Managing Innovation

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Managing Innovation

• Dr.V.S.R.Krishnaiah
• Sr.Technical Director, NIC

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Outline

• Need for Innovation for Higher Growth
• What do innovators do
• Types of Innovation
• Expanding the Innovation Horizon
• How to be an Innovative Organization
• Leadership for Innovation

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Higher Growth Path
2003-04 8.5
2004-05 7.5
2005-06 8.4
The Indian economy seems to have entered a
higher growth trajectory and rates of 9 and
over may well become the norm.
The Eleventh Plan has set a growth target of 9
percent during each of the 5 years beginning
2007-2008
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Higher Growth Path
If we want to sustain 8 growth, our companies
have to reduce business cycles, time to market
(quick supply) and to ensure quality.
The major challenge for India during 2007 is
expected to come from China especially in the IT
segment.
Today, nations are competing in the global market
and quality can not be compromised
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GDP Growth Rate China vs. Other Countries
China
Developing
World Average
Developed
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Can India Survive for 40ys High Growth?
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Higher Growth Path

• The growth for IT and ITeS industry would largely
  depend on
• Expanded range of new services
• Higher value offerings as opposed to entry level
  back-office services.
• Establishing global development centres in a big
  way, to service global customers locally.

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Why you have to be innovative?
In todays world, to be a leader in industry you
have to be innovative. Companies must be able to
look forward at the strategy and know how to
bring products to market faster than their
competitors. Innovation is the key. Its not just
for the technology its for the business
strategies as well.
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What is Innovation?

• True Innovation begins at intersection of
  invention and insight
• Fusion of new developments and new approaches to
  solve real problems
• Significant value created for society or
  business
• Creates new industries
• Spurs productivity and economic growth
• Fuels wealth creation and profits
• Generates high-value, higher-paying jobs
• Raises standard of living

Stephen W.Brian, GPE, IBM Asia Pacific, 2004
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Definition

• Innovation is a breakthrough approach or idea
  that can be completely new or an enhancement to
  something that already exists it is a refreshing
  perspective that will challenge many who just
  cannot see beyond what their own experience is
  telling them to think or do.
• Innovation is something new that adds value
  creativity is something new

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What do innovators do?

• Connect unconnectable
• Dream,Dream,Dream
• See beyond what is visible
• Expect the unexpected
• Enjoy contradictions, shun consistency
• Remember Experiments never fail, mind does

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PASSIONATE DESIRE
ACTION
REALITY
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Types of Innovation
Products and servicesInnovation applied to
products or services or market related
activities   OperationalInnovation that improves
the effectiveness and efficiency of core
processes and functions   Business
modelInnovation that fundamentally transforms
the way a business works or drives revenue.
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EXPANDING THE INNOVATION HORIZON
To create something of value, the imagination
must soar, unfettered, it must fly like a bird in
search of new horizons.
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EXPANDING THE INNOVATION HORIZON
Deep business model innovation is
critical.   Product, service and operational
innovations remain important, but competitive
pressures have pushed business model innovation
much higher on the CEOs innovation agenda.
Companies that can substantially change how they
add value to their own or other industries
differentiate themselves and gain a competitive
edge.  
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EXPANDING THE INNOVATION HORIZON
External collaboration is indispensable. CEOs
stressed the overwhelming importance of
collaborative innovation, not just internally
across traditional silos but also externally
beyond company walls. Business partners and
customers were cited as top external sources for
innovative ideas
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EXPANDING THE INNOVATION HORIZON
Innovation can be ignited by business and
technology integration. Technology can enable and
drive innovation. But to truly capitalize on
technologys potential and unleash an
organizations creative energy, technology
know-how must be combined with its business and
marketing insights. CEOs view consistent business
and technology integration as crucial to
innovation
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How to be an Innovative Organization

• Create a Strategic Vision
• Establish Innovation as a Priority
• Create Organizational Structures
• that Promote Collaboration
• Establish Processes to Convert Ideas
• to Innovations
• Allocate Resources
• Train Workforce on Creativity Tools
• Measure Communicate Results
• Recognize Creative Behavior
• Reward Innovative Results

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Focus on People

• Create an external focus
• - define success in market terms
• Be a clear thinker
• - simplify strategy into specific actions,
  make decisions and communicate priorities
• Have imagination and courage
• - take risks on people and ideas
• Energize teams through inclusiveness
• - connect with people, build both loyalty and
  committment
• Develop expertise in a function or domain
• - use depth as a source of confidence to
  drive change

Traitsof anInnovation Leader
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Thanks