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The Importance Of Innovation Management

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Innovation management is the management of innovation processes. It actually refers both to the product and organizational innovation, but in this paper I will mention more about innovation in project based organizations.
Innovation management consists of tools, that allow managers and engineers to work together with a common understanding of processes and goals, also helps the organization to respond to internal and external opportunities and utilizes its creativity to bring new ideas processes and/or products to life.1 In this article I will be looking more at the new ideas and processes rather than products.
The creative capabilities of the workforce can be triggered and manipulated by the utilization of innovation management tool to ensure
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The most direct ways of innovation are technological and institutional innovation. Managing these innovations and innovation processes play a significant role in promoting and using technological, institutional innovations wisely.
The main goal of innovation management in a company is to create more convenient environment for encouraging innovation. This type of environment would help firms to create a more cooperation in projects and even provides a take-off platform for business ventures.3
Firms with high growth rate have only 4 differences out of all 15 key capabilities. These differences can be named as scheduling effectivity, identifying new opportunities, maintaining technological change and effective project management.4 As mentioned, identifying new opportunities and maintaining constant technological changes are consequences of innovation. Effective (time) scheduling can be counted as a key capability in project management.
This let me to formulate the following research question:
How do innovation and innovation management effect project based
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Effects of Innovation Management in Project-based Firms
3.1. Innovation Strategy
An innovation strategy should be consistent to mission, vision, goals and strategies of a firm. Firms should be dedicated to invest in research and development, manufacture innovative products and achieve substantial performance to be competitive.
Innovation strategy consists of financial goals and growth areas related to new products or services. The innovation strategy determines the strategies, which determine the aspects of methods and approach roads for a better and improved innovative potential of a company. In the literature, the general opinion is shaped by innovation quality and innovation strategy of the firm have a positive effect on innovation performance.16
3.2. Organizational Structure
Organizational structure is shaped as a result of its strategical focus on market dynamics and environmental effects. It is a critical factor for companies to create their organizational structure, which is capable of sharing information and resource between its functions, making strategic decisions and resolving conflicts, coordinating the active process of innovation management. Organizations can be categorized under two groups: organic and mechanic. Organic organizations are more suitable for works, which contain lots of uncertainties and mechanic organizations are more suitable for works, which contain less uncertainties. Based on this theory complicated innovation projects are not for those
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