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Student Workbook
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Acknowledgement
Innovation and Business Industry Skills Council (IBSA) would like to acknowledge
HASCOM Pty Ltd for their assistance with the development of the original resource for
BSBINN502A.
BSBINN502A writer: Kensington Budgewater (2010)
Revised for BSBINN502 by IBSA (2015)
Copyright and Trade Mark Statement
2015 Innovation and Business Industry Skills Council Ltd
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or otherwise, without written permission from the publisher, Innovation and Business Industry Skills Council Ltd (IBSA).
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Use of this work for purposes other than those indicated above, requires the prior written permission of IBSA. Requests
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(a)
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Published by: Innovation and Business Industry First published: April 2015
Skills Council Ltd
1st edition version: 1
Level 11
Release date: April 2015
176 Wellington Parade
East Melbourne VIC 3002
Phone: +61 3 9815 7000
Fax: +61 3 9815 7001
Email: reception@ibsa.org.au
www.ibsa.org.au
ISBN: 978-1-925123-82-1
Stock code: BSBINN5021W
Table of Contents
Getting Started ....................................................................................................................1
Features of the training program .................................................................................1
Structure of the training program ................................................................................1
Recommended reading ................................................................................................1
Introduction .........................................................................................................................3
Innovation at work ........................................................................................................3
Are you ready to start innovating? ...............................................................................5
Strategic innovation ......................................................................................................5
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Glossary ............................................................................................................................ 64
Appendices ....................................................................................................................... 65
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Student Workbook
Getting Started
Getting Started
Features of the training program
The key features of this program are:
Student Workbook Self-paced learning activities to help you to develop an
understanding of key concepts and terms. The Student Workbook is broken down
into several sections.
Facilitator-led sessions Challenging and interesting learning activities that can be
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completed in the classroom or by distance learning that will help you consolidate
and apply what you have learned in the Student Workbook.
Assessment Tasks Summative assessments where you can apply your new skills
This training program introduces you to the skills and knowledge required to build and
sustain an environment that enables and supports the application of innovative practice.
Specifically, you will develop the skills and knowledge in the following topic areas:
1. Leading by example
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Your facilitator may choose to combine or split sessions. For example, in some cases, this
Training Program may be delivered in two or three sessions, or in others, as many as eight
sessions.
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Recommended reading
Some recommended reading for this unit includes:
Australian Institute for Commercialisation, 2009, Innovation Toolbox, viewed
Techniques for Predictable and Sustainable Organic Growth (2nd edn), John Wiley &
Sons, Hoboken.
Skarzynski, P., Gibson, R, 2008, Innovation to the Core: A Blueprint for
Getting Started
Student Workbook
Please note that any URLs contained in the recommended reading, learning content and
learning activities of this publication were checked for currency during the production
process. Note, however, IBSA cannot vouch for the ongoing currency of URLs.
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Every endeavour has been made to provide a full reference for all web links. Where URLs
are not current we recommend using the reference information provided to search for the
source in your chosen search engine.
Student Workbook
Introduction
Introduction
The goal of this unit is for you to be able to build and sustain an innovative work
environment.
Innovation at work
Innovative businesses encourage innovation at all levels of the business. Employee
innovation, in particular, is now regarded one of the keys to protecting Australian jobs.
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Governments at all levels are aware that Australian workplaces must embed innovation
into their work practices in order to compete. The Productivity Commission states:
Innovation and diffusion of new and better production methods,
and the introduction of new goods and services, are the core
drivers of productivity growth getting more, and more highly
valued, outputs from any level of inputs. 2
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Roughly $4 billion of Whirlpools 2008 $19 billion in revenue results came from their
innovation areas. 3
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For some it may be surprising that innovation can be managed. For many, rules, structure
and discipline may seem counterintuitive to their understanding of innovation. However,
the prevailing view in recent times is not only that innovation can be managed, but that it
must be managed.
The question for businesses is not whether to innovate, but how.
Baumgartner, J., The Corporate Innovation Machine, JPB.COM, Belgium, available online, viewed September
2014, <http://www.jpb.com/creative/innovationMachine.pdf>.
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Roosen, P. and Nakagawa, T., 2008, Innovation 101: Whirlpools Spin on Innovation, IndustryWeek, viewed
September 2014, <http://www.industryweek.com/articles/innovation_101_whirlpools_spin_on_innovation
_16828.aspx>.
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Introduction
Student Workbook
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Kneale, K., 2009, In pictures: the 10 most influential business gurus, Forbes, viewed September 2014,
<http://www.forbes.com/2009/10/13/influential-business-thinkers-leadership-thought-leadersguru_slide_2.html>.
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Student Workbook
Introduction
Strategic innovation
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Palmer and Kaplan (2007) identify seven dimensions of strategic innovation that an
organisation must address if it is to make the breakthrough to strategic innovation. These
are:
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Palmer, D. and Kaplan, S., 2007, A Framework for Strategic Innovation, InnovationPoint, San Francisco,
p. 4, available online, viewed September 2014, <http://www.innovationpoint.com/Strategic%20Innovation%20White%20Paper.pdf>.
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Introduction
Student Workbook
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Student Workbook
Introduction
back on track with the organisational strategy and processes; and things like
customer validation and implementation.
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There are many different models for managed innovation and through this program you
are encouraged to review many of them from a range of industry contexts.
Example: The corporate innovation machine
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Strategic alignment
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Innovation projects, like all workplace projects and activities, must align with
organisational strategies and goals.
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How innovation projects are implemented depends to some degree on the type of
innovation we are talking about.
There are four main types:
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product innovations
process innovations
organisational innovations
marketing innovations.
Introduction
Student Workbook
Both can lead to innovation, but may require different systems to assist with realising
those innovations.
What types of innovations does each example represent?
Which is more concerned with operating costs?
Which is more concerned with business growth?
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Strategic alignment is also essential to ensure engagement of key stakeholders, such as:
management
customers
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You can use the stakeholder mapping template in Appendix 2 to help you to identify
and evaluate stakeholder engagement for an innovation project.
Industry foresight
Student Workbook
Introduction
Consumer/customer insight
What do our customers want?
The phrase the voice of the customer describes a process of capturing a customers
requirements.
Frequently, customers are key stakeholders in innovation projects, particularly those that
deal with product or process innovations.
Example: Did a customer actually say they needed post-it notes?
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Probably not. However, insight into unexpressed customer needs is a quality many
great innovators have. Sometimes innovation requires inspired individuals that can
identify unexpressed needs. If we only listened to what customers ask for we probably
wouldnt have Post-it notes, bagless vacuums or Twitter.
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Core technologies and competencies are the set of internal capabilities, organisational
competencies and assets that could potentially be leveraged to deliver value to
customers; including technologies, intellectual property, brand equity and strategic
relationships.
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imitate)
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provide a point of difference for the organisation (not easy for competitors to
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Core competencies: A unique ability that a company acquires from its founders or
develops and that cannot be easily imitated. Core competencies are what give a
company one or more competitive advantages, in creating and delivering value to its
customers in its chosen field. Also called core capabilities or distinctive competencies.
Source: BusinessDictionary.com, viewed September 2014,
<http://www.businessdictionary.com/definition/core-competencies.html>.
Introduction
Student Workbook
Organisational readiness
Can we take action?
A structured analysis of your organisational readiness for an innovation program is
essential.
Keep in mind that the introduction of innovation systems will impact on these elements:
people
structures
culture
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organisational practices.
The strategies that you implement will depend on how well developed these elements are.
Learning activity: 20 things about innovation
The Australian Institute for Commercialisation has produced a quiz called 20 things
you need to ask yourself about innovation.
It helps to understand an organisations innovative abilities and provides tips and ideas
for managing your organisations innovation journey.
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Gilmore, R., 2009, 20 Things You Need To Ask Yourself About Innovation, AIC,
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You can find out more on the Australian Institute for Commercialisation website at
<http://www.ausicom.com/>.
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Disciplined implementation
Student Workbook
Introduction
Section summary
The remainder of this workbook will address the skills and knowledge you need to help
build and sustain an innovative work environment.
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However, in order to succeed, you need to be mindful of the range of issues that can be
identified through the seven dimensions of strategic innovation.
At the end of each section, you will review how those skills impact or depend on the seven
dimensions of strategic innovation.
Further reading
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Student Workbook
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The management team have identified that innovations in processes, products, and
marketing will enable the business to gain some market share.
The business has recently developed and implemented an innovation system that
addresses the seven dimensions of strategic innovation.
As a leader in the business, Jennie is expected to provide leadership to make this new
innovation system work.
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Regularly evaluate own approaches for consistency with the wider organisational or
project context.
Student Workbook
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How can you integrate innovation to make it part of your organisations DNA?
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How you receive ideas and what you do with them is critical for leading innovation in your
workplace. As a workplace leader, you are one of the first points of contact for innovation
ideas. You need to open the door, not close it.
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meetings
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one-on-one discussions
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presentations.
Student Workbook
Active listening
Active listening is demonstrated listening and it is hard work. Why is it important?
There are three elements of face-to-face communication:
words
tone of voice
body language.
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listen to for what people feel, not just what they say
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Watch this video on YouTube to learn about active listening from Professor Jeffrey
Berman at Salem State University:
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<http://youtu.be/7AxNI3PhvBo>.
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Use open questions to explore their ideas and promote discussion. Open questions start
with:
What?
Where?
When?
Who?
Why?
How?
Student Workbook
Remember, when you are discussing ideas, you are still in the divergent stage so its
better that the person leaves you with questions rather than answers. Better to frame
your responses with phrases like:
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<http://www.videojug.com/interview/memory-basics-2>.
Student Workbook
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Trevor Hill has identified this list of 10 Language Tips to Inspire Others 6. Tips like
these should be used to frame your responses when providing advice:
1. Use We rather than I.
3. Use words that appeal to the senses (e.g. see, focus, hear, grip, seize, strive,
reach).
4. Use language that encourages others to look for what they want.
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5. Presuppose that you will succeed as a group; When we reach as opposed to,
If we reach
6. Walk the talk.
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Be a gatekeeper
Keep in mind that while you are encouraging people to take innovative and calculated
risks, you shouldnt be leaving them exposed to the risk of criticism or catastrophic
failure.
Make sure that people are aware of the consequences of a course of action; good or bad.
They have come to you for an informed opinion and advice, so make sure that you give
them that.
Hill, T., 2009, The Inspiring Leader Top 10 Language Tips to Inspire Others, Ezine @rticles, viewed
September 2014, <http://ezinearticles.com/?The-Inspiring-Leader---Top-10-Language-Tips-to-InspireOthers&id=3153344>.
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