The innovation value chain is a concept that replicates the idea of transforming raw materials into finished goods except that it transforms innovative ideas into practice. This article introduces a new concept that we have not covered extensively, and seeks to answer the question of how firms effectively and efficiently implement these new ideas into their corporate strategy. The authors described the three steps of the innovation value chain as idea generation, idea conversion and idea diffusion. This article encourages managers to view the entire process of innovation from end-to-end and to improve the weakest parts of the process. Moreover, the authors’ state: "A company’s capacity to innovate is only as good as the weakest link in its innovation value chain". Hansen and Birkinshaw give excellent examples to fix the weakest links in the three step chain.
A firm that has trouble generating new ideas is dysfunctional in building external and internal networks, therefore their ideas never prosper. The authors imply that a firm must have external sources either through solution solving or discovery via scouting appropriate sources. The authors describe how Proctor and Gamble and Eli Lily find solutions by asking advice of external sources through their websites and offering sizable rewards for the innovative solution. They also described how internal scouts were able to discover a solution for Siemens through an external source: doctoral student’s ideas. The article also emphasizes the importance of internal networks and the formation of cross functional teams to encourage personal networks. Proctor and Gamble has done this successfully through the development of its Olay Daily Facials. Innovation must be from a variety of sources externally and internally.
The authors also describe how a firm improves its idea conversion process via multi-channel funding and/or having safe havens. The multi-channel funding allows a separate part of the firm to be an internal venture capitalist and to oversee the entire innovation and parallel the funding with the level of commitment. The safe haven approach allows an innovation to escape the budget constraints but still be within the corporate oversight. Both approaches emphasize the importance of allowing ideas room to grow. The authors also stress the importance of having a high level employee playing the role of idea persuader. This is what Sara Lee did in persuading its Sanex soap product to all of its managers, a clear illustration of idea diffusion.
As Kerr is an educator and a professor in universities and not an economist, he examines his idea or creativity in the organization by making inquires starting from top management to the bottom in the organization and also to people who knew what the buyer or customer should be; then he would run it through his network in and outside GE to cross examination and double check or assessment (Davenport et al). Kerr’s successes effectively with the standing of ideas and creativity mainly rely on his continuing exploratory research with great creative thinking skills, expertise and motivation, and they also depend on his outstanding leadership and exceptional organizational culture of innovation in GE (Davenport et al, 2003).
Royal Caribbean Cruise Ltd (RCCL) has two distinct supply chains which create a unique challenge. Each supply chain is managed by a Provision Master. The first supply chain includes all food, beverage, and lodging inventories that needed for the trips. The second supply chain encompasses “corporate spend” materials, such as office supplies, printing services, hardware and software, printed materials, computer supplies, marine consumables (spare parts, fuel, lubricants, any and all services associated with the ship maintenance and etc).
...ir knowledge base through the lessons learned by working with a multitude of companies, each with their own distinct characteristics, they were able to transition from a product development company to a company that offers a strategic partnership that provides innovative solutions focusing on the business as a whole. Now, IDEO creates and enhances some of the most creative organizations on the globe. A major shift in the paradigm established in 2000 focus on invention and the individualist nature of product design. Innovative companies such as Procter & Gamble have benefited immensely from the years of innovative evolution and learning experienced by IDEO. The more IDEO learns, the more their customers learn. This in turn helps IDEO to further their knowledge base creating a continuous loop of design thinking seemingly driven by a perpetual motor that breeds success.
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Business organisations can benefit from unique viewpoints and ideas from their intrapreneurial employees. Often these progressive ideas may have the ability to drive the business further. Furthermore, the determined employee will reap precious experience and confidence to autonomously pursue their ideas and develop the business in the future.
This work begins by firmly anchoring business innovation within our company structure as well as defining innovation focal points that are relevant to our customers and hold growth potential. The key is cultivating a structured network with internal and external experts. This approach forms the foundation of our innovation
...f five people to generated new product ideas, among other tasks. One of their roles is to assist business units within 3M to generate new product ideas. They accomplish this by drawing up a plan to create ideas for products that will be marketable ten years in future. Once they have that plan in mind, they backtrack to the present year with new product ideas that are possible with today's technology. They then predict which additional products will be added year by year that will build upon each year's new technological advances to achieve their tenth year vision.
Blue Ocean Strategy is based on 150 strategic moves spanning more than 100 years that have been studied in over 30 industries. The authors’ objective was to compare successful companies to their less successful competitors to analyse for a trend and common strategy. The result was the blue ocean strategy, which emphasises creating uncontested markets. The book is divided into three parts. The first part of the book explains the “cornerstone” of Blue Ocean Strategy which is value innovation. Kim and Mauborgne say “[w]e call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space” (Kim and Mauborgne, 2005, 1...
When there is a freely exchange of idea among all participant, the innovation will be stimulated. One more thing is that the idea must be judged on its merits, not based on the author's roe or status,...
The open innovation principle has broader definition than the old one. First, in contrast with closed innovation principle, the new innovative concept allows companies to find new R&D ideas from both external and internal sources. External R&D sources usually bring vital values that significantly contribute to overall R&D performance while internal R&D sources only support to external R&D sources. Therefore, companies do not need to have good controls on internal processes because corporation between R&D firms is much more important. A successful company knows how to equally balance the external and internal resources and has a best use on those resources. Moreover, introducing products to market first could not guarantee success anymore. Building a good business model such as Facebook, Apple, etc. is the crucial factor for sustainable
Kelley,T. (2005, Oct.). The 10 faces of innovation. Fast Company, 74-77. Retrieved 6th March’ 2014 from http://web.ebscohost.com/ehost/detail?vid=9&sid=1d6a17b7-c5f7-4f00-bea4 db1d84cbef55%40sessionmgr10&hid=28&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=18386009
The success of any plan, strategy or process either at an organizational or individual level depends substantially on the level of creativity and innovation involved in the implementation process. However, the terms creativity and innovation have been incorrectly used interchangeably for a long time because most people lack awareness of their exact meanings, which to confusion in their use. Organizations or individuals that use innovative ideas rather than imitating the actions and strategies of others usually stand out from the rest and remain competitive because they are able to produce unique and quality brands, services and applications, which their competitors can only imagine. Blended with invention, creativity and innovation results
Knowledge management and innovation are interconnected. Good knowledge must be codified, combined and shared in order to achieve innovation. “Innovation distinguishes between a leader and a follower”, a quote made by Steve Job. Indeed, successful and unique innovation allows organization to stay ahead of competition, and allow them to be the market leader to shape the future of the industry. However, organization that fail to innovate will lose ground to competitors and can only be a follower in the industry trend. Innovation allows organization to discover existing and future opportunities that meet current customer’s need and future demand rapidly and effectively as technologies, markets or trends shift. Innovation focus on
Coyne, Kevin P., Patricia G. Clifford, and Renée Dye. Breakthrough Thinking from Inside the Box. Harvard Business Review (2007): 71-78. Print. The.
One of the potentially, most valuable channels for new ideas comes from those working in a business and every effort to maximize necessary input into identifying new and better ways of doing things should be made (ref).