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Managing Innovation and Change

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LORENA VILALTA IBÁÑEZ

on 11 April 2014

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Transcript of Managing Innovation and Change

Managing Innovation & Change
INTRODUCTION
Business environment continues to change
Most dramatic changes: transportation technology & information and communication technology
Today's importance of innovation

OBJECTIVES
Drivers of innovation
Global organizational change
Types of organizational change
The roles of people and culture in change processes
Challenges for managers
Relationship between innovation and change
Barriers to innovation and change
DRIVERS OF INNOVATION
Globalization of the world market
Saturated and rapidly shifty markets
Rapid scientific and technological progress
Growing competition
Extreme reductions in product life-cycles
Increasing customer demands
Change of personal values and consumer behavior
Ongoing effort to improve the welfare
Knowledge as a new factor of production
Jim Carroll, a futurist, trends and innovation expert
Development and implementation of an innovation strategy
RELATIONSHIP BETWEEN INNOVATION AND CHANGE
BARRIERS TO INNOVATION AND CHANGE
GLOBAL ORGANIZATIONAL CHANGE
Types of organizational change
Global organizational change
“strategically aligned alterations in patters of employee behavior within organizations operating across national borders”
Three types, and perhaps phases, of organizational change:
1. Anticipatory Change
2. Reactive Change
3. Crisis Change
To anticipate environmental shifts


Make changes through a process
of continuous learning

Follow the path of renewal
Not always easy when performance is good
Performance begins to suffer
Proceeds at a slow path
Signs interpreted differently by managers
Change initiatives moves faster
Problems clear to everyone
Crisis encourage and permit rapid change
What challenges do managers face in implementing change in global organisations?
‘If it ain’t broke, don’t fix it’
Importance of diagnosing the visibility of the need for change
What is the organisation’s management style and what is the management style required for change?
The history of the change processes
Timing

The roles of people and culture in change processes
Innovation is a “new or improved product or service, new process, new market, new sources of raw materials, new type of organization “.

Innovation
Changes in the environment
Changes in the organization
Product life cycle
Innovation
=
Change
the attitude toward change of the CEO
degree of emphasis on innovation in a firm approach
=
Disruptive innovation
Transfer of knowledge to the
subsidiaries
Environment problems
Example: Sustainable innovation
Uncertainty
Aversion at risk
Not enough time
Skills

Jay Cone- Barriers to innovation
REFERENCE
LISTS
Battilana, J. & Casciaro, T. (2013) ‘The Network Secrets of Great Change Agents’.
Harvard Business Review
. 91(7) pp. 62-68.

Business and industry portal (2014) Why business innovation is important. Available at: http://www.business.qld.gov.au/business/business-improvement/becoming-innovative-business/why-business-innovation-important [Accessed: 05 March, 2014].

Carroll, J. (2012) The impact of Globalization. Youtube. Available at: [Accessed: 03 March, 2014].

Cone, J. (2013) Barriers to Innovation. Interaction Associates. YouTube. Available at: [Accessed: 7 March, 2014].

Chesbrough, H. (2010) ‘Business Model Innovation: Opportunities and Barriers’. Long Range Planning. 43 (2010) 354-363. [Online] Available at: http://www.elsevier.com/locate/lrp [Accessed: 6 March, 2014].

Dearing, A. (2000) ‘Sustainable Innovation: Drivers and Barriers’. OCDE http://www.oecd.org/sti/inno/2105727.pdf [Accessed: 6 March 2014].

King, N. & Anderson, N (2002) Managing Innovation and Change: A Critical Guide for Organizations. 2nd edn. London: Thomson Learning. [Online]
http://books.google.co.uk/books?id=PLaXWhzouCoC&dq=innovation+and+change&lr=&source=gbs_navlinks_s page 2. [Accessed: 5 March 2014].

Lane, H.W., Maznevski, M.L, DiStefano, J.J. & Dietz, J. (2012) International Management Behavior : Leading with a Global Mindset. 6th edn. Sussex: Wiley. [Online] Available at: http://HERTS.eblib.com/patron/FullRecord.aspx?p=564901 [Accessed: 6 March, 2014].

Leber, M., Polajnar, A., Pižmoht, P. & Palcic, I. (2014) ‘Supporting Innovation with Knowledge Management’. University of Maribor, Slovenia.

Porter, R. (2012) Ron Porter Shares 3 Barriers to Innovation. Linkage Inc. YouTube. Available at: [Accessed: 7 March, 2014].

SmallBizConnect (2014) Why is innovation important? Available at: http://toolkit.smallbiz.nsw.gov.au/part/14/69/291 [Accessed: 03 March, 2014].

The University of Liverpool Online Student blog (2014) The importance of critical thinking in today’s business environment. Available at: http://blog.liverpool-degrees.com/2012/10/the-importance-of-critical-thinking-in-today’s-business-environment/ [Accessed: 04 March, 2014].

Tidd, J. & Bessant, J. (2011) ”Managing Innovation‬: Integrating Technological, Market and Organizational Change‬” 4th edn . Chichester: John Wiley & Sons Ldt. http://books.google.co.uk/books?hl=en&lr=&id=CVuYk25bkfsC&oi=fnd&pg=PT7&dq=challenges+for+innovation+and+change&ots=X75dyWZ_bo&sig=wXBcawzliLE9l6BOMr1XTQWqhnU#v=onepage&q=barriers&f=false [Accessed: 7 March, 2014].

Yeow, P. & Blazjewski, S. (2007) Knowledge and Innovation: Opportunities and Challenges to Knowledge Transfer between Multinationals and their Subsidiaries (Running head: Knowledge Transfer in MNCs)’. Kent Business School. 154 October. [Online] Available at: http://www.academia.edu/2963578/Knowledge_and_Innovation_Opportunities_and_Challenges_to_Knowledge_Transfer_between_Multinationals_and_their_Subsidiaries [Accessed: 6 March 2014].
(Chesbrough, 2010)
Barriers: confusion or obstruction.

Complementarities and efficiency
are key aspects of business model innovation
Conflict with
traditional configurations of firm assets
prevailing business model
Disruptive innovation
Transfer of knowledge to the subsidiaries
- Bureaucracy as a barrier to knowledge transfer

- Lack of trust and respect barriers to knowledge transfer

- Language and cultural differences

- Lack of continuity

- Myopia and short-term behavior

(Yeow & Blazjewski, 2007)
Environment problems
Innovation
Degradation of the environment
(Tidd & Bessant, 2011)
Sustainable innovation
Sustainable products

Premium prices
(Dearing, 2000)
Sustainability considerations are seen as additional selling points.
(Tidd & Bessant, 2011)


Aversion at risk

Not enough time

Skills
(Porter, 2012)
Key players in change process:
Employees
Unions
Suppliers
Customers
The roles of people and culture in change processes
Understand local differences to determine the process needed to motivate the expected change in employee behaviours
Subsidiaries in different cultures may differ in:
Effective change processes
Proximity to headquarters
Relationship between headquarters


Three types of people who can enable or block initiative:
Endorsers
Resisters
Fencesitters

Battilana & Casciaro (2013)
(Muusten, 2010)
Full transcript