Managing Innovation

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Chapter 2

Managing Innovation

© David O’Sullivan

2-1

Reflections

 Define innovation and explain the difference between it and invention.

 Give one example of each of the following types of innovation: product, process, and service.

 Give one example of a radical innovation and an incremental innovation.

 What is a disruptive technology?

 Explain how product and process innovation are related.

 Explain the relationship between innovation and operations.

2-2

Activities

Find favourite TED talks:

 James Coughlan

 Bernadine Rooney

 Ciaran Redmond

 Hussien Aied

2-3

Learning Targets

 Explain the relationship between change and innovation

 Understand one change management method

 List some of the traits that make some organizations excellent

 Explore how culture affects innovative capability

 Explain how the culture of organizations can be adapted

 Discuss a number of models of innovation

 Discuss some of the issues around the management of innovation

2-4

Change

 Organizational change is the process of converting an organization from its current state to some future desired state.

 All innovation results in change…

 But not all change is innovation.

2-5

Present and Future Organizations

2-6

Change Management Techniques

2-7

Core Techniques

 Strategic planning

 Performance measurement

 Creativity management

 Project management

 Knowledge management

2-8

Kotter’s Methodology

 1. Establishing a sense of urgency

 2. Forming a powerful guiding coalition

 3. Creating a vision

 4. Communicating the vision

 5. Removing obstacles for acting on the vision

 6. Planning for and creating short-term wins

 7. Consolidating improvements

 8. Institutionalizing new approaches

2-9

Excellent Organizations

 Bias for action

 Close to customer

 Autonomy and Entrepreneurship

 Productivity through people

 Hands on, Value driven

 Stick to core business

 Simple form, Lean staff

 Simultaneous loose and tight properties

(Peters and Waterman)

2-10

Organizational Culture

 Pattern of shared basic assumptions that an organization has learned to use in dealing with internal and external changes

 Factors influencing innovation

 People

 Structure

 Environment

 culture

2-11

Cultural Web

 Paradigm

 Power structure

 Organizational structure

 Control system

 Stories

 Symbols

 Rituals and routines

Johnson and Scholes

2-12

Innovation Barriers and Bridges

2-13

Rothwell’s Five Generations

2-14

Innovation Myopia

 A technology push that leads to an overemphasis of

R&D discovery at the expense of other phases

 Concentration on radical and technological developments that ignores other types of innovation

 A focus on output rather than the process, which makes it difficult for organizations to manage and learn

 An inability to acknowledge the complexity and interdependence of the process because of a simplistic linear perspective

 Organizations defining certain occurrences within the process as random and then failing to adequately understand their root cause

2-15

Summary

 Explain the relationship between change and innovation

 Understand one change management method

 List some of the traits that make some organizations excellent

 Explore how culture affects innovative capability

 Explain how the culture of organizations can be adapted

 Discuss a number of models of innovation

 Discuss some of the issues around the management of innovation

2-16

Mission Statements

2-17

Activities

2-18

Search Online

 http://www.ted.com

 Nicholas Negroponte on one his visions for schools

 Robin Chase on one her visions for the future of energy

2-19

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