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Innovation: Planning, Gabriel Koresy - Coggle Diagram
Innovation: Planning
• Planning for innovation varies across the four evolutionary stages of technology: start-up, growth, maturity, and aging or decline.
• In the start-up stage, R&D activities and new product development are emphasized.
• In the growth stage, the focus shifts to product improvement or adjustment.
• In the maturity stage, the emphasis is on incremental improvements and cost reduction.
• In the aging or decline stage, the focus is on divestment or finding new uses for the technology.
• The power and communication needs differ in each stage, with external groups being critical in the start-up stage, internal structures and processes becoming important in the growth stage, maintaining the technology's position in the market being the focus in the maturity stage, and divestment or finding new uses for the technology becoming the primary focus in the aging or decline stage.
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• Both approaches have benefits and drawbacks, and firms usually use both.
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• The first step is deciding whether to innovate, which involves balancing potential benefits and drawbacks.
• Factors favoring innovation include greater control, understanding, potential for developing the next generation of technology, and greater profit potential as a first mover.
• To succeed, firms need to create an environment conducive to innovation and consider a wide range of variables.
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• Factors aiding innovation planning can be categorized into creativity, organization-wide issues, and political issues
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• Organization-wide issues include innovation culture, managing ideas, and funding projects
• Political issues involve gaining top management support, creating cross-functional teams, and aligning innovation process with firm's strategy
Planning processes
• Determine the vision: Summarize where the business wants to go and how technology supports the firm's vision.
• Set the mission: Specify what the firm does and how it aligns with the vision. This is typically developed with involvement from employees.
• Establish goals and objectives: Set what the firm wishes to accomplish over the short and long term, including innovations.
• Develop strategies: Determine how the firm will achieve its goals and objectives through strategies such as product development, marketing, technology acquisition, and partnerships.
• Tactics: Develop specific actions or steps to implement the strategies, such as new product development, hiring, or technology investment.
• Technology goes through four evolutionary stages: start-up, growth, maturity, and aging/decline.
• In the start-up stage, the focus is on seeking sustainable competitive advantage through R&D and new product development.
• In the growth stage, the emphasis shifts to consolidating innovation as industry standard and focusing on internal structures and processes.
• In the maturity stage, the focus is on incremental improvements and cost reduction.
• In the aging or decline stage, the emphasis is on divestment or finding new uses for the technology.
• The most common types of process innovation are restructuring, reengineering, and value destruction.
• Restructuring involves major changes in communication and coordination patterns within the organization, while downsizing is a common form of restructuring.
• Reengineering requires fundamental rethinking and radical redesign of work processes to improve efficiency.
• To pursue process innovation, firms should ask relevant questions such as why work is performed the way it is, what value is added by the process, and how the work can be done better.
• Innovation can be classified into different types, including product and process innovation.
• Product innovation can be basic (pure research), applied (new product development), or systems integration (product improvement).
• The choice of which type of innovation to pursue should be based on the firm's needs and capabilities and a close monitoring of the competition.
• Reengineering involves gathering a diverse group of individuals from the firm and examining each activity that is part of the production of the good or service.
• The goal is to eliminate any activity that no longer provides value to the customer's desired outcome.
• Although process innovation is difficult to plan and implement, firms should constantly be on the lookout for improvements in systems and processes.
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