Managing Innovation

MBA 6103Unit 2Innovation as a Core Business Process

Starting with an “innovation model”• Searching

• Scanning the internal environment• Scanning the external environment

• Parallels to SWOT

• Selecting• Deciding which factors to address from a strategic perspective

• Implementing• Converting the idea into action

• Capturing Value• Sustaining adoption/diffusion• Expanding knowledge base

The Innovation Model

Innovation Challenges for Service Organizations

• Lack of an “Innovation Culture”• Lack of an “Innovation Strategy”• Conflicts of interest between innovations and “fee-based”

services• Lack of formal “Innovation Processes”• Lack of Project Management skills

• Parallels to challenges for manufacturing organizations??

Innovation Examples (Service)

Five Generations of Innovation Models

• First/Second• Standardized linear models – push/pull

• Third• Coupling and feedback loops

• Fourth• Parallel models, value chain integration

• Fifth• Whole systems integration, continuous improvement, emergent

design

Establishing Routines Around Core Abilities

Innovation and Strategy