The world has become a global village and Internet has changed the traditional business management by opening the gates of a world that desires and demands more. In this world of Internet, everyone seeks and shares more. The new customer expects more and the traditional speed and ideas of businesses are not enough for him. This new customer demands imagination and innovation. He has new requirements and needs new products. All companies understand that they cannot sell only one product for years with the same ideas and need fresh ideas to make something new. So how do the companies get different ideas for new products and services? This is done by innovation management.
Innovation management is more than gathering fresh ideas for new products and services. It also concentrates on mobilizing and competing. Innovation is necessary for competition. It’s important to be imaginative and creative and come up with new ideas. Companies need to redefine and repurpose what they have and they do the same by using the new knowledge to offer a new product or service that customers want.
How does it work? Innovation management involves inception of ideas, prioritization, implementation and evaluation. Inception is traditional innovation approach to collect the ideas. The ideas may come from the email suggestion or direct requests from customers asking for specific features for a product. It can also come from the analysis of market trends. Inception helps in identification of problems, generation of ideas and problem-solving. Prioritization comes after Inception. Organizations collect numerous ideas and the process of organizing these ideas in accordance to their importance is prioritization. Prioritization involves filtering and selection of the most suitable ideas for further development or implementation. Implementation, as the name suggests, is a process of managing and creating the necessary conditions for research, team creation and financing to make a prototype product based on prioritized ideas and see how it works. Finally, the outcome is evaluated.
Goals of innovation:
- Improving quality
- Creation of new market
- Extension of product range
- Improving production process
- Replacement or improvement of product and services
Innovation management helps in creating new business models, products, services and technologies specially designed for the constantly changing market. It also enhances customer satisfaction and employee engagement. In the age where a company uses digital technology to improve its performance and service, other competitive companies are challenged with the need to innovate more and quickly. Innovation management improves business growth and helps such companies to stay ahead of their competitors.