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
Organizations are initially structured around tasks, and as the organization continues to grow, the structure within the organization takes on many characteristics. Not all structures are advantageous, especially if they are lacking in some areas. There is a relationship between structure and size of the organization that affect the centralization of the organization. At the highest levels, the personality of the chief executive may amend the organizations' structure. The structure within an organization helps define the roles and responsibilities among the members from each department and work group. The four general types of organization structure are functional, divisional, matrix, and project based. “Organizational structure is the skeleton of an organization” (Feigenbaum, 2013) and how these individuals relate to each another. Structure is a statement of the current affairs, not the ideas, intentions or improvement within an organization. When business leaders develop their initial plans for an organization, he or she looks at how to design a company and takes inventory of all the tasks, functions and goals of the business. The leader then develops groupings and ordering of job positions, departments, and human resources to effectively and efficiently perform these tasks. Technology, size, environment, strategy and goals affect an organizational structure and effects, whether they are categorized as mechanistic or organic.
Finally, we have to admit that there are no blade edge differences in organizational structures. A highly mechanistic organization may adopt some organic structure if it needs. For example, an organization may have a strictly formalized finance and human resources divisions while having an innovative marketing and product development divisions. Based on changing needs, a balanced between mechanistic structure and organic structure will help organization control its organizational assets, devise its tactical and strategic plans, and as a result, increase market share while gaining competitive advantage over its competitors.
Innovation is connected to the three strategies described above but it often involves more important changes to the product or service. As a strategy, it can imply the replacement of existing products with ones which are actually new, as opposite to correction and which imply a new product
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
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.
Innovation is defined as generation of new ideas or application of new ideas to existing situations to improve productivity, quality of care, and outcomes. Some of the principles of innovation are creative problem-solving; open, assertive communication to empower
The Innovative Process Management (IPM) initiative of Microsoft is by providing a helping hand in its customers apply information technologies to meet the challenges of delivering solutions which enable corporations advocate the end-to-end innovative process with greater orderliness, pellucidity, harmonious combination. The key component of Microsoft Office Enterprise Project Management (EPM) solution that expedite the innovation process is that the Microsoft IPM solution which is built on Microsoft Office SharePoint Server 2007.
This is an excellent and thorough research on innovation and strategic management. The book has clearly outlined the management strategies that should be put in place for a smooth running of business. The authors of this book went forward and gave detailed information on innovative ideas that should be used in the modern businesses. The book has not only given out the management strategies and innovative ideas but also how both can be integrated to develop business organizations. In the book, authors have indicated that managerial strategies
Change and innovation has become one of the basic concepts in the modern organizations. An organization’s competitiveness is determined by its desire to embrace innovation or introduction of new and/or modified products in the market. Managers of the top performing organizations manage them in such a way that they are able to derive maximum gain from its human and technical resources though prompt and effective responses to the business challenges identified. Maximum utilization of the human resources implies that the company must be able to exploit the skills as well as the imagination of the personnel in order to promote innovativeness from all dimensions of the organization. Through this process, an organization will be in a place itself in a position that effectively promotes continued innovation of new products and services for the market. However, it is important to note that organizations must be able to analyze critically their environment in order to identify the existing opportunities and problems. Innovation should be directed towards satisfying a particular need or solving a particular problem. Otherwise, the innovation may not contribute in any way to an organization’s success.
An innovation is gainful modification to the product or process. An existing product can be made better by adding more features modifying design to make it safer or more user friendly. Or the method may be modified to produce it in more cost effective way. Sometimes the raw materials are substituted to bring down the cost. All these are examples of innovation. In short Innovation is achieved by Value Analysis/Value Engineering.
Process Management can be defined as a concept which helps integrate performance excellence and quality into the strategic management of organizations. Process management includes activities such as defining a process, establishing responsibilities, evaluating process performance and also identifying opportunities for improvement. Innovation, on the other hand, can be defined as the conversion of knowledge and ideas into new or improved products, processes or services to gain competitive advantage. After reading the first article it is clear that it focuses mainly on three different programs that are associated with process management. These three processes are listed as TQM, ISO 9000, and Six Sigma.
Basically transformation strategies are quite complicated because the process of innovation in any business environments will depends on it. We knows that in order to develop a business environment that supports the activities of innovation, most of the organizations will require an extensive changes in terms of the culture and systems of the organizational itself. The process can be difficult to achieve and also can caused disruptive, cost overflowing and time consuming. The innovation can give the potential of long term benefits but most of organizations more interested in short terms gains and cost reductions. The...
Open innovation opens the doors for a vast array of ideas and suggestions that can help an organization succeed in being innovative. This will allow the organization to hold a competitive advantage when compared to their competition. Organizations who understand the importance of managing technological innovation will have an easier time succeeding than those organizations who feel they are safe and put innovation on the back burner. Managing technological innovation is essential in this day and age, where technology is advancing at a faster than
1).Innovation Management:Innovation Management is the form of looking into future, of being creative, imaginative .It is used in the growth of product and also organizational innovation. It also includes tools which allows higher management & engineers to communicate with basic understanding of goals and its processes .Its main focus is to allow the organization to react quickly occurring within an organization, using its efforts to implement new ideas or its products. It also involves persons in contributing to the development of the companies manufacturing and also its marketing. Through development also innovation process can be done. There are two types of process involved in innovation management one is pulled and the other is pushed. Pushed process is the one in which the organization uses its technology to discover profitable applications. Pulled process is the one in which the focus is mainly in developing the efforts to find the solutions. There are two phases in innovation management .First phase includes design of the innovation and second phase includes the implementation. Internal bench marking can be established to measure the innovation. Managers should focus on ones attention on innovation cause to be necessary to infer something from information received on the complexity.
Innovation has become management 's new imperative. The proven management tools, techniques and clichés once embraced, are being challenged and shelved for a new set of rules and a new way of doing business. Business as usual doesn 't cut it any more. Enter innovation management.