3 - Managing Innovation

Abstract

In the industrial era, the innovation processes in society and in a company were similar. The cascades from science to technology and from technology to business were repeated in the organization of the company. In the postindustrial era, the innovation process became a quest to find and create new combinations between the technology and the business domains. In the traditional innovation process, the screening criteria for continuation came sequentially according to the progress through the functions: first scientific proof, then technical feasibility, followed by commercial attractiveness, strategic fit, operational acceptability, and so on. From a management perspective, it is useful to see the innovation process as a supply chain process with three main stages. Each stage needs to be operated efficiently and optimized in its own right, and at the same time, the process has to be steered and optimized as a whole. The three stages are: idea generation and crystallization, development and demonstrating, and building capability and preparing for market launch. The final stage in the innovation process is the entrepreneurial stage with three key aspects: investing in the supply chain, actively managing residual risks, and preparing detailed business and launch plans. The key objective is to successfully launch the new product with minimal risk to the company's brand and reputation.