chp - 4 why innovate

8/18/2019 Chp - 4 Why Innovate

1/14

Chapter – 4

WhyInnovate


2/14

Why Innovate

Ability to innovate is a vital core

competency which any leader, manager orentrepreneur must possess in order tobuild growing and proftable business.

At the same time managing innovation isone o the most di cult processes as itinvolves high Risk and high Returns.Requires balancing creativity andinnovation. Innovation ought to be aprocess that pervades every single part othe organi ation!s value chain.

"he ultimate goal is to have sustainedcompetitive advantage.


3/14

#anagers $ %ntrepreneurs may come up

with inventive ideas but need to as&ollowing questions'

(ow will I build a business aroundthis idea)

(ow will I ma&e money)

(ow will I sustain growth and *roft)

"his does not mean that businesses arespeedy but without sustained growthand proft they cannot invest in newideas$innovation.


4/14

Innovation Why so +ital

Why therefore,innovation andinnovation managementis so vital? Let us look atthree key reasons toinnovate:

nergi!e your people

"uild gro#th and pro$t

%urvive


5/14

Why Innovate

ne o the most important answers to thequestion, &W'( I))*+ - is' /-o nergi!e

(our 0isting 1eople and to ttra2t 3reat)e# *nes .

"oday, organi ation!s competitive advantage isdriven by its great people.

"he organi ations there ore must innovate to letits people thin& develop and implement new ideas.

I you do not do it, these people will migrate toorgani ations welcome and encourage them.

"he resulting churn is very costly as the companywill need to recruit re-motivate and re-energi enew wea&ens.


6/14

Innovation #ust ma&e - Changes in %o2iety

We innovate /When a ne#thought te2hnology 5usinessmodel or servi2e a2tually2hanges, so2iety

I"6 76ake 6eaning 7not 76ake6oney8 is the true ocus o theinnovator


7/14

C % : LI9 LI) 1R %% &I);I

(ow can one bring medical care to remote villages in India)ten, children and adults in India have medical problems that

can be cured easily with surgery or other care, things li&e cle t

palate or cataracts but su/er with them or their entire lives,because they cannot a/ord medical care in the cities or evenget to the cities, where hospitals and clinics e0ist. India!s railnetwor& is one o the largest in the world. It transports severalhundreds o millions o passengers yearly, has 1.2 millionemployees and has a route covering nearly 23,333 miles. In1441, Indian Railways and the Indian (ealth #inistry 5oined

orces to provide a simple solution to providing basic medicalcare or remote poor villagers. "hey called it 6i eline %0press,

r 7eevan Re&ha %0press. %quip a train with modern medicalequipment and operating theatres sta/ it with volunteerdoctors and surgeons. Run the train through the length andbreadth o India, to more than 8,333 stations. In orm thevillagers in advance, e0amine them quic&ly and choose thosebest suited or the li eline %0press care. "he pro5ect issupported by Impact 9: ;a charitable oundation


8/14

Ideas can sprout anywhere and everywhere, but thequestion is, does the Senior Management listen?

Innovation changes the organization and thischange can be initiated anywhere in anorganization, even at the lowest levels. If no one

with the power to implement l will bother

If new ideas are shot down as soon as they are born, a second i

every new idea gets a serious hearing no matter who proposes it, one day just an idea may

transform your organization and brighten its futureglobal giant IBM is a p rime example


9/14

>A=% ="9?@I # B6 A6 =%R+I>%=

Today IBM is America’s 10 th largest company (by sales). About half ofIBM’s total revenue of $ 95.8 billion (2009) comes from a business u nitthat di d not exi st a decade ago called ‘ Global Services ’, now divided intoGlobal Technology Services ( $ 17.7 billion in revenue in 2009, with 28percent gross m argin . This division helps companies develop e-business‘On Demand ’, by integrating software and hardware systems. As told bystrategy Guru Gary Hamel, the story of its birth is instructive. It beganearly in 1994, with IBM deep in crisis. A junior IBM employee, aprogrammer named David Grossman, one of some 250,000 IBMers, hada vision. Based at Cornwell University, Grossman used a su percomputerto download the Mosaic Web browser (forerunner of Netscape) andquickly envisioned the Next Big Thing: Web –based business. He becamedetermined to get IBM out in front of it, even though IBM at the time st illfocused on hardware and mainframes. He conveyed his vision to manager

John Patrick. They formed a team. Grossman led the technology team;Patrick supplied the business des ign. They wrote a n ine-page manifestotitled ‘Get Connected ’, showing six ways IBM could leverage the web. NewIBM CEO Lou Gerstner championed the idea. And IBM built a powerful,protable and fast-growing- new business, without which its future

would have been bleak.


10/14


11/14

Innovators o tenaconite two conCictingmetaphors

/Internal Compass and /-he Radar

/Internal Compass is an inner voice thatdrivers creative energies independent oe0ternal signals.

/-he Radar is a highly sensitive devicethat collects signals rom people and usesthose signals to generate innovators thatpeople want, need and en5oy.


12/14

I))*+ - 9*R 3R*W-' ); 1R*9I-

In order to achieve better share and R I,

three step procedure needs to beollowed steps have internalcontradictions


13/14

C % %-


14/14

I))*+ - 9*R %

chp - 4 why innovate

Documents