Managing Innovation Technology Essay Example | Topics and Well Written Essays - 5000 words

Managing Innovation Technology - Essay Example This could range from solving a major technological problem through a significant research programme, to simply making some minor improvements to an existing product (IPENZ 2). One example of this type of innovation is the portable MP3 player. This is basically an improvement on the compact disc player. This was market-led as there was an increasing need by the market to have this device, due to the increasing availability of downloadable files, coupled with the relatively low cost. The second is technology-led innovation. This is where a technological breakthrough, often arising from market-led innovation in another sector, creates an opportunity for a new product or service, but one that the market itself has not yet recognised. A market then needs to be developed for this innovation (IPENZ 2). An example of this type of innovation would include the in-house stereo system that is being introduced on the new housing estates in the UK. This involves speakers built into ceilings in al l rooms of house, with the main radio control centre in a central location. This means the occupants of the household, can listen to their favourite radio station, music or television programme without having to take the radio or television with them. In terms of the service sector, innovation would include applications such as the Pay Pal payment system, which is an online payment system or even online banking.For innovation to be successful it has to fulfil a number of factors. It has to have market value and to achieve this there needs to be a close link with the marketing process. There is no point in producing products if the market does not value the innovation. The innovation must be unique and protected in order to prevent competitors making any gains on it. Successful businesses rely on processes that ensure regular and constant innovation as failure is bound to happen when reliance is placed on random innovations. More and more organisations are recognising the importance of managing their innovation technology, as there are massive gains to be made in terms of copyrights and intellectual property. More importantly, they stand to attract other market segments and recognition of their efforts. The processes being employed are also relatively simple, as they entail areas such as knowledge management, and instilling a culture of openness and innovation in the organisation. Good innovation systems also focus on recruiting and retaining highly skilled and trained staff, giving them access to knowledge and then encouraging and enabling them to think and act innovatively. An effective innovation system consists of a variety of factors. The organisation must have a culture that values innovation and where staff are encouraged to think differently and take calculated risks. This requires a change in the organisational culture, as innovation cannot flourish in a static organisation or one which is heavily centralised. For innovation to work, the organisation needs to adopt a learning culture. This is essential in the current environment as the markets are relatively more unstable than they have