Technology Intelligence (TI) is an activity that enables companies to identify the technological opportunities and threats that could affectthe future growth and survival of their business. It aims to capture and disseminate the technological information needed for strategic planning and decision making. As technology life cycles shorten and business become more globalized having effective TI capabilities is becoming increasingly important. The Centre for Technology Management has defined 'technology intelligence' as "the capture and delivery of technological information as part of the process whereby an organisation develops an awareness of technological threats and opportunities. 1. Technology Intelligence is the ability to look at developments in technology and use them as enablers. You can map a new technology development to something you do in your organization. This may be a new product design, a new extension to an existing product, a service design, a new way of marketing, a better way to obtain sales leads, a simpler method of manufacturing etc. There are no bounds. 2. Technology Intelligence is needed for almost every organization. Organizations in certain industries may need it more than others. If you have it, you will certainly have some competitive advantage over others, who don‘t. 3. Each new development in technology creates at least one marketplace which may over time blossom into multiple markets and an entire industry. 4. When it appears, a new technology may not appear earth shattering. So people tend to ignore it. There will be a series of minor shifts, a few scattered applications and all of a sudden, there will be some company getting millions of customers. Don‘t look to journalists to cover it (unless they are some one like Jon Udell). 5. Some times a simple technology may go viral with great impact. Twitter is a good example. It started as an innocuous micro-blog. It was ignored by most in the beginning. 6. The real winners will be the ones who can find new applications for a technology and successfully implement it and educate others. Leveraging technology is a special skill. It can be acquired. 7. Detect trends early. These are also known as weak signals. First, start with an open mind. The smart ones have the ability to spot an early trend. BUSINESS PROCESS REENGINEERING ―BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.‖ Instead of starting with an activity flowchart, corporations are advised to start with a clean slate. They are then told to look into why they perform the tasks the way they do. A Process Engineer will look at the activities to be performed and how they can be engineered to invest minimum resources and get maximum returns. Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality. In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer. They typically adopt a new value system that places increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision making. Business process re-engineering is also known as business process redesign, business transformation, or business process change management To illustrate the point, let us consider the example of Apple iPod. Apple rethought the way music ought to be made available to the consumers. The changes it brought were: Radical: While all other music labels were selling music via brick and mortar stores, Apple developed its iTunes software to sell music digitally. (Napster had made digital music available through a P2P platform earlier, but was sued by music labels for copyright violation) Fundamental: Apple sold single tracks as opposed to whole albums being sold at brick and mortar shops. Information Sharing: A BPR project is usually facilitated by a cross functional team. Most of the times, teams are spread across different geographic locations. Information needs to be successfully shared amongst various people to ensure the reengineering goes as planned and without hiccups. Technology as the Solution: The new processes that are developed as a result of BPR initiatives deploy the latest technology to achieve the desired end results. Usually it is e-Commerce, automation or another technology driven solution that is implemented. Business Process Re-engineering has become a very important buzzword in the BPM lexicon. Many corporations who were late in realizing the power and importance of BPM have to undergo re-engineering initiatives to ensure that they are still relevant to the marketplace. Re-engineering initiatives are however expensive and may require certain downtime. This is the reason they are resented by many corporations. Methodology Business Process Reengineering is a dramatic change initiative that contains five major steps. Managers should: Refocus company values on customer needs; Redesign core processes, often using information technology to enable improvements; Reorganize a business into cross-functional teams with end-to-end responsibility for a process; Rethink basic organizational and people issues; Improve business processes across the organization. Common uses Companies use Business Process Reengineering to improve performance substantially on key processes that impact customers. Business Process Reengineering can: Reduce costs and cycle time. Business Process Reengineering reduces costs and cycle times by eliminating unproductive activities and the employees who perform them. Reorganization by teams decreases the need for management layers, accelerates information flows, and eliminates the errors and rework caused by multiple handoffs; Improve quality. Business Process Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership of processes. Workers gain responsibility for their output and can measure their performance based on prompt feedback. Business process re-engineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. Some of the common benefits of BPR are: Increase Effectiveness. As all employees are aware of the processes to which they belong , they have a greater sense of responsibility. All processes are completely monitored under the strict control of the management. The net result of this is that employees deliver high quality products to their customers. Helps to improve efficiency. Proper management and control of all business processes reduces the time lag between different processes, which otherwise is quite high causing delays. This in turn reduces the time to market the product to the target customers and givesquicker response to buyers. Reduces cost. With the proper management of processes, improved efficiency and quick delivery of products to the buyers ,the overall product costs are reduced resulting in cost saving for the organization in the long run. Meaningful job for employees. As the time lag of product processing between different departments gets reduced due to the application of business process reengineering, there are more meaningful tasks to be performed by employees. This leads to increase their levels of motivation and the desire to perform well. Improvement in organizational approach. According to the traditional approach of managing an organization there is no flexibility or adaptability to change. The management formulated strict rules for employees of the organization. Whereas now, when most organizations have implemented business process reengineering there is an increase in flexibility and adaptability for change. This has created better environment for people to work, thus leading to employee satisfaction. Growth of business Implementation of BPR results in the growth of the present business thus enabling the emergence of new businesses within the same organization. Although BPR is very effective in controlling cost and improving efficiency, its implementation is a hard nut to crack. Employees are very resistant to this kind of change thus, it is important to have extensive support from the top management. Limitations of BPR 1. Negatively influence customer reaction and customer service. 2. May not suited for all industry for a radical redesign 3. May negatively influence core competence of the business 4. May ignore the staffs reactions and emotions 5. May high costly. 6. May lead to lack of focusing the customer needs INNOVATION MANAGEMNT Innovation management is the discipline of managing processes in innovation. It can be used to develop both product and organizational innovation. Without proper processes, it is not possible for R&D to be efficient; innovation management includes a set of tools that allow managers and engineers to cooperate with a common understanding of goals and processes. The focus of innovation management is to allow the organization to respond to an external or internal opportunity, and use its creative efforts to introduce new ideas, processes or products.[1] Importantly, innovation management is not relegated to R&D; it involves workers at every level in contributing creatively to a company's development, manufacturing, and marketing. By utilizing appropriate innovation management tools, management can trigger and deploy the creative juices of the whole work force towards the continuous development of a company. [2] select. attendance of events such as trade shows that can be inspiring and informative. and polished. There are many online tools available for real-time document sharing that might help teams that are geographically separated to still have intense cooperation. make sure that you have someone representing all the parts of the process from start to the end. When the best ideas have been combined. As you know. This helps to ensure that any ideas that have a promising veneer but that are poorly thought out will be identified before resources. because they for sure have ideas that people from other departments could not come up with. You might consider having a trained business coach facilitating the discussions.[3] The 8 Phases of an Innovation Management Process Setting the goals for the process: Innovation always begins with a goal in mind. strong ideas will be complementary to one another and will join well to create an even better result. When you establish the team for this process. or may even be all of your organization‘s employees. This team may consist of you and another person. Often. choose the best ones and then consider whether they can be combined to create an even greater idea. It is many times based on finding the solution to a problem. the whole result can be bigger than its individual parts. implement and capture. it is time to subject them to evaluation based on peer reviews. Business coaches may be useful here for making sure that all the angles of innovative aspect are covered. a group of people. you need representatives of all parties involved in the process. It also helps to select the ideas with the greatest potential from among . it should be discussed among everyone in the problem solving team. Combination of ideas: Once the ideas are in. And for this combination to work well. or simply consist of brainstorming sessions. It may involve others such as your customers (who can provide suggestions and feedback based on their own experience with your product or service) or other stakeholders in the business. Once you have this goal. funding and time have been poured into them. fine-tuned. This can include the use of online tools.The process can be viewed as an evolutionary integration of organization. Evaluation of innovation: This is an important and yet all too frequently overlooked aspect of the innovation management process. technology and market by iterating series of activities: search. they can bounce ideas off one another and create a collaborative solution. Cooperation: The innovation team should work together so that instead of trying to come up with an idea separately. Make sure that the product or service not only raises interest but is able to generate orders also. The term was popularized by Alex Faickney Osborn in the 1953 book Applied Imagination. It is cheap to change your innovation at this stage compared to later stages. Industrial designers. although more recent research has questioned this conclusion. Should a milestone not be reached. as well as customers and investors to have a better look at how the product will function and what changes can be made to it so that it will be even further improved. This allows the team. manufacturing. . unless your new product causes you to have to drastically alter the typical way that your go-to-market strategy functions. they can be tested so that they can be better developed. Tools for managing innovation Brainstorming is a group or individual creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its member(s). then changes will need to be made or the idea will need to be shut down. the term is used as a catch all for all group ideation sessions. and sales and marketing departments the ability to virtually explore a complete product before it‘s built. Assessment of innovation life-cycle: After the execution of an idea.[1] Today. Each step you take forward will cost you more… Testing the ideas: Once the ideas with the greatest potential have been identified. its implementation needs to be carefully monitored and assessed in terms of a number of milestones that should be set. then this part of the innovation management process should be relatively commonplace in your organization. It should be easier for you to move from testing to execution if you were able to generate orders already in testing phase. If people say that they are interested in it. engineering. then ask them if they give you the order right away. Osborn claimed that brainstorming was more effective than individuals working alone in generating ideas. The execution of implementation is a step that is unique to your business and. Remember to keep always customer in your mind also in execution phase and design your measuring systems so that they measure added value for the customer (you get what you measure and customers weight you based on that!).several that appear equally capable of being successful. Execution of innovation implementation: The ideas that survive the testing process can be further developed and altered until they are ready to be executed as a part of the business offerings. One of the most common means of testing a product or service idea is to create a prototype or test group. Digital Prototyping gives conceptual design. In practice. the management of these two systems is often quite different. they will often have first mover advantage and be a technology market leader. PLCM refers to the commercial management of life of a product in the business market with respect to costs and sales measures.[1] PLM integrates people. iterate. Types of Innovation Strategy Proactive . The primary challenge of project management is to achieve all of the project goals[4] and objectives while honoring the preconceived constraints. organizing. PLM describes the engineering aspect of a product. validate. whereas.[1] undertaken to meet unique goals and objectives. A project is a temporary endeavor with a defined beginning and end (usually timeconstrained. energy efficiency.[6] The secondary —and more ambitious— challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives. Companies often adopt Digital Prototyping with the goal of improving communication between product development stakeholders. and visualize their products digitally throughout the product development process. Marketers also use Digital Prototyping to create photorealistic renderings and animations of products prior to manufacturing. optimize. to service and disposal. Innovative digital prototypes can be created via CAutoD through intelligent and near-optimal iterations. time. from managing descriptions and properties of a product through its development and useful life. permanent. The temporary nature of projects stands in contrast with business as usual (or operations).Companies with proactive innovation strategies tend to have strong research orientation. meeting multiple design objectives (such as maximised output. and controlling resources to achieve specific goals.manufacturers. identifying multiple figures of merit. Product lifecycle management (PLM) should be distinguished from 'product life cycle management (marketing)' (PLCM). and often constrained by funding or deliverables). Project management is the discipline of planning. data.[5] The primary constraints are scope. quality and budget.[2] typically to bring about beneficial change or added value. processes and business systems and provides a product information backbone for companies and their extended enterprise. PLM systems help organizations in coping with the increasing complexity and engineering challenges of developing new products for the global competitive markets. getting products to market faster. through design and manufacture. highest speed and cost-effectiveness). and facilitating product innovation. These companies access . product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception.[3] which are repetitive. and engineers use Digital Prototyping to design. motivating. and as such requires the development of distinct technical skills and management strategies. or semipermanent functional activities to produce products or services. and reducing development gearing and time-to-market. You have probably often read in literature that the innovation strategy should be derived from the corporate strategy to clearly define how the organization sees opportunities for growth and makes explicit choices about the role of innovation. the value that is . Many of the companies that supply to automotive companies have passive innovation strategies as they wait for the automotive companies to demand changes to specification before implementing these changes. They will copy proven innovation.Companies with passive innovation strategies wait until their customers demand a change in their products or services. These companies have mainly incremental innovation with in-house applied R & D. Dell and British Airways. Passive . Rather. have a wait and see approach and look for low risk opportunities. an innovation strategy needs to be truly inspiring and should describe a desirable future state for the company. Radical innovations (as described in Why Innovate) are breakthroughs that change the nature of products and services.The reactive innovation strategy is used by companies that are followers and have a focus on operations. Companies with active innovation strategies also have broad sources of knowledge and have medium to low risk exposure. The types of technological innovation used in a proactive innovation strategy are radical and incremental. Companies with reactive innovation strategies use entirely incremental innovators and include budget airlines such as Ryanair which has successfully copied the no frills service model of Southwest Airlines. Opportunities and possibilities formulated in an innovation strategy should actually provide input and shape the overall corporate strategy. Reactive .An active innovation strategy involves defending existing technologies and markets but with the preparedness to respond quickly once markets and technologies are proven. Incremental innovation is the constant technological or process changes that lead to improved performance of products and services. Apple and Singapore Airlines have proactive innovation strategies. Companies like Dupont. Still.: Opportunities and possibilities formulated in an innovation strategy should actually provide input and shape the overall corporate strategy.knowledge from a broad range of sources and take big bets/high risks. which is absolutely not wrong. They tend to hedge their bets and include companies such as Microsoft. Invention is done everywhere. we think that to some extent it should be the other way around.This is a high bar as it rules out a single-minded focus on incremental add-ons to the business. 5 Key Points to Consider when Developing an Innovation Strategy First. it requires the organization to aim higher. In fact. Active . the strategy in all practicality is probably just a product roadmap of business extensions. What do we mean by this? It is important to describe with great precision which specific innovation initiatives should be pursued. After all.‖ Companies are settled into the way they innovate. allow adjustments to the desired course and maybe even allow an organization to cut its losses if required. Fourth. Again. connecting the dots between many singular ideas and inventions into one big platform innovation and fully scaling it to maximize potential benefits.e. If the so-called strategy does not seek to push those boundaries. technologies and gaps that may need to be filled. Rome was not built in a day. beat the competition. even if that requires moving in multiple directions to raise the aspiration you had at the beginning. Likewise. as it is grounded in the reality of a company‘s environment. i. an innovation strategy must also be specific to the time in which it is developed. Second. and create new spaces. An innovation strategy and the respective execution should be capable of adapting the moment there are new insights. they fail to deliver the truly sustainable competitive advantages that can only be derived by performing above the overall market growth level and exceeding average profit margins. The innovation strategy also needs to explore possible market developments and scenarios while defining the most attractive market opportunities. . Even today this is something that many people find hard to accept. an innovation strategy needs to be adaptive and to evolve over time. the innovation strategy should aim higher and help the company outpace anybody else in a contested space. and where to invest and compete. incorporate learning. Even if executed according to plan. innovation sometimes requires more time than originally estimated. One client once joked: ―We actually invented the not-invented-here-syndrome in our company. not an innovation strategy. the process of developing the strategy needs to be open. and it reflects the available capabilities. Open means bringing the outside in and working under the assumption that the other seven billion people on our planet may have insights that do not exist within a particular company‘s boundaries. Too many innovation strategies that we have seen tend to be ―me too‖ (and mostly incremental). This typically does not fit with the classic annual corporate planning cycle. Finally. the innovation strategy needs to be ambitious in terms of providing the basis to break away from the competition. The innovation strategy also needs to explore possible market developments and scenarios while defining the most attractive market opportunities.derived for many large companies by scouting inventions. Third. Innovation is the successful exploitation of new ideas to increase customer value or create wealth for a company. Examples of process innovations include Ford‘s first use of the production line by bringing product to the person during fabrication. The diagram below describes the relative relationships between incremental. scanners and the Internet that allows customers to track parcels in real time as couriers are transporting them. with the outcomes being aligned with a company‘s overall strategy‖. a new method such as the Pilkington Floating Glass method or the blast furnace.Process innovation is defined as ―A process innovation is the implementation of a new or significantly improved production or delivery method. or the use of new software like 3D modelling software as part of the process or for developing new products. substantial and radical innovation with some indicative examples taken from the automotive industry . it is possible to define three levels of innovation based on the degree of ―newness‖ and the degree of ―value add‖. This includes significant changes in techniques. within this broad definition. The lithography method used to fabricate microchips was a process innovation that has touched the lives of most people on the planet. Process innovations involving the logistics include the factory to customer delivery of custom-built computers by Dell Corporation. The delivery methods are associated with the physical movement of the product from the factory floor to the end user. tracking systems and any associated equipment. Innovation is therefore outcome-oriented. the use of barcodes. the logistics of the company. equipment and/or software. However. This includes any system that is implemented in improving the delivery of the product to the customer such as computer systems. i.‖ ―… The implementation of a new or significantly improved production… method‖ involves the development of a new way to produce a product using a newly developed machine.e. and the innovation process used by organisations to arrive at the best ideas for commercialisation. Examples of process innovation There are many examples of process innovation since industry started to develop and the purchase and use of products became a way of life. The Pilkington glass method is yet another process innovation as are the methods used to manufacture small disk drives currently used in some of the popular MP3 players. Innovation Strategies An innovation strategy helps firms decide in a. Three generic innovation strategies can be defined as: Pioneer: Focused on bring new and industry leading or transforming technologies to market. Thus. cumulative and sustainable manner. business strategy will determine the requirement and appetite for innovation development activities and drive an effective portfolio of the three levels of innovation. . Adaptive: be the second one but be the ―best‖ 3. Or. 1. from a defensive perspective. Economic: be the low cost producer 4. that may be in different areas. Innovative Applications: be the creative user of existing technologies Each innovation strategy requires innovation. about the type of innovation that best match corporate objectives” . This requirement can be generated from an offensive need to create competitive advantage and enter new markets. Opportunistic: Makes some investment in substantial innovation but also sources innovation from third parties and invests in adapting these for its identified market opportunities. “An innovation strategy guides decisions on how resources are to be used to meet a firm’s objectives for innovation and thereby deliver value and build competitive advantage. Merle C Crawford‘s (1980) described four innovation strategies . it‘s all about protecting market share and ensuring long-term competitiveness in relation to industry players. Fast Follower: Adept at improving existing technologies through incremental innovation in both product and process technologies.” Innovation is an essential component of business activity. Often focused on cost-downs. Inventive: be the first one to market 2. and through empirical work shows that innovation does not just happen within the industrial supply-side. is enduser innovation. In the linear model the traditionally recognized source is manufacturer innovation. Similarly. Eric von Hippel has identified end-user innovation as. or as a result of the articulation of user demand. with much attention now given to formal research and development for "breakthrough innovations. each of these businesses is likely to have different innovation needs and tailored strategies will be required. 3M. Innovation by businesses is achieved in many ways. through exchange and combination of professional experience and by many other routes. they may also choose to freely reveal their innovations. Thus. but a wide variety of intermediary organisations such as consultancies. standards bodies etc. Innovation strategy is vital for developing & operating the innovation process. only now becoming widely recognized. the competitive environment and its resources. but through a complex set of processes that links many different players together – not only developers and users. Sources of Innovation. Whether innovation is mainly supply-pushed (based on new technological possibilities) or demand-led (based on social needs and market requirements) has been a hotly debated topic. by far. each main technology area employed by a business should be assessed separately. Another source of innovation. Regarding user innovation. or more often they may choose to trade their innovation in exchange for other innovations. an appropriate mix of innovation related activities can be developed based on realising the strategy(s) Sources of innovation: There are several sources of innovation. This is where an agent (person or company) develops an innovation for their own (personal or in-house) use because existing products do not meet their needs. Toyota are widely recognised as Pioneers while the Korean car companies and Chinese computer manufacturers can be regarded as Fast Followers. rarely user innovators may become entrepreneurs. In addition. using methods like open source. a company should develop an innovation strategy appropriate to the industry life-cycle. Nowadays. A good recent example of an Opportunistic innovation strategy is the incorporation of digital camera and MP3 technology into mobile phones. In such networks of innovation the creativity of the users or communities of users can further develop technologies and their use. Having done this. the most important and critical in his classic book on the subject. Work on social networks suggests that much of the most successful . This is where an agent (person or business) innovates in order to sell the innovation. The more radical and revolutionary innovations tend to emerge from R&D. More recent theoretical work moves beyond this simple dualistic problem. while more incremental innovations may emerge from practice – but there are many exceptions to each of these trends. selling their product.Companies such as Sony." But innovations may be developed by less formal on-the-job modifications of practice. what exactly drives innovation in organizations and economies remains an open question. For companies with a portfolio of businesses in different industry sectors. integration within the firm.innovation occurs at the boundaries of organisations and industries where the problems and needs of users. upstream with key suppliers and downstream with demanding and active customers. The Linear Model of customized response. flexible and innovation One of the first (theoretical) frameworks developed for historically understanding science and technology and its relation to the economy has been the ―linear model of innovation‖. continuous . emphasis on linkages and alliances Fifth: Systems integration and extensive networking. and the potential of technologies can be linked together in a creative process that challenges both Failure of innovation • • • • • • • • • • Poor Leadership Poor Organisation Poor Communication Poor Empowerment Poor Knowledge Management Poor goal definition Poor alignment of actions to goals Poor participation in teams Poor monitoring of results Poor communication and access to information Innovation Models Table 1: Progress in conceptualizing innovation: Rothwell’s five generations of innovation models Generation : Key features First and second : The linear models – need pull and technology push Third : Interaction between different elements and feedback loops between them – the coupling model Fourth : The parallel lines model. aspects that are obviously important in today's fast-paced market. Thus a project must pass through a gate with the permission of gatekeeper before moving to the next succeeding phase. performing tasks concurrently). testability. including cost. Also innovation process in enterprise involves series of sequential phases/steps arranged in such a manner that the preceding phase must be cleared before moving to next phase. manufacturing engineering and other functions are integrated to reduce the elapsed time required to bring a new product to the market. including. from conception to disposal. and ends with production and diffusion: Basic research → Applied research → Development → (Production and) Diffusion The Stage-Gate® model describes how a firm should structure its product development process using a sophisticated system of project phases and milestones. Also known as ‗Traditional Phase Gate Model‘. product or services concept is frozen at early stage so as to minimize risk. Concurrent Engineering is a systematic approach to the integrated. The overall goal being that the concurrent nature of these processes significantly increases productivity and product quality. It refers to an approach used in product development in which functions of design engineering. This approach is intended to cause the developers from the very outset to consider all elements of the product life cycle.[ The second concept is that the preceding design activities should all be occurring at the same time. producibility. The product development process is seen as one of the key factors that determine the success of new products. then adds applied research and development. environmental impact and finally disposal and recycling. maintenance issues.‖ Concurrent engineering is a work methodology based on the parallelization of tasks (i. concurrent design of products and their related processes. from functionality. The model is based on 60 case studies on efficient product innovation processes. The basic premise for concurrent engineering revolves around two concepts. or concurrently. The model postulates that innovation starts with basic research. assembly. The first is the idea that all elements of a product‘s life-cycle. This philosophy is key to the success of concurrent engineering because it allows for errors and redesigns to be discovered early in the design process when the project is still in a more abstract and possibly digital . quality and user requirements. under this model.Innovation is an early model of innovation that suggests technical change happens in a linear fashion from Invention to Innovation to Diffusion.e. should be taken into careful consideration in the early design phases. schedule. manufacturing and support. .realm. including manufacturing. 3. Doing several things at once. and that responsibility is not abdicated once one aspect of the work is done. Increased effectiveness in transferring technology. As soon as new information becomes available. Increased efficiency and performance. hardware and software design. Increased positioning in a highly competitive world market. Lower manufacturing and production costs. Integrated project management It ensures that someone is responsible for the entire project. schedules. marketing. it is shared and integrated into the design. Cross functional teams are important to the effective sharing of information in a timely fashion. Potential Advantage of Using Concurrent Engineering Faster time to market which results in increased market share. Concurrent product realization Process activities are at the heart of concurrent engineering. Cross-functional teams Include members from various disciplines involved in the process. and so forth 2. Incremental information sharing It helps minimize the chance that concurrent product realization will lead to surprises. Reduced defect rates. Increased customer satisfaction.[4] Concurrent engineering elements 1. Improved quality of resulting end products.=== 4. Increased accuracy in predicting and meeting project plans. the design team can avoid what often become costly errors as the project moves to more complicated computational models and eventually into the physical realm. such as designing various subsystems simultaneously. is critical to reducing design time. timelines. Higher reliability in the product development process. and budgets. By locating and fixing these issues early. Organizations must be constantly on the lookout for discontinuous new products and/or services. Shorter design and development process with accelerated project execution. on the speed of innovation in order to develop and bring new products to market faster than the competition (Jonash and Sommerlatte 1999). Hammer and Champy (1994) introduced the concept of radical reengineering based on their assertion that for companies to achieve maximum efficiency and effectiveness requires radical process reengineering of the organization and its processes. Higher return on investments. organizational learning and knowledge management. Discontinuous products and services are increasingly likely with ever-faster new product/service development. Some have argued that what is needed today is radical process innovation.g. technology. new goods or services put on sale). have become shorter and shorter. at least in the developed world. 1. Organizations must direct greater attention to new product development. with the more recent attention directed at change management. in particular. and strategy). which changes the way a given good is produced within the firm or across a supply chain. increasingly. causing business survival to depend on new product development and. Economics of Innovation/ Economic conceptions of innovation Innovation economics or economics of innovation is a growing economic doctrine that reformulates conventional economics theory so that knowledge. Because processes lag far behind what is possible given technological advancement. a product innovation (e. each of which can vary in the degree of newness (incremental to radical) and impact (sustaining versus discontinuous). Innovation economics is based on two fundamental tenets: that the central goal of economic policy . Corporations today. 2. entrepreneurship. it is not possible to achieve the necessary transformation through incrementalism. a process innovation. Product/Service Innovation Incremental product/service innovation is oriented toward improving the features and functionality of existing products and services. Types of Innovation There are three main types of innovation (process. are reaching the limits of incremental process improvement. Radical product/service innovation is oriented toward creating wholly new products and/or services.Product life cycles. while maintaining and improving their existing products. Process Innovation Process innovation became an important topic with the rise of the quality and continuous improvement movements and. and innovation are positioned at the center of the model rather than seen as independent forces that are largely unaffected by policy. then again. product/service. Ability to execute high level and complex projects while minimizing the difficulties. 3. The following summarizes the various objectives that management should aim for under the innovation management stage . 1934. Arrange current and potential future alliances in a portfolio that can be tapped when needed. At the outset it is important that the culture of the organization empowers employees and encourages them to submit their ideas. 4. and define when and how such alliances are to be made (governing conditions). Effect the necessary structural changes to arrange skills throughout the organization in competence centers. Joseph Schumpeter defined economic innovation in The Theory of Economic Development.should be to spur higher productivity through greater innovation. Most importantly management should adopt the appropriate innovation strategy to lead the innovation process and manage the innovation portfolio. and enable it attain its vision. Boston. Harvard University Press. The introduction of a new good — that is one with which consumers are not yet familiar — or of a new quality of a good. Main Goals of Innovation Management Effective innovation management requires the implementation of a number of processes and the employ of a number of tools. Deciding upon the innovation strategy that best fits the organization‘s situation. Define a criteria for the selection and prioritization of projects within the portfolio to weed out less probable projects as soon as possible 5. Creating a portfolio of innovation projects to translate competitive strategies and to manage risk across the whole organization. Develop and implement methods that enable tapping into the organization‘s intellectual capital . to enable the formation of the right team for the purposes of the innovation project. and that markets relying on input resources and price signals alone will not always be as effective in spurring higher productivity. Foster an organizational culture that promotes innovation by allowing employees time to innovate and the implementation of their own ideas for improving job performance. and thereby economic growth. Effect a shift in the way the organization sees itself where innovation is recognized as the way of doing business 2. 8. 7. 6. Germany.[2] Technology can diffuse in multiple ways and with significant variations. Japan's prefectural and municipal technology centers (Kohsetsushi) demonstrate new technologies to firms. government laboratories. as well as public technology centers. often extending to hands-on training and pilot production. the Industrial Technology Institute (Michigan) offers a Performance Benchmarking Service which allows companies to compare their use of technology with that of comparable and best practice firms. the technology diffusion measures which form the subject matter of these definitional efforts broadly include the following: Awareness-building and technology demonstration. varied forms of informal knowledge trading [4]. Technology also diffuses through the internal "catch-up" efforts of firms. and such practices as reverse engineering. and peer firms. quality. In the United States. and Spain identify "good practice" firms and structure opportunities for other companies to visit these models and learn how they . their possible applications.Technology diffusion involves the dissemination of technical information and know-how and the subsequent adoption of new technologies and techniques by users. While there are different classifications schemes. and universities. and they may be acquired from a variety of sources. or processes. a program sponsored by the Georgia Institute of Technology and Georgia Power (USA). [10] Similarly. which emphasizes the development of new knowledge. Technology diffusion can be contrasted with technological innovation. improved manufacturing. and their benefits and costs. Although classic models of technological development suggest a straightforward linear path from basic research and development to technology commercialization and adoption. workforce. or training methods). and between different industries and enterprise types. across time. including private vendors. A method of awareness-building attracting increasing interest is benchmarking.[1] In this context. depending on the particular technology. and follow-on technical changes. and government-oriented technology transfer. consultants. technology includes "hard" technologies (such as computer-controlled machine tools) and "soft" technologies (for example. manufacturing control systems. diffused technologies are neither new nor necessarily advanced (although they are often new to the user). the transfer and mobility of skilled labor. These measures seek to make potential users more knowledgeable about available technologies.[3] In many cases. Moreover. and software are available for potential users to see and try. in practice technology diffusion is more often a complex and iterative process. which frequently seeks to shift advanced technology out of laboratories into commercial use. the activities of professional societies and the trade and scientific press. Diffused technologies can be embodied in products and processes. products. Demonstration services are offered by the Center for Manufacturing Information Technology. the effective use of diffused technologies by firms frequently requires organizational. where computers.[11] The TOPS programs now found in the United Kingdom. over space. customers. S. operated by the Pennsylvania State University. in some cases. Information services often add further value by qualifying information requests and matching user needs with appropriate resources. team-building workshops. Technical assistance services are located in many applied technology centers. such as TelTech. new initiatives are underway to use the internet as a medium to service technical information needs. and distance learning. This encompasses a wide band of measures which support experts to assess business problems.a number of U. of Minnesota. conducted in many different forms. in this case (for a subscription fee) matching corporate technology needs with appropriate sources of expertise. and offers recommendations to firms in local industries. [12] Information search and referral services. to assist particular firms . the National Technological University and other organizations offer remote users throughout the United States video and satellite broadcasts on new technology and manufacturing topics. including on-the job training. Technical assistance and consultancy. A very common technology diffusion measure is thus training. In several countries. conducts assessments.. The effective deployment of technology and improved operational techniques invariably involves changes in human capital requirements. The European Union Community Research and Development Information Service (CORDIS) provides electronically accessible information about technology development program opportunities to service providers as well as potential users. in the Valencia Institute of Small and Medium Enterprise (Spain). classroom training. management seminars. for example. and Ohio. through cost-sharing schemes. including centers in Oklahoma. These measures address the tendency of technology users to under-invest in human capital development. [14] In some cases. Manufacturing Extension Partnership centers employ this approach. which are established in all counties of the country and offer information and other technical services to firms. with partial funding from the Pennsylvania Department of Commerce. which often not only hinders the initial decision to deploy a technology but can also lead to subsequent inefficiencies once . also offer specialized technology information services. a network of trained staff offers technological advice. Kansas. Examples of programs in this category include the Pennsylvania Technical Assistance Program (USA). For example. private consultants are engaged. These efforts aim to reduce the information search costs associated with technology diffusion. Media and new communications technologies can assist in awareness-building. to businesses access technical information. Training. Inc. For-profit companies. not to act on an undesirable investment). These measures seek to address limitations of expertise among both users and suppliers of technology and to stimulate and assist firms to take action (or. and assist in implementation.[13] and Denmark's Technological Information Centers.operate. identify opportunities to upgrade technologies and industrial practices. These measures also seek to shorten the time taken to commercialize new technological innovations and. focus research on key needs and opportunities. In a different context. Uncertainty about the compatibility of a technology can present barriers to diffusion investments by users.. The area of electronic commerce is currently one of those areas where efforts to forge standards is underway. training programs focused on industry needs in specific technological areas are offered by Australia's more than 60 Cooperative Research Centers. especially if small or mid-sized enterprises. To address the gaps between technology development and deployment. drawing on public and private resources. although federally-sponsored. The diffusion of technology can be accelerated by common agreement between technology developers and users about standards and technological compatibility. Often. In the United States. the National Science Foundation and the U. In the U. collaborative research efforts are embodied in the numerous applied technology centers now found throughout the OECD (and other) economies. special measures to promote training for technology diffusion may also address deficiencies among existing institutions and vendors (who may be unable to effectively mount courses in new technologies without additional support). Standardization. international exchanges are encouraged: in the United States. Collaborative research and technology projects. Measures have been developed to support the secondment of personnel to technical centers or other firms where new technologies are developed or in use. In Germany.S. through industry involvement. ministries have sponsored programs to subside research personnel in small and mid-size firms to help them absorb and develop new technologies. Increasingly. has promoted an industry-driven process of standards development. Germany. including those in areas of new technology. local public technology centers accept staff from smaller firms for periods of time to receive training in new technologies and participate in cooperative research. [15] Personnel exchange and the support of R&D personnel. Department of Commerce sponsor schemes to place engineers in Japanese companies and research institutions. often associated with polytechnic institutes. local Training and Enterprise Councils (known as Local Enterprise Councils in Scotland) aim to identify industry training needs. may lack the internal expertise to absorb new technologies or they may lack resources to apply their existing personnel to new research and technology projects. Potential users of technology. In Baden-Wurttemburg. Japan's prefectural public technology institutes and new third-sector projects conduct applied research and technology projects with individual firms and groups of firms.K. Additionally. and support appropriate training initiatives. For example. each of which conducts collaborative industry-focused research.in use. a range of collaborative public-private research mechanisms have been established. the development of . the quasi-public Steinbeis Foundation sponsors a system of about 130 technology transfer centers. the National Information Initiative. In Japan. Requirements may be set as to the user's own cost-share or match. In Finland. or large transportation projects. The diffusion of product and process technology through the promotion of new start-up and existing small technology-based firms often involves a financial element.standard measures to document quality. Collaborative efforts may be "horizontal" (for example. In some cases. The efforts seek to resolve common problems and share information and learning. through IS0 9000 and subsequent reference marks. Examples of policies range from the preliminary cost-sharing of private consultant assistance sponsored by the Minnesota Manufacturing Technology Center (USA) to grants through Italy's Act 696 to assist small companies in purchasing high technology equipment. "vertical" (suppliers and customers). In many cases. including banks and quasi-governmental corporations. In Britain.the joint-production or offset agreements typically found in military. Inter-firm cooperation. and various kinds of royalty agreements. equity or near-equity investments. A variation . and strengthen ongoing business and technology development relationships. achieve scale economies in service provision and technology deployment. or interest write-downs. Procurement policies may generate concerns related to free trade. aerospace. public financial policies to promote technology diffusion operate through intermediary institutions. "sectoral" (firms in the same industry) or "lateral" (firms in different industries but with shared interests in a technology). Other mechanisms are loan guaranties (often associated with third-party lending institutions). which then may require supplier upgrading programs. groups of small firms). the Support for Products Under Research and the Small Firms Merit Award for Research and Technology programs also support technology development in smaller firms. The Small Business Innovation Research program in the United States allocates a share of federal R&D budgets to support the development of technology-based small firms. has also facilitated the diffusion of quality measurement techniques and the avoidance of duplicative marks. loans. Procurement. defense procurement policies have favored small technology firms (through small business offsets) and the diffusion of new process technologies. Measures can include direct financial support or subsidies to enterprises. Purchasing and specification policies by public institutions and large private firms can have a role in promoting (or constraining) the diffusion of technologies. applied technology and implementation programs have sponsored the formation of more than 200 collaborative groups. In Germany. In the United States. involving both large and small firms. through grants. These measures are indented to reduce financial constraints among users associated with the initial or ongoing costs of adopting new technologies. the public support of large firm investments is associated with conditions for local procurement. Financial support. A series of new programs have sponsored different forms of inter-firm collaboration to promote technology diffusion. the Aachen Gesellschaft fur Innovation und Technologietransfer helps groups of . including the Kanagwa Science Park. Facilities for technology transfer. SPRINT and other more recent European Union projects have supported cross-country (EU) interfirm collaboration. These centers often extend the capabilities of existing research facilities. In addition to building physical facilities. institutional credibility and leadership. service providers. expertise. a complex which accommodates and assists new start-up technology firms. Regional or sectoral cluster measures. and complementary public and private assets (such as banks or training institutions). and skilled employees. computers. USA) brings together small and large firms within specific industries to address share problems and pursue best practice manufacturing and quality initiatives. Many countries have invested in physical infrastructure efforts to establish technology incubators and technology parks. such as information provision. involving all the main actors in the process of industrial and technological change. and other aspects of "social capital" have been shown to be extremely important in the diffusion of technology. The Advanced Technology Development Center at Georgia Institute of Technology encourages faculty to spin-off technologies through new start-up companies and provides space and services to new firms located adjacent to the campus. The New England Supplier Institute (Boston. Numerous new technology incubator facilities have been sponsored in Japan. or they may be industrydriven initiatives. These aim to improve links between technology developers and users through physical proximity. Levels of communication and dialogue between technology developers and users and among users.five or more companies identify common problems or needs and develop collaborative R&D projects. and exhibition facilities. For example. and strengthening links between users. [16] Regional or sector cluster measures can involve strengthening industrial associations. Local governments in Japan have also established new buildings for information exchange and diffusion for area small firms. A large number of applied technology centers and other facilities to promote technology transfer have been established. in Germany. training. . developing leadership strategies and shared visions. labor-management collaboration. and software. Japan has launched a technology fusion program where groups of about 30 small companies work with local brokers and technology centers to commercial new product technologies. and access to new equipment. a Baden-Wurttemburg Future Commission has promoted a "dialogue-oriented" approach to policy. building collaborative technology consortia. promoting forums of stakeholders. allowing shared access to facilities and equipment. Centers give a visible physical presence to technology diffusion policies and house many of the activities already described. comprising of meeting. governments have recognized the need to strengthen organizational capabilities and linkages within particular regions and industrial sectors. for example when associated with universities. technology demonstration. hearsay. intuition These steps may not always be pleasant. These devices may include: Interviews. questionnaires. Stating the goal provides a focus and direction for the group. The overall economic and social environment has important impacts on technology diffusion. goals. although in some cases tighter regulation (for example. in the environmental sphere) can promote introduction of new environmental technologies. human factors. A typical technology promotion measure is the offering of tax incentives or favorable depreciation schedules to enterprises that invest in new technology. statistics. history. Develop a Problem Statement It is essential to develop an objective statement which clearly describes the current condition your group wishes to change. Remember. The objective is to get as much information about the problem as possible. A good way to define the problem is to write down a concise statement which summarizes the problem. technical experiments. check sheets. statistics. Define and Identify the Problem This first step is critical. Macro-policy measures. new facilities. labor market policy. opinions. behaviors. environmental regulation. 2. State the Goal : Once the problem is defined. Writing the statement will ensure that everyone can understand exactly what the problem is. attitudes. SEVEN STEPS TO PROBLEM SOLVING: 1. and then write down where you want to be after the problem has been resolved. but after "venting" group participants may feel that the air has finally cleared and members can be more rational and cooperative. intellectual property protection. and tax policy. the cost of capital. frustrations.Considerations : When defining the problem. Hard Data Includes: Facts. brainstorming and focus groups. Measures to ease regulatory burdens are also common. It is essential for each group member to clearly understand the problem so that all energy will be focused in the same direction. personality conflicts. A measurable goal will allow the tracking of progress as the problem is solved. ask the following: Is the problem stated objectively using only the facts? . Sometimes information needs to be gathered via various devices to define the problem. time factors. This includes factors such as business cycle stability. 3. or in research and development. Make sure the problem is limited in scope so that it is small enough to realistically tackle and solve. It may be helpful to divide the symptoms of the problem into hard and soft data. 4. It is important to avoid including any "implied cause" or "implied solution" in the problem statement. Soft Data Includes: Feelings. a problem well stated is a problem half solved. it is relatively easy to decide what the goal will be. would focus on developing imaginative and innovative solutions. Try to view the problem from a variety of viewpoints. Using a variety of creative techniques. Is the scope of the problem limited enough for the group to handle? Will all who read it understand the same meaning of the problem? Does the statement include "implied causes" or "implied solutions?" Has the "desired state" been described in measurable terms? Do you have a target date identified 5. You may already be familiar with some of these topics. When the group agrees that every course of action on the list will be considered. It was first developed by Alex Osborn. Analyze the Problem: In this stage of problem solving. IDENTIFYING POSSIBLE SOLUTIONS: Identifying possible solutions to the problem is sometimes referred to as finding "Optional Solutions" because the goal is to complete a list of all conceivable alternatives to the problem. Asking each group member for input ensures that all viewpoints will be considered. Think about how the issue affects others. Go to the library or develop a survey to gather the necessary information. group participants create an extensive list of possible solutions. Brainstorming : Brainstorming is a problem solving approach designed to help a group generate several creative solutions to a problem. not just how it affects you. they will feel some direct ownership in the decision making process. . We are basically giving you step-by-step instructions on how to accomplish each technique with ease and success. but take the time to look through them anyway. an advertising executive who felt the need for a problem solving technique that. instead of evaluating and criticizing ideas. Delphi Methods Characteristics Not a group decision technique. Do not make the mistake of assuming you know what is causing the problem without an effort to fully investigate the problem you have defined. This may help put the group in the mood of generating consensus later in the decision making process. The information you will find is valuable to your group's success. 3. It is essential to spend some time researching the problem. questions should be asked and information gathered and sifted. Techniques Used in Solving Problems: These idea generation techniques are broken down into easy-tofollow steps that will help keep your group organized and on the topic at hand. Metaphors are wonderful. so long as we remember that they don't constitute a means of proof. A group's identity converges through these shared fantasies. Often used to analyze people's interests and values. so use metaphors as a way of thinking differently about something. large corporations. Enables a group to discuss indirectly matters that might be too painful or difficult to bring out into the open. and be aware of the metaphors you use. As by definition. a metaphor must break down at some point. Focus Groups Encourages unstructured thoughts about a given topic. The procedure is continued until a decision is reached. Universities. Excessive logical thinking can stifle the creative process. and asks them to comment in writing on each item on the list. Fantasy Chaining Characteristics Manifest theme is what the fantasy chain is about at the surface level. compiling a master list. Metaphorical Thinking : A metaphor is a thinking technique connecting two different universes of meaning. Make and look at metaphors in your thinking. Helps the group define itself by creating symbols that are meaningful and that help determine its values. each other. Latent theme is the underlying theme (what the group members are really thinking about). Involves presenting a problem or an issue to the appropriate individuals. and political candidates use focus groups to understand how others perceive their strengths and weaknesses. The list with comments is then circulate to the participants. Helps a group deal with emotionally "heavy" information. The key to metaphorical thinking is similarity. and what they are about as a group. circulating this master list to all participants. Good for when time and distance constraints make it difficult for group members to meet. Effective way in which groups create their shared images of the world. . asking them to list their solutions. SELECTING THE BEST SOLUTIONS Six Steps to Decision Making Define and Identify The Problem . when and what action is necessary. Some suggested monitoring techniques are: Group meetings Customer/user interviews Surveys and written questionnaires Quality control spot checks . Develop Contingency Plans The best laid plans of mice and men. Divide the Solution Into Sequential Tasks Looking at your solution as one task may seem too great an undertaking.Even the best of plans get stalled. This monitoring should take place regularly until all tasks are completed. If this is the case. sidetracked.4. State The Case Briefly What Decisions Have to Be Made? Specify Feasible Alternatives Identify Morally Significant Factors in Each Alternative Develop an Action Plan An action plan is a chart that lists the tasks that need to be done and identifies who will be responsible for each. Showing that the problem solving process was an organized and orderly process will convince others that the solution is valid. members who select the solution should clearly explain why they selected it to the ones who will implement it. Most times these circumstances cannot be prevented. Having such a plan will keep the momentum going instead of having to stop and figure out what to do when an unplanned event occurs. It is much more productive to divide it into sequential tasks which act as measurable steps toward the solution. and how. When dividing the solution into tasks. where to start. and who will do it. 7. Implement the Solution Sometimes the groups who choose the solution are not the ones who will implement it. what is to be done. Monitoring A designated member of the group should monitor whether or not specific tasks are being performed or short-term targets are being achieved as planned. but you can and should prepare for potential kinks by having a contingency plan. be sure to include a timeline. or must be changed midstream because of something unforeseen. l e a d . e m p l o y e e s w i l l e x p e c t e f f e c t i v e a n d s e n s i b l e p l a n n i n g . c o n f i d e n t a n d e f f e c t i v e decisionmaking. is the ability of leadership to. I f y o u a r e t o m a n a g e c h a n g e effectively. In a climate of distrust. during and after change implementation is the . employees will look towards the leaders for a number of things. and regular. competence. which. The best way to summarize is that there is a climate of trust between leader and the rest of the team. results in an organization becoming completely nonfunctioning. W e c a n c a l l t h e s e p r e p a r i n g f o r t h e J o u r n e y . have no faith in the system or in the ability of leaders to turn the organization around. The Role of Leadership In an organization where there is faith in the abilit ies of formal leaders..well.. bring s hape for better times in the future. Poor leadership means an absence of hope. I n o r g a n i z a t i o n s c h a r a c t e r i z e d b y p o o r l e a d e r s h i p . complete communication that are timely. must labor un der the weight of employees who have given up. and After Arrival. We will look more carefully at each of these. S l o g g i n g through the Swamp. if allowed to go on for too long. a n d c r e d i b i l i t y o f s e n i o r a n d m i d d l e m a n a g e m e n t . clearly the most important determinant of "getting through the swamp". Audit Checkpoints on action plan Personal inspection of all work Budget controls the Role of Leadership in Change Management When change is imposed (as in downsizing scenarios). The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. The existence of this trust. Leadership before. The organization must deal with the practical impact of unpleasant change. employees will perceive leadership as supportive. concerned a n d c o m m i t t e d t o t h e i r w e l f a r e . employees expect nothing positive. e m p l o y e e s l e a r n t h a t l e a d e r s w i l l a c t indecipherable ways and in ways that do not seem to be in anyone's best interests. you need to be aware that there are three distinct ti mes zones where l e a d e r s h i p i s i m p o r t a n t . During drastic change times. Also during these times of change. and that makes coping with drastic change much easier. but more importantly. w h i l e a t t h e s a m e t i m e r e c o g n i z i n g t h a t t o u g h decisions need to be made. and when to focus on building and moving into the future. Second. w i t h e m p l o y e e s g r i e v i n g f o r w h a t i s l o s t a n d initially unable to look to the future. That is why it is necessary to begin the movement into the new ways or situations. As a leader you need to establish credibility and a track record of effective decision making. we are talking about leading in a way that lays the foundation or g r o u n d w o r k f o r A N Y c h a n g e s t h a t m a y o c c u r i n t h e f u t u r e .key to getting through the swamp. the period from the announcement of change through the installation of the change. fear. so that there is trust in your ability to figure out what is necessary to bring the organization through. Focusing only on the new vision may result in the perception that the leader is out of touch. by the time you have to deal with difficult changes. loss of direction. During this period. and lack of clarity a bout direction and mandate. First. Focusing only on feelings. and helping employees to understand the direction of the future. but here we are talking about the period w h e r e t h e i n i t i a l i n s t a b i l i t y o f m a s s i v e c h a n g e h a s b e e n r e d u c e d . it may be too late. During this middle period the organization is the most unstable. reduced productivity. by building healthy organizations in the first place. After Arrival In a sense you never completely arrive. characterized by confusion. P r e p a r i n g i s a b o u t building resources. who are better able to cope with infection or disease than unhealthy people. organization that are healthy in the first place are better able to deal with change. the leader must work with employees to begin creating a new vision of the altered workplace. may result in wallowing. Prepare For the Journey It would be a mistake to assume that preparing for the journey takes place only after the destination has been defined or chosen. Slogging Through the Swamp Leaders play a critical role during change impl ementation. cold and uncaring. P e o p l e h a v e become . effective leaders need to focus on two things. the feelings and confusion of employees must be acknowledged and validated. Much like healthy people. if h aven't established a track record of effective leadership. Unfortunately. A key part of leadership in this phase knows when to focus on the pain. When we talk about preparing for the change journey. It c a n b e a p e r i o d o f e m o t i o n a l i s m . s u c h a s examination of unwieldy procedures or Total Quality Management. For a man to do something. All creations-. science and technology are all the results of thinking. All our deliberate action starts from our deliberate thinking. bad temper and other negative tendencies creatively and constructively. Thinking and Lateral Thinking. It has been found by Dr.Edward de Bono that when school students were taught to think effectively. and more stable. thinking starts with a problem and ends in a solution. Thought and action are inseparable .less emotional. Can We Improve Our Thinking Ability? Dr. Conclusion Playing a leadership role in the three phases is not easy.he should imagine it. can shine in social life. Edward de Bono says that thinking CAN be improved just like any skill because thinking according to him is a skill. are now more open to locking in to the new directions. thinking is a tool for adapting ourselves to the physical and social environment in which we are in. and with effective leadership during the previous phases.they are actually the two sides of the same coin. All human achievements and progress are simply the products of thought. he should first see it in his mind's eye -. By developing one's thinking abilities it is possible to transform one's aggressive tendencies. In other words. The evolution of culture. By developing one's thinking skills one can make achievements. is to arrive at a state where thinking is no more necessary at all. think about it first. Thus. you have to deal with your own reactions to the change. mandate and ways of doing things.Defined Introduction: Thinking is the highest mental activity present in man. This is an ideal time for leaders to introduce positive new change. The Purpose of Thinking: The purpose of thinking. paradoxically. literal or scientific --first occur in the creator's mind before it is actually given life in the real world. art. can attain emotional.whether artistic. . before he can do it. Not only do you have a responsibility to lead. and your role in it. can become successful. their ill-temper and aggressive tendencies reduced significantly. Why Should We Improve Our Thinking Skills: The benefits of developing thinking ability are manifold. but as an employee yourself. He has developed many useful techniques for training thinking skills. social and economic maturity and so on. literature. 2: Less Educated or Uneducated can never become good thinkers. critical thinking.Clinical Psychologists have also found that those who have neuroses are poor thinkers compared to normals. arguments. problem solving are given over importance a need to become correct and successful all the time is developed in the student. Misconception No. This empowers them to go through less explored answers and even find original answers. Misconceptions Regarding Thinking Misconception No. The more IQ one has.1: The present education system develops and enhances thinking and so the more educated you are the better thinker you are. Misconception No. experiment and to experience. Thus. Again. This kills the student's natural tendency to explore. Creative thinking has almost no place in current education. book-answers) and so are forced to explore. when neurotics were taught to think effectively. problem solving and creative thinking. the highly educated person ends up having lesser ability to think creatively although he/she may have a lot of information at his/her disposal and also have admirable abilities in logical and critical thinking. the better thinking ability one has. those who have lower IQ have only low thinking abilities. education suppresses free thinking.3: IQ and thinking ability are the same. Interestingly. education even destroys creative thinking abilities by its over emphasis on logical thnking and critical thinking which are relatively lower types of human thinking. less educated display higher abilities in creative thinking.e. experiment and experience things themselves. On the contrary. as a rule. they showed a remarkable reduction in their neurosis. .. It has also been found that those who have average IQ can become better thinkers. Fact: It is true that those who have greater thinking ability. our present education system is so information oriented that it gives ready-made answers. Fact: Actually. Moreover. argument. they do not have ready-made-answers (i. Again. Fact: Actually. But this does not mean that all those who have high IQ are good thinkers. They very rarely use creative thinking. Since reasoning. Neurotics scored significantly lower scores in decision making. Usually high IQ people use their thinking skills for logical thinking. Thus high IQ is actually a blockage to creative thinking. This is because they do not have an inflated ego that demands cent percent correct answers or success in all endeavors. have high IQ. the whole scientific community (and thus the whole mankind) believed that time was absolute. the thinker believes that there is no better solution other than that he has already found. Time Scale Error This is a kind of partialism in thinking in which the thinker sees the problem from a limited timeframe. Thus decision making. before Einstein. whereas lateral thinking is low probability thinking. the thinker examines only one or two factors of the problem and arrives at a premature solution. the thinker approaches it with prejudice or bias. Adversary Thinking This is a "you are wrong. the thinker selects the most logical solution possible. suppose you want to cut a cake or hard boiled .Misconception No. Initial Judgement Here.Vertical thinking and Lateral thinking. For example. Not only individuals but societies and even the whole mankind sometimes fall prey to this error. the thinker becomes very subjective. Arrogance and Conceit This error is sometimes called the "Village Venus Effect" because like the villagers who think that the most beautiful girl in the world is the most beautiful girl in their village. Lateral Thinking: Dr. de Bono speaks about two types of thinking -. Fact: This is the most terrible misconception regarding thinking. 4. 5. Dr. Errors in Thinking 1." type of reasoning.Edward de Bono (and also many others) have proved that thinking is a skill that can be enhanced by training and practice. 2. For example.4: Thinking ability. I should be right. In fact. decision making ability and problem solving ability are inherent and there is very little we can do to develop these. Instead of considering the issue or problem objectively. problem solving and creative thinking can be developed and improved. This will be the one that is the most used and the most tested one. That is. Politicians are the masters in this type of thinking and they use it to their advantage. So. Partialism This error occurs when the thinker observes the problem through one perspective only. In the former type. 3. Vertical thinking is high probability thinking. This blocks creativity. It can be likened to short-sightedness. He also says that it is possible to improve lateral thinking ( and thus creativity) by deliberate application and practice of the techniques he has devised. de Bono argues that creativity comes from Lateral thinking. it is possible to view the problem from a new perspective. Basic Nature of Lateral Thinking • • Concerned with changing patterns In a self-maximizing system with a memory the arrangement of information must always be less than the best possible arrangement • • Both an attitude and a method of using information Never a judgment Benefits of Lateral Thinking • • • • • • Constructively challenge the status quo to enable new ideas to surface Find and build on the concept behind an idea to create more ideas Solve problems in ways that don‘t initially come to mind Use alternatives to liberate and harness your creative energy Turn problems into opportunities Select the best alternate ideas and implement them . He gives two main techniques for improving our problem solving by lateral thinking: 1. This would in turn help you solve the problem easily. Dr. 2. Using a knife or a sharp blade to cut it is the most probable and most logical solution. The former is an example of a solution arrived at Vertical thinking while the later is an example of a solution arrived at using Lateral thinking. you can use a twine. Move Attention from One Part of the Problem to Another Part When we move our attention from one part of the problem to another. Divide the Problem into Small Sub-Problems This allows the thinker to perceive the problem in detail because he is able to approach each subproblem individually and thus he is able to consider more parameters.egg into two. But there are other less probable ways: for example. Each new model builds upon the collective creativity of previous models. everyone has substantial creative ability. very. . comfort. Creative people work hard and continually to improve ideas and solutions. by making gradual alterations and refinements to their works. This is the method of incremental improvement. always trying to make it a little better. look at the history of the automobile or any product of technological progress. so that over time. very few works of creative excellence are produced with a single stroke of brilliance or in a frenzy of rapid activity. but it is still there and can be reawakened. or reapplying existing ideas. a little better there gradually makes it something a lot better--even entirely different from the original. or chocolate-covered prunes. improvements in economy. like chocolate-covered strawberries. Contrary to the mythology surrounding creativity. The creative person realizes that there are other possibilities. In adults. Some creative ideas are astonishing and brilliant. changing. The creative person knows that there is always room for improvement. a flexibility of outlook. Creativity is also an attitude: the ability to accept change and newness. New ideas stem from other ideas. while others are just simple. a willingness to play with ideas and possibilities. improvements are made. rather than in something completely new.What is Creativity? An Ability. Believe it or not. the habit of enjoying the good. Much closer to the real truth are the stories of companies who had to take the invention away from the inventor in order to market it because the inventor would have kept on tweaking it and fiddling with it. creativity has too often been suppressed through education. like peanut butter and banana sandwiches. A simple definition is that creativity is the ability to imagine or invent something new. A Process. and durability take place. the step-by-step improvement. An Attitude. With each new model. but the ability to generate new ideas by combining. good. the new ones slightly improved over the old ones. practical ideas that no one seems to have thought of yet. for example. new solutions from previous ones. Often all that's needed to be creative is to make a commitment to creativity and to take the time for it. Just look at how creative children are. while looking for ways to improve it. Many of the very sophisticated things we enjoy today developed through a long period of constant incrementation. We are socialized into accepting only a small number of permitted or normal things. Creative Methods Evolution. As we will see below. Making something a little better here. Here the creativity lies in the refinement. For example. creativity is not the ability to create out of nothing (only God can do that). typewriter. Another creative person might see in the same transmission the necessary gears for a multi-speed hot walker for his horse. There may be other solutions thought of by other people. What is THE solution to putting words on paper? Fountain pen. one useful for blind people or freeway commuters. He paints it up and puts it in his living room. using a power drill. Xerox machine. someone noticed that a lot of people on dates went first to dinner and then to the theater. For example. Changing Direction. pencil. the dinner theater. paint can be used as a kind of glue to prevent screws from loosening in machinery. The key is to see beyond the previous or stated applications for some idea. general purpose spray cleaners can be used to kill ants. new idea. The screws are so much better that they can often be driven in without pilot holes. Why not combine these two events into one? Thus. With this method. Go beyond labels. If you discover a solution that works. Combining the ideas of a magazine and an audio tape gives the idea of a magazine you can listen to.Another example would be the improvement of the common wood screw by what are now commonly called drywall screws. Every problem has only one solution (or one right answer). Unfixate. solution. Myths about Creative Thinking and Problem Solving 1. This is sometimes called creative insight. Look at something old in a new way. He hooks it to some poles and a motor and puts it in his corral. expectations and assumptions and discover how something can be reapplied. One creative person might go to the junkyard and see art in an old model T transmission. Many creative breakthroughs occur when attention is shifted from one angle of a problem to another. where people go first to eat and then to see a play or other entertainment. it is a good solution. marker. printing press? . but that doesn't make your solution wrong. The shanks are now threaded all the way up on lengths up to two inches. or thing and to see what other application is possible. Synthesis. printer. The goal of problem solving is to solve the problem. remove prejudices. The points are self tapping. and most problems can be solved in any number of ways. dishwashing detergents can be used to remove the DNA from bacteria in a lab. ball point. They have sharper threads which are angled more steeply for faster penetration and better holding. two or more existing ideas are combined into a third. Reapplication. a paperclip can be used as a tiny screwdriver if filed down. For example. Knowledge does not require a reason. the creative thinker believes that something can always be done to eliminate or help alleviate almost every problem. This is not a whining. few things are impossible. the train. Curiosity." 4. We will be discussing and applying them. . and statements. even Star Trek type beams? 3. What is the solution to human transportation? The ox or horse. problems. Constructive discontent. a new solution. The question. the airplane. Constructive discontent is a positive. enthusiastic discontent. turn out to be quite necessary and solid. reflecting the thought. new solutions. A belief that most problems can be solved. 3. "Hey. and where this commitment is present. Ideas either come or they don't. I know a way to make that better. of course. There are many successful techniques for stimulating idea generation. a new path. Look at the history of any solution set and you'll see that improvements. beliefs. the wagon. the cart. 4. the jet. the SST? Is that the best and last? What about pneumatic tubes. Only a few problems require complex technological solutions." Knowledge is enjoyable and often useful in strange and unexpected ways. Creative answers are complex technologically. new right answers. 2. Creative people want to know things--all kinds of things-. but the ability to see a need for improvement and to propose a method of making that improvement. Challenge. proposals. hovercraft. are always being found. Many assumptions. who is likely to respond. The best answer/solution/method has already been found. Positive Attitudes for Creativity 1. Most problems you'll meet with require only a thoughtful solution requiring personal action and perhaps a few simple tools. Problems are solved by a commitment of time and energy. By faith at first and by experience later on.2. griping kind of discontent. Curious people like to identify and challenge the assumptions behind ideas. Even many problems that seem to require a technological solution can be addressed in other ways. Nothing will help. but many others have been assumed unnecessarily. the car. and in breaking out of those assumptions often comes a new idea. "Why do you want to know that?" seems strange to the creative person. "Because I don't know the answer.just to know them. Characteristics of the Creative Person curious seeks problems enjoys challenge optimistic able to suspend judgment comfortable with imagination sees problems as opportunities sees problems as interesting problems are emotionally acceptable challenges assumptions doesn't give up easily: perseveres. 3. Isn't it interesting here that hope produces problems? The belief that your hopes . opportunity knocking. the stroke of luck. you have defined your problem and can aim toward your goal. This is why the most creative people are "problem seekers" rather than "problem avoiders. Any new awareness you have that allows you to see possibilities for improvement brings a "problem" for you to solve. When you know where you are and where you want to be. saner. 2. A problem can result from new knowledge or thinking. When you can identify the difference between what you have and what you want. Train yourself to respond to problems with enthusiasm and eagerness. A problem is the difference between your current state and your goal state. A problem results from the recognition of a present imperfect and the belief in the possibility of a better future. The solution can and should be fun and exciting as you think over the various possible solution paths you might choose. rising to the opportunity to show your stuff. A problem can be a real break. a chance to get out of the rut of the everyday and make yourself or some situation better. and you will be amazed at the result. Note that problems need not arrive as a result of external factors or bad events. you have a problem to solve in getting to your destination. A problem is an opportunity for improvement. works hard What is a Problem? 1." Developing a positive attitude toward problems can transform you into a happier. more confident person who feels (and is) much more in control of life. Your hopes challenge you. will help shape the goals. technology is viewed from various perspectives: As an ‗engine for economic development‘. It includes managing the totality of the technology operations from concept commercialization‖. respectively. For ease of remembering. which inter alia aims at planning and developing the technological capabilities of an organization or a nation. Hence. The role of technology in fostering economic growth of nations and enhancing their industrial competitiveness has been widely recognized. one where the cause or source of the problem is attacked and the other where the effects or symptoms of the problem are attacked. methods and processes by which resources are actually transformed by humans to meet their wants. Technology Management (TM). efficiently and economically. which is embodied in productive skills. has now occupied the centre stage of decision-making. However. and values of the problem solver. The possibilities inherent in the problem. as a ‗strategic resource‘. Each of these approaches has three basic forms. organization. we can call these the stop it and the mop it approaches. technology and other business assets by optimizing the relationships between the technology functions of the business enterprise.can be achieved will give you the will to aim toward the better future. TECHNOLOGY INTRODUCTION : The word ‗technology‘ has a wider connotation and refers to the collection of production possibilities. resources. As we detail these approaches and their forms.at both national and firm levels. Gendron (1977) has provided a more comprehensive definition: ―A technology is any systematized practical knowledge. through TM embraces several interconnected issues such as: technology policy. Ferré (1988) has defined technology as ―practical implementations of intelligence‖. or machinery‖. and challenge is another definition of a problem. sometimes the goal will be only to treat the effects of the problem. engineering and managing with research. development and manufacturing in order to meet the operational goals of the business unit effectively. and as a ‗competitive weapon‘. together with the ambitiousness. What is a Solution? solution as the management of a problem in a way that successfully meets the goals established for treating it. through its domineering influence over industrial productivity. Sometimes the goal will be to eliminate the problem entirely. It is the process of integrating science. based on experimentation and/or scientific theory. There are two basic approaches to solving problems. techniques. This necessitates effective management of technology . .economic development. ―Managing technology is a method of operation that leverages human resources. Further. technology has emerged as the most important resource that contributes directly to socio. let's use the problem of a leaking water tank to illustrate each one. technology and other business assets by optimizing the relationships between the technology functions of the business enterprise. finance and administration may have begun formally while others may still be embryonic at this stage. Nevertheless. such as engineering. Many other important functions are carried out with the help of hired consultants or agencies. and the feasibility and viability of R&D at this stage are also uncertain. the scope of such an application may not be clearly known to the firm and the related knowledge may still be abstract. human resource management in terms of innovative capabilities. manufacturing. firms seldom do it without a specific application in mind. but have no desire to develop the technical expertise needed to . The primary entrepreneur(s). Some of the functions. ―Managing technology is a method of operation that leverages human resources. technical specialists are. Hence. technology transfer. 1) Cutting-edge: This stage refers to the birth of a new technology. here. is on its Research and Development (R&D) to a focus of demonstrable form. A technology typically evolves through the following stages in its life cycle‘. but only ineffectively and inefficiently. development and manufacturing in order to meet the operational goals of the business unit effectively. Technology Life Cycle (Tlc) The nature of a technology and its implications to firms have been observed to undergo perceptible changes over its life span. The market largely consists of less sophisticated customers who seek all the benefits of state-of-the-art technology. ideal for marketing the technology. flexibility and contribution. engineering and managing with research. Hence. technology strategy. the need for financial support for R&D and for testing prototypes is also a pressing concem at this stage.technological forecasting and assessment. it is more convenient to consider it as a series of discrete stages for the purpose of better understanding and analysis. 3) Advanced: The gradual standardization of technological characteristics leads to rapid market expansion. process technology and product technology and their continuing improvement. the state-of-the-art technology can respond easily to the varied market requirements. However. Hence. The market witnesses a high rate of product innovations and as a result a great product diversity can be observed. The production process will be usually nonstandard. 2) State-of-the-Art: This stage in a TLC begins with the deployment of cutting. technologyinduced as well as market-oriented Research and Development (R&D). the target market. It includes managing the totality of the technology operations from concept through commercialization‖. Although it is correct to view a TLC as a continuum. perhaps. and technology project management.edge technology to solve customers‘ problems. The customer base state-of-the art technology is usually small. It is the process of integrating science. but sophisticated. Although basic research forms a major part of the effort in this stage. efficiently and economically. the technology is no longer of the hi-tech variety available with only a few suppliers. 5) Decline: During this stage. and division of labour is more pronounced. At this stage. it may not be easy for the new technology to wipe out the older technology one and pervade the market. 4) Mainstream / Mature: As technology enters this stage. coupled with the functional superiority of the next generation technology. This may help the firm to maintain and improve upon growth momentum and market position. there is a possibility that the rapidly increasing demand may cause manufacturing and marketing capacity crises which will call for a major transformation in the organization structure. segmentation. An innovation strategy identifies the technologies and markets the firm should best develop and exploit to create and capture value. This market calls for professional marketing. This may be achieved by huge capital investments or shifting the production base to the Third world. simple model of four interrelated elements involved in innovation strategy. However.tion and reconfiguration of a firm‘s resources. including: Innovation strategy helps to focus attention on . Parallelly. It entails judgement about which kinds of innovation processes (discussed in Chapter 3) are most appropriate for the firm‘s circumstances and ambitions. The increasing marginal cost of its improvement. the scope for further improvement of the technology diminishes rapidly. The organization will have grown in size and will call for more formal structures. Hence. financial and administrative crises are also likely. the scope for further product innovations reduces and process technology becomes the target of innovative effort of firms. However. The potential profits attract a Large number of competitors and hence. the firm will be better managed by a professional management team than entrepreneur/owner. and further standardization are bound to occur. It does so within the limits of the resources available to the firm to support current and future innovation efforts and its evolving corporate strategy. A firm‘s survival in the market beyond this stage indicates its relatively efficient operations. results in the older technology giving way to the new one gradually. the strategic thrust shifts to efficient and economic production for minimizing costs. A market shakeout. even the production process gets so well integrated that the possibility of any major changes in product or process technological elements will be limited and product differentiation becomes difficult. and culture. gradually. the competition will shift to customer service.understand the technology. When the production costs also cease to offer comparative advantage. communications. and systems. The overlap between the above successive stages of a TLC continuous process rather than a set of discrete stages. However. Its crafting is supported by a number of innovative capabilities that steer the configura . makes it a An innovation strategy guides decisions on how resources are to be used to meet a firm‘s objectives for innovation and thereby deliver value and build competitive advantage. In this stage. a part of the production system is likely to be automated. organization. communities within which the firm operates. trademarks). An innovation strategy helps firms decide on the right things to do. practices. Organizational resources (the routines.Subsequent chapters of this book examine the various elements of the innovation process. RESOURCES FOR INNOVATION Financial resources and appetite for and tolerance of risk. access to lead customers. knowledge of markets). When culture is out of alignment with mission. and the level of adhesion and trust within them). particularly those with a large and ever-changing pool of volunteers. technological collaboration. Technological resources. and operational strategy.R&D. and policies within the firm.how these resources.operations. capabilities. suppliers. Organizational culture plays an especially critical role in most nonprofits. INNOVATION PROCESSES Innovation strategy involves deciding upon the most appropriate innovation processes for the firm‘s context and targets—whether these processes are relatively simple or complex(seethediscussionlaterandChapter3onthevariousgenerationsofinnovation process). it can become a significant liability for the organization. Marketing resources (ownership and market penetration of brands. which. The reasons why innovation is a strategic management issue is because it is intimately linked to the capacity of the firm to deliver value: BUILDING ORGANIZATIONAL CULTUREThe importance of organizational culture and how it contributes to organizational effectiveness and achievement is well established. effectiveness. which can have both positive and negative implications. Networking resources (partners. procedures. including the development and maintenance of supportive networks and communities.creatingnewproductsandservices. and processes are best developed and deployed to meet corporate objectives. core values. Nonprofits generally evolve from a group of people working on a common cause to solve a community problem. and longevity. patents. Human resources and their capacities for innovation. What originally holds these individuals together is their . Organizational culture is possibly the most critical factor determining an organization's capacity. craft processes). It can also contribute significantly to the organization's brand image and brand promise. their innovation processes help them do things in the right ways . both physical (plant and equipment) and intellectual (knowledge.andgenerating economic returns through commercialization. customers. when combined. People do not invest in the vision of a current or past leader. people need a deep understanding of why the organization was created. rituals. what brought its members together in the first place. Is it an organization with a mission-driven contemporary purpose and strategic focus supported by a healthy organizational culture? Or have once-effective human systems and their procedures. If the culture within an organization fails to evolve and change as rapidly as the social conditions in the community and society. such transformation and enhancement is best accomplished through a process of shared. the transformation of the organization as a whole is only achieved through the change and growth that takes place within each member of the group. Reaching a shared vision can only be accomplished with a language and process that promotes inclusion and connection of everyone concerned. In my own experience. In reality. These predictable and promoted behaviors and the written artifacts created by the groups as a whole gradually become the organizational culture. Human systems naturally evolve from habits of behavior and thoughts based on these shared assumptions and values. Types of organization culture . the organization's culture often loses sight of the commitment or purpose that brought people together in the first place. To keep organizational culture vital and relevant. a conversation about a shared vision marks the beginning of the process. they invest in their own vision. collaborative learning. As basic as it sounds. Conversation is the core process of shared learning in most work settings and is the starting point to building individual human and organizational capacity simultaneously. and why the group still exists today.shared commitment or purpose and the common underlying assumptions and values about what they want to accomplish and how they hope to accomplish it. and bureaucracies--the organizational culture itself--replaced shared goals and values to become the dominant source of power and energy in the organization? When the organizational culture strays away from its original mission. the task becomes one of transforming the organization to revitalize the culture. and strategies. The organizational culture then becomes an end in itself rather than the means. goals. When a JV is not for a specific project and is for normal business on a continuous basis. institutes collaborate to help in spread of education and research. and so on. sharing their resources (assets) and expertise to establish a business entity and share the profits.END TERM EXTRA QUESTIONS: Joint Venture vs Collaboration Collaboration is a concept that is responsible for coming together of people to work towards a shared goal or objective. two persons collaborate to start a new business. JV is not a type of entity and it can take shape of a corporation. A joint venture is described as an agreement between two or more parties who cone together. Difference Between Joint Venture and Collaboration • Collaboration is a generic term that describes coming together of two or more entities for mutual benefit • Joint Venture is a specific entity that describes the purpose for which two or more parties come together for business • JV allows a party to gain easy entry into another country and also to use resources of the local partner in the venture. a limited liability enterprise. it can be considered as a type of partnership. There are countries lacking technologies and services in certain areas and these countries benefit a lot when they decide to collaborate with countries possessing them. . Joint Venture A joint venture is a particular example of collaboration that is formed especially for the purpose of business. collaboration is not limited to material exchange. Collaboration started as soon as people started to communicate with each other through words or written language. Control of the enterprise is also joint and no single party controls the JV. This article will highlight the differences between the two concepts – Joint Venture and Collaboration. It is an idea that has led to creation of international bodies where member countries cooperate with each other to achieve the objectives for which the body is set up. A joint venture can be formed between local as well as international parties. Joint venture is a special type of collaboration and there are many who cannot differentiate between the two. Joint venture allows a foreign party to get entry into another country‘s markets easily at the same time allowing it to use the resources of the local partner. partnership. Writers collaborate to finalize the script of a movie. and countries collaborate for specific issues to arrive at a solution or to lead to better. Collaboration Collaboration is best exemplified in the area of trade where two countries benefit by collaborating with each other as their citizens get products that are not naturally produced in their countries. friendly relations. However. team or leader taking a strong personal risk. followed by inaction. the further it is from the original entrepreneurship. it is necessary to keep going at all times. The skepticism can be stated quite bluntly or couched in polite words of support. and by so doing firmly implants the first vestiges of innovation culture. providing a transparency of process that instills confidence. driven by the passion of his or her idea. it was worth it! Hopefully. The right incentives can be summarized in three main elements: 1. Finally. Examples of good practices on giving time to innovators include these: . I am not sure which is more frustrating to the goals and efforts of the innovation manager. it is hard to win back. It is the third vital leg of innovation. and not be set in permanent molds or cast in stone. one must act in two fronts – creating the right incentives and removing the biggest blocks to innovation. this is critical – some foolhardy soul must take the first step. build trust. Such organizations. As in life. The role of personal and organizational courage cannot be underestimated. Still. the culture of rewards has to be modified to match the desired culture of entrepreneurship. are mostly populated by managers (albeit excellent professionals) and no longer with leaders. In this situation. and trust that even if the effort ultimately fails. How do you build and sustain a culture and climate for innovation and entrepreneurship? Practice. Succeed or fail.‖ This is a sensitive turning point. Also. The more mature and well established a business is. like their people. practice. persistence and discipline. repetition and leadership. practice. To build and sustain a culture and climate supportive of innovation. with patience. an ingredient that you may not expect is courage. Creating a culture of entrepreneurship is in fact quite a challenge. depending on the nature and maturity of the enterprise. the innovation manager must lead by example. invoke the bully pulpit and ultimately create ―a willing suspension of disbelief. Organizations. It is hard to think of successful. giving them a chance to be creative and bold. Particularly in risk-averse organizations or environments. the culture of entrepreneurship and risk taking can only be driven top down.• JV is characterized by joint control and no single party has outright control over the business entity. disruptive or breakthrough innovations without an individual. once trust is lost. Giving innovators the time and space required. by example. The reality is that most early claims of encouraging innovation and innovativeness are met with a hefty dose of skepticism. must learn to repeatedly reinvent themselves. the organization reciprocates by reward rather than retribution. who will bring new and fresh insights. Leaders allow culture. Promoting lots of activities away from the office. instead of those who prevent them Give too little resources to new ideas just to say you are trying them Punish failure instead of celebrating that the organization learned a new way that something won‘t work . Fostering connections and relationships. away from the traditional technical and administrative training. young people. Bring women. 2. Providing the right mix of diverse people on the innovation teams. and culture is maintained due to a system of positive and negative reinforcements. and will help you to build up an exciting innovation culture. people from the periphery of the organization and other outsiders onto your innovation team. close to final customers and consumers. here are some negative reinforcements you can employ if you really want to kill innovation: Make sure everyone knows that you know everything Organize your people into silos Call lots of meetings just because it‘s time to meet Always focus on how you succeeded in the past as a way to solve the future issues Make sure the near-term budget is the most important thing to talk about Take highly energetic people and make them work on mundane tasks Reward those who can put out fires. Giving the employees a small but fixed amount of weekly time to work on alternative and pet projects. Supporting alternative training programs on competencies and skills. If you are a leader. 3. How do you build the culture of innovation? It has to come from the leaders of the organization. A real support to conversation is an open exchange of ideas. away from the routine activities required for the main business. ―The culture of the empire comes down from the home of the Emperor. Consider flattening the organization and making it easy for an idea to bypass the chain of command if it doesn‘t have to do with day-to-day operations. It‘s energizing. In general. In this context. It tends to be the management bureaucracy. companies need to rethink who they are focused on rewarding. people want to share their ideas. If you want innovative behavior. unless there is bad news to share or you want to wield the ―hammer‖ to get things done Require a complete business rationale write up for new ideas Perhaps the most important lever for creating and nurturing an innovative culture is the actions of the CEO and his or her team. then it‘s not going to happen. Consider rewarding middle managers for allowing a flow of ideas. ―Be the change you envision‖ provides excellent advice for all leaders. if you don‘t see enough positive change. focused event designed around ideas — to generate new ideas. ―the nine layers of management. As an example. while not all companies can afford to give people 10 percent of their time to explore new ideas. then consider moving to a new company. The most persistent. the social change adage. Lots of innovation can occur at the grassroots. then start exhibiting it yourself. It‘s something every manager and business unit should be doing at least once a year. Ultimately. But it doesn‘t require a wholesale change in the way . at least not on a large scale and not in a repeatable manner. but if it doesn‘t eventually percolate up and receive the support it requires — or worse yet.‖ If the CEO‘s team doesn‘t exhibit innovativeness or at least a strong i nterest in entrepreneurial activities. Don‘t build innovation into your goals Don‘t kill pet projects that are failing Stay in your office and only meet with your direct reports and peers. consider taking more of an event-driven approach. or what one client called. Also. Life is too short to keep your head down if you truly care about creating the future. The Chinese say. each with a line item veto‖ that prove to be the greatest obstacle to establishing the right climate. if the opportunity is actively thwarted — people will pay attention and stop trying. First. People within organizations emulate and play to those who succeed. passionate people will either give up or leave and start a new venture. Breakthrough Management Group has a process by which a group of people come together in a sort of kaizen event — a structured. such as gravity. Key Difference: Discovery is known as the act of detecting something that already preexists and has been around over a long period of time. New discoveries are believed to be acquired through various senses. discoveries are used in order to advance technology or to given an insight to previous conditions. atmosphere. such as gravity. Inventions are generally patented in order to restrict other people from reproducing the same thing and taking credit for the object. Discovery could also include forces or other objects that are not solid in nature. old fossils and artifacts are excavated in order to see the type of creatures that we may have evolved from or the way a certain civilization lived during that particular time. due to carbon dating. ideas. which was only after an apple fell on Newton‘s head did he discover the law of gravity. force. gases. ideas or theories that are not in existence yet. An invention is expected to create a breakthrough in radical science and change the thinking. or collaborations that may have taken place. Discovery means to find. etc. ideas or theories that are not in existence yet. which are usually merged with preexisting knowledge and actions. however they are two different words and have different meanings. some discoveries are sought after because of questions that arise within a person or a community. Discovery is finding out or figuring out something that preexists. Managers that used to be tasked with figuring out how to do things better should now also be tasked with taking a look — at least once a year — at how they might do things differently. Some discoveries are also fueled by other discoveries. In addition to some discoveries being accident. For example. In the same example above. Invention is using objects. An . Invention is using objects. while invention is using objects that preexist to create something new that is first of its kind. we can only tell the dates of the artifacts and bones. Discoveries and inventions may seem similar because of something new being revealed. ideas or theories that are already preexisting in order to create a new object. Inventions usually require a process where in experimentation. figure out or even acknowledge something that has been in nature for a good number of years.the company works day-to-day. Discovery doesn‘t always have to be intentional and can also be stumbled upon by accident. Commonly. Discovery is known as the act of detecting something that already preexists and has been around over a long period of time. trial and error and alternations are required in order to create the perfect invention. ideas or theories that are already preexisting in order to create a new object. The search of answers for these questions usually results in various different types of discoveries. Incremental Innovation Exploits existing technology Low uncertainty Radical Innovation Explores new technology High uncertainty Focuses on cost or feature improvements in existing Focuses on processes. which he then goes through the process of creating using materials that are already in existence.invention could also be accidental. We have light bulbs today that are safe and use less electricity. products or services with products or services. These are also considered as inventions. Inventors also keep a proper record of their workings in a notebook or journal. Other inventors created technologies related to light bulbs. which made it cheaper to produce. more efficient. marketing or unprecedented performance features business model Improves competitiveness within current markets or Creates a dramatic change that transforms existing industries markets or industries. where a person might be trying to create something else and ends up creating something completely different and new. where each process that is followed is monitored and noted. where experts claim that in order for invention. processes. or creates new ones . Many inventions are also due to discoveries. the docking port would be considered as an invention even though the music player was already available. innovation is required. such as the telescope was invented in order to view the discovered planets. The nomads during the ancient ages decided to settle down resulting in the creation of tools and wheels. Inventions are practically ideas that a person has. Another example includes docking port for an already existing music player. During the time he created the light bulb. Inventions could also mean improvement of something that is already in existence but it is now altered with newer features and technologies. longer-lasting and more ecologically friendly. For example let‘s consider a light bulb (invented by Thomas Edison). which were then required to build houses and other things. Invention is also considered synonymous with innovation. Invention is also done in order to make lives easier and more feasible. it could only be powered for small amounts of time. Incremental Emphasis Cost or feature improvements in existing products. phase-gate model Informal. critical events are largely anticipated Formal cross-functional teams Cross-functional networks individuals. products and/or processes that transform the economies of a business Exploration of new technology Teaching the market about the new technology and learning from the markets how valuable that technology is in that application arena Trajectory Business Case Linear and continuous Detailed plan can be developed at the beginning of the process Sporadic and discontinuous Business model and plan evolves through discovery-based learning Occur sporadically throughout the life cycle. flexible model at early stages due to high uncertainties → formal at later stages after uncertainties have been reduced Organizational Structures Cross-functional project team Project starts in R&D → migrates into an incubating organization → transitions into a goal-driven project organization operates within a business unit Resources competencies and Standard resource allocation. services. or processes Technology Exploitation technology Prototyping Ironing out wrinkles near the end of the design phase of existing Radical Development of new businesses. informal Process Formal. the team has all competencies Creative acquisition of competencies and resources from a variety of internal and external sources Informal at early stages → formal at later required to complete the process Operating Unit Formal involvement from the very . often in response to discontinuities in the project trajectory Idea Generation & Opportunity Recognition Key Players Occur at the front end. Involvement beginning stages .