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It is not the same as change but they are closely related. Change often involves new ideas of some sort. The New idea may be the creation of a new product or process, or it can also be an idea Which can change completely the way business is conducted .Successful organizations understand that both innovation and change are required to satisfy their most important stakeholders. A dynamic changing environment makes innovation and change more important for an established organization than a new organization.Succesful organizations can’t rest on their prior success because if they become complacent competitors are sure to woo Customer’s away.Organisation decline and extinction may follow sooner or later.Innovation and change is an essential part of a managers competence Innovation may be divided into these types: Technical Innovation – This includes creation of new, research and Development techniques for customers seeking goods/services. Process Innovation – This includes producing, selling, introducing stock, trading, Distributing existing goods etc. Administrative Innovation- Here computers use networks and virtual organizations Convergence of fames- E-business, Even in the absence of new products innovation can still occurs. Innovation is; SUCCESSFUL EXPLOITATION OF NEW IDEAS - Under this fresh ideas are further brain stormed to get to some results SUCCESSFUL EXPLOITATION OF NEW IDEAS CVITAL INGREDIENT- This is the most important ingredient used in all the organizations and in all the fields. CESSFUL EXPLOITATION OF NEW IDEAS INNOVATION IS:
AS CREATIVITY IS THE GENERATION OF NEW IDEAS
TRANSLATION OF NEW IDEAS INTO A NEW CO. INTO A NEW PRODUCT INTO A NEW SERVICE
INTO A NEW PROCESS INTO A NEW METHOD
Innovation, like many business functions, is a management process that requires specific tools, rules and discipline - it is not mysterious. Innovation requires measurement and incentives to deliver sustained, high yields. Companies can use innovation to redefine an industry by employing combinations of business model innovation and technology innovation. Architecture for Innovation Learning Orientation • These identify and solve problems. • • Managers discuss failures etc with employers. Small- scale experiments are conducted to resolve emerging problems.
Resilient Workforce • • They are trained. They resist change
Support for Innovation • • • Rewards and recognition is achieved. Key measures are monitored. Can be formal or informal.
ORGANIZING FOR INNOVATION; HOW TO STRUCTURE A COMPANY FOR INNOVATION ORGANIZING for innovation continues to be a challenge for many companies. It is not enough to craft a strategy or to build innovation processes, one needs to build and embed innovation into the overall organization. Successful innovation requires choosing, building and preparing the right people for executing and scaling the innovation. Many large firms have struggled and, by their own description failed in the attempt to integrate innovation into their organization.Organisational antibodies are released that kill off innovations and often the structures, resources and processes responsible for the innovation. Because of this, some believe that it is not
possible or atleast much harder to innovate successfully within the structure of a large, established organization. Therefore one has to do the following; Developing an internal marketplace for innovation. Balancing Creativity and Value creation Outsourcing Innovation Making Good use of one’s partners Integrating Innovation within the Organization In the end one has to understand that no single structure is appropriate for all types of innovation. The organizational structure needs to vary based on the innovation strategies and the characteristics of the portfolio. But for an organization to innovate successfully, it needs to foster a balance of creativity and value capture. Maintaining that balance requires support from metrics and rewards, and also has cultural components. However, the organization is at the core of the internal marketplace that provides for balanced creativity and value capture. Organizational structure influences every aspect of how innovation occurs. It is a major part of the how variable in the equation. How u innovate = What you innovate INNOVATION is used for by these people in an organization: FOR BUSINESS FOR EMPLOYEES FOR CONSUMERS
STAGES OF INNOVATION
There are three stages of innovation event ,process and capability, with value addition and sophistication being on the x axis and y axis.
NETWORKING AS AN INNOVATION E.g.: AMWAY –this was a different kind of an organization when it was formed. Here the customer was also the seller. Buying a product from Amway would benefit both the buyer as well as the seller thus multiple chains of customers were formed.Purchasing the product was only a method to start one’s own business. There was no compulsion of going to an office as this networking could be conducted from one’s own house itself. HLL - PROJECT SANGAM- this is a latest form of networking innovation in organization,where one can order products by merely dialing a number A get the products delivered at home free of cost with additional free products also Here again one customer as to give references about other customers and they can gain rewards in the form of free products, whereas the organization can gain a customer database. COMPETITIVE ADVANTAGES : DIRECT SELLING C2C WIN - WIN SITUATION
VIRTUAL ORGANISATION OVERCOMES BOUNDRY BARRIERS OVERCOMES BOUNDRY BARRIERS FLAT ORGANIZATION INTELLECTUAL FLA T ONIZATION INTELLECTUAL Eg. Electromagnetic Car Seat Release
Convergence of many types of innovation Can fundamentals change the basics of competition within an industry? The Opportunities for value/wealth will be beyond the box not in the hardware of the Computer but in related gadgets and services to which the company provides access.
SEVEN RULES OF INNOVATION
Exert strong leadership defining the innovation strategy and designing innovation portfolios and encourage truly significant value creation. Match innovation to the company business strategy including selection of the innovation strategy. Make innovation an integral part of the company’s business mentality, and ensure that the processes and organization support culture of innovation. Balance creativity and value capture so that the company generates successful new ideas and gets the maximum return on its investment. Neutralize organizational antibodies that kill off good ideas because they are different from the norm Create innovation networks inside and outside the organization;networks,not individuals, are the basic organizational building blocks of innovation. Implement the correct metrics and incentives to make innovation manageable and to produce the right behavior; many organizations have disincentives or poor incentives to elicit the appropriate innovation behavior.
• • •
CONCLUSION V2MOM MEHOD Vision- What do u want? Values-What’s important about it? Methods-How do u get it? Obstacles-What is preventing you from getting it? Measures-How will you know when you got it?
Innovation is; RELEVANT FOR ALL SECTORS- innovation is necessary for all sectors of an organization.Without innovation the organizations will not grow. COPING WITH THE CHANGE-innovation always teaches to cope with change because without change, only stagnancy exists.In order to retain one’s customers every organization has to cope with change In today’s economies, core competencies have short lifecycles.Organisationswhether pursuing profits or investing in nonprofit objectives-cannot expect to survive
without innovation, their fate is determined; the only question is whether the end will happen suddenly because a competitor comes up with a radical innovation or if it will happen as they slowly fall behind competitors that are constantly pushing the envelope. By embracing innovation, companies can define their industries, create new ones and achieve leadership position that dictates the rules of the game in their favor. Innovation is not reserved to a few companies, nor does it depend on magic formulas available only to a few initiated. It is about good management. How your organization innovates determines what it will innovate. In the end each company’s innovation process is unique. What a company produces in the way of innovations, business growth and industry leadership will be determined by how the various pieces are arranged and how well they work together. There is no silver bullet for innovation, no formula or structure for innovation that will work for every organization. The seven innovation rules provide the basis for executing improved innovation that creates value and growth.
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