...GADE 3 Innovation Management Lecturer: Lopez, Urko The Why, What, and How of Management Innovation * Gary Hamel - Rodriguez Ugarte, Aitor 15th of February, 2015 INDEX INTRODUCTION 2 1. CONCEPT OF MANAGEMENT INNOVATION 3 2. WHY IS MANAGEMENT INNOVATION SO IMPORTANT NOWADAYS? 3 3. “DECONSTRUCT YOUR MANAGEMENT ORTHODOXIES” 4 4. SUMMARY OF THE ARTICLE 5 BIBLIOGRAFÍA 7 INTRODUCTION In this work I am going to analyze the management innovation. To do so, I am going to use Gary Hamel’s article “The Why, What, and How of Management Innovation” as guide to discuss this topic. To conclude with it, I am going to make a short summary about the article mentioning the main points of it. Source: Own elaboration Source: www.sintetia.com 1. CONCEPT OF MANAGEMENT INNOVATION Management innovation involves two concepts within it: Management and Innovation. On the one hand, management is one of the most important elements in an organization. It consists on coordinating activities and making plans for the future with the purpose to adapt to its environment and changes in it. On the other hand, as we analyzed the concept of Innovation in class the other day, I concluded that Innovation is the act of changing or creating a product or way of working in order to adapt to new environments or situations. So, what does Management Innovation mean? According to Gary Hamel “a...
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...Question Innovation is an important component of economic policy. Discuss Answer 1.0 Introduction “Today, more than ever, INNOVATION is central of survival” (Peter Drucker). Innovation has been an important component for economic growth, national economic competitiveness and economic policy for many country. It can occur in any sector of the economy, including government services such as health or education. Supporting nowadays with the rapid growth of technology industries, many policymakers in many nations have increasingly come to see technological innovations as a key driver of economic growth. This is why so many nations have made the promotion of innovation and new technologies a central part of their economic policy. Before discussing further about innovation and see why innovation play an important role for economic policies, it is important first to define innovations and its policies. Some people don’t really know what’s exactly an innovation. They are confused between invention, progress, innovation and updates. So it’s relevant to point out wrong ideas that peoples usually have over it and its creation to be able to erase it. Many people think of innovations as only technological in nature, resulting in shiny new products like Samsung’s Smartphones, Apple’s iPad, Sony’s PlayStation or in enhance machines or devices, such as lasers, autonomous robotics machines etc. Others might be thinking that innovation pertains only to research and development (R&D) activity...
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...What is the Base of the Pyramid? Why is it important? The base of the pyramid is the majority of humanity which is approximately five billion people. The base of the pyramid is important because it hold the vast majority of people in the world, which shows that more than half of the consumers are part of the base. Thus, illustrating that if MNEs ignore the needs and wants of the vast majority of the population, their products/services will have a hard time succeeding in emerging economies. What are the similarities and differences between GE’s traditional innovation and reverse innovation? GE’s reserve innovation is the exact opposite of its traditional innovation. Reserve innovation as used by GE is creating products for low-income countries with an affordable price tag, and then offering those products to developed countries, at what it will be seen a low-cost price tag. While GEs traditional innovation strategy, was to develop products for developed economies at an expensive price, then doing certain modifications to the products and selling them in low-income countries at a not necessarily low price for those countries. Why is GE so interested in reverse innovation? GE is interested in reserve innovation because the company realized that in order to compete and stay ahead of its current and new competitors; it must continue to innovation in low-income countries and take its products global. As stated in the case, “reverse innovation isn’t optional; its oxygen” (Peng...
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...Introduction According form the sentence “ Creativity and innovation are essentially perceived as the building blocks toward the achievement and success of entrepreneurs”. The sentence is mention with regard to creativity and innovation in term of business. There are many confusion theories concerning creativity and innovation in term of firms and partnerships. Therefore, the writer is going to find out and explain the sentence. Then, this essay will give the definition of creativity and innovation, and determine the key word of the sentence. Why the creativity and innovation are important for successful for entrepreneurs as the building blocks of company and organizational firm. In addition, the writer will provide an example case study that support of how significant of those two words is. Many theories of Creativity and innovation in term of business can be cause of confusing in the sense of creativity and innovation. However, Creativity and innovation are two different terms and they technically have different sense. Fist of all, creativity in term of business is described, as “Mental characteristic that allows a person to think outside of the box, which results in innovative or different approaches to particular task” (BusinessDictionary.com, n.d.). Therefore, creativity is a result processing of knowledge including curious, experience, imagination, and evaluation. Base on the theory of Burrus (2013), “the creativity is divided into three steps: Discovery: the lower...
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...Discuss the forces of innovation, change and continuity underlying the diffusion of management accounting systems Ran Tao Introduction Accounting is the process of identifying, measuring and communicating financial information about an entity to permit informed judgments and decisions by users of the information. (Weetman, 2010) Management accounting is a specialist branch of accounting which has developed to serve the particular needs of management. It helps companies to formulate business strategies and make right business decisions. Many different kinds of management accounting systems are available, some include cost-accounting system, job-costing system and inventory management system. In order to make a smart business decision, it is important to select an appropriate management accounting system that integrates with the company’ financial accounting system. Management accounting innovations and origins An innovation is the successful introduction of an idea perceived as new into a given social system, management accounting innovations involve a set of design characteristics. (Hopper, 2007) The innovation aspects consist of for example types of cost objects, financial or non-financial data and allocation bases. If a proposed system leads to better decisions than the existing system, and the expected benefits from the proposed system exceed the cost of implementation, the new system is adopted. (Feltham, 1972; Demski, 1980) In this case, innovative management...
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...Technology Management Course Book: Paul Trott, Innovation Management and New Product Development, 5.th Ed Learning objectives and Some Discussion Questions for Mid Term Exam • Recognise the importance of innovation • Explain the meaning and nature of innovation management • Provide an introduction to a management approach to innovation • Appreciate the complex nature of the management of innovation within organisations • Describe the changing views of innovation over time • Recognise the role of key individuals within the process • Recognise the need to view innovation as a management process. Discussion questions A number of chapters have several Pause for thought questions to help the student reflect on what they have just read to check their understanding. Examples: Not all firms develop innovative new products, but they still seem to survive. Do they thrive? This question attempts to get the students to recognise that while innovation is important it is possible to survive especially in the short term by focusing on traditional concerns such as minimising costs and generating sales. In the longer term, however, few firms will survive for long without the need to change; and that means introducing new ways of working and new products and services. If two different firms, similar in size, operating in the same industry spend the same on R&D, will their level of innovation be the same? This question simply tries...
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...Innovation In Management Jonathan Streat University Maryland University College Although innovation is meant to solve issues in the public, the problem is how to develop and implement bold, new ideas and get the public agencies to buy into the innovation when they are steadfast in their own belief system. I feel that this is the greatest challenge for management, as we open the second decade of the twenty-first century. Innovation in the public sector is considered to be a constructive change process, which is a result of solving deficiencies or problems. As a result of the events of 9/11, the federal Department of Homeland Security was created. Technology is widely used as a way to increase communication between citizens and governments to better facilitate public services. Also, innovations in policies solve problems. Controversial policies such as Obamacare, shrinking cities strategies, and vacant housing programs are all popular topics in cities across the country. Here is where we see innovations and the various types of management approaches. “Let us be clear about our context”. The public sector refers to the coordination, production, and delivery of goods and services by publically owned and accountable organizations (Potts 2010). This defines economic output including education, health, social welfare, and the private sector. Increased access to specialized knowledge, information, and expertise, resulting from the network form of governance, represent both...
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...1.0 Introduction According to Leslie and Philip (2012), innovation is the commercial exploitation of new knowledge, in other words, developing new ideas into products and production processes and selling them on to customers. Innovation is also the process of translating an idea or invention into a good or service that creates value or for which customers will pay. The term innovation can be defined as something that are original and, as consequence, new that ‘breaks into’ the market. Innovation is needed for businesses to produce new products. Multinational Companies (MNC) can be defined as corporations which have their home in one country but operate and live under the laws and customs of other countries as well according to Ruth and Michael (2000). Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered multinational companies. It can also be referred to as an international corporation. One of the examples of MNC is Starbucks. Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20891 stores in 64 countries (Wikipedia, 2013). According to Leslie and Philip (2012), the global business environment can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource...
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...Business Administration ISSN: 1451-243X Issue 11 (2011) © EuroJournals, Inc. 2011 http://www.eurojournals.com Role of Knowledge Management to Bring Innovation: An Integrated Approach Kashif Akram Lecturer, Department of Commerce The Islamia University of Bahawalpur (Pakistan) E-mail: kashifdms@yahoo.com Tel: +92 63 9240298 or +92 334 7266860 Suleman Hafeez Siddiqui Lecturer, Department of Management Sciences The Islamia University of Bahawalpur (Pakistan) E-mail: sulman.siddiqui@yahoo.com Tel: +92 63 9240298 or +92 322 5172513 Muhammad Atif Nawaz Lecturer, Department of Economics The Islamia University of Bahawalpur (Pakistan) E-mail: atifnawaz_iub@yahoo.com Tel: +92 63 9240298 or +92 314 6864997 or +92 333 3030313 Tauqir Ahmad Ghauri Lecturer, Department of Management Science The Islamia University of Bahawalpur (Pakistan) Ph. +92 63 9240298 Cell +92 333 6183035 E-mail: tauqir.lec@gmail.com Amjad Khawar Hayat Cheema Lecturer, Department of Economics The Islamia University of Bahawalpur (Pakistan) E-mail: khawar790@hotmail.com Tel: +92 63 9240298 or +92 321 4076799 Abstract Purpose: The basic objective of the study is to reconcile the literature on knowledge management and innovation in organizations. The study seeks to examine and elaborate the linkage between knowledge management process and innovation process to dig out the important relationships and flows of activities. Design/Methodology/Approach: The study is induced using qualitative methodology. The relationships postulated...
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...Importance of Technological Innovation SYNOPSIS OF CHAPTER The purpose of this chapter is to set the stage for the course by establishing the importance of managing technological innovation strategically. First the chapter overviews the importance of technological innovation for a firm’s competitive success and the advancement of society in general. The chapter points out that 1) many firms are relying on products developed in the previous three to five years for large portions of their sales and profits; 2) globalization has increased competition putting more pressure on firms to compete through innovation; 3) advances in information technology have enabled both process improvements and the efficient generation of product variants which facilitates the execution of a differentiation strategy at a reasonable cost; and that 3) the residual growth in the GDP can be attributed to technological change. Both the positive and negative effects of technological innovation are described. Advances in food production are an example of the first and pollution is an example of the latter. Next the innovation funnel is introduced to show students that on average 3,000 raw ideas must enter the funnel in order to arrive at 1 successful new product launch. Gestione dell'innovazione 2/ed Melissa A. Schilling Copyright © 2009 - The McGraw-Hill Companies srl Second, the chapter discusses the risks and cost of innovation. On average, many more innovation projects fail than succeed....
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...Voris Boise Cascade Holdings, L.L.C Innovation is vital in most if not all businesses. Innovation brings a sense of new and critical ideas to the table that will businesses thrive towards the future. Without innovative ideas business would not succeed in the world we live in today. Although every business has a different structure with different goals in mind, innovative ideas are the key to each business productivity and success. In explaining the importance of a innovative business vision, mission, values, and determining a business model for Boise Cascade Holdings, L.L.C. this will help the company to succeed in their future endeavors. Innovation Most good company’s know the importance of innovation; therefore, let’s look at an overview of innovation in business to really breakdown the structure and its components. According to “Queensland Government” (2015), “There are several reasons why the generation of new ideas can be critical to your business’s success. Although every organization will have its own priorities and sector-specific issues to balance, businesses that fail to innovate run the risk of losing ground to competitors, losing key staff, or simply operation inefficiently. Innovation can be a key differentiator between market leaders and their rivals” (Why business innovation is important). Innovation is a key part of an organizations business and its plan to succeed. According to “Queensland Government” (2015), “Innovation can help you discover what opportunities...
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...LEADERSHIP APPROACHES AND MODELS Introduction This paper introduces two models that support innovation in today’s business world. The Transformational Leadership Model and the Situational Model. Both models are described in depth and show how they can be used in today`s diverse workforce. The Discovery and Delivery Skills describes how the research in the Innovators DNA provides an inside look into how you can become more innovative. In today`s fast pace get it done era, innovation is key in the success of any business. Leadership is vitally important and to combine styles and models to achieve success is needed in today`s market. Discovery and Delivery is an area where every leader or potential leader must take a look at their own strengths and weakness and reevaluate what they need to do to improve. Leadership Models that Support Innovation in Organizations Transformational Leadership Model: Transformational leadership theory, started with the works of Burns and was later researched and supported by Bass. Bass took the concepts of Burns into a more operational working model that is commonly referred to as the Transformational Leadership Model. Five categories were established originally in the works of Bass and Avolio; they were idealized influence as: attributed charisma, behavioral charisma, inspirational motivation, intellectual stimulation and individualized consideration (Antonakis and House, 2014). With the five parts idealized influence/attributed...
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...internet Law and Order situation Q2: Show how changes in one of these components have had a significant impact on airlines in recent years? A major change in the airline environment since September 11th has been in airport security, as a result of political and legal pressures. Airlines today have to operate in a much more security conscious environment and this has considerable logistical and cost implications for airlines, including the development of much more security conscious booking and baggage handling procedures, the requirement to use security staff on cross Atlantic routes has also added to costs. Q3: How significant is competition in the external environment? Competition is always important in the external business environment. It is particularly important in the airline business where there are a number of major airlines competing on similar routes. United Airlines has positioned itself as a premium carrier and its marketing mix is designed to differentiate it from rivals in a number of respects relating to high quality and service. Q4: What must companies like United Airlines do about changes in their external environment? Organisations need to respond to changes in the external...
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...There are many entrepreneurs who come together as an organization and build an entrepreneurial culture to seek opportunities for innovations. An entrepreneurial culture is an environment where entrepreneurs are inspired to create new innovations. Innovation is basically to have a new idea, to change something from the old and make it new. The way people interact with one another and recognize their environment is all a part of a culture. In a business industry setting, entrepreneurial cultures are defined as the business owners getting together to inspire each other to brainstorm new ideas/ products, innovations. There are many companies out there that exemplify innovation. One that comes to mind and I believe everyone can agree is Apple Inc. Apple is known for their cell phones, however they are always improving. How many new phones have they come out with in just the last 2 years? They have phones with different data storage, different sizes, and they are always adding new ways to appease the consumer. But why is innovation important? I have listed a few examples stating why entrepreneurial organizations seek out probabilities for new innovation. One reason these entrepreneurial organizations seek opportunities for innovation is to offer their consumers new products/services. Their development of new products and approaches sharpens the industry which is in the long run is valuable to the consumer. New products and services are the essence of all businesses. This is crucial...
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...The Role of Leaders in Innovation Bradley Lewis MBA6006 Capella University Table of Contents Introduction 1 Leadership practices that support innovation in organizations 1 Innovator’s DNA- Discovery skills 3 Innovator’s DNA- Delivery skills 4 Personal strengths and weaknesses in discovery and delivery skills 4 References 5 Introduction This paper will have four sections in which will explain how leadership practices support innovation in organizations, a section that analyzes the role of discovery skills for their support of innovation in organizations, a section that analyzes the role of delivery skills for their support of innovation in organizations, and finally a section that will analyze my own strengths and weaknesses in the discovery and delivery skills, and how they help or hinder your ability to support innovation in organizations. Leadership Practices that Support Innovation in Organizations An innovative leader is an individual that is capable of adapting to and combining different leadership styles in order to influence employees to produce creative ideas, services and products. Companies are in high demand for innovative leaders who can work effectively and responsibly within an organization as well as be capable of presenting new ideas (Lyons, 2011). It is the main goal of an innovative leader which involves the progress and success of a company or organization. According to Dyer, Gregersen and...
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