Management of Change and Innovation

Course Code: 507

V Semester, MBA (IB/IBF/GLSCM) 2012-14 Instructor: Dr. T. Vasudha

Innovation Management
Module:

Strategies and Concepts for Innovation How to and Who?

Thirty thousand new consumer products are launched each year.....over 90 per cent of them fail....after marketing professionals have spent massive amounts of money trying to understand what their customers want.

How to innovate?

Out of box or Inside the box?

How to innovate?
iscard self imposed constraints. Think out of box. Think inside the box ! "hich of the constraints can #e ignored and which can not #e ignored.

$our voices of Innovation

%reat innovators & Inspiring speakers or not'

(urely )utstanding listeners'

*isten to whom?
+oices of
,roducts -ustomers .our )rgani/ation .our )wn Inner +oice

+oice of the ,roduct

Listen to the voice of your product. It will tell you how to change and improve it, sometimes radically, if you just listen to it carefully. (u#traction ! "hy add features always? "hy not su#tract? 0ddition ! -om#ine two or more product features to make a uni1ue feature'

ivision ! ivide product into its component parts 2physical or functional34 reconfigure them' Sony's walkman. Multiplication ! )ne innovation4 multiply it to create whole product line5 ,latform strategy5 (cale and scope #enefits' pple's many
varieties of i!od.

,rofiling your product

6aise e7isting feature or features a#ove industry standard. Introduce totally new feature or features. *ower feature #elow industry standard ! reduce cost and price. 8liminate feature low in value to reduce cost and price.

+oice of the -ustomer

8mpathic design
"atching customers use products and services in real settings4 during everyday routines.

)#servation -apture data 6eflect and analyse 9rainstorm for solutions

+oice of the )rgani/ation

:o one"si#e"fits"all innovation system for every organi/ation' $ive templates to organi/e inspiration and perspiration:
The great;#enign dictator ! The leader (eparation of forces ! Idea creators4 idea choosers and idea implementors' escipline ! -locking your operations 87perts;0dvisers& 6ule #reakers4 6isk takers who succeeded' Head in clouds4 feet on the ground

.our inner voice

Intuition' 0#ility to deduce Ma<or conclusion from tiny fragments of evidence

To improve chance of success..

9ecome great listeners Make four voices integral part of innovation system 0mplify them when especially they are 1uiet Mediate when they have conflicting messages $on't go by low success rate of innovation% &ost don't use best practices ..they don't listen to the four voices

-ase: Tata Motors *td.

6efer to Innovation Management "hat and "hy!-hapters = and > '

"hat was;were the innovations in this case? "hat led to these? One of the hallmarks of a winning innovation is Vision or UVP. Think of an appropriate ?+, for each of these innovations. ue to this innovation4 what specific feelings are generated and which needs are met' "here do you position Tata Motors@ innovations on Transformation ! -ommodities ladder? "hy' Innovators look for perfect storm. "hat storm did Tata Motors found?

-ase: Tata Motors *td.

-lassify this innovation? 2A ,Bs3 "hat is the source of this innovation? 2( sources of innovation ) !eter $rucker*Searching for Innovation +pportunities pg ,-"(., Innovation &anagement/ 3 How is one supposed to e7ploit the source you identified? o you think Tata Motors did the same? 87plain.

-ase: Tata Motors *td

0ecall 1he 2our 3oices 4of !roduct, 5ustomer, +rgani#ation and Self/% o you think TM* listened to these voices? 87plain. 0efer to 3oice of your +rgani#ation% "hat do we mean #y Inspiration and ,erspiration? iscuss these in conte7t of TM*. 5ost reduction and value creation must become allies, not warring enemies. 6elate this in conte7t of TM*.

Tata Motors *td.

6egarding the latest innovation 2limiting your self to the information provided in the case3 1o contain costs6........one option being considered is giving entire car in a kit form. o you think this will work? "hat do you foresee ? 7hen an impossible target has been set, innovation must take place across the entire value chain. 87plain how TM* manages this.

"ho innovates?
Innovative Individual Innovative Team Innovative )rgani/ation

-ase: Indicorps - Harnessing the power of Youth through Volunteeris b! Creating a "eta-#$O

Innovative individual
Highly motivated efies the crowd 0 +issionary ! )ne with vision 48nvisioned future/ "isdom 47I5S/ 87cellence4 ,assion and 6esources & Independent minded -ompany ! "ants to have same kind around' Caleidoscope thinking 6eady to fail ! $ail early to succeed faster ,ersistence Intersection

Innovative Teams

Ideal team consists of a technology e7pert4 a manager and a marketing e7pert. ifferentiate teams from groups' -atch#all ! To manage innovative teams

-lear definition of mission of the team and making sure it is understood #y all the mem#ers. "hile choosing team encourage diversity in skills4 personality' Managea#le si/e ! -hoose team leader with care5 Make sure team has a champion $oster trust4 fre1uent face&to&face meetings& not in same location4 performance #ased rewards ecisions have to #uilt on data.

Innovative organi/ation
$ostering innovation
Two approaches

S%un% wor%s or Intrpreneurship

Is your organi/ation intrapreneurship ready?

oes it encourage selfappointed intrapreneurs? o youBll talk a#out such people in your organi/ation? 0re resources 1uickly availa#le for trying new ideas? oes it encourage people;team to try new product ideas4 even if they are #eyond the e7isting lines? oes it tolerate failure and accept risk? oes it allow people to stick to an idea long enough to give it a fair chance? -an autonomous cross&functional teams #e formed easily?

If most of the answers are no... .our organi/ation culture needs redoing... )r have a protected Dskunk worksE team...

"hat do top innovative companies have in common?

,owerful innovative leader $ound compelling answer to:
"hy innovate? "hat to innovate? How to innovate? "ho innovates? -oming up with a #usiness idea with ?ni1ue value proposition 2?+,3

eployed and 0dapted innovation

)perational efficiency ! to deploy widely5 -ustomer intimacy ! to adapt to local markets

Indicorps F
"hat was the innovation in this case? there is any? If yes4 what led to this? o you think if

One of the hallmarks of a winning innovation is Vision or UVP. Think of an appropriate ?+, for I6*Bs innovation. ue to this innovation4 what specific feelings are generated and which needs are met' "here do you position IndicorpsB innovation Transformation ! -ommodities ladder? "hy' on

Innovators look for perfect storm. "hat storm did Indicorps find?

IndicorpsF
-lassify this innovation? 2A ,Bs3 "hat is the source of this innovation? 2 ( sources of innovation ) !eter $rucker, Searching for Innovation +pportunities pg ,-"(., Innovation &anagement/ How is one supposed to e7ploit the source you identified? o you think Indicorps did the same? 87plain.

IndicorpsF
0ecall 1he 2our 3oices 4of !roduct, 5ustomer, +rgani#ation and Self/% o you think Indicorps listened to these voices? 87plain. 0efer to 3oice of your +rgani#ation% "hat do we mean #y Inspiration and ,erspiration? iscuss these in conte7t of Indicorps. 0efer to three levels of innovation " 7ho innovates' 4Individual, 1eam and +rgani#ation/ "ho innovated;innovate in Indicorps?

IndicorpsF
6ecall: 9o money 69o innovation% o you think Indicorps defied this? (upport your answer. "hat do you think is the product of Indicorps? 87plain.

0fter Innovating 20nswering four 1uestions3...

%et e7pertise in ne7t two crucial stages. eploy and 0dapt.