Innovation by yaofenji


Innovation is often defined as inventions and ideas translated into products or services that
are brought to market. Innovation is therefore the process from idea to invoice. Innovation
involves the following three elements: A new idea that turned into a new or improved
product, and finally that this is marketed. Copenhagen Business School defines innovation
by innovation occurs when technology and inventions combined with business acumen in
an effort to solve real challenges and issues. [1]
However, this definition is too narrow because it limits itself to a product - be it concrete or
as a service. Innovation covers, also called process innovation. It is ideas, which aims to
introduce improved processes in the company or organization. When processes are
defined here as all internal company functions and organization of market surveillance,
financial and product development to management, production, management and
With the addition of new component knowledge in the broadest sense, as a fundamental
element of innovation when we hereby forward a definition of innovation as: Activities, as a
result of new knowledge, develop new opportunities for the exploitation generates a value.
The strength of this definition is that it is both brief and yet very broad. Its weakness is the
very broad concepts: activities, new knowledge, development, new opportunities, use and
The concept of activity whereas innovation is the result of a sudden impulse or inspiration,
but of a conscious quest through a process of acquiring new knowledge of data processing
and generation of ideas and opportunities for selection and development of products and
processes for use on marketing or implementation.
New knowledge must be mentioned is considered as an intrinsic element. Innovation will
always mean that something be done differently or in a different way, which necessarily
implies new knowledge. However, there is no requirement for the new knowledge quality,
scope or nature. It does not therefore have knowledge related to new groundbreaking
basic research, or objectively is new, only it is new to those involved. Often these are "old"
knowledge used in a new way.
It is thus important to understand that innovation involves a process that processes the
new knowledge and generates new ideas, of which the best developed for new
opportunities. Often they are the new opportunities in the interface between different types
of knowledge, or when the familiar elements are combined in new ways. A typical example
would be an expanded awareness of customer needs, combined with new skills or
technological capabilities in the organization, representing the so-called user-driven
Finally, it is a requirement that the product or process exploited through marketing or
implementation in a way that generates value. For processes, this means an improved and
ultimately more profitable operations of the company. New or improved products and
services to generate value for customers, which allows the manufacturer to obtain an
advantageous price, and thus again a profitable company.
Innovation and subject economics

There are several issues which may involve:

1. Metrics to identify where innovative company is
2. Investment Problems, Is innovation profitable

3. Financing Considerations Can we raise the money

4. Project Economics:
Strategic (cost management, are contained in paragraphs 2 and 3).
For the project (cost control)

Ad Item 1 Measurement points:
This company should, as with the Balanced Scorecard identify some points. These can be
both quantitative and qualitative. Here are some examples which may be based on when
you have to measure how innovative the company is happy to benchmark against the
nearest competitor:

1 Is the concept of "innovation" part of its strategic objective
2 Does your organization have a separate project organization responsible for
development / research.
3 If you have a budget for development (R & D) / innovation
4 Number of projects being worked on currently.
5 When did you last developed a product / service as earned on.
(Timeline showing the company's historical development of products / business areas)
6 If there are in the organization financial management of development projects (budgets
and follow-up)
7 If you have some "prototypes" now?
8 How many patents do we have?, How old are they
9 Does your organization have ease of implementing new technologies and business
ideas. Looking at change as a threat or seeks them. Does the staff knowledge or you are
individually oriented?
10 How big is the R & D costs as% of turnover (perhaps in DKK)
How many employees are attached to the R & D
11 20% of its revenue from projects launched within the last 3 years.
12 Placement of its products apart from strategy models such as Boston and Ansoff
model. Or perhaps. PLC curve.
13 Mention the names of its most creative employees
Have these people the right conditions for creativity to flourish

Measuring innovation:
Here are the class bid on metrics for innovation:

Questionnaire about. employee satisfaction
Questionnaire to identify employee satisfaction. It also aims to portray about the company
can continuously improve employee satisfaction. Can also look at replacing the employee.
- Innovative through unity: Socially run activities.
- Training and courses.
Innovative marketing
Follow-up studies, which seek to portray the company's marketing is to capture market
share and new customers. Look at customer portfolio.
- Look at the current relationship between sales and marketing and customer segments.

The customer's perception of the company's innovation
Communicating with clients through interviews, to explore the range and product
development of votes in accord with the ideas that the company has about taste,
technique and quality.
- Experiencing the customer innovation from the expectations they have for the product /

Replacing the range
Purchasing Division's collaboration with suppliers and their willingness to change
procurement strategy and new range.
- Increased replacement range = signs of innovation.

Courses and training
Management's willingness to send staff on courses, training and collaboration with external
- Measurement of employee participation in the above mentioned.
- Employee Satisfaction Survey
- Competitions
- Number of applications (eg creative)
- Time for Innovation (hours)
- Number of new ideas (product and service)
- Process Development

Employees' pride in the company. (Measured in questionnaires.)

Life of clients (how long they will keep customers)

The influx of new customers

The number of new campaigns

The effect of campaigns (response)

The influx of applications for a job / unsolicited

Is your concept copied (first mover)

Geographically one place. We assume there is a higher probability of innovation if the
central forces are gathered.

What are the requirements in the industry! What is PLC requirements. Those with low
lifetime PLC assumes a greater claim to be innovative
External goals such as Gazelle: Who manages to flourish in times of crisis (transition
readiness, etc.)

Re point 2 Investment Problems
(Strategic-cost management):
1. The market must be quantified (marketability).
2. Product price must be found.
3. Produktkalkulation compiled (outsourcing), Commodities?, Quality?
4. Performance Budget incl. Fixed Cost (ABC cost)
5. Cash Budget
6. Investment funds of tid0 mapped
7. Timescale and interest are determined (risk)

From the above it is possible for the company to establish an investment calculation with
the calculation of NPV, IRR, Pay-back time or annual profits to decide whether the
investment should be made or not. One objective here is to choose between different
projects (priority)

Ad section 3 Funding Considerations:

Do we have money for investment? Equity financing versus debt finance.
If capital structure is defined at the strategic level, from a chosen risk profile you should
stick with this profile and do not change significantly in leverage / robustness.
To be financed with foreign capital, how should this be obtained, short or long term debt.
If it is determined by equity, this then extends to the sale of new shares? Or we have the
reserves of the company.

Ad Item 4 Project Economics:

Management areas are money, time and product.
1. There must be budgets and follow up on budgets (Budget Control)
2. There should be timetables set milestones
3. When should the prototype be ready
4. Final approval and launch of production

Innovationlab is a website where you can gather inspiration
and ideas to increase innovation in the enterprise. Here is a small excerpt from the

The ball with Tom Tom's name is currently being forged in a vækstinkubatorium in Silicon
Valley. Nokia and Goodle will probably also touched on the same occasion - and the
company whose cast pt. is extremely hot, called Cloud Made.
Cloud Made To change the future of mobile and digital maps, this actually also the
dominance of the GPS market. They must be free, interactive and facilitate the
democratization of spatial data that provides new perspectives in the delivery of
customized location-based and highly personalized experiences. By launching
OpenStreetMap - a community project currently. has just over 170,000 card developers
and trackers worldwide, delivers Cloud Made the Open Source platform they want to map
the entire world in a new and more detailed way. The cards must be able both to deliver a
mainstream service ala Google Maps, but also niche cards, cards for the public, short for
corporate cards for single people, all. Found transferee Nick Black, calling it a Turkish
bazaar, where every day can get anything you want - albeit a little inspiration for the ride
Cloud Made Platform allows so that they themselves create their own totally personalized
maps where, in addition to self-determination of the graphic layout even provides detail
level and the combinations of all information and niche maps.
 Eventually, the database will be so well developed that it can navigate you around for very
specific concerns, while screening out all the unnecessary information you do not want.
Bikes you example, you might opt for the alternatives of trails and out of view of the main
roads and motorways. You may also opt for water lines, a few sites along the way and the
most important: good weather. What a wonderful trip. It all made possible by real-time
sensors and GPS tracked routes in OpenStreetMap.

Or how about a map showing available parking, a Starbucks and the nearest free WiFi
when you have half an hour on the hand before the next meeting of the city? The
possibilities are endless and with less Tom Tom ranging innovation helmet and starts to
think in Freemium versions of their currently relatively expensive service, so would most of
us will soon be gratifying to convert this upcoming bold and free service. The first apps for
the iPhone is coming at a price of $ 1.99 compared to TomTom's iPhone app for $ 179!

Innovation without magic
By Lene Rimestad Friday 23 October 2009, 06:00
A retardant, conserving or evolving culture - and a strategy implemented in the enterprise -
decide whether innovation can succeed.
• Lean and innovative at the same time? (09.10.09)
• Innovation requires cardiac blood (02/10/2009)
Currently it seems as if innovation is the magic answer to a lot of bad questions. What can
foster the growth of the global recession? Innovation. By what means we will raise the
climate challenge? Innovation. How to survive the old company when small competitors
will eat up the market in fiery mouthfuls? Innovation. Innovation. Innovation.
But innovation is not magic, writes author Trine Nielsen in one of the most recent
publications on the topic "Innovation ABC" from Gyldendal Business.
There's nothing mysterious at innovation. On the other hand requires that innovation
becomes part of the company. Becomes a state enterprise is constantly present in and not
something you do sometimes.
Trine Nielsen peels the classic and recent literature on innovation and make it alive with a
wide range of experience from international and Danish companies such. Google, Apple,
Procter & Gamble, Lego and Lån & Spar.

It costs time
As the first reader is a little test. Here you can determine whether your company has an
inhibitory, protective or developmental culture. Watching it change as a threat and
knowledge as something individual, it is obviously harder to get the innovation.
The companies that succeed with innovations, attaches the highest priority and bring
considerable amounts of time for it, such as. Google, whose employees spend 20 percent
of working on own projects, or Lån & Spar, where employees must also spend one day a
week to work with innovation.

Trine Nielsen lists six suggestions on how the company can change the culture from
inhibiting to stimulating:
1. Be close to its customers, both present and future.
2. Let innovation included in the strategy.
3. Know your employees' skills and abilities.
4. Led change.
5. Have a focus on resources, knowledge sharing and collaboration.
6. Have clear processes, tools and methods.
Hear interview with Trine Nielsen JP Radio.
Customer knowledge
Especially customers have a central role in innovation because they know the products
and also like to know what they want changed in order to continue to use it. With new
social media and intensive customer care and contact the company can get many valuable
input for new products and changing services.
Trine Nielsen has long been involved in innovative processes, and the book's greatest
strength is indeed the many inspiring examples, combined with a theoretical framework
gives a good overview of the topic, from management perspective.
It is an easy book that gives the leader a number of handles, so she can evaluate its
business potential and obstacles to work with it.
The book's title suggests a review of innovation from one end to another, and it lives
largely up to, but only at company level.
Both research on creativity and research meetings and meeting management can
contribute further to describe the innovation at the micro level. For one thing to put
together a team with diverse and essential skills and have the right motivational culture
with a daily incentive to contribute new ideas. Something else entirely is to get the team to
play together and get the innovation to become a respected part of daily life.
Lars Kolind has also bid on how to assess the degree of innovation in an organization.
Follow the following link:

The interaction between off.sektor and private industry is essential when the innovation
should be promoted

If you are not continually trying something new you die

Management is about to turn talent into performance

The Danes are the world's most modest people, so at that point, as in all others, we are
leading Piet Hein

A little facts about innovation:
Cultural Revolution:
Employee Culture => competition culture => Innovation Culture

Denmark Business 2004:
Research-driven Innovation 0.6%
User-driven innovation 22.5%
Price-driven innovation 70.0%

The number of engineers in the year 2010
UK 2,386
India 500,000

Everything we said about the Internet is becoming a reality
Developments in e-commerce in 1998 approx. 0 million in 2003 approx. 20,000 billion.

UK was in 2004 No. 4 in the world in terms of generating growth through productivity

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