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Summary Innovation, Entrepreneurship & CSR 4.2
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Summary Innovation, Entrepreneurship & CSR 4.2
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Summary Innovation, Entrepreneurship and CSR 4.2Chapter 1
Definition of innovation= ‘innovation’ comes from Latin, innovare, and is all about change.
Perhaps a helpful definition of innovation is ‘the process of creating value from ideas’.
Peter Drucker: “Innovation is the specific tool of entrepreneurs, the means by which they
exploit change as an opportunity for a different business or service. It is capable of being
presented as a discipline, capable of being learned, capable of being practiced”.
Stage in life cycle Start-up Growth Sustain/scale Renew
Creating wealth Individual Growing the Building a portfolio of Returning to the radical
entrepreneur business through incremental and radical frame-breaking kind of
exploiting new adding new innovation to sustain the innovation which began
technology or market products/services business and/or spread the business and enables
opportunity or moving into new its influence into new it to move forward as
markets markets something very different
Creating social Social entrepreneur, Developing the Spreading the idea Changing the system - and
value passionately ideas and engaging widely, diffusing it to then acting as agent for
concerned to others in a network other communities of next wave of change
improve or change for change – social entrepreneurs,
something in their perhaps in a region engaging links with
immediate or around a key mainstream players like
environment issue public sector agencies
Explore the role of entrepreneurs as the agents of innovation – ‘innovation is what
entrepreneurs do’. Entrepreneurs come in all shapes and sizes.
Barriers to innovation include:
• Seeing innovation as ideas, not managing the whole journey.
• Not recognizing the need for change.
• Mindset and complacency – core competence become core rigidity.
• Closed information network, insulated from new ideas.
Can we manage innovation?
• Innovation as a series of experiments.
• Building ‘routines’ – behavior patterns which become embedded.
• Structures, policies, procedures for making innovation happen.
• Culture – ‘the way we do things around here’
Successful innovators
• Explore and understand different dimensions of innovation (ways in which we can
change things)
• Manage innovation as a process
• Create conditions to enable them to repeat the innovation trick (building capability)
• Focus this capability to move their organizations forward (innovation strategy)
• Build dynamic capability (the ability to rest and adapt their approaches in the face of
a changing environment)
,Challenges on the innovation horizon
• Acceleration of knowledge production Market virtualization
• Global distribution of knowledge production Rise of active users
• Growing concern with sustainability issues Market expansion
• Development of technological and social infrastructure Market fragmentation
Dimensions of innovation – what can we change?
Dimension Type of change
Product Changes in the things (products/services) which an organization
offers
Process Changes in the ways in which these offerings are created and
delivered
Position Changes in the context into which the products/services are
introduced
Paradigm Changes in the underlying mental models which frame what the
organization does
Types of innovation: the range
of choices, highlighting the point
that change can happen at
component or sub-system level
or across the whole system
A process model of innovation
4 key steps:
• recognizing the opportunity
• finding the resources
• developing the idea
• capturing value.
The challenge comes in doing this in organized fashion and in being able to repeat the trick.
Creating an innovation strategy
Exploring innovation space
, • Strategic analysis: what could we do?
• Strategic selection: what are we going to do,
and why?
• Strategic implementation: how are we going
to make it happen?
Strategic selection
• What is our overall business strategy (where
we are trying to go as an organization) and
how will innovation help us get there?
• Do we know anything about the direction we
want to go in – does it build on something
we have some competence in (or have
access to)?
Innovation is about growth – recognising opportunities for doing something new and
implementing those ideas to create some kind of value. It could be business growth; it could
be social change. But at its heart it is the creative human spirit, the urge to make change in
our environment.
Innovation is also a survival imperative. If an organisation doesn't change what it offers the
world and the ways in which it creates and delivers those offerings it could well be in
trouble. Innovation contributes to competitive success in many different ways – it’s a
strategic resource - helping to get the organization where it is trying to go, whether it is
delivering shareholder value for private sector firms, or providing better public services, or
enabling the start-up and growth of new enterprises.
Innovation doesn’t just happen – it is driven by entrepreneurship. This powerful mixture of
energy, vision, passion, commitment, judgement and risk-taking – provides the engine
behind the innovation process. It’s the same for a solo start-up venture or a key group
within an established organization trying to renew its products or services. Innovation is a
complex process which carries risks and needs careful and systematic management. It’s an
extended process of picking up on ideas for change and turning them through into effective
reality.
This core process doesn’t take place in a vacuum. We also know that it is strongly influenced
by many factors. In particular, innovation needs:
• Clear strategic leadership and direction, plus the commitment of resources to make
this happen
• An innovative organization in which the structure and climate enables people to
deploy their creativity and share their knowledge to bring about change
• Proactive links across boundaries inside the organization and to the many external
agencies who can play a part in the innovation process (suppliers, customers,
sources of finance, skilled resources and of knowledge, etc.).
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