LO1. Identify Opportunities to Do Things Better

Information Sheet 1.1: Roles of Individuals in Suggesting and Making Improvements

In order for innovation management to be introduced and established sustainably in the company, different roles are required: Responsible for the innovation process, innovation coaches, experts, method specialists, idea authors and submitters as well as experts. These six important roles ensure an lively innovation process in the companies innovation culture. The innovative ability of a company is positively influenced in the long term. In this article you will learn about the six most important roles in innovation management.

How clearly defined roles promote innovation management

Efficient innovation management can be recognized by the fact that it seems to work “by itself”. This seemingly automatic functioning is guaranteed by the fact that employees and managers at different locations of a company will fulfill their roles. But this does not work on its own. The prerequisite for innovation management to function “by itself” is the clear definition of roles.

In our many years of activity in innovation consulting and digitization consulting, as well as in our scientific research work, we have come across six main groups of persons in charge who contribute to anchoring an innovation process in innovation management on a sustainable basis.

These roles are not necessarily tied to different employees. For example, an innovation manager can be both an expert in a particular field and a method specialist. The point is that all roles are covered.

Role 1: Idea authors as drivers of innovation management

Anyone determined to submit ideas and further develop them into well-founded innovation concepts is the secret “star” of innovation management. Without an author of ideas, the innovation process would remain empty. The task of innovation management is therefore to support idea submitters and authors in the best possible way. All other roles listed in this article pursue this goal. Within an innovation process it is defined whether idea submitters submit their ideas anonymously or openly. And it is determined with which process the ideas are evaluated and finally rejected or accepted.

Role 2: Idea manager as the person responsible for the innovation process

Innovation managers are responsible for ensuring that the innovation process functions as efficiently as possible. To this end, they monitor the innovation process using various key figures. In addition, innovation managers make sure that the roles in innovation management are filled by employees from different areas and that these employees have the necessary resources to fulfill their role.

Role 3: Innovation coach as a supporter in innovation management

Innovation coaches are employees and managers who support idea authors with words and deeds. They are contact persons for questions and creative sparring partners for the development of ideas. Innovation coaches do not have the task of evaluating innovations – rather, they support the development of ideas. Innovation coaches ask critical questions and network idea authors with responsible experts. They motivate submitters and authors to further develop and pursue ideas. Innovation coaches can be colleagues from different departments.

Role 4: Experts in the innovation process

When developing ideas into innovation concepts, submitters of ideas have many questions: Is the idea technically feasible? Are there the appropriate materials? Where can market data be used to describe the target group for an innovation? How can sales be organised for innovation? Experts from the various specialist areas are available in innovation management to answer such questions. The innovation process determines whether idea authors can invite the experts directly or whether they can be addressed via the innovation manager.

Role 5: Specialists for innovation methods

Innovation management knows numerous methods: creativity techniques with which the process of idea generation and idea development can be promoted, methods for the development of digital business models or for agile project management. Specialists in innovation methods support idea submitters by passing on their knowledge and training employees. They give tips on how ideas can be further developed with the help of specific innovation methods. Method specialists have often acquired their knowledge in further education and seminars, sometimes also through self-study.

Role 6: Experts in innovation management

Experts have the task of using their expertise to evaluate the benefits and technical feasibility of ideas and innovation concepts. The task of an expert is demanding: it is easy to find arguments for why a new idea does not have the potential for mature innovation. It is much harder to evaluate the potential of an idea. What is behind the proposal? What would have to be changed for an idea to work? Has an author considered all the essential steps to turn an idea into a well-founded concept of innovation? Experts have the task of looking behind the scenes of first impressions. Well-founded expert opinions are characterized by the fact that at least as much work was invested in the evaluation of an idea as in its formulation.

Information Sheet 1.2: Positive Impacts and Challenges in Innovation

Advantages of innovation

Innovation can deliver significant benefits. It is one of the critical skills for achieving success in any business. It can help you solve problems, generate profit, increase your market share and edge out competitors.

The benefits to business of innovation can be significant, but so too can be the risks!

BENEFITS OF INNOVATION

  • Improved productivity & reduced costs

A lot of process innovation is about reducing unit costs. This might be achieved by improving the production capacity and/or flexibility of the business – to enable it to exploit economies of scale

  • Better quality

By definition, better quality products and services are more likely to meet customer needs. Assuming that they are effectively marketed, that should result in higher sales and profits

  • Building a product range

A business with a single product or limited product range would almost certainly benefit from innovation. A broader product range provides an opportunity for higher sales and profits and also reduces the risk for shareholders

  • To handle legal and environmental issues

Innovation might enable the business to reduce it carbon emissions, produce less waste or perhaps comply with changing product legislation. Changes in laws often force business to innovate when they might not otherwise do so

  • More added value

Effective innovation is a great way to establish a unique selling proposition (“USP”) for a product – something which the customer is prepared to pay more for and which helps a business differentiate itself from competitors

  • Improved staff retention, motivation and easier recruitment

Not an obvious benefit, but often significant. Potential good quality recruits are often drawn to a business with a reputation for innovation. Innovative businesses have a reputation for being inspiring places in which to work.

RISKS OF INNOVATION

A strategy of investing and innovation can bring significant rewards, but it is not without risk. Amongst the potential pitfalls are:

  • Competition

An innovation only confers a competitive advantage if competitors are not able to replicate it in their own businesses. Whilst patents provide some legal protection, the reality is that many innovative products and processes are hard to protect. One danger is that one research-driven, innovative company makes the initial investment and takes all the risk – only to find it is competing with many me-too competitors riding on the coat-tails of the innovation.

  • Uncertain commercial returns

Much research is speculative and there is no guarantee of future revenues and profits. The longer the development timescale the greater the risk that research is overtaken by competitors too.

  • Availability of finance

Given the risks involved, it demands a high required rate of return. That means that for businesses that have limited cash resources, the opportunity cost of investing in can be very high.

Information Sheet 1.3: Types of Changes and Responsibility

7 Types of Change in an Organization

Organizational change is a common part of business growth. Change can be an exciting time for companies to reevaluate their processes, improve corporate culture and maintain long-term viability. Regardless of the reason for the change, understanding why companies implement change strategies can help you navigate fluctuating circumstances within an organization. 

What is organizational change?

Organizational change is a transitionary period within a company. It can take many forms and may occur after extensive internal planning or unanticipated outside factors. Organizational change can cause major changes in areas like:

  • Structure
  • Policy
  • Culture
  • Strategy
  • Technology

Whether the changes are sudden or take place over a longer period of time, they can require you to adopt new policies and adjust to new differences within the organization.

7 types of organizational change

An organization can experience or implement change for a variety of reasons. Here are some types of organizational change you might see:

1. Technological

As technologies advance and companies aim to stay innovative, they may strive to incorporate new technologies. Examples of technological change include:

  • Automating jobs
  • Introducing new software platforms
  • Designing new strategies 

Often, there’s an adjustment period while businesses learn to use new tools and processes. Technology can develop rapidly, and the companies that can respond to disruptive technology developments can help ensure their long-term viability when change occurs.

2. Structural

Structural change can occur in response to an acquisition, organizational growth, new leadership or ineffective management. When implementing structural changes, organizations can analyze their current models and hierarchies to identify areas for improvement. Companies might incorporate structural change by:

  • Reallocating personnel to combat job redundancy
  • Creating high-performing teams
  • Streamlining processes
  • Encouraging effective reporting processes
  • Promoting valuable personnel

3. Cultural

Culture transformations can have varied effects on corporations. Sometimes, organizations can improve culture by promoting new attitudes that better reflect their core values. Other times, a culture shift takes place after a significant change in policies, personnel, structure, processes or strategy. 

4. Operational

Organizations may implement operational change to better meet their goals. Operational changes often focus on updating or streamlining processes. For example, a company may:

  • Implement team welfare practices
  • Change its incentive system
  • Introduce new technologies or products
  • Focus on team building 
  • Improve team communication

5. Adaptive

Adaptive change is when organizations implement proactive decisions in response to external circumstances, internal developments or a sequence of events. Outside elements that can require adaptive change include changes in:

  • The environment
  • The economy
  • Markets
  • Technology 

Internal factors can also require flexibility from a company. As companies strive to meet the demands of their team members and create better work environments, they might discover ways to adapt to accommodate the needs of their teams.

6. Reactive

Even the most forward-thinking organizations can sometimes benefit from responding to unanticipated events, and reactive change often occurs before a company has time to develop a new strategy. Reasons a company might need to react and implement organizational changes quickly include:

  • Public attitude
  • Natural disasters
  • Supply chain challenges

Reactive change can put emphasis on survival over strategy, so it differs from adaptive change, which is more strategy oriented.

7. Anticipatory

Anticipatory change is when an organization implements change with prior planning before an event causes the need for change. If the company has time to prepare, it can design an incremental change strategy by:

  • Executing data analysis
  • Distributing company-wide surveys
  • Performing customer outreach

As part of anticipatory change, companies might reorient themselves to grow into a new structure that’s able to withstand market, social, political and environmental pressures.

Types of Corporate Social Responsibility (CSR)

Firms that embrace CSR are typically organized in a manner that empowers them to act in a socially responsible way to positively impact the world. It’s a form of self-regulation that can be expressed in initiatives or strategies, depending on an organization’s goals. Many organizations communicate these efforts to external and internal stakeholders through corporate social responsibility reports.

1. Environmental Responsibility

Environmental responsibility is the belief that organizations should behave in as environmentally friendly a way as possible. It’s one of the most common forms of CSR. Some companies use the term “environmental stewardship” to refer to such initiatives.

Companies that seek to embrace environmental responsibility can do so in several ways:

  • Reducing harmful practices: Decreasing pollution, greenhouse gas emissions, the use of single-use plastics, water consumption, and general waste
  • Regulating energy consumption: Increasing reliance on renewables, sustainable resources, and recycled or partially recycled materials
  • Offsetting negative environmental impact: Planting trees, funding research, and donating to related causes

2. Ethical Responsibility

Ethical responsibility is concerned with ensuring an organization is operating in a fair and ethical manner. Organizations that embrace ethical responsibility aim to practice ethical behavior through fair treatment of all stakeholders, including leadership, investors, employees, suppliers, and customers.

3. Philanthropic Responsibility

Philanthropic responsibility refers to a business’s aim to actively make the world and society a better place.

In addition to acting ethically and environmentally friendly, organizations driven by philanthropic responsibility often dedicate a portion of their earnings. While many firms donate to charities and nonprofits that align with their missions, others donate to worthy causes that don’t directly relate to their business. Others go so far as to create their own charitable trust or organization to give back and have a positive impact on society.

4. Economic Responsibility

Economic responsibility is the practice of a firm backing all of its financial decisions in its commitment to do good. The end goal isn’t just to maximize profits, but also to make sure the business operations positively impact the environment, people, and society. CSR initiatives can, for example, be a powerful marketing tool, helping a company position itself favorably in the eyes of consumers, investors, and regulators. These initiatives can also improve employee engagement and satisfaction—key measures that drive retention. They can even attract potential employees who carry strong personal convictions that match those of the organization.