All good new products will be replicated eventually in a competitive market. From another point of view, a steady flow of minor innovations on the customer service, factory floor and other operational areas is expected to remain unseen. Though unseen, they will be decreasing costs and/or increasing customer happiness and perfecting the bottom line.
What is Management of Innovation Process?
Innovation isn't analogous to invention. The word innovation has come to signify not only inventing something new but also producing additional value while making it. Inventions alternatively can result in completely worthless products.
Innovations are able to involve radical or tiny changes. An entirely new product that achieves success in the market is an instance of a major innovation. A new method of making a product can on occasion involve just a small change and still produce notable cost savings.
Mainly, we can look at innovation as some sort of things that people hadn`t idea of before. It can engage both processes and products. It is also able to involve a new method of organizing the corporative processes. Usually it is an incremental procedure, with small changes causing a very diverse scenario. It's here that organizational culture turns out to be critical, as a conducive environment can inspire staff members to come up with such tiny, incremental innovations. Management of innovation process involves developing such a corporative culture.
Management and Innovation
In case a business concentrates simply on optimizing processes and products along conventional lines, it might not be capable to gain any noticeable benefit in an extremely competitive market. Its innovations going beyond the usual that can create such a benefit. Said innovations can take place in a variety of areas, involving for instance the following:
Testing new markets for an existing production, say by discovering a new use for the production
Modifications in production processes that lessen material, energy or labor requirements and lowers production expenses
Applying new, lower cost, substances that deliver identical or better results in the end product
Decreasing the adverse environmental influence of production procedures and using this as a principal selling point
Discovering a better substitute for an available product
Creating a new product that can get together with a widely felt requirement in the market
Discovering lower cost methods of meeting regulatory requirements
Supplementing the production range by exploiting available facilities or know-how to present expenses advantages
It will be obvious from the listed advantages that innovation is a main function of management for the reason that it facilitates achievement of the very objectives that business administration seeks, for example better market share, raised cash flow, decreased costs and environment-friendly processes.
Summary: Innovation Process Management
Innovation engages creativity, that means. Thinking of new opportunities. Recognizing such new opportunities is easier for persons who are dealing daily with the process or product. It's in such a context that modernization and management come to be closely associated.
Make a corporative culture where staff members are encouraged to come about with ideas for making things better and can also get engaged in incorporating the suggestions and seeing the consequent enhancements. The outcome can be enormous over a period of time with the corporation quite likely to take advantage from increasingly lower operations expenses and probably better value products.
Formal modernization management normally takes the form of R&D that engages seeking for new ideas and advancing them into marketable services and products. Value engineering is one more formal method that can come about with inventive ways to provide identical or more serious value in a cost efficient manner.
The modernization process can be supported by such practices as management of knowledge that makes insights from cumulative experience accessible across the corporation.
Innovation has turn out to be a critical necessity for continued success and endurance of corporation in the extremely competitive environment of the present day. Management of innovation process involves encouraging employees to come about with new suggestions, as well as formal practices such as value engineering and R&D.