Mastering Innovation: Types, Strategy, and Organizational Structure

Types of Innovation

Radical Innovation

Example: Fujifilm (a photography company) introduced a new line of skincare products.

Gradual Innovation

Example: Space rockets, showing evolution through the years.

Product Innovation

Allows the acquisition of new products or significant improvements to existing ones.

Example: Incorporation of flexible screens in mobile phones.

Process Innovation

Execution of new production processes to achieve more efficient or effective forms.

Example: Toyota's Just in Time organizational production method.

Competence Enhancing Innovation

Development that represents advancements within the same domain of knowledge.

Example: Intel processors (286, 386, 486).

Competence Destroying Innovation

A significant shift in the life cycle that renders previous knowledge for developing new products or services largely irrelevant.

Example: Word processors (which led to the disappearance of typewriters).

Organizational Preparation for Innovation

Creative Destruction

The continual introduction of new ideas, products, and technologies not only leads to the decline or destruction of older industries and methods but also creates space for new industries and innovations to emerge.

Beneficiaries of Organizational Innovation

Successful innovation benefits several key stakeholders:

• People: Recognizing the individual role played in the innovation process.
• Companies: Successful innovation can provide companies with huge gains, leading to market dominance.
• Society: Successful innovation represents progress and an improvement for social welfare.

General Framework of Innovation

The Innovation Environment

The economic and social environment powerfully conditions the emergence of innovations, either motivating and promoting them or slowing them down if resources are unavailable.

• Economic Environment: In this environment, the condition of profitability determines the inclusion of innovation.
• Social Environment: Has a decisive influence on innovation acceptance and adoption.
• Business Environment: The environment of innovation itself, where innovation is created and implemented.

Planning and Profitable Execution of Innovations

Human Resource Management for Innovation

To successfully develop innovation, it requires the action of a dedicated work team that carries out all the necessary activities and tasks. Clear rules and processes must be established to achieve results effectively and efficiently.

Building Effective Innovation Teams

Create work teams composed of complementary and balanced individuals, possessing diverse skills and defined roles within the team.

Key Organizational Structures for Innovation

• Innovation Committee: The team selected to define the innovation process within the company.
• Innovation Unit: The team responsible for executing a specific innovation project.
• Innovation Circles: Used for disseminating the culture of innovation throughout the company and serving as a channel to receive new ideas, challenges, and opportunities.
• Director of Innovation: A leadership figure incorporated to lead and drive innovation within the company.