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Technology Intelligence (TI) is an activity that enables companies to identify the technological opportunities and threats that could

affect the future growth and survival of their business. It aims to capture and disseminate the technological information needed for strategic planning and decision making. As technology life cycles shorten and business become more globalized having effective TI capabilities is becoming increasingly important. The Centre for Technology Management has defined 'technology intelligence' as "the capture and delivery of technological information as part of the process whereby an organisation develops an awareness of technological threats and opportunities. 1. Technology Intelligence is the ability to look at developments in technology and use them as enablers. You can map a new technology development to something you do in your organization. This may be a new product design, a new extension to an existing product, a service design, a new way of marketing, a better way to obtain sales leads, a simpler method of manufacturing etc. There are no bounds. 2. Technology Intelligence is needed for almost every organization. Organizations in certain industries may need it more than others. If you have it, you will certainly have some competitive advantage over others, who dont. 3. Each new development in technology creates at least one marketplace which may over time blossom into multiple markets and an entire industry. 4. When it appears, a new technology may not appear earth shattering. So people tend to ignore it. There will be a series of minor shifts, a few scattered applications and all of a sudden, there will be some company getting millions of customers. Dont look to journalists to cover it (unless they are some one like Jon Udell). 5. Some times a simple technology may go viral with great impact. Twitter is a good example. It started as an innocuous micro-blog. It was ignored by most in the beginning. 6. The real winners will be the ones who can find new applications for a technology and successfully implement it and educate others. Leveraging technology is a special skill. It can be acquired. 7. Detect trends early. These are also known as weak signals. First, start with an open mind. The smart ones have the ability to spot an early trend.

BUSINESS PROCESS REENGINEERING BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and

speed. Instead of starting with an activity flowchart, corporations are advised to start with a clean slate. They are then told to look into why they perform the tasks the way they do. A Process Engineer will look at the activities to be performed and how they can be engineered to invest minimum resources and get maximum returns. Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality. In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer. They typically adopt a new value system that places increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision making. Business process re-engineering is also known as business process redesign, business transformation, or business process change management To illustrate the point, let us consider the example of Apple iPod. Apple rethought the way music ought to be made available to the consumers. The changes it brought were:

Radical: While all other music labels were selling music via brick and mortar stores, Apple developed its iTunes software to sell music digitally. (Napster had made digital music available through a P2P platform earlier, but was sued by music labels for copyright violation)

Fundamental: Apple sold single tracks as opposed to whole albums being sold at brick and mortar shops.

Information Sharing: A BPR project is usually facilitated by a cross functional team. Most of the times, teams are spread across different geographic locations. Information needs to be successfully shared amongst various people to ensure the reengineering goes as planned and without hiccups. Technology as the Solution: The new processes that are developed as a result of BPR initiatives deploy the latest technology to achieve the desired end results. Usually it is e-Commerce, automation or another technology driven solution that is implemented. Business Process Re-engineering has become a very important buzzword in the BPM lexicon. Many corporations who were late in realizing the power and importance of BPM have to undergo re-engineering initiatives to ensure that they are still relevant to the marketplace. Re-engineering initiatives are however expensive and may require certain downtime. This is the reason they are resented by many corporations.

Methodology Business Process Reengineering is a dramatic change initiative that contains five major steps. Managers should:

Refocus company values on customer needs;

Redesign core processes, often using information technology to enable improvements;

Reorganize a business into cross-functional teams with end-to-end responsibility for a process;

Rethink basic organizational and people issues;

Improve business processes across the organization.

Common uses Companies use Business Process Reengineering to improve performance substantially on key processes that impact customers. Business Process Reengineering can:

Reduce costs and cycle time. Business Process Reengineering reduces costs and cycle times by eliminating unproductive activities and the employees who perform them. Reorganization by teams decreases the need for management layers, accelerates information flows, and eliminates the errors and rework caused by multiple handoffs;

Improve quality. Business Process Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership of processes. Workers gain responsibility for their output and can measure their performance based on prompt feedback.

Business process re-engineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. Some of the common benefits of BPR are: Increase Effectiveness. As all employees are aware of the processes to which they belong , they have a greater sense of responsibility. All processes are completely monitored under the strict control of the management. The net result of this is that employees deliver high quality products to their customers. Helps to improve efficiency. Proper management and control of all business processes reduces the time lag between different processes, which otherwise is quite high causing delays. This in turn reduces the time to market the product to the target customers and givesquicker response to buyers. Reduces cost. With the proper management of processes, improved efficiency and quick delivery of products to the buyers ,the overall product costs are reduced resulting in cost saving for the organization in the long run. Meaningful job for employees. As the time lag of product processing between different departments gets reduced due to the application of business process reengineering, there are more meaningful tasks to be performed by employees. This leads to increase their levels of motivation and the desire to perform well.

Improvement in organizational approach. According to the traditional approach of managing an organization there is no flexibility or adaptability to change. The management formulated strict rules for employees of the organization. Whereas now, when most organizations have implemented business process reengineering there is an increase in flexibility and adaptability for change. This has created better environment for people to work, thus leading to employee satisfaction. Growth of business Implementation of BPR results in the growth of the present business thus enabling the emergence of new businesses within the same organization. Although BPR is very effective in controlling cost and improving efficiency, its implementation is a hard nut to crack. Employees are very resistant to this kind of change thus, it is important to have extensive support from the top management. Limitations of BPR 1. Negatively influence customer reaction and customer service. 2. May not suited for all industry for a radical redesign 3. May negatively influence core competence of the business 4. May ignore the staffs reactions and emotions 5. May high costly. 6. May lead to lack of focusing the customer needs INNOVATION MANAGEMNT Innovation management is the discipline of managing processes in innovation. It can be used to develop both product and organizational innovation. Without proper processes, it is not possible for R&D to be efficient; innovation management includes a set of tools that allow managers and engineers to cooperate with a common understanding of goals and processes. The focus of innovation management is to allow the organization to respond to an external or internal opportunity, and use its creative efforts to introduce new ideas, processes or products.[1] Importantly, innovation management is not relegated to R&D; it involves workers at every level in contributing creatively to a company's development, manufacturing, and marketing. By utilizing appropriate innovation management tools, management can trigger and deploy the creative juices of the whole work force towards the continuous development of a company. [2]

The process can be viewed as an evolutionary integration of organization, technology and market by iterating series of activities: search, select, implement and capture.[3]

The 8 Phases of an Innovation Management Process

Setting the goals for the process: Innovation always begins with a goal in mind. It is many times based on finding the solution to a problem. Once you have this goal, it should be discussed among everyone in the problem solving team. This team may consist of you and another person, a group of people, or may even be all of your organizations employees. It may involve others such as your customers (who can provide suggestions and feedback based on their own experience with your product or service) or other stakeholders in the business. When you establish the team for this process, make sure that you have someone representing all the parts of the process from start to the end. Cooperation: The innovation team should work together so that instead of trying to come up with an idea separately, they can bounce ideas off one another and create a collaborative solution. This can include the use of online tools, attendance of events such as trade shows that can be inspiring and informative, or simply consist of brainstorming sessions. You might consider having a trained business coach facilitating the discussions. There are many online tools available for real-time document sharing that might help teams that are geographically separated to still have intense cooperation. Combination of ideas: Once the ideas are in, choose the best ones and then consider whether they can be combined to create an even greater idea. Often, strong ideas will be complementary to one another and will join well to create an even better result. As you know, the whole result can be bigger than its individual parts. And for this combination to work well, you need representatives of all parties involved in the process, because they for sure have ideas that people from other departments could not come up with. Business coaches may be useful here for making sure that all the angles of innovative aspect are covered. Evaluation of innovation: This is an important and yet all too frequently overlooked aspect of the innovation management process. When the best ideas have been combined, fine-tuned, and polished, it is time to subject them to evaluation based on peer reviews. This helps to ensure that any ideas that have a promising veneer but that are poorly thought out will be identified before resources, funding and time have been poured into them. It also helps to select the ideas with the greatest potential from among

several that appear equally capable of being successful. It is cheap to change your innovation at this stage compared to later stages. Each step you take forward will cost you more Testing the ideas: Once the ideas with the greatest potential have been identified, they can be tested so that they can be better developed. One of the most common means of testing a product or service idea is to create a prototype or test group. This allows the team, as well as customers and investors to have a better look at how the product will function and what changes can be made to it so that it will be even further improved. Make sure that the product or service not only raises interest but is able to generate orders also. If people say that they are interested in it, then ask them if they give you the order right away. Execution of innovation implementation: The ideas that survive the testing process can be further developed and altered until they are ready to be executed as a part of the business offerings. The execution of implementation is a step that is unique to your business and, unless your new product causes you to have to drastically alter the typical way that your go-to-market strategy functions, then this part of the innovation management process should be relatively commonplace in your organization. It should be easier for you to move from testing to execution if you were able to generate orders already in testing phase. Assessment of innovation life-cycle: After the execution of an idea, its implementation needs to be carefully monitored and assessed in terms of a number of milestones that should be set. Should a milestone not be reached, then changes will need to be made or the idea will need to be shut down. Remember to keep always customer in your mind also in execution phase and design your measuring systems so that they measure added value for the customer (you get what you measure and customers weight you based on that!). Tools for managing innovation Brainstorming is a group or individual creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its member(s). The term was popularized by Alex Faickney Osborn in the 1953 book Applied Imagination. Osborn claimed that brainstorming was more effective than individuals working alone in generating ideas, although more recent research has questioned this conclusion.[1] Today, the term is used as a catch all for all group ideation sessions. Digital Prototyping gives conceptual design, engineering, manufacturing, and sales and marketing departments the ability to virtually explore a complete product before its built. Industrial designers,

manufacturers, and engineers use Digital Prototyping to design, iterate, optimize, validate, and visualize their products digitally throughout the product development process. Innovative digital prototypes can be created via CAutoD through intelligent and near-optimal iterations, meeting multiple design objectives (such as maximised output, energy efficiency, highest speed and cost-effectiveness), identifying multiple figures of merit, and reducing development gearing and time-to-market. Marketers also use Digital Prototyping to create photorealistic renderings and animations of products prior to manufacturing. Companies often adopt Digital Prototyping with the goal of improving communication between product development stakeholders, getting products to market faster, and facilitating product innovation. product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal.[1] PLM integrates people, data, processes and business systems and provides a product information backbone for companies and their extended enterprise. PLM systems help organizations in coping with the increasing complexity and engineering challenges of developing new products for the global competitive markets. Product lifecycle management (PLM) should be distinguished from 'product life cycle management (marketing)' (PLCM). PLM describes the engineering aspect of a product, from managing descriptions and properties of a product through its development and useful life; whereas, PLCM refers to the commercial management of life of a product in the business market with respect to costs and sales measures. Project management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually timeconstrained, and often constrained by funding or deliverables),[1] undertaken to meet unique goals and objectives,[2] typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations),[3] which are repetitive, permanent, or semipermanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies. The primary challenge of project management is to achieve all of the project goals[4] and objectives while honoring the preconceived constraints.[5] The primary constraints are scope, time, quality and budget.[6] The secondary and more ambitious challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives.

Types of Innovation Strategy Proactive - Companies with proactive innovation strategies tend to have strong research orientation; they will often have first mover advantage and be a technology market leader. These companies access

knowledge from a broad range of sources and take big bets/high risks. Companies like Dupont, Apple and Singapore Airlines have proactive innovation strategies. The types of technological innovation used in a proactive innovation strategy are radical and incremental. Radical innovations (as described in Why Innovate) are breakthroughs that change the nature of products and services. Incremental innovation is the constant technological or process changes that lead to improved performance of products and services. Active - An active innovation strategy involves defending existing technologies and markets but with the preparedness to respond quickly once markets and technologies are proven. These companies have mainly incremental innovation with in-house applied R & D. Companies with active innovation strategies also have broad sources of knowledge and have medium to low risk exposure. They tend to hedge their bets and include companies such as Microsoft, Dell and British Airways. Reactive - The reactive innovation strategy is used by companies that are followers and have a focus on operations, have a wait and see approach and look for low risk opportunities. They will copy proven innovation. Companies with reactive innovation strategies use entirely incremental innovators and include budget airlines such as Ryanair which has successfully copied the no frills service model of Southwest Airlines. Passive - Companies with passive innovation strategies wait until their customers demand a change in their products or services. Many of the companies that supply to automotive companies have passive innovation strategies as they wait for the automotive companies to demand changes to specification before implementing these changes. 5 Key Points to Consider when Developing an Innovation Strategy First, an innovation strategy needs to be truly inspiring and should describe a desirable future state for the company.: Opportunities and possibilities formulated in an innovation strategy should actually provide input and shape the overall corporate strategy.This is a high bar as it rules out a single-minded focus on incremental add-ons to the business. Rather, it requires the organization to aim higher. You have probably often read in literature that the innovation strategy should be derived from the corporate strategy to clearly define how the organization sees opportunities for growth and makes explicit choices about the role of innovation, which is absolutely not wrong. Still, we think that to some extent it should be the other way around. Opportunities and possibilities formulated in an innovation strategy should actually provide input and shape the overall corporate strategy. Invention is done everywhere. In fact, the value that is

derived for many large companies by scouting inventions, connecting the dots between many singular ideas and inventions into one big platform innovation and fully scaling it to maximize potential benefits. Second, the innovation strategy needs to be ambitious in terms of providing the basis to break away from the competition, beat the competition, and create new spaces. Too many innovation strategies that we have seen tend to be me too (and mostly incremental). Even if executed according to plan, they fail to deliver the truly sustainable competitive advantages that can only be derived by performing above the overall market growth level and exceeding average profit margins. Again, the innovation strategy should aim higher and help the company outpace anybody else in a contested space. If the so-called strategy does not seek to push those boundaries, the strategy in all practicality is probably just a product roadmap of business extensions, not an innovation strategy. Third, the process of developing the strategy needs to be open. Open means bringing the outside in and working under the assumption that the other seven billion people on our planet may have insights that do not exist within a particular companys boundaries. Even today this is something that many people find hard to accept. One client once joked: We actually invented the not-invented-here-syndrome in our company. Companies are settled into the way they innovate. Fourth, an innovation strategy must also be specific to the time in which it is developed, as it is grounded in the reality of a companys environment, and it reflects the available capabilities, technologies and gaps that may need to be filled. What do we mean by this? It is important to describe with great precision which specific innovation initiatives should be pursued, and where to invest and compete. The innovation strategy also needs to explore possible market developments and scenarios while defining the most attractive market opportunities. The innovation strategy also needs to explore possible market developments and scenarios while defining the most attractive market opportunities. Finally, an innovation strategy needs to be adaptive and to evolve over time, i.e. incorporate learning, allow adjustments to the desired course and maybe even allow an organization to cut its losses if required. This typically does not fit with the classic annual corporate planning cycle. An innovation strategy and the respective execution should be capable of adapting the moment there are new insights, even if that requires moving in multiple directions to raise the aspiration you had at the beginning. After all, Rome was not built in a day. Likewise, innovation sometimes requires more time than originally estimated.

Process innovation is defined as A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software. The implementation of a new or significantly improved production method involves the development of a new way to produce a product using a newly developed machine, a new method such as the Pilkington Floating Glass method or the blast furnace, or the use of new software like 3D modelling software as part of the process or for developing new products. The delivery methods are associated with the physical movement of the product from the factory floor to the end user, i.e. the logistics of the company. This includes any system that is implemented in improving the delivery of the product to the customer such as computer systems, tracking systems and any associated equipment. Examples of process innovation There are many examples of process innovation since industry started to develop and the purchase and use of products became a way of life. Examples of process innovations include Fords first use of the production line by bringing product to the person during fabrication. The lithography method used to fabricate microchips was a process innovation that has touched the lives of most people on the planet. The Pilkington glass method is yet another process innovation as are the methods used to manufacture small disk drives currently used in some of the popular MP3 players. Process innovations involving the logistics include the factory to customer delivery of custom-built computers by Dell Corporation; the use of barcodes, scanners and the Internet that allows customers to track parcels in real time as couriers are transporting them; and the innovation process used by organisations to arrive at the best ideas for commercialisation. Innovation is the successful exploitation of new ideas to increase customer value or create wealth for a company. Innovation is therefore outcome-oriented, with the outcomes being aligned with a companys overall strategy. However, within this broad definition, it is possible to define three levels of innovation based on the degree of newness and the degree of value add. The diagram below describes the relative relationships between incremental, substantial and radical innovation with some indicative examples taken from the automotive industry

Innovation Strategies An innovation strategy helps firms decide in a, cumulative and sustainable manner, about the type of innovation that best match corporate objectives . An innovation strategy guides decisions on how resources are to be used to meet a firms objectives for innovation and thereby deliver value and build competitive advantage. Innovation is an essential component of business activity. This requirement can be generated from an offensive need to create competitive advantage and enter new markets. Or, from a defensive perspective, its all about protecting market share and ensuring long-term competitiveness in relation to industry players. Merle C Crawfords (1980) described four innovation strategies , 1. Inventive: be the first one to market 2. Adaptive: be the second one but be the best 3. Economic: be the low cost producer 4. Innovative Applications: be the creative user of existing technologies Each innovation strategy requires innovation, that may be in different areas. Thus, business strategy will determine the requirement and appetite for innovation development activities and drive an effective portfolio of the three levels of innovation. Three generic innovation strategies can be defined as: Pioneer: Focused on bring new and industry leading or transforming technologies to market. Fast Follower: Adept at improving existing technologies through incremental innovation in both product and process technologies. Often focused on cost-downs. Opportunistic: Makes some investment in substantial innovation but also sources innovation from third parties and invests in adapting these for its identified market opportunities.

Companies such as Sony, 3M, Toyota are widely recognised as Pioneers while the Korean car companies and Chinese computer manufacturers can be regarded as Fast Followers. A good recent example of an Opportunistic innovation strategy is the incorporation of digital camera and MP3 technology into mobile phones. Innovation strategy is vital for developing & operating the innovation process. Thus, a company should develop an innovation strategy appropriate to the industry life-cycle, the competitive environment and its resources. For companies with a portfolio of businesses in different industry sectors, each of these businesses is likely to have different innovation needs and tailored strategies will be required. In addition, each main technology area employed by a business should be assessed separately. Having done this, an appropriate mix of innovation related activities can be developed based on realising the strategy(s) Sources of innovation: There are several sources of innovation. In the linear model the traditionally recognized source is manufacturer innovation. This is where an agent (person or business) innovates in order to sell the innovation. Another source of innovation, only now becoming widely recognized, is enduser innovation. This is where an agent (person or company) develops an innovation for their own (personal or in-house) use because existing products do not meet their needs. Eric von Hippel has identified end-user innovation as, by far, the most important and critical in his classic book on the subject, Sources of Innovation. Innovation by businesses is achieved in many ways, with much attention now given to formal research and development for "breakthrough innovations." But innovations may be developed by less formal on-the-job modifications of practice, through exchange and combination of professional experience and by many other routes. The more radical and revolutionary innovations tend to emerge from R&D, while more incremental innovations may emerge from practice but there are many exceptions to each of these trends. Regarding user innovation, rarely user innovators may become entrepreneurs, selling their product, or more often they may choose to trade their innovation in exchange for other innovations. Nowadays, they may also choose to freely reveal their innovations, using methods like open source. In such networks of innovation the creativity of the users or communities of users can further develop technologies and their use. Whether innovation is mainly supply-pushed (based on new technological possibilities) or demand-led (based on social needs and market requirements) has been a hotly debated topic. Similarly, what exactly drives innovation in organizations and economies remains an open question. More recent theoretical work moves beyond this simple dualistic problem, and through empirical work shows that innovation does not just happen within the industrial supply-side, or as a result of the articulation of user demand, but through a complex set of processes that links many different players together not only developers and users, but a wide variety of intermediary organisations such as consultancies, standards bodies etc. Work on social networks suggests that much of the most successful

innovation occurs at the boundaries of organisations and industries where the problems and needs of users, and the potential of technologies can be linked together in a creative process that challenges both Failure of innovation Poor Leadership Poor Organisation Poor Communication Poor Empowerment Poor Knowledge Management Poor goal definition Poor alignment of actions to goals Poor participation in teams Poor monitoring of results Poor communication and access to information

Innovation Models Table 1: Progress in conceptualizing innovation: Rothwells five generations of innovation models Generation : Key features First and second : The linear models need pull and technology push Third : Interaction between different elements and feedback loops between them the coupling model Fourth : The parallel lines model, integration within the firm, upstream with key suppliers and

downstream with demanding and active customers, emphasis on linkages and alliances Fifth: Systems integration and extensive networking, flexible and innovation One of the first (theoretical) frameworks developed for historically understanding science and technology and its relation to the economy has been the linear model of innovation. The Linear Model of customized response, continuous

Innovation is an early model of innovation that suggests technical change happens in a linear fashion from Invention to Innovation to Diffusion. The model postulates that innovation starts with basic research, then adds applied research and development, and ends with production and diffusion: Basic research Applied research Development (Production and) Diffusion The Stage-Gate model describes how a firm should structure its product development process using a sophisticated system of project phases and milestones. The model is based on 60 case studies on efficient product innovation processes. The product development process is seen as one of the key factors that determine the success of new products. Also known as Traditional Phase Gate Model, under this model, product or services concept is frozen at early stage so as to minimize risk. Also innovation process in enterprise involves series of sequential phases/steps arranged in such a manner that the preceding phase must be cleared before moving to next phase. Thus a project must pass through a gate with the permission of gatekeeper before moving to the next succeeding phase.

Concurrent Engineering is a systematic approach to the integrated, concurrent design of products and their related processes, including, manufacturing and support. This approach is intended to cause the developers from the very outset to consider all elements of the product life cycle, from conception to disposal, including cost, schedule, quality and user requirements. Concurrent engineering is a work methodology based on the parallelization of tasks (i.e. performing tasks concurrently). It refers to an approach used in product development in which functions of design engineering, manufacturing engineering and other functions are integrated to reduce the elapsed time required to bring a new product to the market. The basic premise for concurrent engineering revolves around two concepts. The first is the idea that all elements of a products life-cycle, from functionality, producibility, assembly, testability, maintenance issues, environmental impact and finally disposal and recycling, should be taken into careful consideration in the early design phases.[ The second concept is that the preceding design activities should all be occurring at the same time, or concurrently. The overall goal being that the concurrent nature of these processes significantly increases productivity and product quality, aspects that are obviously important in today's fast-paced market. This philosophy is key to the success of concurrent engineering because it allows for errors and redesigns to be discovered early in the design process when the project is still in a more abstract and possibly digital

realm. By locating and fixing these issues early, the design team can avoid what often become costly errors as the project moves to more complicated computational models and eventually into the physical realm.[4] Concurrent engineering elements 1. Cross-functional teams Include members from various disciplines involved in the process, including manufacturing, hardware and software design, marketing, and so forth 2. Concurrent product realization Process activities are at the heart of concurrent engineering. Doing several things at once, such as designing various subsystems simultaneously, is critical to reducing design time. 3. Incremental information sharing It helps minimize the chance that concurrent product realization will lead to surprises. As soon as new information becomes available, it is shared and integrated into the design. Cross functional teams are important to the effective sharing of information in a timely fashion.=== 4. Integrated project management It ensures that someone is responsible for the entire project, and that responsibility is not abdicated once one aspect of the work is done. Potential Advantage of Using Concurrent Engineering

Faster time to market which results in increased market share. Lower manufacturing and production costs. Improved quality of resulting end products. Increased positioning in a highly competitive world market. Increased accuracy in predicting and meeting project plans, schedules, timelines, and budgets. Increased efficiency and performance. Higher reliability in the product development process. Reduced defect rates. Increased effectiveness in transferring technology. Increased customer satisfaction.

Ability to execute high level and complex projects while minimizing the difficulties. Shorter design and development process with accelerated project execution. Higher return on investments.

Types of Innovation There are three main types of innovation (process, product/service, and strategy), each of which can vary in the degree of newness (incremental to radical) and impact (sustaining versus discontinuous). 1. Process Innovation Process innovation became an important topic with the rise of the quality and continuous improvement movements and, then again, with the more recent attention directed at change management, organizational learning and knowledge management. Corporations today, at least in the

developed world, are reaching the limits of incremental process improvement. Some have argued that what is needed today is radical process innovation. Hammer and Champy (1994) introduced the concept of radical reengineering based on their assertion that for companies to achieve maximum efficiency and effectiveness requires radical process reengineering of the organization and its processes. Because processes lag far behind what is possible given technological advancement, it is not possible to achieve the necessary transformation through incrementalism. 2. Product/Service Innovation Incremental product/service innovation is oriented toward improving the features and functionality of existing products and services. Radical product/service innovation is oriented toward creating wholly new products and/or services.Product life cycles, in particular, have become shorter and shorter, causing business survival to depend on new product development and, increasingly, on the speed of innovation in order to develop and bring new products to market faster than the competition (Jonash and Sommerlatte 1999). Organizations must direct greater attention to new product development, while maintaining and improving their existing products. Discontinuous products and services are increasingly likely with ever-faster new product/service development. Organizations must be constantly on the lookout for discontinuous new products and/or services. a product innovation (e.g. new goods or services put on sale); a process innovation, which changes the way a given good is produced within the firm or across a supply chain; Economics of Innovation/ Economic conceptions of innovation Innovation economics or economics of innovation is a growing economic doctrine that reformulates conventional economics theory so that knowledge, technology, entrepreneurship, and innovation are positioned at the center of the model rather than seen as independent forces that are largely unaffected by policy. Innovation economics is based on two fundamental tenets: that the central goal of economic policy

should be to spur higher productivity through greater innovation, and that markets relying on input resources and price signals alone will not always be as effective in spurring higher productivity, and thereby economic growth. Joseph Schumpeter defined economic innovation in The Theory of Economic Development, 1934, Harvard University Press, Boston. The introduction of a new good that is one with which consumers are not yet familiar or of a new quality of a good. Main Goals of Innovation Management Effective innovation management requires the implementation of a number of processes and the employ of a number of tools. At the outset it is important that the culture of the organization empowers employees and encourages them to submit their ideas. Most importantly management should adopt the appropriate innovation strategy to lead the innovation process and manage the innovation portfolio. The following summarizes the various objectives that management should aim for under the innovation management stage . Effect a shift in the way the organization sees itself where innovation is recognized as the way of doing business 2. Deciding upon the innovation strategy that best fits the organizations situation, and enable it attain its vision. 3. Creating a portfolio of innovation projects to translate competitive strategies and to manage risk across the whole organization. 4. Define a criteria for the selection and prioritization of projects within the portfolio to weed out less probable projects as soon as possible 5. Effect the necessary structural changes to arrange skills throughout the organization in competence centers, to enable the formation of the right team for the purposes of the innovation project. 6. Arrange current and potential future alliances in a portfolio that can be tapped when needed, and define when and how such alliances are to be made (governing conditions). 7. Foster an organizational culture that promotes innovation by allowing employees time to innovate and the implementation of their own ideas for improving job performance. 8. Develop and implement methods that enable tapping into the organizations intellectual capital

Technology diffusion involves the dissemination of technical information and know-how and the subsequent adoption of new technologies and techniques by users.[1] In this context, technology includes "hard" technologies (such as computer-controlled machine tools) and "soft" technologies (for example, improved manufacturing, quality, or training methods). Diffused technologies can be embodied in products and processes. Although classic models of technological development suggest a straightforward linear path from basic research and development to technology commercialization and adoption, in practice technology diffusion is more often a complex and iterative process.[2] Technology can diffuse in multiple ways and with significant variations, depending on the particular technology, across time, over space, and between different industries and enterprise types. Moreover, the effective use of diffused technologies by firms frequently requires organizational, workforce, and follow-on technical changes. Technology diffusion can be contrasted with technological innovation, which emphasizes the development of new knowledge, products, or processes, and government-oriented technology transfer, which frequently seeks to shift advanced technology out of laboratories into commercial use.[3] In many cases, diffused technologies are neither new nor necessarily advanced (although they are often new to the user), and they may be acquired from a variety of sources, including private vendors, customers, consultants, and peer firms, as well as public technology centers, government laboratories, and universities. Technology also diffuses through the internal "catch-up" efforts of firms, the transfer and mobility of skilled labor, the activities of professional societies and the trade and scientific press, varied forms of informal knowledge trading [4], and such practices as reverse engineering. While there are different classifications schemes, the technology diffusion measures which form the subject matter of these definitional efforts broadly include the following:

Awareness-building and technology demonstration. These measures seek to make potential users more knowledgeable about available technologies, their possible applications, and their benefits and costs. Demonstration services are offered by the Center for Manufacturing Information Technology, a program sponsored by the Georgia Institute of Technology and Georgia Power (USA), where computers, manufacturing control systems, and software are available for potential users to see and try. [10] Similarly, Japan's prefectural and municipal technology centers (Kohsetsushi) demonstrate new technologies to firms, often extending to hands-on training and pilot production. A method of awareness-building attracting increasing interest is benchmarking. In the United States, the Industrial Technology Institute (Michigan) offers a Performance Benchmarking Service which allows companies to compare their use of technology with that of comparable and best practice firms.[11] The TOPS programs now found in the United Kingdom, Germany, and Spain identify "good practice" firms and structure opportunities for other companies to visit these models and learn how they

operate. Media and new communications technologies can assist in awareness-building. For example, the National Technological University and other organizations offer remote users throughout the United States video and satellite broadcasts on new technology and manufacturing topics. The European Union Community Research and Development Information Service (CORDIS) provides electronically accessible information about technology development program opportunities to service providers as well as potential users. [12]

Information search and referral services. These efforts aim to reduce the information search costs associated with technology diffusion. Information services often add further value by qualifying information requests and matching user needs with appropriate resources. Examples of programs in this category include the Pennsylvania Technical Assistance Program (USA), operated by the Pennsylvania State University, with partial funding from the Pennsylvania Department of Commerce, to businesses access technical information;[13] and Denmark's Technological Information Centers, which are established in all counties of the country and offer information and other technical services to firms. For-profit companies, such as TelTech, Inc., of Minnesota, also offer specialized technology information services, in this case (for a subscription fee) matching corporate technology needs with appropriate sources of expertise. In several countries, new initiatives are underway to use the internet as a medium to service technical information needs.

Technical assistance and consultancy. This encompasses a wide band of measures which support experts to assess business problems, identify opportunities to upgrade technologies and industrial practices, and assist in implementation. These measures seek to address limitations of expertise among both users and suppliers of technology and to stimulate and assist firms to take action (or, in some cases, not to act on an undesirable investment). Technical assistance services are located in many applied technology centers, for example, in the Valencia Institute of Small and Medium Enterprise (Spain), a network of trained staff offers technological advice, conducts assessments, and offers recommendations to firms in local industries. [14] In some cases, private consultants are engaged, through cost-sharing schemes, to assist particular firms - a number of U.S. Manufacturing Extension Partnership centers employ this approach, including centers in Oklahoma, Kansas, and Ohio.

Training. The effective deployment of technology and improved operational techniques invariably involves changes in human capital requirements. A very common technology diffusion measure is thus training, conducted in many different forms, including on-the job training, classroom training, management seminars, team-building workshops, and distance learning. These measures address the tendency of technology users to under-invest in human capital development, which often not only hinders the initial decision to deploy a technology but can also lead to subsequent inefficiencies once

in use. Additionally, special measures to promote training for technology diffusion may also address deficiencies among existing institutions and vendors (who may be unable to effectively mount courses in new technologies without additional support). For example, training programs focused on industry needs in specific technological areas are offered by Australia's more than 60 Cooperative Research Centers. In the U.K., local Training and Enterprise Councils (known as Local Enterprise Councils in Scotland) aim to identify industry training needs, including those in areas of new technology, and support appropriate training initiatives, drawing on public and private resources.

Collaborative research and technology projects. To address the gaps between technology development and deployment, a range of collaborative public-private research mechanisms have been established. These measures also seek to shorten the time taken to commercialize new technological innovations and, through industry involvement, focus research on key needs and opportunities. Often, collaborative research efforts are embodied in the numerous applied technology centers now found throughout the OECD (and other) economies. In Baden-Wurttemburg, Germany, the quasi-public Steinbeis Foundation sponsors a system of about 130 technology transfer centers, often associated with polytechnic institutes, each of which conducts collaborative industry-focused research. Japan's prefectural public technology institutes and new third-sector projects conduct applied research and technology projects with individual firms and groups of firms. [15]

Personnel exchange and the support of R&D personnel. Potential users of technology, especially if small or mid-sized enterprises, may lack the internal expertise to absorb new technologies or they may lack resources to apply their existing personnel to new research and technology projects. Measures have been developed to support the secondment of personnel to technical centers or other firms where new technologies are developed or in use. In Japan, local public technology centers accept staff from smaller firms for periods of time to receive training in new technologies and participate in cooperative research. Increasingly, international exchanges are encouraged: in the United States, the National Science Foundation and the U.S. Department of Commerce sponsor schemes to place engineers in Japanese companies and research institutions. In Germany, ministries have sponsored programs to subside research personnel in small and mid-size firms to help them absorb and develop new technologies.

Standardization. Uncertainty about the compatibility of a technology can present barriers to diffusion investments by users. The diffusion of technology can be accelerated by common agreement between technology developers and users about standards and technological compatibility. The area of electronic commerce is currently one of those areas where efforts to forge standards is underway. In the United States, the National Information Initiative, although federally-sponsored, has promoted an industry-driven process of standards development. In a different context, the development of

standard measures to document quality, through IS0 9000 and subsequent reference marks, has also facilitated the diffusion of quality measurement techniques and the avoidance of duplicative marks.

Financial support. These measures are indented to reduce financial constraints among users associated with the initial or ongoing costs of adopting new technologies. Measures can include direct financial support or subsidies to enterprises, through grants, loans, or interest write-downs. Other mechanisms are loan guaranties (often associated with third-party lending institutions), equity or near-equity investments, and various kinds of royalty agreements. In many cases, public financial policies to promote technology diffusion operate through intermediary institutions, including banks and quasi-governmental corporations. Requirements may be set as to the user's own cost-share or match. Examples of policies range from the preliminary cost-sharing of private consultant assistance sponsored by the Minnesota Manufacturing Technology Center (USA) to grants through Italy's Act 696 to assist small companies in purchasing high technology equipment. The diffusion of product and process technology through the promotion of new start-up and existing small technology-based firms often involves a financial element. The Small Business Innovation Research program in the United States allocates a share of federal R&D budgets to support the development of technology-based small firms. In Britain, the Support for Products Under Research and the Small Firms Merit Award for Research and Technology programs also support technology development in smaller firms.

Procurement. Purchasing and specification policies by public institutions and large private firms can have a role in promoting (or constraining) the diffusion of technologies. In the United States, defense procurement policies have favored small technology firms (through small business offsets) and the diffusion of new process technologies. In some cases, the public support of large firm investments is associated with conditions for local procurement, which then may require supplier upgrading programs. A variation - the joint-production or offset agreements typically found in military, aerospace, or large transportation projects. Procurement policies may generate concerns related to free trade.

Inter-firm cooperation. A series of new programs have sponsored different forms of inter-firm collaboration to promote technology diffusion. The efforts seek to resolve common problems and share information and learning, achieve scale economies in service provision and technology deployment, and strengthen ongoing business and technology development relationships. Collaborative efforts may be "horizontal" (for example, groups of small firms), "vertical" (suppliers and customers), "sectoral" (firms in the same industry) or "lateral" (firms in different industries but with shared interests in a technology). In Finland, applied technology and implementation programs have sponsored the formation of more than 200 collaborative groups, involving both large and small firms. In Germany, the Aachen Gesellschaft fur Innovation und Technologietransfer helps groups of

five or more companies identify common problems or needs and develop collaborative R&D projects. Japan has launched a technology fusion program where groups of about 30 small companies work with local brokers and technology centers to commercial new product technologies. The New England Supplier Institute (Boston, USA) brings together small and large firms within specific industries to address share problems and pursue best practice manufacturing and quality initiatives. SPRINT and other more recent European Union projects have supported cross-country (EU) interfirm collaboration.

Facilities for technology transfer. A large number of applied technology centers and other facilities to promote technology transfer have been established. These centers often extend the capabilities of existing research facilities, for example when associated with universities, or they may be industrydriven initiatives. Centers give a visible physical presence to technology diffusion policies and house many of the activities already described, such as information provision, technology demonstration, and access to new equipment, computers, and software. Many countries have invested in physical infrastructure efforts to establish technology incubators and technology parks. These aim to improve links between technology developers and users through physical proximity, allowing shared access to facilities and equipment, expertise, and skilled employees. The Advanced Technology Development Center at Georgia Institute of Technology encourages faculty to spin-off technologies through new start-up companies and provides space and services to new firms located adjacent to the campus. Numerous new technology incubator facilities have been sponsored in Japan, including the Kanagwa Science Park, a complex which accommodates and assists new start-up technology firms. Local governments in Japan have also established new buildings for information exchange and diffusion for area small firms, comprising of meeting, training, and exhibition facilities.

Regional or sectoral cluster measures. In addition to building physical facilities, governments have recognized the need to strengthen organizational capabilities and linkages within particular regions and industrial sectors. Levels of communication and dialogue between technology developers and users and among users, institutional credibility and leadership, and other aspects of "social capital" have been shown to be extremely important in the diffusion of technology. [16] Regional or sector cluster measures can involve strengthening industrial associations, promoting forums of stakeholders, building collaborative technology consortia, labor-management collaboration, developing leadership strategies and shared visions, and strengthening links between users, service providers, and complementary public and private assets (such as banks or training institutions). For example, in Germany, a Baden-Wurttemburg Future Commission has promoted a "dialogue-oriented" approach to policy, involving all the main actors in the process of industrial and technological change.

Macro-policy measures. The overall economic and social environment has important impacts on technology diffusion. This includes factors such as business cycle stability, the cost of capital, intellectual property protection, environmental regulation, labor market policy, and tax policy. A typical technology promotion measure is the offering of tax incentives or favorable depreciation schedules to enterprises that invest in new technology, new facilities, or in research and development. Measures to ease regulatory burdens are also common, although in some cases tighter regulation (for example, in the environmental sphere) can promote introduction of new environmental technologies.

SEVEN STEPS TO PROBLEM SOLVING: 1. Define and Identify the Problem

This first step is critical. It is essential for each group member to clearly understand the problem so that all energy will be focused in the same direction. A good way to define the problem is to write down a concise statement which summarizes the problem, and then write down where you want to be after the problem has been resolved. The objective is to get as much information about the problem as possible. It may be helpful to divide the symptoms of the problem into hard and soft data. Hard Data

Includes: Facts, statistics, goals, time factors, history. Soft Data Includes: Feelings, opinions, human factors, attitudes, frustrations, personality conflicts, behaviors, hearsay, intuition These steps may not always be pleasant, but after "venting" group participants may feel that the air has finally cleared and members can be more rational and cooperative. Sometimes information needs to be gathered via various devices to define the problem. These devices may include: Interviews, statistics, questionnaires, technical experiments, check sheets, brainstorming and focus groups. 2. Develop a Problem Statement It is essential to develop an objective statement which clearly describes the current condition your group wishes to change. Make sure the problem is limited in scope so that it is small enough to realistically tackle and solve. Writing the statement will ensure that everyone can understand exactly what the problem is. It is important to avoid including any "implied cause" or "implied solution" in the problem statement. Remember, a problem well stated is a problem half solved.

3. State the Goal : Once the problem is defined, it is relatively easy to decide what the goal will be. Stating the goal provides a focus and direction for the group. A measurable goal will allow the tracking of progress as the problem is solved. 4.Considerations : When defining the problem, ask the following:

Is the problem stated objectively using only the facts?

Is the scope of the problem limited enough for the group to handle? Will all who read it understand the same meaning of the problem? Does the statement include "implied causes" or "implied solutions?" Has the "desired state" been described in measurable terms? Do you have a target date identified

5. Analyze the Problem: In this stage of problem solving, questions should be asked and information gathered and sifted. Do not make the mistake of assuming you know what is causing the problem without an effort to fully investigate the problem you have defined. Try to view the problem from a variety of viewpoints, not just how it affects you. Think about how the issue affects others. It is essential to spend some time researching the problem. Go to the library or develop a survey to gather the necessary information. 3. IDENTIFYING POSSIBLE SOLUTIONS: Identifying possible solutions to the problem is sometimes referred to as finding "Optional Solutions" because the goal is to complete a list of all conceivable alternatives to the problem. Using a variety of creative techniques, group participants create an extensive list of possible solutions. Asking each group member for input ensures that all viewpoints will be considered. When the group agrees that every course of action on the list will be considered, they will feel some direct ownership in the decision making process. This may help put the group in the mood of generating consensus later in the decision making process. You may already be familiar with some of these topics, but take the time to look through them anyway. The information you will find is valuable to your group's success. Techniques Used in Solving Problems: These idea generation techniques are broken down into easy-tofollow steps that will help keep your group organized and on the topic at hand. We are basically giving you step-by-step instructions on how to accomplish each technique with ease and success. Brainstorming : Brainstorming is a problem solving approach designed to help a group generate several creative solutions to a problem. It was first developed by Alex Osborn, an advertising executive who felt the need for a problem solving technique that, instead of evaluating and criticizing ideas, would focus on developing imaginative and innovative solutions. Delphi Methods Characteristics

Not a group decision technique.

Involves presenting a problem or an issue to the appropriate individuals, asking them to list their solutions, compiling a master list, circulating this master list to all participants, and asks them to comment in writing on each item on the list. The list with comments is then circulate to the participants. The procedure is continued until a decision is reached.

Good for when time and distance constraints make it difficult for group members to meet.

Fantasy Chaining Characteristics

Manifest theme is what the fantasy chain is about at the surface level. Latent theme is the underlying theme (what the group members are really thinking about). Helps the group define itself by creating symbols that are meaningful and that help determine its values.

Enables a group to discuss indirectly matters that might be too painful or difficult to bring out into the open.

Helps a group deal with emotionally "heavy" information. Effective way in which groups create their shared images of the world, each other, and what they are about as a group.

A group's identity converges through these shared fantasies.

Focus Groups

Encourages unstructured thoughts about a given topic. Often used to analyze people's interests and values. Universities, large corporations, and political candidates use focus groups to understand how others perceive their strengths and weaknesses.

Metaphorical Thinking : A metaphor is a thinking technique connecting two different universes of meaning. The key to metaphorical thinking is similarity. Excessive logical thinking can stifle the creative process, so use metaphors as a way of thinking differently about something. Make and look at metaphors in your thinking, and be aware of the metaphors you use. Metaphors are wonderful, so long as we remember that they don't constitute a means of proof. As by definition, a metaphor must break down at some point.



Six Steps to Decision Making Define and Identify The Problem ; State The Case Briefly What Decisions Have to Be Made? Specify Feasible Alternatives Identify Morally Significant Factors in Each Alternative Develop an Action Plan An action plan is a chart that lists the tasks that need to be done and identifies who will be responsible for each, when and what action is necessary, where to start, and how. Divide the Solution Into Sequential Tasks Looking at your solution as one task may seem too great an undertaking. It is much more productive to divide it into sequential tasks which act as measurable steps toward the solution. When dividing the solution into tasks, be sure to include a timeline, what is to be done, and who will do it. Develop Contingency Plans The best laid plans of mice and men.Even the best of plans get stalled, sidetracked, or must be changed midstream because of something unforeseen. Most times these circumstances cannot be prevented, but you can and should prepare for potential kinks by having a contingency plan. Having such a plan will keep the momentum going instead of having to stop and figure out what to do when an unplanned event occurs. 7. Implement the Solution

Sometimes the groups who choose the solution are not the ones who will implement it. If this is the case, members who select the solution should clearly explain why they selected it to the ones who will implement it. Showing that the problem solving process was an organized and orderly process will convince others that the solution is valid. Monitoring A designated member of the group should monitor whether or not specific tasks are being performed or short-term targets are being achieved as planned. This monitoring should take place regularly until all tasks are completed. Some suggested monitoring techniques are:

Group meetings Customer/user interviews Surveys and written questionnaires Quality control spot checks

Audit Checkpoints on action plan Personal inspection of all work Budget controls

the Role of Leadership in Change Management

When change is imposed (as in downsizing scenarios), clearly the most important determinant of "getting through the swamp", is the ability of leadership to...well, l e a d . The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability, competence, a n d c r e d i b i l i t y o f s e n i o r a n d m i d d l e m a n a g e m e n t . I f y o u a r e t o m a n a g e c h a n g e effectively, you need to be aware that there are three distinct ti mes zones where l e a d e r s h i p i s i m p o r t a n t . W e c a n c a l l t h e s e p r e p a r i n g f o r t h e J o u r n e y , S l o g g i n g through the Swamp, and After Arrival. We will look more carefully at each of these.

The Role of Leadership In an organization where there is faith in the abilit ies of formal leaders, employees will look towards the leaders for a number of things. During drastic change times, e m p l o y e e s w i l l e x p e c t e f f e c t i v e a n d s e n s i b l e p l a n n i n g , c o n f i d e n t a n d e f f e c t i v e decisionmaking, and regular, complete communication that are timely. Also during these times of change, employees will perceive leadership as supportive, concerned a n d c o m m i t t e d t o t h e i r w e l f a r e , w h i l e a t t h e s a m e t i m e r e c o g n i z i n g t h a t t o u g h decisions need to be made. The best way to summarize is that there is a climate of trust between leader and the rest of the team. The existence of this trust, bring s hape for better times in the future, and that makes coping with drastic change much easier. I n o r g a n i z a t i o n s c h a r a c t e r i z e d b y p o o r l e a d e r s h i p , employees expect nothing positive. In a climate of distrust,

e m p l o y e e s l e a r n t h a t l e a d e r s w i l l a c t indecipherable ways and in ways that do not seem to be in anyone's best interests. Poor leadership means an absence of hope, which, if allowed to go on for too long, results in an organization becoming completely nonfunctioning. The organization must deal with the practical impact of unpleasant change, but more importantly, must labor un der the weight of employees who have given up, have no faith in the system or in the ability of leaders to turn the organization around. Leadership before, during and after change implementation is the

key to getting through the swamp. Unfortunately, if h aven't established a track record of effective leadership, by the time you have to deal with difficult changes, it may be too late.

Prepare For the Journey It would be a mistake to assume that preparing for the journey takes place only after the destination has been defined or chosen. When we talk about preparing for the change journey, we are talking about leading in a way that lays the foundation or g r o u n d w o r k f o r A N Y c h a n g e s t h a t m a y o c c u r i n t h e f u t u r e . P r e p a r i n g i s a b o u t building resources, by building healthy organizations in the first place.

Much like healthy people, who are better able to cope with infection or disease than unhealthy people, organization that are healthy in the first place are better able to deal with change. As a leader you need to establish credibility and a track record of effective decision making, so that there is trust in your ability to figure out what is necessary to bring the organization through.

Slogging Through the Swamp Leaders play a critical role during change impl ementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity a bout direction and mandate. It c a n b e a p e r i o d o f e m o t i o n a l i s m , w i t h e m p l o y e e s g r i e v i n g f o r w h a t i s l o s t a n d initially unable to look to the future. During this period, effective leaders need to focus on two things. First, the feelings and confusion of employees must be acknowledged and validated. Second, the leader must work with employees to begin creating a new vision of the altered workplace, and helping employees to understand the direction of the future. Focusing only on feelings, may result in wallowing. That is why it is necessary to begin the movement into the new ways or situations. Focusing only on the new vision may result in the perception that the leader is out of touch, cold and uncaring. A key part of leadership in this phase knows when to focus on the pain, and when to focus on building and moving into the future.

After Arrival In a sense you never completely arrive, but here we are talking about the period w h e r e t h e i n i t i a l i n s t a b i l i t y o f m a s s i v e c h a n g e h a s b e e n r e d u c e d . P e o p l e h a v e become

less emotional, and more stable, and with effective leadership during the previous phases, are now more open to locking in to the new directions, mandate and ways of doing things. This is an ideal time for leaders to introduce positive new change, s u c h a s examination of unwieldy procedures or Total Quality Management.

Conclusion Playing a leadership role in the three phases is not easy. Not only do you have a responsibility to lead, but as an employee yourself, you have to deal with your own reactions to the change, and your role in it.

Thinking and Lateral Thinking- Defined Introduction: Thinking is the highest mental activity present in man. All human achievements and progress are simply the products of thought. The evolution of culture, art, literature, science and technology are all the results of thinking. Thought and action are inseparable - they are actually the two sides of the same coin. All our deliberate action starts from our deliberate thinking. For a man to do something, he should first see it in his mind's eye -- he should imagine it, think about it first, before he can do it. All creations-- whether artistic, literal or scientific --first occur in the creator's mind before it is actually given life in the real world. The Purpose of Thinking: The purpose of thinking, paradoxically, is to arrive at a state where thinking is no more necessary at all. In other words, thinking starts with a problem and ends in a solution. Thus, thinking is a tool for adapting ourselves to the physical and social environment in which we are in. Can We Improve Our Thinking Ability? Dr. Edward de Bono says that thinking CAN be improved just like any skill because thinking according to him is a skill. He has developed many useful techniques for training thinking skills. Why Should We Improve Our Thinking Skills: The benefits of developing thinking ability are manifold. By developing one's thinking skills one can make achievements; can become successful; can shine in social life; can attain emotional, social and economic maturity and so on. By developing one's thinking abilities it is possible to transform one's aggressive tendencies, bad temper and other negative tendencies creatively and constructively. It has been found by Dr.Edward de Bono that when school students were taught to think effectively, their ill-temper and aggressive tendencies reduced significantly.

Clinical Psychologists have also found that those who have neuroses are poor thinkers compared to normals. Neurotics scored significantly lower scores in decision making, problem solving and creative thinking. Interestingly, when neurotics were taught to think effectively, they showed a remarkable reduction in their neurosis. Misconceptions Regarding Thinking Misconception No.1: The present education system develops and enhances thinking and so the more educated you are the better thinker you are. Fact: Actually, education suppresses free thinking. Creative thinking has almost no place in current education. Moreover, education even destroys creative thinking abilities by its over emphasis on logical thnking and critical thinking which are relatively lower types of human thinking. Since reasoning, argument, problem solving are given over importance a need to become correct and successful all the time is developed in the student. Again, our present education system is so information oriented that it gives ready-made answers. This kills the student's natural tendency to explore, experiment and to experience. Thus, the highly educated person ends up having lesser ability to think creatively although he/she may have a lot of information at his/her disposal and also have admirable abilities in logical and critical thinking. Misconception No.2: Less Educated or Uneducated can never become good thinkers. Fact: Actually, less educated display higher abilities in creative thinking. This is because they do not have an inflated ego that demands cent percent correct answers or success in all endeavors. Again, they do not have ready-made-answers (i.e., book-answers) and so are forced to explore, experiment and experience things themselves. This empowers them to go through less explored answers and even find original answers. Misconception No.3: IQ and thinking ability are the same. The more IQ one has, the better thinking ability one has. On the contrary, those who have lower IQ have only low thinking abilities. Fact: It is true that those who have greater thinking ability, as a rule, have high IQ. But this does not mean that all those who have high IQ are good thinkers. Usually high IQ people use their thinking skills for logical thinking, arguments, critical thinking. They very rarely use creative thinking. Thus high IQ is actually a blockage to creative thinking. It has also been found that those who have average IQ can become better thinkers.

Misconception No.4: Thinking ability, decision making ability and problem solving ability are inherent and there is very little we can do to develop these. Fact: This is the most terrible misconception regarding thinking. In fact, Dr.Edward de Bono (and also many others) have proved that thinking is a skill that can be enhanced by training and practice. Thus decision making, problem solving and creative thinking can be developed and improved. Errors in Thinking 1. Partialism This error occurs when the thinker observes the problem through one perspective only. That is, the thinker examines only one or two factors of the problem and arrives at a premature solution. 2. Adversary Thinking This is a "you are wrong. So, I should be right." type of reasoning. Politicians are the masters in this type of thinking and they use it to their advantage. 3. Time Scale Error This is a kind of partialism in thinking in which the thinker sees the problem from a limited timeframe. It can be likened to short-sightedness. 4. Initial Judgement Here, the thinker becomes very subjective. Instead of considering the issue or problem objectively, the thinker approaches it with prejudice or bias. 5. Arrogance and Conceit This error is sometimes called the "Village Venus Effect" because like the villagers who think that the most beautiful girl in the world is the most beautiful girl in their village, the thinker believes that there is no better solution other than that he has already found. This blocks creativity. Not only individuals but societies and even the whole mankind sometimes fall prey to this error. For example, before Einstein, the whole scientific community (and thus the whole mankind) believed that time was absolute. Lateral Thinking: Dr. de Bono speaks about two types of thinking -- Vertical thinking and Lateral thinking. Vertical thinking is high probability thinking, whereas lateral thinking is low probability thinking. In the former type, the thinker selects the most logical solution possible. This will be the one that is the most used and the most tested one. For example, suppose you want to cut a cake or hard boiled

egg into two. Using a knife or a sharp blade to cut it is the most probable and most logical solution. But there are other less probable ways: for example, you can use a twine. The former is an example of a solution arrived at Vertical thinking while the later is an example of a solution arrived at using Lateral thinking. Dr. de Bono argues that creativity comes from Lateral thinking. He also says that it is possible to improve lateral thinking ( and thus creativity) by deliberate application and practice of the techniques he has devised. He gives two main techniques for improving our problem solving by lateral thinking: 1. Divide the Problem into Small Sub-Problems This allows the thinker to perceive the problem in detail because he is able to approach each subproblem individually and thus he is able to consider more parameters. 2. Move Attention from One Part of the Problem to Another Part When we move our attention from one part of the problem to another, it is possible to view the problem from a new perspective. This would in turn help you solve the problem easily. Basic Nature of Lateral Thinking Concerned with changing patterns In a self-maximizing system with a memory the arrangement of information must always be less than the best possible arrangement Both an attitude and a method of using information Never a judgment

Benefits of Lateral Thinking Constructively challenge the status quo to enable new ideas to surface Find and build on the concept behind an idea to create more ideas Solve problems in ways that dont initially come to mind Use alternatives to liberate and harness your creative energy Turn problems into opportunities Select the best alternate ideas and implement them

What is Creativity? An Ability. A simple definition is that creativity is the ability to imagine or invent something new. As we will see below, creativity is not the ability to create out of nothing (only God can do that), but the ability to generate new ideas by combining, changing, or reapplying existing ideas. Some creative ideas are astonishing and brilliant, while others are just simple, good, practical ideas that no one seems to have thought of yet. Believe it or not, everyone has substantial creative ability. Just look at how creative children are. In adults, creativity has too often been suppressed through education, but it is still there and can be reawakened. Often all that's needed to be creative is to make a commitment to creativity and to take the time for it. An Attitude. Creativity is also an attitude: the ability to accept change and newness, a willingness to play with ideas and possibilities, a flexibility of outlook, the habit of enjoying the good, while looking for ways to improve it. We are socialized into accepting only a small number of permitted or normal things, like chocolate-covered strawberries, for example. The creative person realizes that there are other possibilities, like peanut butter and banana sandwiches, or chocolate-covered prunes. A Process. Creative people work hard and continually to improve ideas and solutions, by making gradual alterations and refinements to their works. Contrary to the mythology surrounding creativity, very, very few works of creative excellence are produced with a single stroke of brilliance or in a frenzy of rapid activity. Much closer to the real truth are the stories of companies who had to take the invention away from the inventor in order to market it because the inventor would have kept on tweaking it and fiddling with it, always trying to make it a little better. The creative person knows that there is always room for improvement. Creative Methods Evolution. This is the method of incremental improvement. New ideas stem from other ideas, new solutions from previous ones, the new ones slightly improved over the old ones. Many of the very sophisticated things we enjoy today developed through a long period of constant incrementation. Making something a little better here, a little better there gradually makes it something a lot better--even entirely different from the original. For example, look at the history of the automobile or any product of technological progress. With each new model, improvements are made. Each new model builds upon the collective creativity of previous models, so that over time, improvements in economy, comfort, and durability take place. Here the creativity lies in the refinement, the step-by-step improvement, rather than in something completely new.

Another example would be the improvement of the common wood screw by what are now commonly called drywall screws. They have sharper threads which are angled more steeply for faster penetration and better holding. The points are self tapping. The shanks are now threaded all the way up on lengths up to two inches. The screws are so much better that they can often be driven in without pilot holes, using a power drill. Synthesis. With this method, two or more existing ideas are combined into a third, new idea. Combining the ideas of a magazine and an audio tape gives the idea of a magazine you can listen to, one useful for blind people or freeway commuters. For example, someone noticed that a lot of people on dates went first to dinner and then to the theater. Why not combine these two events into one? Thus, the dinner theater, where people go first to eat and then to see a play or other entertainment. Reapplication. Look at something old in a new way. Go beyond labels. Unfixate, remove prejudices, expectations and assumptions and discover how something can be reapplied. One creative person might go to the junkyard and see art in an old model T transmission. He paints it up and puts it in his living room. Another creative person might see in the same transmission the necessary gears for a multi-speed hot walker for his horse. He hooks it to some poles and a motor and puts it in his corral. The key is to see beyond the previous or stated applications for some idea, solution, or thing and to see what other application is possible. For example, a paperclip can be used as a tiny screwdriver if filed down; paint can be used as a kind of glue to prevent screws from loosening in machinery; dishwashing detergents can be used to remove the DNA from bacteria in a lab; general purpose spray cleaners can be used to kill ants. Changing Direction. Many creative breakthroughs occur when attention is shifted from one angle of a problem to another. This is sometimes called creative insight. Myths about Creative Thinking and Problem Solving 1. Every problem has only one solution (or one right answer). The goal of problem solving is to solve the problem, and most problems can be solved in any number of ways. If you discover a solution that works, it is a good solution. There may be other solutions thought of by other people, but that doesn't make your solution wrong. What is THE solution to putting words on paper? Fountain pen, ball point, pencil, marker, typewriter, printer, Xerox machine, printing press?

2. The best answer/solution/method has already been found. Look at the history of any solution set and you'll see that improvements, new solutions, new right answers, are always being found. What is the solution to human transportation? The ox or horse, the cart, the wagon, the train, the car, the airplane, the jet, the SST? Is that the best and last? What about pneumatic tubes, hovercraft, even Star Trek type beams? 3. Creative answers are complex technologically. Only a few problems require complex technological solutions. Most problems you'll meet with require only a thoughtful solution requiring personal action and perhaps a few simple tools. Even many problems that seem to require a technological solution can be addressed in other ways. 4. Ideas either come or they don't. Nothing will help. There are many successful techniques for stimulating idea generation. We will be discussing and applying them. Positive Attitudes for Creativity 1. Curiosity. Creative people want to know things--all kinds of things-- just to know them. Knowledge does not require a reason. The question, "Why do you want to know that?" seems strange to the creative person, who is likely to respond, "Because I don't know the answer." Knowledge is enjoyable and often useful in strange and unexpected ways. 2. Challenge. Curious people like to identify and challenge the assumptions behind ideas, proposals, problems, beliefs, and statements. Many assumptions, of course, turn out to be quite necessary and solid, but many others have been assumed unnecessarily, and in breaking out of those assumptions often comes a new idea, a new path, a new solution. 3. Constructive discontent. This is not a whining, griping kind of discontent, but the ability to see a need for improvement and to propose a method of making that improvement. Constructive discontent is a positive, enthusiastic discontent, reflecting the thought, "Hey, I know a way to make that better." 4. A belief that most problems can be solved. By faith at first and by experience later on, the creative thinker believes that something can always be done to eliminate or help alleviate almost every problem. Problems are solved by a commitment of time and energy, and where this commitment is present, few things are impossible.

Characteristics of the Creative Person

curious seeks problems enjoys challenge optimistic able to suspend judgment comfortable with imagination sees problems as opportunities sees problems as interesting problems are emotionally acceptable challenges assumptions doesn't give up easily: perseveres, works hard

What is a Problem?

1. A problem is an opportunity for improvement. A problem can be a real break, the stroke of luck, opportunity knocking, a chance to get out of the rut of the everyday and make yourself or some situation better. Note that problems need not arrive as a result of external factors or bad events. Any new awareness you have that allows you to see possibilities for improvement brings a "problem" for you to solve. This is why the most creative people are "problem seekers" rather than "problem avoiders."

Developing a positive attitude toward problems can transform you into a happier, saner, more confident person who feels (and is) much more in control of life. Train yourself to respond to problems with enthusiasm and eagerness, rising to the opportunity to show your stuff, and you will be amazed at the result.

2. A problem is the difference between your current state and your goal state. A problem can result from new knowledge or thinking. When you know where you are and where you want to be, you have a problem to solve in getting to your destination. The solution can and should be fun and exciting as you think over the various possible solution paths you might choose. When you can identify the difference between what you have and what you want, you have defined your problem and can aim toward your goal.

3. A problem results from the recognition of a present imperfect and the belief in the possibility of a better future. Isn't it interesting here that hope produces problems? The belief that your hopes

can be achieved will give you the will to aim toward the better future. Your hopes challenge you, and challenge is another definition of a problem. What is a Solution?

solution as the management of a problem in a way that successfully meets the goals established for treating it. Sometimes the goal will be to eliminate the problem entirely; sometimes the goal will be only to treat the effects of the problem. The possibilities inherent in the problem, together with the ambitiousness, resources, and values of the problem solver, will help shape the goals.

There are two basic approaches to solving problems, one where the cause or source of the problem is attacked and the other where the effects or symptoms of the problem are attacked. For ease of remembering, we can call these the stop it and the mop it approaches, respectively. Each of these approaches has three basic forms. As we detail these approaches and their forms, let's use the problem of a leaking water tank to illustrate each one.

TECHNOLOGY INTRODUCTION : The word technology has a wider connotation and refers to the collection of production

possibilities, techniques, methods and processes by which resources are actually transformed by humans to meet their wants. Ferr (1988) has defined technology as practical implementations of intelligence. However, Gendron (1977) has provided a more comprehensive definition:

A technology is any systematized practical knowledge, based on experimentation and/or scientific theory, which is embodied in productive skills, organization, or machinery. The role of technology in fostering economic growth of nations and enhancing their industrial competitiveness has been widely recognized, through its domineering influence over industrial productivity. Further,

technology has emerged as the most important resource that contributes directly to socio- economic development. Hence, technology is viewed from various perspectives: As an engine for economic development, as a strategic resource, and as a competitive weapon. This necessitates effective management of technology - at both national and firm levels. Technology Management (TM), which inter alia aims at planning and developing the technological capabilities of an organization or a nation, has now occupied the centre stage of decision-making. Managing technology is a method of operation that leverages human resources, technology and other business assets by optimizing the relationships between the technology functions of the business enterprise. It is the process of integrating science, engineering and managing with research, development and manufacturing in order to meet the operational goals of the business unit effectively, efficiently and economically. It includes managing the totality of the technology operations from concept commercialization. through TM embraces several interconnected issues such as: technology policy;

technological forecasting and assessment; technology strategy; technology transfer; technologyinduced as well as market-oriented Research and Development (R&D); process technology and product technology and their continuing improvement; human resource management in terms of innovative capabilities, flexibility and contribution; and technology project management. Managing technology is a method of operation that leverages human resources, technology and other business assets by optimizing the relationships between the technology functions of the business enterprise. It is the process of integrating science, engineering and managing with research, development and manufacturing in order to meet the operational goals of the business unit effectively, efficiently and economically. It includes managing the totality of the technology operations from concept through commercialization.

Technology Life Cycle (Tlc) The nature of a technology and its implications to firms have been observed to undergo perceptible changes over its life span. Although it is correct to view a TLC as a continuum, it is more convenient to consider it as a series of discrete stages for the purpose of better understanding and analysis. A technology typically evolves through the following stages in its life cycle.

1) Cutting-edge: This stage refers to the birth of a new technology. The primary entrepreneur(s), here, is on its Research and Development (R&D) to a

focus of

demonstrable form.

Nevertheless, the need for financial support for R&D and for testing prototypes is also a pressing concem at this stage. Although basic research forms a major part of the effort in this stage, firms seldom do it without a specific application in mind. However, the scope of such an application may not be clearly known to the firm and the related knowledge may still be abstract. Hence, the target market, and the feasibility and viability of R&D at this stage are also uncertain.

2) State-of-the-Art: This stage in a TLC begins with the deployment of cutting- edge technology to solve customers problems. The customer base state-of-the art technology is usually small, but sophisticated. Hence, technical specialists are, perhaps, ideal for marketing the technology. Some of the functions, such as engineering, manufacturing, finance and administration may have begun formally while others may still be embryonic at this stage. Many other important functions are carried out with the help of hired consultants or agencies. The market witnesses a high rate of product innovations and as a result a great product diversity can be observed. The production process will be usually nonstandard. Hence, the state-of-the-art technology can respond easily to the varied market requirements, but only ineffectively and inefficiently.

3) Advanced: The gradual standardization of technological characteristics leads to rapid market expansion. The market largely consists of less sophisticated customers who seek all the benefits of state-of-the-art technology, but have no desire to develop the technical expertise needed to

understand the technology. This market calls for professional marketing. The potential profits attract a Large number of competitors and hence, the technology is no longer of the hi-tech variety available with only a few suppliers. A market shakeout, segmentation, and further standardization are bound to occur. A firms survival in the market beyond this stage indicates its relatively efficient operations. At this stage, a part of the production system is likely to be automated, and division of labour is more pronounced. However, there is a possibility that the rapidly increasing demand may cause manufacturing and marketing capacity crises which will call for a major transformation in the organization structure. Parallelly, financial and administrative crises are also likely.

4) Mainstream / Mature: As technology enters this stage, the scope for further product innovations reduces and process technology becomes the target of innovative effort of firms. However, gradually, even the production process gets so well integrated that the possibility of any major changes in product or process technological elements will be limited and product differentiation becomes

difficult. Hence, the strategic thrust shifts to efficient and economic production for minimizing costs. This may be achieved by huge capital investments or shifting the production base to the Third world. When the production costs also cease to offer comparative advantage, the competition will shift to customer service. This may help the firm to maintain and improve upon growth momentum and market position. In this stage, the firm will be better managed by a professional management team than entrepreneur/owner. The organization will have grown in size and will call for more formal structures, communications, and systems.

5) Decline: During this stage, the scope for further improvement of the technology diminishes rapidly. The increasing marginal cost of its improvement, coupled with the functional superiority of the next generation technology, results in the older technology giving way to the new one gradually. However, it may not be easy for the new technology to wipe out the older technology one and pervade the market. The overlap between the above successive stages of a TLC continuous process rather than a set of discrete stages. makes it a

An innovation strategy guides decisions on how resources are to be used to meet a rms objectives for innovation and thereby deliver value and build competitive advantage. Its crafting is supported by a number of innovative capabilities that steer the congura - tion and reconguration of a rms resources. It entails judgement about which kinds of innovation processes (discussed in Chapter 3) are most appropriate for the rms circumstances and ambitions. An innovation strategy identies the technologies and markets the rm should best develop and exploit to create and capture value. It does so within the limits of the resources available to the rm to support current and future innovation eorts and its evolving corporate strategy, organization, and culture. simple model of four interrelated elements involved in innovation strategy, including: Innovation strategy helps to focus attention on

how these resources, capabilities, and processes are best developed and deployed to meet corporate objectives. RESOURCES FOR INNOVATION Financial resources and appetite for and tolerance of risk. Human resources and their capacities for innovation. Technological resources, both physical (plant and equipment) and intellectual (knowledge, patents, trademarks). Marketing resources (ownership and market penetration of brands, access to lead customers, knowledge of markets). Organizational resources (the routines, procedures, practices, and policies within the rm, which, when combined, craft processes). Networking resources (partners, suppliers, customers, communities within which the rm operates, and the level of adhesion and trust within them). INNOVATION PROCESSES Innovation strategy involves deciding upon the most appropriate innovation processes for the rms context and targetswhether these processes are relatively simple or

complex(seethediscussionlaterandChapter3onthevariousgenerationsofinnovation process). An innovation strategy helps rms decide on the right things to do; their innovation processes help them do things in the right ways .Subsequent chapters of this book examine the various elements of the innovation process, including the development and maintenance of supportive networks and communities, technological collaboration,R&D,creatingnewproductsandservices,operations,andgenerating economic returns through commercialization. The reasons why innovation is a strategic management issue is because it is intimately linked to the capacity of the rm to deliver value: BUILDING ORGANIZATIONAL CULTUREThe importance of organizational culture and how it contributes to organizational effectiveness and achievement is well established. Organizational culture is possibly the most critical factor determining an organization's capacity, effectiveness, and longevity. It can also contribute significantly to the organization's brand image and brand promise, which can have both positive and negative implications. When culture is out of alignment with mission, core values, and operational strategy, it can become a significant liability for the organization. Organizational culture plays an especially critical role in most nonprofits, particularly those with a large and ever-changing pool of volunteers. Nonprofits generally evolve from a group of people working on a common cause to solve a community problem. What originally holds these individuals together is their

shared commitment or purpose and the common underlying assumptions and values about what they want to accomplish and how they hope to accomplish it. Human systems naturally evolve from habits of behavior and thoughts based on these shared assumptions and values. These predictable and promoted behaviors and the written artifacts created by the groups as a whole gradually become the organizational culture. If the culture within an organization fails to evolve and change as rapidly as the social conditions in the community and society, the organization's culture often loses sight of the commitment or purpose that brought people together in the first place. The organizational culture then becomes an end in itself rather than the means. To keep organizational culture vital and relevant, people need a deep understanding of why the organization was created, what brought its members together in the first place, and why the group still exists today. Is it an organization with a mission-driven contemporary purpose and strategic focus supported by a healthy organizational culture? Or have once-effective human systems and their procedures, rituals, and bureaucracies--the organizational culture itself--replaced shared goals and values to become the dominant source of power and energy in the organization? When the organizational culture strays away from its original mission, goals, and strategies, the task becomes one of transforming the organization to revitalize the culture. In reality, the transformation of the organization as a whole is only achieved through the change and growth that takes place within each member of the group. In my own experience, such transformation and enhancement is best accomplished through a process of shared, collaborative learning. Conversation is the core process of shared learning in most work settings and is the starting point to building individual human and organizational capacity simultaneously. As basic as it sounds, a conversation about a shared vision marks the beginning of the process. People do not invest in the vision of a current or past leader; they invest in their own vision. Reaching a shared vision can only be accomplished with a language and process that promotes inclusion and connection of everyone concerned.

Types of organization culture

END TERM EXTRA QUESTIONS: Joint Venture vs Collaboration Collaboration is a concept that is responsible for coming together of people to work towards a shared goal or objective. It is an idea that has led to creation of international bodies where member countries cooperate with each other to achieve the objectives for which the body is set up. Writers collaborate to finalize the script of a movie, two persons collaborate to start a new business, institutes collaborate to help in spread of education and research, and countries collaborate for specific issues to arrive at a solution or to lead to better, friendly relations. Joint venture is a special type of collaboration and there are many who cannot differentiate between the two. This article will highlight the differences between the two concepts Joint Venture and Collaboration. Collaboration Collaboration is best exemplified in the area of trade where two countries benefit by collaborating with each other as their citizens get products that are not naturally produced in their countries. Collaboration started as soon as people started to communicate with each other through words or written language. However, collaboration is not limited to material exchange. There are countries lacking technologies and services in certain areas and these countries benefit a lot when they decide to collaborate with countries possessing them. Joint Venture A joint venture is a particular example of collaboration that is formed especially for the purpose of business. A joint venture is described as an agreement between two or more parties who cone together, sharing their resources (assets) and expertise to establish a business entity and share the profits. Control of the enterprise is also joint and no single party controls the JV. When a JV is not for a specific project and is for normal business on a continuous basis, it can be considered as a type of partnership. JV is not a type of entity and it can take shape of a corporation, partnership, a limited liability enterprise, and so on. A joint venture can be formed between local as well as international parties. Joint venture allows a foreign party to get entry into another countrys markets easily at the same time allowing it to use the resources of the local partner. Difference Between Joint Venture and Collaboration Collaboration is a generic term that describes coming together of two or more entities for mutual benefit Joint Venture is a specific entity that describes the purpose for which two or more parties come together for business JV allows a party to gain easy entry into another country and also to use resources of the local partner in the venture.

JV is characterized by joint control and no single party has outright control over the business entity.

How do you build and sustain a culture and climate for innovation and entrepreneurship? Practice, practice, practice. Creating a culture of entrepreneurship is in fact quite a challenge, depending on the nature and maturity of the enterprise. The more mature and well established a business is, the further it is from the original entrepreneurship. Such organizations, are mostly populated by managers (albeit excellent professionals) and no longer with leaders. In this situation, the culture of entrepreneurship and risk taking can only be driven top down, by example, repetition and leadership. Also, the culture of rewards has to be modified to match the desired culture of entrepreneurship. Organizations, like their people, must learn to repeatedly reinvent themselves, and not be set in permanent molds or cast in stone. The reality is that most early claims of encouraging innovation and innovativeness are met with a hefty dose of skepticism. The skepticism can be stated quite bluntly or couched in polite words of support, followed by inaction. I am not sure which is more frustrating to the goals and efforts of the innovation manager. Still, with patience, persistence and discipline, the innovation manager must lead by example, build trust, invoke the bully pulpit and ultimately create a willing suspension of disbelief. This is a sensitive turning point. Succeed or fail, it is necessary to keep going at all times, providing a transparency of process that instills confidence. As in life, once trust is lost, it is hard to win back. Finally, an ingredient that you may not expect is courage. The role of personal and organizational courage cannot be underestimated. It is the third vital leg of innovation. It is hard to think of successful, disruptive or breakthrough innovations without an individual, team or leader taking a strong personal risk. Particularly in risk-averse organizations or environments, this is critical some foolhardy soul must take the first step, driven by the passion of his or her idea, and trust that even if the effort ultimately fails, it was worth it! Hopefully, the organization reciprocates by reward rather than retribution, and by so doing firmly implants the first vestiges of innovation culture. To build and sustain a culture and climate supportive of innovation, one must act in two fronts creating the right incentives and removing the biggest blocks to innovation. The right incentives can be summarized in three main elements: 1. Giving innovators the time and space required, giving them a chance to be creative and bold. Examples of good practices on giving time to innovators include these:

Giving the employees a small but fixed amount of weekly time to work on alternative and pet projects, away from the routine activities required for the main business.

Supporting alternative training programs on competencies and skills, away from the traditional technical and administrative training.

Promoting lots of activities away from the office, close to final customers and consumers. 2. Providing the right mix of diverse people on the innovation teams. Bring women, young people, people from the periphery of the organization and other outsiders onto your innovation team, who will bring new and fresh insights, and will help you to build up an exciting innovation culture. 3. Fostering connections and relationships. A real support to conversation is an open exchange of ideas. How do you build the culture of innovation? It has to come from the leaders of the organization. Leaders allow culture, and culture is maintained due to a system of positive and negative reinforcements. If you are a leader, here are some negative reinforcements you can employ if you really want to kill innovation:

Make sure everyone knows that you know everything Organize your people into silos Call lots of meetings just because its time to meet Always focus on how you succeeded in the past as a way to solve the future issues Make sure the near-term budget is the most important thing to talk about Take highly energetic people and make them work on mundane tasks Reward those who can put out fires, instead of those who prevent them Give too little resources to new ideas just to say you are trying them Punish failure instead of celebrating that the organization learned a new way that something wont work

Dont build innovation into your goals Dont kill pet projects that are failing Stay in your office and only meet with your direct reports and peers, unless there is bad news to share or you want to wield the hammer to get things done

Require a complete business rationale write up for new ideas Perhaps the most important lever for creating and nurturing an innovative culture is the actions of the CEO and his or her team. The Chinese say, The culture of the empire comes down from the home of the Emperor. If the CEOs team doesnt exhibit innovativeness or at least a strong i nterest in entrepreneurial activities, then its not going to happen, at least not on a large scale and not in a repeatable manner. Lots of innovation can occur at the grassroots, but if it doesnt eventually percolate up and receive the support it requires or worse yet, if the opportunity is actively thwarted people will pay attention and stop trying. The most persistent, passionate people will either give up or leave and start a new venture. In this context, the social change adage, Be the change you envision provides excellent advice for all leaders. People within organizations emulate and play to those who succeed. If you want innovative behavior, then start exhibiting it yourself. Ultimately, if you dont see enough positive change, then consider moving to a new company. Life is too short to keep your head down if you truly care about creating the future. First, companies need to rethink who they are focused on rewarding. In general, people want to share their ideas. It tends to be the management bureaucracy, or what one client called, the nine layers of management, each with a line item veto that prove to be the greatest obstacle to establishing the right climate. Consider rewarding middle managers for allowing a flow of ideas. Consider flattening the organization and making it easy for an idea to bypass the chain of command if it doesnt have to do with day-to-day operations. Also, while not all companies can afford to give people 10 percent of their time to explore new ideas, consider taking more of an event-driven approach. As an example, Breakthrough Management Group has a process by which a group of people come together in a sort of kaizen event a structured, focused event designed around ideas to generate new ideas. Its something every manager and business unit should be doing at least once a year. Its energizing. But it doesnt require a wholesale change in the way

the company works day-to-day. Managers that used to be tasked with figuring out how to do things better should now also be tasked with taking a look at least once a year at how they might do things differently. Key Difference: Discovery is known as the act of detecting something that already preexists and has been around over a long period of time. Invention is using objects, ideas or theories that are already preexisting in order to create a new object, ideas or theories that are not in existence yet.

Discoveries and inventions may seem similar because of something new being revealed, however they are two different words and have different meanings. Discovery is finding out or figuring out something that preexists, while invention is using objects that preexist to create something new that is first of its kind.

Discovery is known as the act of detecting something that already preexists and has been around over a long period of time. Discovery means to find, figure out or even acknowledge something that has been in nature for a good number of years. Discovery could also include forces or other objects that are not solid in nature, such as gravity, force, atmosphere, gases, etc. Discovery doesnt always have to be intentional and can also be stumbled upon by accident, such as gravity, which was only after an apple fell on Newtons head did he discover the law of gravity. Commonly, discoveries are used in order to advance technology or to given an insight to previous conditions. For example, old fossils and artifacts are excavated in order to see the type of creatures that we may have evolved from or the way a certain civilization lived during that particular time.

New discoveries are believed to be acquired through various senses, which are usually merged with preexisting knowledge and actions. In the same example above, we can only tell the dates of the artifacts and bones, due to carbon dating. In addition to some discoveries being accident, some discoveries are sought after because of questions that arise within a person or a community. The search of answers for these questions usually results in various different types of discoveries. Some discoveries are also fueled by other discoveries, ideas, or collaborations that may have taken place. Invention is using objects, ideas or theories that are already preexisting in order to create a new object, ideas or theories that are not in existence yet. An invention is expected to create a breakthrough in radical science and change the thinking. Inventions are generally patented in order to restrict other people from reproducing the same thing and taking credit for the object. Inventions usually require a process where in experimentation, trial and error and alternations are required in order to create the perfect invention. An

invention could also be accidental, where a person might be trying to create something else and ends up creating something completely different and new. Inventors also keep a proper record of their workings in a notebook or journal, where each process that is followed is monitored and noted.

Inventions are practically ideas that a person has, which he then goes through the process of creating using materials that are already in existence. Inventions could also mean improvement of something that is already in existence but it is now altered with newer features and technologies. For example lets consider a light bulb (invented by Thomas Edison). During the time he created the light bulb, it could only be powered for small amounts of time. Other inventors created technologies related to light bulbs, which made it cheaper to produce, more efficient, longer-lasting and more ecologically friendly. We have light bulbs today that are safe and use less electricity. These are also considered as inventions. Another example includes docking port for an already existing music player, the docking port would be considered as an invention even though the music player was already available.

Invention is also considered synonymous with innovation, where experts claim that in order for invention, innovation is required. Invention is also done in order to make lives easier and more feasible. The nomads during the ancient ages decided to settle down resulting in the creation of tools and wheels, which were then required to build houses and other things. Many inventions are also due to discoveries, such as the telescope was invented in order to view the discovered planets.

Incremental Innovation Exploits existing technology Low uncertainty

Radical Innovation Explores new technology High uncertainty

Focuses on cost or feature improvements in existing Focuses on processes, products or services with products or services, processes, marketing or unprecedented performance features business model Improves competitiveness within current markets or Creates a dramatic change that transforms existing industries markets or industries, or creates new ones

Incremental Emphasis Cost or feature improvements in existing products, services, or processes Technology Exploitation technology Prototyping Ironing out wrinkles near the end of the design phase of existing

Radical Development of new businesses, products and/or processes that transform the

economies of a business Exploration of new technology







technology and learning from the markets how valuable that technology is in that application arena

Trajectory Business Case

Linear and continuous Detailed plan can be developed at the beginning of the process

Sporadic and discontinuous Business model and plan evolves through discovery-based learning Occur sporadically throughout the life cycle, often in response to discontinuities in the project trajectory

Idea Generation & Opportunity Recognition Key Players

Occur at the front end; critical events are largely anticipated

Formal cross-functional teams

Cross-functional networks




Formal, phase-gate model

Informal, flexible model at early stages due to high uncertainties formal at later stages after uncertainties have been reduced

Organizational Structures




Project starts in R&D migrates into an incubating organization transitions into a goal-driven project organization

operates within a business unit

Resources competencies


Standard resource allocation; the team has all competencies

Creative acquisition of competencies and resources from a variety of internal and external sources Informal at early stages formal at later

required to complete the process Operating Unit Formal involvement from the very