What is Innovation Management
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This document provides an introduction to innovation management. It discusses why innovation is important as a growth driver and for long-term sustainability. Innovation is defined as introducing new combinations or novel values. The document outlines the need to shift from an ad hoc approach to innovation to institutionalized innovation management. It discusses tools and challenges for facilitating innovation across an organization.
What is Innovation Management
- 1. Objective A Brief Introduction to: Innovation Management Target Audience Notice This is an individual opinion irrelevant of GE strategy either globally or locally. Some of the materials used in this slide are copyright protected. Please keep it internally.
- 2. Innovation Management RECAP - Why Innovation? Differentiator thus Growth Driver (vs. Saving) Long-Term Sustainability Driver vs. Short-Term Spoke “Business has only two basic functions- marketing and innovation.” - Peter Drucker
- 3. Innovation Management RECAP - Why Innovation? Unique Function of Homo Sapiens Take Greater Advantage of Human Capital by Embracing Creativity vs. Sound Operational Device Creativity Induces Motivation, thus Performance
- 4. Innovation Management RECAP - What is Innovation? Innovations are "the carrying out of new combinations." - Joseph Schumpeter It’s about introducing novel / tweaked values in society: Product / Process / Marketing Continual / Non-Continual Renovation (Kaizen)
- 5. Innovation Management RECAP - 3 Megatrends around Innovation Industrial / Informational / Technological Experiential Closed Open Commercial Social
- 6. Innovation Management Why Innovation Management? AS-IS TO-BE Sole Coincidence Institutional Control R&D’s Responsibility Everybody’s Responsibility Static Budget Allocation Dynamic Portfolio Mgmt Secondary to D2D Primary Mission of Operations Company / CEO Local Ad Hoc Operation Designated+Shared Process by PL / Knowledge Product-out Market-in Cost Center Mentality Profit Center Mentality
- 7. Innovation Management Taking Analogy from Governance Model Ctrl Approach Risk Approach - Bottom up - Top down - Authoritative - Strategic - Thorough - Selective - Feedback - Feed forward R&D Innovation - Technology out - Market in - Allocation - Investment - X-Biz Fairness - Weighted
- 8. Innovation Management MISSION - Sensor for Megatrends Wherever Is beyond Direct Interests of Day-to-Day Business Exploring Deep Implicit Wants
- 9. Innovation Management MISSION - Taktstock for Rhythmical Innovation Opportunity Search / Catalog Gemba Market Multi-Functional Screening / Matching Innovation + Biz Ideation Board F it Biz Modeling / F easible Pilot Test Needs Seeds A ttractive Innovation Fund
- 10. Innovation Management MISSION - Feeder to Incubation Pipeline Assess Design Pilot Scale Launch Scale IM Lead BU Lead / IM Consult
- 11. Innovation Management MISSION - Support CEO in Building Innovation DNA Grow Innovation “neuron” throughout the Company Thoroughly strategize up to embedding in performance evaluation Cultural events for awareness / interest Open, Creative People / Culture Strategic Alignment CEO Commitment
- 12. Innovation Management MISSION - Mobilize People and Knowledge Framework / Evangelize Motif R&D Marketing Suppliers Incentivize Catalyze Indirect Manu- Connect Functions facturing Distributors Retailers Consumers Open, Creative People / Culture Strategic Alignment CEO Commitment
- 13. Innovation Management TOOLS for Facilitating Innovation Ideation / Co-creation Facility (e.g. “Future Center”) Communication / KM Tools Professional Facilitators Crowdsourcing Innovation Governance Tools Market / Customer Knowledge
- 14. Innovation Management Why Designated Innovation Mgmt? Disruptive Innovations, by its nature, require good Is a long-term on-going detachment from existing biz investment vs. short-term profit making Involves unique know-hows (vs. luck) esp. for large entities with multiple BUs Requires to fairly represent X- Implicit view to “Innovation” is business / X-functional stakes different bet. CEO and employees Can embrace merit of scale in general market research, etc.
- 15. Innovation Management Watch-outs Innovation is FRAGILE! First candidate for cost reduction Underlying skepticism from middle management Mixed up with Biz Planning teams Occasionally the name is used for nominal role for rewarding / rest
- 16. Innovation Management Key to Success – Consistent Ecosystem CEO / Gov’ce Team Every mgrs / emps with Struct Innovation Responsibility Domain Priorities ure Process & Policy DO’s / DONT’s Reward & Recog. KM System Strate Syste gy ms Shared Open, Values Trend Sensing optimistic leadership Ideation / Modeling Experiments Style Skills Staff Creative / Proactive Rcs
- 17. Innovation Management … and beyond. History Economic System Culture Ethnicity Society Nationality
- 18. Innovation Management IDEAL: Ubiquitous Innovation Pervasive Bottom-up Distributed
- 19. Disclaimer This presentation is the author's personal opinion and is NOT the representation of his employer or any organization he is associated with. Some of the materials used in this presentation are (possibly) copy-right protected. Even without any commercial purpose, please kindly advice if there is any issue.
- 20. Author Shake the World! Junichi OTAGAKI Innovation Manager / Social Media Navigator USCPA Japanese: @jotagaki English: @jo_overseas Thanks to my Innovation Gurus: