At the end of this module you will be able to:

• Explain the meaning and complex nature of innovation management within organizations

• Identify the factors organizations have to manage in order to achieve success in innovation

• Identify the activities performed by key individuals in innovation management within organizations

• Innovations are at the core of organizational success

• They help firms to more easily differentiate from their rivals

• They can be found across all sectors and in many shapes

• Commonly we distinguish between product, process, organizational and marketing innovations

• They differ by the degree of novelty (radical vs. Incremental)

• On the right are some ways how innovations transform our world

• Innovation management refers to identification, reconfiguration and implementation of all resources relevant for creation and commercialization of innovations

• Innovating organizations must consider organizational, technological, financial, infrastructural, human capital and many other internal capabilities within enterprise and in its innovation ecosystem

• Innovation starts with creative idea so organizations must pay particular attention to management of creativity at individual and organizational level

• In intrapreneurial organizations these issues are even more pronounced. Having limited pool of internal resources as primary ecosystem and knowledge base means that mistakes can be costly and even fatal for the future of organization. 

• This forces organizations to choose between stability and creativity

Organizational dilemmas in innovation management

Stability • Brings routines relevant for daily operations • Enables competing today

Creativity • Sets foundations for innovation • Plants the seed for competing tomorrow

• How organizations resolve innovation dilemma?

• Differs by the life stage of organization

• Take example of Facebook (Meta)
     • Was Facebook more inclined towards creativity or stability in early years of existence?
     • How is situation today?

• The transition from creativity to stability may lead to quiet-life behavior and threaten organizational competitiveness

• Innovation is about resolving uncertainty

• Some of things organizations need to consider in innovation management

• Output uncertainty (what customers want)

• Process uncertainty (how to deliver what customers want)

• The answers to these questions are being looked for within uncertainty map

• The uncertainty map depicts four common innovation strategies

• They differ by the degree of product and process uncertainty from high to low

• Choice of strategy depends on market conditions, anticipation of trends and internal capabilities

In their search for knowledge organizations act in search space: 

• Exploitation: Stable framework for development of incremental innovations. Fine-tuning existing products and collaborations with established partners. All roles defined and research questions known.
• Limited research: Pushing boundaries of the ”known” New technologies can be developed but within the existing frame. Business model stable
• Framework change: Out-of-the-box. Permutation of existing resources and elements in environment.
• Co-evolution: High degree of experimenting. New dominant frame. 

• Internal knowledge links management

• If organization „X” only knew what it does not know

• Organizations often possess knowledge of which they are not aware

• Innovation management also requires exploitation of internal knowledge

Many of factors from previous slides are shaped by organizational structure. It is open question whether more flexibility or hierarchy facilitates innovation management success. Commonly we distinguish between organic and mechanistic structures. Some of things to consider when structuring your innovation team.

• Innovation management depends on certain individual roles responsible for:

• Technology
• External linkages
• Product development
• Motivation 

• Trott (2018) provides overview of key individual roles in innovation management 

Well done! Now you know more about:

• Relevance of innovation management
• Factors to consider in innovation management
• Tools, methods and roles in innovation management