Scribd
Upload
9 views9 pages

Innovation Management

Chapter 3 discusses Innovation Management, emphasizing its importance for achieving competitive advantage and adapting to market changes. It outlines various innovation management strategies, including open and closed innovation, disruptive and sustaining innovation, and the distinction between product and process innovation. The chapter also details the innovation process, which includes stages from idea generation to post-launch review.

Uploaded by

sohanxt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
9 views9 pages

Innovation Management

Chapter 3 discusses Innovation Management, emphasizing its importance for achieving competitive advantage and adapting to market changes. It outlines various innovation management strategies, including open and closed innovation, disruptive and sustaining innovation, and the distinction between product and process innovation. The chapter also details the innovation process, which includes stages from idea generation to post-launch review.

Uploaded by

sohanxt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 9

Chapter -3

Innovation Management
Learning outcome
After completing this chapter, you will be able to
 Introduction to Innovation Management
 Innovation Management Strategies
 Definitions of Innovation and Innovation Management
 Innovation Process
 Intrapreneurship and Innovation
 Innovative Work Environments
 Driving Intra-organizational Innovation
Introduction to Innovation Management
Innovation management refers to the process of managing and fostering innovation
within an organization to achieve competitive advantage, growth, and sustainability.
It involves systematically nurturing new ideas, transforming them into marketable
products or services, and continuously refining processes to improve performance.

Why is Innovation Important?


 Global competition: Companies are compelled to innovate to survive and thrive.
 Changing customer needs: Innovation helps to adapt to shifting consumer
expectations.
 Technological advancements: Innovations leverage technology to improve efficiency
and effectiveness.
 Economic growth: Innovation is a key driver of progress in any economy.
Innovation Management Strategies

Innovation management strategies help organizations direct their efforts to


achieve successful innovation. Some key strategies include:

A. Open Innovation: Involves external collaborations with external


stakeholders, such as customers, suppliers, and competitors, to generate new
ideas.

Example: Crowdsourcing new product ideas or collaborating with universities


for research.
B. Closed Innovation: The organization keeps its innovation efforts internal,
relying only on its own resources and R&D.

Example: Proprietary product development processes.

C. Disruptive Innovation: Innovation that significantly alters or creates new


markets, often displacing established market leaders.

Example: The emergence of smartphones disrupting the personal computer


market.
D. Sustaining Innovation: Incremental improvements to existing products and
services.
Example: Continuous software updates to improve functionality.

E. Product Innovation vs Process Innovation


 Product Innovation: Creating new or significantly improved products.
 Process Innovation: Improving the efficiency or effectiveness of
organizational processes.
Innovation Management
Definition: The systematic management of innovation processes within an
organization to enhance its ability to develop new products, processes, and
services. It involves planning, implementing, and monitoring innovation-related
activities.

Innovation management is critical for companies to build a sustainable competitive


advantage, ensuring they can respond to market demands and technological
advances swiftly.
Innovation Process
The innovation process typically follows several stages:
A. Idea Generation
 Brainstorming sessions, research, and development efforts that yield new ideas.

B. Idea Screening
 Evaluating and prioritizing ideas based on feasibility, market potential, and alignment
with organizational goals.

C. Concept Development and Testing


 Further refinement of the most promising ideas through prototypes, pilot tests, and
feedback.
D. Business Analysis
 Analyzing the economic viability, market demand, and cost-effectiveness of the
product or service.

E. Product Development
 Design and development of the final product, including production and scaling.

F. Market Introduction
 Launching the product into the market, often accompanied by marketing strategies.

G. Post-launch Review and Iteration


 Collecting feedback and making improvements to the product or process.

You might also like