informatie pentru management of innovative processes. japan and chinadoc

8/17/2019 Informatie Pentru Management of Innovative Processes. Japan and Chinadoc

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CAPITOLUL 1 Despre managementul si procesele inovationale in general

1.1. Innovation as process. Overview.

Organizations have always been compelled to evolve in order to survive environmentalchanges. In the beginning, innovation has been associated to the capacity of survival and

leadership in the context of troubled markets. This vital interest has generated, throughoutthe 1th and !"th centuries, a constant influx of contributions which would bring clarity andcomplexity to said sub#ect.

$tilized under numerous acceptations, the term %innovation& conveys multipledimensions which render comprehension and definition rather problematical. 'rom onestandpoint, the concept (ualifies a result, an offer of product and)or service, and a changein productive, administrative or any other processes. 'rom another perspective, innovationrefers to multiple research fields relevant to the company*s strategic, marketing ormanagerial domains.

Innovation is defined as the development and implementation of new ideas by people

who over time engage in transactions with others within an institutional order. Thisdefinition focuses on four basic factors +new ideas, people, transactions, and institutionalcontext. -n understanding of how these factors are related leads to four basic problems confronting most general managers +1 a human problem of managing attention, +! a

process problem in managing new ideas into good currency, +/ a structural problem ofmanaging part0whole relationships, and + a strategic problem of institutional leadership.

Through multiple debates and insightful observation have emerged three approaches tothe innovative processes management. The first school, in chronological order, focuseson development management planed through a number of predefined steps. 2ominant untilthe 34"s, its main focus is the reduction of the likelihood of launch failures.

The eight steps of Innovation Process anagement5ublished by 6effrey 7aumgartner on 6une /", !"" in 7usiness innovation.http))noweurope.com)!"")"8)/")innovation0process)

9ith the growing popularity of innovation initiatives, ever more companies are launching

their own actions. :owever, many are going forward in a piecemeal fashion, running a brainstorming event here, trying out an ideas campaign there and promoting innovation invague ways in marketing communications. ;uch an approach works, somewhat, but it isnot ideal.

The best approach is to have a comprehensive innovation process management +I5


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popular idea, but an appallingly ineffective method for identifying the most potentiallyinnovative idea. I have also seen organisations put a great deal of effort into ideageneration, leaving the final decision to a manager who basically picks out her favouriteidea. -ssuming the manager has suitable business expertise, such an approach is betterthan voting @ as it is based on expertise rather than popularity @ but it is typically far from

perfect.

The scientific approach of peer review by expert, on the other hand, is ideally suited foridentifying the most promising ideas in a cycle. Instead of basing selection on popularity+can you imagine ?instein sending his special theory of relativity to the public for a vote inorder to determine its validityA or the whim of a manager, you apply a set of businesscriteria to the idea and rank how well the idea meets each criterion. If an idea achieves asufficiently high ranking, either as is or through additional modification, it should bedeveloped further.

B Testing and 2evelopmentIdeas identified as being potential innovations are now ready to be tested and developed.

:ere is where typical business tools come in useful. - business case is a useful means ofhypothetically implementing an innovative idea and pro#ecting the potential results. Ofcourse it is not perfect, but it indicates possible issues in the implementation of the idea, aswell as benefits that may not have been obvious to the original idea developers.

5rototypes are an excellent means for testing ideas. Cot only do they allow you, yourcolleagues, customers and others to see how an idea would actually look inimplementation, but building and playing with a prototype is a good method of furtherimproving upon the core idea. 5rototypes are, of course, ideally suited towards materialideas such as new products. 7ut more abstract ideas, such as new services, processimprovements and other concepts can often be prototyped through role0play, buildingstructural models and making diagrams.

8 ImplementationIdeas that make it through testing and development are ready to be implemented. $nlessthe idea is a radical change from your usual activities, you don*t need me to tell you how todo thisD

E >eviewOnce ideas have been implemented, they need to be reviewed, probably against an ongoingseries of milestones. If an implementation does not achieve a milestone, it needs to

modified or killed.


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groups need not be limited to employees of that business unit. Teams, departments andany other group can also run their own innovation process cycles.

ather they should

inspire and feed other cycles elsewhere in the organisation. 'or instance, theimplementation of a new product idea should inspire innovation cycles in the marketing,sales and customer service divisions as well as at the enterprise level.

esult a :ighly Innovative Organisation

7y applying innovation process management across your entire organisation, you cantransform it into one which is innovation driven. -nd that is a sure way to keep well ahead

of the competition, survive this financial crisis and make your firm a great place to work.

Continuous Change as a #orm

=ompanies, like any living organism, must become learning organizations that change andadapt to suit their changing environment. %If you donGt practice the change managementthat looks after the future, the future will not look after you,& says 7ill Hates. Thetendency for successful companies to fail to innovate is #ust that a tendency. If youGre toofocused on your current business, itGs hard to look ahead.%

Two Types of =hange

1. Organic, or continuous, change!. >adical, or discontinuous, change driven by radical innovation

Innovation anagement$ Two Approaches


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7ecause much of the innovation taking place today is incremental, so is its impact ongrowth. Fittle ventured, little gained. Other firms, after years of incremental innovation,suddenly throw millions or even billions of dollars at ideas that are poorly conceived,

poorly timed, and poorly executed, only to have near0catastrophic conse(uences.

There is practical value in understanding the patterns in and the differences betweenevolutionar! incremental innovation pro#ects and revolutionar! ra"ical innovation

pro#ects. This understanding can help you apply right management practices to differenttypes of innovation pro#ects and make the course of radical innovation shorter, lesssporadic, less expensive, and less uncertain.

:igh level of uncertainty is a hallmark a radical innovation pro#ects, especially at earlystages. The criteria used to evaluate a radical idea and concept should differ from thoseapplied to evaluating incremental innovations. Jiewing radical ideas 0 associated with highuncertainties 0 from the perspective of the mainstream business and applying traditionalevaluation methods and criteria to them is inappropriate and counterproductive.

?ither these methods give a false sense of security, or they lead to premature re#ection ofgood ideas. It is easier to say no or to re(uire more detailed information than to defend adecision to invest resources in the absence of hard data.2own the road, uncertainties influence the course of radical pro#ect development thatre(uires flexibility and creativity in resource and competency ac(uisition, whileincremental pro#ects follow more formal and predictable route.


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Incremental innovation pro%ects, due to low levels of uncertainties, are usually followthe orderly process

- potential marketable improvement to an existing product)service)process is (uickly

placed within a clearly defined, time0tested process designed to prove or disprove its valueto the company

The process has organizational sponsorship, funding, and the assignment of a developmentteam

2evelopment and commercialization are directed along a formal phase0gate process

&a"ical innovation pro%ects, due to high levels of uncertainties, cannot be described bythis orderly process. ?ven though the radical innovation life cycle includes many of the

same sets of activities and decision points, the reality of managing the process is strikinglydifferent for radical versus incremental innovation.1

Heneral characteristics of the radical innovation life cycle

long0term, highly uncertain and unpredictable

sporadic 0 starts and stops, dead ends and revivals

nonlinear 0 detours, recycling back through activities in response to discontinuities andsetbacks

stochastic 0 waxing and waning of interest and funding, key players come and go, prioritieschange

context dependent 0 corporate culture, history, personalities, informal relations, andexperience all create a mix of accelerating and retarding factors.

Incremental versus &a"ical Innovation

Incremental >adical

?mphasis =ost or feature

improvements in existing products, services, or processes

2evelopment of new

businesses, products and)or processes that transform theeconomies of a business

Technology ?xploitation of existingtechnology

?xploration of newtechnology

5rototyping Ironing out wrinkles nearthe end of the design phase

Teaching the market aboutthe new technology andlearning from the marketshow valuable thattechnology is in thatapplication arena

Tra#ectory Finear and continuous ;poradic and discontinuous7usiness =ase

2etailed plan can be7usiness model and planevolves through discovery0


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developed at the beginningof the process

based learning

Idea Heneration KOpportunity >ecognition

Occur at the front endLcritical events are largelyanticipated

Occur sporadicallythroughout the life cycle,often in response todiscontinuities in the pro#ect

tra#ectoryMey 5layers 'ormal cross0functional

teams=ross0functional individuals,informal networks

5rocess 'ormal, phase0gate model Informal, flexible model atearly stages due to highuncertainties N formal atlater stages afteruncertainties have beenreduced

Organizational ;tructures =ross0functional pro#ectteam operates within a

business unit

5ro#ect starts in >K2 Nmigrates into an incubating

organization N transitionsinto a goal0driven pro#ectorganization

>esources and competencies ;tandard resourceallocationL the team has allcompetencies re(uired tocomplete the process

=reative ac(uisition ofcompetencies and resourcesfrom a variety of internaland external sources

Operating $nit Involvement 'ormal involvement fromthe very beginning

Informal at early stages Nformal at later stages

#ew '!stemic Approach to Innovation

$ntil recently innovation has been seen principally as the means to turn research resultsinto commercially successful products, but not all research leads to innovation and not allinnovation is research0based. =ertainly research is a ma#or contributor to innovation,generating a flow of technical ideas and continually renewing the pool of technical skills.It should be a vital ingredient in your enterprise strategy, particularly over long term, if youare to maintain a stream of competitive products on the market.

Important though research is as the source of invention, innovation encompasses more than

the successful application of research results. Innovation can also stem from adopting newtechnologies or processes from other fields, or from new ways of doing business, or fromnew ways of marketing products and services. The evolution of the innovation concept @from the linear model having >K2 as the starting point to the systemic model in whichinnovation arises from complex interactions between individuals, organizations and theiroperating environments @ demonstrates that your innovation policies and practices mustextend their focus beyond the link with research.

(ar" vs. 'oft Innovation

:ard Innovation is organized >K2 characterized by strategic investment in innovation, be

it high0risk0high0return radical innovation or low0risk0low0return incremental innovation.


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The framework consists of a cohesive set of practices that inspire imaginative teams tolook beyond the obvious, explore a broad range of possibilities, identify significantopportunities, make informed decisions about the most promising paths to pursue, create ashared vision for growth, define pragmatic action plans that %bridge from the future back to

the present& and align the organization around the re(uirements for success.

;trategic Innovation takes the road less traveled @ it challenges an organization to look beyond its established business boundaries and mental models and to participate in anopen0minded, creative exploration of the realm of possibilities.

;ome organizations may feel that seeking breakthroughs is too grandiose a goal, and thatthey would be content with %simply growing the business&. ?xperience shows, however,that focusing on the short0term typically yields only short0term results @ while teamsaspiring to seek significant breakthroughs will both identify %big ideas& and also generatecloser0in, incremental ideas.

;trategic Innovation is not characterized by mundane, incremental product extensions, the%me0too& business models of close followers, or band0aids for inefficient processes. It doesnot consist of simple %facilitated creativity sessions and brainstorming new ideas&. It is not

based on the linear principles of traditional strategic planning which extrapolate the past inan attempt to predict the future.

It does not result in %pure blue sky&. Instead, it spans a #ourney of in(uiry and activity @from creative inspiration at the ambiguous %fuzzy front end& through the detailedre(uirements of successful execution that lead to business impact.

;trategic Innovation calls for a holistic approach that operates on multiple levels. 'irst, it blends non0traditional and traditional approaches to business strategy, deploying the practices of %Industry 'oresight&, %=onsumer)=ustomer Insight& and %;trategic-lignment& as a foundation, and supplementing them with conventional consultingmodels. ;econd, it combines two seemingly paradoxical mindsets expansive, visionarythinking that imaginatively explores long0term possibilitiesL and pragmatic, down0to0earthimplementation activities that lead to short0term, measurable business impact.

Tra"itional 'trateg! versus 'trategic Innovation

Traditional approaches ;trategic Innovation approach

-dopt a present to future orientation @takes today as a starting point

;tarts with the end in mind @ identifieslong0term opportunities and then bridges

back to the present

-ssumes a rule0maker)taker+defensive)follower posture

-ssumes a rule0breaker +revolutionary posture

-ccepts established business boundaries ) product categories

;eeks to create new competitive space ) playing fields

'ocus on incremental innovation ;eeks breakthrough, disruptive innovation @

while continuing to build the core'ollow traditional, linear business planningmodels


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;eek input from obvious, traditional sources ;eeks inspiration from unconventionalsources

;eek articulated customer needs ;eeks unarticulated customer needs

-re technology0driven +seek consumersatisfaction

Is consumer0inspired +seeks consumerdelight

I=countries, 7razil and >ussia, remain unchanged.

Innovation efcienc!

Cot all countries use their innovation inputs with e(ual efPciency. - comparison of acountry*s rank on its innovation performance with its ranking on direct innovation inputscan provide an insight into its level of innovation efPciency. - large discrepancy in the tworankings suggests either a high level of efPciency +high innovation output relative to

inputs or a high degree of inefPciency if the direct inputs rank exceeds signiPcantly acountry*s ranking on innovation performance.6apan is highly efPcient it is top0ranked in innovation performance in !""0"4, but only11th in the index that measures the environmental factors that are conducive to innovation.6apanese innovators are therefore swimming upstream. 6apan is a resource0poor economywith a greying population that has long taken an %innovate or die& approach. The countryinvests heavily in >K2, and more of this >K2 is carried out by industry than in the $; or?$. The country has more scientiPc researchers per head than the $; and scores well interms of the standard of higher education. It has a large share of high0tech activities andscores high in Internet penetration. The economy has a high concentration of high0techcompanies, which tend to be more innovation0intensive. -nother feature is the symbiotic

relationship between these companies and webs of associated small and medium0sizedenterprises, which are under strong pressure to innovate.

,.,. Ten"encies. *orecast.

The main Pndings of Innovation Transforming the way business creates include


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7y contrast, a few developed countries are expected to record a decline in innovationinputs and performance. The $M has been hit exceptionally hard by the global crisis,which has hampered the country*s innovation environment.

Current an" *orecast Innovation In"e/

The rise an" rise of China

=hina is the biggest gainer among all economies, developed and emerging. Its innovation performance will improve by 11 and it will rise from Bth to 8th place between !""0"4and !""01/. India will move up four places, whereas the rankings for the two other 7>I=countries, 7razil and >ussia, remain unchanged.


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In fact, =hina*s ascent up the rankings is picking up pace. Two years ago, we forecast thatit would rise to Bth place in the !""E011 ranking. Instead, it has already climbed to this

position and is expected to #ump a further eight places over the next Pve years.One reason for the #ump is that =hina is making a concerted effort to build a moreinnovative economy. The country is investing heavily in >K2 and education, and itsinnovation environment is improving. -ccording to the O?=2, =hina*s >K2 spending+public and private reached $;R4Ebn in !""8. This is below the level of 6apan

+$;R1/bn and around one0third of that of the ?$ +$;R!/bn, but it is growing rapidly.In real terms, =hina*s >K2 spending grew by 1 per year in !""10"8, and >K2 as ashare of H25reached 1. in !""8. The government*s target is to reach ! by !"1". 7ased on its recent

progress,=hina will reach this targetSif not in !"1", then soon after.=hina now leads the world in the number of people engaged in science and technology.The countryaccounted for 8 of the number of scientiP c articles published worldwide in !""B, upfrom 1.8 in 1B,and it is ranked P fth globally. $niversity graduates with degrees in science and

engineering represent" of the total, almost twice the O?=2 average and far above the 1B recorded in the$;.


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negative impact on countries* long0term ability to innovate. 9hile developed countries willcontinue to top the list of innovators in the medium term, poor business conditions will saptheir innovation capacity. 7ut =hina and India are among the countries that will continue togain ground. Innovation at a global level is now expected to advance at a signiPcantlyslower pace over the next Pve years than was previously forecast. The current Pnancialturmoil will affect a variety of the innovation inputs that directly drive innovation. It is

likely to result in a reduction of investment in research and development +>K2, spendingon training and education, and the (uality of information and communications technology+I=T infrastructure. The economic crisis will also have a negative impact on certainaspects of the environment that enable innovationSaccess to Pnance for Prms, conditionsfor entrepreneurship, and economic and political stability.- signiPcant slowdown in the pace of innovation would harm the long0term prospects foreconomic growth around the world.

informatie pentru management of innovative processes. japan and chinadoc

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