market ± innovation by another name. In another survey, the organizations believe innovation is a strategic priority . The trend was also confirmed by research undertaken by consulting firm. Their conclusion: the importance of innovation in all sectors is growing, and growing significantly. In today¶s ever-changing economic landscape, inventiveness has become a key factor influencing strategic planning. IT guru Kevin Kelly once said, ³Wealth flows directly from innovation... not optimization... wealth are not gained by perfecting the known´. Efficiency, while a necessary condition for business success, is insufficient to sustain growth over decades. While new levels of efficiency and productivity require inventive solutions, the goal of efficiency is not the same as the goal of innovation. Often, innovation results from the planned and deliberate recombination of ideas, people, and objects from the past that spark new technological revolutions, sought after service concepts and effective business models. Yet to stand as valuable innovations, new products and services must be sufficiently robust to progress efficiently through the end-to-end commercialization process and into the hands of customers. Leading companies continuously seek out and institutionalize the insights and tools they will need if they are to stay at the leading edge and be top-rated stars in their sector. Some companies build enduring capacities for breakthrough innovation. Economist and management consultant PeterDrucker once said, ³An established company which, in an age demanding innovation, is not capable of innovation, is doomed to decline and extinction´. Today, many companies are taking steps to strengthen their ability to innovate ± innovating to renovate the innovation process itself. In short, such companies are developing a reliable operating system for innovation, a key indicator of corporate sustainability.


The human factor

You can't create a culture of ongoing innovation if you don't hire the right way. To get people to think and behave as innovators, you need to foster an acceptance ± even a search for -- of unusual though desirable background traits and behaviours. It starts with recruitment. Managers shouldn't see evidence of a past failure as a blot on a potential employee's resume. The best people are found in unusual places -- sometimes outside of your own industry, sometimes with an atypical education, so that they can bring ideas into the workplace . Character and attitude are

etc) from a limited set . The best hires will likely be people who have diverse. "every organization has the capacity to become innovative. taking risks is discouraged. the process and the customer. Redirecting . from supply chain to social networking. As the Ivey Business School Dean. Innovation for all You can innovate if you're small and you can innovate if you're big. marketing. has written. Innovation must be an initiative that integrates and encompasses the product.taking new ideas and trying to force them into existing frameworks. Forcing behaviour back into "the box".to the exclusion of others. What Kills Innovation? Most organizations have strong influences to normalize employee behaviour. When activities extend beyond the accepted (an innovation spike). real-world experience behind them and have something to prove to the world. Big. unless we are pressed to consider other choices.to a department or a project. By not tolerating failure. It has to be a part of the culture. devote the resources. The objective often seems to be to limit behaviour/activities to acceptable levels. face the truth. The greatest threat to innovation is the response of an organization. The most important thing is for innovation to become institutionalized across all parts of the company. Failure is a part of any endeavor that involves risk. essentially. that we limit our acceptance of new ideas that have not yet moved into our "evoked set". To extend this. decades-old brands are just as able to become innovative as small and scrappy new companies--if they're willing to make the commitment. Evoked set. From the manufacturing process to the customer experience. This creates a behaviour pattern that is (usually) an unspoken standard of what is/isn't appropriate for the entire organization. Silencing . and above all. y . Low tolerance for failure. Carol Stephenson. evoked set states. the organization enacts normalizing (can be subtle) through: y y y y y y Cutting funding .the idea or the person (this is a passive way of silencing). Virginia Postreluses the example of selecting toothpaste to explain how this works: we select toothpaste based on our learning over time (through advertising.the idea or the person. innovation must occur at every point across the board. Companies shouldn't just think about innovative products. Ignoring ." It's not just for start-ups. the concept of limited group of ideas from which we will tend to select.also important qualifiers. Innovation is for all.

to convert a "material" into a "resource. curiosity. The very foundation of innovation is inefficient. or the desire for fame and recognition-try to create value and to make a contribution.  . after innovation has run its course (and birthed new processes and products). the unexpected failure. Innovation. is subject to the same threats that face anything new or different." or to combine existing resources in a new and more productive configuration. As a ruie. systematic innovation means monitoring seven sources for innovative opportunity. successful entrepreneurs aim high. They try to create new and different values and new and different satisfactions. whatever their individual motivation-be it money. Innovation and organization are often at odds with each other. these are changes that have already occurred or are under way. or within an industry or service sector. Specifically. Ideally. They are not content simply to improve on what already exists. power. The challenge is to create a structure (architecture) that fosters innovation (environment). and in the systematic analysis of the opportunities such changes might offer for economic or social innovation. the unexpected outside event. They are therefore visible primarily to people within that industry or service sector. Sometimes the only bad idea is the one that limits future expressions of ideas. But they are highly reliable indicators of changes that have already happened or can be made to happen with little effort. New ideas need a process for organization-wide adoption.y Too much structure impedes idea creation and sharing. Systematic innovation therefore consists in the purposeful and organized search for changes. These four source areas are:  The unexpected-the unexpected success. as a means to increasing organizational effectiveness and future viability. The overwhelming majority of successful innovations exploit change. They are basically symptoms. those that "fit" with needs or trends will be adopted. Hearing all the voices is the first task. whether business or public-service institution. Organization plays the critical role of taking ideas from the fringe and bringing them mainstream. As ideas are presented and examined. or to modify it. organization needs to be applied. PURPOSEFUL INNOVATION AND THE SEVEN SOURCES FOR INNOVATIVE OPPORTUNITY Successful entrepreneurs. Still. The incongruity-between reality as it actually is and reality as it is assumed to be or as it "ought to be". And it is change that always provides the opportunity for the new and different. The first four sources lie within the enterprise.

and there is considerable overlap between them. both scientific and nonscientific. whether success or failure. however. The lines between these seven source areas of innovative opportunities are blurred. system. No area is. And then there are what I would call "conditions. There are also a few "don't's"-things that had better not be done. Each window shows some features that can also be seen from the window on either side of it. each on a different side of the same building. mood. glamour. Changes in perception. Conversely. typically." . PRINCIPLES OF INNOVATION The purposeful innovation resulting from analysis.  Innovation hosed on process need. But the view from the center of each is distinct and different. a set of three. for each has its own distinct characteristic. involves changes outside the enterprise or industry:    Demographics (population changes). and hard work is all that can be discussed and presented as the practice of innovation. and importance of science-based innovation. They can be likened to seven windows. Changes in industry structure or market structure that catch everyone unawares. And the innovations arising therefrom have. and meaning. The second set of sources for innovative opportunity. There ar a number of "do's"-things that have to be done. it is actually the least reliable and least predictable one. contrary to almost universal belief. The seven sources require separate analysis. new knowledge-and especially new scientific knowledge---is not the most reliable or most predictable source of successful innovations. For all the visibility. the shortest lead time between the start of a venture and its measurable results. They are listed in descending order of reliability and predictability. the mundane and unglamorous analysis of such symptoms of underlying changes as the unexpected success or the unexpected failure carry fairly low risk and uncertainty. inherently more important or more productive than the other. For. New knowledge.

The second imperative of innovation is therefore to go out to look. their values. whether in design or execution. it does not work.Effective innovations start small. to listen. 2. The do's 1. But this is all that need be presented since it surely covers at least 90 percent of all effective innovations. their needs are. They try to do one specific thing. all strategies aimed at exploiting an innovation. to be effective. They work out analytically what the innovation has to be to satisfy an opportunity. system.An innovation. And then they go out and look at the customers. the users. Innovate for the present. A l l effective innovations are simple. to ask. 3. that is.Don't diversify. It begins with thinking through what called the sources of innovative opportunities.The first is simply not to try to be clever. it confuses. Successful innovators use both the right side and left side of their brains. Finally. must achieve leadership within a given environment The don't's 1. has to be simple and it has to be focused. CONDITIONS .Innovation is both conceptual and perceptual. All entrepreneurial strategies.Purposeful. Innovations have to be handled by ordinary human beings. don't try to do too many things at once. don't try to innovate for the future. otherwise. 3.The purposeful innovation resulting from analysis. systematic innovation begins with the analysis of the opportunities. is almost bound to fail. Try to be focused! Innovations that stray from a core are likely to become diffuse. They look at figures. 4. Anything too clever. It should do only one thing. to see what their expectations. and hard work is all that can be discussed and presented as the practice of innovation. If it is not simple. 5. and they look at people. 2.

of farmers. Innovation therefore always has to be close to the market. puts to work what we (or I) are good at and have shown capacity for in performance?" c. there are three conditions. Innovation is work. For all his tremendous capacity. or at least judgment. Finally. All three are obvious but often go disregarded. and what action should we take? Has the time come to abandon them. Measuring innovative performance In the normal assessments of a business. 2. a change in the behavior of customers. entrepreneurial management entails judging the company's total innovative performance against the company's innovative objectives. or. of eye surgeons-of people in general. innovative performance is conspicuous by its absence. 1. But then they ask. of entrepreneurial and innovative performance into the controls of the business. are not doing what we expected them to do. To succeed. Or it is a change in a process-that is. indeed market-driven. The next step is to develop a systematic review of innovative efforts all together. Which ones should receive more sup-port at this stage and should be pushed? Which ones have opened up new opportunities? Which ones. Yet it is not particularly difficult to build measurement. of teachers. There are clearly people who are more talented innovators than the rest of us. on the contrary. against its performance and standing in the market and against its performance as a business all together. It often requires great ingenuity. fits this company. how people work and produce something. a. Also. innovators must build on their strengths. innovators rarely work in more than one area. "Which of these opportunities fits me. . livery few years an entrepreneurial management looks at all the innovative efforts of the business.Finally. on the other hand. Edison worked only in the electrical field. has the time come to redouble our efforts-but with what expectations and what deadline? 3. b. Successful innovators look at opportunities over a wide range. The first step builds into each innovative project feedback from results to expectations. It requires knowledge. This indicates the quality and reliability of both our innovative plans and our innovative efforts. And finally. innovation is an effect in economy and society. focused on the market.

5) The final structural requirement for entrepreneurship in the existing business is that a person or a component group should be held clearly accountable. by virtue of its current size. in the large business. we have failed. An innovation starts small but it should end big. 4) The returns on innovation will be quite different from those of the existing business and wi11 have to be measured differently. . and policies. personnel decisions. 2) This means also that there has to be a special locus for the new venture within the organization. has to be organized separately from the old and existing. Only by analyzing a company's own innovative experience. that the entrepreneurial. the new. innovative effort is best set up separately: to keep away from it the burdens it cannot yet carry. all reward the right entrepreneurial behavior and do not penalize it. the feed-back from its performance on its expectations. its compensation. Both the investment in a new product line and its returns should.Every five years. Even though the new project. It should result in a new major business rather than in just another "specialty" or a "respectable' addition to the product line. and it has to be pretty high up. not be included in the traditional return-on-investment analysis until the product line has been on the market for a number of years. and markets. This is particularly true. top management sits down with its associates in each major area and asks: 'What have you contributed to this company in the past five years that really made a difference? And what do you plan to contribute in the next five years?" Structures For the existing business to be capable of innovation. does not rank with existing products. can the company deter-mine what the appropriate expectations are for innovations in its industry and its markets. Whenever we have tried to make an existing unit the carrier of the entrepreneurial project. it has to create a structure that allows people to be entrepreneurial. of course. 1) This means. for instance. first. but it is true in medium-sized businesses as well. and even in small businesses. It has to make sure that its rewards and incentives. somebody in top management must have the specific assignment to work on tomorrow as an entrepreneur and innovator. 3) There is another reason why a new. perhaps. It has to devise relationships that center on entrepreneurship. revenues.

what we need is an entrepreneurial society in which innovation is normal. steady. This requires of executives in all institutions that they make innovation .a normal. our society. so innovation have to become an integral life sustaining activity in our organizations. everyday activity. and the integrating organ of our society of organizations. our economy. Just as management has become the specific organ of all contemporary institutions. ongoing. a practice in their own work and in that of their organization . and continuous.

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