Introduction of Innovation Context

 What is Innovation

• Innovation is often described as introducing something new
• Improving systems and processes
• Adding value
• Turning creative ideas into practice
• Linking invention to exploitation through commercialisation
• Anything that provides a new perceived benefit to either  customer or employee
• Source of advancement and development
• Ideas that provide competitive advantage                    
• Strategic Innovation
• Process Innovation-Administrative/Managerial    -Operation-      -Technological
• Product Innovation-Technological -Marketing
• Social Innovation
• Philosophical Innovation
• Political Innovation
   
  The Importance of Innovation: Innovation is a driving force of welfare and contributes to increasing the standard of living.

      The Importance of Innovation

http://www.youtube.com/watch?v=TOlMQrATtWA 

According to the report of OECD of Prahalad,Paul and Ruth, they have done some research on the nature of innovation and analysed how innovation has changed in recent years. The New Nature of Innovation can guide policy makers, managers, and entrepreneurs to the realization the potential world.

To predict or even declare “a new nature of innovation” may be regarded as somewhat of an exaggeration. From a macro perspective, new technology has historically been the dominating driver of innovation and a very important reason for an increased standard of living.The process of creative destruction has been driven by new technology and entrepreneurs.This will still be the case in a new nature of innovation, so what is new?

In the past, technology and competition were the main drivers of company innovation. Companies had an “inside-out” way of thinking. Based on internal resources, they designed new products and services and used marketing to persuade consumers to purchase. Companies defined their role in society in accordance with the industrial paradigm. In this system,the political system set the legal framework and defined the rules, while companies could optimise their business as long as they complied with the rules.

Technology has always played an important role in driving innovation, and it will continue to do so in the future, but for many companies technology will gradually move from being a driver of innovation to becoming an enabler of innovation. Today there are new drivers of innovation which are gaining importance and becoming just as important as technology once was. In the future, companies will need to become more open; i.e. to learn from their customers, collaborate with others and assume greater social responsibility. If they fail to do so, they will not survive. While companies will still optimise their business, globalisation and the digital technology have changed the rules of the game.

A new global openness implies that citizens from all over the world are potential customers, and that high quality resources can be found all over the world. From a company’s perspective, this will change innovation. A deeper understanding of user needs will be an important driver of innovation, and new technology will enable companies to come up with entirely new solutions where companies and customers co-create value and create unique individual experiences. In a new nature of innovation, we will see a new balance between technology-driven, competitivedriven and user-driven innovation – with much more emphasis on the users. We will see new business thinking and new business models where companies assume a much higher level of social responsibility.

Ref:  New Nature of Innovation. OECD Report (2009)

http://www.newnatureofinnovation.org/full_report.pdf



Comment:
 

The world is awash with creativity and technological breakthroughs. As can be seen from the OECD report, people's life and global economy cannot develop well without innovation. The nature of innovation can lead people and businesses to a great convenience and contribution. The innovation strategies can identify some new ways when company is operating. Most importantly, innovation is widely used in technology, science, education and some other areas, in the meantime time, innovation can help individuals improve themselves and have a useful reflection after innovation experience.

Innovation Strategies and Creativity

    Developing Innovation Strategies:

• Innovation strategy is part of overall business strategy
• It determines when and where innovation is required to meet the aims of the organisation
• Innovation strategies depend on the particular organisation, its culture and business aims

Strategic Innovation takes the road less traveled – it challenges an organization to look beyond its established business boundaries and mental models and to participate in an open-minded,creative exploration of the realm of possibilities.Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation.

                                         ------- Palmer &  Kaplan (2007)

Traditional strategy versus Strategic Innovation

Differences between traditional approaches to strategy and Strategic Innovation are:

                                                                   ------- Palmer & Kaplan (2007)
          http://www.innovation-point.com/Strategic%20Innovation%20White%20Paper.pdf

Today, innovation performance is a crucial determinant of competitiveness and national progress. Moreover, innovation is important to help address global challenges, such as climate change and sustainable development.

More recently, the importance of innovation has been reinforced both by globalisation and by rapid advances in new technologies, notably ICTs, which have enabled new forms of competition and opened new markets for the creation and delivery of innovative products and services. Globalisation has also increased the pressure on OECD countries to move up the value chain and engage in a continuous process of adjustment and innovation.

Ref: http://www.oecd.org/dataoecd/2/31/39374789.pdf   (2007)

Innovation and Technology Strategies
Just as technology is critical to a business strategy, innovation is essential to business strategy for those businesses that are going to compete nationally, internationally, and globally from now on. With technology development and innovation and managerial innovation becoming more directly tied to productivity and profitability, it is time to formulate the right technology strategy and integrate this in the business strategy to achieve a sustainable competitive advantage.
                                                                                             (Soares, 1997. p27)

http://books.google.co.uk/books?id=hhXSP3WONz4C&printsec=frontcover&dq=innovation+and+Technology&hl=zh-CN&sa=X&ei=_h0TT83fNYWohAednMyUAg&ved=0CDMQ6AEwAA#


"Innovation is about convergent thinking.
 Creativity is about divergent thinking.”
  --Ikujiro Nonaka
         http://www.innovation-point.com/Strategic%20Innovation%20White%20Paper.pdf

There is no doubt that creativity is the most important human resource of all. Without creativity, there would be no progress, and we would be forever repeating the same patterns.
                                                                                              —Edward de Bono

As Serrat refers that the definitions of creativity and innovation are:
Creativity is the mental and social process—fuelled by conscious or unconscious insight—of generating ideas,concepts, and associations. Innovation is the successful6 exploitation of new ideas: it is a profitable outcome of the creative process, which involves generating and applying in a specific context products, services, procedures, and processes that are desirable and viable. Naturally, people who create and people who innovate can have different attributes and perspectives.

What Is The Difference Between Creativity and Innovation?

(Laird D. McLean, 2005)
Throughout the creativity literature, and particularly the literature focused on organizational creativity, the term“innovation” is often used and the distinction between creativity and innovation is an important one. Sternberg and Lubart (1999) define creativity as “the ability to produce work that is both novel and appropriate. Although the measurement of creativity deserves a lot of attention, words associated with this definition of creativity include idea, invention, and breakthrough. They go on to write that “innovation refers to the process of bringing any new problemsolving idea into use. It is the generation, acceptance, and implementation of new ideas, processes, products, or services”. This process can take place in many different domains; it can be technical, to be sure, but also organizational.  To bring an idea from concept to market, it must be recognized for its potential; it must receive funding in an environment of scarce or at least competing resources; and it must overcome potential obstacles such as technology challenges, competitive pressures, and a variety of other obstacles. The process by which this happens is referred to as innovation and it is an important process when talking about creativity in the context of organizations. It would not be a stretch to say that when it comes to organizations, creativity without innovation is of significantly diminished value.
http://mcleanglobal.com/public/MGC/publications/Org%20Culture%20and%20Innovation.pdf

Comment:

The importance of creativity and innovation in organizations, there has been relatively little empirical work done in the area of organizational culture and creativity and innovation. Creativity and innovation cannot operate separately as creativity is an essential part on innovation process. Particularly in the context of an organization, is on taking a creative idea and bringing it to fruition. Such as technology challenges, competitive pressures, and a variety of other obstacles. The process by which this happens is referred to as innovation and it is an important process when talking about creativity in the context of organizations. Innovation refers to identify important problems and solving while creativity is defined as generating new ideas. Amabile et al (2004) says that innovation as the successful implementation of creative ideas within an organization”. The converse is also true: without creative ideas to feed the innovation pipeline so they may be promoted and developed, innovation is an engine without any fuel.

                         

Innovation in Culture: HP Company Accelerates the Development with Innovation Culture

The most successful innovators ensure that their culture not only supports innovation, but actually accelerates its execution.
The innovation culture, of course, is likewise an expression of people, their past, and their current beliefs, ideas, and behaviors. They make innovation happen, and they do so consistently over time.

(By Langdon Morris,2007)

As the business world becomes increasingly complex and still more astonishingly competitive, companies are turning to innovation as one of the few durable sources of competitive advantage. Innovation is now among the top priorities for the majority of the world’s large companies. The necessity of innovation is now universally accepted, but beyond their enthusiasm for bright ideas, most leaders know that to be successful over the long term they have to develop a strong innovation culture. Such a culture can be recognized as an organization that is known externally in the marketplace as a genuine innovator, and equally that it is known internally among the people in the organization as a dynamic, innovationfriendly place to be.

 Favorable Innovation Culture and Difference

http://www.innovationtools.com/PDF/CreatingInnovationCulture.pdf


Booz & Company’s annual study shows that
spending more on R&D won’t drive results.
The most crucial factors are strategic alignment
and a culture that supports innovation.
                             (by Barry Jaruzelski, John Loehr and Richard Holman,2011)

Culture plays a critical role in this strategy, says Palensky. “For over 100 years, 3M has had a cultureof interdependence, collaboration, even codependence. Our businesses are all interdependent and collaboratively connected to each other, across geographies, across businesses, and across industries. The key is culture.”

See on the right: Only 44 percent of companies surveyed have both highly aligned culturesand highly aligned innovation strategies, and it pays off in performance:They outperform on growth in both profits and enterprise value.

Not surprisingly, companies saddled with both poor alignment and poor cultural support perform at a much lower level than well-aligned companies. In fact, companies with both highly aligned cultures and highly aligned innovation strategies have 30 percent higher enterprise value growth and 17 percent higher profit growth than companies with low degrees of alignment. (see on the right)

Similarly, companies agree strongly on the cultural attributes that are most prevalent at their companies.There was less unanimity on the importance of other attributes, with very few citing tolerance for failure in innovation as essential. Together, cultural elements help sustain the set of capabilities that enable companies to succeed.
There is a specific company telling us that innovation culture gives the appreciative insights for the company and accelerates the development.

Hewlett-Packard Company has made a conscious effort to integrate its innovation efforts more tightly with the business, and to ensure that both its strategic goals and the innovation culture that supports those goals are aligned with that overall strategy. And although the company’s overall strategy may change as a result of the recent arrival of Meg Whitman as chief executive officer, the tight link with the innovation culture is likely to continue. In many ways, Agilent’s innovation culture stems from its history as part of HP, but Solomon notes that the company has defined its own values. Now, she says “the cultural areas we’ve really tried to strengthen are speed to opportunity, customer focus, and accountability.Innovation itself has always been a strength; but to really address customer needs more swiftly and to focus on the things that matter most are where the culture of this company is today.”

(by Barry Jaruzelski, John Loehr and Richard Holman,2011)

http://www.booz.com/media/uploads/BoozCo-Global-Innovation-1000-2011-Culture-Key.pdf

Comment:

Nowadays, innovation culture generates as an important guideline and principle for businesses. Innovation occurs when new product entries to the market or existing technical problems need to be solving. At this time, the combination of innovation culture can assist them effectively because the context of innovation culture can provide critical thinking to support business development. Such as the HP Company referred, their innovation culture can support their goals and successfully entry the market. Together, cultural elements help sustain the set of capabilities that enable companies to succeed. There is a specific company telling us that innovation culture gives the appreciative insights for the company and accelerates the development.

                                      

Generalize The Importance of Creating a Culture of Innovation

Culture Is Key, it is full of challenge..

• Most successful business are important to developing their new ideas
• Brilliance in the market.
• Understand the what is innovation culture
• Build up the company's finances
• Be an innovation manager, Communication is everything, Open a business opportunity
• Company should really understand the service they need to offer, working with customers and stakeholders..
• Creating control process

Creating a Culture of Innovation

http://www.youtube.com/watch?v=KyqHGdIMcas





"Improving" and  "Enhancing"  ....

Holding your core competencies....

• Innovations are always a part of Strong Organizations
• Think much more than invention
• How you relate in the outside world
• Get somes systems and structures

How to create a culture of innovation

http://www.youtube.com/watch?v=Uo3WH_cSJ9I

Comment:

After watching the video of creating a culture of innovation, I have learnt that most of successful businesses have already applied the innovation culture in their development. Innovation culture can help companies create more ideas and assist managers in solving the problems for customers and understanding the key point of innovation and build up their finance and reputation in the market. Most important, innovation culture can help company to open more opportunities and reduce barriers and risk. So we need know how to create a culture of innovation. As the world is changing, innovation is improving and enhancing, the top down approach and bottom approach are used in different organizations and learning the innovation culture will always good for us on skills-improving. It will help us move forward finally.  

Explore Innovation Leadership in High-Technology Firms

To having an important insight about entrepreneurship and leadership will be favorable for enterprises or companies. In addition, Innovation is very much about ability of entrepreneur to look at markets, technologies and business models and interpret them "differently".

(Teece, 2009)

http://books.google.co.uk/books?hl=en&lr=&id=Db90ezzS1mYC&oi=fnd&pg=PR11&dq=innovation+&ots=jiMkAFxl4b&sig=lmPHejxz1DkFVbRVO0Et44QyXrk&redir_esc=y#v=onepage&q=innovation%20and%20leadership&f=false

What is Leadership

Leadership is the ability to influence, motivate and enable others to contribute toward the effectiveness of the organisation of which they are menbers.Managers tend to operate within existing ways of thinking,whereas leaders often challenge those way and look for new approaches.Seldom content,leaders never arrive,simply continue the journey. However, leadership qualities have developed and become more innovative because the complex business environment and the diverse culture. (Notes)

So, there is absolutely different between traditional leadership and innovation leadership. Traditional approaches to the study of leadership have not specifically addressed the requisite characteristics for executive leadership in such firms. In high-technology firms, CEOs play an important role in creating a corporate environment that fosters innovation and firms reliant on innovation require the effective utilization of people as well as the ability to create and disseminate innovation. (Edosomwan,2009)

http://www.bus.miami.edu/_assets/files/executive-education/leadership-institute/strategic-leadership.pdf

Strategic Leadership and Innovation

 in High Technology Firms    
  (Edosomwan,2009)

The link between leadership and strategy is clear. CEOs can sometimes hinder and sometimes promote the development of dynamic capabilities in organizations. CEOs’ contributions in hightechnology firms is a matter of how well they can create something brand new, but most importantly, how well they can protect, build on, and improve what was in place before, perhaps prior to their arrival. However, traditional approaches to the study of leadership have not specifically addressed the requisite characteristics for executive leadership in such firms.

In high-technology firms, CEOs play an important role in creating a corporate environment that fosters or inhibits innovation and firms reliant on innovation require the effective utilization of people as well as the ability to create and disseminate innovation. The CEO can either encourage basic research by creating well paid research fellow positions (IBM and DuPont adopted this) and by encouraging collaborations with universities or she can implement strategies that weaken the productivity of scientists (for example by linking salary increases to the assumption of managerial responsibilities). Simply put, effective innovation requires that resources are routed to basic research and CEOs have great power to influence innovation decisions since they are the central strategic decision maker. An effective leader in a high technology environment must simultaneously influence the invention, development, and commercialization of new products and services. High technology firms, therefore, have unique requirements for effective leadership.

University of Miami professors, Marianna Makri and Terri A. Scandura, studied the effects of CEO leadership on innovation, and identified new concepts in strategic leadership specifically related to high technology leadership, operational and creative leadership. Their results are detailed in an article entitled, "Exploring the Effects of Creative Leadership on Innovation in High-Technology Firms.”

http://www.bus.miami.edu/_assets/files/executive-education/leadership-institute/strategic-leadership.pdf

Comment:

Innovation can provide positive inside for the company. In particular, in high technology firms, innovation is required to be applied in different apartments. In addition, innovation can help leader form positive leadership and assist in making decision. Innovation can improve peoples’ skills on working in technology firms. As global economy is developing, technology need to be improve simultaneously, if technology still be stable, the firms will not have operation and will be fail in the market. Compared to the traditional leadership, the innovative leadership now has been used widely because the global business is becoming complex while the tradition leadership cannot motivate employees. Eventually, innovation is very much favorable for business running in the global market.  

Operational leadership focuses on the development of new products and commercializing these innovations. An effective operational leader must be able to sell those inventions andcommunicate effectively with the external market. According to the study, “a CEO exhibiting characteristics of operational leadership would put an emphasis on playing a boundary spanning role by communicating with the external environment, identifying opportunities externally, and creating new knowledge contexts by extending existing product/market domains via mergers and acquisitions, alliances, or joint ventures.” A high technology firm may produce a large number of inventions, but these may be of little value unless the CEO is able to push them through the pipeline, commercialize them and derive a profit from them. As projects move from the invention phase to development and commercialization, an effective operational leader would be skilled in securing resources, and communicating with external constituencies (e.g. FDA). In other words, a successful operational leader must continually monitor and evaluate opportunities in the external environment in order to broaden the firm’s knowledge-creation opportunities by external knowledge acquisition.

CEOs constantly assess the gap between their existing capabilities and the targeted capabilities to decide whether to seek new capabilities from outside the firm or to develop them internally. This selection capability is crucial for long-term performance and strategic renewal. As such, ambidexterity in leadership is important. While CEOs who exhibit operational leadership characteristics would try to seek new capabilities from outside the firm, CEOs with creative leadership characteristics would look internally for such capabilities. Obviously this search process would be optimal when the leader is able to select the appropriate mode of strategic renewal.

To this point, Makri’s and Scandura’s study argues, “that CEOs of high technology firms who are able to simultaneously focus on the external and internal environment, and on developing new knowledge as well as commercializing it, would be more effective leaders.” An ambidextrous firm able to simultaneously explore and exploit, able to simultaneously invent and innovate, will outperform firms that emphasize one at the expense of the other. Simply put,CEOs who are able to simultaneously focus on the external and internal environment, will be more effective leaders. While these two leadership styles are important for leaders in all firms,for firms in the high-technology environment which relies on streams of innovation for longterm success, they are critical. The study suggested that in high technology firms, creative and operational leadership will be positively related to the quantity and quality of innovations.

The study’s findings are important for firms as they consider both dimensions of creative and operational leadership in the emergence of leadership of high technology firms and evaluate their performance. These dimensions may be relevant to the question of CEO compensation in high technology firms. According to Makri and Scandura’s findings, “operational and creative leadership characteristics are effective predictors of innovation productivity and quality. As such, it is important that boards of directors consider these behavioral characteristics when setting CEO pay in addition to considering financial outcomes.” More specifically, high-technology firms can be more effective if they base CEO incentives on a combination of short-term financial results (ROE) and indicators of long-term innovation quality (investment in basic research). Such a compensation system encourages a CEO to commercialize innovations but also reinforces behaviors that enhance the firm’s ability to innovate in the long run.

IBM Reveals Five Innovations In The Future and Technology Innovation

IBM Reveals Five Innovations That Will Change Our Lives in the Next Five Years

(PhysOrg.com) -- Unveiled today, the third annual "IBM Next Five in Five" is a list of innovations that have the potential to change the way people work, live and play over the next five years.

http://www.physorg.com/news146852022.html

• The New Economy
• Modern Technology has come a long way , focus on 5-tech-innovations ..
• Make life better

                                                  ibm-5-tech-innovations
                                        

http://www.youtube.com/watch?v=8SiNXhAHnBI

Technology Innovation (Article)
http://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v1/11v1_ch8.pdf

Since Independence, India has endeavoured to bring economic and social change through science and technology. The effort has been both on upgrading the traditional skills to make them relevant and competitive and developing advanced capabilities in frontier areas of science and technology. The visionaries who led the growth of science and technology (S&T) in India were convinced that S&T could play an important role in transforming India in to a modern, industrialized society. Experience and results show that this confidence was well placed. Science, technology, and innovation are even more relevant today. Scientific knowledge and expertise, innovation, high technology, industrial infrastructure and skilled workforce are the currencies of this new era.

Comment:

According to the IBN innovation, it is been reported that innovations can lead to a great change in our lives in five years. Firstly, the solar energy will be created into asphalt, paint and windows. It will be available for everybody. Secondly, crystal ball will be helpful for our health so that will care our body more easily. Thirdly, there will be communication between people and Web. It will be more interesting and continent for people. Fourth, people will have own digital shopping assistants. Finally, forgetting will become a distant memory. There is no doubt that innovations have a great contribution for people and make lives more enjoyable. As the delivery of rural technologies is an important issue for the development and growth in the country. The innovation is first step for technology to be improved. Competitiveness innovation has emerged as a successful global concept; many companies earn a great profit and reputation after adopting the innovation process.

Innovation In Company----BACARDI plc.

                                              

Campaign Goals

• To develop brand awareness                

• Reach a wider audience

• Let the consumer know aboutthe wide range of the Bacardi products

History--The Market

Bacardi operates in the alcoholic drinks and spirts market, a steady market which has shown formidable growth.In the Vodka sector and slow decline in the scotch and gin sector. Has a diversified product range,including:rum,vodka,flavoured,selling products in different sizes such as litre bottles to 1/4 litre bottles.Competes with other big companies like Smirnoff, Jack Daniels and Absolut Vodka.

Bacardi Infuses Spirits Market with New Flavor Innovation: Bacardi Rock Coconut Flavored Rum

                                     

Bacardi has announced its latest flavor innovation, Bacardi Rock Coconut. Bacardi is proud to introduce the first coconut rum infused with rock melon and coconut water. The distinct combination of sweet and highly refreshing coconut water paired with the crisp and exotic taste of rock melon create a dynamic spirit, with a rich aroma, and authentic taste. Bacardi Rock Coconut follows the successful launches of Bacardi Dragon Berry and Bacardi Torched Cherry.

http://www.tastingpanelmag.com/News/Rum/2010/Bacardi-Infuses-Spirits-Market-with-New-Flavor-I.aspx

Bacardi Rock Coconut will be available beginning in November 2010.

The launch will be supported nationally with advertising

Bacardi Rock Coconut Rum

http://www.youtube.com/watch?v=Zcwq91Cmy_U

Bacardi: Inventions TV Commercial

http://www.youtube.com/watch?v=3iJLaZA4Sos

Comment:

To facing such competitive society, Bacardi has constantly created new products to attract customers. This time, Bacardi plc produced new flavor innovation. This innovation was sold to the market successfully and has made a good advertising for this product. This innovation was concentrate to the young person as this is an important portion for the market target.

Apple Innovation

                                   

One cannot talk about  innovation without mentioning Apple Inc.

Apple’s culture is embedded in its roots. For several years Apple's product strategy involved creating innovative products and services aligned with a "digital hub" strategy, whereby Apple Macintosh computer products function as the digital hub for digital devices, including the Apple iPod, personal digital assistants, cellular phones, digital video and still cameras, and other electronic devices. More recently, the full impact of a very well throught out brand strategy has come into focus - and one in which customer experience is central . Apple's core competence is delivering exceptional experience through superb user interfaces. The company's product strategy is based around this, with iTunes, the iPhone with it's touch screen "gestures" that are re-used on the iPad, and the Apple Apps store all playing key roles.

More details in below:

http://www.marketingminds.com.au/branding/apple_branding_strategy.html

Apple leverages a combination of Top-Down and Bottom-Up innovation strategy to create new innovations:
• Management & organisation driven, highly structured and process oriented.
•Customer driven, spontaneous and with deep understanding of customer need.

Apple’s innovation culture is closely
coupled with that of its leadership

"Creativity is just connecting things.”
"Innovation comes from saying no to 1,000 things to
make sure we don’t get on the wrong track or try to do too
much.”

http://events.kustar.ac.ae/EBTIC/Techical%20Notes/slides/Session%202%20Apple.pdf

Know more about the reasons for the success of Apple plc.

Steve Jobs' Innovation Secrets

                                
                     http://www.youtube.com/watch?v=EbtVvkSnS7A&feature=related

Comment:

There is no doubt that apple plc came up on top of the most innovative companies. Not surprisingly, Apple Company has strong performance for innovating the apple product such as Iphone, Ipod, Ipad. These products are selling to all over the world. The successful of Apple Company can be refer to they have good insight and effect innovation. Also, the directors of Apple Company have innovative leadership to manage the company. Many people think innovation as just applying in technology. But it is more than that, Innovation can help leader manage a team to achieve an innovative goal. As a result, innovation strategy can make company have good performance and bring a great profit for return.   

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