Managing Innovation Types

A successful organization should not limit itself to either incremental or radical innovation...

Understanding the difference between different types of innovation is important in learning how to mange it. Incremental innovation requires you to mobilize large numbers of people to make small improvement. The process is relatively low risk and high frequency, and forms part of the mainstream activity in most organizations. Radical innovation is much riskier and often takes specialized knowledge. It tends to be managed by dedicated teams, often outside the mainstream of the organization's work flow.

The development of most products tends to consist of long periods of incremental change punctuated with occasional radical breakthroughs. For example, the 20th century innovation of the standard filament light bulb to create smaller more reliable, and more efficient versions of the original design. Now, however, light-emitting diodes (LEDs) promise a radical replacement in the form of a long-lasting and energy-efficient alternative. A successful organization should not limit itself to either incremental or radical innovation, but be prepared to engage in both, and mange them under the same roof.

ACTION POINT: Use incremental and radical innovation to build a successful organization.

Innovating Radically

Radical changes in products, services, and processes don't happen every day...

Doing what we do better will get us a long way -- but from time to time something comes along that changes the whole nature of a business or market, offering a great leap forward. This is known as radical innovation. Radical changes in products, services, and processes don't happen every day, and it takes a long time for them to be perfected, but they do have a big impact.

Significant examples include electric power, cars and railroads, the Internet, and self service shopping.

ACTION POINT: Encourage high involvement, everyone is creative -- make sure you are tapping into this rich resource by asking employees for their suggestions to improve what your organization is trying to achieve.

Incremental Innovation

This is not a one-time act, but the result of incremental improvement.

Most things you might buy in the supermarket are not "new to the world" products, but improvements and extensions of existing products.

In service industries such as hotels and catering, innovation is about "doing what we do better" -- improving the level and quality of service around a basic formula. In manufacturing, most innovation is about improving the way processes work -- fix bugs in the system, improving efficiency, quality, safety, and, importantly, reducing cost. This is not a one-time act, but the result of incremental improvement.

ACTION POINT: Look for ways of improving services, processes and fixing bugs.

Innovating in Stages

...many of these innovations come about not through dramatic changes but by doing the same things a little bit better.

The results of innovation can be dramatic -- from the first-ever automobile to landing a man on the moon. But many of these innovations come about not through dramatic changes but by doing the same things a little bit better.

Incremental innovation -- innovating in small steps -- is about improving products and services and the processes we use to make them, making things better in quality and cheaper.

ACTION POINT: Incremental innovation may not be glamorous and instantly noticeable, but it is by far the most common kind of innovation.

6.5.1 Faith, Understanding and Knowledge

To apply faith is to put it to work.

Faith is the confident assurance that something we want is going to happen. It is the certainty that what we hope for is waiting for us, even through we can not see it ahead. (Hebrews 11:1)

To apply faith is to put it to work. We all must have faith in our God, ourselves, our country, our leaders, our company. Some things are beyond our comprehension. This is no reason for unfaithfulness.

We believe (have faith) in things because of three principles. We believe in an authority figure, such as our parents. Secondly, because of logical reasoning, such as mathematics. And the third way we believe is from personal experience. Strong faith can be the most powerful force on earth.

Knowledge is a very important requirement of profitability and productivity. Knowledge must be continuously expanded and should never be static. Then it must be shared. Successful people are educators. They are valued as resources for ideas and know how.

Understanding is the interpretation and application of wisdom. Our ability as a group to understand and apply the principles of wisdom will establish our continued existence.

ACTION POINT: Use faith, knowledge and understanding to establish your future.

Setting a Pace for Innovation

One way is to look at how much "newness" is involved - from incremental small steps to radical leaps forward.

In order to manage the process of making innovations happen, it is important to understand the different ways in which change can be categorized. In this field it is not a case of "one size fits all" -- you need to tailor your approach. One way is to look at how much "newness" is involved - from incremental small steps to radical leaps forward.

The French company Bic introduced the Crystal ballpoint pen in 1951, and it is still going strong today. It's gone through all kinds of incremental improvement -- in the ink formulation, in the ball point, in the plastic used, in the ways in which it is manufactured -- but it is still the same old design. And it still does very well -- sales are around 14 million pens per day. In 2002, Bic sold its 100 billionth pen -- enough to cover 40 times the distance from Earth to the Moon, lined up end to end.

ACTION POINT: Look for incremental ways to begin the innovation process.

Innovating to Survive

There are many ways in which innovation can improve an organization's revenue and customer base

Innovation is essential to survival, and also to development and profit. There are many ways in which innovation can improve an organization's revenue and customer base, and defend against competitors. These range from making existing processes more efficient, to producing something before competitors can imitate it, to completely rewriting the rules of competition in your market. Here are some of the building blocks of innovation:

• Novelty in process - A faster, cheaper, or more efficient production process gives you an instant advantage.
• Right timing - Getting into a market early establishes your brand before the competition has time to develop.
• Adding complexity - Offering something too complex for others to imitate places your product at a premium.
• Product service or novelty - Offering a product no one else has access to guarantees your will have no competition.
• Rewriting the rules - Offering people something absolutely novel can create an entirely new market.
• Protecting intellectual property - New trademarks and patents generate revenue through fees for their use.
• New competitive factors - changing the base of your competition (eg, from price to quality) can undermine your rivals.

ACTION POINT: Look for ways to improve your organizations revenue and customer base through innovation.

Understanding the Benefits

Those species that do not adapt and change to cope with an alter environment simply die out.

In Charles Darwin's famous theory of evolution, survival depends on an ability to change. Those species that do not adapt and change to cope with an alter environment simply die out. The same can be said to be true of business organizations as well.

If you do not change what you create and offer the world (your products and services), you run the risk of being pushed aside by organizations that do. And if you want your businesses to grow, you are unlikely to achieve this if you do not offer new products and services in new ways. This survival idea may be obvious in a competitive business world--but it is just as important in nonprofit organizations and public services.

ACTION POINT: Innovation is a matter of survival.

Understanding the Issues

why should we innovate?

Thinking about managing innovation raises three key issues. First, why should we innovate? Innovation always involves risks, and the rewards are not always obvious.

Second, what can we change? You need to understand the options for innovation before you can make decisions on where to focus your efforts. And finally, how can we make it happen?

• Ideas for improving an aspect of your operation are the starting point for innovation.
• Your organization benefits when you implement your idea by making it a practical reality.
• Innovation is the result when ideas and implementation are achieved.

ACTION POINT: Understand the issues involved with innovation.

6.4.4 Peter Principle

Have you closely examined the required skills.

The Peter Principle does exist. We are limited based on inherent God given talents, acquired skills, energy level, internal desire, and what the mind can comprehend and apply.

To go beyond this limit does no one good, not the individual or the company. To find this limit let your conscience guide you. Do you really desire the challenge or is it something else that is driving you. Have you closely examined the required skills. Move slowly and cautiously. You must be honest with yourself. Are you happy.

ACTION POINT: Understand your limits.

Making Innovation Practical

innovation = ideas + implementation

There's still plenty of room for ideas to improve the world we live in--and we are still really good at coming up with them. But innovation isn't just about bright ideas; it's also about putting those ideas into practice.

No matter how good the idea, it will not benefit your organization if it cannot be transformed into a practical change in the work process that increases efficiency or profit. A working definition of innovation would be:

innovation = ideas + implementation.

Keep an open mind. Something that appears totally impractical at first may lead to useful thinking about other, more workable solutions.

ACTION POINT: Consider all ideas, not matter how strange, in their initial stages.

Defining Innovation

the history of civilization is about innovation.

The word "innovation" comes from the Latin words in and novare, meaning "to make something new, to change." In principle, that's something anyone can do--imagination and creativity come as standard equipment for human beings.

And it's something we've been doing since the earliest days when our ancestors lived in caves--the reason that we don't still live there is because of innovation. Working out better ways of hunting, mastering fire and tool-making, learning about agriculture, construction, transportation--quite simply, the history of civilization is about innovation.

ACTION POINT: Use your imagination and creativity to "make something new."

Understanding Innovation

the concept of innovation remains poorly defined.

Innovation is vital to the success of any business. But before you can apply it to your own organization, you need to understand what it is, why it is important, and how it applies to different business areas.

The word "innovation" today, appears everywhere--on company websites, in advertisements for everything from hairspray to health care, on the lips of politicians, and in news features. However, while the word itself is popular, the concept of innovation remains poorly defined.

Human history shows that any area of life can benefit from innovation.

ACTION POINT: Think about ways of improving even the most well-established systems in your organizations.

Innovation

Innovation is about human creativity, organized and applied across the organization.

In today's dynamic and turbulent world, organizations face a stark challenge--change or perish. Unless they keep renewing their products and services, and update the ways they create and deliver them, they risk being overtaken by competitors. Innovation--the process of change--is critical to the success of all organizations, large or small, in both the private and public sectors.

Most managers understand the importance of the topic. But making it happen requires a systematic hands-on approach. We have to learn to manage innovation, and Innovation provides a framework for doing this. Key elements in successful leadership of innovation include developing a clear strategic vision and communicating it, searching for innovation triggers, choosing a balanced portfolio of projects and delivering these projects on time and within budget.

Innovation is about human creativity, organized and applied across the organization. As a manager, you need to understand how the innovation process works and how you can mobilize this creativity.

ACTION POINT: Understand how the innovation process works.

6.4.3 Continuous Training

Acquiring new skills to meet the demands of technological change is very necessary in today's business environment.

Constant intake of new material and refresher course of old material is required to meet an exceed our goals. Acquiring new skills to meet the demands of technological change is very necessary in today's business environment.

Without a willingness and desire in this area we will fall short of the high expectations. four ourselves and our company.

ACTION POINT: Make learning a lifelong habit.

The Sales Profession

The true craftsman will master those fundamentals and accent them with their own unique style.

Selling is a craft. Craftsmanship in selling is a satisfying and rewarding profession. Like every craft there are fundamental skills that are required. The true craftsman will master those fundamentals and accent them with their own unique style. The fundamentals of the the professional salesman consist of:

• Building meaningful relationships
• Understanding the needs of your customers
• Making recommendations using features and benefits
• Resolving objections and closing the sale
• Following through and obtaining the next sale

ACTION POINT: Study and master the craft of selling.

Following Through

Here are some ways you can surprise your customers with your level of commitment:

When you follow through, you do more than you need to. Here are some ways you can surprise your customers with your level of commitment:

• Regularly check how things are progressing internally, and communicate effectively to everybody involved on a day-to-day basis.
• Send your customers a list of follow-up activities and deliverables', including dates; make sure you meet them consistently.
• Let your customer know well in advance if for some reason you can't meet a deliverable.
• Send emails updated your customers requesting a response. This instills confidence that you have their interests in mind all the time.

ACTION POINT: Surprise your customers by following through.

Following Up

Every single sales call you make--from a brief catch-up meeting to a formal presentation--deserves a follow-up letter.

Follow-up is doing whatever you committed to do at the end of the sales meeting with your customer. It is a process that you initiate to ensure that objectives are accomplished and commitments are fulfilled.

It is your responsibility to make sure that all of your organization's resources are doing what is needed to move the relationship to the next level. Will the samples be there on time? Is everyone aware of and able to meet the agreed upon delivery dates? Is the team committed to participate in the next meeting?

Every single sales call you make--from a brief catch-up meeting to a formal presentation--deserves a follow-up letter. This can be a letter, an email, or even a handwritten note--whatever suits both your style and the occasion--but must follow every call. The letter should thank the customer for their time, review what was discussed, and define the next steps. It can also serve as a reminder of who committed to do what by when.

ACTION POINT: Follow up on every single sales call you make.

Moving Beyond the Close

if you haven't been in touch with a client, it's a safe bet that your competitor has.

After you have closed, you earn yet another great opportunity to differentiate yourself from the competition. Following through goes beyond just following up on your promises--doing what you said you would do professionally and on time. Following through means exceeding what's expected of you and so sending the clear message to your customers that you are consistently thinking about them.

Time speeds by. It's not hard for 90 days to pass before you realize that you haven't made any contact with a customer. "Out of sight...out of mind" may be a cliche, but it's true: and if you haven't been in touch with a client, it's a safe bet that your competitor has.

ACTION POINT: To prevent long silences, track how often you make contact with your customers. Use whatever suits your style to record every face-to-face meeting, as well as pone calls, letters, and emails.

6.4.2 Art of Communication

Many times what we communicate is not really what we mean.

Accurate communication is close to impossible verbally. A person remembers very little of what he hears. There is little wonder why distortion and confusion abound with verbal communication. Written documentation is a must for communication to have any chance of accurate transfer.

We must also be aware that the sender has their own problems. Many times what we communicate is not really what we mean. Many times it is not effective, it does not get the job done. As we try to communicate both parties have inherent responsibilities. If at all possible, communicate in writing.

ACTION POINT: Communicate clearly both verbally and with the written word.