INNOVATION MANAGEMENT (TUTORIAL 1)

A. TRUE OR FALSE QUESTIONS

1. Creativity is a mental process involving the generation of a new ideas or concepts, or new
associations between existing ideas or concepts (TRUE)
2. Innovation is about introducing something new or doing something in a new way (TRUE)
3. Invention is unnecessary for an organization’s growth and to distinguish itself from
competitors (FALSE)
4. Ideas need to be framed in some acceptable manner in order to be communicated to others
(TRUE)
5. According to Gifford Pinchot III, innovation is the act of genius in creating a new concept for
a potentially useful new device or service (FALSE)
6. Many organizations choose to patent their invention because they want to disclose all the
information regarding the invention to others (FALSE)
7. A workable concept involves all efforts aimed at creating new ideas and getting them to work
(TRUE)
8. The commercial use of an invention is called innovation (TRUE)
9. Innovation does not take place by some well-defined linear process (FALSE)
10. Organizations that invest heavily in Research and Development will have a better innovative
design and product (TRUE)
11. The unexpected event, the incongruous and demographics are among the sources of
innovation (TRUE)
12. A process consists of an idea that comes from some recognized need that is developed into a
concept, and ends with the commercialization of the innovative product (TRUE)

B. ESSAY QUESTIONS
1. List importance of innovation to an organization

Innovativeness has become a force in wealth creation and business success. It leads to
new business ideas and technological revolutions. The survival aspect that an established
organization would need is to innovate or face the consequences of extinction. Apart from
products and services, innovation also includes processes, supply chain systems, marketing
methods, and leadership or management styles. With globalization's impact, coupled with
technological and knowledge revolutions, organizations and businesses will continuously
adapt to an ever-changing business climate. Innovation will help add value and propel
organizations forward towards overall improvement.

2. Based on question (1), explain how innovation can affect an organization's activity. Give one
company as an example in your explanation

Process innovations mean the implementation of a fresh or partially enhanced

manufacturing or production or deliverance system. It enables the production of a given amount
of output that is goods and services with less input. The latter can be interpreted in terms of
eco-efficiency. Process innovation ranges from incremental changes to more radical changes.
Process innovation brings consequential amendments in equipment, techniques, or software.
Process innovations strive to reduce the unit cost of manufacturing or delivery, increase value
and worth, or manufacture or deliver new or more improved products. Process innovation can
play a significant strategic role. It enables to manufacture something that others cannot, or to
formulate in a way better than other competitor firms. By process innovation, companies can
create a beneficial competitive advantage. An example of a company that affects by the
innovation process is Nokia.
Management decisions, dysfunctional organizational structures, growing bureaucracy,
and deep internal rivalries have all played a part in preventing Nokia from recognizing the shift
from product-based competition to platform-based competition. Nokia's mobile phone story
exemplifies the common trait we see in mature, successful companies: success breeds
conservatism and hubris that, over time, result in a decline in strategy processes that lead to
poor strategic decisions. Once companies have embraced new ideas and experiments to
stimulate growth, they become risk-averse and less innovative. Such considerations will be
crucial for companies that want to grow and avoid one of the biggest disruptive threats to their
future – their success.

3. Explain the differences between innovation, invention, and creativity

 Innovation is a process of introducing something new or doing something in a new
way. Innovation can be a new product, a new approach, or a new way of doing business.
Innovation involves whole organizations or society. The invention is a process to invent
something that did not exist or use existing tools in a new way. Examples of the invention are
components, assemblies, mechanisms, and various equipment used in daily living. Inventions
are generally associated with patents; however, many inventions are never patented, and all
efforts are aimed at creating new ideas and getting them work. Creativity is an individual's
ability to generate ideas or thinking up new things that result in the improved efficiency or
effectiveness of a system and a mental process involving developing new ideas or concepts or
new associations between existing ideas or concepts.

4. Explain the innovation continuum process in detail.

Innovation is based on a continuum of events that begins with a basic idea that
develops into a concept that produces some invention and is finally implemented and
commercialized. Raw ideas provide little value unless someone pursues them. Few idea-
generators can better explain the definition, and many companies, while not suffering from a
shortage of raw concepts, suffer from a lack of commitment in implementing them.
Transforming an idea into a workable concept involves taking account of the system in which
the idea will be implemented. In the formative stages of the concept, the available information
may be limited but still needs to be considered. Besides, new information needs to be
gathered and factored into the decision process.
The continuum of innovations describes the spectrum from incremental to genuinely
transformative innovations. At one end, there is an incremental improvement: small
innovations that increase efficiency, quality, or value. On the other hand, there is a total
transformation: radical, an overarching change that affects the whole system. The two ends of
the continuum are very different in nature, and it is crucial to understand the difference. Total
transformation is at the other end of the continuum. It involves a radical change that alters the
very essence of your operation. It's a potent kind of change, and it's not to be done lightly.
Transformational innovation requires due diligence, and expertise is needed. Unlike
incremental improvement, transformation is difficult to measure because there is no basis for
performance. The only thing that unites incremental improvement and transformation is that
action anywhere along the continuum represents innovation. If your organization is pursuing
innovation, there is once an essence that cannot change: your mission.