Innovation management

Innovation management is all the activities that are necessary to develop modern and practical technical solutions. The choice of a new technique, work organization and the whole range of innovative possibilities should be used taking into account financial, social, legal, administrative, environmental, strategic as well as structural and process aspects. An appropriate, well-chosen innovation strategy allows you to gain recognition in the market, thanks to which the company is becoming more and more competitive with other enterprises, and also brings profits. According to Cambell-Allen, innovation management is also the care for the development of culture, aimed at creating, modifying and applying processes, goods / or services, resulting from the creativity and implementation of new ideas in the organization.

Innovation management system

Innovation management system is a whole structure, as well as activities that are necessary for the preparation and practical application of modern technical solutions through the definition of product products. The entire management system consists of the

• subsystem for managing creative potential,
• subsystem of technical potential management,
• subsystem of management of manufacturing techniques,
• subsystem for managing the processes of creating and implementing innovations,
• financial management subsystem,
• subsystem of distribution system management,
• information system management subsystem.

Each management system should meet the conditions that apply to the legal regulations of the country. It is also important to achieve the goal - implementation of product or process innovations, while maintaining the designated outlays. It is also necessary to choose an appropriate flow of information, the source of which is the sphere of market and science.

Types of innovative strategies

• defensive strategy - lack of innovative solutions introduced by the company,
• offensive strategy - creating conditions for creating and developing new solutions by employees,
• company acquisition strategy - taking over or merging with another company,
• market creation strategy - there are few competitors in a given market area,
• license purchasing strategy - the ability to purchase technological licenses from other companies, which allows you to make a profit,
• independent strategy - improving existing products on the market and increasing their shares,
• a strategy for acquiring specialists - acquiring specialists from competing companies,
• strategy of walking in a niche - the company avoids competition from the industry using this strategy.

Stages of the innovation management process

• Search - it is receiving from external and internal surroundings, using emerging opportunities for change and technology as well as finding threats. However, the choice is to make selections on technological occasions. With the help of the chosen strategy, one should choose the one that will be needed in the next stages of the project implementation.
• Planning process - it occurs in the first phase of innovation management. It guarantees that cohesion will be maintained between the enterprise strategy and the activities and ensures productive resource allocation. Innovation planning is 3-5 years including a review and an annual budget. It is also the determination of the set goals and methods of implementation. The innovation management planning process consists of the following stages: programming, forecasting and plan creation.
• Implementation stage - introducing the idea through creating a new product or service. Not only this stage may involve introducing new products to the market, it may also be a change in the technological process. Thanks to technological and market analyzes, it can be stated whether innovation: arouses customers' interest or is real.
• The diffusion and improvement process - diffusion is a long-lasting process of assimilating innovations in social systems, through the transmission of appropriate channels at a specific time to the participants of the social system, i.e. the spread of information about a given service / product on the market. On the other hand, discounting is associated with the goal of innovation. Their implementation takes place in the form of market success, lowering costs or increasing market share.
• Controlling - observing the activities of introducing innovations to the market. It gives the possibility of changes in the innovation project in the event of mistakes made by employees. The important task of controlling should also include the assessment of the action - gradations of the effectiveness of the goal and the elimination of the irregularities.

Innovation management models

According to Y. Tamar, H. Borey and P. Lindgren, following the criteria of: radicality, complexity of innovation and range, there are four types of models:

• open / proactive model - it distinguishes itself with high levels of radicality as well as range of innovation with parallel low complexity,
• closed / proactive model - characterized by high degrees in three areas of innovation,
• open / reactive model - has a high degree of innovation, but low degrees of complexity and radicality of innovation,
• closed / reactive model - it is characterized by a low degree of coverage and radicality, and a high complexity of innovation.

Limitations in innovation management

If innovation is seen only as...	... is the result can be
High research and development potential	Technology that does not meet the expectations of customers, which will translate into a lack of acceptance in the market.
Domain of specialists' activities	Lack of involvement of other employees and lack of key knowledge and experience in other areas of activity in the research and development department
Recognizing and striving to meet the needs of customers	No technical access, leading to the loss of competitive advantage
Breaking the limits of technology development	Producing products or services that are not needed by the market or process design that does not meet the requirements of users and there is resistance to implementing them
Area of ​​operation of only large companies	Weakness of small companies too dependent on large customers
Groundbreaking changes	Underestimation of the importance of conservative innovation. Loss of ability to secure and support the effects of breakthrough innovations
A project of strategic importance	Failure to see opportunities resulting from spontaneous innovations
Activity based on key units	Loss of the possibility to use the creativity of other employees and innovation development opportunities
The internal activity of the company	Rejection of solutions created outside the enterprise
The result of the company's external activities	Perception of innovation as a resource for the company's activity, which results in a low level of learning and development of technological competence of innovations.
The activity of one company	Excluding the possibility of establishing various forms of cooperation of enterprises in order to create new products, improve processes

Examples of Innovation management

• Ideation: Ideation is the process of generating, developing, and communicating new ideas. It is a key element of innovation management and can involve brainstorming, research, and other creative activities. The goal is to create ideas that can be used to develop new products, services, processes, or strategies.
• Design Thinking: Design Thinking is a methodology used to solve complex problems through creative and collaborative problem-solving. It is a key element of innovation management and can be used to develop new products or services, or to improve existing ones. It focuses on user needs and involves collaboration with stakeholders from multiple disciplines to create solutions that are innovative, effective, and sustainable.
• Prototyping: Prototyping is a process of creating a working model of a product or service. It is an important part of innovation management and can be used to test ideas before committing to a full-scale development. Prototyping can help to identify problems and opportunities in the early stages of development, allowing for more informed decision-making.
• Experimentation: Experimentation is a process of testing ideas in a controlled environment to help determine their viability. It is an important part of innovation management and can be used to evaluate the success of a product or service, or to test different approaches to solving a problem. Experimentation can help organizations to quickly identify the most effective solutions and to make informed decisions about their implementation.
• Continuous Improvement: Continuous improvement is a process of identifying and implementing changes that improve the performance of a system. It is an integral part of innovation management and can be used to identify areas in need of improvement and to develop innovative solutions. Continuous improvement can help organizations to stay competitive in the market and to achieve their long-term goals.

Advantages of Innovation management

One of the main advantages of innovation management is the ability to remain competitive in the market. By making changes to existing products and processes, companies are able to adjust their offerings to meet the changing needs and desires of their customers. Additionally, innovation management can help organizations to stay ahead of the competition and develop new products and services that can provide more value to customers. Some other advantages of innovation management include:

• Increased efficiency - By implementing new technologies, processes and systems, organizations can streamline their operations and reduce costs, allowing them to become more competitive.
• Improved customer satisfaction - By staying ahead of the competition, organizations can provide their customers with innovative products and services that can meet their needs and provide added value.
• Increased employee engagement - Innovative solutions and processes can help to engage employees and make their work more enjoyable.
• Increased market share - By offering customers innovative products and services, organizations can increase their market share and customer base.

Other approaches related to Innovation management

Innovation management also includes other approaches such as:

• Design thinking: it is an iterative process in which designers focus on understanding user needs, exploring solutions, and developing prototypes. It helps to generate creative ideas, solve complex problems, and identify opportunities for improvement.
• Lean innovation: it is a systematic approach to innovation that focuses on reducing waste and creating value for the customer. It involves understanding customer needs and preferences, creating prototypes, testing assumptions, and refining products or services accordingly.
• Agile innovation: it is an approach that emphasizes collaboration and flexibility. It involves creating a cross-functional team that works together to quickly develop, test, and refine new ideas.

In conclusion, innovation management involves a range of approaches, such as design thinking, lean innovation, and agile innovation, that aim to create value for the customer, reduce waste, and generate creative ideas. These approaches help organizations to develop modern and practical technical solutions and become more competitive in the market.

Innovation management — recommended articles

Total Innovation Management — Organizational innovation — Strategic management principles — Functional strategy — Smart organization — Value innovation — Development by restructurization — CMM model — Business model innovation

References

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