Innovation Flashcards
Innovation Definition
“The introduction of newness into a system usually, but not always, in relative terms and by the application (and occasionally invention) of a new idea”
This produces a process of transformation that brings about a discontinuity in terms of the subject (service/product) itself and/or its environment (organization/market/community)
Questions in Innovation
Market Pull or Research Push?
Organizational Distress or Organizational Slack?
Who benefits and how?
Product or Process?
Relationship between the impact of an innovation on its organizational context (process) and upon the wider market (product)
o Niche-creation
o Regular
o Architectural
o Revolutionary
What is an Innovation in the Public Sector?
Innovation is a word that labels a concept
Innovation has a strong positive normative overtone
Innovation is risky: People in government fear nothing more than newsworthy failure
Historically, the public sector has been a major source of innovation, e.g. the Internet and the World Wide Web
Innovation in the public sector is nothing new: public authorities have been promoting, adapting to, and regulating innovations
Innovation is the introduction of new elements into a public service – in the form of new knowledge, a new organization, and/or processual skills
Innovation Process MODEL
-
Innovation vs. Change
Change and innovation are overlapping phenomena
Change is a broad phenomenon that includes the gradual improvement/development of:
o The design of service
o The structure of the organization providing it
o The management/administration of the organization
o The skills required to provide and manage the service
Innovation is a specific form of change: It represents discontinuity with the past
Classification of innovation MODEL
-
Roles of Public Organizations & Customer
o Users of new innovations (adopting innovation)
o Key partners in user-producer developments (generating innovation)
o Suppliers of complementary services and infrastructures
o Innovators in its own right
o Regulators
Different types of innovation
Service innovation Service delivery innovation Administrative and organizational innovation Conceptual innovation Policy innovation Systemic innovation
How does innovation spread
Innovation Diffusion and Innovation Adoption
Definition of innovation diffusion:
o “the process by which an innovation is communicated through certain channels over time among the members of a social system”
4 main elements diffusion
innovation, communication channels, time and the social system
Definition of Innovation adoption
o The process that results in the assimilation of a product, process, or practices that is new to the adopting organization
5 Stages of Adoption MODEL
-
Innovativeness (in innovation diffusion theory)
o The degree to which an individual/member is relatively earlier in adopting an innovation than other members of his social system
Speeds in Rate of Adoption
Innovators Early Adopters Early Majority Late Majority Laggards
The impact of innovation on the organization
Innovation seeks to improve organizational performance
Organizational performance is often analyzed by focusing on productivity, excellence and the number of innovations adopted
The adoption of innovation is facilitated by the innovativeness of an organization
Public sector innovativeness is the capacity of a public organization to generate new ideas, processes, practices, or programs (considering multiple innovations)
What factors influence the Innovative Capacity of Organizations
Formal Structure o Organizational Structure Internal Environment o Organizational Culture External Environment o Competitive environment, network theory
Public sector innovativeness is shaped through ongoing tensions between constraining and enabling factors, such as:
o Budget o Leadership o Innovation process o Organizational culture o Motivated individuals
Holistic View: Factors influencing Innovation
External Incentives o Innovation drivers & facilitators Public Sector entrepreneurs o Entrepreneurs are the driving force of innovation, creative individuals, well-connected, risk takers, have certain skills in developing new contacts Bottom-up and Top-down innovation o Top-down: political entrepreneurs o Bottom-up: Service entrepreneurs Impact of NPM on innovation o Acquiring and developing private sector management skills and practices Customer implications
Key needs for funding innovation
Shaping the nature of public service innovation
o Priorities have implications
Funding strategy
o Selection of the type of innovation to be funded
Opportunity costs
o Innovation needs time, energy and resources
No window dressing
o Real innovations following the given definition
Risks and the potential for failure
o Sharing of risks and potential for failure with stakeholders
Key needs for managing innovation
Innovation is not a discrete phenomenon
o Each type of innovation requires a different approach
Organizational structure only as basis
o The innovative capacity of an organization is influenced by several factors
Positive orientation to the external environment
o Stimulate, support, and integrate innovative activities by being open
No isolated hero innovators
Shaping the environment