Chapter 3 IM

THE ORIGIN OF INNOVATION
Learning Objectives
At the end of this chapter, students should be able to:

– Identify the innovation issues and practices in
matured organizations and new business venture;
– Describe the innovation issues and practices in top-
down and bottom-up management styles;
– Explain the innovation issues in teamwork and
transforming individuals into teams;
– Discuss the behavior of innovators, how they change
the rules of the game, and how they manage the
pressure of innovation.
Innovation Management All Rights Reserved

© Oxford Fajar Sdn. Bhd. (008974-T), 2015 1– 3
Introduction
 No one has a monopoly power on innovation.

 Innovation is open to all of us who has the courage and
the energy to take-on the challenges of promoting
something new that change the current status.
 For example, a well-structured organization with an
established comfort zone view organization from a more
formalized perspective.
 On the other hand, an independent innovator will take-
on innovation as a critical success factor.

Innovation in Mature
Organizations
 often face the daunting challenge of growing their core

business while pursuing new business opportunities and
developing new markets.
 Normally they blame the economy, government policies,
management failure, the bureaucracy, stock market and
lack of mission and vision.
 they always promote past accomplishments without
realizing that success will not last long.
 The challenge: to design an organization with agile
functions and processes.

Innovation in New Business
Ventures
 Developing a successful new technological company is

a very difficult, risky and time consuming exercise.
 factors to consider to concluding the new business
venture.
– Viable business model
– Gross margins are attractive
– Market is large to interest investors etc.
 taken when we believe that the commercial opportunity
is sufficiently attractive to secure the necessary support
and resources through the incubation and early stage
development period.
Innovation in New Business
Ventures (cont.)
 Some of these elements may be put into place after a

decision to pursue a start-up strategy is made, though
our preference is to have them all in place beforehand.
In addition, process of innovation in a new business
venture presents a situation similar to that of bottom-up
innovation process.
 A new business venture requires a particular type of
person to run the business; able to tolerate uncertainties
and risks.
 among the issues encountered is that too many new
business ventures want to start big.

Innovation Issues and
Practices
a) Top-Down Innovation
b) Bottom-Up Innovation

Innovation Issues and Practices
Top-down Innovation (Directive style management)

 Innovation were initiate from the top management and pass
to the lower level employees.

 Top-down Innovation (Directive style management)

– Management set the pace and the targets and
objectives as well as providing the resources.
– While functional areas and professional disciplines
will interact with each other in order to achieve the
objectives.
– For example, Apple, the CEO made all the decisions;
everything had to go through him from design to
launch of a product.
– Limitation : Human resources

(cont.)
 Bottom-up Innovation
– innovation originating someplace in the lowest level of
the organization

Practices (cont.)
– Every employee is strongly encouraged to get involve in
bottom-up innovation.
– Employees think differently, ask so many questions,
have so many interests, dissatisfied with current
conditions, are arrogant, bring different thinking or
values, who always ask “why not” more often than
“why”, who make problems for first-level managers, but
who are the lifeblood and future of the organization.

Practices (cont.)
– These are the people who throw valuable ideas and are
willing to go through the tedious process of first
convincing themselves and then convincing several
levels of management of the value of those ideas.

Practices (cont.)
 The Challenges
– To transform the ideas to concept
• Idea born for its simplicity has become very
complex since more thought raises new questions
and complexities.
– The competency to put all information, knowledge and
experience from different sources.

Practices (cont.)
 The Challenges
– Bottom-up innovation depends on a specific type of
individual as follow:
• one who is willing to put in personal time and effort
to reaching a goal;
• one who has the drive to pursue a goal in spite of a
possible negative career impact;
• one who will not take no for an answer

Practices (cont.)
 The Challenges
– Innovators are not always the persons who generate the
ideas.
– Innovation is all about:
• combining the data, information, knowledge and
experience from many different sources.
• competence in integrating knowledge of the
marketing and technical issues as well as viewing
the innovation from a strategic business
perspective.

Team Functions in Innovation
Not just support the Distribute info

innovation process, they Information on innovation
actually undertake all to people who
facilitation
the steps generate ideas
Four Roles
Execution of Opportunity
delivery Innovation consultant
Team
Connect ideas Evaluate and ensure

with those who the ideas being
Opportunity
have the pursued match with
resources to enabler organization
execute them objectives.
(cont.)
 Ten tips for growth companies in search of high-

performance teams that deliver.
1. Start by building a bigger box rather than trying to
think outside the box
2. Select your team for who they know as well as what
they know
3. Pick one leader and provide him or her the
autonomy they need to be successful
4. Build a team that can both identify gaps in the
market and markets in the gap!
5. Find team members who tell great stories
(cont.)
 Ten tips for growth companies in search of high-

performance teams that deliver. Con’t:
6. Understand the difference between good and bad
conflict
7. Supplement the innovation core team with an
external provocateur
8. Remember to set goals and measure progress
9. Think like a startup entrepreneur
10. Ensure team members have “both feet in”

Transforming Individuals Into
Team Members
 Innovation starts with an idea that eventually is

transformed into a real-life concept.
 To develop a real operational and partnership team:
– involves everyone and every participating group.
– involves every function and recognized their roles in
this process.
– breaking the rules.
– develop a functioning team that focuses on the
business objectives-not functional objectives,
– looking for common ground.

Innovators’ Behavior
 Innovation takes off anywhere; in the kitchen;

the garage; or the basement.
 The Innovators’ behaviors
– Have a dream; driven to achieve that dream
– Persistence; go for it relentlessly
– Committed; spend their valuable time and effort
– Strategic planner; have a vision and mission.

Managing the Pressure in
Innovation
The Change
Agents and Status
Quo
The Focus of
Following and Short-and Long-
Leading Dynamic term
Pressures
of
Routine and Innovation Constraint and
Creativity Freedom
Stability and
Change


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THE ORIGIN OF INNOVATION

At the end of this chapter, students should be able to:

Innovation Management All Rights Reserved

 No one has a monopoly power on innovation.

Innovation Management All Rights Reserved

 often face the daunting challenge of growing their core

Innovation Management All Rights Reserved

 Developing a successful new technological company is

 Some of these elements may be put into place after a

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Top-down Innovation (Directive style management)

Innovation Management All Rights Reserved

 Top-down Innovation (Directive style management)

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

Not just support the Distribute info

Connect ideas Evaluate and ensure

 Ten tips for growth companies in search of high-

 Ten tips for growth companies in search of high-

Innovation Management All Rights Reserved

 Innovation starts with an idea that eventually is

Innovation Management All Rights Reserved

 Innovation takes off anywhere; in the kitchen;

Innovation Management All Rights Reserved

Innovation Management All Rights Reserved

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