INNOVATION

Innovation

Table of Content

Task 13

Innovation Strategy in Organisations4

Identifying Innovation Components5

Task 25

Innovation for Intrapreneurship5

Ideation7

Product Design8

Production8

Distribution/Sales8

Task 310

Task 412

Strengths and Benefits of Innovation Models13

The Need for Underpinning Theory in Innovation Models14

References16

Innovation

Task 1

Innovation involves finding a new and better way of doing something. Much of our modern society is based on innovations that have occurred in the past that provide us with the standard of living we enjoy today. And Innovation has always been at the centrepiece of competitiveness. The new technologies competition and time speed are used to explain that the dynamics of competition. Thus there is a large focus on the concept of innovation in organisations. Innovation takes several forms: in products, services, production processes and management systems. Innovation in products and services is related with “Research & Development” and meeting consumers' needs. Innovation with respect to processes relates to changes in machinery and other elements not directly associated with employees and have the aim of increasing productivity and efficiency. Innovation in management systems is usually in response to new environmental conditions, and improving the way in which people are managed and work is organized.

This form of innovation becomes necessary by changes in the process. The definition of innovation is: “The intentional introduction and application within a role, group or organisation of ideas, processes, products or procedures, new to the relevant unit of adoption, designed to significantly benefit the individual, the group, organisation or wider society” (Nonaka, 1994, 14). The definition explains the intentional approach that organisations have adopted when creating and evolving new ideas. The concept suggests that an approach to innovation does not exist, but innovations are planned in such a way that they can anticipate the benefits arising from the change. Such benefits are not restricted to economic and productivity benefits but may also include personal growth, increased satisfaction, efficiency, productivity or better personal communication

Innovation Strategy in Organisations

Innovation is a crucial process for the wellbeing of an organization. In the pursuit of it, organizations face strategic choices on the focus of resources. In this context, the basis on which an innovation would compete long-term can be selected from three generic strategies: cost leadership, differentiation and focus. Cost leadership, in which it aims to be the lowest cost supplier in the market. Focus, in which the service is aimed at a particular buyer group or geographical area to the exclusion of others. Furthermore, in order to create new competitive advantages, top management needs to: create a sense of urgency; develop a customer focus at every level; provide employees with the skills they need to work effectively; allow the organization to absorb one challenge at a time; and establish clear milestones and review alternatives. There are four ways to achieve an effective innovation strategy (Metcalfe, 1997, 84):

Focus on the critical success factors;

Build superiority by employing technology not currently exploited by rivals;

Pursue aggressive initiatives that challenge normal rules;

Use strategic degrees of freedom to focus on areas where competitors are not involved.

Innovation can be competitive advantage and the key to sustained ...