February 11, 2013
Innovation Design and Planning
Innovation is the process of using ideas within a company to create new products, services, technology, or processes. Myths used to acknowledge that innovation was the idea of one individual with no support from others. In reality, innovative ideas that become new products and services require the support and knowledge of a significant amount of individuals. The individuals involved in the innovation process become involved in an array of business functions ranging from manufacturing, marketing, sales, and distribution. Companies will need employees with a diverse set of skills to develop, test, and commercialize the new products and services. Therefore, companies rely on “strong consistent processes and frameworks in order to manage, develop, and test ideas” (Phillips, 2011, p. 5). Before the innovation planning process can begin, management must provide a clear definition of the work to be completed, the individuals responsible for working within the different steps, and provide the defined workflow necessary for the teams to achieve and accomplish the tasks needed for the innovation to properly work. In the following report, the innovation planning and design process will be addressed. Further discussion will include an analysis of the internal and external factors influence on the innovation design process. Furthermore, a description of the steps needed for the innovation planning process will be addressed.
A company’s strategies need constant adjustments to keep up with the changes in the economy. The management must consider the internal and external factors that affect the decision for best strategy. The following are internal factors and external factors that will “affect the choice of the innovation strategy and the shape of the portfolio- play-to-win or play-not-to-lose” (Davila, Epstein, & Shelton, 2006, p. 75).
The internal factors include:
* Technical capabilities: The current capabilities of the company will determine the amount of technology innovation the company is currently able to handle. * Organizational capabilities: This determines if the company is open to the process of using innovation. Innovation cannot be present if the organization and management do not have the necessary capabilities. * Success of the current business model: The planning and design process can only be successful if the company could achieve success in the current business strategies. If failure is present, it becomes evident that future changes will also fail. * Funding: Adequate funding is necessary to support the change but too much funding can become a waste of resources. If there is not enough resource the innovation process cannot be completed. * Top management vision: The management will inadvertently determine the direction the company will go. It will become a deciding factor of which innovation strategy will best help the company to reach the goals and meet the requirements for the mission and company principles.
The External factors include:
* Capabilities in the external network: It is important that a company creates sustainable alliances inside and outside the organization. The partnerships are an important asset to the possibility of the innovation moving forward. * Industry structure: Understanding the barriers and obstacles within the industry will provide important inputs relative to the innovation strategy design. Analysis can indicate areas that may hold back the opportunities for the company to design new strategies based on innovative ideas. * Competition: The competition and the organization determine...