Importance of Innovation Management Innovation is vital for the survival of the business in highly competitive business environment where it is difficult for differentiating products as well as services. Innovation is usually applied to the enterprise in various ways that involves- Product or service innovation, process innovation, business model innovation, marketing innovation, financial innovation, supply chain innovation and enterprise innovation. Innovation management signifies the procedure of managing innovation of the enterprise that begins at initial phase of ideation to the final phase of effective adoption. It mainly encompasses strategic decisions, activities and various practices of planning as well as adopting the innovation strategy. Moreover, the managers of the organizations administer innovation through different stages of innovation cycle. The innovation cycle indicates the activities that are involved in moving innovative service or product to the market. There are two basic activities of this innovation cycle that includes- development of innovative goods or Continue reading
Business Innovation
Importance of Innovation Strategies in Organizations
Innovation is significant in terms of bringing new ideas within the operational procedures that are effective for increasing the company performance and overall company productivity. Companies develop innovation strategy in order to implement appropriate innovation tactics, which prevents the company from facing any financial or situational crisis. Appropriate innovation are also beneficial for mapping the unique value proposition of the company for the target customer market. It is important to conduct appropriate innovation planning, in order to organize the innovation initiatives in the organization, in order to create a positive impact on the organization. According to the experts, the impact of the innovation depends on the strategic choices made by the organization. One of the most common method bringing innovation in the organization is to incorporate technological benefits in the company operations. However, in order to ensure the success of innovative ideas in the organization, the management has to take Continue reading
The Role of Leadership in Innovation
Now more than ever, companies are putting more attention to innovation that make their products and services more competitive, thereby enable them to survive and flourish in the changeable and challenging global environment. Innovation is regarded as a key driver of competitive advantage in organizations. Innovation is defined as the first attempt to carry out a new creative idea, and translate it into practice. However, it isn’t easy; it’s a difficult and complex task. There are two primary factors influencing the success of innovation: technical resources (people, equipment, knowledge, money, etc.) and the abilities in the organisation to manage these resources to encourage innovations. Organisation is a kind of breeding ground for generating creative idea and capturing new opportunities. An innovative organisation has several key components: appropriate structure, effective team working, external focus, leadership, key individual, creative climate and etc. All the factors are absolutely essential. All innovative organisations needs Continue reading
Discontinuous Improvement – Abernathy and Utterback Model
The common innovation process happens in a set frame, following certain rules and ways of thinking. This ‘game played’ by competitors is to innovate by doing what has been done before like product or process innovations or even position and paradigm innovations, but doing it better. In this competition of ‘playing the same game’ some firms manage to do better than others and can gain a competitive advantage through these innovations, but the ‘set of the game’ is accepted and do not change. Very rare something happens that breaks up this framework and changes how the game is played. This will not happen every day but when this arises the rules and boundaries of a market change rapidly. This will result in upcoming new opportunities and challenge the existing players in their way of working, thinking and doing business. A discontinues improvement occurs out of a technological and conditions stable Continue reading
Four Important Types of Innovation
Innovation is defined as new ideas that work and a successful innovation can be achieved through the creation and implementation of new processes, products, services and methods of delivery which will result in significant improvements in the profitability and enhance the growth of an enterprise. An organization is considered innovative if it stirs up the marketplace, by creating competitive pressures and new opportunities. It has been recognized that innovation success in an established organization requires balancing the stabilized efficiency of the current market offerings and building new capabilities to create and develop offerings for unknown markets. There exist four types of changes to achieve strategic edge within an organization. Managers can use these four types of changes to achieve competitive advantage in the international environment. Each company can have maximum impact upon the chosen market through its own unique configuration of technology, product and services, strategy and structure, and culture Continue reading
Case Study of Rolls Royce: Innovating for the Future
Rolls Royce is a market leader in propulsion and distributed energy systems for both the defense and civil aerospace markets. Their commercial markets cover nuclear, gas turbine, and diesel technologies to power everything from small planes and trains to entire cities. The aerospace applications for innovation are where Rolls Royce has made significant investments and reaped interesting rewards. On the defense side of their business, they have over 16,000 engines in service. In the civil aerospace side of their business, they provide engines to airlines, private business and engines for helicopters. Major Changes in Industry The nature of the aerospace industry has relatively high barriers to entry as the cost for entry is high and requires specific skills and expertise. Nonetheless, the industry has been experiencing growth as the demand for flights increases resulting in the rise of aircraft manufacturing. Several factors have contributed to uncertainty in the aerospace industry Continue reading