Innovative Process

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Transcript of Innovative Process

  • 8/8/2019 Innovative Process




    K .Povenesan

    B.Eng(H ons) M al,M Sc (Adelaide)

    [RESEARCH PAPER ON INNOVATIVEPROCESS]An argument on what the innovative process is and how you would go about implementing this in an organisational setting.

  • 8/8/2019 Innovative Process



    Innovation in a company setting, is to create or change something, be it a product, a route to market, or

    even back-office business process to generate revenue or provide a cost-savings opportunity. I would call

    it as DARE FOR A CHANGE. Change is like a wave. Either once can ignore it, in which case the change

    will overtake him and will drown him or one can get a surfboard and ride the wave. It may not take him

    where he thought he would be, but it will be a whole lot better than drowning. Organizations that are

    innovative are change-ready.

    According to Peter F. Drucker, The best way to predict the future is to create it. We are facing

    changes that cannot be addressed with traditional methods, because change itself has changed. Solutions

    that worked in the past now simply cause more problems. A whole new perspective is needed to approach

    breakthrough change with success.

    A business concept or model is a framework for identifying how ones business creates, delivers, and

    extracts value. In today's world of discontinuous change, there is no continuity without constant renewal. A

    survey found that more than 90% of large organizations are committed to innovation. (In this case, ive

    taken my company as a case study) Yet when managers of my companies were asked to describe our

    corporate innovation system, almost none of them could do it. One explanation for this mismatch is that

    top management is just paying lip service to innovation and has no intention of really working hard on it.

    Another and far more likely explanation is that senior leaders do not have a clear, well-developed model of

    what innovation looks like as an organizational capability. Since they don't know what it looks like, they

    don't know how to describe or build it. Innovation applies to all business activities, not just end products.

    Innovation can be in logistics such as in the case of Wal-Mart, merchandising like Starbucks, and selling

    like Dell. Pioneers rethink the entire business concepts & build new business models from ground up.

    Today greatest amount of wealth goes to those who create new business models, create new sources of

    revenue based on changing technology, changing demographics and changing global demand.

    According to Gary Hamel, True innovation is based on the recognition that a business concept

    represents a dozen or so design variables, all of which need to be constantly revisited and constantly


    Managers have to think creatively & holistically about their entire business concept. Strategic

    innovation differs from product innovation. Companies today can succeed through innovative strategies

    alone. Southwest Airlines, Dell, IBM, EBay etc. succeeded through innovative strategies. Innovations need

    not be risky, but something that changes customer expectations & competitiveness for the better. Only

    innovation creates new wealth. Stock markets reward only those with successful innovation.

    I would propose my company a local oil and gas corporation an innovation process which can be

    supported by current organizational structure and I selected after considering companies strengths and

  • 8/8/2019 Innovative Process



    weaknesses with minimal tolerance for risk within the company. Will the culture within the corporation

    support innovation development procedures? Another question that ponders me, which will be discussed

    later section.

    Practical innovation is about taking ideas and new thinking and focusing them into a direction and then

    executing that direction; in other words, starting with the thinking, creating the strategy (strategic planning)

    and then executing the strategy. This focuses the innovation on real-time problem solving.The innovation process is divided into two broad modes of thinking: Divergent and

    Convergent. The Divergent mode lies at the heart of the Strategic Innovation approach. It is open-

    ended, exploratory, and inquisitive, deploying non-traditional, creative thinking and future visioning

    techniques. It includes exploratory consumer/customer insight research, qualitative exploration of

    industry/market trends, and speculates on possible industry discontinuities, etc.

    It is here, with the notion of Divergent thinking that my organization often fails in their attempts to

    innovate. Believing that it is frivolous, blue sky, time consuming and slows time to market, they choose to

    minimize or neglect it.Impatient for short-term success, driven by quarterly scorecards, or constrained by a corporate mindset

    that has to demonstrate activity and quickly get to the answer, my corporation find it hard to step back

    and diverge. This often results in predictable, uninspired, incremental innovations that clog the pipeline

    and take a great deal of time and resources to manage.

    In reality they could have far greater impact had they taken the time to diverge at the outset,

    acknowledge their blind spots and explore potentially fruitful areas, and fill the pipeline with well-

    grounded, bigger ideas that offer greater potential.

    It is Divergent thinking, then, that opens the door to the possibility of identifying breakthroughs. Mycompany have no difficulty generating ideas for new products. During this Divergent mode it is important

    to explore other areas for innovation, such as new ways to work with external partners, communicate with

    consumers or enable faster time-to-market. This is true even if the effort is focused on new products, since

    these other factors directly impact the success or failure of the new product concepts.

    Subsequently, through Convergent processes that call for traditional business tools, techniques and

    data analysis, potential opportunities are evaluated, prioritized, refined and then often moved through a

    formal decision-based Stage Gate process until the most promising ones are implemented. Throughout

    the entire process, a focus on short-term opportunities that leverage low hanging fruit is paired with thesearch for mid- and long-term breakthrough growth strategies.

    While the elements of the process generally occur in a particular sequence there is not one single, rigid

    road map the path is non-linear, modular and responsive to the needs of the moment. It is flexible and

    creative, providing the glue, the spark and the artistic magic that weaves together the dimensions of

    Strategic Innovation in real-time.

  • 8/8/2019 Innovative Process



    The elements of the Managed Innovation Process vary depending on the business challenge (growth

    strategy, product innovation, packaging innovation, etc.), but broadly speaking is as follows:

    The process is designed and managed to create strategic alignment the enthusiastic internal support

    among key stakeholders required to galvanize an organization around shared visions, goals and actions.

    Industry Foresight provides a top-down perspective that seeks to understand the complex forces

    driving change, including emerging and converging trends, new technologies, competitive dynamics,

    potential dislocations and alternative scenarios.

    Consumer/Customer Insight provides a bottom-up perspective, a deep understanding of both the

    articulated (explicitly stated) and unarticulated (latent or unrecognized) needs of existing and potential


    My firms innovation process includes wide range of activities implemented from the genesis of the

    initial idea through its realization. This therefore involves research & development, industrial legal

    protection, launches of production and ultimately use of innovations in practice.

    One of the first challenges in the innovation process is to generate ideas. Almost 60% of my group of

    companies responded that they are unable to generate enough innovative ideas to build a pipeline of new

    products or support ongoing process change. To fill this pipeline, 56% of them suggest that our

    organisations rely on cross-functional teams, while some 40% work with consultants. But even with these

    teams in place, results are often disappointing. But it gets worse: when asked about the most difficult part

    of the innovation process, very few of them suggest that ideation is the biggest bottleneck. Almost 60% of

  • 8/8/2019 Innovative Process



    them report that taking good ideas and bringing them to implementationwhether introducing a new

    product or transforming a business process-is by far the most challenging aspect of corporate innovation.

    Companies like Google and Apple best typify the corporate culture that actively generates innovative

    activity. I would like to have the same in my corporation as one of the key factors is the ability to accept

    some loss of control. All companies face a trade-off between control and adaptability. At here, we shall be

    explicit about our willingness to live with a bit less control in exchange for more flexibility.This loss of control isnt really a loss-its largely a transfer from senior managers to the wider

    companies community. As responsibility for coming up with exciting new process and product ideas gets

    pushed out fu