Performance Management as a Process of Promoting Innovation in Software Industry

Abstract

Abstract This study aims to present performance management as a process of promoting innovation in the software industry. The target is to analyze how a software company can drive its innovation strategy by applying effective methods of performance management. For this reason, key principles of performance and innovation management are thoroughly examined. On the one hand, performance management seeks to achieve optimal financial and operational objectives of an organization by directing employees within an agreed framework of planned goals. On the other hand, innovation management provides to the company the process and the objective according to which the company will develop new applications and ideas. The alignment of these two fields defines the outline for the creation of new products and services and assists the company to differentiate against competition. In addition, this analysis is enriched with a real case scenario of a software company that acts in the global market and targets to novelties. Finally through this study, it is revealed that the combination of performance and innovation management play a positive role in promoting the goals of a software company.