4 Challenges of Contemporary Management
CHAPTER LESSONS
Why is managing innovation a critical challenge in today’s business world?
KEY TERMS
LEARNING OBJECTIVES
A Great Idea!
LO 4.1.1 Innovation in Organizations
What is Organizational Innovation?
Smart office buildings with personalized environments controlled via a smartphone app are examples of organizational innovation. Can you think of any other examples?
sophisticated handheld computers in their pockets – today’s smart-
The Innovation Process
There are four key steps in the innovation process, as an idea is developed from concept to reality.
Why is it important to make prototypes before manufacturing the real product intended for customers?
Key Innovation Types
1. Product Innovation
tangible improvement on the existing offering. Many new products
A hybrid car is an example of product innovation. What other examples can you think of?
2. Process Innovation
3. Paradigm Innovation
4. Position Innovation
The Relationship Between Types of Innovation
Net Knowledge
What are the ‘4 Ps’ of innovation?
LO 4.1.2 Managing Innovation
Why Innovation Matters to Organizations
Figure 4-3 The Benefits of Innovation
Solving Business Problems
Increasing Productivity
Creating Competitive Advantage
competitive advantage over these rivals. Conversely,
Reducing Cost and Increasing Revenue
Innovation Management Principles
The extent that an organization takes an innovative stance
In what ways do you think a company can facilitate a creative work environment?
Figure 4-5 Components of Creative Work Environments There are six components that encourage a creative work environment.
What are the key benefits of innovation and the key innovation management principles?
1. Which of the following is not one of the 4Ps of innovation?
The successful implementation of creative ideas in organizations is known as
Suggest several ways in which a manager can encourage a creative work environment, citing examples.
Do you think that innovation is possible in every business environment? Give reasons for your answer.