LEARNING OUTCOMES
Innovation
– Ideas, concepts, and inventions are the precursors of innovation. Ideas
and concepts cannot generally be implemented.
– Innovation is about introducing something new or doing something in a
new way. The goal of innovation is to take an idea from concept to
realization and improve business performance.
– Innovation begins with an idea that is transformed into a concept that
includes some new combination of what is already known and can be
implemented to serve a purpose.
– Invention and innovation involve creativity.
– The goal of innovation is positive change, to make someone or
something better.
Invention
– Invent something did not exist.
– Example of invention: Components, assemblies, mechanisms, and
various types of equipment used in daily living
– Inventions normally associated with patents, however many inventions
are never patented.
– Many organizations do not patent their processes but instead treat them
as organization–confidential
– Because once a patent is issued, knowledge of the invention becomes
available to all who choose to search the patent literature.
– To be competitive is to have patents that add significant value.
Creativity
– Creativity is the generation of ideas that result in the improved efficiency
or effectiveness of a system.
– Creativity (or creativeness) is a mental process involving the generation
of new ideas or concepts, or new associations between existing ideas or
concepts.
– Creativity allows the entrepreneur to manufacture products that are
different from products manufactured by competitors, allows a product
to stay in the market and have preference among customers.
– Creativity has close connections with revolution, evolution and
dynamism.
– Innovation and creativity work in a kind of critical tandem, but successful
innovation requires more than just creativity
Ideas
– Raw ideas provide little value unless someone pursues them.
– Few idea generators take the time to adequately describe the idea, and
many organizations, though not suffering from a lack of raw ideas, suffer
from a lack of interest in pursuing them.
Transforming Idea to Concept
– Transforming an idea into a workable concept involves taking account of
the system in which the idea will be implemented.
– In the formative stages of the concept, the available information may be
limited but still needs to be considered.
– In addition, new information needs to be gathered and factored into the
decision process.
Resources
– Organizational resources include people, money, intellectual property,
access to information, capability, time, customers, suppliers, plant and
equipment and financial reserves.
– All the resources mentioned play a vital role in producing innovative
products or services for an organization.
Infrastructure
– The organizational infrastructure includes the purpose of the
organization, its objectives, its strategies, management attributes, and
its support of innovation.
– The infrastructure of an organization will also provide support for any
new ideas, invention and innovative ideas.
– A strong organization with such strategies will encourage employees to
co-operate in producing new products.
Innovation Management All Rights Reserved
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FACTORS THAT AFFECT
INNOVATION
Culture
– An organizational culture includes shared values, beliefs, legends,
rituals, past history, intellectual and operational traditions, pride in past
accomplishments, policies and practices, rules of conduct, the
organization’s general philosophy of operation, and other artifacts that
define the organization.
– A healthy culture will make employees feel easy to give suggestions to
the organization’s management team.
Process
– Consists of an idea from some recognized need that is developed into a
concept, followed by an invention, and then taken through development,
production, diffusion and adoption by end users.
Demographics
– Changes in the population’s age structure, size, income, level of
education and employment can create opportunities for innovation.
Changes in Perception, Meaning, and Mood
– Innovative opportunities can develop when a society’s beliefs, attitudes
and general assumptions change.
New Knowledge
– Advances in scientific and non-scientific knowledge can create new
products and new markets.
Myths Reality
Individuals drive innovation. Innovation is a team sport.
Innovation begins with brainstorming. Innovation begins with understanding
the customer.
An innovation process will give the The innovation process is only one tool
results you need. for successful innovation.