Innovation Management

Entrepreneurial Barriers to
Innovation

Under development of Innovation as a branch:

Not yet a discipline

Need exists but does not shape up

Hard to measure hard to manage

Similar to Marketing a few years

ago
Linked to only technology
innovation

Many types, need only exploitation

of the existing technologies
3M 38 core technology 5000
products
Potential with many in different
departments

Meaning of innovation

Apple !! That's real innovation

Radical innovation, rare.

Misconception leads to pressures

Incremental leads to sustainability

Builds culture makes it a habit

Innovation of a car

Fuzzy responsibility Assignment

Who is incharge?

R&D ? or Marketing ? Conflict

Outsource instead

No ownership during implementation

Launch radical innovation from external source

Everybody's and Nobody's responsibility

Is the responsibility of the entire organization

Innovation wanders blindly

Budgeting done rarely

Responsibility assigned in 50% cases

Those who manage and involve prosper

Not which department but who

Close, collaborative and open innovation

Innovation and Creativity?

Creative ideas (expense) but no one to

manage
Great harm if innovation process is not
managed
Companies do not lack creative people, they
lack innovation managers
3Ms dual ladder
Companies spend on making people creative
and forget to coach them on innovation
Demotivates idea givers
Only creative people >then it can be counter
productive
Innovation requires goals, strategies,
resources and risks, responsibilities with
someone in charge

Lack of Framework

Must work efficiently at the

same time innovate
Stop think and change it
Change makes existing
infrastructure redundant
Managers have no clarity as in
other disciplines

Study of innovation is at its

infancy
Philip Kotler with his A to F
model, an approach

Lack of Control

Function of Innovation not well

defined
Companies lack centralized
Innovation management

People do not feel it a part of the

work agenda
Need to make it a function like
any other department
Innovation is non linear still
manageable

Measure it to control it.

Lack of Coordination

Between all departments

Or failure to involve all (some get
isolated)
Collaboration > information flow and
physical spaces > culture of
innovation

Horizontal coordination:

Between departments, between

equals

Vertical coordination:

Top management, general

management and the rest of the
organization

Ideas at different levels may not get

whole hearted approval

Lack of Customer Focus

Innovation is the
increased value for the
customer

Must be accepted by the

customer
Customer has to take
efforts to make a switch
Observing customers
leads to innovation

Not only satisfying

customer needs but
enriching their lives

Innovation Planning

Planning Innovation

Efforts wasted in non priority areas

It enables to align with corporate strategy, allocate resources etc.

Responsibility of the top management

Critical to the survival of the organization

For 3 to 5 years with annual revision of strategy and resource

allocation
Revision due to various reasons

Innovation planning tools

Corporate business
diagnostic

Various tools available

Where it is and where it

wants to go

Strategic planning,
goals, exploit
opportunities

Mission
Corporate goals and
strategy
Innovation goals and
strategy

Planning

Freedom to create

Aligned to the
Corporate Goals

Exploratory

Disruptive

Without pressure
May fall outside the
area
May not to be
implemented

Predictive

Planned

Corporate Mission
& Goals

Mission

Open Statement

Various possibilities

Framework

Guideline

Innovation planning

Guide creativity

Avoid moving out of core

Share with all departments

Set goals for different departments

Innovation Goals

Substantial change in Status Quo.

Goals and not resolutions

Short term and Long term

Measurable and hence manageable

Distributed among departments

Allocation of resources

Innovation Strategy
Risk ?

Framework

Quantity and type

Manage risk

Playing not to loose> conservative >reactive eg. Nokia

Playing to win > risk taking > proactive eg. Apple

High potential for innovation

Levels of Innovation

Business Model Innovation

Process innovation

Business Model
T
E
C
H
N
O
L
O
G
Y

Market Innovation

Innovation in products and services

Innovation budget

Broad guideline

Wastage avoided

Current

New

New

Semi Radical

Radical

Curre
nt

Incremental

Semi-Radical

Implementing the Innovation Strategy

Receive Ideas

Review and classify

Ensure alignment with

corporate mission and goals

Appropriate > process

further
Inappropriate
unattractive > recycle
bin
Inappropriate
potential > top
management

Top down > go ahead

Bottom up > evaluate

Prioritize Proposals
Appropriate Idea>
1) Rank the Portfolio of projects in the
pipeline
1)

Difficulty, potential and risk

2) Innovation Road Map

1)

Scheduling, resource allocation >

project management

3) Resource buckets
1)

Segregation based on
resource allocation budget

Innovation at ......

Total Innovation System

Innovation Process

Strategic
Planning
For
Innovation

Results

Creative Culture

Innovation
records

Innovation
metrics

Thank you