Unit – 3
Innovation is a core business
process
Innovation
should be integrated into the core business processes of organizations to drive
growth and competitiveness.
Innovation
is a core business process that involves identifying opportunities, generating
ideas, developing prototypes, testing and refining solutions, and bringing them
to market. It requires cross-functional collaboration, strategic alignment, and
a systematic approach to driving change and creating value.
The
innovation process involves systematically
generating and implementing new ideas to create value for a business.
Innovation as a core business process involves integrating innovation into
every aspect of the organization, from strategy and operations to culture and
customer experience. Here's a detailed breakdown of the innovation process,
laying the foundation, components of an innovation program, and the concept of
curiosity as pain, wave, and waste:
1. Laying the Foundation:
Laying
the foundation for innovation involves creating an organizational culture that
values experimentation, rewards creativity, and embraces risk-taking. It
requires strong leadership, clear vision, and supportive structures and
processes that enable employees to innovate and adapt to change.
a. Leadership Commitment:
- Innovation should be championed and
supported by top-level leadership. This includes allocating resources, setting
goals, and establishing a culture that encourages experimentation and
risk-taking.
b. Culture of
Innovation:
- Foster an environment where creativity and
innovation are valued and encouraged. This involves promoting collaboration,
embracing diversity of thought, and rewarding innovative efforts.
c. Infrastructure and
Resources:
- Provide the necessary tools, resources,
and infrastructure to support innovation initiatives. This may include
dedicated innovation labs, technology platforms, and training programs.
d. Clear Objectives and
Metrics:
- Define clear objectives and key
performance indicators (KPIs) to measure the success of innovation efforts.
This ensures alignment with business goals and helps track progress over time.
Organizations must lay the foundation for
innovation by creating a supportive environment, fostering a culture of
experimentation, and providing resources.
Understanding
the Need for Innovation: Recognize that innovation is essential for staying
competitive, adapting to market changes, and meeting customer demands.
Establishing Innovation Culture:
Foster a culture that encourages creativity, risk-taking, collaboration, and
continuous learning. Leadership plays a crucial role in promoting and
supporting innovation.
Setting
Clear Objectives: Define specific innovation goals aligned with the
organization's overall strategy and objectives. These goals should be
measurable and time-bound.
2. Components of an Innovation
Program:
An
innovation program typically consists of several components, including idea
generation platforms (such as Idea Box or innovation challenges), collaboration
tools, project management systems, and resources for experimentation and
prototyping. These components help organizations streamline the innovation
process and drive successful outcomes.
Idea
Box: An Idea Box is a platform or mechanism for collecting and evaluating innovative
ideas from employees or stakeholders. It encourages creativity, engagement, and
participation by providing a structured way for individuals to contribute their
insights and suggestions for improvement. Implement a platform or system where
employees can submit their ideas for new products, services, processes, or
improvements. Encourage participation from all levels of the organization.
Buzz
Creation: • Buzz
Creation involves generating excitement and momentum around innovative
initiatives or projects within an organization. It leverages marketing
techniques, communication strategies, and social dynamics to create buzz and
generate interest in new ideas, products, or initiatives.
Generate excitement
and enthusiasm around innovation initiatives through internal communication
channels, such as newsletters, meetings, and workshops. Highlight successful
innovations and showcase the impact they have on the business.
Create
a Challenge Book: • Create
a Challenge Book is a method for documenting and addressing specific challenges
or opportunities within an organization. It encourages employees to identify
problems, propose solutions, and collaborate on innovative projects that
address strategic priorities or market needs.
Identify key
challenges or opportunities facing the organization and document them in a
"Challenge Book." Encourage employees to propose solutions and
innovations to address these challenges. Provide resources and support to teams
working on solving these challenges.
3. Three Sources of Curiosity:
An innovation program
may include various components such as idea generation platforms (Idea Box),
initiatives to generate excitement around innovation (Buzz Creation), and
mechanisms for identifying and addressing challenges (Challenge Book).
Three sources of
curiosity, known as Pain, Wave, and Waste, are frameworks for identifying
opportunities for innovation. Pain refers to addressing customer pain points or
unmet needs, Wave involves riding on emerging trends or technologies, and Waste
focuses on eliminating inefficiencies or waste in existing processes.
Three
sources of curiosity: Curiosity can be triggered by pain points (problems or
challenges), waves of change (emerging trends or technologies), and waste
(inefficiencies or opportunities for improvement).
Pain:
Identify pain points or problems faced by customers, employees, or
stakeholders. These pain points represent opportunities for innovation to
create solutions that alleviate or eliminate the source of dissatisfaction.
1. Feel the pain: This sight is familiar to anyone who lives in India or for that
matter any part of this continent (Pakistan, Bangladesh, Srilanka). However,
one day a fellow named Ratan Tata feels the pain of the vehicle owner and
decides to do something about it. He has said:
I observed families
riding on two-wheelers — the father driving the scooter, his young kid standing
in front of him, his wife seated behind him holding a little baby. It led me to
wonder whether one could conceive of a safe, affordable, all-weather form of
transport for such a family
Eventually, Tata Nano is born. If we use I-squared-P definition, Tata Nano is not an innovation
as yet. However, this story tells us the power of, what I consider, the biggest
source of innovation: ability to feel the pain deeply within. It is
certainly not a sufficient condition. Everybody who has felt the pain of the
scooter owner does not get an insight. However, without the pain, there is no
possibility of even thinking of the idea.
Wave:
Stay attuned to emerging trends, technologies, and market shifts. Proactively
explore new opportunities that align with these waves of change. Embrace
disruption and seek to capitalize on emerging trends before competitors do.
2. See the wave: In 1979, when Xerox PARC scientist Larry
Tessler showed their lab to a bunch of hackers, he thought, “They wouldn’t
understand what we were doing, just see pretty things dancing on the screen”
(source: iCon).
What the hackers thought was a different thing altogether. Hacker team leader
was Steve Jobs who says in his interview:
I was so blinded by
the first thing that they showed me which was the graphical user interface
(GUI). I thought it was the best thing I ever saw in my life. Remember, what we
saw was incomplete. They had done a bunch of things wrong. But it had the germ
of the idea and they had done it very well. And within ten minutes, it was
obvious to me that all computers will work like this.
What Steve saw within ten minutes as "obvious" is what I
call: Seeing the wave. It needs deep understanding of the market
and technology trends. Steve didn’t have the same confidence when he and Steve
Wozniak set out to build Apple I.
Waste:
Look for inefficiencies, redundancies, or areas of waste within the
organization's processes, resources, or systems. Innovate to streamline
operations, reduce costs, and optimize resource utilization.
3. See the waste: When you start “Please
consider the environment before printing this mail” campaign, you are
responding to the waste you have seen near the printer. It is no surprise that
“muda” which means waste in Japanese is considered a core element of lean
process mastered by Toyota.
By
incorporating these components into the innovation process and embracing
curiosity as a driving force, businesses can establish a robust framework for
continuous innovation and sustainable growth.
4
1.
Transformation
of Business and Business Processes:
Innovation drives
business transformation by enabling organizations to rethink traditional
business models, processes, and strategies. It involves adapting to new market
conditions, leveraging emerging technologies, and creating value for customers
in innovative ways.
Innovation can
transform businesses by enabling them to adapt to changing market conditions,
streamline processes, and create new revenue streams.
This refers to fundamental changes in the way
a business operates or conducts its activities to adapt to market demands,
technological advancements, or strategic shifts.
Example: Nokia's transition from a paper
mill to a telecommunications company in the late 20th century. Initially, Nokia
was a paper manufacturer, but recognizing the emerging opportunities in the
telecommunications industry, it shifted its focus to mobile phones, ultimately
becoming a global leader in the mobile phone market.
Example:
Digital Transformation - Netflix:
Netflix transformed the way people consume
entertainment by shifting from a traditional DVD rental business to a leading
streaming platform. Initially, Netflix mailed DVDs to customers, but they
recognized the emerging trend of online streaming. They invested in building a
vast library of digital content and developed a user-friendly platform for
streaming movies and TV shows. This transformation not only disrupted the DVD
rental industry but also revolutionized the entertainment industry as a whole.
Example: Agile Manufacturing - Toyota:
Toyota implemented the Toyota Production
System (TPS) to streamline manufacturing processes and eliminate waste. One key
aspect of TPS is "Just-in-Time" production, where parts are only
ordered and manufactured when needed, reducing inventory costs and improving
efficiency. By adopting lean manufacturing principles and empowering employees
to identify and solve problems, Toyota transformed its operations and became a
global leader in automotive manufacturing.
2.
Recognition
and Execution Strategies:
Recognition
and execution strategies are essential for identifying innovative ideas and
bringing them to fruition. They involve recognizing opportunities.
:
Organizations must recognize innovative ideas and effectively execute them to
drive business transformation. This involves identifying opportunities for
innovation and effectively implementing strategies to capitalize on them.
Example: Apple's recognition of the
potential of touchscreen technology and the execution of the iPhone. Apple
recognized the growing demand for intuitive and user-friendly smartphones. They
executed a strategy to develop the iPhone, which revolutionized the mobile
phone industry with its innovative touchscreen interface and app ecosystem.
Example: Google's 20% Time:
Google allows employees to dedicate 20% of
their work time to pursue passion projects or innovative ideas. This strategy
led to the creation of products such as Gmail and Google News. For instance,
Gmail originated from an employee's personal project to solve email storage
issues. By giving employees autonomy and resources to explore new ideas, Google
fosters a culture of innovation and drives continuous improvement.
Example:
Design Thinking at IDEO:
IDEO employs design thinking methodologies
to tackle complex problems and drive innovation. For example, when redesigning
the shopping cart for a major retailer, IDEO observed customers' shopping
behaviors and iteratively prototyped different cart designs. This
human-centered approach resulted in a more ergonomic and user-friendly shopping
cart, enhancing the overall shopping experience for customers.
3.
Creating and Sustaining an Innovative Culture:
This entails fostering an environment within
an organization that encourages creativity, experimentation, and risk-taking to
drive continuous innovation.
Building
an innovative culture requires leadership support, a focus on learning and
experimentation, and mechanisms for recognizing and rewarding innovation.
Example: Google's innovative culture,
characterized by its "20% time" policy, where employees are
encouraged to spend 20% of their work time on projects of their choice. This
policy has led to the development of products such as Gmail and Google Maps,
showcasing Google's commitment to fostering innovation.
Example:
Zappos' Core Values:
Zappos prioritizes building a strong
company culture based on core values such as delivering exceptional customer
service and embracing change. For instance, Zappos encourages employees to
experiment with new ideas and take calculated risks, fostering an environment
where innovation thrives. This innovative culture has enabled Zappos to
differentiate itself in the competitive e-commerce landscape and build long-term
customer loyalty.
4.
Learning Organizations:
These are organizations that prioritize
learning and adaptability to stay competitive in dynamic environments. They
encourage knowledge sharing, experimentation, and continuous improvement.
Example: Amazon's culture of innovation and
experimentation, epitomized by initiatives such as Amazon Web Services (AWS).
AWS began as an internal project to improve Amazon's infrastructure but evolved
into a leading cloud computing platform. Amazon's culture of learning and
innovation enabled it to transform from an online bookstore into a diversified
tech giant.
Example: Pixar's Creative
Process:
Pixar embraces a culture of continuous
learning and experimentation in its creative process. For instance, when
developing the animated film "Finding Nemo," Pixar's animators
studied marine biology and visited aquariums to ensure accuracy and authenticity
in the film's depiction of underwater life. This commitment to learning and
attention to detail has contributed to Pixar's success in producing critically
acclaimed and commercially successful films.
5.
Protecting Innovation – Intellectual Property:
This
involves safeguarding the intellectual property (IP) assets of a business, such
as patents, trademarks, copyrights, and trade secrets, to maintain a
competitive advantage and prevent unauthorized use or replication by
competitors.
Intellectual
property rights such as patents, trademarks, and copyrights can help protect
innovative ideas and inventions.
Example: Coca-Cola's protection of its
secret formula for Coca-Cola. Coca-Cola has kept its formula closely guarded as
a trade secret for over a century, preventing competitors from replicating its
iconic taste and maintaining its market dominance in the soft drink industry.
Example: Apple's Patents:
Apple invests heavily in research and
development to innovate and create groundbreaking products such as the iPhone
and iPad. To protect its intellectual property, Apple files patents for its
inventions, designs, and technologies. For instance, Apple holds numerous
patents related to the iPhone's design, user interface, and proprietary
technologies, preventing competitors from replicating its innovations and
maintaining its competitive edge in the market.
6.
Innovation Index and Successful Innovation Case Studies:
An innovation index measures the level of
innovation within an organization or industry, often based on metrics such as
research and development (R&D) investment, patent filings, and new product
launches.
Studying
successful innovation case studies can provide insights into effective
innovation strategies and best practices.
Example: The Global Innovation Index (GII),
which ranks countries based on their innovation capabilities and outcomes.
Countries such as Switzerland, Sweden, and the United States consistently rank
highly on the GII due to their strong innovation ecosystems and investments in
R&D.
Successful innovation case studies showcase
examples of organizations that have achieved significant success through
innovation initiatives, such as product launches, process improvements, or
business model innovations.
Example: Tesla's development of electric
vehicles and energy products. Tesla disrupted the automotive and energy
industries with its innovative electric vehicles, solar energy solutions, and
battery technology. The company's success demonstrates the transformative
impact of innovation on industries and markets.
Example:
Tesla's Electric Vehicles:
Tesla disrupted the automotive industry by
introducing electric vehicles with cutting-edge technology and long-range
capabilities. For instance, the Tesla Model S was the first electric car to
achieve a range of over 300 miles on a single charge, challenging the
perception of electric vehicles as impractical or limited in range. Tesla's
relentless focus on innovation and sustainability has propelled it to become a
leader in the electric vehicle market.
Example: Airbnb's Disruptive Platform:
Airbnb transformed the hospitality
industry by creating a platform that connects travelers with unique
accommodations offered by individual hosts. By leveraging technology and the
sharing economy, Airbnb disrupted the traditional hotel industry and provided travelers
with more affordable and personalized lodging options. Today, Airbnb operates
in over 1,00,000 cities worldwide and has revolutionized the way people travel and
experience new destinations.
These examples
demonstrate how innovation and business transformation can lead to significant
growth, competitive advantage, and industry disruption. By recognizing
opportunities, implementing effective strategies, fostering a culture of
innovation, and protecting intellectual property, organizations can drive successful
business transformation and thrive in today's rapidly evolving marketplace.
A
patent is a form of intellectual property (IP) right granted by a government
authority to an inventor or assignee, giving the patent holder the exclusive
right to make, use, sell, and distribute an invention for a limited period of
time, typically 20 years from the filing date of the patent application.
Patents are granted in exchange for disclosing the details of the invention to
the public, allowing others to learn from and build upon the innovation once
the patent term expires.
There are three main
types of patents:
1. Utility Patents:
These patents protect the functional aspects of inventions, including machines,
processes, compositions of matter, and improvements thereof. Utility patents
are the most common type of patent and cover a wide range of innovations.
2. Design Patents:
Design patents protect the ornamental or aesthetic features of a product's
design. They are granted for the unique visual appearance of an invention and
do not cover its functional aspects.
3. Plant Patents:
Plant patents protect new varieties of plants that have been asexually
reproduced, such as through cuttings or grafting. These patents are granted to
plant breeders who have developed distinct and new varieties of plants.
To
obtain a patent, an inventor or applicant must file a patent application with
the relevant patent office, such as the United States Patent and Trademark
Office (USPTO) in the United States or the European Patent Office (EPO) in
Europe. The patent application typically includes a detailed description of the
invention, along with any necessary drawings, claims defining the scope of the
invention, and any supporting documentation.
The
patent office examines the patent application to determine if the invention
meets the criteria for patentability, including novelty, non-obviousness, and
utility. If the application meets these requirements and passes the examination
process, the patent office grants a patent, providing the inventor with
exclusive rights to the invention for the duration of the patent term.
Patents
play a crucial role in incentivizing innovation by rewarding inventors for
their creativity and investment in research and development. They provide inventors
with a legal framework to protect their inventions from unauthorized use or
exploitation by others, thereby fostering innovation, economic growth, and
technological progress.
A
trademark is a type of intellectual property (IP) protection that provides
exclusive rights to use a particular name, logo, symbol, design, or combination
thereof to distinguish goods or services of one entity from those of others in
the marketplace. Trademarks help consumers identify and differentiate products
or services and signify their source or origin.
Key aspects of
trademarks include:
1. Distinctiveness:
To be eligible for trademark protection, a mark must be distinctive, meaning it
must be capable of identifying the goods or services with which it is
associated and distinguishing them from those of others. Distinctiveness can be
inherent, meaning the mark is inherently distinctive and unique, or acquired
through use in commerce.
2. Use in Commerce:
Trademark rights are typically acquired through actual use of the mark in
commerce to promote or sell goods or services. In some jurisdictions, including
the United States, trademark rights can also be obtained through registration
with the relevant trademark office, even before the mark is used in commerce.
3. Registration:
While registration is not always required to establish trademark rights, it
provides several benefits, including a legal presumption of ownership and
validity of the mark, nationwide protection, and the ability to use the ®
symbol. Trademark registration involves filing an application with the
appropriate trademark office, such as the United States Patent and Trademark
Office (USPTO) in the United States or the European Union Intellectual Property
Office (EUIPO) in Europe, and satisfying certain requirements, such as
providing a specimen of use and paying the required fees.
4. Protection:
Trademark protection grants the owner the exclusive right to use the mark in
connection with the goods or services for which it is registered and to prevent
others from using confusingly similar marks that could cause consumer confusion
or dilute the distinctiveness of the mark. Trademark owners can enforce their
rights through legal action, such as trademark infringement lawsuits or
opposition proceedings before trademark offices.
5. Duration:
Trademark protection can last indefinitely, as long as the mark continues to be
used in commerce and maintained through periodic renewals or declarations of
continued use. In most jurisdictions, trademarks are initially registered for a
specific term, such as 10 years, and can be renewed indefinitely as long as the
mark remains in use and the renewal fees are paid.
Examples of
well-known trademarks include:
Coca-Cola:
The distinctive red and white logo and the name "Coca-Cola" are
registered trademarks of The Coca-Cola Company, used to identify its soft drink
products.
Nike: The
"swoosh" logo and the name "Nike" are registered trademarks
of Nike, Inc., used to identify its athletic footwear, apparel, and
accessories.
Apple:
The bitten apple logo and the name "Apple" are registered trademarks
of Apple Inc., used to identify its electronic products, including iPhones,
iPads, and Mac computers.
Trademarks
are valuable assets for businesses, as they help build brand recognition,
loyalty, and goodwill among consumers, and protect the reputation and integrity
of the brand in the marketplace.
Copyright
is a form of intellectual property protection that grants the creator of an
original work exclusive rights to its use and distribution for a limited period
of time. It protects various types of creative works, including literary,
artistic, musical, and dramatic works, as well as software code and
architectural designs.
Key aspects of
copyrights include:
1.
Originality: Copyright protection
applies to original works of authorship fixed in a tangible medium of
expression. This means that the work must be independently created by the
author and possess a minimal degree of creativity. It does not protect ideas,
facts, or concepts, but rather the expression of those ideas in a tangible
form.
2. Exclusive Rights:
Copyright grants the creator or owner of a work the exclusive rights to
reproduce, distribute, perform, display, and create derivative works based on
the original work. These rights allow the copyright holder to control how their
work is used and to benefit financially from its exploitation.
3. Duration:
The duration of copyright protection varies depending on several factors,
including the type of work and the jurisdiction. In many countries, including
the United States and members of the European Union, copyright protection
generally lasts for the life of the author plus an additional 70 years after
the author's death. For works created by corporate entities or created anonymously
or under a pseudonym, copyright protection typically lasts for 95 years from
the date of publication or 120 years from the date of creation, whichever is
shorter.
4. Registration:
In many jurisdictions, copyright protection is automatic upon the creation of
the work and does not require formal registration with a government authority.
However, registration may provide certain benefits, such as establishing a
public record of the copyright claim and facilitating enforcement actions in
court. In the United States, for example, copyright registration with the U.S.
Copyright Office is a prerequisite for filing a lawsuit for copyright
infringement.
5. Public Domain:
Once copyright protection expires, the work enters the public domain, where it
can be freely used, copied, distributed, and adapted by anyone without
permission from the copyright holder. Works in the public domain contribute to
the cultural heritage and collective knowledge of society.
Examples of works
protected by copyright include:
Literary
works: Books, articles, essays, and poems
Artistic
works: Paintings, drawings, sculptures, and photographs
Musical
works: Songs, compositions, and musical recordings
Dramatic
works: Plays, scripts, and screenplays
Audiovisual
works: Films, videos, and television programs
Software
code: Computer programs, applications, and databases
Copyright
plays a crucial role in fostering creativity, encouraging the production of new
works, and rewarding authors and creators for their artistic and intellectual
contributions to society. It provides an incentive for innovation and
expression while balancing the interests of creators with the public's right to
access and use creative works.
Unit - 5
Assessing
and Improving the Innovation:
Innovation readiness assessment:
Organizations can assess their readiness for innovation by evaluating factors
such as leadership support, organizational culture, and resource allocation.
• Innovation
audit: An innovation audit involves systematically reviewing an
organization's innovation processes and outcomes to identify strengths,
weaknesses, and areas for improvement.
• Measuring
the innovation capability of an organization: Innovation
capability can be measured by assessing factors such as leadership support,
organizational culture, and the effectiveness of innovation processes.
• Managing
discontinuous innovation: Discontinuous innovation involves
introducing radical changes that disrupt existing markets. Organizations must
effectively manage discontinuous innovation to drive growth and
competitiveness.
• An
integrated approach to innovation management: An integrated approach
involves aligning various elements of the organization, including strategy,
culture, processes, and resources, to support and drive innovation. It provides
effective measures to improve innovation within an organization.
Innovation Readiness Assessment
An
innovation readiness assessment is a tool used to evaluate an organization's
preparedness and capacity for innovation, identifying strengths, weaknesses,
and areas for improvement.
Measure their innovation
capability
Organizations
can measure their innovation capability by evaluating factors such as
leadership support, organizational culture, resource allocation, collaboration,
idea generation and implementation processes, and the ability to adapt to
change and market dynamics.
Managing discontinuous innovation
different from managing incremental innovation
Managing discontinuous
innovation involves introducing radically new products, services, or business
models, while managing incremental innovation focuses on making gradual
improvements to existing offerings.
Purpose of an innovation audit
The
purpose of an innovation audit is to systematically review and evaluate an
organization's innovation processes, practices, and outcomes to identify areas
of inefficiency, gaps, and opportunities for improvement.
Innovation audit process and its
key steps.
The
innovation audit process typically involves assessing various aspects of
innovation within an organization, including strategy, culture, processes,
resources, and outcomes.
Key steps
may include defining audit objectives, gathering relevant data through surveys
or interviews, analyzing findings to identify strengths and weaknesses, and
developing recommendations for improvement.
Importance of an integrated
approach to innovation management in improving innovation within an
organization.
An
integrated approach to innovation management involves aligning various elements
of the organization, including strategy, culture, processes, and resources, to
support and drive innovation. By integrating innovation into the core of the
business, organizations can foster a culture of creativity and experimentation,
streamline innovation processes, allocate resources effectively, and align
innovation efforts with strategic objectives. This holistic approach enables
organizations to adapt to changing market conditions, capitalize on emerging
opportunities, and sustain long-term growth and competitiveness.
Effective measures that
organizations can implement to improve innovation.
Effective
measures to improve innovation in an organization may include fostering a
culture of innovation through leadership support and recognition, investing in
employee training and development, creating cross-functional teams to promote
collaboration, implementing agile innovation processes, establishing clear
metrics and targets for innovation performance, and leveraging technology and
data analytics to identify and prioritize opportunities for innovation.
Additionally, organizations can encourage experimentation, embrace risk-taking,
and provide incentives for creativity and idea generation to stimulate
innovation across the organization.
With Regards.,
Dr Anthony Rahul Golden S
M.Com., M.Phil., NET., Ph.D., MBA.,SET., NET., M.A., M.Sc. (Psy)., M.A., PGDBA.,
Asst. Professor of Commerce., Loyola College (Autonomous), Chennai - 34
Mobile No- 91+9176313545
https://yesrahul.blogspot.com/
https://orcid.org/0000-0001-8071-4801
https://www.researchgate.net/profile/Anthony-Golden-S
https://scholar.google.com/citations?hl=en&user=faw7X-UAAAAJ
