MANAGEMENT OF INNOVATIONS

Innovation is the process of developing creative idea so that it can be put to practical use.
Organisational innovations are of three types. They are 1) TECHNOLOGICAL INNOVATIONS: are those innovations that result in changes in the technology for producing goods or services (process innovation) or in the outputs (product innovation) themselves. - A product in one industry or sector could become a process innovation in another industry or sector. Ex: Innovation in the computer industry can make possible greater automation in petrochemicals industry, airlines, railways. Personal contacts, education and experience constitute the largest percentage of information sources used in originating innovative ideas in the organisation. Abundant funds can achieve better performance than a tight budget for an innovative budget. Major blocks are internal to the organisation such as internal barriers to communication and action, coordination difficulties, poor control and follow up, poor definition of objectives, inadequate creativity etc.

- A culture of openness, honesty, participative decision making, autonomy for the research group, closeness with and concern for consumer etc lead to innovations

- The link between basic research, development, manufacturing and marketing of innovative product will yield better results.

- Experimentation, team building, HRD, creativity etc are essential.

-Too much formal control, multiple barriers and check points for decisions inhibit innovation. 2) MANAGEMENT INNOVATIONS:

- Management innovations include formal forecasting, planning, programming and budgeting systems, cost control, marginal costing, participative management, job environment, organisation development, human resource development, investment evaluation, portfolio selection methods, mathematical programming, inventory control methods, market research, test marketing, market development, matrix structure of organisation etc.
- They lead to greater efficiency, better coordination, greater capacity to cope with environmental changes, better staff motivation, greater accountability, better mission accomplishment etc. - Management innovation requires a number of political skills such as the capacity to identify and coalition that will support the innovation, proper timing, effective internal marketing of the innovation etc. - Other participatory techniques needed are action research, organization development and brianstorming. Action research is a suitable technique for innovation. In this technique a group of behavioral scientists go into a system, ask questions to the people

In the lower level what are the strengths of the system, what are its weaknesses, where changes need to be brought about etc. The data are then summarized and shared with the staff of the system. After brainstorming, the selected, innovations are then implemented through task forces or teams. - Management innovations are difficult to institutionalize because of the psychological resistance, the upsetting of the power balance, the need for managers to relearn their jobs. Once institutionalized, the management innovations are quite long lasting. - Diffusion of management innovations in large systems such as public enterprises is a challenge. It may be done in a small division and later diffused to other divisions. 3) SOCIAL INNOVATIONS: Social innovation programs are aimed at helping the poor people. Some may be specific missions such as - Make the adults of a particular rural area literate. - Group of villages into a milk cooperative. - Promote family planning in a region. - Social development programmes have high propensity to fail due to bureaucracy. -They also fail due to inertia of the poor people. -Strategic management is needed for the success of social programmes.

Strategic management is needed for the success of social programmes. The strategic management includes the following steps. Starting with one or few goals and later diversify the goals. Demonstrate the success of the programme to the beneficiaries. Flexible organizational structure to adapt rapidly.

Establish cooperative links with other agencies.

Create internal staff commitment to its mission and activities. Need to nurture the intended beneficiaries of the programme by having them participate in the decision of the programme.

- Monitor the performance through a simple but speedy information system that uses formal and informal sources of information.
INNOVATIVE ENTREPRENEURSHIP: Entrepreneurs are individuals who start business enterprises. The skills needed for innovative entrpreneur are as follows. 1) Ability to take calculated risks: Ability to identify what the potential pay off from an action venture is. Ability to identify the significant risks in the venture which are associated with inputs, technology, market, govt policies.

How the pay off from venture or its cost or the risks associated with the venture can be changed by ones actions. Ex: Finding cheaper domestic substitute instead of importing a machinery. Knowledge of high opportunity industries, markets, technologies, regions etc. ABC analysis can be done to divide the areas opportunities into more opportunistic/ stabilised sector / stagnant sector Ability to spot opportunities in social adversity. Ex: Bhopal disaster can be an opportunity for many such as legal assistance, comprehensive health package.

2) Ability to spot opportunities: -

SKILLS FOR SPONSORING INNOVATION: 1) Productivity for Social/Organisational Innovation: Keeping touch with major developments in the field and with opportunities for innovation in ones own organisation Original solutions to difficult problems Trying to look for novel solutions Quickly identify the power structure of the organisation and get to know what powerful people in the system want or do not want.

2) Sensitivity:

Able to smell trouble before others do

- Identify quickly the dos and donts of the organisation - Keeping eyes and ears open to what is happening around. - Keeping in touch with a wide variety of people and conciously develop a large number of informative and influential contacts. - Doing the right things at the right time. 3) Challenge, facing and stress tolerance: - Ability to take over when things go wrong and provide guidance to others. - Ability to not get disheartened and quickly try to find a way out of it. - Not getting nervous while making hard choices/decisions.

4) Problem solving skills:

- Bring order, even the mercy situation by systematic analysis. - Think of large no. of alternatives before evaluating. - Map out all the steps of a work related solution. - Ability to follow up tasks and getting them executed. 5) Resource and support mobilisation: - Knack of mobilising the resources for a task even when resources are scarce.

- Able to inspire others/infuse them with enthusiasm for a difficult task.

6) Task accomplishment drive: - Count upon ones play in getting jobs done. - Set oneself the work related goals and deadlines. - Seek and accept personal responsibility for getting a job done. - Get new projects going easily/quickly.

7) Win drive:
- Putting ones best and expect to come out way ahead of others. - Wanting to be on top in whatever done. 8) Confidence: - Love taking up work related challenges that come ones way. - Able to put across ones points of view closely and persuasively. - Not intimidated by big people and big bosses. - Take work related criticism or failure positively. 9) Interpersonal sensitivity and skill: - Putting oneself into others shoe and sense their feelings. -Ability to find that others at work turn to the person in their moments of emotional stress.

- Patient listener and rarely judge until fully understand what the person is trying to say. - Give others a correct picture of ones thoughts and feelings. - Ask colleagues for suggestions and opinions.

- Always at ease and enjoy close working relationships.

- Be direct and open in ones dealings with most people.