best practice of innovation management in private sector

Best Practice of Innovation Management in Private Sector

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Definition

“Innovation is production or adoption, assimilation, and exploitation of a value-added novelty in economic and social spheres; renewal and enlargement of products, services, and markets; development of new methods of production; and establishment of new management systems. It is both a process and an outcome.".(Edison et al, 2013)

Definition

“ Innovation as the introduction of new products, the introduction of new method of production, the opening of a new market, the conquest of a new source of supply of raw materials and the carrying out of the new organization of any industry “(Schumpeter, 1934)

Innovation`s Dimensions

Creativity

Learning

Knowledge

Collaboration

Context

Source : Bassiti, L. El & Ajhoun, R. 2013. International Journal of Innovation, Management and Technology. 4(6). Pp. 551-559

Context

Innovation Model ; Pull and Push

The first and second generation models are linear models explaining innovation as either being pulled by market needs, or pushed by technology and science

Innovation Management ; The Pentathlon Framework

The innovation pentathlon consists of :1) creating an innovation strategy, 2) generating ideas, 3) prioritizing and selecting from these, 4) implementing the ideas selected 5) involving people from across the business.

The Pentathlon Framework

Case Study 1 ; Singapore Airlines

• Vote world’s best airline in surveys by Travel magazine

• First-to-market strategy for many years• More modern aircraft offering :Larger than average seatingFirst in-flight- phones and faxesLeader in the introduction of electronic ticketsFlexible for-flight confirmation by phone, fax or email• Staff receive longer and more detailed training• Visit senior citizen’s homes

Case Study 2 ; IKEA of Sweden

• IKEA is a Swedish company that design and sells ready-to-assemble furnitures, appliances and home accessories.

• Communicate widely about innovation strategy• Innovate keeping your core strength in mind. IKEA make sure it

has something appealing for everyone at low price.• Innovations means maintaining good quality• Flat packing means cost saving on transportation and assembly• IKEA has a well-defined organizational and governance

structure to manage innovation• Innovation in IKEA catalogue. IKEA catalogue is a study on how

to create in year-long invitation to IKEA stores• IKEA operative KPI measure the achievements in terms of

innovation status and milestones• Innovations and changes comes from the top

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