They approach Innovation In the broadest sense including both new technologies and new ways of doing things. (Porter, 1 990) ‘Everyone knows that innovation is a core business necessity. Companies that do not innovate stop existing. This is not news. ‘ (Henry Cheeseburger, open business models, Harvard business school press 2006) Importance of Innovation has been discussed for decades and continues to be the most talked about management Issue these days. Today, knowledge In all Its forms plays a crucial role in economic processes.
Organizations with more knowledge systematically outperform those with less. Within the knowledge-based economy, innovation is seen to play a central role. It was believed that an enterprise can maintain competitive advantage through quality and price. However, the research at the Ernst Young Centre for Business Innovation (CAB) has revealed that innovation soon of the most valuable differentiator for sustainable competitive advantage. Firms innovate to defend their competitive position as well as to seek competitive advantage.
Innovation is at the heart of economic change. In Summerset’s words, “radical” innovations shape big changes in the world, whereas “incremental” innovations fill in the process of change continuously. Innovation is the motor of the modern economy, turning ideas and knowledge into products
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It has been argued that product and process innovation are not the main bottleneck to progress. The bottleneck is management innovation. But what is management Innovation? Why is it so important? And how can companies learn to become management Innovators? The present management systems, structures, practices, processes, and strategies have been developed over the last 1 50 years, Management innovation transforms these systems, business models and practices to meet the challenges of change in the dynamic economic environment.
The skill to spot opportunities and create new, better strategies, management practices and activities is at the heart of management innovation. The purpose of this article is to discuss process of management Innovation and role of consultant in this regard. 1 . Technological Innovation: Traditionally, Innovation is associated with the use of technological knowledge, search and development activities. Any innovation due to an industrial application of scientific knowledge is a technological innovation. . Product innovation: Products are tangible goods. Service sector includes health, insurance, financial service, professional service etc. Product innovation is introduction of new goods and services, which are significantly improved in terms of design excellence, core characteristics, technical specifications etc. Product innovation is derived from customer insight, industry insight and strategic alignment of the organization. 3. Process innovation:
Process innovation comprises the introduction of a new or significantly improved production process involving new ways of producing goods and services that maximizes speed, service, quality, simplicity and waste reduction. Waste consumes resources without creating any value. Waste of untapped human potential, waste of time, energy, material etc. Should be reduced or eliminated through process innovation. Initiatives including six -sigma, lean manufacturing, TTS have great impact on process innovation and improve bottom lines of the companies by enhancing productivity and profitability.