2. Objectives
• Why Management Innovation maters?
o Global tendencies and benefits
o Which are the most innovative countries and companies.
• What is Management Innovation?
o Concept and implications
o Types of innovations
o Modes of innovations
• How to become a Manager Innovator?
o The innovation challenge
o The innovation process
4. Which are the most innovative
countries?
1 US
2 Germany
3 UK
4 Japan
5 France
6 Switzerland
7 Singapore
8 Canada
Global Innovation Index (GII)
1 Policies
2 Human Capacity
3 Infrastructure
4 Technological Sophistication
5 Markets and Capital
1 Knowledge
2 Competitiveness
3 Wealth
5. Are these countries also the
richest?
1 US
2 Germany
3 UK
4 Japan
5 France
6 Switzerland
7 Singapore
8 Canada
YES or NOT?
6. Which are the leading
innovative companies?
Most Innovative
Companies Ranking
Most Known for its
Innovative…..
1 Apple Products (52%)
2 Google Customer
Experience (26%)
3 Toyota Motor Processes (36%)
4 General Electric Processes (43%)
5 Microsoft Products (26%)
6 Tata Group Products (58%)
7 Nintendo Products (63%)
Business Week & BCG
Ranking (04-07)
2,950 senior executives
3 yr stock returns
revenue growth
margin growth
7. Are these companies also the
richest?
Most Innovative
Companies Ranking
1 Apple
2 Google
3 Toyota Motor
4 General Electric
5 Microsoft
6 Tata Group
7 Nintendo
Business Week & BCG
Ranking (04-07): 19% increase
their revenue.
Innovaro: Sustainable growth
in their price per share in the last
seven years
YES or NOT?
8. Managing Innovation=
Economic Progress
• The world economic progress has been lead by key innovations
and inventions. Changed the way to do businesses.
Joseph Schumpter,
The “Godfather of
Innovation studies"
• Entrepreneurship + innovation: capitalism and
economic progress.
9. 2.-What is Managing
Innovation?
Successful exploitation of new ideas.
leading to the creation of a new product
and service.
It is more than just generating good
ideas
it is the process of growing them into
practical use and bringing them to the
market.
10. Managing Innovation:
Change
Managing innovation in a company involves organizational
changes:
Traditional management principles,
processes and practices.
Alters the way the work of
management is performed:
• Setting goals
• laying out plans
• Motivating and aligning efforts
• Coordinating activities, etc
11. The 4p’s of Innovation
Process
Product
Position
Business
Model
INNOVATION
(incremental……radical) (incremental……radical)
(incremental……radical)(incremental……radical)
12. Exercise: Types of
Innovation
Nissan Leaf
A1: Product
Innovation
E1:
A2: Process
Innovation
E2:
A3: Position
E3:
A4: Business
Model
Innovation
E4:
1 2
3 4
16. The Innovation Challenge
“The best innovators aren’t lone geniuses.
They are people how can take an idea that is obvious in
one context
The best companies have learnt to
systematize that process”
(Hagardon, Sutton 1990)
and apply it in not-so-obvious ways to a
different context.
17. The Innovation Challenge
Out of the box thinking, change in management orthodoxies.
Part of the core business process.
Process that generates innovations continually.
Have a clear structure, be organized and managed.
Innovative organization infrastructure.
Design a clear innovation strategy.
18. The Innovative Organization
Culture of focused creativity, leadership and motivation.
Entrepreneurial talent.
Multifunctional talented team-works.
Information-knowledge infrastructure.
R&D procedures and infrastructure.
Project portfolio management.
.
19. Which functional areas contribute
to the process?
Marketing R&D
Operations Human
Resources
Finance
• Identify customer’s
needs.
• Dev. concepts and
products.
• Pricing and positioning
strategies.
• Launch of products.
• Development of novel
products aligned with
customer needs.
• Process re-
engineering
• ROI Calculations
and pricing
strategies.
• Hiring, developing and
motivating HR.
• Development of a
culture of innovation
20. Ideas
“filtered out”
Ideas
Capturing
the Benefits
Rejected concepts
Ideas coming from
open innovation
Screening
and
selection of
ideas
Idea
Generation
Concepts…
Implementati
on-
Bring to the
maket
Projects…
MARKET
• New product
• New services
• New Process
• New Business Processes
Rejected
Projects
• Company
• Society
• World
Ideas… Value Generation…
21. • Changes begins, looking for customer pains.
• Where companies look for inspiration.
• Find what triggers the innovation process.
• Soft management, creative part.
• Spontaneous, unexpected, accidents.
• Formal methodologies or techniques.
22. Knowledge Pull
Existing technology or a defined
service and tries to find a market for
it.
Knowledge Push
Creation of a new technology or
service for an identified market.
Users as Innovators
Techniques as innovation blitz and
focus groups to get close to
customers.
Recombinant Innovation
Transferring or combining old ideas or
products in new context or mkts.
23. MKT
Research
• Cross Functional
Teams: R&D, MKT
• Creativity
Techniques:
Creativity Sessions
Brainstorming
Innovation Blitz
Morphology Charts
• Full Description of the
products/services
Principal Characteristics
Features, Scopes
Competitive Advantage
Target market
Differentiations offer
Initial Price
Commercialization Strategy
• R&D
• Physical Products
• MKT Methodologies:
Interviews
Surveys online
Testing prototypes
with end customers
Focus groups
QDF
• Investment
• ROI
• Mkt size potentia
• Viability
• Design Procedur
• Quantitative
Screening of a
large number of
ideas
25. • The ultimate purpose of innovation: create value.
Commercial success
Market share
Cost reduction
Knowledge generation
Customer’s lifestyles improvement
Positive changes in society, patents, etc
• They are reflected in:
Bottom line
Specific KPI’s
Economic development: price/earning ratio
26. Conclusion
“We have reached the end of incrementalism
Only those companies that are capable of
creating industry revolutions
will prosper in the new economy.”
-Gary Hamel