Chapter 2Managing Innovation © David O’Sullivan
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.
Activities Find favourite TED talks: • James Coughlan • Bernadine Rooney • Ciaran Redmond • Hussien Aied
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
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.
Core Techniques • Strategic planning • Performance measurement • Creativity management • Project management • Knowledge management
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
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)
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
Cultural Web • Paradigm • Power structure • Organizational structure • Control system • Stories • Symbols • Rituals and routines Johnson and Scholes
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
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
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