innovation process

 

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