Innovation Management

Companies cannot remain static, because

• environmental conditions

  • increased competition

  • new technologies

  • customer relationship

• characteristics of the environment

  • dynamic

  • complex

  • diversified

  • hostile

Companies must innovate frequently, effectively and confidently.

Innovation must be the norm.

• Volatile: The nature and dynamics of change are rapid and unpredictable.

• Uncertain: The future is unknown, and it is difficult to predict outcomes.

• Complex: Many interconnected parts and variables make situations difficult to understand.

• Ambiguous: Lack of clarity and difficulty in interpreting events.

“Action and effect of innovating”

“Bring something new and still unknown in a certain context”

• It is a fundamentally entrepreneurial act (innovate != invent)

• Invention is the conception of the idea

• Science does not equal innovation

• The invention must be accepted by the market to be innovation (Innovation = Invention + market acception)

Innovation = Theoretical conception + technical invention + commercial exploitation

• Result of an organizational process that ends with the success in the application of an invention, idea or concept related to a new product or process, which allows to do something that was not possible before or, at least, not so well or so efficiently.

Innovation is:

• Essential to be competitive

• A necessity imposed by the market

Innovation is not:

• A choice

• A one-off event

Innovation must be continuous and integrated into the management of the organization as a priority.

To innovate is to do new things, differently and better than others.

The contributions of the people of the company:

• is a fundamental factor of innovation

• must affect all levels of the organization, starting logically with the highest levels of managmenet.

• according to its nature

• according to the impact and degree of originality

• according to the origin

• Technological innovation: changes to products or processes

  • Product / service innovation: the manufacture and marketing of new or existing products improved, either through new technologies or through new uses of existing technologies

  • Process innovation: installation of new production processes that improve productivity, rationalization of manufacturing and, consequently, the cost structure

• Innovation in management methods: changes to products or processes

  • Commercial innovation: new presentation, distribution, form of application of an already known product, new channels of sales promotion, etc.

  • Financial innovation: new forms or ways of payment, new ways of obtaining financing, etc.

  • Innovation in management: new software (SAP, Oracle, ERPs) or TQM systems

  • Organizational innovation: changes in the direction and organization under which the productive and/or commercial activity is developed.

Technology pushed Innovation

• It derives from the process that orccurred in science or technology. Sell what can be manufactured.

• Radical innovations, considerable risk and provide competitive advantages

• Basic sciences —> Engineering —> Manufacturing —> Marketing/Sales

Market pulled Innovation

• Arises as a consequence of the identification of a need in the market. Manufacture what you can sell.

• Incremental innovations, reduced risk and do not sustain in the long term a competitive position

• Market need —> Development —> Manufacturing —> Sales

Make what you can sell

Sell what you can make

Innovation is essentially a bilateral or coupling activity. On the one hand, it involves the recognition of a need, or more accurately, of a potential market for a new product or process. On the other hand, it involves technical knowledge capable of satisfying it.

Ability to innovate = mechanism of adaption to the environment

Given the importance of innovation

• inclusion in strategic approaches (objectives to mid term and long term)

• Object of management or direction

Innovation management tries to direct and give coherence and continuity to the resources and activities dedicated to this activity

Many managers think that innovation cannot be managed, since it is considered as an

• exclusive topic of R+D staff

• anarchic process

Objective: To break this dynamic, companies must be increasingly aware of the need to manage innovation following a directed process (planned, controlled, …)

Business challenge: from occasional innovation to systematic innovation —> Innovation management business model

• Focus

• Training

• Implant

• Watch

• Learn

formulation of a technological strategy to increase innovative behaviour and obtain competitive advantages

chosen an option, have the knowledge and allocate the necessary resources to put it into practice. It involves the combination of new and existing knowledge, available both inside and outside the organization, to implement the technology strategy

Innovation, starting from the idea and following the different phases of development until its launch. It is at the core of the innovation process, it allows innovation to be real.

Continuous exploration of the environment (internal and external) to identify and process signals or indications of a potential innovation (needs, opportunities arising from research, legaslative changes, competitor behaviours, …)

Reflect on the above elements and review the experiences of success and failure, capture the knowledge derived from the experience

Ot recognizes that there are a number of interrelated and interactive elements or factors in an organization that must be implemented to ensure the success of innovation. The structure of the guide standard for innovation management covers seven key elements, one for each of the titles of the document. These titles are the same for all management system standards.

Key elements of an Innovation Management System

• Context

• Leadership

• Planning

• Support

• Operations

• Evaluation

• Improvement

• A strategic tool used to visualize and analyze the value proposition of a product or service relative to competitors.

• Particularly useful for identifying opportunities for innovation and differentiation.

• x: key attributes

• y: level of value delivered for each attribute

1. Identify key attributes

2. Assess value perception

3. Plot the attributes and values

4. Draw the curve

5. Analyze and iterate

• Identify market gaps

• Focus on innovation

• Strategic differentiation

• Visual clarity