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January 24, 2025

Managing Innovation Within Firms - Trott - Chapter Summary

2025 India National Productivity Week - 12 - 18 February Theme - From Ideas to Impact: Protecting Intellectual Property for Competitive Startups.

The theme for Productivity Week 2025 provides a crucial platform to address the interconnected challenges and opportunities related to innovation, intellectual property (IP), and productivity within the Indian startup ecosystem.

For industrial engineers innovation and productivity are important themes to focus on. IEs have to organize events, participate in the event actively and promote industrial engineering as the department, function and discipline to promote productivity through innovation.

I am collecting background material to support industrial engineers in preparing for the events of the week.

Background Material - 2025 India National Productivity Week - February 12- 18, Theme - From Ideas to Impact: Protecting Intellectual Property for Competitive Startups.

https://nraoiekc.blogspot.com/2025/01/background-material-2025-india-national.html


 




Chapter contents

Organisations and innovation 118

The dilemma of innovation management 118

Innovation dilemma in low technology sectors 119

Dynamic capabilities 120

Managing uncertainty 120

Pearson’s uncertainty map 121

Applying the uncertainty map in practice 123

Managing innovation projects 124

Organisational characteristics that facilitate the innovation process 126

Growth orientation 129

Organisational heritage and innovation experience 130

Vigilance and external links 130

Commitment to technology and R&D intensity 130

Acceptance of risks 131

Cross-functional cooperation and coordination within organisational structure 131

Receptivity 131

Space for creativity 131

Strategy towards innovation 132

Diverse range of skills 132

Industrial firms are different: a classification 133

Organisational structures and innovation 135

Formalisation 136

Complexity 136

Centralisation 137

Organisational size 137

The role of the individual in the innovation process 137

IT systems and their impact on innovation 138

Management tools for innovation 141

Innovation management tools and techniques 141

Applying the tools and guidelines 144

Innovation audit 144

Case study: Gore-Tex® and W.L. Gore & Associates: an innovative company 

and a contemporary culture 145

Learning objectives

When you have completed this chapter you will be able to:

identify the factors organisations have to manage to achieve success in innovation;

explain the dilemma facing all organisations concerning the need for creativity and stability;

recognise the difficulties of managing uncertainty;

identify the activities performed by key individuals in the management of innovation; and

recognise the relationship between the activities performed and the organisational environment in promoting innovation.


We have already seen in the previous chapter that long-term economic growth is dependent on the ability of firms to make improvements to products and manufacturing processes.


The most obvious way forward is to separate production from research and development (R&D) but, whilst this usually is done, there are many improvements and innovations that arise out of the operations of the firm, as will be seen in the next chapter. Indeed, the operations of the firm provide enormous scope for innovation.


The literature on dynamic capabilities seems to offer the most likely solution for firms. It has found that every firm has a zero-level or baseline set of routines, i.e., those that serve the purpose of producing and marketing the given products and services currently in the portfolio (how we earn a living now). 


Some firms have dynamic capabilities (producing new products, serving new customers and markets), i.e., those routines that relate to the innovation of products and services, to the innovation of the production process, or to the search and attraction of new customers, etc. – dynamic capabilities implement the change of old routines with new ones. 


Organisational characteristics that facilitate the innovation process 126


Innovation  requires a variety of competencies at key stages in the innovation cycle. Each of these requires its own space and time but, along with specialised skills, comes the need for coordination and management.



Innovation Management Measurement Areas


Framework category                      Measurement area

Inputs                                            People, Physical and financial resources, Tools

Knowledge management              Idea generation, Knowledge repository, Information flows

Innovation strategy                       Strategic orientation, Strategic leadership

Organisation and culture              Culture, Structure

Portfolio management                  Risk/return balance, Optimisation tool use

Project management                    Project efficiency, Tools, Communications, Collaborations

Commercialisation                      Market research, Market testing, Marketing and sales

Source: Adams et al. (2006).





Innovation management tools and methodologies

Innovation management typologies                                         Methodologies and tools

Knowledge and technology management                Knowledge audits, Knowledge mapping,                                                                                                    Technology  road maps, Industry foresight panels                                                                                        Document management, IPR management

Market intelligence                                                Technology watch/technology search                                                                                                           Patents analysis, Business intelligence                                                                                                         Competitor analysis, Trend analysis. Focus groups                                                                                     Customer relationship management (CRM)

Cooperation and networking                                Groupware

                                                                               Team-building

                                                                               Supply chain management

                                                                               Industrial clustering

Human resources management                             Teleworking

                                                                              Corporate intranets

                                                                               Online recruitment

                                                                                                                   e-Learning

                                                                              Competence management

Interface management                                                      R&D – marketing interface management

Concurrent engineering

Creativity development                                                 Brainstorming

                                                                                       Lateral thinking

                                                                                      TRIZ*

                                                                                      Scamper method

Mind mapping

Process improvement                                                  Process Planning

                                          Process Documenting                                                                                          

                                          Benchmarking

               Workflow

Business process re-engineering

Just in time

Innovation project management                                  Project management

Gannt charts

Project appraisal

Stage-gate processes

Project portfolio management

Design and product development                                     CAD systems

Rapid prototyping

Usability approaches

Quality function deployment

Value analysis

NPD computer decision models

Business creation                                                            Business simulation

Business plan

Spin-off from research to market

.

Source: Hidalgo and Albors (2008) and Coombs et al. (1998


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Organisational characteristics that facilitate the innovation process


1 Growth orientation                     

2 Organisational heritage and innovation experience    

3 Vigilance and external links          

4 Commitment to technology and R&D intensity   

5 Acceptance of risks                   

6 Cross-functional cooperation and coordination within organisational structure   

7 Receptivity to External Innovations                          

8 Space for creativity                   

9 Strategy towards innovation          

10 Coordination of a diverse range of skills 


Organisational requirement                  Characterised by

1 Growth orientation                     A commitment to long-term growth rather than short-term profit

2 Organisational heritage and innovation experience    Widespread recognition of the value of innovation

3 Vigilance and external links          The ability of the organisation to be aware of its threats and opportunities

4 Commitment to technology and R&D intensity   The willingness to invest in the long-term development of technology

5 Acceptance of risks                   The willingness to include risky opportunities in a balanced portfolio

6 Cross-functional cooperation and coordination within organisational structure   Mutual respect amongst individuals and a willingness to work together across functions

7 Receptivity                           The ability to be aware of, to identify and to take effective advantage of, externally developed technology

8 Space for creativity                   An ability to manage the innovation dilemma and provide room for creativity

9 Strategy towards innovation           Strategic planning and selection of products, technologies and markets

10 Coordination of a diverse range of skills  Developing a marketable product requires combining a wide range of specialised knowledge


Interesting

a shift in focus and mindset from business optimisation to business creation.



Ud. 25.1.2025

Pub. 12.1.2025

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