Crafting organizational innovation processes
Kevin C Desouza
The Information School, University of Washington, Seattle WA, United States of America
Caroline Dombrowski
The Information School, University of Washington, Seattle WA, United States of America
Yukika Awazu
McCallum Graduate School of Business, Bentley College, Waltham MA, United States of America
Peter Baloh
Faculty of Economics, University of Ljubljana, Slovenia
Sridhar Papagari
Department of Information and Decision Sciences, University of Illinois at Chicago, Chicago IL, United States of America
Sanjeev Jha
Department of Information and Decision Sciences, University of Illinois at Chicago, Chicago IL, United States of America
Jeffrey Y Kim
The Information School, University of Washington, Seattle WA, United States of America
PP: 6
Abstract
Innovation is a crucial component of business strategy, but the process of innovation may seem difficult to manage. To plan organizational initiatives around innovation or to bolster innovation requires a firm grasp of the innovation process. Few organizations have transparently defined such a process.
Based on the findings of an exploratory study of over 30 US and European companies that have robust innovation processes, this paper breaks down the innovation process into discrete stages: idea generation and mobilization, screening and advocacy, experimentation, commercialization, and diffusion and implementation. For each stage, context, outputs and critical ingredients are discussed. There are several common tensions and concerns at each stage, which are enumerated; industry examples are also given.
Finally, strategies for and indicators of organizational success around innovation are discussed for each stage. Successful organizations will use an outlined innovation process to create a common framework for discussion and initiatives around the innovation process, and to establish metrics and goals for each stage of the innovation process.
The paper was featured in Sloan Management Review and has been delivered to a number of global organizations.
This research was partly funded by the Institute for Innovation in Information Management (I3M) at The Information School, University of Washington, under the Leveraging Ideas for Organizational Innovation project.
Keywords
innovation, innovation processes, competitive advantages, organizational capabilities
References
Albert M and Picq T (2004) Knowledge-based organizations: Perspectives from San Francisco Bay area companies. European Journal of Innovation Management 7(3): 169-177.
Albert M (2006) Managing change at HP Lab: Perspectives for innovation, knowledge management and becoming a learning organization. The Business Review 5(2): 17-22.
Argote L and Ingram P (2000) Knowledge transfer: A basis for competitive advantage in firms. Organizational Behavior and Human Decision Processes 82(1): 150-169.
Atkinson W (2003) Make the most of e-procurement tools. Purchasing 132: 46-47.
Benbasat I, Goldstein DK and Mead M (1987) The case research strategy in studies of information systems. MIS Quarterly 11(3): 369-386.
Breen B (2002) Lilly's R&D prescription. Fast Company 57: 44-45.
Brown JS and Duguid P (2001) Knowledge and organization: A social-practice perspective. Organization Science 12(2): 198-213.
Buchel B and Raub S (2002) Building knowledge-creating value networks. European Management Journal 20(6): 587-596.
Chesbrough HW (2003) Open innovation: The new imperative for creating and profiting from technology. Boston MA: Harvard Business School Press.
Christensen CM and Raynor ME (2003) The innovator's solution: Creating and sustaining successful growth. Boston MA: Harvard Business School Press.
Cillo P (2005) Fostering market knowledge use in innovation: The role of internal brokers. European Management Journal 23(4): 404-412.
Chua A and Lam W (2005) Why KM projects fail: A multi-case analysis. Journal of Knowledge Management 9(3): 6-17.
Cutler G (2003) Innovation mentoring at Whirlpool. Research Technology Management 46(6): 57-58.
Dahlin KB and Behrens DM (2005) When is an invention really radical? Defining and measuring technological radicalness. Research Policy 34(5): 717-737.
Desouza KC and Awazu Y (2005) What do they know? Business Strategy Review 16(1): 41-45.
Desouza KC, Awazu Y and Jasimuddin S (2005) Utilizing external sources of knowledge. KM Review 8(1): 16-19.
Desouza KC (2006) 'Knowledge management maturity model: Theoretical development and preliminary empirical testing'. Unpublished doctoral dissertation, Liautaud Graduate School of Business, University of Illinois at Chicago.
Desouza KC and Awazu Y (2006) Engaging tensions of knowledge management control. Singapore Management Review 28(1): 1-13.
Dobni B (2006) The innovation blueprint. Business Horizons 49: 329-339.
Dodson P (2002) Whirlpool eyes youth market; ND students help appliance maker design dorm refrigerator. South Bend Tribune 1.
Dougherty D and Takacs CH (2004) Team play: Heedful interrelating as the boundary for innovation. Long Range Planning 37(6): 569-590.
Gibbert M, Leibold M and Probst G (2002) Five styles of customer management and how smart companies use them to create value. European Management Journal 20(5): 459-469.
Govindarajan V and Trimble C (2005) Ten rules for strategic innovators. Boston MA: Harvard Business School Press.
Hagel J and Brown J (2005) Productive friction: How difficult business partnerships can accelerate innovation. Harvard Business Review 83(2): 82.
Hargadon A and Sutto R (2000) Building an innovation factory. Harvard Business Review 78(3): 157-166.
Heng MSH, Trauth EM and Fischer SJ (1999) Organisational champions of IT innovation. Accounting, Management & Information Technology 9: 193-222.
Higgins J and McAllaster C (2002) Want innovation? Then use cultural artefacts that support it. Organizational Dynamics 31(1): 74-84.
Huston L and Sakkab N (2006) Connect and develop: Inside Proctor & Gamble's new model for innovation. Harvard Business Review 84(3): 58.
InnovationJam - Introduction (nd) IBM Corporation. http://www.globalinnovationjam.com/get_started2006/.
Kambil A, Eselius E and Monteiro K (2000) Fast venturing: The quick way to start web businesses. MIT Sloan Management Review 41(4): 55-67.
Kim WC and Mauborgne R (2005) Blue ocean strategy: How to create uncontested market space and make competition irrelevant. Boston MA: Harvard Business School Press.
Kodama M (2002) Transforming an old economy through strategic communities. Long Range Planning 35(4): 349-365.
Kramer H (2006, July 30) Brainy website takes advances to market. New York Post.
Lee AS (1991) Integrating positivist and interpretive approaches to organizational research. Organization Science 2(4): 342-365.
Lengnick-Hall CA (1992) Innovation and competitive advantage: What we know and what we need to learn. Journal of Management 18(2): 399-429.
Levinson M (2006) Imagination at work. CIO Magazine, 15 August.
Melymuka K (2004) Innovation democracy. Computerworld 38: 31-32.
Miles MB and Huberman AM (1994) Qualitative data analysis: An expanded sourcebook 2nd edn. Thousand Oaks CA: Sage.
Mueller G, McKinley W, Mone M and Barker V (2001) Organizational decline: A stimulus for innovation? Business Horizons 44(6): 25.
Mui C (2006) 'Edge' technologies go mainstream. Optimize April: 54.
Newman J (2006) Making GE's devices. Knight Ridder Tribune Business News, 03 July 3: 1.
Pettigrew A, Massini S and Numagami T (2000) Innovative forms of organizing in Europe and Japan. European Management Journal 18(3): 259-273.
Raub S and Von Wittich D (2004) Implementing knowledge management: Three strategies for effective CKOs. European Management Journal 22(6): 714-724.
Richard J (2002) Whirlpool moves beyond laundry; trusted appliance company trusts brand loyalty with a range of technologically advanced products. Toronto Star C04.
Rigby D and Zook C (2002) Open-market innovation. Harvard Business Review 80(10): 80-89.
Sawhney M, Prandelli E and Verona G (2003) The power of innomediation. MIT Sloan Management Review 44(2): 77.
Schrage M (2005) Innovation alchemy. CIO 19(4): 1.
Sheridan D, Graman B, Beck K and Harbert J (2001) Improving from the inside out. Appliance Manufacturer, pp.82-84.
Smith H and McKeen J (2005) Developments in practice XVIII - Customer Knowledge Management: Adding value for our customers. Communications of the Association for Information Systems 16: 744-755.
Smyth H and Longbottom R (2005) External provision of knowledge management services: The case of the concrete and cement industries. European Management Journal 23(2): 247-259.
Sutton R (2002) Weird ideas that spark innovation. MIT Sloan Management Review 43(2): 83.
Teather D (2005) Financial: Profile of a giant: Five-bladed razors, billion-dollar budgets and Chinese cold-water shampoo: The $57bn marriage of Gillette with Procter & Gamble - the best a brand can get? The Guardian 27 October: 28.
Tushman ML and O'Reilly CA (2002) Winning through innovation: A practical guide to leading organizational change and renewal. Boston MA: Harvard Business School Press.
Viaene S and Cumps B (2005) CRM excellence at KLM Royal Dutch Airlines. Communications of the Association for Information Systems 16: 539-558.
Von Oetinger B (2004) From idea to innovation: Making creativity real. Journal of Business Strategy, 25(5): 35-41.
Von Oetinger B (2005) Nurturing the new: Patterns for innovation. Journal of Business Strategy 26(2): 29-36.
Von Krogh G, Ichijo K and Nonaka I (2000) Enabling knowledge creation. New York: Oxford University Press.
Waarts E and van Everdingen Y (2005) The influence of the national culture of the adoption status of innovations: An empirical study of firms across Europe. European Management Journal 23(6): 601-610.
Warner F (2001, October) Recipe for growth. Fast Company 51: 40-41.

eContent Home




