INNOVATION MANAGEMENT – THE FURTURE MANTRA

The increasingly competitive market place is fast translating from being a process driven to a market driven economy. The economy of companies today is beginning to pivot on the differentiator rather than the efficiency factor. To further elaborate, while better pricing and quality were instrumental in ensuring profitability in the recent past the scenario has begun to perceptibly tilt towards innovation.

Premium quality and optimal pricing is a’ given’ in the market and are not differentiators in present times. What sets what organization apart from the competition is about differentiated and value added products and services.

THE THREAT

The future can be a challenge for most considering the fact that organizations would need to change and they would find it difficult to manage this change. This could be attributed to the fact that neither would they have the expertise or a past ‘learning curve’ to help ensure a smooth transition.

Preparing for the future is not complex if innovative management is implemented with the same energy and commitment levels as they did when creating more efficient processes in the recent past.

INNOVATIVE MANAGEMENT – DEMYSTIFIED

The success of innovation invariably depends on utilizing some pre-defined processes and the management of these processes is best defined as Innovative management. There is more to innovation than merely the creative genius of a freewheeling individual. On the contrary this is about generating a momentum using the integrated force of technology, resources, marketing techniques and the workforce to advantage. This makes innovative management a collective effort rather than individual brilliance.

THE STRATEGY – PUSH OR PULL

While a situational analysis helps an organization understand where they are the mission statement helps understand where they would like to be. Finally it is the strategy which gives an insight to how to get there and innovation is all about getting there.

When an organization has the technology or expertise in a particular domain, they need to innovate so as to ensure that they can leverage and use this to advantage in the market space and thus enhance organizational profitability. The concept is better known as the ‘push’ technology.

Conversely when an exhaustive market survey identifies a gap in what the customer wants and the industry can provide; the challenge of innovation is to find the right product or service so as to fill in the gap. This is best defined as a ‘pull technology’ in innovation.

Conclusively neither is better than the other, and market forces would decide as to which class of innovation would succeed at any point of time.

EVALUATION AND INNOVATION

One of the major challenges that organizations and managers have battled with over the past decade is about measuring the effectiveness of innovation. While measuring revenue enhancement as an outcome of implementing innovation is more tangible and easy to measure, it is measuring business processes internal to the organization which are a major challenge in present times.

The future of organizations then would depend on initiating the process of innovation with a link in to the corporate strategy and business plan so as to ensure organizational profitability and measuring the efficacy and success of innovation.