Total Innovation Management

Total Innovation Management
See also

Total Innovation Management– is the consistency of traditionally established innovation management and synergy of the company elements like organization, technology and inner culture, structure, people etc

According to Professor Qingrui Xu research: the reinvention and management of an innovation value network that dynamically integrates the conception, strategy, technology (including IT base), structure and business process, culture, and people at all levels of an organization”.

The aim of TIM is not only based on the boost of company’s innovation competency and use appropriate methods to create special value for potential shareholders and have an ability to conquer with market competitors. In other words, it is ongoing game where main figures have to continuously introduce something not yet discovered, ordinary and unique to be on the top.

This concept provides wider and better-attuned view of the coherence significance between all units at all levels.

Historical overview/Foundation

Schumpeter (1934) was the first who mentioned the concept called ‘‘innovation’’ He indicated innovation as a combination of several components of production created by the entrepreneur and was convinced that it was one of the influential driving forces of economic development and growth It included production innovation, process innovation, market innovation, use of new raw materials and getting materials in new ways, and organizational innovation Thankfully to his research the focus of innovative research at the macro level of enterprise shifted to micro level in order to eliminate the vulnerabilities within firms.

The five main innovation phases were identified:

  • First-phase: research on individual innovation (1940s–1950s)

Systematic research of enterprises at micro level. It was based on idea that an entrepreneur is the power and the main component of innovation (Myer & Marquis, 1969; Rothwell, 1992).

  • Second-phase: research on organizational promotion (1960s–1970s)

Focused on methods of innovation promotion in organizations through effective management. Mainly investigated R&D department performance (Utterback, 1975).

  • Third-phase: research on outsider involvement (1970s)

Impact of users on innovation and process.The question was how to hire users effectively as key sources of innovation (Eric von ippel, 1988).

  • Fourth-phase: research on portfolio and systematic innovation 1980s–1990s) n the 1980s the organizations had to achieve more ambitious goals towards innovation in order to adapt to changing surrounding. Some researchers moved their focus from individual components to the interactive relationships of these elements coming up with portfolio innovation theory (Xu, Chen, & Guo, 1997)
  • Fifth-phase: research on TIM (21st century).he focus is on the TIM, which is defined as innovation conducted by anyone at any time in all processes, among different functions and around the world. The idea is to make everyone an innovator by increasing the level of creativity (Shapiro, 2001; Wheatley, 2001;Tucker, 2002). It aims at developing the model to guide TIM in enterprises. This concept was developed by Institute of Management Science & Strategy of Zhejiang University and a group of scholars from Stanford University (SDG).

TIM Framework

There are three main layers:

  • 1. Innovation in all functional areas like organization, culture, process etc.
  • 2. Covering of the whole space-time dimension in all departments by everybody, at anytime to innovate,
  • 3. The innovation synergy between innovative elements.

TIM Elements

Organizational strategy should be kept in dynamic balance.

the key source to accumulate core competence and to gain the competitive advantage.

  • Management:

It refers to the change and improvement of managerial mechanism, tools, et al.

Organizational structure has to be adjusted to the demand of innovation.

  • Culture:

Change in mind set is the fundamental requirements to carry out all innovation.

the innovation of regulations, rules about enterprise’s performance, staff rewards or on the contrary punishments, salary procedure,training and promotion etc.

  • Market:

the innovation of marketing channel or the operational ways in order to create new market, new channel using for instance Blue Ocean Strategy.

Internal sources for TIM

  • Own R&D
  • Technical divisions like design, technology
  • Production divisions (production, provision of services)
  • Logistics

External sources for TIM

Characteristics of successful TIM companies

  • Creativity of employees
  • Good team work
  • Project based approach and its management
  • Cooperation with external experts
  • Risk-taking
  • Employees’ motivation (they are wiling to improve company’s product and its operation)
  • Continuous education of employees
  • Financing of innovation activities

References

Author: Daria Bartova