innovation management

What is Innovation management

• Innovation management is the management of innovation processes. It refers both to product and organizational innovation. Innovation management includes a set of tools that allow managers and engineers to cooperate with a common understanding of processes and goals.

Innovation management

Innovation Management Concepts

• Recognize Innovation vs. Invention• Build a Culture of Innovation• Fail Early (and Often)• Build a Portfolio• Engage in Customer development• Sharing is Caring.

EVOLUTION of INNOVATIONMANAGEMENT

Practice of innovation management has gone through two stages:1. Technology & Innovation Centered Management: • At this stage, the center task of enterprises’ innovation management is to

pay too much attention to product innovation or process innovation separately

• It concentrates on products innovation first, then pays more attention to process innovation, and finally reaches the steady balance between product innovation and process innovation

• What's more, the innovation activities only depend on the R&D function and R&D people, other sources of innovation are generally ignored

EVOLUTION of INNOVATIONMANAGEMENT

• 2. Portfolio innovation management.• At present, it is the dominant paradigm for innovation

management both home and abroad. • It concentrates on products innovation first, then pays

more attention to process innovation, and finally reaches the steady balance between product innovation and process innovation

Different types of innovation

• Incremental innovation• Radical innovation• Combining radical and incremental innovation

Incremental innovation

• Incremental innovation focuses on making modest improvements to existing processes, products or services.

• This could be anything from tightening up an existing workflow by automating some of the process, to improving your website in order to make self-service easier, thus reducing the number of customers coming to you through more costly and time-consuming channels.

Radical innovation

• Radical innovation involves creating a completely new process or product in response to a market need or opportunity.

• Radical innovations tend to come about as a result of careful research and development into a specific issue or problem, and frequently make use of new technology to solve them.

Combining radical and incremental innovation

• Sometimes the best approach can be to combine radical and incremental innovation. An example of this would be to develop a totally new process to produce and manage an existing product or service. Developing an idea to bundle several products together is also innovation.

Three conditions for innovations

• Innovation means work, hard, concentrated and thorough work. If these qualities are lacking then there is no use for the big talent, cleverness or knowledge.

• Successful innovations must build on your strong points. The innovation must be important to the innovator.

• Innovation must focus on a market, must be controlled by the market (market-pull).

Requirements for managing innovation

• Having an innovation framework can be a key component to continuous effective change that increases the capability of the business to generate customer value. A critical part of this framework will be the decision making process that is used to funnel the potentially long list of ideas down to the critical few that will deserve investment.

• For large organizations, this is typically accomplished as part of a stage gate process, but multiple innovation models exist. Often these investments are considered as part of an overall business investment portfolio decision.

Requirements for managing innovation

• Innovation promotes the need for constant change and renewal, potentially impacting all areas of a business. Change is often resisted, necessitating appropriate incentives and rewards to promote needed innovation.

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