Académique Documents
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Innovation
Principle of Management
Invention
Innovation
It is the act of
conceiving something
original or unusual
It is creation of something
new as the product of
unique insight
It is the implementation
of something new
Creativity= Idea +
action plan
Innovation = creativity +
Productivity.
Adjectives to
describe creative
people
Original
Resourceful
Reflective
Self-
confident
Gaps/Conflicts in group
Gaps in Creative group
Intellectual perspective
You must hire a critical mass of different thinking style, and they must be
thoroughly integrated into the team.
Brainstorming Techniques
Initial idea
Understand
Reflect Improve
Understand
Reflect Improve
DELPHI TECHNIQUE
Be open to serendipity: Develop a bias towards action and toward trying new ideas. For
instance, if an accident or failures occurs while youre prototyping a new LCD screen, dont
dismiss it too quickly . Study it for the learning opportunity that may lie within. Each day, write
down what surprised you and how you surprised others.
Diversify your stimuli: Intellectual cross-pollination gets you thinking in new directions.
Develop cross functional skills: rotate into every job you are capable of doing. Get to know
people who spark your imagination. Become a life long learner. Take classes not related to your
work. Bring your insights from outside interests or activities to bear on your workplace
challenges.
3M basically focuses on giving employees the freedom to take risks and bring new ideas.
This concept was brought by William L Mcknight. During his tenure, he worked to create a culture
that puts employees in direct contact with customers problems and that encourages initiatives and
innovations.
Today the companies backup McKnights Management philosophy with a number of creativitysupporting practices.
Team that creates products that earns $4 million or more in profitable revenues
receives the Golden Step Award.
Employees can choose between management and technical career ladders. Not
everyone is cut out to be a managers, and not all who are qualified for management
want to leave the laboratory.
High street optician and spectacle retailer believe that every idea is a good idea. Employees
are encouraged to write directly to the CEO with their ideas. They receive a written response
from the CEO and if their idea is actioned they also receive a thank-you gift.
An example of such an idea is Styleyes a computer aided system, pairing customers with ideal
frames to fit appearance and lifestyle. The outcomes were:
- increase in customer satisfaction
- increase in customer spending
- increase of 17% on annual sales
Innovation
Innovation is about creating value and increasing efficiency, and
therefore growing your business.
Innovation strategy
Need seekers - The need seekers "actively engage
customers and potential customers to shape new
products, services and processes. They invent first-tomarket products.
Market readers- The market readers watch their
market very carefully and respond to what customers
buy. They are more cautious and create value through
incremental changes.
Technology drivers- traditional definition of innovation,
focusing on a companys internal R&D and technological
capabilities to serve the needs of the customers.
Another approach divides innovation types into two
categories: incremental vs. radical innovation.
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01/13/16
1. New to the World Products and services that create entirely new markets,
2. New offering that allow expansion to new groups of customers,
3. New offering for existing customers,
4. Minor Changes to existing customers, and,
5. Cost reduction to existing offers
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Input Metrics
Process Metrics
Output Metrics
Financials
-
Allocation of financial
- Managing time
resources
- Managing Innovation
- Total Shareholder
Pipeline
- Assignment of Key
people
Innovation ROI
return
Non-financials
- Patents granted
- Number of new
product launched
01/13/16
SUBSTITUTE- AN EXAMPLE
COMBINE- AN EXAMPLE
ADAPT AN EXAMPLE
MAGNIFY AN EXAMPLE
MINIFY AN EXAMPLE
ELIMINATE
Potentiality
Potential to transform wealth in the world
Reverse innovation is a nice growth opportunity in poor countries. But more
importantly, it is a way to protect their competitive position in home markets
Growth in developed countries has slowed down. Much of the growth is now in
developing countries
Income gap - This gap is created between rich countries and developing ones. Because
per-capita incomes are so low in the developing world, conditions are ripe for innovations
that offer decent quality at an ultralow price that is, a 50% solution at a 5% price.
Infrastructure gap - This is created between rich countries and developing ones. Most
of the infrastructure (energy, transportation, telecom, and so forth) in the developing world
has yet to be built
Example Indian telecoms leapfrogging to wireless technology in the absence of land
line phones
Sustainability gap - This is created between rich countries and developing ones. Many
developing nations are confronted with environmental constraints far sooner in their path
of economic development than rich nations were.
Performance gap - because of the peoples low incomes, customers in poor countries
are prepare to make significant scarifies in performance at the right price.
Examples Nokia cell phones
Preferences gap - This is created wherein each country has distinct tastes and
preferences. Example The prevalence of lentil based foods in India
GE GE MAC 800
GEs innovation on the GE MAC 400 to build a portable low-cost ECG machine to cater to the rural
population who cannot afford expensive health care was launched as an improved version a year later
in 2009, in U.S. as MAC 800.
Jugaad Innovation
In Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth authors Navi Radjou, Jaideep Prabhu and Simone Ahuja present a new approach to
innovation that is fueling growth in emerging markets as well as developed ones
Jugaad is an Indian phrase used to describe the kind of ingenuity that enables Indians to
manage the large and small challenges of everyday life.
The essence of Jugaad is to improvise, and to quickly and cheaply cobble a solution
together from the materials we have at hand.
In recent years, Jugaad has gained attention among companies in the western world
because products like Tatas Nano car and GEs MAC scanner for hospitals have shown
that the Indian approach to innovation can lead to solutions for the mass market at
extremely low prices.
Simply stated,
business has
just two
functions,
innovation and
marketing.
But only the
seasoned
managers
understand the
complexity
behind this
simplicity.
What training or
expert assistance is
required while using
the product, ease of
storing the product,
the effectiveness of
the product's features
and functions.
Other accessories
that are used along
with the product.
Thinking ahead, there are six different ways of innovating and creating value in each
of these stages
The innovation
facilitates recycling
and other
environmentally
sensitive practices.
Maturity Framework
Having good talent people in the organisation was important yesterday, but
today it is critical !!
CAPABILITY DEVELOPMENT
STIMULATING INNOVATION
Innovation friendly strategy, structure, top management style, middle
management support & effective modes of managing innovation are five factors
that affect organizational innovation. Structural, Cultural & Human
Resource Variables
INNOVATION CULTURE
Innovation is a competitive resource in modern organizations operating in a dynamic,
turbulent & competitive environment. Innovation doest not occur easily & automatically.
Establishing inquisitive, investigating, enterprising & challenging culture & leadership is
essential to nurture & foster innovation in organizations.
During the first half of the twentieth century, managers viewed work specialization &
efficiency as an important source of increased productivity & competitive advantage.
Accordingly, organizations were structured on line, line staff & committee bases.
Managers in contemporary organizations are finding that these traditional
hierarchical designs are unsuitable in the current environments of change &
challenge. Market place demands are today for lean, flexible, responsive, learning &
innovative organizations.
Resistance to Change
Self-Interest
Cultures that
Value Tradition
Different
Perspectives and
Goals
Uncertainty
Employee Involvement
Negotiation
Coercion
Top-Management Support
Top Management has an onerous task of matching the Creative & Innovative
styles to Organizational Strategy.
Planning
Organizing
Staffing
Leading / Mentorship
Controlling
THANK YOU
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5.
Nirmal Purohit
Sachin Gupta
Anuradha Singh
Sneha Gupta
Ankit shetty
Principle of Management