Before we proceed with the concept of innovation management, we must understand the meaning of innovation. The terms idea and invention are often associated with innovation. If we look at it from an economic point of view, innovation comes from something new that proves beneficial for society. The same applies in the case of an organization.
However, there is a difference between invention and innovation. The invention is yet to be exploited or used as a creative achievement compared to innovation.
Companies constantly use the term 'management.' It represents the coordination of tasks and activities to achieve defined goals and purposes. So, innovation management refers to the systematic promotion of something new in organizations. That consists of organization, task planning, control, and management.
The framework of innovation management works to generate the following benefits:
- New products and services for conquering markets.
- Improved products and services to give competition.
- Improvement of internal processes to save costs or strengthen the organization.
- Development of new business models.
The meaning of Innovation Framework
An innovation framework is a designed strategic structure that enables organizations to investigate ideas, analyze their strengths and weaknesses, and make strategies. This helps them turn ideas into opportunities that generate value for the organization.
This concept is significant as it helps us understand the framework of innovation management.
The Framework of Innovation Management
A common misconception about innovation is it is a finished new product or service. However, a small view of the concept often brings limitations and complications to innovation-building and idea-generating processes.
To avoid the same, organizations opt for a framework of innovation management.
Offering concentrates on what a new product or service has to offer. We can divide this framework into three categories - offering, configuration, and experience. The configuration model is about internal elements of innovation in an organization. The experience category is all about customer or client experience.
An innovative management framework is an assessment tool that applies to all business innovations. This helps organizations identify strengths, weaknesses, and other potential growth opportunities.
Vital Elements of the Framework of Innovation Elements
You need to consider some core elements when building a framework. Some of these are listed below:
- Profit model: A profit model identifies different and continual ways to improve the profits and revenues of an organization. It is vital to produce new and innovative profit models. Organizations need to follow the same even if the main activities generate sufficient cash flows. It helps them assess and evaluate customer value and demands.
- Network: This particular pointer talks about the collaborative tactics of an organization. Companies need to remain connected in the digital era. So, they must collaborate and work together for mutual interests and goals. It helps them assess their skills and internal capabilities.
- Structure: This element deals with the asset management of organizations. It includes tangible and intangible assets and comes under incentives, IP, brands, resources, etc. A structure helps them monitor the design and structure of their assets.
- Process: The process focuses on the efficiency and effectiveness of the internal business workings. It helps create an exceptional reduction in costs and create opportunities for new products or services.
- Product performance: This element deals with product-and-process innovation. You can call it a popular interpretation of innovation as it helps improve the capabilities and performance of a product or service.
The framework of innovation management is significant for all organizations. It helps them create better ideas and strategies when launching their products and services. Moreover, the same framework also proves vital when working on restructuring the existing products and services. So, every organization must follow the elements of this framework to succeed in the long run.
Looking for the best courses in innovation management? Enroll yourself in MIT ID Innovation and be a pioneer of the best ideas and strategies.