Innovation Concepts in Business Management

A company's strengths, crucial for success, can paradoxically make a company resistant to change, thus obstructing its ability to see the necessity of adaptation.

A resistance to adopting external innovations because they were not developed internally, even if a solution is demonstrably better.

Western Union's rejection of Alexander Graham Bell's invention (the telephone).

IBM's slow response to the threat of networking technologies nearly caused a financial crisis.

Small businesses may fail to recognize necessary changes to their strategies due to limited and self-referential interaction outside their immediate networks

Introducing new products or services.

Improving how products/services are created or delivered.

Changing how a product/service is perceived by the customer.

Fundamental changes in underlying thought processes of an organization.

Categories for classifying types of innovation (product, process, position, paradigm).

The coordination and management of a company's sourcing, production, delivery, and other processes.

Transforming potential ideas into reality by weaving together different knowledge threads (technology, market, competitors) into a successful innovation.

A company using outsourcing and coordination to manage its supply chain or other functions.

The initial phase of transforming ideas into reality is filled with uncertainty about the idea's feasibility and success.

Developing an innovation involves substantial investments in time, money, and resources for research, development, market studies, and testing.

Adapting existing elements (like components) for use in different markets or applications.

Obtaining a strategic advantage by finding new ways to do things.

The eventual stage where an improved innovation can be introduced to the intended market (internal or external).

Creating a comprehensive business plan is crucial for entrepreneurial success during the innovation process, considering all costs and factors.

An advantage obtained in the market as a result of implementing innovation.

A company's ability to outperform competitors, usually through innovation.

Maintaining a balance between creative problem-solving and project management for sticking to resource limits.

The choice of how to achieve a competitive advantage through innovation.

Bringing and combining different knowledge sets from diverse team members.

Applying strategies to manage potential risks in innovation projects.

Improving existing products or services through small, gradual changes.

Creating entirely new products, services, or approaches.

Fundamental shifts in how a business or industry operates.

Targeting businesses to serve huge, low-margin markets.

Changing how a business operates to create value.

The process of deciding where and how to innovate, considering explored and unexplored areas.

Choosing which innovative projects to pursue from a variety of options, balancing risk and reward.

Improving existing products or services, not a complete change.

Developing entirely new products or approaches, fundamentally different.

A framework for categorizing innovations based on products, processes, positions, and paradigms.

Creating new value by finding innovative solutions to social problems.

The motivations behind companies developing new products, processes, or approaches.

Evaluating the strengths and weaknesses of different innovation outcomes.

Obstacles in managing the innovation process, illustrated using overlapping circles.

Focusing on the continuous innovation process rather than isolated events.

How innovations from one industry affect others.

How a perceived 'novelty' influences innovation decisions.

A definition of innovation and its impact extending beyond profit.

Examining why some organizations struggle to manage innovation.

Using past failures efficiently and rapidly assessing innovations.

Critiquing how different stages in managing innovation have evolved over time.

Crucial components within an innovation funnel to drive organizational innovation.

Reasons why innovation efforts may not achieve desired success.

The effect of decision-making in innovation on possible errors, and preventative measures.

The motivations behind a company's development of new products, processes, or approaches.

Evaluating the strengths and weaknesses of different innovation outcomes.

Obstacles in managing the innovation process, illustrated using overlapping circles.

Focusing on the continuous innovation process rather than isolated events.

How innovations from one industry affect others.

The influence of perceived 'novelty' on innovation decisions.

A definition of innovation and its impact extending beyond profit.

Examining why some organizations struggle to manage innovation.

Using past failures effectively and rapidly assessing innovations.

Critiquing how different stages in managing innovation have evolved over time.

Crucial components within an innovation funnel to drive organizational innovation.

Reasons why innovation efforts may not achieve desired success.

The effect of decision-making in innovation on possible errors, and preventative measures.

Creating value by innovatively addressing social problems.

Social innovation faces unique challenges like measuring impact, securing funding, and addressing social equity.

Creativity is a vital component of innovation, but it's not the sole factor. Innovation requires creativity, combined with other elements like market analysis and execution.

A supportive organizational culture encourages creative problem-solving and innovation. This includes fostering experimentation, open communication, and risk-taking.

IDEO's culture emphasizes collaboration, experimentation, and user-centric design. These elements encourage both creativity and innovation.

Adapting the 'web of culture' (Johnson & Scholes) by changing key aspects like values, systems, and practices to foster a more innovative culture.

A human-centered design approach that emphasizes empathy, definition, ideation, prototyping, and testing. This framework enhances innovation through user-centric problem-solving.

The IDEO project involved iterative design improvements, focusing on user empathy and testing. Using the design thinking approach, they improved everyday items.

Organisations increasingly depend on input from beyond the company walls—customers, suppliers, and communities—to drive innovation by understanding and anticipating market needs.

Organizations face numerous obstacles when utilizing various innovation sources. This includes managing diverse resources, conflicts, and ensuring the quality and application of innovation.

Selecting the right ideas is crucial for organizational innovation success.

Incremental portfolios focus on improving existing offerings, while radical portfolios focus on developing entirely new approaches.

A project-dominant perspective isolates projects, limiting innovation by potentially ignoring the wider organizational context.

Six crucial factors should guide effective innovation selection, including market potential, resource alignment, competitive advantage, feasibility, alignment with strategy, and risk assessment.

Unilever faced difficulties in selecting innovative ideas due to uncertainty about market response and potential failures.

Intellectual Property Rights (IPR) are crucial for innovation by protecting inventions and creations, encouraging investment, and fostering competition.

Henderson's 2001 model highlights how organizational structure and culture impact innovation.

Patents, trademarks, copyrights, and trade secrets are different forms of intellectual property protections.

Patents grant exclusive rights, leading to increased profits and wider market shares.

Exclusive rights can lead to higher prices for consumers and hinder competition.

The Business Model Canvas's nine elements (customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, cost structure) are crucial for a commercially viable innovation.

Entrepreneurship is a key method for bringing innovation to the market, yet customer needs must be understood to achieve widespread adoption.

High-tech SMEs are distinct from low/medium-tech SMEs, possessing younger teams, smaller but potentially larger firms, and a focus on technological novelty, resulting in higher profit margins and global views. Conversely, L/M tech SMEs are more established, often with family/regional management, larger but conservative growth, and regional focus.

A smaller to medium-sized enterprise (SME) focused on established technologies, sustainability, and often with a regional or localized market presence.

A smaller to medium-sized enterprise (SME) focused on new technologies, rapid growth, and a global market presence. Often seen as bootstrap/debt financed

Examples such as: Animal feed Inc, Metal Bash Inc, & Food Inc (Ireland- NutX, Alt Steel, & DairyX) showcase different types of innovations by low to medium-size companies including an entrepreneur-led firm (e.g., Metal Bash Inc).

Making changes to existing things by introducing something new, adding value to customers and contributing to the organization's knowledge.

Innovation is a process, not a one-time event. It involves a series of steps to make changes.

Innovation combines creativity and using existing ideas (exploitation) to gain a competitive edge.

The new or different aspect of an innovation, providing competitive advantage but subjective judgment.

Innovation varies, influenced by novelty degree (incremental/radical), platform, innovation life cycle and business model changes.

Organisations seek growth, profitability, market share gains, operational improvements and achieving customer satisfaction.

Many innovation projects fail (50-90%) due to resource waste, loss of morale and employee resistance.

Key questions for innovation strategies: value creation? Value delivery & capturing? how it is going to happen?

Improving existing products or services gradually.

Creating entirely new products or services.

A cyclical process of introduction, growth, maturity and decline which shows how innovations progress over time.

Long-term cycles of technological innovation and economic expansion.