Innovation

Managemen

t

WBB10202

Chapter 7:ORGANISATIONAL RESOURCES

Innovation

Manageme

nt

WBB10202

2

Organizational Resources

1. People2. Intellectual Property3. Access to Information4. Technology5. Marketing and Sales6. Time7. Distribution8. Customers9. Suppliers10.Production Capability11.Operational Facilities12.Finance

Innovation

Manageme

nt

WBB10202

3

1. People

The most important organizational resource/asset. may be the most difficult resource to manage. can come from different:

- Disciplines- ethnic backgrounds- philosophies of life and living, - Aspirations- Talents

Innovation

Manageme

nt

WBB10202

4

2. Intellectual Property

Organisation/intellectual property is an organizational asset and needs to be actively protected and disseminated throughout the organization.

much of the experience and knowledge is seldom documented in such a way as to be of use in the future.

Includes:- formal engineering

drawings- laboratory results- test data- customer concerns

- all formalized documentation models used to demonstrate feasibility

- notebook data- hand sketches (usually

discarded)- working models

Innovation

Manageme

nt

WBB10202

5

3. Access to Information

Organizations have not been reluctant to invest in information systems.

The inability to communicate adequate information at the appropriate level continues to limit performance.

There is no doubt that certain information must be limited to those who have a need to know.

Innovation

Manageme

nt

WBB10202

6

4. Technology

The many descriptions of technology:- Technology is what it takes to convert resources into products and services.

- Technology is the knowledge and resources needed to achieve a goal;

- Technology is a body of scientific and engineering knowledge that can be applied to the design of new products

- Technology represents the artifacts developed from applying the principles of science and engineering

Innovation

Manageme

nt

WBB10202

7

4. Technology

Technology drives most innovative organizations - innovator to understand the level of technological knowledge and expertise available by discipline both within and outside the organization.

Knowledge of the technologies- Product technologies- Production technologies

- The scope required to produce the product- new production facilities are required, there will also be new production technologies.

Innovation

Manageme

nt

WBB10202

8

innovation = invention +

implementation/commercialization

something must be sold or some action must take place for innovation to occur.

The innovator may or may not be knowledgeable in marketing and sales, but the innovator needs to understand the role that marketing and sales will play in the success of the innovation.

5. Marketing and Sales

Innovation

Manageme

nt

WBB10202

9

The type of innovation will largely determine the marketing and sales issues.

Incremental innovation:- critical issues

- the impact on current products

- the need to create awareness

- the degree of acceptance among the current customer base

5. Marketing and Sales

Innovation

Manageme

nt

WBB10202

10

Top-down projects - No major problem because the resources will be

provided. - decisions related to marketing and sales will go through

traditional channels. The bottom-up innovator

- faces more serious problems; specialized knowledge and a single discipline experience

- general problems with introducing a new idea can be minimal - get support from immediate management in the initial

stages- get support in many disciplines.

5. Marketing and Sales

Innovation

Manageme

nt

WBB10202

11

6. Time

a vital resource in today's competitive global marketplace.

A major issue - the time-to-decision. - guided by a timetable- Managing cycle time provides a better approach when

dealing with innovation.

- Cycle time includes three distinct interacting elements:

- Time

- Timing

- Cycle duration

Innovation

Manageme

nt

WBB10202

12

6. Time

Interacting elements in Cycle time: - Time

- a commodity and a business resource. It cannot be reclaimed or recycled.

- how to use it more effectively- Timing

- Choosing when to introduce new product.- Realistic timing begins at the top of the organization.

- Cycle duration- the time required to accomplish a task independent of its

size or scope.- the length of time it takes to meet some objective that

begins at point "A" and ends at point "N."

Innovation

Manageme

nt

WBB10202

13

The distribution system involves three distinct functions:

1. the means by which the organization sells its products

2. the physical plant and equipment that move the product from the warehouse to the customer

3. customer service

Too often organizations fail to recognize the costs associated with developing and maintaining these three distribution functions.

7. Distribution

Innovation

Manageme

nt

WBB10202

14

1. The ways/methods the organization sells its products- Organizations sell their products through:

- direct sales force- independent representatives- various dealer organizations- Distributors- various combinations.

- These sources require an investment of organizational resources (time, energy, and money).

- These selling organizations undergo changes just like any other organizational entity.

7. Distribution

Innovation

Manageme

nt

WBB10202

15

8. Customers

Can provide valuable input, but primarily for improving products and processes that already exist.

Do not expect a breakthrough innovation from a customer.

Can be a valuable resource when the organization: - knows the customer's needs- understands how the customer uses the equipment or service.

Innovation

Manageme

nt

WBB10202

16

9. Suppliers

provided a major resource long before downsizing and outsourcing became popular.

suppliers in all business areas provide a valuable resource. - Example: A particular component may not be

commercially available so the innovator begins to dig into areas outside his personal knowledge or experience instead of working with organizations that already have the required basic knowledge.

Innovation

Manageme

nt

WBB10202

17

9. Suppliers

many organizations have become assembly operations-many manufacturers are primarily assembly operations.

-The major emphasis is on design and the negotiation of contracts to produce components to specification, combined with very efficient assembly and distribution systems.

Innovation

Manageme

nt

WBB10202

18

10. Production Capability

Innovators need to understand the availability of both the facilities and the process know-how.

Several questions must be considered and answered within the scope of the innovation.

- Will the proposed product be produced on existing equipment, or will new equipment be needed?

- If existing equipment is used, will it lengthen the development time?

- If new production equipment is necessary, what level of investment may be necessary?

- Are the pilot plant or experimental facilities available?

Innovation

Manageme

nt

WBB10202

19

11. Operational Facilities

essential resource for innovators and help reduce the time from concept to implementation/commercialization.

The innovator requires adequate tools to perform at a high performance level

Example:

- Computer: using the best of available search engines provides the means for simplifying the acquisition of required data.

- Communication facilities must meet the needs of the innovation.

All of these tools allow the innovator and the team to reduce the time from idea to implementation.

Innovation

Manageme

nt

WBB10202

20

12. Finance

To recognize the limitations of the organization's financial resources.

Investments will vary depending on the scope of the innovation. - incremental innovation: not a problem. - radical innovation: require significant funding.

The ability to finance an innovation in innovation process stages needs to be assessed in relation to the organization's ability to provide the financial resources.

Innovation

Manageme

nt

WBB10202

21

12. Finance

Financial resources may also be required to fund:- additional people with new

competencies and skills- upgraded information resources - royalty payments on imported

technologies - new resources for marketing, sales, and

distribution

Innovation

Manageme

nt

WBB10202

Thank you….

22