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TEACHER: Hello, Student. Our discussion starts offevolved with the description of two essential ideas: understanding and can-do.

Technology way knowing how to do something: the know-how. Every industrial employer desires to own the expertise in a few manners, no matter how easy it might be.

But to actively participate in the marketplace, information must be complemented with the potential to apply the era, the can-do. Innovation Management

Can-do is a have to. A company may additionally have the technical understanding of a given productive technique, however, it cannot apply it profitably without the manner to perform it correctly. Can-do consists of the availability of educated employees, capital items (machinery and installations), and additionally the approach to marketplace the goods.

STUDENT: How can a company collect expertise?
TEACHER: The fundamental ways to acquire era are:

· Hire personnel with understanding within the subject.
· Purchase know-how from different firms via license and/or technical assistance agreements.
· Receive it from the manufacturer of specialized gadget set up.
· Perform in-house studies and development (R&D).

It is essential to mention the want of a Technology Strategy.

In all corporations, from a shoe producer to a chipmaker, some kind of Technology Strategy has to be in the vicinity to live aggressively and see opportunities

STUDENT: Can we speak and an instance of such an approach?
TEACHER: Sure.

Elements of a Technology Strategy

I. Awareness

· A company needs to be continuously aware of the present and upcoming technology in its subject, be it from outside sources or from inside the business enterprise. The ways to do that are many, from scanning exchange magazines to attending exchange shows to successfully managing the in-house pool of knowledge.

II. Assessment

· Decide which technology may affect the enterprise.
· Quantify the ability of these technologies to have an effect on the enterprise undoubtedly or negatively.
· Analyze the firm’s potential to incorporate these technologies efficaciously.

III. Implementation

· Maintain a concern schedule primarily based on potential cost-benefit and viability.
· Organize to allow incorporation of the latest technology.

STUDENT: Many times, when it comes to an employee’s skills, one hears approximately invention, creativity and innovation. Can you please elaborate?

TEACHER: Gladly. We ought to try to outline and distinguish between those 3 activities, that are the motors of technological trade. Of direction, the meanings overlap loads, but nonetheless, there are primary differences. A company needs to be definitely aware of the variations.

I. Invention means discovering something notably new.Innovation

· To invent some thing in modern-day surroundings is hard and really luxurious. An in-depth and pricey R&D activity ought to be present.
· Many inventions take area “earlier than their time” and can’t be carried out profitably in existing market conditions. Normally inventions deliver patent safety, but for a restrained time most effective; a long postpone in practical utility could make this protection vain.
· In spite of the previous caveat, every now and then an invention can be successful and be rather profitable. We listen of this with sure frequency inside the drug enterprise, wearing familiar names along with Upjohn’s Minoxidil, Eli Lilly’s Prozac or Pfizer’s Viagra. But it need to be realized that the funding in R&D at the back of any of these hits is full-size.

II. Creativity is devising a novel aggregate of current technologies or practices.

· A new product composed of existing factors (as the first Apple laptop).
· An original way to take advantage of an current technology (as the use of the Internet for a brand new service -i.E., a website publishing and selling “digital books”).
· Creativity can be high-priced and involve a number of high-tech R&D in sub-technologies (as in growing a quicker, smaller pc chip) but once in a while it could be cheap and very profitable This happens normally in production whilst a worker thinks of an improvement within the production process.

III. Innovation may be defined as the sensible and worthwhile implementation of the thoughts originated with the aid of invention or creativity; “converting ideas into value”. In commercial firms, the objective of innovation is:

· To convey new worthwhile services or products to market.
· To enhance competitiveness through decrease manufacturing fee.

STUDENT: As in every element of business, there ought to be a need for managing this innovation manner.
TEACHER: Innovative ideas float constantly to management from external and inner assets. Some can be right, others now not as properly. The secret is, in reality, positioned, to pick out those the business enterprise have to spend money on and sooner or later enforce.

This waft of ideas needs to be encouraged, by no means discouraged. The supply of all thoughts is humans.

STUDENT: A truism, of course. Obviously, machines do not have thoughts!
TEACHER: Yes, however a truism regularly forgotten by means of management.

A large percentage of new thoughts comes from inner resources. An employee might also have a unique idea, or may additionally convey up a commentary he made at an alternate show.

STUDENT: What can control do to encourage humans to contribute their thoughts?
TEACHER: Let’s see. A company needs to:

I. Motivate employees to communicate their thoughts. People should be identified for this, regardless of whether or not the concept is judged a vivid one or a dumb one. No one ought to ever be criticized for his or her ideas; regardless of what management thinks of an offer made via an employee, they ought to be commended through the easy reality of speaking it.
II. Good thoughts can come from any a part of the business enterprise. The flow of ideas should no longer be limited to coming from specialized resources. A concept about a new product or an extension of the product line will probably come from a marketing specialist, But a clerk might also have a useful concept approximately marketing; in spite of everything, he is also a client.
III. Ideally, employees must get hold of financial rewards for accurate thoughts which can be applied, specifically in case of suggestions coming from people not specially employed for that purpose including R&D personnel. Leading corporations along with IBM have had this kind of programs in the vicinity for many years and while many personnel received big rewards, the company profited via the use of the ideas.
IV. Criticism approximately a brand new concept need to be postponed. No idea should be discarded at the beginning sight. There needs to be a systematic method to evaluate hints by way of an officially prepared institution or committee.

STUDENT: OK, now a corporation has selected an innovation task with precise capacity. What comes next?
TEACHER: Now the corporation faces a very vital undertaking: enforcing the innovation.

Deciding to put money into an innovation is difficult. It is one of the regions wherein control perception could be very crucial. Still, some objective elements have to be taken into consideration: Innovation Management

* Ideas are continually fuzzy at the beginning. Promising ideas need to be “nurtured”, thought approximately, mentioned, re-considered.
* Innovation need to be judged in line with its relevancy to the quick or long time competitive advantage of the business. The modern ideology is that a corporation need to listen in its center competency, its “middle businesses”. So, a great idea may not healthy into this policy. Again… The idea can be the kernel of a brand new middle commercial enterprise!
* The risks and capability advantages need to be quantified. Launching a very new product is greater volatile and contains greater capability rewards than an extension of a present product line or a redesigned package.
* Most innovations are applicable to the entire enterprise. This fact is frequently disregarded and consequently, top management coordination is crucial. The advertising and marketing humans can be certain that the new packaging for mayonnaise is terrific, but it is able to be loads more expensive to fabricate. Decision-making should contain all relevant sectors of the organization. Senior management should ensure that properly teamwork is practiced.
* The resources to be allocated to the innovation mission ought to be realistically calculated.
* Once accepted, the mission has to have an officially said approach and plan. Timing is important in bringing innovations to the marketplace; a realistic “critical direction” of the challenge must be drawn and followed-up.
* The challenge must be truly communicated and understood. Clearly mounted targets over time and continuous re-evaluation are vital. Not all projects began are possible, for the reason that conditions may additionally have modified. Deciding to terminate a challenge is as crucial as finding out to start it.

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