- Determine the intended role of innovation in your organization and clearly communicate this to employees.
- Consider how innovation can be enhanced from contributions throughout the organization.
- Use analysis of Dimension & Degrees to identify whether your products or service products can be made more competitive.
- Use the Pentathlon Framework to pinpoint the areas of innovation management that your organization needs to improve.
Many reports and articles continue to be published on innovation management. However, improving performance of a company is still a real challenge for managers. Therefore, the aim of this book is to present ways to improve innovation performance through the development and successful implementation of an innovation strategy. This chapter showed the following:
- The need for innovation is increasing and is being driven by technology, customers, new forms of competition and the business environment.
- There are five main dimensions of innovation – product, service, process, business process and business model innovation. Companies need to identify which dimensions are important for them.
- Innovation has different degrees. It consists of not only breakthroughs (radical innovations) but also incremental improvements, which are equally important to companies in both the manufacturing and service sectors.
- Extensive research has shown that innovation management is complex and multifaceted. Its scope is wide, ranging from business strategy, managing technology and new product development to organization and people management.
- The Innovation Pentathlon Framework is a diagnostic framework for managing innovation.
1. Anonymous, ‘Something New Under the Sun: A Special Report on Innovation’, The Economist, 13 October 2007. [Excellent overview of key issues in managing innovation and technology. Written in the characteristic style of the Economist – clear and to the point.]
2. Chan Kim, W. and Mauborgne, R., ‘Value Innovation: The Strategic Logic of High Growth’, Harvard Business Review, Vol. 75, No. 1 (January–February 1997), pp. 103–112. [Presents how product innovation needs to be complemented by service and other forms of innovation.]
- To discuss and understand the role of innovation and its multi-dimensional nature.
- To demonstrate the need for a systematic approach to managing innovation: e.g. the Pentathlon framework.
- To explain that the Pentathlon is a simplification of the complex set of processes that constitute innovation management in a typical organization.
- There is a useful interview with the (now deceased) chairman of the Sony Corporation, Akio Morita, in which he explains his views on innovation. This is: The UK Innovation Lecture, (UK: Department of Trade and Industry, 6th February 1992), Video Number INDY J1800NJ, 5/92.
- An Audience with Innovation: Innovation in Management. Richard Branson. The 1998 Branson UK Innovation Lecture Special, Department of Trade and Industry (DTI) London, England, 1998.
- The website http.//www.future-store.org gives animations, videos and other interesting information that can be used with Box Case 1.1.