by: FORTUNATO T. DE LA PEÑA Undersecretary, DOST

Innovation is not restricted to: Big ground-breaking ideas or technological leaps forward Creative jumps of the imagination which cannot be planned or prepared for The R&D department or the “creative types” in marketing! Creative ‘workshops’ Product based companies

Innovation is often about small, incremental changes to products, services and processes. It involves all managers in every department from Finance to Customer Services. It should be planned and managed as a core business process covering all parts of a business. It needs to be integrated into the business at both strategic and operational levels. It is THE core business skill and process for the 21 st Century. Gary Hamet, Strategy as Revolution

Innovation should be linked to strategy and planning As with all other core business processes innovation needs to be linked to strategy and the business planning process. Innovation separate to business strategy runs the risk of diverting key resources and damaging the focus of an organisation

Where do innovations originate? INTERNAL R&D Continuous Improvement Programs Employee Suggestion Schemes Regular Innovation Workshops Annual Company Planning Employment Strategy

Where do innovations originate? EXTERNAL Technology Acquisition/Licensing Customers Competitor Analysis Benchmarking

Innovation Hub A successful innovation culture embraces all aspects of a business and should be managed as effectively and efficiently as any other core business process. To that end, successful innovation companies operate an ‘Innovation Hub’ where all ideas and innovations are collated and coordinated. Screening and Filtering is a MUST

Innovation Screening Criteria: Value Suitable Acceptable Feasible Enduring

Success Factors when Installing and Running an Innovation Process within an Organization A focus on opportunities of high value Active commitment of top management Build the core innovation process into business processes Develop innovation as a core skill (in all staff and especially in managers) Install tools to support the application of concepts. (internet and tracking software)

Success Factors...(cont’n.) Reward people for Sharing ideas and knowledge (particularly group effort0 Communicate successes (let people know)

Managers, Champions, Agents of Innovation Leaders and teams with ability and commitment Leadership and commitment from the Board and Senior management teams. Agents of innovation and innovation teams across the organization Questions :Are people asked for ideas? Do staff know about the need for innovation? Are people rewarded for ideas and contribution?

Creating an Innovation Process and Installing an Innovation Culture Requires Management and Measurement Performance must be linked to strategy and measures and key performance indicators. The frequency of performance measurement depends on how critical the innovations to overall business performance are

The Role of Government in Helping Firms Create and Appropriate Value Better R&D Financier Leader User Provider of Public Complementary Assets Regulator/Deregulator Facilitator of Macroeconomic Fundamentals Educator, Information Center, Provider of Political Stability

References: An Integrated Approach to Managing Innovation, Project Leaders International Ltd. (White Paper) Strategic Innovation, Allan Afush