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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 is;
Learning Orientation
• These identify and solve problems.
Resilient Workforce
Outsourcing Innovation
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.
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
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.
COMPETITIVE ADVANTAGES :
DIRECT SELLING
C2C
VIRTUAL ORGANISATION
FLAT ORGANIZATION
INTELLECTUAL
FLA
T ONIZATION
INTELLECTUAL
Eg.
Electromagnetic Car Seat Release
• Neutralize organizational antibodies that kill off good ideas because they are
different from the norm
CONCLUSION
V2MOM MEHOD
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 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.