Innovation management can simply be defined as the management of all innovation process activities. In other words, it includes front-end and invention of thoughts, basic and applied research. Furthermore, innovation management is drawn in, in the market introduction not to mention, it includes every innovation support function, for instance, management of the human resource, finance and accounting all related to innovation activities. Innovation management process is abundantly characterized by a high degree of convolution simply because of reservations of the involved actors as well as vital issues. Subsequently, this explains why innovation management process creates high demands on social, practical and methodical capabilities of the management. Therefore, this paper aims at exploring the processes recommended for innovative firms and show what firms should do to encourage innovation. Again, it will explain what firms should do to avoid stifling innovation and show how they can maintain innovation as a core goal.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Processes Recommended For Innovative Firms
- What Firms Should Do To Encourage Innovation
- What Firms Should Do To Avoid Stifling Innovation
- How Firms can Maintain Innovation as a Core Goal
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper explores processes recommended for innovative firms, examining how firms can encourage innovation, avoid stifling it, and maintain it as a core goal. It analyzes different approaches to managing the innovation process, contrasting organic structures with formalized control mechanisms. The paper also investigates strategic decision-making, risk management, and the importance of leadership commitment in fostering sustainable innovation.
- Management and control of the innovation process
- Strategies for encouraging innovation within firms
- Methods for avoiding the stifling of innovation
- Maintaining innovation as a core organizational goal
- Strategic decision-making in innovation management
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory section defines innovation management as encompassing all activities related to the innovation process, from initial ideation and research to market introduction and support functions. It highlights the complexity of innovation management due to inherent challenges and the high demands placed on managerial capabilities. The introduction sets the stage for the paper's exploration of strategies and processes to foster and sustain innovation within firms.
Processes Recommended For Innovative Firms: This chapter presents two contrasting approaches to managing the innovation process. The first emphasizes organic structures with loosely defined roles and responsibilities, allowing for greater research freedom and minimal governance. The second advocates for strong governance and performance control, dividing the process into stages with formalized decision-making at each phase. The stage-gate product development system is presented as a prominent example of this latter approach, emphasizing the need for a balance between autonomy and structured control in managing innovation.
What Firms Should Do To Encourage Innovation: This section focuses on the importance of strategic perspectives in achieving organizational goals. It emphasizes strategic management's role in analyzing internal strengths and weaknesses, external opportunities and threats, and consciously choosing a path to leverage strengths and address weaknesses. The chapter also highlights the significance of strategic decision-making, differentiating between internally and externally focused approaches, such as technology acquisition versus internal technology creation, and their respective implications for fostering innovation.
What Firms Should Do To Avoid Stifling Innovation: This chapter discusses the importance of avoiding actions that might stifle innovation. It uses the example of financial innovations and how the development of new financial products, such as derivatives and securitization, has improved risk diversification, pricing accuracy, and market liquidity. These innovations allow firms to manage their exposures to various risks, such as currency fluctuations. The key is to find methods that balance risk management and innovation.
How Firms can Maintain Innovation as a Core Goal: This section explores methods for maintaining innovation as a central organizational goal. It emphasizes the importance of leadership commitment and external engagement, highlighting how leaders can connect with external stakeholders (e.g., NGOs, investors) to build a sustainable innovation identity within the firm. This process necessitates strong leadership and employee engagement to drive the necessary behavioral changes required for sustainable innovation strategies.
Schlüsselwörter (Keywords)
Innovation management, innovation process, strategic management, organic structures, formalized control, stage-gate system, risk management, leadership commitment, external engagement, sustainable innovation, strategic decision-making.
Frequently Asked Questions: A Comprehensive Language Preview on Innovation Management
What is the main topic of this document?
This document is a comprehensive preview of a paper exploring innovation management within firms. It examines processes for fostering innovation, strategies to avoid stifling it, and methods for maintaining it as a core organizational goal.
What are the key themes explored in the paper?
Key themes include the management and control of the innovation process, strategies for encouraging innovation, methods for avoiding the stifling of innovation, maintaining innovation as a core organizational goal, and strategic decision-making in innovation management. The paper also contrasts organic structures with formalized control mechanisms in managing innovation.
What different approaches to managing the innovation process are discussed?
The paper presents two contrasting approaches: one emphasizing organic structures with loosely defined roles and greater research freedom, and the other advocating for strong governance and performance control through staged decision-making, exemplified by the stage-gate product development system. The importance of finding a balance between autonomy and structured control is highlighted.
How does the paper address encouraging innovation within firms?
The paper stresses the importance of strategic perspectives in achieving organizational goals. It emphasizes strategic management's role in analyzing internal and external factors and consciously choosing a path to leverage strengths and address weaknesses. Strategic decision-making, including choices between internal technology creation and technology acquisition, is also discussed.
What are some methods discussed for avoiding the stifling of innovation?
The paper cautions against actions that might hinder innovation. It uses the example of financial innovations (derivatives, securitization) to illustrate how new products can improve risk management, pricing, and market liquidity. The key is balancing risk management with the need for innovation.
How does the paper address maintaining innovation as a core organizational goal?
Maintaining innovation as a core goal requires leadership commitment and external engagement. The paper highlights the importance of leaders connecting with external stakeholders (NGOs, investors) to build a sustainable innovation identity. Strong leadership and employee engagement are crucial to driving the necessary behavioral changes for sustainable innovation strategies.
What are the key chapters covered in the paper?
The paper includes an introduction defining innovation management, a chapter on recommended processes for innovative firms, chapters on encouraging and avoiding stifling innovation, and a concluding chapter on maintaining innovation as a core goal.
What are some key terms or keywords associated with this paper?
Key terms include innovation management, innovation process, strategic management, organic structures, formalized control, stage-gate system, risk management, leadership commitment, external engagement, sustainable innovation, and strategic decision-making.
- Quote paper
- Business Administrator Mutinda Jackson (Author), 2018, Management and Control of the Management Process, Munich, GRIN Verlag, https://www.grin.com/document/429532
