Loading...

Challenges in Innovation Management

Seminar Paper 2011 9 Pages

Business economics - Business Management, Corporate Governance

Excerpt

Table of Contents

Summary

1. The meaning of Innovation

2. Innovation- A core renewal process

3. Challenges
3.1 Technology and Practices mapping with market needs
3.2 Challenge of radical change
3.3 Conflict of Interest

4 Van de Ven on Challenges
4.1 The challenge of managing attention
4.2 Managing the idea to good currency
4.3 Proliferation of Innovation
4.4 The challenge of leadership

REFERENCE LIST.

Summary

Through innovation process, organizations develop and implement the new ideas by engaging people over a period of time. Organizations to attain competitive advantage pursue innovation strategy and this pursuant make organizations interact with external environment alongside internal environment. Through interaction, organizations map their resources with the market demands and by doing so, organizations go through the renewal process. The management of innovation process is very critical element of organizational strategies and it bestows various challenges in front of organizations’ management. Organizations need to take care of these challenges to be successful in their pursuant of innovation.

1. The meaning of Innovation

Fagerberg (2005) made a distinction between invention and innovation by stating that innovation is the first effort to execute the new product development idea which first occurred as invention. Van de Ven (1986) also defined innovation as a new idea which may initiate from old thoughts leading to challenge the current paradigm in the form that it looks new to the people who are involved in the process. There are different classifications of innovation enumerated by Schumpeter (Fagerberg 2005, 6) like “new products, new production methods, new sources of supply, the exploitation of new markets and new ways to organize business”. Kline and Rosenberg (1986) highlighted various characteristics of innovation stating that innovation is not a single dimensional activity; it can be a new production process, a cheaper material substitution , a new framework to reorganize the production in terms of reorganizing internal functions or distribution of products or it can be an improvisation of means of innovation. Innovation is a concept which is controlled by two prominent forces; market forces and technological and scientific progression forces which communicates with one another (Kline and Rosenberg 1986).Market forces such as pricing, incomes and demographics define the commercial opportunities for innovation categories and technological and scientific progression forces pave way for the improvisation of old products or bringing new products in the market (Kline and Rosenberg 1986). The formula to attain success in innovation is to pursue a strategy which targets the amalgamation of organizations’ knowledge, capabilities, skills and available resources (Fagerberg 2005). The term innovation is not a standalone entity, however, it requires the interaction between organizations’ internal and external environmental factors to cater to the market forces and technological forces. Innovation can be termed as a holistic and systematic process leading to the renewal of organization. This directs our focus to understand the process of innovation as organization’s core renewal process.

2. Innovation- A core renewal process

Innovation can be termed as a process which aims at renewing the organization core through interaction of various elements of organizations’ organizations pursue innovation process to offer new products or improvise their current products and services to attain competitive advantage and by doing so, organizations’ core practices go through renovation for example, Continental Tires, to pursue innovation strategy to come up with new innovative tires, re-configured their value chain which made them renew their entire processes in the business like re-structuring infrastructure, procurement process, human resource management and marketing and sales (De Wit and Meyer 2004). Innovation process assists organizations to match their resources with the demands of the market. The innovation process is highly uncertain due to the commercial and technological aspects of it and organizations’ management invest a lot in terms of refining their processes and procedures to pursue innovation strategy to attain the competitive advantage (Pavitt 2005). The innovation process constitutes (Pavitt 2005, 88) the “production of the scientific and technological knowledge, the translation of this knowledge into the workable artifacts and lastly responding to and influencing the market demands”. Organizations’ incorporates different models of innovation to pursue innovation process (Kline and Rosenberg 1986). To be successful with the innovation strategy, the organizations’ need to manage the whole innovation process very effectively leading to the perceived change and the entire innovation process presents various challenges in front of organizations’ management which will be discussed thoroughly in next section.

3. Challenges

The essence of innovation process is to match the products, services, systems and processes with markets’ actual and potential demand and organizations invest its resources to find out the way to manage the innovation process (Pavitt 2005).

[...]

Details

Pages
9
Year
2011
ISBN (eBook)
9783656335979
ISBN (Book)
9783656336747
File size
683 KB
Language
English
Catalog Number
v206727
Institution / College
BI Norwegian Business School
Grade
A
Tags
challenges innovation management

Author

Share

Previous

Title: Challenges in Innovation Management