Managing Innovation

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Transcript Managing Innovation

Managing Innovation
Dr.V.S.R.Krishnaiah
Sr.Technical Director, NIC
Outline
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Need for Innovation for Higher Growth
What do innovators do
Types of Innovation
Expanding the Innovation Horizon
How to be an Innovative Organization
Leadership for Innovation
Higher Growth Path
2003-04
8.5%
2004-05
7.5%
2005-06
8.4%
The Indian economy seems to have entered
a higher growth trajectory and rates of 9%
and over may well become the norm.
The Eleventh Plan has set a growth target
of 9 percent during each of the 5 years
beginning 2007-2008
Higher Growth Path
If we want to sustain 8% growth, our
companies have to reduce business cycles,
time to market (quick supply) and to ensure
quality.
The major challenge for India during 2007 is
expected to come from China especially in the
IT segment.
Today, nations are competing in the global
market and quality can not be compromised
GDP Growth Rate: China vs. Other Countries
GDP增长率的国际比较
10.00%
China
8.00%
6.00%
Developing
4.00%
World Average
2.00%
Developed
0.00%
1998
1999
China
中国GDP增长率
Developing countries
发展中国家GDP增长率
2000
2001
年份
2002
World average
全球GDP增长率
Developed countries
发达国家GDP增长率
Can India Survive for 40ys High Growth?
60-70
70-80
80-90
90-99
Average
Korea
8.6
9.5
9.7
5.7
8.4
Hongkong
10
9.3
7.1
3.9
7.6
Singapore
8.8
8.5
6.4
8
7.9
Malaysia
6.5
7.8
5.2
6.3
6.5
Thailand
8.4
7.2
7.6
4.7
7.0
> 7%
> 6%
Higher Growth Path
The growth for IT and ITeS industry would
largely depend on
•Expanded range of new services
•Higher value offerings as opposed to entry level
back-office services.
•Establishing global development centres in a
big way, to service global customers locally.
Why you have to be innovative?
In today’s world, to be a leader in industry you have
to be innovative. Companies must be able to look
forward at the strategy and know how to bring
products to market faster than their competitors.
Innovation is the key. It’s not just for the
technology; it’s for the business strategies as well.
What is Innovation?
 True Innovation begins at intersection of invention and
insight
 Fusion of new developments and new approaches to
solve real problems
 Significant value created for society or business:
 Creates new industries
 Spurs productivity and economic growth
 Fuels wealth creation and profits
 Generates high-value, higher-paying jobs
 Raises standard of living
Stephen W.Brian, GPE, IBM Asia Pacific, 2004
Definition
• Innovation is a breakthrough approach or idea that
can be completely new or an enhancement to
something that already exists; it is a refreshing
perspective that will challenge many who just
cannot see beyond what their own experience is
telling them to think or do.
• Innovation is something new that adds value;
creativity is something new
What do innovators do?
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Connect unconnectable
Dream,Dream,Dream
See beyond what is visible
Expect the unexpected
Enjoy contradictions, shun consistency
Remember: Experiments never fail, mind does
DREAMS
PASSIONATE DESIRE
STRATEGY
&
INNOVATION
ACTION
REALITY
Types of Innovation
Products and services—Innovation applied to products
or services or market related activities
Operational—Innovation that improves the effectiveness
and efficiency of core processes and functions
Business model—Innovation that fundamentally
transforms the way a business works or drives revenue.
EXPANDING THE
INNOVATION HORIZON
To create something of value, the
imagination must soar,
unfettered, it must fly like a bird
in search of new horizons.
EXPANDING THE
INNOVATION HORIZON
Deep business model innovation is critical.
Product, service and operational innovations remain
important, but competitive pressures have pushed business
model innovation much higher on the CEO’s innovation
agenda. Companies that can substantially change how they
add value to their own or other industries differentiate
themselves and gain a competitive edge.
EXPANDING THE
INNOVATION HORIZON
External collaboration is indispensable.
CEOs stressed the overwhelming importance of
collaborative innovation, not just internally across
traditional silos but also externally beyond company
walls. Business partners and customers were cited as
top external sources for innovative ideas
EXPANDING THE
INNOVATION HORIZON
Innovation can be ignited by business and technology
integration.
Technology can enable and drive innovation. But to truly
capitalize on technology’s potential and unleash an
organization’s creative energy, technology know-how
must be combined with its business and marketing
insights. CEOs view consistent business and technology
integration as crucial to innovation
How to be an Innovative Organization
• Create a Strategic Vision
• Establish Innovation as a Priority
• Create Organizational Structures
that Promote Collaboration
• Establish Processes to Convert Ideas
to Innovations
• Allocate Resources
• Train Workforce on Creativity Tools
• Measure & Communicate Results
• Recognize Creative Behavior
• Reward Innovative Results
Focus on People
 Create an external focus
- define success in market terms
 Be a clear thinker
Traits
of an
Innovation
Leader
- simplify strategy into specific actions, make decisions and
communicate priorities
 Have imagination and courage
- take risks on people and ideas
 Energize teams through inclusiveness
- connect with people, build both loyalty and committment
 Develop expertise in a function or domain
- use depth as a source of confidence to drive change
Thanks