INNOVATION MANAGEMENT

Presented by, SHRUTHI.R.NAIR 2ND SEM MBA

CONTENTS

MEANING OF INNOVATION MEANING OF INNOVATION MANAGEMENT ESSENTIAL INGREDIENTS OF INNOVATION SOURCES OF INNOVATION TYPES OF INNOVATION MODELS OF INNOVATION ORGANISATIONAL SETUPS THAT FACILITATE INNOVATION INNOVATION PROCESS DIFFICULTIES OF SUCCESSFUL INNOVATION MANAGEMENT

MEANING OF INNOVATION

According to Stephen P Robbins, “Innovation is a new idea applied to initiating or improving a product, process or service”.

According to Peter Drucker, “Innovation is the means by which the entrepreneur either creates new wealth producing resources or endows existing resources with enhanced potential for creating wealth”.

MEANING OF INNOVATION MANAGEMENT

According to Harhoff, “Innovation management can be defined as the attempt to systematically shape and influence innovation processes in the company in such a way that the company obtains an optimal return from the creation and marketing of new products, services and processes”.

Innovation management is all about taking over and guiding the four key phases from initial idea through to product launch, combined with the lifecycle, in the company.

Phase 1: The idea is formulated, an analysis of the state of the art is conducted and the disadvantage of the current technical solution are apportioned, i.e., the process of developing a potential innovation gets under way.

Phase 2: The process of protecting the innovation begins with the preparation of a description of the problem solution and the filing of rights application.

Phase 3: Covers enforcement to defence and preservation.

Phase 4: Covers the implementation, launch and application of the innovation.

ESSENTIAL INGREDIENTS OF INNOVATION

Something New Better Than What Exists Economically ViableWidespread Appeal

SOURCES OF INNOVATION

Peter Drucker recommends entrepreneur to monitor 7 sources of innovation that offer entrepreneurial opportunity

Unexpected Success, Unexpected Failure, Unexpected Outside Event.

Incongruity in Reality. 1) Financial Performance. 2) Look for things that do not Harmonise. 3) Search for the mismatch between customer’s and beliefs

about their needs and wants.

Innovation based on process need. Changes in Industry and Market structure

that catch everyone Unawares Demographic Changes Changes in Perception, Mood and Meaning New knowledge.

TYPES OF INNOVATION

Product Innovation. Process Innovation. Paradigm Innovation. Radical Innovation. Systems Innovation. Incremental Innovation. Additive Innovation. Complementary Innovation. Technology Innovation.

MODELS OF INNOVATION

LINEAR MODEL Technology Push

User

MARKET Pull

User

Research and development

Manufacturing

Marketing

Marketing R&DManufacturin

g

SIMOUTANEOUS COUPLING MODEL Manufacturin

g

R&DMarketing

Interactive Model: This model develops this idea further and links together the technology-push market-pull models.

Technology Push.

Latest sciences and technology advances in

society

Idea R&D Manufacturing Marketing Commercial Product

Needs in society and the market place.

ORGANISATIONAL SETUPS THAT FACILITATE INNOVATION

Growth Orientation. Organisational Heritage and Innovation

Experience. Vigilance and External Links. Commitment to Technology and R&D Intensity. Acceptance of Risks Cross-Functional cooperation and coordination

within Organisational Structure. Receptivity. Space for Creativity. Diverse Range Of Skills.

INNOVATION PROCESS

DIFFICULTIES OF SUCCESSFUL IM

Innovations are not always Profitable. Rarely Instantaneous Innovation. Diffusion is Uneven. Limitations of patent protection. Resistance.