Simply put, innovation management is the process of managing innovative ideas. The plans and processes underlying these ideas are managed properly and transformed into action plans, designed to make the idea a reality.
An innovative idea is the introduction of something new or the improvement of an old idea or product. In business, it is something new that distinguishes your company from competitors.
In working with an innovation management consulting service, they can help you identify new markets so that you can create new products or improve existing ones to meet the needs of the market thereby having a good ROI.
The importance of innovation management
Innovation consulting firms offer the right tools needed to manage innovation and bring ideas to life. The importance of innovation management includes:
- Solve repetitive business challenges with creative solutions
- Increase productivity with new processes and procedures
- Show corporate value and emphasize quality
- Stay competitive as an innovative company
- Improve employee morale and business results
Understanding the different types of innovation
When you understand the types of innovation, you can determine how effective your innovation management strategy is:
1. Incremental innovation: improvements to existing mechanisms
This is less scary and realistic. It is the most common type of innovation. Incremental innovation is all about improving an existing innovation – improving existing tools, processes, technologies, and markets. Progressive innovation is elusive, but effective and still requires a high level of innovation management.
2. Disruptive innovation: a bold move that rocks the boat
The most famous example of this type of innovation is the Apple iPhone, which is the first to move from a button, keyboard, and scroll wheel. Disruptive Innovation is not only new, but also a completely new stop.
Internally, this might be something that other companies have used, but this is new to you. This can damage the company’s business and therefore carries a higher risk if it is not managed effectively.
3. Architectural innovation: using an already working technology in a new way
This type of innovation has to do with positioning. The product or idea itself is already used and is effective in other areas of the market or in your company.
With architectural innovation, the risk is smaller because you know that the technology works. All you have to do is adjust it and prepare it for an alternative customer base needs.
4. Radical innovation: the mind-blowing stuff that breaks ground
Radical innovation is not only disruptive but is seen by many as real innovation. Some great entrepreneurs and innovators like to play here. The first airplane, the first cell phone, the first laptop, and the first tablet are examples of radical innovation.
The lifecycle of innovation management
The entire innovation life cycle consists of four key elements that guide you from the first idea to the successful implementation and end result. This is:
- Value creation
- Innovation is not only something new, but also something different and useful
- Innovation management has to do with managing innovative ideas
- Innovation can increase productivity, create new sources of income, increase employee loyalty and save costs
- Successful innovation management makes great ideas a reality
- The four types of innovation are incremental, disturbing, architectural and radical
- The entire innovation management life cycle includes collaboration, ideas, implementation, and added value
Innovation management is the key to implementing ideas into practice, but only if done well. With the proper innovation management system in place, and with the right tools, your business can make progress easier.
Ironically, many companies are interested in innovating but are not very innovative in their approach to innovation management.
To make real progress with creative ideas and get the best from new technology, you need the right innovation management training for your staff, if you decide to work with in-house employees.