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Technology Intelligence (TI) is an activity that enables companies to identify the technological opportunities and threats that could affect

the future growth and survival of their business. It aims to capture and disseminate the technological information needed for strategic planning and decision making. As technology life cycles shorten and business become more globalized having effective TI capabilities is becoming increasingly important. The Centre for Technology Management has defined 'technology intelligence' as "the capture and delivery of technological information as part of the process whereby an organisation develops an awareness of technological threats and opportunities. 1. Technology Intelligence is the ability to look at developments in technology and use them as enablers. You can map a new technology development to something you do in your organization. This may be a new product design, a new extension to an existing product, a service design, a new way of marketing, a better way to obtain sales leads, a simpler method of manufacturing etc. There are no bounds. 2. Technology Intelligence is needed for almost every organization. Organizations in certain industries may need it more than others. If you have it, you will certainly have some competitive advantage over others, who don‘t. 3. Each new development in technology creates at least one marketplace which may over time blossom into multiple markets and an entire industry. 4. When it appears, a new technology may not appear earth shattering. So people tend to ignore it. There will be a series of minor shifts, a few scattered applications and all of a sudden, there will be some company getting millions of customers. Don‘t look to journalists to cover it (unless they are some one like Jon Udell). 5. Some times a simple technology may go viral with great impact. Twitter is a good example. It started as an innocuous micro-blog. It was ignored by most in the beginning. 6. The real winners will be the ones who can find new applications for a technology and successfully implement it and educate others. Leveraging technology is a special skill. It can be acquired. 7. Detect trends early. These are also known as weak signals. First, start with an open mind. The smart ones have the ability to spot an early trend.

BUSINESS PROCESS REENGINEERING ―BPR is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and

speed.‖ Instead of starting with an activity flowchart, corporations are advised to start with a clean slate. They are then told to look into why they perform the tasks the way they do. A Process Engineer will look at the activities to be performed and how they can be engineered to invest minimum resources and get maximum returns. Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality. In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer. They typically adopt a new value system that places increased emphasis on customer needs. Companies reduce organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision making. Business process re-engineering is also known as business process redesign, business transformation, or business process change management To illustrate the point, let us consider the example of Apple iPod. Apple rethought the way music ought to be made available to the consumers. The changes it brought were:

Radical: While all other music labels were selling music via brick and mortar stores, Apple developed its iTunes software to sell music digitally. (Napster had made digital music available through a P2P platform earlier, but was sued by music labels for copyright violation)

Fundamental: Apple sold single tracks as opposed to whole albums being sold at brick and mortar shops.

Information Sharing: A BPR project is usually facilitated by a cross functional team. Most of the times, teams are spread across different geographic locations. Information needs to be successfully shared amongst various people to ensure the reengineering goes as planned and without hiccups. Technology as the Solution: The new processes that are developed as a result of BPR initiatives deploy the latest technology to achieve the desired end results. Usually it is e-Commerce, automation or another technology driven solution that is implemented. Business Process Re-engineering has become a very important buzzword in the BPM lexicon. Many corporations who were late in realizing the power and importance of BPM have to undergo re-engineering initiatives to ensure that they are still relevant to the marketplace. Re-engineering initiatives are however expensive and may require certain downtime. This is the reason they are resented by many corporations.

Methodology Business Process Reengineering is a dramatic change initiative that contains five major steps. Managers should:

Refocus company values on customer needs;

Redesign core processes, often using information technology to enable improvements;

Reorganize a business into cross-functional teams with end-to-end responsibility for a process;

Rethink basic organizational and people issues;

Improve business processes across the organization.

Common uses Companies use Business Process Reengineering to improve performance substantially on key processes that impact customers. Business Process Reengineering can:

Reduce costs and cycle time. Business Process Reengineering reduces costs and cycle times by eliminating unproductive activities and the employees who perform them. Reorganization by teams decreases the need for management layers, accelerates information flows, and eliminates the errors and rework caused by multiple handoffs;

Improve quality. Business Process Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership of processes. Workers gain responsibility for their output and can measure their performance based on prompt feedback.

Business process re-engineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. Some of the common benefits of BPR are: Increase Effectiveness. As all employees are aware of the processes to which they belong , they have a greater sense of responsibility. All processes are completely monitored under the strict control of the management. The net result of this is that employees deliver high quality products to their customers. Helps to improve efficiency. Proper management and control of all business processes reduces the time lag between different processes, which otherwise is quite high causing delays. This in turn reduces the time to market the product to the target customers and givesquicker response to buyers. Reduces cost. With the proper management of processes, improved efficiency and quick delivery of products to the buyers ,the overall product costs are reduced resulting in cost saving for the organization in the long run. Meaningful job for employees. As the time lag of product processing between different departments gets reduced due to the application of business process reengineering, there are more meaningful tasks to be performed by employees. This leads to increase their levels of motivation and the desire to perform well.

Improvement in organizational approach. According to the traditional approach of managing an organization there is no flexibility or adaptability to change. The management formulated strict rules for employees of the organization. Whereas now, when most organizations have implemented business process reengineering there is an increase in flexibility and adaptability for change. This has created better environment for people to work, thus leading to employee satisfaction. Growth of business Implementation of BPR results in the growth of the present business thus enabling the emergence of new businesses within the same organization. Although BPR is very effective in controlling cost and improving efficiency, its implementation is a hard nut to crack. Employees are very resistant to this kind of change thus, it is important to have extensive support from the top management. Limitations of BPR 1. Negatively influence customer reaction and customer service. 2. May not suited for all industry for a radical redesign 3. May negatively influence core competence of the business 4. May ignore the staffs reactions and emotions 5. May high costly. 6. May lead to lack of focusing the customer needs INNOVATION MANAGEMNT Innovation management is the discipline of managing processes in innovation. It can be used to develop both product and organizational innovation. Without proper processes, it is not possible for R&D to be efficient; innovation management includes a set of tools that allow managers and engineers to cooperate with a common understanding of goals and processes. The focus of innovation management is to allow the organization to respond to an external or internal opportunity, and use its creative efforts to introduce new ideas, processes or products.[1] Importantly, innovation management is not relegated to R&D; it involves workers at every level in contributing creatively to a company's development, manufacturing, and marketing. By utilizing appropriate innovation management tools, management can trigger and deploy the creative juices of the whole work force towards the continuous development of a company. [2]

fine-tuned. because they for sure have ideas that people from other departments could not come up with. Evaluation of innovation: This is an important and yet all too frequently overlooked aspect of the innovation management process. There are many online tools available for real-time document sharing that might help teams that are geographically separated to still have intense cooperation. This helps to ensure that any ideas that have a promising veneer but that are poorly thought out will be identified before resources. When the best ideas have been combined. choose the best ones and then consider whether they can be combined to create an even greater idea. or simply consist of brainstorming sessions. You might consider having a trained business coach facilitating the discussions.[3] The 8 Phases of an Innovation Management Process Setting the goals for the process: Innovation always begins with a goal in mind. Once you have this goal. And for this combination to work well. and polished. you need representatives of all parties involved in the process. make sure that you have someone representing all the parts of the process from start to the end.The process can be viewed as an evolutionary integration of organization. the whole result can be bigger than its individual parts. This team may consist of you and another person. As you know. funding and time have been poured into them. technology and market by iterating series of activities: search. It may involve others such as your customers (who can provide suggestions and feedback based on their own experience with your product or service) or other stakeholders in the business. When you establish the team for this process. This can include the use of online tools. it is time to subject them to evaluation based on peer reviews. they can bounce ideas off one another and create a collaborative solution. attendance of events such as trade shows that can be inspiring and informative. Often. strong ideas will be complementary to one another and will join well to create an even better result. Cooperation: The innovation team should work together so that instead of trying to come up with an idea separately. It also helps to select the ideas with the greatest potential from among . Business coaches may be useful here for making sure that all the angles of innovative aspect are covered. It is many times based on finding the solution to a problem. Combination of ideas: Once the ideas are in. or may even be all of your organization‘s employees. it should be discussed among everyone in the problem solving team. select. a group of people. implement and capture.

Each step you take forward will cost you more… Testing the ideas: Once the ideas with the greatest potential have been identified. Digital Prototyping gives conceptual design. unless your new product causes you to have to drastically alter the typical way that your go-to-market strategy functions. then changes will need to be made or the idea will need to be shut down. Osborn claimed that brainstorming was more effective than individuals working alone in generating ideas. Tools for managing innovation Brainstorming is a group or individual creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its member(s). and sales and marketing departments the ability to virtually explore a complete product before it‘s built. If people say that they are interested in it.several that appear equally capable of being successful. It should be easier for you to move from testing to execution if you were able to generate orders already in testing phase. manufacturing. the term is used as a catch all for all group ideation sessions. then this part of the innovation management process should be relatively commonplace in your organization. although more recent research has questioned this conclusion. engineering. as well as customers and investors to have a better look at how the product will function and what changes can be made to it so that it will be even further improved. The execution of implementation is a step that is unique to your business and. Industrial designers. then ask them if they give you the order right away. Remember to keep always customer in your mind also in execution phase and design your measuring systems so that they measure added value for the customer (you get what you measure and customers weight you based on that!). It is cheap to change your innovation at this stage compared to later stages. Make sure that the product or service not only raises interest but is able to generate orders also. they can be tested so that they can be better developed.[1] Today. Should a milestone not be reached. its implementation needs to be carefully monitored and assessed in terms of a number of milestones that should be set. . Execution of innovation implementation: The ideas that survive the testing process can be further developed and altered until they are ready to be executed as a part of the business offerings. Assessment of innovation life-cycle: After the execution of an idea. The term was popularized by Alex Faickney Osborn in the 1953 book Applied Imagination. This allows the team. One of the most common means of testing a product or service idea is to create a prototype or test group.

or semipermanent functional activities to produce products or services. and reducing development gearing and time-to-market. the management of these two systems is often quite different. PLM describes the engineering aspect of a product. and controlling resources to achieve specific goals. time. and engineers use Digital Prototyping to design.[1] PLM integrates people. and facilitating product innovation. Marketers also use Digital Prototyping to create photorealistic renderings and animations of products prior to manufacturing.[5] The primary constraints are scope. processes and business systems and provides a product information backbone for companies and their extended enterprise. organizing. Innovative digital prototypes can be created via CAutoD through intelligent and near-optimal iterations. quality and budget.[1] undertaken to meet unique goals and objectives. validate. PLM systems help organizations in coping with the increasing complexity and engineering challenges of developing new products for the global competitive markets. permanent. The primary challenge of project management is to achieve all of the project goals[4] and objectives while honoring the preconceived constraints.[6] The secondary —and more ambitious— challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives. meeting multiple design objectives (such as maximised output. PLCM refers to the commercial management of life of a product in the business market with respect to costs and sales measures. motivating.[2] typically to bring about beneficial change or added value. product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception. from managing descriptions and properties of a product through its development and useful life. whereas. highest speed and cost-effectiveness).Companies with proactive innovation strategies tend to have strong research orientation. and as such requires the development of distinct technical skills and management strategies. Companies often adopt Digital Prototyping with the goal of improving communication between product development stakeholders. data.manufacturers. getting products to market faster. identifying multiple figures of merit. to service and disposal. The temporary nature of projects stands in contrast with business as usual (or operations). energy efficiency. These companies access . Project management is the discipline of planning. and often constrained by funding or deliverables). through design and manufacture. optimize. Product lifecycle management (PLM) should be distinguished from 'product life cycle management (marketing)' (PLCM). Types of Innovation Strategy Proactive . In practice.[3] which are repetitive. and visualize their products digitally throughout the product development process. A project is a temporary endeavor with a defined beginning and end (usually timeconstrained. they will often have first mover advantage and be a technology market leader. iterate.

Companies like Dupont. Invention is done everywhere. They will copy proven innovation. Radical innovations (as described in Why Innovate) are breakthroughs that change the nature of products and services. Apple and Singapore Airlines have proactive innovation strategies. an innovation strategy needs to be truly inspiring and should describe a desirable future state for the company. Dell and British Airways. These companies have mainly incremental innovation with in-house applied R & D.knowledge from a broad range of sources and take big bets/high risks. You have probably often read in literature that the innovation strategy should be derived from the corporate strategy to clearly define how the organization sees opportunities for growth and makes explicit choices about the role of innovation. Passive . In fact. Reactive .: Opportunities and possibilities formulated in an innovation strategy should actually provide input and shape the overall corporate strategy. 5 Key Points to Consider when Developing an Innovation Strategy First. the value that is .Companies with passive innovation strategies wait until their customers demand a change in their products or services.This is a high bar as it rules out a single-minded focus on incremental add-ons to the business. Companies with active innovation strategies also have broad sources of knowledge and have medium to low risk exposure. The types of technological innovation used in a proactive innovation strategy are radical and incremental. Opportunities and possibilities formulated in an innovation strategy should actually provide input and shape the overall corporate strategy. it requires the organization to aim higher. Many of the companies that supply to automotive companies have passive innovation strategies as they wait for the automotive companies to demand changes to specification before implementing these changes. Incremental innovation is the constant technological or process changes that lead to improved performance of products and services. we think that to some extent it should be the other way around. Rather. They tend to hedge their bets and include companies such as Microsoft.An active innovation strategy involves defending existing technologies and markets but with the preparedness to respond quickly once markets and technologies are proven. have a wait and see approach and look for low risk opportunities.The reactive innovation strategy is used by companies that are followers and have a focus on operations. Companies with reactive innovation strategies use entirely incremental innovators and include budget airlines such as Ryanair which has successfully copied the no frills service model of Southwest Airlines. which is absolutely not wrong. Still. Active .

Second. allow adjustments to the desired course and maybe even allow an organization to cut its losses if required. Rome was not built in a day. they fail to deliver the truly sustainable competitive advantages that can only be derived by performing above the overall market growth level and exceeding average profit margins. the process of developing the strategy needs to be open. One client once joked: ―We actually invented the not-invented-here-syndrome in our company. . After all. technologies and gaps that may need to be filled. Finally. Too many innovation strategies that we have seen tend to be ―me too‖ (and mostly incremental). Again. beat the competition.derived for many large companies by scouting inventions. the innovation strategy needs to be ambitious in terms of providing the basis to break away from the competition. and where to invest and compete. incorporate learning. the innovation strategy should aim higher and help the company outpace anybody else in a contested space. as it is grounded in the reality of a company‘s environment. The innovation strategy also needs to explore possible market developments and scenarios while defining the most attractive market opportunities. connecting the dots between many singular ideas and inventions into one big platform innovation and fully scaling it to maximize potential benefits. Open means bringing the outside in and working under the assumption that the other seven billion people on our planet may have insights that do not exist within a particular company‘s boundaries. What do we mean by this? It is important to describe with great precision which specific innovation initiatives should be pursued. This typically does not fit with the classic annual corporate planning cycle. an innovation strategy needs to be adaptive and to evolve over time. not an innovation strategy.e. and create new spaces. i. the strategy in all practicality is probably just a product roadmap of business extensions. Even if executed according to plan. Fourth. An innovation strategy and the respective execution should be capable of adapting the moment there are new insights. an innovation strategy must also be specific to the time in which it is developed. and it reflects the available capabilities. innovation sometimes requires more time than originally estimated.‖ Companies are settled into the way they innovate. The innovation strategy also needs to explore possible market developments and scenarios while defining the most attractive market opportunities. Third. even if that requires moving in multiple directions to raise the aspiration you had at the beginning. If the so-called strategy does not seek to push those boundaries. Even today this is something that many people find hard to accept. Likewise.

or the use of new software like 3D modelling software as part of the process or for developing new products. the logistics of the company. This includes any system that is implemented in improving the delivery of the product to the customer such as computer systems.Process innovation is defined as ―A process innovation is the implementation of a new or significantly improved production or delivery method. i. the use of barcodes. Examples of process innovation There are many examples of process innovation since industry started to develop and the purchase and use of products became a way of life. The Pilkington glass method is yet another process innovation as are the methods used to manufacture small disk drives currently used in some of the popular MP3 players. Examples of process innovations include Ford‘s first use of the production line by bringing product to the person during fabrication. However. Process innovations involving the logistics include the factory to customer delivery of custom-built computers by Dell Corporation. equipment and/or software. substantial and radical innovation with some indicative examples taken from the automotive industry . The lithography method used to fabricate microchips was a process innovation that has touched the lives of most people on the planet. This includes significant changes in techniques. The diagram below describes the relative relationships between incremental. scanners and the Internet that allows customers to track parcels in real time as couriers are transporting them. The delivery methods are associated with the physical movement of the product from the factory floor to the end user. Innovation is therefore outcome-oriented. and the innovation process used by organisations to arrive at the best ideas for commercialisation. it is possible to define three levels of innovation based on the degree of ―newness‖ and the degree of ―value add‖. within this broad definition. tracking systems and any associated equipment.‖ ―… The implementation of a new or significantly improved production… method‖ involves the development of a new way to produce a product using a newly developed machine. a new method such as the Pilkington Floating Glass method or the blast furnace. with the outcomes being aligned with a company‘s overall strategy‖.e. Innovation is the successful exploitation of new ideas to increase customer value or create wealth for a company.

Economic: be the low cost producer 4. cumulative and sustainable manner. Adaptive: be the second one but be the ―best‖ 3. Three generic innovation strategies can be defined as: Pioneer: Focused on bring new and industry leading or transforming technologies to market. Often focused on cost-downs. Inventive: be the first one to market 2. from a defensive perspective. 1. This requirement can be generated from an offensive need to create competitive advantage and enter new markets.Innovation Strategies An innovation strategy helps firms decide in a. it‘s all about protecting market share and ensuring long-term competitiveness in relation to industry players. . Or. about the type of innovation that best match corporate objectives” . Merle C Crawford‘s (1980) described four innovation strategies . “An innovation strategy guides decisions on how resources are to be used to meet a firm’s objectives for innovation and thereby deliver value and build competitive advantage.” Innovation is an essential component of business activity. Fast Follower: Adept at improving existing technologies through incremental innovation in both product and process technologies. Thus. that may be in different areas. Opportunistic: Makes some investment in substantial innovation but also sources innovation from third parties and invests in adapting these for its identified market opportunities. Innovative Applications: be the creative user of existing technologies Each innovation strategy requires innovation. business strategy will determine the requirement and appetite for innovation development activities and drive an effective portfolio of the three levels of innovation.

while more incremental innovations may emerge from practice – but there are many exceptions to each of these trends. Eric von Hippel has identified end-user innovation as. what exactly drives innovation in organizations and economies remains an open question. but a wide variety of intermediary organisations such as consultancies. and through empirical work shows that innovation does not just happen within the industrial supply-side. each main technology area employed by a business should be assessed separately. the competitive environment and its resources. Regarding user innovation. by far. Sources of Innovation." But innovations may be developed by less formal on-the-job modifications of practice. A good recent example of an Opportunistic innovation strategy is the incorporation of digital camera and MP3 technology into mobile phones. standards bodies etc.Companies such as Sony. each of these businesses is likely to have different innovation needs and tailored strategies will be required. Another source of innovation. This is where an agent (person or company) develops an innovation for their own (personal or in-house) use because existing products do not meet their needs. the most important and critical in his classic book on the subject. only now becoming widely recognized. Innovation strategy is vital for developing & operating the innovation process. Thus. they may also choose to freely reveal their innovations. Similarly. selling their product. In the linear model the traditionally recognized source is manufacturer innovation. For companies with a portfolio of businesses in different industry sectors. rarely user innovators may become entrepreneurs. Toyota are widely recognised as Pioneers while the Korean car companies and Chinese computer manufacturers can be regarded as Fast Followers. with much attention now given to formal research and development for "breakthrough innovations. This is where an agent (person or business) innovates in order to sell the innovation. through exchange and combination of professional experience and by many other routes. In addition. More recent theoretical work moves beyond this simple dualistic problem. Work on social networks suggests that much of the most successful . is enduser innovation. but through a complex set of processes that links many different players together – not only developers and users. or more often they may choose to trade their innovation in exchange for other innovations. a company should develop an innovation strategy appropriate to the industry life-cycle. In such networks of innovation the creativity of the users or communities of users can further develop technologies and their use. Nowadays. Whether innovation is mainly supply-pushed (based on new technological possibilities) or demand-led (based on social needs and market requirements) has been a hotly debated topic. The more radical and revolutionary innovations tend to emerge from R&D. Innovation by businesses is achieved in many ways. using methods like open source. an appropriate mix of innovation related activities can be developed based on realising the strategy(s) Sources of innovation: There are several sources of innovation. or as a result of the articulation of user demand. 3M. Having done this.

The Linear Model of customized response. continuous . flexible and innovation One of the first (theoretical) frameworks developed for historically understanding science and technology and its relation to the economy has been the ―linear model of innovation‖. integration within the firm. and the potential of technologies can be linked together in a creative process that challenges both Failure of innovation • • • • • • • • • • Poor Leadership Poor Organisation Poor Communication Poor Empowerment Poor Knowledge Management Poor goal definition Poor alignment of actions to goals Poor participation in teams Poor monitoring of results Poor communication and access to information Innovation Models Table 1: Progress in conceptualizing innovation: Rothwell’s five generations of innovation models Generation : Key features First and second : The linear models – need pull and technology push Third : Interaction between different elements and feedback loops between them – the coupling model Fourth : The parallel lines model. upstream with key suppliers and downstream with demanding and active customers.innovation occurs at the boundaries of organisations and industries where the problems and needs of users. emphasis on linkages and alliances Fifth: Systems integration and extensive networking.

The product development process is seen as one of the key factors that determine the success of new products. including. manufacturing and support. concurrent design of products and their related processes. The model postulates that innovation starts with basic research. aspects that are obviously important in today's fast-paced market.[ The second concept is that the preceding design activities should all be occurring at the same time. The model is based on 60 case studies on efficient product innovation processes. producibility. Also known as ‗Traditional Phase Gate Model‘. including cost. schedule. The overall goal being that the concurrent nature of these processes significantly increases productivity and product quality. and ends with production and diffusion: Basic research → Applied research → Development → (Production and) Diffusion The Stage-Gate® model describes how a firm should structure its product development process using a sophisticated system of project phases and milestones. Concurrent Engineering is a systematic approach to the integrated. Thus a project must pass through a gate with the permission of gatekeeper before moving to the next succeeding phase.‖ Concurrent engineering is a work methodology based on the parallelization of tasks (i.Innovation is an early model of innovation that suggests technical change happens in a linear fashion from Invention to Innovation to Diffusion. should be taken into careful consideration in the early design phases. product or services concept is frozen at early stage so as to minimize risk. It refers to an approach used in product development in which functions of design engineering.e. under this model. performing tasks concurrently). assembly. maintenance issues. Also innovation process in enterprise involves series of sequential phases/steps arranged in such a manner that the preceding phase must be cleared before moving to next phase. The basic premise for concurrent engineering revolves around two concepts. or concurrently. quality and user requirements. environmental impact and finally disposal and recycling. testability. from conception to disposal. This philosophy is key to the success of concurrent engineering because it allows for errors and redesigns to be discovered early in the design process when the project is still in a more abstract and possibly digital . This approach is intended to cause the developers from the very outset to consider all elements of the product life cycle. The first is the idea that all elements of a product‘s life-cycle. manufacturing engineering and other functions are integrated to reduce the elapsed time required to bring a new product to the market. then adds applied research and development. from functionality.

the design team can avoid what often become costly errors as the project moves to more complicated computational models and eventually into the physical realm. Doing several things at once. Cross functional teams are important to the effective sharing of information in a timely fashion. timelines. . Potential Advantage of Using Concurrent Engineering           Faster time to market which results in increased market share.=== 4. hardware and software design. it is shared and integrated into the design.[4] Concurrent engineering elements 1.realm. Cross-functional teams Include members from various disciplines involved in the process. By locating and fixing these issues early. Higher reliability in the product development process. schedules. Improved quality of resulting end products. such as designing various subsystems simultaneously. is critical to reducing design time. Increased positioning in a highly competitive world market. including manufacturing. Lower manufacturing and production costs. 3. Increased accuracy in predicting and meeting project plans. Incremental information sharing It helps minimize the chance that concurrent product realization will lead to surprises. As soon as new information becomes available. Integrated project management It ensures that someone is responsible for the entire project. Increased efficiency and performance. Increased effectiveness in transferring technology. Increased customer satisfaction. marketing. and that responsibility is not abdicated once one aspect of the work is done. and budgets. Concurrent product realization Process activities are at the heart of concurrent engineering. Reduced defect rates. and so forth 2.

organizational learning and knowledge management. Discontinuous products and services are increasingly likely with ever-faster new product/service development. entrepreneurship. product/service.Product life cycles. while maintaining and improving their existing products. a product innovation (e. are reaching the limits of incremental process improvement. technology. and innovation are positioned at the center of the model rather than seen as independent forces that are largely unaffected by policy. and strategy). each of which can vary in the degree of newness (incremental to radical) and impact (sustaining versus discontinuous). with the more recent attention directed at change management. Radical product/service innovation is oriented toward creating wholly new products and/or services. at least in the developed world.g. 1. new goods or services put on sale). causing business survival to depend on new product development and. Process Innovation Process innovation became an important topic with the rise of the quality and continuous improvement movements and.   Ability to execute high level and complex projects while minimizing the difficulties. Shorter design and development process with accelerated project execution. Because processes lag far behind what is possible given technological advancement. increasingly. have become shorter and shorter. Types of Innovation There are three main types of innovation (process. Organizations must be constantly on the lookout for discontinuous new products and/or services. then again. on the speed of innovation in order to develop and bring new products to market faster than the competition (Jonash and Sommerlatte 1999). which changes the way a given good is produced within the firm or across a supply chain. Corporations today. Some have argued that what is needed today is radical process innovation. in particular. Innovation economics is based on two fundamental tenets: that the central goal of economic policy . Product/Service Innovation Incremental product/service innovation is oriented toward improving the features and functionality of existing products and services. Economics of Innovation/ Economic conceptions of innovation Innovation economics or economics of innovation is a growing economic doctrine that reformulates conventional economics theory so that knowledge. a process innovation. Organizations must direct greater attention to new product development. Higher return on investments. Hammer and Champy (1994) introduced the concept of radical reengineering based on their assertion that for companies to achieve maximum efficiency and effectiveness requires radical process reengineering of the organization and its processes. 2. it is not possible to achieve the necessary transformation through incrementalism.

Define a criteria for the selection and prioritization of projects within the portfolio to weed out less probable projects as soon as possible 5. Foster an organizational culture that promotes innovation by allowing employees time to innovate and the implementation of their own ideas for improving job performance. Develop and implement methods that enable tapping into the organization‘s intellectual capital . Effect the necessary structural changes to arrange skills throughout the organization in competence centers. Arrange current and potential future alliances in a portfolio that can be tapped when needed. 6. Deciding upon the innovation strategy that best fits the organization‘s situation. 1934.should be to spur higher productivity through greater innovation. 8. and thereby economic growth. 3. 7. The following summarizes the various objectives that management should aim for under the innovation management stage . and enable it attain its vision. Joseph Schumpeter defined economic innovation in The Theory of Economic Development. Harvard University Press. and define when and how such alliances are to be made (governing conditions). Creating a portfolio of innovation projects to translate competitive strategies and to manage risk across the whole organization. At the outset it is important that the culture of the organization empowers employees and encourages them to submit their ideas. Boston. and that markets relying on input resources and price signals alone will not always be as effective in spurring higher productivity. The introduction of a new good — that is one with which consumers are not yet familiar — or of a new quality of a good. Most importantly management should adopt the appropriate innovation strategy to lead the innovation process and manage the innovation portfolio. Effect a shift in the way the organization sees itself where innovation is recognized as the way of doing business 2. Main Goals of Innovation Management Effective innovation management requires the implementation of a number of processes and the employ of a number of tools. to enable the formation of the right team for the purposes of the innovation project. 4.

or training methods). or processes. a program sponsored by the Georgia Institute of Technology and Georgia Power (USA). Demonstration services are offered by the Center for Manufacturing Information Technology. including private vendors. workforce. and Spain identify "good practice" firms and structure opportunities for other companies to visit these models and learn how they . Although classic models of technological development suggest a straightforward linear path from basic research and development to technology commercialization and adoption. Moreover. and their benefits and costs. the transfer and mobility of skilled labor.[11] The TOPS programs now found in the United Kingdom. and peer firms. improved manufacturing. products. In the United States. and follow-on technical changes. over space. the technology diffusion measures which form the subject matter of these definitional efforts broadly include the following:  Awareness-building and technology demonstration. depending on the particular technology. [10] Similarly. and such practices as reverse engineering. customers. manufacturing control systems. across time. Technology diffusion can be contrasted with technological innovation.Technology diffusion involves the dissemination of technical information and know-how and the subsequent adoption of new technologies and techniques by users. and universities. as well as public technology centers. and government-oriented technology transfer. often extending to hands-on training and pilot production. government laboratories. which frequently seeks to shift advanced technology out of laboratories into commercial use.[2] Technology can diffuse in multiple ways and with significant variations. their possible applications. Technology also diffuses through the internal "catch-up" efforts of firms. diffused technologies are neither new nor necessarily advanced (although they are often new to the user). the effective use of diffused technologies by firms frequently requires organizational. These measures seek to make potential users more knowledgeable about available technologies. where computers. which emphasizes the development of new knowledge. Japan's prefectural and municipal technology centers (Kohsetsushi) demonstrate new technologies to firms.[3] In many cases. and they may be acquired from a variety of sources. Diffused technologies can be embodied in products and processes. While there are different classifications schemes. and software are available for potential users to see and try. varied forms of informal knowledge trading [4]. the activities of professional societies and the trade and scientific press. A method of awareness-building attracting increasing interest is benchmarking. the Industrial Technology Institute (Michigan) offers a Performance Benchmarking Service which allows companies to compare their use of technology with that of comparable and best practice firms. Germany. consultants.[1] In this context. technology includes "hard" technologies (such as computer-controlled machine tools) and "soft" technologies (for example. in practice technology diffusion is more often a complex and iterative process. and between different industries and enterprise types. quality.

Manufacturing Extension Partnership centers employ this approach. through cost-sharing schemes.. to businesses access technical information. of Minnesota. with partial funding from the Pennsylvania Department of Commerce. These measures address the tendency of technology users to under-invest in human capital development. not to act on an undesirable investment). a network of trained staff offers technological advice. A very common technology diffusion measure is thus training.[13] and Denmark's Technological Information Centers. such as TelTech. which are established in all counties of the country and offer information and other technical services to firms. new initiatives are underway to use the internet as a medium to service technical information needs. and Ohio. [14] In some cases. the National Technological University and other organizations offer remote users throughout the United States video and satellite broadcasts on new technology and manufacturing topics. private consultants are engaged. Inc. These efforts aim to reduce the information search costs associated with technology diffusion. also offer specialized technology information services. [12]  Information search and referral services. team-building workshops. including centers in Oklahoma. These measures seek to address limitations of expertise among both users and suppliers of technology and to stimulate and assist firms to take action (or.S. Examples of programs in this category include the Pennsylvania Technical Assistance Program (USA). For example. for example. This encompasses a wide band of measures which support experts to assess business problems.  Training. in this case (for a subscription fee) matching corporate technology needs with appropriate sources of expertise. Kansas. and assist in implementation. The European Union Community Research and Development Information Service (CORDIS) provides electronically accessible information about technology development program opportunities to service providers as well as potential users. The effective deployment of technology and improved operational techniques invariably involves changes in human capital requirements. including on-the job training. conducted in many different forms. and offers recommendations to firms in local industries. and distance learning. in the Valencia Institute of Small and Medium Enterprise (Spain). which often not only hinders the initial decision to deploy a technology but can also lead to subsequent inefficiencies once . conducts assessments. management seminars. In several countries.a number of U.operate. For-profit companies. Media and new communications technologies can assist in awareness-building. operated by the Pennsylvania State University. Technical assistance services are located in many applied technology centers.  Technical assistance and consultancy. identify opportunities to upgrade technologies and industrial practices. classroom training. in some cases. Information services often add further value by qualifying information requests and matching user needs with appropriate resources. to assist particular firms .

K. each of which conducts collaborative industry-focused research. including those in areas of new technology. local public technology centers accept staff from smaller firms for periods of time to receive training in new technologies and participate in cooperative research. To address the gaps between technology development and deployment. the National Science Foundation and the U. training programs focused on industry needs in specific technological areas are offered by Australia's more than 60 Cooperative Research Centers. often associated with polytechnic institutes. In the United States. Often. the National Information Initiative. Additionally. although federally-sponsored. especially if small or mid-sized enterprises. the development of . For example. drawing on public and private resources. In Japan. a range of collaborative public-private research mechanisms have been established. Measures have been developed to support the secondment of personnel to technical centers or other firms where new technologies are developed or in use. ministries have sponsored programs to subside research personnel in small and mid-size firms to help them absorb and develop new technologies. collaborative research efforts are embodied in the numerous applied technology centers now found throughout the OECD (and other) economies. The diffusion of technology can be accelerated by common agreement between technology developers and users about standards and technological compatibility. may lack the internal expertise to absorb new technologies or they may lack resources to apply their existing personnel to new research and technology projects. Germany. and support appropriate training initiatives. Potential users of technology. In a different context. has promoted an industry-driven process of standards development. through industry involvement. focus research on key needs and opportunities. local Training and Enterprise Councils (known as Local Enterprise Councils in Scotland) aim to identify industry training needs. Department of Commerce sponsor schemes to place engineers in Japanese companies and research institutions. In the U.  Standardization. [15]  Personnel exchange and the support of R&D personnel.S. special measures to promote training for technology diffusion may also address deficiencies among existing institutions and vendors (who may be unable to effectively mount courses in new technologies without additional support). Japan's prefectural public technology institutes and new third-sector projects conduct applied research and technology projects with individual firms and groups of firms. The area of electronic commerce is currently one of those areas where efforts to forge standards is underway.  Collaborative research and technology projects.. These measures also seek to shorten the time taken to commercialize new technological innovations and. international exchanges are encouraged: in the United States. In Baden-Wurttemburg. Uncertainty about the compatibility of a technology can present barriers to diffusion investments by users.in use. In Germany. Increasingly. the quasi-public Steinbeis Foundation sponsors a system of about 130 technology transfer centers.

The diffusion of product and process technology through the promotion of new start-up and existing small technology-based firms often involves a financial element. A variation . the Aachen Gesellschaft fur Innovation und Technologietransfer helps groups of . and strengthen ongoing business and technology development relationships. Requirements may be set as to the user's own cost-share or match. In some cases. loans.  Financial support. through grants. In Finland. In Germany. including banks and quasi-governmental corporations. defense procurement policies have favored small technology firms (through small business offsets) and the diffusion of new process technologies.the joint-production or offset agreements typically found in military. or large transportation projects. has also facilitated the diffusion of quality measurement techniques and the avoidance of duplicative marks. and various kinds of royalty agreements. Measures can include direct financial support or subsidies to enterprises. Examples of policies range from the preliminary cost-sharing of private consultant assistance sponsored by the Minnesota Manufacturing Technology Center (USA) to grants through Italy's Act 696 to assist small companies in purchasing high technology equipment. Collaborative efforts may be "horizontal" (for example. "sectoral" (firms in the same industry) or "lateral" (firms in different industries but with shared interests in a technology). These measures are indented to reduce financial constraints among users associated with the initial or ongoing costs of adopting new technologies. through IS0 9000 and subsequent reference marks. the Support for Products Under Research and the Small Firms Merit Award for Research and Technology programs also support technology development in smaller firms. groups of small firms). The Small Business Innovation Research program in the United States allocates a share of federal R&D budgets to support the development of technology-based small firms. involving both large and small firms. aerospace. public financial policies to promote technology diffusion operate through intermediary institutions. applied technology and implementation programs have sponsored the formation of more than 200 collaborative groups.  Inter-firm cooperation. "vertical" (suppliers and customers). In many cases. In Britain. the public support of large firm investments is associated with conditions for local procurement. Purchasing and specification policies by public institutions and large private firms can have a role in promoting (or constraining) the diffusion of technologies. which then may require supplier upgrading programs. Procurement policies may generate concerns related to free trade. The efforts seek to resolve common problems and share information and learning. achieve scale economies in service provision and technology deployment.standard measures to document quality. equity or near-equity investments.  Procurement. A series of new programs have sponsored different forms of inter-firm collaboration to promote technology diffusion. In the United States. Other mechanisms are loan guaranties (often associated with third-party lending institutions). or interest write-downs.

The New England Supplier Institute (Boston. The Advanced Technology Development Center at Georgia Institute of Technology encourages faculty to spin-off technologies through new start-up companies and provides space and services to new firms located adjacent to the campus. [16] Regional or sector cluster measures can involve strengthening industrial associations. Levels of communication and dialogue between technology developers and users and among users. and strengthening links between users.  Regional or sectoral cluster measures. governments have recognized the need to strengthen organizational capabilities and linkages within particular regions and industrial sectors. technology demonstration. comprising of meeting. or they may be industrydriven initiatives. and skilled employees.five or more companies identify common problems or needs and develop collaborative R&D projects. a Baden-Wurttemburg Future Commission has promoted a "dialogue-oriented" approach to policy. .  Facilities for technology transfer. promoting forums of stakeholders. and other aspects of "social capital" have been shown to be extremely important in the diffusion of technology. training. Centers give a visible physical presence to technology diffusion policies and house many of the activities already described. These centers often extend the capabilities of existing research facilities. In addition to building physical facilities. SPRINT and other more recent European Union projects have supported cross-country (EU) interfirm collaboration. Local governments in Japan have also established new buildings for information exchange and diffusion for area small firms. Many countries have invested in physical infrastructure efforts to establish technology incubators and technology parks. labor-management collaboration. a complex which accommodates and assists new start-up technology firms. such as information provision. and access to new equipment. service providers. For example. building collaborative technology consortia. institutional credibility and leadership. and exhibition facilities. including the Kanagwa Science Park. Numerous new technology incubator facilities have been sponsored in Japan. in Germany. These aim to improve links between technology developers and users through physical proximity. allowing shared access to facilities and equipment. and software. Japan has launched a technology fusion program where groups of about 30 small companies work with local brokers and technology centers to commercial new product technologies. A large number of applied technology centers and other facilities to promote technology transfer have been established. and complementary public and private assets (such as banks or training institutions). involving all the main actors in the process of industrial and technological change. for example when associated with universities. expertise. computers. developing leadership strategies and shared visions. USA) brings together small and large firms within specific industries to address share problems and pursue best practice manufacturing and quality initiatives.

statistics. It is essential for each group member to clearly understand the problem so that all energy will be focused in the same direction. SEVEN STEPS TO PROBLEM SOLVING: 1. hearsay. and then write down where you want to be after the problem has been resolved. Remember. A typical technology promotion measure is the offering of tax incentives or favorable depreciation schedules to enterprises that invest in new technology. goals. Measures to ease regulatory burdens are also common. 4. and tax policy. Hard Data Includes: Facts. Macro-policy measures. check sheets. the cost of capital. A good way to define the problem is to write down a concise statement which summarizes the problem. brainstorming and focus groups. technical experiments. It is important to avoid including any "implied cause" or "implied solution" in the problem statement. it is relatively easy to decide what the goal will be. time factors. in the environmental sphere) can promote introduction of new environmental technologies. This includes factors such as business cycle stability. A measurable goal will allow the tracking of progress as the problem is solved. new facilities. Writing the statement will ensure that everyone can understand exactly what the problem is. State the Goal : Once the problem is defined. 3. Define and Identify the Problem This first step is critical. labor market policy. The objective is to get as much information about the problem as possible. or in research and development. opinions. statistics. intuition These steps may not always be pleasant. although in some cases tighter regulation (for example. Sometimes information needs to be gathered via various devices to define the problem. Stating the goal provides a focus and direction for the group. 2. questionnaires. Make sure the problem is limited in scope so that it is small enough to realistically tackle and solve. personality conflicts. human factors. history. ask the following:  Is the problem stated objectively using only the facts? . Soft Data Includes: Feelings. These devices may include: Interviews. frustrations. a problem well stated is a problem half solved. It may be helpful to divide the symptoms of the problem into hard and soft data. intellectual property protection. Develop a Problem Statement It is essential to develop an objective statement which clearly describes the current condition your group wishes to change. but after "venting" group participants may feel that the air has finally cleared and members can be more rational and cooperative. The overall economic and social environment has important impacts on technology diffusion.Considerations : When defining the problem. environmental regulation. attitudes. behaviors.

3. Techniques Used in Solving Problems: These idea generation techniques are broken down into easy-tofollow steps that will help keep your group organized and on the topic at hand. instead of evaluating and criticizing ideas. Brainstorming : Brainstorming is a problem solving approach designed to help a group generate several creative solutions to a problem. but take the time to look through them anyway.     Is the scope of the problem limited enough for the group to handle? Will all who read it understand the same meaning of the problem? Does the statement include "implied causes" or "implied solutions?" Has the "desired state" been described in measurable terms? Do you have a target date identified 5. When the group agrees that every course of action on the list will be considered. We are basically giving you step-by-step instructions on how to accomplish each technique with ease and success. Using a variety of creative techniques. they will feel some direct ownership in the decision making process. an advertising executive who felt the need for a problem solving technique that. You may already be familiar with some of these topics. Think about how the issue affects others. would focus on developing imaginative and innovative solutions. Analyze the Problem: In this stage of problem solving. This may help put the group in the mood of generating consensus later in the decision making process. Delphi Methods Characteristics  Not a group decision technique. Go to the library or develop a survey to gather the necessary information. It is essential to spend some time researching the problem. Asking each group member for input ensures that all viewpoints will be considered. Try to view the problem from a variety of viewpoints. . IDENTIFYING POSSIBLE SOLUTIONS: Identifying possible solutions to the problem is sometimes referred to as finding "Optional Solutions" because the goal is to complete a list of all conceivable alternatives to the problem. Do not make the mistake of assuming you know what is causing the problem without an effort to fully investigate the problem you have defined. The information you will find is valuable to your group's success. questions should be asked and information gathered and sifted. not just how it affects you. It was first developed by Alex Osborn. group participants create an extensive list of possible solutions.

compiling a master list. so long as we remember that they don't constitute a means of proof. . Often used to analyze people's interests and values. As by definition. Helps the group define itself by creating symbols that are meaningful and that help determine its values. asking them to list their solutions.  A group's identity converges through these shared fantasies. circulating this master list to all participants.  Enables a group to discuss indirectly matters that might be too painful or difficult to bring out into the open. The list with comments is then circulate to the participants.  Good for when time and distance constraints make it difficult for group members to meet. Metaphorical Thinking : A metaphor is a thinking technique connecting two different universes of meaning. and be aware of the metaphors you use. Latent theme is the underlying theme (what the group members are really thinking about). Fantasy Chaining Characteristics    Manifest theme is what the fantasy chain is about at the surface level. Universities. Excessive logical thinking can stifle the creative process. and asks them to comment in writing on each item on the list. Focus Groups    Encourages unstructured thoughts about a given topic. Metaphors are wonderful. The key to metaphorical thinking is similarity. each other. Involves presenting a problem or an issue to the appropriate individuals. and political candidates use focus groups to understand how others perceive their strengths and weaknesses. large corporations. Effective way in which groups create their shared images of the world.   Helps a group deal with emotionally "heavy" information. and what they are about as a group. The procedure is continued until a decision is reached. so use metaphors as a way of thinking differently about something. Make and look at metaphors in your thinking. a metaphor must break down at some point.

what is to be done. but you can and should prepare for potential kinks by having a contingency plan. members who select the solution should clearly explain why they selected it to the ones who will implement it. Most times these circumstances cannot be prevented. or must be changed midstream because of something unforeseen. and how. State The Case Briefly What Decisions Have to Be Made? Specify Feasible Alternatives Identify Morally Significant Factors in Each Alternative Develop an Action Plan An action plan is a chart that lists the tasks that need to be done and identifies who will be responsible for each. 7. If this is the case. Some suggested monitoring techniques are:     Group meetings Customer/user interviews Surveys and written questionnaires Quality control spot checks . This monitoring should take place regularly until all tasks are completed.Even the best of plans get stalled. Implement the Solution Sometimes the groups who choose the solution are not the ones who will implement it. It is much more productive to divide it into sequential tasks which act as measurable steps toward the solution. when and what action is necessary. Monitoring A designated member of the group should monitor whether or not specific tasks are being performed or short-term targets are being achieved as planned. be sure to include a timeline. Having such a plan will keep the momentum going instead of having to stop and figure out what to do when an unplanned event occurs. sidetracked. When dividing the solution into tasks. Develop Contingency Plans The best laid plans of mice and men.4. SELECTING THE BEST SOLUTIONS Six Steps to Decision Making Define and Identify The Problem . and who will do it. where to start. Showing that the problem solving process was an organized and orderly process will convince others that the solution is valid. Divide the Solution Into Sequential Tasks Looking at your solution as one task may seem too great an undertaking.

which. and After Arrival. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability. have no faith in the system or in the ability of leaders to turn the organization around.well. employees will look towards the leaders for a number of things. S l o g g i n g through the Swamp.    Audit Checkpoints on action plan Personal inspection of all work Budget controls the Role of Leadership in Change Management When change is imposed (as in downsizing scenarios). must labor un der the weight of employees who have given up. e m p l o y e e s l e a r n t h a t l e a d e r s w i l l a c t indecipherable ways and in ways that do not seem to be in anyone's best interests. employees expect nothing positive. Leadership before. employees will perceive leadership as supportive. and regular. W e c a n c a l l t h e s e p r e p a r i n g f o r t h e J o u r n e y . concerned a n d c o m m i t t e d t o t h e i r w e l f a r e .. Poor leadership means an absence of hope. l e a d . e m p l o y e e s w i l l e x p e c t e f f e c t i v e a n d s e n s i b l e p l a n n i n g . The existence of this trust. results in an organization becoming completely nonfunctioning. I f y o u a r e t o m a n a g e c h a n g e effectively. I n o r g a n i z a t i o n s c h a r a c t e r i z e d b y p o o r l e a d e r s h i p . you need to be aware that there are three distinct ti mes zones where l e a d e r s h i p i s i m p o r t a n t . During drastic change times. The Role of Leadership In an organization where there is faith in the abilit ies of formal leaders. Also during these times of change. The best way to summarize is that there is a climate of trust between leader and the rest of the team. clearly the most important determinant of "getting through the swamp". if allowed to go on for too long. but more importantly. and that makes coping with drastic change much easier. is the ability of leadership to. during and after change implementation is the .. a n d c r e d i b i l i t y o f s e n i o r a n d m i d d l e m a n a g e m e n t . The organization must deal with the practical impact of unpleasant change. competence. bring s hape for better times in the future. c o n f i d e n t a n d e f f e c t i v e decisionmaking. w h i l e a t t h e s a m e t i m e r e c o g n i z i n g t h a t t o u g h decisions need to be made. In a climate of distrust. complete communication that are timely. We will look more carefully at each of these.

but here we are talking about the period w h e r e t h e i n i t i a l i n s t a b i l i t y o f m a s s i v e c h a n g e h a s b e e n r e d u c e d . Prepare For the Journey It would be a mistake to assume that preparing for the journey takes place only after the destination has been defined or chosen. characterized by confusion. Much like healthy people. we are talking about leading in a way that lays the foundation or g r o u n d w o r k f o r A N Y c h a n g e s t h a t m a y o c c u r i n t h e f u t u r e . organization that are healthy in the first place are better able to deal with change. w i t h e m p l o y e e s g r i e v i n g f o r w h a t i s l o s t a n d initially unable to look to the future. the feelings and confusion of employees must be acknowledged and validated. After Arrival In a sense you never completely arrive. A key part of leadership in this phase knows when to focus on the pain. and lack of clarity a bout direction and mandate. by the time you have to deal with difficult changes. effective leaders need to focus on two things. fear. loss of direction. Focusing only on the new vision may result in the perception that the leader is out of touch. cold and uncaring. Focusing only on feelings. During this middle period the organization is the most unstable. P r e p a r i n g i s a b o u t building resources. the period from the announcement of change through the installation of the change. the leader must work with employees to begin creating a new vision of the altered workplace. who are better able to cope with infection or disease than unhealthy people. may result in wallowing. During this period. That is why it is necessary to begin the movement into the new ways or situations. and when to focus on building and moving into the future. First. Slogging Through the Swamp Leaders play a critical role during change impl ementation.key to getting through the swamp. P e o p l e h a v e become . by building healthy organizations in the first place. It c a n b e a p e r i o d o f e m o t i o n a l i s m . it may be too late. When we talk about preparing for the change journey. Unfortunately. reduced productivity. Second. As a leader you need to establish credibility and a track record of effective decision making. and helping employees to understand the direction of the future. so that there is trust in your ability to figure out what is necessary to bring the organization through. if h aven't established a track record of effective leadership.

paradoxically. Thus. before he can do it. By developing one's thinking abilities it is possible to transform one's aggressive tendencies.he should imagine it. All creations-.they are actually the two sides of the same coin. It has been found by Dr. Conclusion Playing a leadership role in the three phases is not easy.less emotional. In other words. can become successful. but as an employee yourself.Defined Introduction: Thinking is the highest mental activity present in man. This is an ideal time for leaders to introduce positive new change. The evolution of culture. and your role in it. mandate and ways of doing things. thinking is a tool for adapting ourselves to the physical and social environment in which we are in.whether artistic. For a man to do something. Thought and action are inseparable . Not only do you have a responsibility to lead. can attain emotional. . s u c h a s examination of unwieldy procedures or Total Quality Management. literal or scientific --first occur in the creator's mind before it is actually given life in the real world. you have to deal with your own reactions to the change. literature. social and economic maturity and so on. and more stable. The Purpose of Thinking: The purpose of thinking. their ill-temper and aggressive tendencies reduced significantly. All our deliberate action starts from our deliberate thinking. are now more open to locking in to the new directions. Thinking and Lateral Thinking. science and technology are all the results of thinking. art. bad temper and other negative tendencies creatively and constructively. and with effective leadership during the previous phases. he should first see it in his mind's eye -. He has developed many useful techniques for training thinking skills. think about it first. By developing one's thinking skills one can make achievements. Can We Improve Our Thinking Ability? Dr. thinking starts with a problem and ends in a solution. All human achievements and progress are simply the products of thought. is to arrive at a state where thinking is no more necessary at all. Edward de Bono says that thinking CAN be improved just like any skill because thinking according to him is a skill.Edward de Bono that when school students were taught to think effectively. can shine in social life. Why Should We Improve Our Thinking Skills: The benefits of developing thinking ability are manifold.

Clinical Psychologists have also found that those who have neuroses are poor thinkers compared to normals. they do not have ready-made-answers (i. Misconceptions Regarding Thinking Misconception No.3: IQ and thinking ability are the same. Since reasoning. problem solving and creative thinking. Fact: Actually. This is because they do not have an inflated ego that demands cent percent correct answers or success in all endeavors. book-answers) and so are forced to explore. Misconception No.1: The present education system develops and enhances thinking and so the more educated you are the better thinker you are.e. Thus high IQ is actually a blockage to creative thinking. those who have lower IQ have only low thinking abilities. our present education system is so information oriented that it gives ready-made answers. Fact: It is true that those who have greater thinking ability. It has also been found that those who have average IQ can become better thinkers. But this does not mean that all those who have high IQ are good thinkers.2: Less Educated or Uneducated can never become good thinkers. Usually high IQ people use their thinking skills for logical thinking. argument. problem solving are given over importance a need to become correct and successful all the time is developed in the student. education even destroys creative thinking abilities by its over emphasis on logical thnking and critical thinking which are relatively lower types of human thinking. On the contrary. Thus. experiment and to experience. They very rarely use creative thinking. have high IQ. education suppresses free thinking. Moreover. less educated display higher abilities in creative thinking. experiment and experience things themselves. Creative thinking has almost no place in current education. Misconception No. Neurotics scored significantly lower scores in decision making. This empowers them to go through less explored answers and even find original answers. This kills the student's natural tendency to explore. as a rule. the better thinking ability one has. the highly educated person ends up having lesser ability to think creatively although he/she may have a lot of information at his/her disposal and also have admirable abilities in logical and critical thinking. Fact: Actually.. they showed a remarkable reduction in their neurosis. Again. The more IQ one has. Again. when neurotics were taught to think effectively. critical thinking. arguments. Interestingly. .

Edward de Bono (and also many others) have proved that thinking is a skill that can be enhanced by training and practice. de Bono speaks about two types of thinking -. the thinker becomes very subjective. This will be the one that is the most used and the most tested one. Time Scale Error This is a kind of partialism in thinking in which the thinker sees the problem from a limited timeframe. whereas lateral thinking is low probability thinking. problem solving and creative thinking can be developed and improved. That is. Politicians are the masters in this type of thinking and they use it to their advantage. This blocks creativity.Vertical thinking and Lateral thinking. the thinker examines only one or two factors of the problem and arrives at a premature solution. In fact. 5. Lateral Thinking: Dr. 2. Arrogance and Conceit This error is sometimes called the "Village Venus Effect" because like the villagers who think that the most beautiful girl in the world is the most beautiful girl in their village. Vertical thinking is high probability thinking. 4. 3. before Einstein. I should be right. Errors in Thinking 1. Instead of considering the issue or problem objectively. decision making ability and problem solving ability are inherent and there is very little we can do to develop these." type of reasoning. In the former type. Initial Judgement Here. Thus decision making. For example. the thinker approaches it with prejudice or bias. the thinker selects the most logical solution possible.Misconception No. So. Partialism This error occurs when the thinker observes the problem through one perspective only.4: Thinking ability. Not only individuals but societies and even the whole mankind sometimes fall prey to this error. It can be likened to short-sightedness. the whole scientific community (and thus the whole mankind) believed that time was absolute. Adversary Thinking This is a "you are wrong. Fact: This is the most terrible misconception regarding thinking. Dr. suppose you want to cut a cake or hard boiled . the thinker believes that there is no better solution other than that he has already found. For example.

2. Dr. Divide the Problem into Small Sub-Problems This allows the thinker to perceive the problem in detail because he is able to approach each subproblem individually and thus he is able to consider more parameters. you can use a twine. Basic Nature of Lateral Thinking • • Concerned with changing patterns In a self-maximizing system with a memory the arrangement of information must always be less than the best possible arrangement • • Both an attitude and a method of using information Never a judgment Benefits of Lateral Thinking • • • • • • Constructively challenge the status quo to enable new ideas to surface Find and build on the concept behind an idea to create more ideas Solve problems in ways that don‘t initially come to mind Use alternatives to liberate and harness your creative energy Turn problems into opportunities Select the best alternate ideas and implement them . He also says that it is possible to improve lateral thinking ( and thus creativity) by deliberate application and practice of the techniques he has devised. Move Attention from One Part of the Problem to Another Part When we move our attention from one part of the problem to another.egg into two. He gives two main techniques for improving our problem solving by lateral thinking: 1. it is possible to view the problem from a new perspective. But there are other less probable ways: for example. The former is an example of a solution arrived at Vertical thinking while the later is an example of a solution arrived at using Lateral thinking. Using a knife or a sharp blade to cut it is the most probable and most logical solution. de Bono argues that creativity comes from Lateral thinking. This would in turn help you solve the problem easily.

very few works of creative excellence are produced with a single stroke of brilliance or in a frenzy of rapid activity. the new ones slightly improved over the old ones. Some creative ideas are astonishing and brilliant. practical ideas that no one seems to have thought of yet. creativity has too often been suppressed through education. Often all that's needed to be creative is to make a commitment to creativity and to take the time for it. This is the method of incremental improvement. As we will see below. a flexibility of outlook. improvements are made. like chocolate-covered strawberries. A simple definition is that creativity is the ability to imagine or invent something new. We are socialized into accepting only a small number of permitted or normal things. very. With each new model. by making gradual alterations and refinements to their works. rather than in something completely new. For example. A Process. like peanut butter and banana sandwiches. everyone has substantial creative ability. for example. or chocolate-covered prunes. so that over time. In adults. comfort. look at the history of the automobile or any product of technological progress. improvements in economy. Believe it or not. An Attitude. The creative person knows that there is always room for improvement. the habit of enjoying the good. while looking for ways to improve it. Making something a little better here. Much closer to the real truth are the stories of companies who had to take the invention away from the inventor in order to market it because the inventor would have kept on tweaking it and fiddling with it. always trying to make it a little better. but the ability to generate new ideas by combining. Creative people work hard and continually to improve ideas and solutions. New ideas stem from other ideas. a little better there gradually makes it something a lot better--even entirely different from the original. Here the creativity lies in the refinement. Many of the very sophisticated things we enjoy today developed through a long period of constant incrementation. the step-by-step improvement. Contrary to the mythology surrounding creativity. or reapplying existing ideas. a willingness to play with ideas and possibilities. good. new solutions from previous ones. creativity is not the ability to create out of nothing (only God can do that). . changing.What is Creativity? An Ability. Creativity is also an attitude: the ability to accept change and newness. but it is still there and can be reawakened. The creative person realizes that there are other possibilities. Creative Methods Evolution. Just look at how creative children are. and durability take place. while others are just simple. Each new model builds upon the collective creativity of previous models.

Every problem has only one solution (or one right answer). expectations and assumptions and discover how something can be reapplied. and most problems can be solved in any number of ways. The key is to see beyond the previous or stated applications for some idea. two or more existing ideas are combined into a third. where people go first to eat and then to see a play or other entertainment. or thing and to see what other application is possible. marker. The screws are so much better that they can often be driven in without pilot holes. For example. printer. Myths about Creative Thinking and Problem Solving 1. typewriter. With this method. This is sometimes called creative insight. the dinner theater. The points are self tapping. ball point. Changing Direction. someone noticed that a lot of people on dates went first to dinner and then to the theater. solution. a paperclip can be used as a tiny screwdriver if filed down. Another creative person might see in the same transmission the necessary gears for a multi-speed hot walker for his horse. The goal of problem solving is to solve the problem. The shanks are now threaded all the way up on lengths up to two inches. paint can be used as a kind of glue to prevent screws from loosening in machinery. Go beyond labels. general purpose spray cleaners can be used to kill ants. Unfixate. printing press? . using a power drill. Why not combine these two events into one? Thus. There may be other solutions thought of by other people. dishwashing detergents can be used to remove the DNA from bacteria in a lab. They have sharper threads which are angled more steeply for faster penetration and better holding. One creative person might go to the junkyard and see art in an old model T transmission. If you discover a solution that works. Many creative breakthroughs occur when attention is shifted from one angle of a problem to another.Another example would be the improvement of the common wood screw by what are now commonly called drywall screws. pencil. but that doesn't make your solution wrong. He hooks it to some poles and a motor and puts it in his corral. Synthesis. What is THE solution to putting words on paper? Fountain pen. He paints it up and puts it in his living room. remove prejudices. For example. Look at something old in a new way. one useful for blind people or freeway commuters. new idea. Reapplication. Xerox machine. it is a good solution. Combining the ideas of a magazine and an audio tape gives the idea of a magazine you can listen to.

Look at the history of any solution set and you'll see that improvements. beliefs. problems. Even many problems that seem to require a technological solution can be addressed in other ways. There are many successful techniques for stimulating idea generation. Positive Attitudes for Creativity 1. This is not a whining." Knowledge is enjoyable and often useful in strange and unexpected ways." 4. Ideas either come or they don't. enthusiastic discontent. the jet. Constructive discontent. but the ability to see a need for improvement and to propose a method of making that improvement. Only a few problems require complex technological solutions. A belief that most problems can be solved. 2. Knowledge does not require a reason. even Star Trek type beams? 3. reflecting the thought. Curiosity.2. . Creative people want to know things--all kinds of things-. who is likely to respond. new solutions. Challenge. Many assumptions. a new path. the creative thinker believes that something can always be done to eliminate or help alleviate almost every problem. turn out to be quite necessary and solid. but many others have been assumed unnecessarily. the car. of course. griping kind of discontent. the cart. a new solution. new right answers. the wagon. We will be discussing and applying them. Constructive discontent is a positive. Creative answers are complex technologically. Problems are solved by a commitment of time and energy. the airplane. few things are impossible. proposals. 4. Nothing will help. and where this commitment is present. "Because I don't know the answer. Most problems you'll meet with require only a thoughtful solution requiring personal action and perhaps a few simple tools.just to know them. and statements. The best answer/solution/method has already been found. hovercraft. What is the solution to human transportation? The ox or horse. the train. By faith at first and by experience later on. are always being found. the SST? Is that the best and last? What about pneumatic tubes. The question. I know a way to make that better. Curious people like to identify and challenge the assumptions behind ideas. 3. and in breaking out of those assumptions often comes a new idea. "Why do you want to know that?" seems strange to the creative person. "Hey.

 3. saner. When you can identify the difference between what you have and what you want. A problem is an opportunity for improvement. Any new awareness you have that allows you to see possibilities for improvement brings a "problem" for you to solve. you have defined your problem and can aim toward your goal. Train yourself to respond to problems with enthusiasm and eagerness.  2. rising to the opportunity to show your stuff. Isn't it interesting here that hope produces problems? The belief that your hopes . When you know where you are and where you want to be. A problem can result from new knowledge or thinking. This is why the most creative people are "problem seekers" rather than "problem avoiders.Characteristics of the Creative Person            curious seeks problems enjoys challenge optimistic able to suspend judgment comfortable with imagination sees problems as opportunities sees problems as interesting problems are emotionally acceptable challenges assumptions doesn't give up easily: perseveres. the stroke of luck. more confident person who feels (and is) much more in control of life. a chance to get out of the rut of the everyday and make yourself or some situation better. you have a problem to solve in getting to your destination. works hard What is a Problem?  1. A problem can be a real break. A problem is the difference between your current state and your goal state. Note that problems need not arrive as a result of external factors or bad events. opportunity knocking. A problem results from the recognition of a present imperfect and the belief in the possibility of a better future. The solution can and should be fun and exciting as you think over the various possible solution paths you might choose."  Developing a positive attitude toward problems can transform you into a happier. and you will be amazed at the result.

based on experimentation and/or scientific theory. organization. The possibilities inherent in the problem. through its domineering influence over industrial productivity.  There are two basic approaches to solving problems. technology and other business assets by optimizing the relationships between the technology functions of the business enterprise. This necessitates effective management of technology . development and manufacturing in order to meet the operational goals of the business unit effectively. As we detail these approaches and their forms. sometimes the goal will be only to treat the effects of the problem. However. methods and processes by which resources are actually transformed by humans to meet their wants. Ferré (1988) has defined technology as ―practical implementations of intelligence‖. which is embodied in productive skills. Each of these approaches has three basic forms. Your hopes challenge you. together with the ambitiousness. respectively. which inter alia aims at planning and developing the technological capabilities of an organization or a nation. resources. It includes managing the totality of the technology operations from concept commercialization‖. let's use the problem of a leaking water tank to illustrate each one. efficiently and economically. technology has emerged as the most important resource that contributes directly to socio. .economic development. ―Managing technology is a method of operation that leverages human resources. Sometimes the goal will be to eliminate the problem entirely.at both national and firm levels. techniques.can be achieved will give you the will to aim toward the better future. will help shape the goals. one where the cause or source of the problem is attacked and the other where the effects or symptoms of the problem are attacked. Technology Management (TM). Hence. Further. as a ‗strategic resource‘. Gendron (1977) has provided a more comprehensive definition:  ―A technology is any systematized practical knowledge. What is a Solution?  solution as the management of a problem in a way that successfully meets the goals established for treating it. through TM embraces several interconnected issues such as: technology policy. It is the process of integrating science. and challenge is another definition of a problem. we can call these the stop it and the mop it approaches. has now occupied the centre stage of decision-making. engineering and managing with research. The role of technology in fostering economic growth of nations and enhancing their industrial competitiveness has been widely recognized.   TECHNOLOGY INTRODUCTION : The word ‗technology‘ has a wider connotation and refers to the collection of production possibilities. technology is viewed from various perspectives: As an ‗engine for economic development‘. For ease of remembering. and as a ‗competitive weapon‘. or machinery‖. and values of the problem solver.

However.  1) Cutting-edge: This stage refers to the birth of a new technology. A technology typically evolves through the following stages in its life cycle‘. manufacturing. but sophisticated. Although basic research forms a major part of the effort in this stage. perhaps. human resource management in terms of innovative capabilities.  2) State-of-the-Art: This stage in a TLC begins with the deployment of cutting. Hence. process technology and product technology and their continuing improvement.  Technology Life Cycle (Tlc) The nature of a technology and its implications to firms have been observed to undergo perceptible changes over its life span. Nevertheless. but have no desire to develop the technical expertise needed to . such as engineering. technologyinduced as well as market-oriented Research and Development (R&D). Hence. The production process will be usually nonstandard. technical specialists are. technology transfer. development and manufacturing in order to meet the operational goals of the business unit effectively. The market witnesses a high rate of product innovations and as a result a great product diversity can be observed. Many other important functions are carried out with the help of hired consultants or agencies. flexibility and contribution. It is the process of integrating science. engineering and managing with research. finance and administration may have begun formally while others may still be embryonic at this stage. The primary entrepreneur(s). technology and other business assets by optimizing the relationships between the technology functions of the business enterprise. firms seldom do it without a specific application in mind. and technology project management. Some of the functions.technological forecasting and assessment. the need for financial support for R&D and for testing prototypes is also a pressing concem at this stage. the target market. Although it is correct to view a TLC as a continuum. ―Managing technology is a method of operation that leverages human resources. ideal for marketing the technology. it is more convenient to consider it as a series of discrete stages for the purpose of better understanding and analysis.  3) Advanced: The gradual standardization of technological characteristics leads to rapid market expansion. is on its Research and Development (R&D) to a focus of demonstrable form. and the feasibility and viability of R&D at this stage are also uncertain. Hence.edge technology to solve customers‘ problems. technology strategy. It includes managing the totality of the technology operations from concept through commercialization‖. the scope of such an application may not be clearly known to the firm and the related knowledge may still be abstract. but only ineffectively and inefficiently. The market largely consists of less sophisticated customers who seek all the benefits of state-of-the-art technology. the state-of-the-art technology can respond easily to the varied market requirements. The customer base state-of-the art technology is usually small. efficiently and economically. here.

gradually. communications. This may help the firm to maintain and improve upon growth momentum and market position.  5) Decline: During this stage. At this stage. The potential profits attract a Large number of competitors and hence. the strategic thrust shifts to efficient and economic production for minimizing costs. including: Innovation strategy helps to focus attention on . Parallelly. organization.  4) Mainstream / Mature: As technology enters this stage. a part of the production system is likely to be automated. However. it may not be easy for the new technology to wipe out the older technology one and pervade the market. It entails judgement about which kinds of innovation processes (discussed in Chapter 3) are most appropriate for the firm‘s circumstances and ambitions. Its crafting is supported by a number of innovative capabilities that steer the configura . and division of labour is more pronounced. the scope for further improvement of the technology diminishes rapidly. In this stage. segmentation. Hence. results in the older technology giving way to the new one gradually. and further standardization are bound to occur. the technology is no longer of the hi-tech variety available with only a few suppliers. This may be achieved by huge capital investments or shifting the production base to the Third world.understand the technology. A market shakeout. simple model of four interrelated elements involved in innovation strategy. the scope for further product innovations reduces and process technology becomes the target of innovative effort of firms. An innovation strategy identifies the technologies and markets the firm should best develop and exploit to create and capture value. The overlap between the above successive stages of a TLC continuous process rather than a set of discrete stages.tion and reconfiguration of a firm‘s resources. even the production process gets so well integrated that the possibility of any major changes in product or process technological elements will be limited and product differentiation becomes difficult. coupled with the functional superiority of the next generation technology. financial and administrative crises are also likely. and culture. The increasing marginal cost of its improvement. the firm will be better managed by a professional management team than entrepreneur/owner. The organization will have grown in size and will call for more formal structures. A firm‘s survival in the market beyond this stage indicates its relatively efficient operations. When the production costs also cease to offer comparative advantage. However. However. It does so within the limits of the resources available to the firm to support current and future innovation efforts and its evolving corporate strategy. the competition will shift to customer service. and systems. there is a possibility that the rapidly increasing demand may cause manufacturing and marketing capacity crises which will call for a major transformation in the organization structure. This market calls for professional marketing. makes it a  An innovation strategy guides decisions on how resources are to be used to meet a firm‘s objectives for innovation and thereby deliver value and build competitive advantage.

which. capabilities.operations. and the level of adhesion and trust within them). practices. communities within which the firm operates. It can also contribute significantly to the organization's brand image and brand promise. their innovation processes help them do things in the right ways .R&D. An innovation strategy helps firms decide on the right things to do.andgenerating economic returns through commercialization. craft processes). effectiveness. which can have both positive and negative implications. Organizational culture is possibly the most critical factor determining an organization's capacity. suppliers. particularly those with a large and ever-changing pool of volunteers. When culture is out of alignment with mission. and processes are best developed and deployed to meet corporate objectives.creatingnewproductsandservices. when combined.Subsequent chapters of this book examine the various elements of the innovation process. What originally holds these individuals together is their . Technological resources. it can become a significant liability for the organization. Organizational resources (the routines. and policies within the firm. The reasons why innovation is a strategic management issue is because it is intimately linked to the capacity of the firm to deliver value: BUILDING ORGANIZATIONAL CULTUREThe importance of organizational culture and how it contributes to organizational effectiveness and achievement is well established. core values. and operational strategy. customers. RESOURCES FOR INNOVATION Financial resources and appetite for and tolerance of risk. technological collaboration. including the development and maintenance of supportive networks and communities. knowledge of markets). Networking resources (partners. Marketing resources (ownership and market penetration of brands. Nonprofits generally evolve from a group of people working on a common cause to solve a community problem. Human resources and their capacities for innovation. trademarks). access to lead customers. both physical (plant and equipment) and intellectual (knowledge. patents. and longevity.how these resources. Organizational culture plays an especially critical role in most nonprofits. INNOVATION PROCESSES Innovation strategy involves deciding upon the most appropriate innovation processes for the firm‘s context and targets—whether these processes are relatively simple or complex(seethediscussionlaterandChapter3onthevariousgenerationsofinnovation process). procedures.

and why the group still exists today. the transformation of the organization as a whole is only achieved through the change and growth that takes place within each member of the group. The organizational culture then becomes an end in itself rather than the means. In reality. Is it an organization with a mission-driven contemporary purpose and strategic focus supported by a healthy organizational culture? Or have once-effective human systems and their procedures. people need a deep understanding of why the organization was created. a conversation about a shared vision marks the beginning of the process. rituals. If the culture within an organization fails to evolve and change as rapidly as the social conditions in the community and society. they invest in their own vision. the task becomes one of transforming the organization to revitalize the culture. goals. collaborative learning. These predictable and promoted behaviors and the written artifacts created by the groups as a whole gradually become the organizational culture. Reaching a shared vision can only be accomplished with a language and process that promotes inclusion and connection of everyone concerned. Human systems naturally evolve from habits of behavior and thoughts based on these shared assumptions and values. such transformation and enhancement is best accomplished through a process of shared. the organization's culture often loses sight of the commitment or purpose that brought people together in the first place. Types of organization culture . People do not invest in the vision of a current or past leader.shared commitment or purpose and the common underlying assumptions and values about what they want to accomplish and how they hope to accomplish it. In my own experience. what brought its members together in the first place. To keep organizational culture vital and relevant. Conversation is the core process of shared learning in most work settings and is the starting point to building individual human and organizational capacity simultaneously. and strategies. As basic as it sounds. and bureaucracies--the organizational culture itself--replaced shared goals and values to become the dominant source of power and energy in the organization? When the organizational culture strays away from its original mission.

. sharing their resources (assets) and expertise to establish a business entity and share the profits. It is an idea that has led to creation of international bodies where member countries cooperate with each other to achieve the objectives for which the body is set up. Control of the enterprise is also joint and no single party controls the JV. Collaboration Collaboration is best exemplified in the area of trade where two countries benefit by collaborating with each other as their citizens get products that are not naturally produced in their countries. However. partnership. collaboration is not limited to material exchange. and countries collaborate for specific issues to arrive at a solution or to lead to better. There are countries lacking technologies and services in certain areas and these countries benefit a lot when they decide to collaborate with countries possessing them. A joint venture can be formed between local as well as international parties. JV is not a type of entity and it can take shape of a corporation. Joint venture allows a foreign party to get entry into another country‘s markets easily at the same time allowing it to use the resources of the local partner. friendly relations. Joint venture is a special type of collaboration and there are many who cannot differentiate between the two. institutes collaborate to help in spread of education and research. Writers collaborate to finalize the script of a movie. and so on. A joint venture is described as an agreement between two or more parties who cone together. When a JV is not for a specific project and is for normal business on a continuous basis. a limited liability enterprise.END TERM EXTRA QUESTIONS: Joint Venture vs Collaboration Collaboration is a concept that is responsible for coming together of people to work towards a shared goal or objective. Collaboration started as soon as people started to communicate with each other through words or written language. Difference Between Joint Venture and Collaboration • Collaboration is a generic term that describes coming together of two or more entities for mutual benefit • Joint Venture is a specific entity that describes the purpose for which two or more parties come together for business • JV allows a party to gain easy entry into another country and also to use resources of the local partner in the venture. it can be considered as a type of partnership. This article will highlight the differences between the two concepts – Joint Venture and Collaboration. Joint Venture A joint venture is a particular example of collaboration that is formed especially for the purpose of business. two persons collaborate to start a new business.

The skepticism can be stated quite bluntly or couched in polite words of support. Still. The reality is that most early claims of encouraging innovation and innovativeness are met with a hefty dose of skepticism. followed by inaction. Also. the organization reciprocates by reward rather than retribution. it was worth it! Hopefully. It is the third vital leg of innovation.• JV is characterized by joint control and no single party has outright control over the business entity. it is necessary to keep going at all times. the further it is from the original entrepreneurship. one must act in two fronts – creating the right incentives and removing the biggest blocks to innovation. How do you build and sustain a culture and climate for innovation and entrepreneurship? Practice.‖ This is a sensitive turning point. must learn to repeatedly reinvent themselves. with patience. depending on the nature and maturity of the enterprise. repetition and leadership. it is hard to win back. practice. Organizations. Such organizations. I am not sure which is more frustrating to the goals and efforts of the innovation manager. As in life. Examples of good practices on giving time to innovators include these: . In this situation. persistence and discipline. are mostly populated by managers (albeit excellent professionals) and no longer with leaders. invoke the bully pulpit and ultimately create ―a willing suspension of disbelief. by example. an ingredient that you may not expect is courage. build trust. like their people. the innovation manager must lead by example. Particularly in risk-averse organizations or environments. once trust is lost. Creating a culture of entrepreneurship is in fact quite a challenge. Giving innovators the time and space required. team or leader taking a strong personal risk. disruptive or breakthrough innovations without an individual. and by so doing firmly implants the first vestiges of innovation culture. The role of personal and organizational courage cannot be underestimated. the culture of entrepreneurship and risk taking can only be driven top down. It is hard to think of successful. this is critical – some foolhardy soul must take the first step. and not be set in permanent molds or cast in stone. To build and sustain a culture and climate supportive of innovation. providing a transparency of process that instills confidence. the culture of rewards has to be modified to match the desired culture of entrepreneurship. The right incentives can be summarized in three main elements: 1. The more mature and well established a business is. and trust that even if the effort ultimately fails. practice. Succeed or fail. Finally. driven by the passion of his or her idea. giving them a chance to be creative and bold.

who will bring new and fresh insights. A real support to conversation is an open exchange of ideas.  Supporting alternative training programs on competencies and skills. away from the routine activities required for the main business. and will help you to build up an exciting innovation culture. Fostering connections and relationships. Bring women.  Promoting lots of activities away from the office. 3. Leaders allow culture. instead of those who prevent them Give too little resources to new ideas just to say you are trying them Punish failure instead of celebrating that the organization learned a new way that something won‘t work        . young people. away from the traditional technical and administrative training. If you are a leader. Providing the right mix of diverse people on the innovation teams. and culture is maintained due to a system of positive and negative reinforcements. Giving the employees a small but fixed amount of weekly time to work on alternative and pet projects. here are some negative reinforcements you can employ if you really want to kill innovation:   Make sure everyone knows that you know everything Organize your people into silos Call lots of meetings just because it‘s time to meet Always focus on how you succeeded in the past as a way to solve the future issues Make sure the near-term budget is the most important thing to talk about Take highly energetic people and make them work on mundane tasks Reward those who can put out fires. people from the periphery of the organization and other outsiders onto your innovation team. How do you build the culture of innovation? It has to come from the leaders of the organization. close to final customers and consumers. 2.

Breakthrough Management Group has a process by which a group of people come together in a sort of kaizen event — a structured. focused event designed around ideas — to generate new ideas. if the opportunity is actively thwarted — people will pay attention and stop trying. The most persistent. If you want innovative behavior. unless there is bad news to share or you want to wield the ―hammer‖ to get things done  Require a complete business rationale write up for new ideas Perhaps the most important lever for creating and nurturing an innovative culture is the actions of the CEO and his or her team. It‘s energizing. As an example. if you don‘t see enough positive change. People within organizations emulate and play to those who succeed. the social change adage. at least not on a large scale and not in a repeatable manner. Ultimately. Also. It tends to be the management bureaucracy. then start exhibiting it yourself. ―the nine layers of management. But it doesn‘t require a wholesale change in the way . First. then consider moving to a new company. In this context. each with a line item veto‖ that prove to be the greatest obstacle to establishing the right climate. people want to share their ideas. while not all companies can afford to give people 10 percent of their time to explore new ideas. passionate people will either give up or leave and start a new venture.‖ If the CEO‘s team doesn‘t exhibit innovativeness or at least a strong i nterest in entrepreneurial activities. ―The culture of the empire comes down from the home of the Emperor. then it‘s not going to happen. consider taking more of an event-driven approach. companies need to rethink who they are focused on rewarding. The Chinese say. or what one client called. It‘s something every manager and business unit should be doing at least once a year. In general. Lots of innovation can occur at the grassroots. Consider flattening the organization and making it easy for an idea to bypass the chain of command if it doesn‘t have to do with day-to-day operations. Consider rewarding middle managers for allowing a flow of ideas.   Don‘t build innovation into your goals Don‘t kill pet projects that are failing Stay in your office and only meet with your direct reports and peers. ―Be the change you envision‖ provides excellent advice for all leaders. but if it doesn‘t eventually percolate up and receive the support it requires — or worse yet. Life is too short to keep your head down if you truly care about creating the future.

Invention is using objects. Discovery is known as the act of detecting something that already preexists and has been around over a long period of time. New discoveries are believed to be acquired through various senses. etc. Discovery is finding out or figuring out something that preexists. ideas or theories that are already preexisting in order to create a new object. or collaborations that may have taken place. due to carbon dating. discoveries are used in order to advance technology or to given an insight to previous conditions. Discovery could also include forces or other objects that are not solid in nature. ideas. An invention is expected to create a breakthrough in radical science and change the thinking. Discovery means to find. Discovery doesn‘t always have to be intentional and can also be stumbled upon by accident. old fossils and artifacts are excavated in order to see the type of creatures that we may have evolved from or the way a certain civilization lived during that particular time. ideas or theories that are not in existence yet. Inventions are generally patented in order to restrict other people from reproducing the same thing and taking credit for the object. such as gravity. gases. Managers that used to be tasked with figuring out how to do things better should now also be tasked with taking a look — at least once a year — at how they might do things differently. In the same example above. however they are two different words and have different meanings. which are usually merged with preexisting knowledge and actions. Invention is using objects. Discoveries and inventions may seem similar because of something new being revealed. such as gravity. some discoveries are sought after because of questions that arise within a person or a community. Key Difference: Discovery is known as the act of detecting something that already preexists and has been around over a long period of time. which was only after an apple fell on Newton‘s head did he discover the law of gravity. ideas or theories that are not in existence yet. ideas or theories that are already preexisting in order to create a new object. while invention is using objects that preexist to create something new that is first of its kind. In addition to some discoveries being accident. Some discoveries are also fueled by other discoveries.the company works day-to-day. we can only tell the dates of the artifacts and bones. An . The search of answers for these questions usually results in various different types of discoveries. atmosphere. trial and error and alternations are required in order to create the perfect invention. force. For example. figure out or even acknowledge something that has been in nature for a good number of years. Inventions usually require a process where in experimentation. Commonly.

The nomads during the ancient ages decided to settle down resulting in the creation of tools and wheels. Other inventors created technologies related to light bulbs. For example let‘s consider a light bulb (invented by Thomas Edison).invention could also be accidental. Inventions are practically ideas that a person has. products or services with products or services. Inventions could also mean improvement of something that is already in existence but it is now altered with newer features and technologies. Many inventions are also due to discoveries. Invention is also done in order to make lives easier and more feasible. Another example includes docking port for an already existing music player. processes. more efficient. which were then required to build houses and other things. the docking port would be considered as an invention even though the music player was already available. which made it cheaper to produce. where experts claim that in order for invention. These are also considered as inventions. During the time he created the light bulb. innovation is required. where a person might be trying to create something else and ends up creating something completely different and new. it could only be powered for small amounts of time. which he then goes through the process of creating using materials that are already in existence. marketing or unprecedented performance features business model Improves competitiveness within current markets or Creates a dramatic change that transforms existing industries markets or industries. such as the telescope was invented in order to view the discovered planets. where each process that is followed is monitored and noted. longer-lasting and more ecologically friendly. Incremental Innovation Exploits existing technology Low uncertainty Radical Innovation Explores new technology High uncertainty Focuses on cost or feature improvements in existing Focuses on processes. Inventors also keep a proper record of their workings in a notebook or journal. Invention is also considered synonymous with innovation. We have light bulbs today that are safe and use less electricity. or creates new ones .

informal Process Formal. phase-gate model Informal. services. critical events are largely anticipated Formal cross-functional teams Cross-functional networks individuals. flexible model at early stages due to high uncertainties → formal at later stages after uncertainties have been reduced Organizational Structures Cross-functional project team Project starts in R&D → migrates into an incubating organization → transitions into a goal-driven project organization operates within a business unit Resources competencies and Standard resource allocation.Incremental Emphasis Cost or feature improvements in existing products. often in response to discontinuities in the project trajectory Idea Generation & Opportunity Recognition Key Players Occur at the front end. products and/or processes that transform the economies of a business Exploration of new technology Teaching the market about the new technology and learning from the markets how valuable that technology is in that application arena Trajectory Business Case Linear and continuous Detailed plan can be developed at the beginning of the process Sporadic and discontinuous Business model and plan evolves through discovery-based learning Occur sporadically throughout the life cycle. the team has all competencies Creative acquisition of competencies and resources from a variety of internal and external sources Informal at early stages → formal at later required to complete the process Operating Unit Formal involvement from the very . or processes Technology Exploitation technology Prototyping Ironing out wrinkles near the end of the design phase of existing Radical Development of new businesses.

Involvement beginning stages .