UNIT II:

OPPORTUNITY RECOGNITION
& ASSESSMENT
GROUP 1
 What do we mean by
innovation?
Innovation is crucial for businesses in a
rapidly changing global economy, involving
efficient management of processes to deliver
new products or enhance existing ones, often
requiring complex procedures and context
conditions.
DEFINITION
The process involves creating,
developing, and introducing new
products/services or procedures
to benefit stakeholders within an
organization, ensuring they are
new to the organization itself.
 WHAT IS INNOVATION?
Peter Drucker maintains Smith and Ainsworth (1989)
that innovation is Kanter (1984) says say that, in the broadest
systematic and focused simply that sense, innovation includes
the idea of invention and
and requires new innovation refers to
discovery, but goes beyond
knowledge and a change the process of
it. It is anything that provides
in perception. He goes on bringing any new,
usable, unique novel
to state that Innovation problem- solving
solutions to problems,
takes (hard) work rather idea into use.
opportunities or challenges
than genius. (Drucker, – whether small or large.
1991).
importance of innovation
Innovation is important to organizations in the
forest sector because of:

Competitive pressures and the need to

survive
The management of a firm or enterprise.
Managers have to implement change, new
processes and improvements in systems.
The impact of innovation on organizational
life.
The impact of innovation on
organizational life.
As with most complex relationships,
innovation is more, ‘art than science’ and
outcomes tend to be both psychological
and materialistic in nature. In any
particular case, the ‘outcomes mix’ varies
according to the nature of the innovation
and the organisation undertaking it.
Outcomes from the
innovation process
Tangible outcomes
➢ Increased corporate success in
measurable terms
➢ Greater efficiency.
➢ Happier, more flexible and more
productive employees.
➢ A more modern, high-tech
working environment.
➢ Continuous improvement.
Outcomes from the
innovation process

Intangible outcomes
➢ high level of confidence
➢ innovative attitude
➢ increase in team cohesion
➢ change in leadership style.
DISRUPTIVE TECHNOLOGY
Disruptive technology is an
innovation that significantly
alters the way that consumers,
industries or businesses
operate.
TYPES OF INNOVATION
(Higgins 1996)
1. Product innovation
2. Process innovation
3. Management innovation
4. Market innovation
Technological
Differentiated
Architectural
Complex
TYPES OF INNOVATION
Product innovation - the development of a
new or improved products.
Process innovation - the implementation of
a new or significantly improved production
or delivery method.
Management innovation - the
implementation.
Marketing innovation -involve significant
changes in product design or packaging,
product placement, product promotion or
pricing.
Recognizing innovation in marketing and
distribution strategies and techniques

Marketing and distribution involve

bringing products or services to buyers'
attention, creating desire, ease of
purchase, and need satisfaction. With
advancements in technology, the
process becomes more sophisticated.
Innovations break normal patterns,
changing customer relationships.
Innovation strategies can be divided into
four categories.
 Technological (New and novel
products in an un-novel market)

Novel products and services

satisfy customer needs, like film
optics replacing copper wires in
telephone systems, improving
services and call clarity, driven by
developer innovation.
Differentiated (Existing products in an
existing market)

Differentiated products in an existing

market use prices, packaging, or
product support to differentiate
between products, as they are
relatively well-known and the only
way to differentiate between them.
Architectural (Existing products in
a novel market)
Architectural innovation introduces
existing products to new markets
by targeting new customers
through rebranding and creative
modifications, using collaborations
to shift perceptions and drive
adoption.
 Complex (Novel products and services
being introduced into novel markets)
The development of multi-media
machines and IT-integrated offices
combines similar technologies for better
efficiency. Marketing these products
requires creativity and intuition, focusing
on innovative product design to capture
buyers' attention.
CHARACTERISTICS OF INNOVATION

Significant
characteristics of an
innovation include:
Timing
Radicalness
Speed
 TIMING

Timing influences the contribution

and relevance of an innovation,
as even the most novel ideas
may seem absurd if introduced
too early.
 Degree of radicalness

Innovations are either radical or

incremental. Radical innovations aim
for large-scale change through a
rational approach, while incremental
innovations develop gradually,
leading to smaller, progressive
changes.
 Speed of innovation

The speed of innovation is crucial,

impacting cost, quality, and
competitiveness. While fast innovation
can offer an advantage, many
organizations struggle with it. Simply
pushing to work faster can lead to
burnout.
7 SUCCESS
FACTORS FOR THE
INTORDUCTION OF
INNOVATION
MANAGEMENT
1. Management commitment
to Innovation

The support of all managers

from top to bottom is crucial
to ensure the necessary
resources and time for
innovation activities.
 2. Strategic orientation

A clear innovation strategy

outlines the goals of innovation,
its contribution to corporate
strategy, and the search areas
and trends that are strategically
relevant.
3. CLEAR RESPONSIBILITIES

Clearly defined roles and

responsibilities ensure
that the necessary skills
and resources are
available for innovation
projects.
4. innovation culture

A positive innovation culture

that welcomes and
encourages innovation is
crucial for the success of the
innovation process.
 5. CHANGE MANAGEMENT
The introduction of innovation
management requires a change and
also the implementation of innovations
themselves necessitate changes. These
changes can only become effective if
they are supported by all employees
themselves and if the workforce itself
actively changes.
6. Integration of all employees

Innovation is not something that only a

limited, elitist circle of employees does or
is even boosted by the innovation
manager. Innovation must be actively
initiated and supported by all employees.
That is why the innovation manager must
involve all employees in a targeted
manner.
 7. COLLABORATION
Cooperation is an essential success factor in
innovation processes and projects.
Innovations always happen in interdisciplinary
teams and require the cooperation of many
employees. It is important, however, that
everyone pulls together and pursues a
common goal. Otherwise, different demands
lead to silos, lack of cooperation and support
or problems at the interfaces. which in the end
can seriously slow down an innovation project
or even cause it to fail.
 Innovation Process
an organizational method that divides
the uncertainties within an innovation
project into clearly subdivided steps
and decision points to drive
development forward efficiently, while
at the same time avoiding potential
risks.
- begins with a felt need for change.
- closely related to problem solving.
A problem - difficult or challenging situation
that bears improvement.

Problem-solving - is the thinking done to

improve things (Smith, 1998b).

Inventions - early stage of innovation

- concerned with the generation and
development of novel ideas.

Design - is the development or devising of

complex things.
IDEA GENERATION
the mental production of
possibilities or alternatives,
must be performed at various
points in most problem-
solving episodes.

Creativity - fixed trait or as an

acquired repertoire of mental
skills, habits, and attitudes.
Thank
You