Why and How Do You Need Innovation Management?

April 15, 2022

Innovation management is a considerable diversion from standard management concepts, methods, and practices and divergence from traditional organizational forms that dramatically alter management work. Said, management innovation changes the way managers carry out their responsibilities. And what are the responsibilities of executives? Setting goals and laying out plans are typical managerial tasks, as are motivating and aligning effort, coordinating and controlling activities, accumulating and allocating resources, acquiring and applying knowledge, cultivating and nurturing relationships, identifying and developing talent, and understanding and balancing the demands of external constituencies. 

The only way to change how managers work in a large organization is to reinvent the systems that govern that work. The gears that put management ideas into everyday activities are strategic planning, capital budgeting, project management, hiring and promotion, employee assessment, executive development, internal communications, and knowledge management. They define the formulas and rituals that regulate managers' work. Management innovation focuses on a company's management processes, whereas operational innovation focuses on the company's business operations (procurement, logistics, customer service, and so on).

'Innovation' isn't necessarily a good thing. Someone may advise you to take a particular course of action because it will make the company more innovative.' But what exactly does that imply? What are the advantages of a company being more creative for its employees and stakeholders?

We must discuss innovation in terms that are both practical and measurable. Process innovation is an excellent illustration of this. Let's say your staff is sick of depending on a clunky or outmoded process. You have a notion that new technology might be able to speed up, outsource, or improve some aspects of that procedure. This concept is an example of process innovation because it not only incorporates anything new but also offers various advantages, such as lower costs and higher morale.

Innovation can also be used to attract top talents, who are more likely to want to work for a company that effectively moves innovation ahead. They become devoted employees who appreciate the chance to participate in the innovation process.

The type of innovation matters when you start to construct your innovation management strategy. There are numerous innovations, each with its own set of pros and downsides for your business. Different management styles are also required for these innovations to be implemented effectively. For example, if it's open innovation, you need to build an execution flow to take both internal and external ideas into account.

Open innovation is a concept that operates on keeping an open mind to ideas generated externally rather than only those generated internally. This is the polar opposite of closed innovation, which focuses solely on internal thoughts. You are not limited to the ideas of your workers while using open innovation. Instead, you can contribute to strategic growth by collaborating with external business partners, entrepreneurs, and new talent in different industries.

Intellectual property developed by you and your vendors, outsourcing partners, and other members of your network can eventually be shared to benefit both sides. Because you have access to a more extensive flow of ideas and additional specialists and teams to analyze and implement these concepts, open innovation can provide a significant competitive edge.

This strategy necessitates a specialized management style that balances external relationships with employee feedback. At the same time, when deciding which concepts to invest your company's money and time in, keep strategic results in mind.

At Hackquarters, we partner with corporates to move their innovation strategy forward. In our programs, corporates benefit from different sources for outside-in open innovation. For example, in our Visa Innovation Program, the participant startups got into PoC processes to improve the products, services, and internal operations of the stakeholders to create the value Visa and other stakeholders (banks, retailers, etc.) offer its customers. Hackathons are another type of event that makes value for both participant startups and corporates with the outcome of PoCs. Also, we deliver hackathons for corporates to feed them with the ideas coming from the youth. Ideas from fresh minds can show us the angles we could not see before. That's why hackathons are highly meaningful to corporates.

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