1. Innovation management
Definition, Phases and Types of Innovation
MBA El.Eng. Natyra Dika-Krluku
February 2019

2. 2

3. Basic concepts
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• Innovation is act or process of introducing
something new which in practice means idea,
method or product
• Launching new products or introducing new
internal process
Menaxhimi i inovacionit is simply the process of
coming up with and introducing new things and
developing the business, one way or the other.

4. 4
Definition of innovation
Innovative management deals with all measures to promote
innovation in organizations and to generate benefits
• New products and services to conquer new markets.
• Improved products and services to stand out from the competition.
• Improve internal processes to strengthen the company from the inside or
to save costs.
• Development of new business models to use new sources of income.
"Innovation" comes from the Latin word "innovare"
and stands for renewal
From an economic point of view, innovation is something new
that brings benefits for an organization or / and for society
innovation management is the systematic promotion of innovations in
organizations and includes tasks of planning, organization, management and
control.

5. 5
7 sources of opportunity that will ultimately drive innovation
Peter Drucker on Innovation
Purposeful innovation results from:
• analysis
• systemic review
• hard work
can be taught, replicated and
learned
#1 The organization’s
own unexpected
successes and failures
and also those of the
competition
#2 Incongruities
especially those in a
process, such as production,
distribution, or incongruities
in customer behavior
#3 Process needs
#4 Changes in
industry and
market structures
#7 New knowledge
#6 Changes in
meaning and
perception
#5 Changes in
demographics

6. 6
Conditions for successful Innovation
• Innovation is work. It requires knowledge, ingenuity,
creativity, etc
• To succeed, innovators must build on their own strengths
• Innovation is an effect in economy and society, a change
in the behavior of customers
To be successful, an innovation has to be simple and it has to be focused. It should
only do one thing or it confuses people and won’t work
Another key factor was to not try to innovate for the
future, but innovate for the present.

7. 7
Improvement
• Improvement, or process improvement,
refers to looking at how something is
done – the steps, roles, and materials
used – and making it more effective and
efficient
• Improvement is also the implementation
something new, but with a lower novelty
degree and it is usually the optimization
or extension of existing.
Innovation
• Innovation is renewal
• Innovation means doing or creating
something that is new in order to grow,
keep up with competition, or be
groundbreaking industry leaders.
• It can be a new process, a new product
that changes the way we live or a new
business model
Improvement vs. innovation

8. The key aspects of innovation management
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• Capabilities– cover the different abilities and resources the organization has for
creating and managing innovation
• Structures – organizational structure, processes, and infrastructure of the
organization
• Culture – is what enables the organization to acquire the capabilities related to
people
• Strategy – is, simply put, the plan the organization has for achieving long-term
success

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Innovation management is two
major pillars
• The shaping of framework conditions,
so that ideas are always created in the
company and implemented into
successful innovations.
• The actual innovation, active search,
development and implementation of
ideas.
The fields of action of innovation management
include
• Future management: Identification of trends and
future opportunities and risks
• Development of the innovation strategy and
planning of the innovation activities
• Organization and roles in innovation management
• Ideas management to find, develop and evaluate
ideas.
• Innovation process for transforming an idea into a
successful innovation
• Designing an innovation culture that promotes
innovation.
• Portfolio management and innovation control
• Dealing with patents and protective rights.
• Open innovation and innovation networks to
exploit external sources of innovation and
resources.
• The diversity of activities in innovation
management also makes it clear that they are
integrated into all business areas.
Tasks and areas of action in innovation
management

10. phases of innovation
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Ideas
• collection of innovation potentials, derivation of ideas, evaluation and
release of ideas.
Concept
• Extensive analysis and derivation of concepts for the solution,
implementation and marketing.
Solution
• Development and testing of the solutions to the finished product.
Market
- Arouse and fulfill a customer's needs by implementing in
procurement, production and logistics as well as marketing and sales.

11. phases of innovation
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3 SOLUTION
• Develop a ready-to-use solution ready for
market.
• Solutions are being developed, prototypes
built and tests carried out.
• it will be released for implementation and
marketing
2 CONCEPT
A concrete and released idea with goals and
expectations, based on the intensive analysis of
the customer requirements
• What are the needs of customers?
• Are there any unfulfilled or unconscious
customer needs?
• Which customer problems are there and
should be resolved?
• What is the importance of needs?
1 IDEAS
An innovation potential is a newly discovered
opportunity for innovation
• An unfulfilled customer requirement
• A problem with the customer
• A possible new market
• A new technical solution
4 MARKET
• bringing the product to the potential
customers.
• These include procurement, production and
logistics
• Marketing and sales activities

12. 5 METHODS TO INSPIRE INNOVATION WITHIN YOUR
ORGANIZATION
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INSPIRE
INNOVATION
Embrace Failure
Dedicate the Right
Resources
Consider Offering
Incentives
Train Employees in
Design Thinking
Expose Employees
to Open
Innovation

13. Sustaining innovation
• It “sustains” a market by building on
one that already exists.
• Innovation that improves existing
products, doesn’t create new
markets or value networks
Types of innovation – market impact
13
Disruptive innovation
• a form of technology that
“threatens” an old one by making it
obsolete or otherwise less
favorable
• helps create a new market and
value network

14. Incremental innovation
• the kind that builds gradually, step-
by-step,
Types of innovation - product change
14
Radical innovation
• moves forward through much larger
leaps.

15. Innovation Matrix
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a form of innovation that
creates a market through a
completely new sales
argument and it has room to
grow
is typically an improvement
on a product or a process in
an old market and thus
doesn’t change the sales
argument of the product
many incremental
improvements can
eventually lead to a dramatic
disruption, even creating an
entirely new market
the most common form of
innovation. It is the constant
progress that's constantly
happening in every business
and is thus a vital factor for
being able to compete
Incremental
innovation
is the dominant
form of innovation
A radical or
disruptive
innovation is one that
has a significant
impact on a market

16. Examples of innovation types
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Radically sustaining Radically new and
disruptive
Incremental sustaining Incremental leading
(to disruptive breakthrough)

17. Monitoring innovation
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The European Commission
provides various tools
• European Innovation Scoreboard
• Regional Innovation Scoreboard
• European Public Sector Innovation
Scoreboard
• Innobarometer
• Regional Innovation Monitor Plus
European Innovation
Scoreboard (EIS)
provides a comparative analysis of
innovation performance in EU
countries
Regional Innovation Scoreboard
(RIS)
a regional extension of the EIS, assessing
the innovation performance of European
regions on a limited number of indicators

18. European Innovation Scoreboard 2018
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Based on AVG performance on 27 indicators,
covering the following aspects
• Condition capture: Human resources, Attractive
research systems, Innovation-friendly environment.
• Investment: Finance support and Firm investments
• Innovation activities: Innovators, Linkages, and
Intellectual assets
• Impacts : Employment impacts and Sales impacts.
Increased
for 5,8%
compare
to 2010

19. THANK YOU!