SEMESTER 3

INNOVATION MANAGEMENT AND SUSTAINIBILITY

TOPIC 1:
BASICS OF INNOVATION MANAGEMENT AND SUSTAINIBILITY

INNOVATION MANAGEMENT:
Can refer to something new or to a change made to an existing product, idea
or field.
Innovation is the use of new knowledge to offer a new product or service that
customer wants.
Invention + commercialization = innovation.
“Innovation management” thus refers to handling of all the activities
needed to “introduce something new”, which in practice means things
like coming up with ideas, developing, prioritizing and implementing
them, as well as putting them into practice, for example by launching new
products, or by introducing new internal processes.

CHARACTERISTICS OF INNOVATION:
 INNOVATION ENVIROMENT:
Environmental innovations are organizational implementations and
changes focusing on the environment, with implications for companies’
products, manufacturing processes and marketing, with different
degrees of novelty.
Environmental innovation can promote clean production, which can decrease
environmental pollution from the production source.
Eco-innovation results in reducing emissions and wastes. Examples of eco-
innovation are: renewable energy sources, energy recovery from solid waste, waste
usage for materials recovery, fertilizer production from wastewater, eco-products and
several types of management systems.
The literature review identified four key components for an environment conducive to
innovation: culture, organizational structure, people and technology.

BENEFITS:

INNOVATION OPPORTUNITIES:
Innovative opportunities refer to a set of different elements within the processes
whereby actors identify, act upon and realize new combinations of resources
and market needs.x
The following are his 7 sources of innovative opportunity:

The Unexpected

The marketplace is the number one area to look for opportunities.

The Incongruity

There is a discrepancy between what is and what should be. This is a key to
developing wildly successful businesses but it’s tricky. One of the best places to look
for incongruity is in your own customers. Their complaints and unmet wants are all
the hints you need. Ex: Facebook

Process Need

Process need involves identifying your company’s process weak spots and correcting
or redesigning them. This is a task-oriented solution meaning that the source of
innovation comes from within your existing capabilities and ways of doing business –
not the market. An example might be a restaurant that identifies that people wait too
long for their entrees and so decides to hire another chef to speed up creation times.

Industry and Market Structure Change

Your industry and the market are in continual flux. Regulations change and some
product lines expand while others shrink. Firms should continually be on the watch
for this. One example is deregulation. 

Demographics
We constantly see changes occur in populations, income levels, human capital
(education) and age ranges. Smart firms are constantly paying attention to this.

When it comes to the baby boomers businesses have been following them constantly
as they got older. At present they are one of the largest as well as the most affluent
demographic groups with high levels of disposable income.

Combining demographic data with segmentation and targeting is a powerful method

of accurately meeting a target market’s desires.

Changes in Perception, Meaning, and Mood

Over time populations and people change. The way they view life changes, where
they take their meaning from, and how they feel about things also is modified over
time and smart companies must pay attention to this in order to capitalize (and avoid
becoming forgotten, a relic of ages past).

Here are two really good examples. First is a principle called “downaging” which
refers to people who look at 50 as being 40.

Religion is another example. Across the world we’ve seen Islam and atheism rise.
Companies should adapt as overall meaning changes in culture.

New Knowledge

As the speed of technological revolution increases there will be an ever increasing

number of opportunities that open up.

New knowledge is about more than just technology though, it’s about finding better
ways of doing things and improving processes. Your company should look to this new
knowledge for ways it can improve incrementally.

DEFINATION OF SUSTAINIBILITY:

 Sustainability refers to the ability to maintain or support a process

continuously over time.

 Sustainability consists of fulfilling the needs of current generations without

compromising the needs of future generations, while ensuring a balance
between economic growth, environmental care and social well-being.

 sustainability is the ability to retain or maintain something at a certain rate or

level.  
 Types of sustainability:
Environmental sustainability:

Environmental sustainability focuses on the conservation of biodiversity without

foregoing economic and social progress. The foundations of environmental
sustainability are safeguarding water, saving energy, reducing waste, using recyclable
packaging, limiting or eliminating the use of plastics, using sustainable transport,
reusing paper 

Examples: Avoiding the use of plastic bags to keep the oceans clean,

Planting trees to help protect the environment.

Economic sustainability

Economic sustainability refers to the organisation's ability to manage its resources

and responsibly generate profits in the long term.
An example of this type of sustainability is the company Unilever, which in the year
2010 rolled out a strategy to achieve a balance between sustainability and the
company's economic performance.

Social sustainability
social sustainability has the goal of strengthening the cohesion and stability of
specific social groups. Social sustainability is about identifying and managing
business impacts, both positive and negative, on people. 

https://sustainability-success.com/social-sustainability-examples/
RELATION BETWEEN INNOVATION AND SUSTAINABILITY:

SECOND PART:

Q.1) Organization for innovation

https://www.bbvaopenmind.com/en/articles/innovative-organizations-structure-
learning-and-adaptation/

https://www.mbaknol.com/modern-management-concepts/organizational-
innovation/

Q.2) Innovation Strategy

https://blog.planview.com/what-is-innovation-strategy/

Q.3) Climate and culture for innovation

https://www.codexx.com/2015/creating-a-climate-of-innovation/

https://www.viima.com/blog/innovation-culture

https://ip.com/blog/innovation-strategy-the-importance-of-a-culture-of-
innovation/
THIRD PART

Q.1) New product development

https://www.business.qld.gov.au/running-business/growing-business/becoming-
innovative/developing-products/new-products

https://maze.co/collections/product-development/new/
https://www.netsolutions.com/insights/everything-about-new-product-
development/

Q.2) process of innovation

An innovation process is a set of steps between an idea's conception and its
implementation. It is a streamlined process that is managed in a way that reflects a
company's structure and innovation goals.

https://alcorfund.com/insight/the-innovation-process-importance-steps-types-
examples-and-risks-involved/
Q.3) Product innovation:

https://www.indeed.com/career-advice/career-development/products-of-
innovation

https://www.revuze.it/blog/what-is-product-innovation/

Q.4) Innovation diffusion:

https://sphweb.bumc.bu.edu/otlt/mph-modules/sb/behavioralchangetheories/
behavioralchangetheories4.html
https://www.smartinsights.com/marketing-planning/marketing-models/diffusion-
innovation-model/

Innovation society:

https://innovationsgesellschaft.ch/en/about-us/the-innovation-society/
Fourth part:

Models of innovation:

Schumpeter and creative destruction:

https://www.investopedia.com/terms/c/
creativedestruction.asp#:~:text=Schumpeter%20characterized%20creative
%20destruction%20as,incessantly%20creating%20a%20new%20one.%22

Incremental v/s Radical innovation:

http://www.1000ventures.com/business_guide/innovation_radical_vs_incr.html

Abernathy – Clark Model:

Abernathy and Clark’s model (1985) classifies innovations according to their impact
on the market knowledge and technological capabilities of the firm: differentiating between
the preservation or destruction of this knowledge and capability. A firm’s technological
capabilities could become obsolete while its market capabilities remain intact. Even if the
technological capabilities have been destroyed, a firm can use its market knowledge to take
advantage over a new entrant. From the combination between market knowledge and
technological capabilities four kinds of innovation arise: (a) Regular innovation when it
builds on the manufacturer’s existing technological capabilities and the market knowledge;
(b) Niche innovation if it preserves technological capabilities but market knowledge is
rendered obsolete; (c) Revolutionary innovation if it turns technological capabilities obsolete
but preserves market knowledge; (d) Architectural innovation if both technological and
market capabilities become obsolete

Henderson Clark model

https://innovationzen.com/blog/2006/08/11/innovation-management-theory-
part-3/

https://www.studocu.com/ca-es/document/universitat-autonoma-de-barcelona/
marketing-ii/henderson-clark-innovation-model/13095482

Disruptive technological change model:

https://hbr.org/2015/12/what-is-disruptive-innovation
Innovation Value Added chain:

https://hbr.org/2007/06/the-innovation-value-chain

Familiarity Matrix:

https://www.mbaknol.com/strategic-management/a-new-business-strategy-
familiarity-matrix/

Imitability & complementary assets:

https://innovationzen.com/blog/2006/08/24/innovation-management-theory-
part-5/

dynamic model: Abernathy model:

https://innovationzen.com/blog/2006/08/29/innovation-management-theory-
part-6/
Fifth part:

Innovation and creativity:

Creativity individual:

https://study.com/academy/lesson/benefits-of-individual-creativity-in-the-
workplace.html#:~:text=Individual%20creativity%20is%20the%20use,%2C
%20meetings%2C%20or%20collaborative%20projects.

Innovation and entrepreneurship:

https://digitalleadership.com/blog/the-innovation-entrepreneurship-relationship/

https://in.indeed.com/career-advice/career-development/innovative-
entrepreneurship

managing creative employees:

https://www.goco.io/blog/tips-for-managing-creative-people/

https://www.behavioralessentials.com/how-to-manage-highly-creative-employees/

https://innovationmanagement.se/2018/09/05/four-ways-to-manage-creative-
employees/

https://www.entrepreneur.com/growing-a-business/5-keys-to-successfully-
manage-creative-employees/242229

Sixth Part:

Design thinking:

https://www.wework.com/ideas/professional-development/creativity-culture/
what-is-design-thinking#:~:text=Design%20thinking%20is%20a
%20process,approach%20to%20creating%20innovative%20solutions.

Understand the 5-action phase of design thinking:

https://ideatoasters.com/ideation/key-elements-of-a-design-thinking-process/

https://careerfoundry.com/en/blog/ux-design/design-thinking-process/

https://www.interaction-design.org/literature/article/5-stages-in-the-design-
thinking-process
https://www.interaction-design.org/literature/topics/design-thinking

Seventh part:

Sustainability for competitive advantage:

https://onstrategyhq.com/resources/sustainable-competitive-advantages/
#:~:text=What%20are%20Sustainable%20Competitive%20Advantages,difficult
%20to%20duplicate%20or%20replicate.

https://www.stratechi.com/sustainable-competitive-advantage/

https://www.superheuristics.com/sustainable-competitive-advantage/

QUESTION BANK:

Q.1) What is Disruptive innovation? Illustrate with suitable example.

https://www.investopedia.com/terms/d/disruptive-innovation.asp

https://digitalleadership.com/blog/disruptive-innovation-examples/

Q.2) Outline the various sources of innovation.

https://www.notesmatic.com/sources-of-innovation/

https://www.linkedin.com/pulse/7-sources-innovation-thomas-slaughter/

Q.3) Explain out of Box approach.

https://www.fingerprintforsuccess.com/traits/out-of-the-box-thinking

Q.4) Discuss the various soft methods of innovation management.

https://www.studocu.com/in/document/university-of-kerala/innovation-
management/im-6-short-note/28491199

https://www.slideshare.net/chetan1410/mod-2-im

Q.5) "Innovation in technology contributes to the changes in society". Elucide

Q.6) Explain intellectual property of innovations with suitable examples.

https://www.wellsfargo.com/biz/wells-fargo-works/planning-operations/security-
fraud-protection/four-examples-of-intellectual-property/
https://en.wikipedia.org/wiki/Intellectual_property

https://www.investopedia.com/terms/i/intellectualproperty.asp

Q.7) "Innovation is the process of turning ideas into manufacturable and marketable
form". Interpret your answer.

https://www.acceptmission.com/blog/business-innovation-quotes/
#:~:text=Innovation%20is%20the%20process%20of,value%20for%20customers
%20and%20employees.

Q.8) Explain the various factors affecting the effectiveness of innovation.

Q.9) Summarize the characteristics of innovation organisation.

https://www.linkedin.com/pulse/5-key-characteristics-innovative-organizations-
from-oslo-ina-conrado/

https://innovationmanagement.se/2012/12/18/the-seven-essential-
characteristics-of-innovative-companies/

https://miller-klein.com/2020/06/15/what-are-the-characeristics-of-innovative-
companies/

Q.10) Distinguish between radical innovation and incremental innovation. Give

suitable examples to support your answer.

https://www.mbaknol.com/strategic-management/radical-innovation-vs-
incremental-innovation/

https://www.hackingculturalbeliefs.com/post/the-difference-between-incremental-
and-radical-innovation

http://www.1000ventures.com/business_guide/innovation_radical_vs_incr.html

https://qsstudy.com/compare-between-radical-innovation-and-incremental-
innovation/
Q.11) Discuss the organisational aspects of innovation.

https://www.mbaknol.com/modern-management-concepts/organizational-
innovation/#:~:text=Organizational%20Innovation%20is%20a
%20process,efficiency%2C%20and%20therefore%20growing%20business.

https://www.cmswire.com/social-business/6-factors-for-organizational-innovation/

Q.12) Explain the various creative approaches in innovation.

https://www.linkedin.com/pulse/seven-powerful-approaches-boost-innovation-
francisco-pestana/

Q.13) Invention and Innovation are two sides of the same coin of an idea'. Justify
your answer.

https://keydifferences.com/difference-between-invention-and-
innovation.html#:~:text=Key%20Differences%20Between%20Invention%20and
%20Innovation&text=The%20implementation%20of%20the%20idea,change%20in
%20the%20existing%20product.
Q.14) What is diffusion theory. Critically explain the role of each elements of
Diffusion.

https://www.investopedia.com/terms/d/diffusion-of-innovations-theory.asp

https://www.communicationtheory.org/diffusion-of-innovation-theory/

https://extensionaus.com.au/extension-practice/diffusion-of-innovations-theory-
adoption-and-diffusion/#:~:text=There%20are%20four%20main
%20interacting,members%20of%20a%20social%20system.

https://www.yourarticlelibrary.com/consumer-behaviour/diffusion-of-innovation/
top-4-elements-of-diffusion-with-diagram/64169

Q.15) In modern management process, innovation platforms have got tremendous

importance, explain contribute to innovation in organisations?

https://emeritus.org/in/learn/important-benefits-of-innovation-in-business/
#:~:text=It%20helps%20organizations%20differentiate%20themselves,as%20the
%20COVID%2D19%20pandemic.

https://www.northeastern.edu/graduate/blog/importance-of-innovation/

Q.16) Evaluate 'Push' and 'Pull' approaches of innovation with suitable examples.

https://www.thinkhorizonconsulting.com/post/push-and-pull-innovation

Q.17) Describe the role of individual and organisation to promote the innovative
culture. Evaluate your answer for soap manufacturing company.

https://www.indeed.com/career-advice/career-development/characteristics-of-
culture-of-innovation

Q.18) You are working with a company which is manufacturing TV Remote

controller, your competitor has made an attractive change in their similar remote
control, hence, your management has asked you to suggest some innovative change
in the existing product so that your company sales won't be affected. Choose the
appropriate change that can be done in your product and help your company to
make proper launch of the product.

https://www.wordstream.com/blog/ws/2020/07/29/how-to-promote-a-product

https://www.forbes.com/sites/forbesagencycouncil/2017/10/24/18-steps-to-
take-before-you-launch-a-product-or-service/?sh=1d1e295019cf

https://blog.hubspot.com/marketing/product-launch-checklist

Q.19) Suggest few innovative ideas for reducing traffic congestion in Delhi city
https://blog.getmyparking.com/2020/07/20/7-innovative-ideas-to-reduce-traffic-
congestion-with-smart-city-tech/#:~:text=The%20best%20way%20to%20tackle,by
%20civil%20law%20enforcement%20officers

Q.20) If there is no change in product a company is selling, customers switch to

another product, and hence, the innovation has got important role to play in every
organisation, Analyse the historic evolution of innovation considering Television
company of your choice.

Q.21) How will we define design thinking? Build a design thinking process for your
client who is facing problem due to delay in product delivery during summer season.

https://www.wework.com/ideas/professional-development/creativity-culture/
what-is-design-thinking#:~:text=Design%20thinking%20is%20a
%20process,approach%20to%20creating%20innovative%20solutions.

Understand the 5-action phase of design thinking:

https://ideatoasters.com/ideation/key-elements-of-a-design-thinking-process/

https://careerfoundry.com/en/blog/ux-design/design-thinking-process/

https://www.interaction-design.org/literature/article/5-stages-in-the-design-
thinking-process

https://www.interaction-design.org/literature/topics/design-thinking

Q.22) There are five elements of design thinking process, create a prototype for face
wash of your company, your main area of improvement is making it easy to carry in
very small quantity.

https://www.interaction-design.org/literature/article/5-stages-in-the-design-
thinking-process

Q.23) Explain the four types of innovation strategy.

https://www.business.qld.gov.au/running-business/growing-business/becoming-
innovative/strategy/types#:~:text=Innovation%20strategies%20can%20be
%20classed,and%20passive%20(Dodgson%20et%20al.

https://innoverce365.com/types-of-innovation-strategies/

https://ca.indeed.com/career-advice/career-development/innovation-strategies