• Change and innovation management

Dec 13, 2023 Change and Innovation Management 1

 Presentation Outlines

1. Introduction to Innovation
2. Definitions of Innovation
3. Types of Innovation
4. Rational Behind Innovation
5. Driving and Resisting Force of Innovation

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 1. Introduction to Innovation
• Innovation is a new approach of performance.
• The innovation comprises enormous content and fields.
• In production, the innovation includes engineering design,
engineering research, product development, production
technology, engineering construction, equipment maintenance,
product marketing and so on.
• In the ideological field, the innovation includes management,
ideas, artistic creation and so on.
• Since the innovation is involved in every field of social and
natural science and it is a multidisciplinary approach.
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 2. Definitions of Innovation
• Innovation is to make something new (Oxford English
Dictionary).
• Innovation is a process that turns new ideas into opportunities
and puts these into widely used practices (Tidd et al, 1997).
• Innovation is the technical design, manufacturing,
management and commercial activities involved in the
marketing of a new or improved product (Freedman, 1982).
• Innovation does not only concern itself with major advances in
technology or the commercialization of ideas but it also
concerns itself with the utilization of small scale changes
(Roth well and Gardiner, 1985).
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 2. Definitions of Innovation
• Innovation is the way that companies gain competitive
advantage by approaching the way they do thing in the
broadest sense and including new technology (Porter, 1990).
• Innovation is the successful exploitation of new ideas (UK
DTI Innovation Unit, 1994).
• Eventually, innovation is the creation, development and
introduction of new products/services components, or
procedure for doing things to benefit one or more of the
stakeholders in the organization.
• The product/service process need not be completely novel but
it must be new to the organization itself.
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 3. Types of Innovation
• Higgins (1996) suggests that there are four types of organizational
innovation.
• These are product, process, management and marketing innovation.
3.1. Product and Service Innovation
• The following features are characteristic of an organization that is
involved in developing new products and services.
A. Scanning for Ideas:
• Ideas are the starting point for innovation.
• An innovative organization encourages its employees to scan for
ideas for new products and services, both inside and outside.

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 3. Types of Innovation

B. Strategy Formulation:
• The innovative organization will be prepared to devote energy and
time to formulating strategy.
• The innovation of new services and products is an interactive
process which requires a delicate balance of structure and flexibility.
C. Effective Resourcing:
• The innovative organization will involve itself in correctly
resourcing changes to products and services.
• Research and development is seen to be an important part of the
future of the organization.

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 3. Types of Innovation
D. Managing Product Innovation:
• Managing product innovation involves managing the structure
and culture of the organization as well as managing external
linkages and the innovation process itself.
E. Implementation:
• The implementation of a new service or product is
accompanied by organizational acclaim in an innovative
company.

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 3. Types of Innovation
3.2. Process and Procedure Innovation
• The processes and procedures of an organization are the
support systems that enable the products and services to be
developed, produced and delivered to the customer.
• The following features are characteristics of an organization
which is innovating its processes and procedures.
1. Companies that are innovative have highly effective, non-
invasive monitoring systems.
2. Processes act as a firm base.
3. Process innovation is quite common in most modern
organizations
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 3. Types of Innovation
4. Employees in organizations that continually up-grade their
systems can suffer from a surfeit of change.
5. Clearly, process changes should be focused on supporting the
broader strategy of the organization, developing
competitiveness and giving sustainability.
6. Innovations which involve processes and procedures can have
both tangible and intangible outcomes and can be
predominantly hard or soft in nature.

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 3. Types of Innovation
3.3. Management Innovation
• The manager within an innovation environment has to
undertake the following functions and activities.
 They have to assist and facilitate the change that is
happening within the innovation process.
 This is done by giving both managerial and logistical
support as the situation demands.
 Each manager has to understand and appreciate the strategy
that is being followed.
 Managers have to encourage early involvement and
commitment to projects.
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 3. Types of Innovation
• Managers have to create and maintain an environment that is
both open and motivational.
• With closer working relationships comes a need for target
clarity and performance indicators that give measures against
which progress can be measured
• Successful managers of innovation are good leaders with a
persistent nature and a willingness to take risks.
• Managers take time to develop their subordinates and they
also seek opportunities for personal development.

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 3. Types of Innovation
3.4. Marketing and Distribution Innovation
• In its simplest terms, marketing and distribution concerns
bringing the product or service to the attention of the buyer.
• This Innovations in marketing and distribution break the
normal pattern not in a way which offends existing and
potential customers.
• We can recognize innovations because we realize the outcome
has been to change the relationship with customers.

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 4. Rational Behind Innovation
• Innovation is important to organizations in the different sector
because of the following reasons.
A. Competitive Pressure and the Need to Survive
• Research in the fields of organizational management and
marketing suggests that companies and organizations that use
the innovation process to differentiate their own products and
services from their competitors are twice as likely to be
successful both strategically and financially.
• Competitors often observe that innovative organisations
represent a threat to them out of all proportion to the size.
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 4. Rational Behind Innovation
B. The Impact of Innovation on the Organisation
• As with most complex relationships, innovation is more, ‘art
than science’ and outcomes tend to be both psychological and
materialistic in nature.
• In any particular case, the ‘outcomes mix’ varies according to
the nature of the innovation and the organisation undertaking it.
C. Outcomes from the Innovation Process
• Tangible outcomes are outcomes which are observable and
apparent.
• They include:
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 4. Rational Behind Innovation
 Increased corporate success in measurable
 Greater efficiency
 Happier, more flexible and more productive employees
 A more modern, high-tech working environment
 Continuous improvement
• Intangible outcomes tend to be psychological in nature, at the
level of beliefs and attitudes.
• They often outweigh the tangible outcomes and can include the
following: confidence development and risk taking of
managers, cohesion and collaboration of team works
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5. Driving and Restraining Forces of Innovation

5.1. Driving forces of Innovation

• Driving force is problem or opportunities that provide
motivation for change (Guotie Chen, 2017).
• According to the theory of technological innovation, the driving
force of innovation is the key to technological innovation.
• The driving force of innovation is divided into internal and
external driving forces.
• Internal driving force includes entrepreneurship, business
objectives and the nature of enterprise innovation.
• External driving force includes market competition, demand
pull, technology development and government intervention.
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5. Driving and Restraining Forces of Innovation

5.2. Restraining Forces of Innovation

Factors affecting innovation activities:
• Economic: excessive perceived risks; cost too high; lack of
appropriate sources of finance; and pay-off period of innovation
too long.
• Business: insufficient innovation potential (R&D, design);
shortage of skilled staff; lack of information on technology
and on markets; innovation expenditure hard to control;
resistance to change in the firm; deficiencies in the availability
of external services; and lack of opportunities for co-operation.
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5. Driving and Restraining Forces of Innovation

• Other reasons: lack of technological opportunity; lack of

infrastructure; no need to innovate due to earlier innovations;
weakness of property rights; legislation, norms, regulations,
standards, taxation; and customers unresponsive to new
technology.

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 References
1. Borut Likar (2013), Innovation management
2. Guotie Chen,(2017).Research on Innovation Driving Force and
Industrial Upgrading under Information Technology.
3. Joe Tidd and John Bessant (2009). Managing innovation.
4. Jon Bessant (2009), Innovaion
5. Freedman, 1982.This study examines the association between
pollution disclosures and pollution
6. Rothwell and Gardiner, 1985. Invention, innovation, re-
innovation and the role of the user: A case study of British
hovercraft development
7. Porter, 1990.What was the Enlightenment?
8. UK DTI Innovation Unit, 1994.Small firms, R&D, technology
and innovation in the UK: a literature review
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Thank You!