skip to main content

You Are Here: Home / Learning / Money and Management / The World of Work / Managing innovation - page 1
 
The world of work
 

Managing innovation

page

1 2
 
Driving innovation
Driving innovation
[Photos.com]

About this article

This article is based on extracts taken from the Open University Business School courses: Strategy (B820), Managing Performance and Change (B700), Creativity, Innovation & Change (B822), Managing Knowledge (B823) and Making a Difference (B830).

It is commonplace to think of innovation as being the result of the genius of individual ‘hero’ innovators, from Thomas Edison (electric light), Henry Ford (mass production) and Guglielmo Marconi (radio communications) to Akio Morita (Sony Walkman). This view was reinforced by the early work of Joseph Schumpeter, a leading researcher in innovation, who linked innovation with entrepreneurship and leadership, crediting innovators with almost superhuman characteristics – the visionary entrepreneur dreaming up new products and taking risks against all the odds.

This ‘hero’ view suggests that only gifted individuals can innovate. However, in his later work Schumpeter acknowledged the important role of organised R&D and corporate systems in managing innovation as a systematic activity. He lamented the declining contribution of the individual, due to the increasing routinisation and predictability of innovation: and corporate systems in managing innovation as a systematic activity:

"the romance of earlier commercial adventure is rapidly wearing away, because so many more things can be strictly calculated that had of old to be visualised in a flash of genius."

His reluctant faith in institutionalised innovation can now be seen as being only partly justified. Innovation today remains far from routine in many organisations.

Today, rather than being dependent on individual heroes, innovation has come to be seen as the result of complex interactions and systemic boundary-spanning activity, involving interdisciplinary groupings. The team can be seen as ‘hero’ and ‘collective entrepreneurship’ is seen to be based on distributed knowledge and groups working effectively. Studies of process innovations in Japanese manufacturing industry, that transformed manufacturing in terms of productivity and quality, showed the importance of ‘innovation on the shop floor’ – for example teams of engineers seeing ways to reduce delays and improve quality – rather than any select individuals or R&D labs.

The concept of the learning curve (also called the 'experience curve') is well established. Over time (or, perhaps more correctly, over the cumulative number of units produced), the cost of manufacturing a product declines. People work out how to create more efficient processes, shorten or eliminate production steps, and improve designs. The shape of the learning curve is sufficiently regular in many industries to enable the rate of improvement to be predicted for a given technology. The learning curve is an example of a quantifiably measurable learning behaviour for an organisation.

Nonetheless, the notion of the individual hero innovator persists, commonly in the guise of the individual ‘champion’ or entrepreneur ‘with exceptional qualities of drive, stamina and sheer bloody-mindedness’. Moreover, in some accounts innovation continues to be linked with leadership qualities.

Innovation literature throws further light on the factors that drive or trigger innovation. For the majority of managers, both product and process innovations are most often instigated by the need to solve existing problems. Indeed, a significant percentage of incremental innovation is driven by problem solving based on experiential learning by doing, learning by using and learning from failure. The latter point requires failed projects to be seen as opportunities for learning, rather than disasters that cannot be acknowledged or opportunities for blame. Incremental innovation may also be driven by the desire to reduce costs, or in response to customer demands.

A major programme of research into innovation and knowledge management is being carried out by the Open University Business School. One set of findings relates to barriers to innovation. Unsurprisingly, resource constraints are a major barrier, but beyond this, most of the factors identified were people related.

Examples include:

  • people working in their narrow boxes (the silo mentality)
  • fear of the consequences of failure (the blame culture)
  • lack of perceived adequate rewards for the risk
  • hoarding of the best people by unit managers
  • people operating in a formal (bureaucratic) way
  • 'not-invented-here' attitude (at the implementation stage)
  • poor organisational communication
  • reluctance to relinquish an erstwhile successful product
  • technical obsession/insufficient customer orientation
  • a ‘business-as-usual’ preference and priority over innovation
  • short-termism – too strong an emphasis by key players on return on investment.

    next > Page 1 of 2

Bookmark with:
  • del.icio.us
  • Digg
  • Facebook
  • Newsvine
  • NowPublic
  • Reddit
  • Stumbleupon
 
 

Explore Open2

Character of Shakespeare and Lucie

A love triangle, A dark lady - the life of Shakespeare... or Shakespearean life? Decode the sonnets.

A fortress on the Great Wall Of China

Set during the Sino-Japanese war, Qian Zhongshu explores academic frauds and failed marriage in Fortress Besieged.

A worried man performs calculations

As a nation, we're getting older - and that costs. We want to hear your opinions on how we pay for old age.

 
 

Site info and help