2 - The Innovation Spectrum

Abstract

Innovation covers a wide spectrum of business opportunities based on new technology and market combinations. They range from minor improvements to an existing product with a time to market of a few months, to a complete new business based on breakthrough technology taking more than a decade to develop. For innovation management, only the distinction between inside and outside-the-box innovations is relevant. Inside-the-box innovation is a must-do activity. It is managed and funded at the business unit level, and operates at the product strategy level. Outside-the-box innovation is a strategic tool that is managed and funded at corporate level. Outside-the-box innovation needs external input. Although strategic alliances in innovation are risky and hard to manage, effectively there is no choice and the advantages outweigh the problems. Furthermore, business innovation and organizational change processes are both staged processes and have similar dynamics. Organizational transformation processes can be seen as outside-the-box innovation processes for internal customers. Recognizing and understanding the dynamics and the emotive aspects of transformation and innovation processes is a critical success factor.