INNOVATION

Innovation is the process of creating and implementing a new idea. 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

AS CREATIVITY IS THE GENERATION OF NEW IDEAS
INNOVATION IS:

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

VALUE ADD

SOPHISTICATION

There are three stages of innovation event ,process and capability, with value
addition and sophistication being on the x axis and y axis.

Knowledge Management

Idea Management Realization Process

Event

Innovationn

Competitive Advantage
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.Organisations-

whether 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.