A useful way to visualize the relationship between the operations and innovation activities is presented in Figure 1.5. This figure illustrates an activity diagram with two activities labeled with active verbs: Operate and Innovate. The first activity, Operate, converts orders from customers into goods and services that fulfill customer orders. Other inputs include raw materials and resources such as product specifications and processes. All three inputs are needed to produce the output. The second activity, Innovate, is about making beneficial changes to products, processes, and services. It has an entirely different set of inputs and outputs. The major input is new demands from customers and other major stakeholders. These new demands can stimulate the generation of ideas, and new ideas can be converted into new product specifications and new processes for the Operate activity. The relationship between Innovate and Operate is symbiotic. One serves the customers; the other changes the way the customer is served. This figure is simplified and incomplete, but it illustrates the two core activities in any organization. Although the majority of innovation output is focused on improving operations, certain innovation output is focused on the innovation activity itself. Thus, the organization not only strives to change operations in terms of new products, processes, and services but also changes the means by which the innovation itself is achieved. This book is focused primarily on the innovation management process and how it can be enhanced in organizations so that it can be more effective and efficient.
EXAMPLE: Innovation is applicable to any type of organization, profit or nonprofit, and also at various levels within the organization, from management teams and departments down to large project teams and even individuals. Innovation can occur in products, processes, and services and can involve radical or incremental changes that help an organization to grow in many ways. Table 1.1 presents a list of organizations that have developed their own innovation plans. The names of the organizations have been altered to protect confidentiality, but the URLs of similar organizations are real. Notice that some organizations are entire businesses, whereas others are departments within larger organizations.
Summary
Every organization needs to innovate. Innovation is as relevant to a hospi- tal, movie theater, or press office as it is to a manufacturing plant or prod- uct design department. Innovation is the process of making changes to something established by introducing something new that adds value to the customer. Innovation is not to be confused with invention. It can be radical or incremental, and it can apply to products, processes, and services.
A useful way to visualize the relationship between the operations and innovation activities is presented in Figure 1.5. This figure illustrates an activity diagram with two activities labeled with active verbs: Operate and Innovate. The first activity, Operate, converts orders from customers into goods and services that fulfill customer orders. Other inputs include raw materials and resources such as product specifications and processes. All three inputs are needed to produce the output. The second activity, Innovate, is about making beneficial changes to products, processes, and services. It has an entirely different set of inputs and outputs. The major input is new demands from customers and other major stakeholders. These new demands can stimulate the generation of ideas, and new ideas can be converted into new product specifications and new processes for the Operate activity. The relationship between Innovate and Operate is symbiotic. One serves the customers; the other changes the way the customer is served. This figure is simplified and incomplete, but it illustrates the two core activities in any organization. Although the majority of innovation output is focused on improving operations, certain innovation output is focused on the innovation activity itself. Thus, the organization not only strives to change operations in terms of new products, processes, and services but also changes the means by which the innovation itself is achieved. This book is focused primarily on the innovation management process and how it can be enhanced in organizations so that it can be more effective and efficient.EXAMPLE: Innovation is applicable to any type of organization, profit or nonprofit, and also at various levels within the organization, from management teams and departments down to large project teams and even individuals. Innovation can occur in products, processes, and services and can involve radical or incremental changes that help an organization to grow in many ways. Table 1.1 presents a list of organizations that have developed their own innovation plans. The names of the organizations have been altered to protect confidentiality, but the URLs of similar organizations are real. Notice that some organizations are entire businesses, whereas others are departments within larger organizations.SummaryEvery organization needs to innovate. Innovation is as relevant to a hospi- tal, movie theater, or press office as it is to a manufacturing plant or prod- uct design department. Innovation is the process of making changes to something established by introducing something new that adds value to the customer. Innovation is not to be confused with invention. It can be radical or incremental, and it can apply to products, processes, and services.
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