Management by innovation
Management by innovation concept was developed by Joseph M. Juran. It was first presented at the course organized by the American Association for the Management. Management by innovation aims to develop the business by introducing broad changes (permissions, improvement, innovation) mainly in breakthrough areas of business activity.
For management by innovation to be effective, management of the company should be:
- sure that innovation is necessary to achieve success in the market, as well as support efforts to progress by encouraging and supporting creative and active employees,
- able to create a climate and organizational culture that encourages change,
- open to suggestions for technical and technological improvements and break the stereotypes,
- ready to promote the ingenuity and creativity of employees, and get rid of conservative and inactive people.
Procedure of management by innovation
1. Bringing a significant breakthrough, providing dynamic development of the company:
- employees must be made aware that the company's success depends on the active and offensive way of action,
- managers should make a breakthrough in the current mode of operation of the company, which will ensure the expansion of technology, assortment, quality, marketing, organizational and financial areas.
2. SWOT analysis. 3. Develop a list of problems to solve, prepare business plans and organizational-technical projects, to be implemented. 4. Assess the opportunities, risks and consequences of the anticipated innovation. 5. Changing the management approach to the of new, necessary processes and activities (discussions, training, evaluation systems and incentives). 6. Finding potential sources of conflicts that may be caused by the change. 7. Careful introduction of new solutions that are integrated with the early warning system and control. 8. Checking the efficiency of implemented changes with the possible amendment of ineffective projects.
Advantages and disadvantages
Advantages of the method of management by innovations:
- Technique encourages and even forces the progress and thus development of the company,
- Increases its competitive capabilities of the company, thanks to the constant observation of the actions of competitors and customer response and the need for permanent implementation of new products,
- Concentrates all members of the organization and focuses them around a common objective, which is the development of the company,
- Supports the professional development of employees, increases organizational culture of the company.
Disadvantages of the method:
- Concerns of employees usually associated with the introduction of changes that may lead to failure or mistake,
- Difficulties associated with overcoming the resistance, habits and traditionalism,
- The need to support innovation management techniques by other management techniques,
- impatience while waiting for the effects.
- Burns, T. E., & Stalker, G. M. (1961). The management of innovation. University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship.
- Aghion, P., & Tirole, J. (1994). The management of innovation. The Quarterly Journal of Economics, 1185-1209.
- Johannessen, J. A., Olsen, B., & Olaisen, J. (1997). Organizing for innovation. Long range planning, 30(1), 96-109.
- Bisgaard, S. (2007). Quality management and Juran's legacy. Quality and Reliability Engineering International, 23(6), 665-677.