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

2. 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.

3. 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.

4. 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

5. 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

6. 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.

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

8. Macintosh

9. PostIt

10. Ryanair

11. Pencil

12. Space Shuttle

13. iPhone

14. Wave bob

15. Toyota Prius

16. Charity Gift Cards

17. A&E Processes

18. African Water Pump

19. Sensors

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

21. 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

22. 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 –
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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. Innovation Funnel

30. Chapters

31. 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

32. 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

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

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

35. Copyright
Copyright © 2009 Sage Publishing, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United State Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, Sage Publications, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.