aspects of organizational

Innovation and change are important tightly integrated

the company, consisting
development] Change involves activeshaping the future of objectives and resources
of developing and maintaining the relationship between the
not be possible without
and the needs of the market. This development would products and services.
innovation and R&Dactivities to create new competitive
in technology,
Every innovation implies some change in the company: change etc. Disruptive
techniques,
processes, people, competencies, skills,management or restructuring
innovation requires disruptive change in the form of re-engineering
environment or internal
in the
of whole company to adapt do new circumstances
processes.
producing benefit
An innovation must not bea routine change, it have to aimed at
to the organization and the wider society.
change to
"An innovation must be public in its effects. If an individual introduces a
his or her work which has no discernible impact on,or implications for, other people
in the organization, it would not be considered an innovation" ,
organizational
It's hard to identify innovation as a separate area within
The
change research but it's harder still to characterize the of organizational change.
term 'change' is so wide that it may be taken to embrace nearly every topic .
Changes and innovation in organization
Many scientists have try explain how and why organizations change and innovate.
Change is at the heart of such important organizational occurrence as:

organizational strategy making

teamwork,
individual careers,
the growth and decline of industries.
"To understand organizational change is to understand organizations as we
experience them, and to explain organizational change is to articulate what makes
organizations what they are and to suggest how we may shape and re- shape them"l!,
Innovation is an valid partner to change. Innovation is the source of social and
economic progress and a product and a facilitator of the free exchange of ideas. It
is shown in:
alwns SC4.
new products
hydamnis

bart fnance
 new production processes,
advances icommunications technology,
sectors
new organizations and services n the public and nonprofit
Change can take a lot of many forms, it may be:

planned or unplanned,
incremental or radical,
recurrent or unprecedented.
These
Inover time we can be observed tendency in process or sequence of changes.
trends can be speed up or decelerating in time, and they may move toward
equilibrium, chaos, or randomness in the behavior of the organizational entity being
examined. Concept of organization change involves three areas:
difference
at different temporal moments
between states of an organizational unit or system
"organizational change generally indicates a macro-level approach, which is more
concerned with the organization as a whole and its major subsystems than with the
experiences of small work groups and individuals. Similarly, the focus is very much
on large-scale changes, whereas innovation research sometimes concerns itself
with changes which are quite localized in their impact within an organization"".

Examples of Innovation and change

New Product Development: Companies often focus on developing new
products or services to meet the changing needs of their customers. This
can include the introduction of new technology or the development of new
processes to increase efficiency. For example, Apple's introduction of the
iPhone was a revolutionary product that changed the way people interacted
with their phones.
Process Improvement & Automation: Process improvement and
automation can also be a form of organizationalchange. Thiscan include
streamlining existing processes to reduce waste and improve efficiency.
Automation can also be used to automate manual processes to reduce costs
and improve productivity. For example, Amazon's use of robots to
 process
automate the picking process in its warehouses is an example of
improvement and automation.
organizational
Culture Change: Culture change is another form of behave in
change. This involves changing the way people think andexpectations
the workplace. It can involve creating anew set of values and
procedures. For
for employees, as well as introducing new policies and
example, Google's focus on creating a learning culture and encouraging
collaboration between teams is an example of culture change.
Digital Transformation: Digital transformation is an important form of
innovation and change. This involves introducing new technologies to
improve the way an organization operates. For example, Microsoft's use
of cloud computing and machine learning to automate tasks and increase
efficiency isan example of digital transformation.
Advantagesof Innovation and change
The following are some of the key benefits of innovation and change.

Increased Efficiency: Innovation and change can help organizations

increase the efficiency of their operations by introducing new processes
and systems that streamline and automate tasks, thereby reducing their
time and cost.
Improved Customer Service: Innovation and change can help
organizations provide better customer service by introducing new
products and services that meet customer needs and expectations.
Inereased Profits: By introducing new products and services to the
market, organizations can expand their customer base and increase their
profits.
Improved Employee Morale: By introducing new processes and systems
that make their jobs easier, innovation and change can help improve
employee morale.
Increased Innovation: Innovation and change can help organizations stay
ahead of the competition and remain competitive in the marketplace by
introducing new ideas and processes that are more efficient and effective.

Limitations of Innovation and change

Innovation and change are important aspects of organizational development,
however they come with certain limitations, These include:
 The cost of implementing new ideas and changes may be high and the rate
of return uncertain, meaning that the company must carefully consider its
resources and the potential benefits.
Time constraints may limit the amount of research and development that
can be conducted, thus limiting the pace of innovation.
Change can be met with resistance from employees due to unfamiliarity
and fear of the unknown.
People may be reluctant to accept new ideas and there can be a lack
of knowledge or understanding.
Rigid organizational structures and cultures may limit the ability to
innovate and change.
Changes may cause disruptions to regular operations and processes,
leading to potential inefficiencies.
Changes may not be compatible with existing systems or technologies and
require costly investments to upgrade or implement.
Itmay be difficult to accurately measure the success or failure of changes.

Other approaches related to Innovation and change

Organizational development requires several approaches in order to effectively
innovate and bring about change. These approaches include:
Design Thinking: Design Thinking is an approach that uses creative
problem solving and an iterative process to develop innovative solutions
to complex business problems. It is focused on understanding the users
and their context in order to create products and services that are valuable
and desirable.
Lean Thinking: Lean Thinking is asystematic approach to problem
solving and improving processes. It is focused on minimizing waste,
eliminating non-value added activities, and creating a continuous flow of
value-added activities.
Agile Management: Agile Management is an approach
toproject management that emphasizes flexibility and adaptation to
changing requirements. It is focused on continuous improvement and
iterative development, with frequent feedback from stakeholders.
Kaizen: Kaizen is a Japanese philosophy that emphasizes continuous
improvement of processes and procedures. It is focused on small
incremental changes that lead to long-term success.
Innovation and change are important aspects of organizational development and
require a variety ofapproaches to successfully implement. These approaches include
Design Thinking. Lean Thinking, Agile Management, and Kaizen. Each approach
has a different focus and set of techniques, but allare aimed at improving processes,
eliminating waste, and creating value-added activities.
Innovation is the practical application of ideas that result in different new types of
new offerings, like products, services, processes, and business models, intending to
improve or disrupt existing applications or creating new solutions.
It doesn't matter if you are getting the ideas from outside the organization,
through brainstorming, combining of existing ideas. or radical new thinking within
your field. But it should be at the heart of your business and it should constantly be
done to ensure business survival.

Therefore we willexplain here the different fields where innovation can happen, 4
different types of innovation, and also how to best protect your ideas from being
copied or stolen.

Definition of innovation - What is innovation?

Innovation is theprocess of taking something that already exists and improving it,
whether it isa product, a service or even a process. It can be as simple as making a
small change or as complex as completely overhauling an entire system or creating
new marketing with a new product. But whatever form it takes, innovation always
involves creativity and risk-taking. Innovation can be a key driver of economic
growth, and companies that can innovate systematically tend to be more successful
than those that do not.

Innovation often comes from individuals with an idea, but companies also invest
heavily in innovation and the creation of new products and services. Several key
factors contribute to a company's ability to innovate. One of the most important is
having a strong innovation culture. This means fostering a climate in which
employees feel encouraged to come up with new ideas and are rewarded for taking
risks. Another critical factor is having the right resources, such as R&D labs, design
teams, management support and funding. Finally, it is essential to have a clear
strategic vision that supports innovation and helps guide decision making.
Toinnovate successfully,companies must be able to identify opportunities and seize
them. This involves observing the market and understanding what customers want
 and need. It alsorequires anticipating trends and being willing to experiment with
new ideas.
Innovating and introducing innovations into the marketplace can be challenging, but
1t is alsO a beneficial process for companies. It can generate higher profits, faster
growth, secure acompetitive advantage. improve margins and sometimes even
world-changing discoveries.
Innovation is the specific function of entrepreneurship, whether in an existing
business, a publicservice institution, or a new venture started by a lone individual
in the family kitchen. It is the means by which the entrepreneur either creates new
wealth-producing resources or endows existing resources with enhanced potential
for creating wealth. Peter Drucker

8 Fields of Innovation

Innovation can be in different forms and outcomes.When we talk about innovation.

most peoplethink of new products while there is awide array of different innovation
outcomes possible. Here we list the most common

1. Product & Product Performance Innovation

Either a new product is developed or the performance of an existing product is

improved. This kind of innovation is very common in the business world.
2. Technology Innovation
New technologies can be also the basis for many other innovations. The best
example was the Internet, which was itself an innovation but also lead to other
innovations in various fields.

3. Business Model Innovation

Many of the most successful companies in the world managed to innovate their
business model. Using different channels, technologies and new markets can lead to
new possible business models which can create, deliver and capture customer
value. Digital ecosystems are a well-known example of innovation using several
technologies and creating a whole new type of business. Digital Business
models pose one of the biggest opportunities for innovation at the moment.
 4. Organizational Innovation
also be an innovation. This way
Managing and sharing resources in a new way can
its possible to use resources and assets in a completely new way.
5. Process Innovation
effectiveness of exXisting
Innovation in the processes can improve the efficiency or delivery, or customer
production,
methods. Possible process innovations involve
interaction.

6. Marketing / Sales - New Channel Innovation

customers. Either through the use
Newmethods to capture and hold attention from
of new channels for customer
of innovative marketing/sales concepts or the use
acquisition/sales.
7. Network Innovation
to create extra
By connecting different groups and stakeholders it might be possible services.
value. This type of innovation is very common due to the use of ICT
8. Customer Engagement /Retention
Innovative concepts that try to increase the engagement of customers and keep the
retentionup. The goal is to have innovative models to keep the customers locked
in" or engaged.

The 4 Types of Innovation

First,we need to understand that there are various ways that innovation can have an
impact on products, services, and processes. Most commonly we differentiate
between 4 levels of innovation depending if they open up new markets or when the
technology is changing.
The 4 different types of innovation are
1. Increnmental Innovation
Existing Technology, Existing Market
 One of the most common forms of innovation that we can observe. It uses existing
technologies within an existing market. The goal is to improve an existing oterns
by adding new features, changes in the design, etc.
Example
The best Example for incremental innovation can be seen in the Smartphone market
where the most innovation is only updating the hardware, improving the design, or
adding some additional features/cameras/sensors, etc.
2. Disruptive Innovation
New Technology, Existing Market
Disruptive innovation is mostly associated with applying new technologies,
processes, or disruptive business models to existing industries. Sometimes new
technologies and business models seem, especially in the beginning, inferior to the
existing solutions but after some iterations, they surpass the existing models and take
over the market due to efficiency and/or efficacy advantages.
Examples
Amazon used Internet-Technologies to disrupt the existing industry for book-shops.
They had the existing market for books but changed the way itwas sold, delivered
and experienceddue tothe use of disruptive technologies.Another example was the
iPhone, where existing technologies in the market (Phones with buttons, keypads,
etc.) were replaced with touch-interface-centered devices combined with intuitive
user interfaces.

3. Architectural Innovation

Existing Technology, New Market

Architectural innovation is something we see with tech giants like Amazon, Google,
and many more at the moment. They take their domain expertise, technology, and
skills and apply them to a different market. This way they can open up new markets
and expand their customer base.

Examples
Especially digital ecosystemorchestrators like Amazon and Alibaba use this
innovation strategy to enter new markets. They use existing expertise in building
 apps, platforms, and their existing customer base to offer new
for different markets. A recent example for this: services and products
medical care field. Amazon recently entered the

4. Radical Innovation
New Technology, New Market
Even it is the stereotypical way most people see innovation; it is the rarest form of
them all. Radical innovation involves the creation of technologies, services, and
business models that open up entirely new markets.
Example
The best example of radical innovation was the invention of the airplane. This radical
new technology opened up a new form of travel, invented an industry, and a whole
new market.

What are the 5 stages of corporate innovation?

To createa successful and sustainable innovation process, your company needs to

go through different stages of corporate innovation. This includes Idea Generation,
Evaluation, Testing and Experimentation, Development and Implementation, and
Optimization. Each stage is important for the overall success of your innovation
initiative.

1. Ideation & Idea generation

The process of generating new ideas and drafts. This stage is all about coming up
with new and innovative ways to improve your business, and services or products.
Some common mnethods for generating new ideas include brainstorming,customer
feedback, new technologies, changing economy or other sources for new ideas. No
matter how yougenerate them, it's important to have a steady flowof new ideas to
evaluate and move forward with.

2. Evaluation

Many companies skip the step of evaluating their ideas and this can be costly.
Without taking the time to properly evaluate an idea, you may end up investing in a
project that is not feasible or profitable. It's important to take the time to assess each
 idea before moving forward with it, so you can make sure you are
investing in
projects that have the greatest potential for success.

tenng Experimentingand MVp M Yr la n

The process of testing an idea to see if it works in practice. This stage involves
prototype development, market testing, and user feedback. However, it's important
tofirst start with small-scale MVPs to reduce the risk of investing in a project that
is not feasible or profitable. MVPs are a great way to test an idea without spending
toomuch time or money on development.

4. Development and Implementation

A successful test can give you good first feedback that can help you create a plan
and then execute the full-scale development of the innovation. After a successful
test, it's important totake that feedback and use it to build out a development plan.
This plan should include all the steps necessary for bringing the innovation to
market. Once the plan is in place, it's time to execute that plan and bring the
innovation to life.This also involves Marketing, Sales, and Support.
5. Optimization & Scaling
After the innovation has been launched, it'simportant to track the performance and
optimize where necessary. This stage is all about making sure the innovation is
successful and sustainable in the long term. It involves continual tracking, analysis.
and improvement. Once the innovation is established and performing well, it's time
to scale it up and bring it to more customers.

How toencourage innovation in your business

Innovation is sometimes a key critical area for the survival of many businesses and
industries. But encouraging your employees to come up with new ideas can be
sometimes stressful.

Here are some tips on how to get more innovation going:

Actively encourage your employees

Ask customers for feedback/invite customers for
feedback rounds
Ask stakeholders for feedback
 Invest in your employee's education
Actively reserve resources for Research and Development (R&D)
Build a reward system for innovative thinking
Collaborate with start-ups and innovative companies
Build an intrapreneurship program
Do active research on the internet (follow industry news, tech news, etc.)
Ask /interview experts
Innovation is a calculated risk that needs to be addressed. Not all projects will be
successtful, and the company's process needs to be managed to filter out potential
fails before they have a too big impact on your innovation budget. Try to streaml1ne
the process and maybe create your own innovation program which covers some of
the points mentioned above. This way you can manage it better and get a better
overvievw.

Measuring innovation: A complex challenge

Measuring innovation is a complex task that many organizations find difficult, or it
ensures that innovation is prevented. While some aspects of innovation are
and easy to quantify, such as the number of new tangible
patents or revenue from new
products, the actual aspects that make up innovation are difficult to capture. These
include, for example, cultural changes, the expansion of knowledge, the path
more innovation," or the increase in overall creative to
the company. problem-solving skills within
Important to understand: Innovation is not a
iterative process with many detours and dead ends. straightforward process, but an
It sometimes involves countless
experiments, learning from failures, and the gradual refinement and adaptation of
ideas. Since innovation is not measurable in this
a KPI for it. respect, it becomes difficult to set

Therefore, setting rigid KPIs or measures of success for

many companies. These rigid KPls can lead to a focus innovation is a problemn for
"flagship innovations" rather than long-term change andon short-term results and
Such innovation KPIs can also discourage fundamental innovation.
risk-taking and encourage employees to
"play it safe" to achieve their goals.But mismeasurement of innovation can, more
importantly, nip in the bud the creativity that drives innovation.
Innovation is like a muscle
Innovation can be compared to a muscle that nceds to be developed over time. It is
an investment in the future that may not alwayspay off immediately or take longer.
A culture of innovation does not develop overnight, but through constant practice,
learning and repetition.Companies need to recognize that only the measurability of
the conditions in which innovation can thrive should be considered, which often
requires rethinking traditional approaches to planning. goal setting
measurement. For example, it is better to measure how much is invested, how many
projects are planned in advance, how many insights are shared, what percentage of
ideas become prototypes, what percentage become pilots, or other methods of
evaluating innovation.

The importance of failure in innovation

No one wants to lose money and celebrate it. But embracing failure is an important
part of innovation. Nocompany seeks failure for its own sake, but it is important to
recognize that every failure offers valuable lessons for future efforts. In the words
of Thomas Edison, "I have not failed. I have only found 10,000 ways that have not
worked." And Edison's light bulb was not a one-time stroke of genius that could
simply be planned, but the result of constant experimentation and learning from
mistakes until it finally worked. If a KPI had been set, it would have been ready after
100 experiments.
However, it is not enough to allow failures. The company must develop a culture
that not onlytolerates failure, but actively encourages it. This includes
ensuring that
failure is no longer perceived as a setback but as an opportunity to learn. It is also
about creating an environment in which employees feel safe to take risks and make
mistakes.
In addition, every failure, every experiment, and every learning must be
and made accessible. It's not enough to simply fail; you also have to documented
This means that it must be actively managed, that the learn from it.
lessons learned must be recorded. This can prevent the samehypotheses tested and the
again and accelerate the learning process. failures from happening
 organization
Over time, if knowledge management works well, it can help theimplementing
become more capable of developing ideas, experimenting, and mnethods and
innovations. This learning culture, combined with the right tools,
up ror Iong
it
processes, can increase the organization's abilityto innovate and set
term success that can become acompetitive advantage.
Protection of innovations
tocus here on
Inere are many ways in which you can protect your innovation. We
the
the 2 major protection methods which are either "legal protection" or being
market leader due to a first-mover advantage".
1. Legal Protection
Depending on the type of innovation, it might be useful to patent your invention to
monetize it and protect it from others. There also needs to be an understanding of
the cost of patent protection. While the initial cost might not be as high, it can be
that the legalcosts to enforce possible patent infringements can skyrocket and make
it harder for smaller companies to get their right.

It is also important to understand that not everything can be protected and patented.
While products, processes, and technologies are usually easier to be
protected'patented, it's harder/impossible to protect software or business models.
2. First-Mover Advantage

Especially software companies make use of the first-mover advantage. A company

that has a new process, new business model, or new product tries
to get as much
market share as possible while the competition is stilldeveloping its
headstart gives the first-mover the advantage of offering. This
product. This way it's possible to grab a marketincrementally improving the
share and offer a better
product/service faster than others.
Benjamin Talin
Benjamin Talin, a serial entrepreneur since the age of
of MoreThan Digital, a global 13, is the founder and CEO
initiative providing access to topics of the future. As
influential keynotespeaker, he shares an
and has advised governments, EU insights on innovation, leadership, and
commissions, and ministries on education,
economic development, and digitalization. entrepreneurship,
and numerous awards, Benjamin is With over 400 publications, 200 innovation,
to changing the status quo international keynotes,
innovation. #bethechange Stay tuneddedicated
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