1.

Innovation Process Design (7 steps)

Insight or research and development

 effort is crucial to ensure the survival of the organization.

 Organizations must continually come up with new products or improved ideas for existing
line significant source of profit.

 To turn ideas and technologies into products, construction of models and prototypes are
essential

Design

 designers not only have to consider the degree of standardization they should incorporate

 to achieve a product design that will meet or exceed customer expectations

 Should consider the operations capabilities as well as being within the organization’s cost or
budget.

 five critical goals that need to be consider by designer that are appearance, utility,
communication, ease of maintenance, low costs

Production engineering

 Concerned with the selection of a suitable production system and process structure in
manufacturing the final product.

 The impact of this process selection goes beyond organizational operations, affecting the
entire organization and its supply chain.

 4 Basic process structure:

- Job shop: produce in low output example salons, jewellery , automobile

- Batch: produce general purpose equipment example, brush, paint, soft drinks

- Line: product mode using line system (stock) example, automatic car washes

- Continuous Process: Product always flow through some sequence of production steps.
Example sugar,salt, petroleum

Pilot test

 Allow the designers to test and verify the ability of the product

 Determine a certain level of market acceptance once the product is commercialized.

 Very important stage as many products fail to satisfy performance expectations.

 Example : airbus jetliner has to undergo several testing process before handed to a new
owner

Full-scale production.
  This process requires individuals from numerous functional areas

 to ensure a smooth manufacturing process before the product can be introduced in the
market.

Market launch

 strategy is critical, especially for new products.

 A successful market launch often incorporates marketing messages and identifies key
product benefits with the goal

 By creating awareness and making potential customers keen to try it.

 Example: Mcd promoted varies promotion on the TV

2. Components of Organizational Culture

Paradigm

 Defines what the organization is about, what it does, its mission and its value.

 For example, McKinsey & Company clearly articulates a set of values and they are
prominently communicated to all employees.

Control system

 Used to control the entire organization which includes financial systems, quality systems and
reward systems.

 Emphasizes the importance of monitoring within the organization as it will affect the culture
in the organization.

Stories

 influence the organization culture.

 It contains a narrative of events about the organization’s founders, rule breaking, rags-to-
riches successes, reductions in the workforce, relocation of employees, reactions to past
mistakes and organizational coping

Material symbols

 the corporate headquarters layout, the types of automobiles given to top executives,
corporate aircraft, office sizes, the elegance of furnishings, executive perks and attire.

Organizational structure

 indicates whose contributes are most valued. It shows power structures, highlights
important relationships

 emphasizes what is important in theorganization, which then leads to the organizational

culture.

Power structure

 influences decisions, operations and strategic directions.

 An organization normally appoints two key senior executives, a whole group of executives

 even a department that shapes and crafts the culture in their organization
3. Organization Infrastructure (Vision, Mission, Objective)

A vision

 ‘What do we want to become?’ An acceptable vision creates a complete mission statement.

 Creating a vision statement is the first step in strategic planning.

 Numerous vision statements are made in a short and single sentence.

 For examples, to be the leading entrepreneurial technical university is a vision for Universiti
Kuala Lumpur.

A mission

 what an organization is and its explanation for being businesses with employees

 this statement is the basic for managing their operation.

 A clearly stated mission statement is fundamental for building objectives and strategies.

 Mission statements can vary in content, format, length and specialization.

 Most effective statements usually have 9 characteristics and components such as customers,
product or service, markets, technology, concern for survival, growth and profitability,
philosophy, self-concept, concern or public image and concern for employees.

 To produce enterprising global technopreneurs is an example for Universiti Kuala Lumpur’s

mission.

Objectives

 Specific outcomes that an organization seeks to accomplish after its fundamental mission.

 Objectives are the organization’s hope to attain in the short and long term and the
implications in connecting to growth, products, technologies and markets.

 Should be SMART which stands for specific, measurable, achievable,realistic and time
frame.
Organizational Resources (4)

People

 Truly an important resources for the organizations

 May be most difficult resources to manage
 People seen as a valuable asset that important for an organization succeed
 Knowledgeable people can make difference between success and failure
 The organization must also provide excellent incentives for the employees to
maintain motivation and stay with the organization in the long run

Intellectual Property

 Must be actively protected and properly documented to be for future use and
reference
 Intellectual property include formal engineering drawing, laboratory results, test
data, customer concerns, all formalized documentation models used to demonstrate
feasibility, notebook data, hand sketches and working models.
 Example of Malaysia’s intellectual property:
o Patents Act 1983
o Trademark Act 1976
o Industrial Design Act 1996
o Copyright Act 1987

Access to Information

 Organizations have not been reluctant to invest in information systems.

 Inability to communicate adequate information can limit the performances
 Access to protected information need to be protected carefully.
 Computer also must be authorized

Technology

 Technology involve converting resources into products and services

 Also part of knowledge and resources needed to achieve a goal, involving a body of
scientific and engineering knowledge that can be applied to new or innovative
products
 Technology represents the artifacts developed from applying the principles of
science and engineering.
o Product technologies
o Production technologies
o Introductory phase
o High-viability phase
o Product phase-out and End of life

Marketing and Sales

 For innovation to occur, an item must be sold or sales activity must be take place.
  The innovator must understand how marketing and sales will play in the success of
innovation.
 The type of innovation that will largely determine the marketing and sales approach:
o Incremental innovation: product that been improve from existing product in
line with consumer needs.
o Top-down projects
o Bottom-up

Customers

 Customer will provide valuable input in assisting product improvement and existing
processes.
 Input from customer can be valuable resource when organization try to innovate
new ideas and concept.
 There are two type of customers:
o Intermediate customer or trade customer: dealer that purchase good for re-
sale.
o Ultimate customer: who does not resell but either passes to the consumer
or actually is the consumer.

Suppliers

 Suppliers provided a major resources long before downsizing and outsourcing

became popular.
 Without suppliers, an organization will find it difficult to determine the length of
time for the whole production process.
 The term suppliers may refer to the:
o Manufacturer; uses tools and labour to make things for sale
o Processor: convert a product from one form to another
o Packager: encloses products for distribution, storage, sale and use
o Distributor: middleman between manufacture and retailer
o Wholesaler: sells good or merchandise to retailers, franchise, dealership and
local franchised distribution
o Merchant: a professional dealing with trade.

4.2 Importance of Innovation to individu, society and country.

 Innovation is important to the advancement of society.

 New and innovative products have increased the standard of living and provided
people with opportunities to improve their lives.

 Breakthroughs in medicine and technology have had dramatic to individuals and

communities alike.
2.2 Culture Implement by 3M and Apple Co.

1. Innovation Require a flat, open and agile organization structure. Innovation require adaptability
and change. Apple had a command-and-control structure which made critical decision from the
design of the employee shuttle uses to what food will be serve in the cafeteria.

While, 3M company practices both Virtual and face-to face communication to build relationship

horizontally (across different business) as well as vertically so ideas can share among them.

2. Innovation flourishes when people are given autonomy, flexibility and discretion. 3M
implemented a programmed ‘15% time’ for employees to encourage them to invent on their

own ideas. However, autonomy and flexibility is not part of Apple culture. Employees on Apple work
on what they should work on. Focus is highly valued at Apple.

3. Innovation require openness to failure.

The basic ideas is that cultures that have low tolerance for failure are unable to create breakthrough
innovation. This happened in Apple, with fantastically low tolerance for failure. Apple does not often
fail and when it does it is not pretty sight. In 2008, Apple launched the first iPhone namely Mobile
Me. Unfortunately, MobileMe was failure. Job summoned the Mobile Me team immediately after
the event launch and appointed a new executive to run the group.