Introduction Applying Innovation By David O’Sullivan and Lawrence Dooley © Sage Publications 2008

Applying Innovation Innovation is an important force in creating and sustaining organizational growth. Effective innovation can mean the difference between leading with a particular product, process, or service and simply following the pack, with the resulting risk of stagnation and decline. Innovation transforms mediocre companies into world leaders and ordinary organizations into stimulating environments for employees. Innovation is the process of making changes to something established by introducing something new; these changes can be either radical or incremental.

Applying Innovation All organizations need to innovate, whether they are profit or nonprofit. Innovation is as relevant to services in a public hospital as it is for products and processes in a manufacturing company. Innovation takes place throughout an organization, from management boards and individual departments to project teams and individuals. In today’s global economy innovation is often a collaborative activity that takes place across extended organizations and includes suppliers, distributors, and other strategic alliances.

Aims Understanding key concepts in the theory and process of innovation Understanding how to manage and apply innovation Using explicit skills for defining goals, generating ideas, empowering teams, and monitoring the results of innovation Developing a simple knowledge management system for managing innovation Working effectively as an individual and as a member of a team Presenting, communicating, and promoting innovation plans Applying what you have learned to managing innovation in any organization

Symbiosis Applying Innovation is about describing how to systematically deliver innovations that add value to customers. The approach adopted is a symbiosis of management techniques that include: innovation management strategic planning performance measurement creativity project portfolio management performance appraisal knowledge management

How Organizations OPERATE ? Operate vs. Innovate How Organizations OPERATE ? versus How Organizations INNOVATE ? This course is about how system change. You will give some insight into the operation of an organisation through your assignment.

Name some innovations! Products Processes Services Radical Incremental Long Life Short Life

Macintosh

PostIt

Ryanair

Pencil

Space Shuttle

iPhone

Wave bob

Toyota Prius

Charity Gift Cards

A&E Processes

African Water Pump

Sensors

Disruptive Innovation Name any innovations that dramatically disrupted or overturned an existing technology, product or service?

Background Innovation creates growth Innovation also destroys Growth of turnover and profits Growth of quality and productivity Growth of knowledge Growth of people Innovation also destroys Organisations that don’t innovate become obsolete Ideas that don’t satisfy customers are abandoned Innovation is about helping organisations grow. Growth is often measured in terms of turnover and profit but growth can also occur in the knowledge and experience of people

Industry Trends “A new corporate model is taking shape focusing on creativity and innovation” “It isn’t just about math and science. It’s about creativity, imagination i.e. innovation.” Every day we see how CEOs, business book authors, and the media highlight Corporate Innovation. For example, Business Week has created an online Innovation & Design portal – www.businessweek.com/innovate This happens because companies can’t compete on cost anymore, and must ensure their products and services will not become commodities, so innovation has become the key growth driver. Some competencies that once were central to corporations—price, quality, and analytical work associated with knowledge—are fast being outsourced to emerging markets facilities in China, India, and Eastern European countries. Increasingly, the new core competencies are creativity and innovation; the right-brain power that smart companies are now harnessing to generate top-line growth. The game is changing. It isn't just about math and science anymore. It's about creativity, imagination, and, above all, innovation. The current momentum of innovation is not just hype, but something that is here to stay. 22

Structure Part I: Understanding Innovation Part II: Defining Innovation Goals Part III: Managing Innovation Actions Part IV: Empowering Innovation Teams Part V: Sharing Innovation Results

Part I: Understanding Innovation Develop an understanding for organizational innovation Explain the difference between product, process, and service innovation Understand radical and incremental innovation Understand the reasons why organizations invest in innovation Explain the main causes of failure in innovation Understand a process for managing innovation Describe the importance of the innovation funnel metaphor

Part II: Defining Innovation Goals Outline a process for defining innovation goals Use techniques for conducting environmental analysis Understand the importance of benchmarking in innovation Explain how to develop statements such as mission and vision statements Identify stakeholders and their requirements Describe the process of strategic planning Outline the process of creating performance indicators

Part III: Managing Innovation Actions Describe the creativity process Understand the various sources of ideas used in innovation Apply a number of idea generation tools Identify core aspects of project management Explain the product development process Understand how to capture critical data for innovation projects Explain the process of project portfolio management

Part IV: Empowering Innovation Teams Explain the importance of leadership in innovation Define the structure of innovation teams Understand how to build a team culture within the organization Describe some of the important attributes of virtual teams Understand communities of practice Explore various ways of increasing motivation Describe a simple performance appraisal system

Part V: Sharing Innovation Results Describe knowledge and how innovation knowledge can be managed Understand specific aspects of collaborative portals, portlets, and workspaces Discuss how to design and implement a simple knowledge management system Explain the relationships between different sets of innovation information Describe how organizations can contain a number of innovation communities Describe a hierarchy of innovation management processes or funnels Describe an approach to presenting and reporting a dynamic innovation plan

Innovation Funnel

Chapters

Programme Understanding Innovation 1. Defining Innovation 2. Managing Innovation 3. Processing Innovation Defining Innovation Goals 4. Analyzing Environments 5. Defining Objectives 6. Measuring Indicators Managing Innovation Actions 7. Creating Ideas 8. Managing Projects 9. Developing Products 10. Balancing Portfolios Empowering Innovation Teams 11. Leading Innovation 12. Building Teams 13. Motivating Performance Sharing Innovation Results 14. Managing Knowledge 15. Building Communities 16. Extending Innovation

Activities Activities in each chapter help you apply some of the ideas presented to your own organization Your organization can be real or fictitious and created from your imagination and experience Activities combine into one dynamic innovation plan for your organization Sample Innovation Plans available

SwitchIt Case SwitchIt Manufacturing in Ireland Subsidiary of SwitchIt U.S.A. Complete the case in Appendix!

Reading ‘Applying Innovation’ Book Resources O’Sullivan and Dooley Sage Publishing, 2009 Book Resources www.owl.ie

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