Table of Contents

Contents Pages

1.0 Introduction 2

1.2 Organizational and Environmental Scanning Methods & Process. 4

1.3 Functional or Divisional Innovation Form. 6

1.4 Contribution from people in organization to assist in search of Innovation. 8

1.5 System that recognises and Communicate positive value related to innovation and creativity in the work place. 8

1.6 Innovation structure and network that provide differentiation in time and method from other part of the organization structure. 9

1.7 The processes of idea generation, feasibility study, technology, market assessment and project formulation that demonstrate the commitment of the organization to the management of innovation. 10

2.1 An innovation structure with clarity of goals and expectation, members, resources and support. 11

2.2 Innovation management roles are clarified and assignment to specified people. 14

2.3 Protection and support system for innovation projects. 15

2.4 The individual development planning process. 16

2.5 A system to provide advice and support to confirm joint commitment to innovation goals. 17

SUMMARY

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Innovation is about finding a better way of doing something. Innovation can be viewed as the application of better solutions that meet new requirements, in-articulated needs, or existing market needs. This is accomplished through more effective products, processes, services, technologies , or ideas that are readily available to markets, governments and society.

Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself.

Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better.

In Industrial Radiators Ltd we have used a method of Production Management as idea of innovation which can change fortunes of the company in the better prospects. Being a Manufacturing company the idea of Production Management of introduction of project management will require innovation at different levels of the company.

1.0 INTRODUCTION

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Industrial Radiator Ltd the Company is situated in Middleton, Christchurch New Zealand.

It was was founded in 2010. It can be considered as a small enterprise as there are eight

employees working the employment status (full/part time) of these eight employees.

The company is located in middle of the city and the company has only one office located

in Christchurch but provides its services all over the New Zealand.

Company is involved in the manufacturing, repair and rebuilt of radiator cores, inter-

coolers, oil coolers, condensers, etc. in a variety of metals like copper, brass, steel, etc. The

main customers of the company are from mining sector, heavy transport sector, railways,

agriculture etc.

Coming towards the working structure of the Company, Jimmy, being the sole proprietor,

is experience is responsible running the workshop, training the staff and dealing with

customers. Through his personal involvement, employees have developed a unique

understanding of technical expertise & product knowledge of various products designed by

the company.

A. Scope of Potential Innovation

Organisations need new ideas and ways of working to keep business fresh and competitive,

helping them to survive, especially in tough times. Harnessing people’s ability and

motivation to innovate from an early stage in their lifecycle in an organisation is a great

way fast-track their development – and to ensure your business doesn’t go stale. The

Innovation Potential Indicator allows you to select and develop key people and teams to

power innovation throughout your organization

Innovation Potential Indicator – key features

Looks at the innovation of new ideas, new processes and new products Measures five key areas: Motivation to Change, Challenging behavior, Adaptation,

Consistency of Work Styles, and Social Desirability When results are interpreted, leads to meaningful profile types such as Change

Agent, Consolidator and Catalyst Exhibits a proven robustness into how people use innovation in real organizations

from a variety of sectors Measures behaviors known to lead to, as well as inhibit, the realization of

innovative ideas.

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B. Opportunity for change in the work place

The Company has great opportunity for change in its workplace. Being a totally mechanical based Company. Production Management Can be implemented. In production management is essentially planning, organising and controlling of production function. Main Components of production function are product selection and design, process selection and planning, facility location, facilities layout and material handling, capacity planning, production planning and control, quality control, work study and job design and maintenance is done.

C. Form of Innovation

Production Management is a form of Organizational Structure. Organizational Structure of the production department is to be tailor made for a firm. In a typical organization, the main divisions of the organization are design, marketing, manufacturing, finance and personnel. Production constitutes a key department of the manufacturing division.

D. Linear Incremental Change Or Non Linear Breakthrough

Our Method is a Linear Incremental Change as we are not focusing on bringing a new system into our organization. We are bringing a change in the existing system which will revolutionise the entire system to an great extent.

Linear Incremental Change  versus Non Linear Breakthrough

Incremental Breakthrough

Emphasis Cost or feature improvements in existing products, services, or processes

Development of new businesses, products and/or processes that transform the economies of a business

Technology Exploitation of existing technology

Exploration of new technology

Prototyping Ironing out wrinkles near the end of the design phase

Teaching the market about the new technology and learning from the markets how valuable that technology is in that application arena

Trajectory Linear and continuous Sporadic and discontinuous

Business Case Detailed plan can be developed at the beginning of the process

Business model and plan evolves through discovery-based learning

Idea Generation & Opportunity

Occur at the front end; critical events are largely anticipated

Occur sporadically throughout the life cycle, often in response to discontinuities

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Recognition in the project trajectory

Key Players Formal cross-functional teams Cross-functional individuals, informal networks

Process Formal, phase-gate model Informal, flexible model at early stages due to high uncertainties  → formal at later stages after uncertainties have been reduced

Organizational Structures

Cross-functional project team operates within a business unit

Project starts in R&D → migrates into an incubating organization → transitions into a goal-driven project organization

Resources and competencies

Standard resource allocation; the team has all competencies required to complete the process

Creative acquisition of competencies and resources from a variety of internal and external sources

Operating Unit Involvement

Formal involvement from the very beginning

Informal at early stages  → formal at later stages

http://www.1000ventures.com/business_guide/innovation_radical_vs_incr.html

E. Innovation Form

Innovation in manufacturing companies like Industrial Radiators where work force is most important assets of the companies innovation in system of doing work can only bring change. Production Management is divisional innovation which involves changes at different levels. Main Components of production function are product selection and design, process selection and planning, facility location, facilities layout and material handling, capacity planning, production planning and control, quality control, work study and job design and maintenance is done.

1.2 Organizational and Environmental Scanning Methods

Environmental scanning is the acquisition and use of information about events, trends and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action. Organizations scan the environment in order to understand the external forces of change so that they may develop effective responses which secure or improve their position in the future. They scan in order to avoid surprises, identify threats and opportunities, gain competitive advantage, and improve long-term and short-term planning .To the extent that an organization's ability to adapt to its outside environment is dependent on knowing and interpreting the external changes that are taking place, environmental

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scanning constitutes a primary mode of organizational learning. Environmental scanning includes both looking at information (viewing) and looking for information (searching). It could range from a casual conversation at the lunch table or a chance observation of an angry customer, to a formal market research programme or a scenario planning exercise.

Scanning or browsing behaviour is influenced by external factors such as environmental turbulence and resource dependency, organizational factors such as the nature of the business and the strategy pursued, information factors such as the availability and quality of information, and personal factors such as the scanner's knowledge or cognitive style.

Situational dimensions: the effect of perceived environmental uncertainty. Managers who perceive the environment to be more uncertain will tend to scan more. Environmental uncertainty is indicated by the complexity, dynamism, and importance of the sectors comprising the external environment.

Organizational strategy and scanning strategy. An organization's overall strategy is related to the sophistication and scope of its scanning activities. Scanning must be able to provide the information and information processing needed to develop and pursue the elected strategy.

Managerial traits: unanswered questions. Little is known with confidence about the effect of the manager's job-related and cognitive traits on scanning. Upper-level managers seem to scan more than lower-level managers. Functional managers scan beyond the limits of their specializations.

Information needs: the focus of environmental scanning. Most studies look at scanning in various environmental sectors: customers, competitors, suppliers, technology; social, political, economic conditions. Business organizations focus their scanning on market-related sectors of the environment.

Information seeking: source usage and preferences. Although managers scan with a wide range of sources, they prefer personal sources to formal, impersonal sources, especially when seeking information about developments in the fluid, market-related sectors.

Information seeking: scanning methods. Organizations scan in a variety of modes, depending on the organization's size, dependence and perception of the environment, experience with scanning and planning, and the industry that the organization is in.

Information use: strategic planning and enhanced organizational learning. Information from scanning is increasingly being used to drive the strategic planning process. Research suggests that effective scanning and planning is linked to improved organizational learning and performance.

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http://www.informationr.net/ir/7-1/paper112.html

1.3 Functional or Divisional Innovation Form

Functional Structure A function is a group of people, working together, who possesses similar skills or uses the same knowledge, tools, or techniques to perform their jobs. A functional structure is a structure composed of all the departments that an organization requires to produce its goods or services.

The advantages to grouping jobs according to function are: When people who perform similar jobs are grouped together, they can learn from

observing one another. When people who perform similar jobs are grouped together, it is easier for

managers to monitor and evaluate their performance. The functional structure allows managers to create the set of functions they need

to scan and monitor the task and general environments.

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As an organization grows, the functional structure may become less efficient and effective for the following reasons:

Managers in different functions may find it more difficult to communicate and coordinate with one another.

Functional managers may become preoccupied with supervising their own specific departments that they lose sight of organizational goals.

Divisional Structures: Product, Market, and Geographic

As the problems associated with growth and diversification increase over time, managers of large organizations may choose a divisional structure and create a series of business units, each of which produces a specific kind of product for a specific kind of customer.

When managers organize divisions according to the type of good or service they provide, they adopt a product structure. When managers organize divisions according to the area of the world they operate in, they adopt a geographic structure. When managers organize divisions according to the types of customers they focus on, they adopt a market structure.

Product Structure - Using a product structure managers place each distinct product line in its own self-contained division and give divisional managers the responsibility for division business-level structure.Each division is self-contained because it has a complete set of all the functions that it needs to produce goods or services.

Advantages of using a product structure are: It allows functional managers to specialize in only one product area, so they build

expertise. Each division’s managers can become experts in their industry. It frees corporate managers from the need to supervise directly each division’s day-to-day

activities. The extra layer of management can improve the use of organizational resources. It puts divisional managers close to their customers and lets them respond quickly and

appropriately.

Geographic Structure - When organizations expand rapidly both at home and abroad, functional structures can create problems. In such cases, a geographic structure, in which divisions are broken down by geographical location, is often chosen. Managers are most likely to do this when customer needs vary widely by country or world region.

Market Structure - Sometimes managers group functions according to the type of customer buying the product, in order to tailor an organization’s products to each customer’s unique demands. A market structure (also called customer structure) is an organizational structure in which each kind of customer is served by a self-contained division. It allows managers to be responsive to the needs of customers and allows them to make decisions in response to customers’ changing needs.

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1.4 Contribution from people in organization to assist in search of Innovation

In order to flourish your companies culture must encourage and nurture ideas.

Develop Inspiring culture to make the employees feel free to express their ideas and encourage & provide friendly environment to express their ideas .

Empowerment of employees results in increased initiative, involvement enthusiasm, innovation and speed, all in support of the company's vision.The word empowerment means toauthorize, enable, and to permit .Defining and encouraging empowerment is the job of leadership. 

Communication is absolutely essential to give birth to a creative workplace in a mature, seasoned culture.  In fact creativity in communication is key to implementing a culture rebirth.  As we have mentioned, major changes in organizations often evokes resistance based on fear.

Intrinsic motivation highly correlates with increased creativity levels.  High-level encouragement toward innovation, immediate supervisor encouragement, autonomy and sense of control, optimal challenges, and tasks matched to interests all positively influence intrinsic motivation

1.5 System that recognises and Communicate positive value related to innovation and creativity in the work place and provides reorganization and reward commensurate with contribution.

In the new era of systemic innovation, innovation is not limited to new products and services. The organization structure itself is an integral part of the innovation process. Leading firms are constantly reorganizing to ensure that the organization conforms to the innovation and other task requirements, rather than the other way around.

One of the dangers divisions present to innovation is that they can create internal competition that thwarts cooperation and learning within the larger firm." To counterpart this tendency, successful companies apply various strategies such as:

Rewarding key executive on the company's overall performance. Establishing councils that operate across business units to force cooperation on

key innovations, customers, or markets. Using cross-divisional councils as platform for defining new technologies and

defining business strategy .

The Power of Passion

Establishing an attitude of relentless growth is what enables an organization and its people to achieve their goals. The spirit of relentless growth keeps fresh ideas flowing and reinvigorates your company.

Energizing Employees

What energizes people is the broader horizon, the excitement of new challenges and big opportunities. When their leaders offer this excitement, people come alive.

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The one-on-one relationships that individual workers have with their managers, and the trust, respect, and consideration that their managers show toward them on a daily basis are also at the core of an energized workforce. "Getting the best out of workers is above all a product of the "softer" side of management - how individuals are treated, inspired , and challenged to do their best work - and the support, resources, and guidance that is provided by managers to help make exceptional employee performance a reality.

Teams – the Heart of Innovation

In the new era of systemic innovation, it is more important for an organization to be cross-functionally excellent than functionally excellent. Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological developments with complementary expertise in other areas of their business, such as manufacturing, distribution, human resources, marketing, and customer relationships. To lead these expertise development efforts, cross-functional teams, either formal or informal, need to be formed. These teams can also find new businesses in white spaces between existing business units.

1.6 Develop innovation structure and network that provide differentiation in time and method from other part of the organization structure, but have integrating mechanisms to facilities communications between them .

Recently, increasing globalization and the use of new IT has brought about two innovations in organizational architecture: strategic alliances and business-to-business network structures.

A strategic alliance is a formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product. Strategic alliances are usually formed because the companies involved have similar interests and believe that they can benefit by cooperating with each other.

A network structure is a series of global strategic alliances that an organization creates with suppliers, manufacturers, and/or distributors to produce and market a product. Network structures allow an organization to manage its global value chain in order to find new ways to reduce costs and increase the quality of products, without incurring the high costs of hiring managers to complete these tasks.

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1.7 The processes of idea generation, feasibility study, technology, market assessment and project formulation that demonstrate the commitment of the organization to the management of innovation.

Resources Staff Finance Equipment Facilities

ProcessFeasibility Every Staff

Member requiredNo extra Finance

requiredNo extra

equipment required

Current available facility is sufficient

Technology More expertise is required in technically

Additional Finance required

Latest equipment for managing quality of the

product

Separate Space for the each department

Market Assessment

Work Force Development

Increasing the future revenue

Future Commitment

State of Art Work place

Project Form Discipline Utilizing Resources

Product Development

Proper Utilization of

resourcesIdea Function Using everyone

capabilitiesLong term

growthInducing More quality into the

product

Managing the Space available

in proper Manner

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2.1 Develop an innovation structure with clarity of goals and expectation, members, resources and support that allow freedom to act autonomously and self-management of the project.

INNOVATION STRUCTURE EXPECTATIONS

Communication

Clearly conveying and receiving messages to meet the needs of all, expressing self effectively, listens effectively and understands underlying issues.

Key Behaviors/ Evidence Collects and distributes information in a

timely manner to all appropriate parties / divisions

Clarifies information to ensure accurate message is sent and received

Uses active listening skills and open questioning to understand issues fully before responding

Responds to requests of staff and clients in an approachable and assisting way

Clear, legible documentation and correspondence

Teamwork

Working cooperatively and productively with others to achieve results by actively participating in the team and involving other team members.

Actively identifies opportunities and supports others in need

Asks others for feedback on work to ensure continuous improvement in work area

Giving and receiving feedback in a constructive way

Solidly performs all work responsibilities and adheres to all organizational policies and procedures that support the team e.g. document control, file management

Problem Solving & Judgment

Ability to assess options and implications in order to identify a solution by breaking down problems and recognizing basic relationships of problems.

Follows through on identified / communicated issues i.e. reporting CIRs

Resolves issues taking into consideration all invested parties where appropriate i.e. clients, funders, staff and organization

Seeks out information to analyze and resolve problems in a holistic way

Reports out on outcomes of all complex issues

Adaptability

Personal willingness and ability to work in and adapt to change, valuing the need of adaptability, demonstrating adaptability and adapting approach appropriately.

Openness and willingness to change Continuous improvement approach to work

area and responsibilities Prioritizes work responsibilities to manage

work area effectively

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INNOVATION STRUCTURE EXPECTATIONS

Client Focus

Understanding and meeting or exceeding client needs through responsive client service and contributing to positive outcomes for the client.

Establishes rapport with clients “Can do” attitude towards clients’ needs Seeks out solutions for clients when services

are not offered by Community Futures Flexible in approach to meet specific client

needs

Innovation

Using original and creative thinking to make improvements and/or develop and initiate new approaches for own job/area and approaches new to the organization.

Provides new ideas annually to enhance efficiency and effectiveness of position or organization

Monitors impact of changes and reports to management

Relationship Building

Developing and maintaining win/win relationships and partnerships through establishing formal working relationships.

Establishes relationship with administration of partner organizations

Establishes working relationships within internal administrative team

Works with administrative teams to ensure efficiencies of operations

Resolves issues in relationships constructively Positive evaluations

Self-Management

Reflecting on past experiences in order to manage and continually improve our own performance, recognizing opportunities and addressing difficulties; taking responsibility and learning from mistakes.

Adheres to all procedures and policies of work area and organization

Analyzes performance and takes active steps to improve

Personal self management to meet work responsibilities

Actively seeks out professional develop to enhance skills

Service Facilitation

Creates networks to ensure required services are delivered effectively, providing information as required, creating networks of support.

Liaisons between client and potential resources

Actively supports clients in interpreting and filing out documentation

Maintains network / contact lists

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INNOVATION STRUCTURE EXPECTATIONS

Organizational Awareness & Commitment

Understands the structure and culture of the organization and supports the organization’s values, principles and goals; demonstrating an understanding of the organization beyond own workgroup and can anticipate and meet organizational needs.

Adheres to all Customer Service Indicators and other organization policies, values and cultural principles

Acts to support other areas of the organization Acts to ensure the interrelationship of

activities of own work area and supports other areas of the organization

Acts on opportunities to promote and communicate services of other divisions of the organization

2.2 Innovation management roles are clarified and assignment to specified people (or self-assigned ) as a mean of using, developing and enhancing skill.

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Strategize and Plan: Draft a charter to gain agreement on the vision for the initiative, in alignment with business goals. Scope the initiative, and establish the resources and budget. Integrate with strategic IT and business plans.

Develop Governance: Establish an optimal process for making decisions and assigning decision rights. Identify and engage stakeholders. Agree on the authority and flow for decision making. Implement and set up feedback mechanisms.

Drive Change Management: Set up a system to communicate and socialize ideas via multiple channels. Get buy-in from stakeholders at all levels. Assess what types of open innovation initiatives and cultural shifts are appropriate to optimize contributions to innovation.

Execute: Draw from a broad range of sources to generate ideas for innovations that transform the business. Follow the process to align the initiative with business goals. Update and drive new elements of the initiative in response to changing business requirements.

Measure and Improve: Measure how the initiative has affected business outcomes. Seek feedback from stakeholders. Study innovation best practices and case studies from other organizations. Drive improvements through process changes and upgrades.

http://stepupbc.ca/sites/default/files/downloadable- material/Innovative%20Promising%20People%20Practices.docx

2.3 Develop protection and support system for innovation projects participation to enable them to function creativity in condition of uncertainty and risk, including the freedom to fail.

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Protection and support system for innovation projects:

Identify Issues Asses key Risk Area Measure likelihood and impact Rank risks Set desired results Develop Options Select Strategy Implement the Strategy Monitor and Evaluate and Adjust

http://ec.europa.eu/invest-in-research/pdf/download_en/risk_management.pdf

2.4 Develop advice and assistance programme to allow progress to be maintained and to enable individuals and groups to work autonomously.

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The individual development planning process requires communication and interaction between the supervisor and the employee. It involves six steps:

Step 1: Pre-Planning – Supervisor and employee prepare independently for meeting.

Employee completes all agency required self-assessments. Supervisor reviews performance evaluations, seeks feedback from

stakeholders such as employee’s peers, subordinates, upper managers, other agency personnel who interact with the employee, and, where appropriate, external stakeholders [employees of other state and federal agencies, vendors, clients, legislators, etc.].

Supervisor reviews agency mission and goals and determines which pieces of the employee’s job are critical to meeting the mission and goals. Supervisor should also review the work unit goals and objectives and determine which parts of the employee’s job are critical to goal and objective success.

Step 2: Employee/Supervisor Meeting – Discuss employee strengths, areas for improvement, interests, goals, and organizational requirements.

Step 3: Prepare Individual Development Plan – Employee, in consultation with supervisor, completes plan for individual development.

Step 4: Supervisor seeks approval of upper management [if required by Workforce Development Committee/Plan and/or organizational policies and procedures].

Step 5: Implement Plan – Employee pursues training and development identified in plan.

Step 6: Evaluate Outcomes – Supervisor/employee evaluate usefulness of training and development experiences.

2.5 Develop a system to provide advice and support to confirm joint commitment to innovation goals, which demonstrates trust in those carrying out the work, gives encouragement and reinforces confidence.

Accountability: Accept personal responsibility for the quality and timeliness of work .Can be relied upon to achieve excellent results with little need for oversight.

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Caseload Management: Appropriately prioritize and concurrently service multiple, long-term case assignments, integrating many factors into case decisions, and ensuring accurate, high quality service delivery.

Adaptability/Flexibility: Adapt easily to changing business needs, conditions and work responsibilities. Adapt approach, goals and methods to achieve successful solutions and results in dynamic situations.

Coaching & Mentoring: Actively partner with co-workers to provide them with information, techniques, instruction, feedback and encouragement to maximize their success on the job.

Identify potential of others: Willingly take part in and has genuine interest in developing the careers of others; counsel and guide others to use their talents to achieve their best; identify potential in others and work closely to develop and implement that potential

Support risk-taking: Actively support stretching outside of comfort level and trying new techniques that may enhance success; coach for incremental, one-step-at-a-time improvements; offer praise and recognition as each step forward is made.

Encourage others: Encourage repeating and building upon areas of strength and actively dissect areas that may be improved; strive to help teammates make improvements without affixing blame; suggest methods and gives examples that provide a roadmap to improved performance.

Communicate with stakeholders: Clearly and effectively communicate with individuals and groups within and outside of the organization

Achieve independence: Counsel and lead others in improving their personal outlook, adjustment to basic living problems, social behavior, or physical barriers; encourage clients to achieve independence when possible.

Motivate & goal-set: Help others identify needs, explore options, and create and achieve meaningful goals; provide motivation through support, encouragement, and assistance.

Anticipate problems: Evaluate observations to anticipate and respond to potential threats. Recognize behaviors that may indicate someone is preparing to do harm. Recognize potential security breaches and correct the situation immediately. Anticipate rule-breaking actions of others and take steps to prevent problems.

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