Tools for innovation management
This presentation is the property of its rightful owner.
Sponsored Links
1 / 23

Tools for Innovation Management PowerPoint PPT Presentation


  • 55 Views
  • Uploaded on
  • Presentation posted in: General

Tools for Innovation Management. Prasada Reddy Lund University, Sweden. Tools for Scanning Internal Environment . Audits What is an audit? - inventory of resources, assets, systems and procedures of an organization; What is the purpose? - identify what a firm has

Download Presentation

Tools for Innovation Management

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Tools for innovation management

Tools for Innovation Management

Prasada Reddy

Lund University, Sweden


Tools for scanning internal environment

Tools for Scanning Internal Environment

  • Audits

  • What is an audit?

  • - inventory of resources, assets, systems and procedures of an organization;

  • What is the purpose?

  • - identify what a firm has

  • - identify how firm utilizes them

  • - improve/learn - basis for betterment

  • - provide background for identification of core competences.


Audits

Audits

  • How to use an audit?

  • - Audit collects data and is based on questionnaires designed mostly ad hoc.

  • - Audits need to be related to the objectives of the firm.

  • - Audits can be performed for the entire organization or just for parts of it (departments).


Types of audits

Types of Audits

  • Skills/Organizational Capabilities Audit

  • Technology/Innovation audit


Organizational capabilities 1

Organizational Capabilities 1

  • Source: Ulrich, D. & Smallwood, N. (2004)

  • What people respect is not how they are structured or their specific approaches to management, but their capabilities - an ability to innovate or to respond to changing customer needs.

  • Such ‘organizational capabilities’ are key intangible assets (one cannot see or touch them). But they make all the difference in the world when it comes to market value.


Organizational capabilities 2

Organizational Capabilities 2

  • Organizational capabilities - the collective skills, abilities, and expertise of an organization - are the outcome of investments in staffing, training, compensation, communication and other human resource areas.

  • They form the identity and personality of the organization by defining what it is good at doing and what it is.

  • They are stable over time and difficult for competitors to imitate.

  • They are not easy to measure.


Organizational capabilities 3

Organizational Capabilities 3

  • 1. Represents a person’s functional competence, such as technical expertise in marketing, finance or manufacturing.

  • 2. Refers to a person’s leadership ability - to set direction, to communicate a vision or to motivate people.

  • 3. Comprises a firm’s core technical competencies, e.g. Financial firm’s risk management knowledge.

  • 4. Represents an organization’s underlying DNA, culture and personality and may include such capabilities as innovation and speed.


Organizational capabilities 4

Organizational Capabilities 4

  • A firm typically excel in as many as three of the following 11 capabilities, while maintaining industry parity in others.

  • Talent (attracting, motivating and retaining); Speed (in making changes); Shared Mind-Set and Coherent Brand Identity (employees and customers have positive images); Accountability (high performance); Collaboration (working across boundaries); Learning (generating ideas); Leadership; Customer Connectivity; Strategic Unity; Innovation (new in content and process); Efficiency (managing costs)


Organizational capabilities audit process 1

Organizational Capabilities - Audit Process 1

  • 1. Determine which part of the business to audit - division, region or the entire company.

  • 2. Create the content of the audit - adapt the 11 generic capabilities listed to the organization’s requirement.


Organizational capabilities audit process 2

Organizational Capabilities - Audit Process 2

  • 3. Gather data from multiple groups on current and desired capabilities.

  • - For a 90-degree assessment, collect data only from the leadership team of the unit under audit. Quick, but deceptive as leaders’ self-reports may be biased.

  • - For a 360-degree assessment, collect data from multiple groups within the firm. Different groups may tell different stories, but can provide insights that might otherwise be missed.

  • For 720-degree assessment, collect data from internal and external groups such as investors, customers and suppliers.


Organizational capabilities audit process 3

Organizational Capabilities - Audit Process 3

  • 4. Synthesize the data to identify the most critical capabilities requiring managerial attention - Look for patterns in the data and focus on not more than three capabilities required to deliver on strategy goals. Identify those with most impact and the easiest to improve.

  • 5. Put together an action plan with clear steps to take and measures to monitor, and assign a team to the job of delivering on the critical capabilities.

  • - Actions - coordinating education or training events, setting performance standards, creating task forces, investing in technology, etc.


Organizational capabilities audit process 4

Organizational Capabilities - Audit Process 4

  • 4. Synthesize the data to identify the most critical capabilities requiring managerial attention - Look for patterns in the data and focus on not more than three capabilities required to deliver on strategy goals. Identify those with most impact and the easiest to improve.

  • 5. Put together an action plan with clear steps to take and measures to monitor, and assign a team to the job of delivering on the critical capabilities.

  • - Actions - coordinating education or training events, setting performance standards, creating task forces, investing in technology, etc.


Organizational capabilities audit process 5

Organizational Capabilities - Audit Process 5

  • Lessons Learned:

  • Get focused; Recognize the interdependence of capabilities; Learn from the best; Create a virtuous cycle of assessment and investment; Compare capability perceptions; Match capability with delivery; Avoid underinvestment in organization intangibles; Don’t confuse capabilities with activities.


Technical innovation audit 1 source chiesa et al 1996

Technical Innovation Audit 1Source: Chiesa et al. (1996)

  • Core Processes:

  • Concept generation - identification of new product concepts

  • Product development - taking the innovation from concept, through development and transfer to manufacturing and use

  • Process innovation - the development of innovations in manufacturing processes

  • Technology acquisition - the development and management of technology per se.


Technical innovation audit 2 source chiesa et al 1996

Technical Innovation Audit 2Source: Chiesa et al. (1996)

  • Enabling Processes:

  • Resources - the deployment of human and financial resources

  • Systems and tools - the effective use of appropriate systems and tools

  • Leadership - providing the top management leadership and direction.


Technical innovation audit 3 source chiesa et al 1996

Technical Innovation Audit 3Source: Chiesa et al. (1996)

  • Detailed Audit

  • Assessing the current innovation practice and performance;

  • Identifying the gaps between current and targeted practice and performance and the reasons for gaps;

  • Defining the action plans needed to close these gaps.


Technical innovation audit 4 source chiesa et al 1996

Technical Innovation Audit 4Source: Chiesa et al. (1996)

  • Audit - Two Dimensions:

  • 1. Process audit:

  • - the degree to which there are appropriate business processes in place;

  • - the deployment of good practice - the breadth of use in the company;

  • The degree to which each practice meets known best in class or world class standards.


Technical innovation audit 5 source chiesa et al 1996

Technical Innovation Audit 5Source: Chiesa et al. (1996)

  • Audit - Two Dimensions:

  • 2. Performance audit -

  • Focus on the outcomes: i) of each individual core and enabling process; ii) of the overall process of technological innovation; and iii) the impact of this on competitiveness.

  • Produced quantitative results that facilitate comparison between and within organizations and monitors trends.

  • Weaknesses - insufficient as basis for learning. It does not specify extent of gaps or how to cover gaps.


Technical innovation audit 5 source chiesa et al 19961

Technical Innovation Audit 5Source: Chiesa et al. (1996)

  • Innovation Scorecards: Process Audits

  • Provide a rapid overall assessment of the practices adopted with respect to the known best practice and whether or not the required managerial processes are in place.

  • The basis of the score card is a description, for each process of innovation, of the characteristics of good practice and poor practice.

  • This description can be translated into scales against which companies can review themselves.


Technical innovation audit 6 source chiesa et al 1996

Technical Innovation Audit 6Source: Chiesa et al. (1996)

  • Performance Audit

  • 1. The performance of each core and enabling process that is relevant for firm;

  • 2. The global result of the innovation process, that is how it impacts on the competitive ability of the firm.

  • - the performance of innovation in financial terms;

  • - the impact of the innovation on the competitive performance of the product portfolio to which the innovation belongs;

  • - the contribution to firm’s process of learning.


Technical innovation audit 6 source chiesa et al 19961

Technical Innovation Audit 6Source: Chiesa et al. (1996)

  • Testing the Audit Tool:

  • Functionality - i) test the basic functionality of the tool and the functionality of the support process; and ii) to test the degree to which the tool was generic and thus appropriate for firms from different sectors, sizes and technologies.

  • Usability - i) the degree to which users are able to use the tool properly without support from experts; and ii) clarity of language and terminology.

  • Usefulness - Short term, whether companies found it useful? Did it lead to effective action plans? Long term - measuring the effectiveness of the programs that resulted from the assessment.


Group exercise

Group Exercise

  • Conduct 1 Audit in a Firm

  • Make Analysis of the results - Graph

  • Prepare presentation

  • Include advantages and inconveniences of a) the technique; and b) the exercise.


  • Login