This action might not be possible to undo. Are you sure you want to continue?
Definition of Innovation
Introduction of a new product, service or process into the marketplace. Based on several other definitions we can deduce that Innovation=Invention + Commercial exploitation
Difference between Invention and Innovation
1. It¶s creation of new product, service or process.
It is the introduction of new product, service or process into the marketplace Results into commercialisation Usually induced
2. 3. 4. 5. 6. 7.
May not be commercialised It can be autonomous or induced Can be for economic or nonEconomic motive economic motive Usually restricted to R&D centre Spread across the organisation May bring few changes in organisation Proceeds innovation Brings organisational change Succeeds invention
Goals of Innovation Improving quality Creation of new markets Extension of the product range Reducing labor cost Improving production process Reducing materials Reducing environmental damage Replacement of products/services Reducing energy consumption Conformance to regulations .
Reasons for Innovation Incongruities in operations Changes in perception/needs of the customer Demographic changes Market changes Emergence of new scientific knowledge Industry requirements Desire to make more profit .
internal sales force etc. components. foreign manufacturers Suppliers of raw materials. parts etc. universities. . Others like research institutions.Sources/Ideas for Innovation Ideas for innovation can come from many sources ± Users or customers From competitors.
.Advantages of Innovation More sales through new products and new service Enhanced market competitiveness More profitability etc.
Risks associated with Innovation It may not be undertaken in the right direction based on technology forecasting. new services etc by the marketplace leading to losses It may displace existing products etc leading to some immediate decline in sales Employees may resist its implementation if it displaces existing products thus affecting their employment It may start a market war with competitors affecting profits . firm¶s technology objectives and strategy Substantial funds. efforts and time are required for implementing innovation There is risk of rejection of new products.
e.Characteristics of Innovation It can be applied to all i. for seeking profits There can be many sources of innovation It is broader than R&D Involves risk and uncertainty It is realised only when the first commercial transaction takes place .e. services and processes It leads to significant improvement/development It is different from invention Leads to organisational change which is inevitable It has an economic motive i. products.
Service or Process innovations Open and Closed innovations Incremental and Radical innovations Modular and Architectural innovations Generic and Epochal innovations .Types of Innovation Product.
INNOVATION PROCESS IT IS THE PROCESS WHICH FACILITATES INNOVATION AND INVOLVES SEARCH AND SELECTION. EXPLORATION AND SYNTHESIS. INNOVATION PROCESS NEEDS SUPPORT AT THREE LEVELS: NATIONAL LEVEL ENTERPRISE LEVEL INDIVIDUAL LEVEL . CYCLES OF DIVERGENT THINKING AND CONVERGENCE.
CONTD« NATIONAL LEVEL: INNOVATION DIRECTLY DEPENDS UPON THE THE NATIONAL GOVERNMENT¶S POLICIES AND SUPPORT ENTERPRISE LEVEL: INNOVATION DEPENDS UPON THE TOP MANAGEMNT¶S SUPPORT AND COMMITMENT INDIVIDUAL LEVEL: INNOVATION DEPENDS UPON THE ACTIONS AND MOTIVATION OF MULTIFUNCTIONAL TEAMS AND INDIVIDUALS INVOLVED IN THE PROCESS .
LINEAR MODEL OF INNOVATION (TRADITIONAL PHASE GATE MODEL) PRODUCT OR SERVICE IS FROZEN AT EARLY STAGE SO AS TO MINIMISE RISK IT INVOVLES SERIES OF SEQUENTIAL STEPS ARRANGED IN SUCH A MANNER THAT THE PRCEDING PHASE MUST BE CLEARED BEFORE MOVING TO NEXTPHASE CRITERIA FOR PASSING THROUGH EACH GATE.INNOVATION PROCESS AT ENTERPRISE LEVEL 1. AND THE PERSON AT EACH GATE ARE DEFINED BEFORE HAND .
RELIABILITY AND SAFETY REQUIREMENTS ARE CRITICAL IT IS SAFE AND SUITABLE FOR A FIRST TIME BEGINNER LIMITATIONS DELAYED EVALUATION.CONTD« THE MODELS WORKS ONLY WHEN: TIME REQUIRED TO INNOVATE IS SHORTER THAN RATE OF CHANGE IN ENVIRONMENT QUALITY. OR REJECTION OF GOOD PROJECTS TIME CONSUMING FOCUSSED ON CONTROL LONG REVIEW PREPARTION TIME RIGID FOCUS ON ATTAINING TARGET .
CONTD« TWO MODELS FOR UNDERSTANDING LINEAR INNOVATION PROCESS: a) TECHNOLOGY PUSH MODEL TECHNOLOGY IS REGARDED AS THE KEY DRIVER OF INNOVATION IT INVOLVES SERIES OF SEUENTIAL STEPS: FUNDAMENTAL RESEARCH APPLICATION RESEARCH DESIGN ENGINEERING MANUFACTURING MARKETING AND SALES EXAMPLE: MENU OPERATED COMPUTER SOFTWARE .
UPS. INVERTORS etc. USER NEEDS IN THE INNOVATION PROCESS IT INVOLVES OF SERIES OF SEQUENTIAL STEPS: ASSESSING CUSTOMER NEEDS CONCEPT/IDEA GENERATION REFINING IDEA TO MEET CONSUMER NEEDS DESIGN ENGINEERING MANUFACTURING TEST MARKETING SALES EXAMPLES: PHONES. .CONTD« b) MARKET PULL MODEL IT INCULDES AND INTEGRATES.
INNOVATION PROCESS FLEXIBLE MODEL COMBINATION OF LINEAR MODEL AND NON LINEAR APPROACHES HAS LEAD TO THE EMERGENCE OF THIRD GENERATION MODELS THESE MODELS INCLUDE TECHNOLOGY PUSH + MARKET PULL COMBINATION R&D + MARKETING CYCLICAL MODEL THE MODELS ATTEMPT TO EXPLAIN RADICAL INNOVATION PROCESS IN A RAPIDLY CHANGING ENVIRONMENT IN THESE MODELS PHASES ARE OVERLAPPED .CONTD« 2.
MANY ORGANISATIONS FOCUS ON NEW PRODUCT DEVELOPMENT AND ITS COMMERCIALISATION DURING INTIAL PERIOD. FOCUS SHIFTS TO ATTAINING PROCESS EFFCIENCIES THIS APPROACH IS SUITABLE WHEN THE RATE OF TECHNOLOGICAL CHANGE IS SLOW IN THIS APPROACH THE PRODUCT DESIGN PROCEEDS AT THE SAME TIME AS PROCESS DESIGN WITH CONTINUOUS INTERACTION BETWEEN TWO DEPARTMENTS .CONCURRENT ENGINEERING DURING INITIAL STAGES OF INNOVATION PROCESS. LESS/LITTLE EFFORTS ARE MADE DURING LATER STAGES.
FAILURES OF INNOVATION 1. INTERNAL CAUSES a) FAILURE IN THE CULTURAL INFRASTRUCTURE POOR LEADERSHIP POOR ORGANISATION POOR COMMUNICATION POOR EMPOWERMENT POOR KNOWLEDGE MANAGEMENT .
CONTD« b) FAILURE WITH IN THE INNOVATION PROCESS POOR GOAL DEFINITION POOR ALIGNMENT OF ACTIONS TO GOALS POOR PARTICIPATION IN TEAMS POOR MONITORING OF RESULTS POOR COMMUNICATION ACCESS TO TO INFORMATION .
CONTD« EXAMPLES OF INTERNAL CAUSES ARE: WHEN R&D EFFORTS ARE GUIDED BY MARKETING RESEARCH OR CUSTOMER REQUIREMENTS AND PREFERENCES WHEN R&D EFFORTS ARE NOT GUIDED BY MANUFACTURING CAPABILITIES AND SKILLS AND THERE IS NO CHANGE/IMPROVEMENT IN MANUFACTURING CAPABILITIES/SKILLS WHEN THERE IS NO CORRESPONDING CHANGE IN ORGANISATIONAL PROCESSES WHEN NEW PRODUCT LAUNCH IS NOT ACCOMPANIED BY CHANGE IN MARKETING STRATEGIES .
EXTERNAL CAUSES EXAMPLES ARE: MISMATCH BETWEEN PRICE CHARGED AND VALUE BENEFITS PERCEIVED BY CUSTOMER MERE IMITATION/COPY WITHOUT ANY INCREASE IN VALUE/UTILITY TO CUSTOMER COMPETITOR BRINGS IN DISRUPTIVE TECHNOLOGY/ INNOVATION GOVERNMENT REGULATIONS UNDERGO CHANGE ADVERSLY AFFECTING INNOVATION .CONTD« 2.
Innovative Organisation Emphasis on: Top management¶s commitment and support. Internal integrity. Effective communication. Capability /need to manage in the light of corporate restructuring and transient senior management. Multifunctional teams. High degree of flexibility in planning and control. . Supporting organisational culture and environment.
It means building the future through Technological excellence Technological leadership Innovation .Innovision It is long term orientation / approach of the nation or organisation towards innovation.
Nature and dynamics of innovision At macro (national) level. At micro (organisational ) level. .
Innovation Strategies Depends upon: Government support and policies. Organisational goals and policies. . Availability of funds. Degree of competition. Risk taking ability. Degree of technological changes. Age of the organisation.
. Innovation follower. Organisation can follow two types of strategies : Innovation leader.Types of Innovation Strategies.
High impact research.Change in innovation strategies From incremental to radical innovation strategic framing Scouting R&D. Rapid commercialisation. . Idea portfolio. Target selection Rapid product development.
Extended budgetary support. Use more controls. Carry out rigorous progress review.From radical to incremental innovation. . Install various gatekeepers at various stages.
Innovation Management .
Innovation management .
To manage large . . To reduce new product development time. To accomplish technology transfer.complex and interdisciplinary projects and systems.Need of Innovation Management To integrate technology into overall strategic objective of the organisation. To get into and out of the technologies faster and more efficiently.
Creation of high productive teams to increase productivity. . Strong integration of cross functional activities. Maximum participation of the concerned individuals.Essentials for proper management of innovation Failures and unsuitable ideas should be identified and screened out immediately.
Corporate restructuring and transient senior management. Respect for individual initiative and personal growth. Building a unified and committed multifunctional team. Top management µs commitment and support..Continued «. . Planning and control systems with high degree of flexibility.
market needs and business opportunities. Effective communication in the organisation. . The manager of the technology must be well trained and sensitive to the pattern of the technology change.Continued« Supporting organisational culture and environment.
Thank you ! .