One of the functions of a company in terms of management is innovation. It is a transversal function aimed at guaranteeing the production of a maximum of innovations, i.e. innovative offers.

From this perspective, innovation is a management process that consists of actively improving what already exists and innovating by creating new things.

Here's everything you need to know about Management of innovation.

What is innovation in business?

Innovation in business is the implementation of a new idea after research, a step between research and industrial application.

An innovation is distinguished by its novelty compared to what exists on the market.

Innovation can include an unknown product, service, manufacturing process, or the use of new technologies.

Businesses aim to gain a competitive advantage by meeting or exceeding consumer needs.

When a company creates its innovation strategy, it identifies the target organization to be set up to achieve the strategic objectives.

Innovation management consists of implementing methods and procedures to develop innovative projects.

It is designed as a dynamic management policy that involves thinking about the development of innovation, financing, marketing and the business model to be adopted.

Due to a constantly changing market, it is crucial for businesses to continue to innovate.

The company can sustainably capitalize on ideas, share them and communicate them effectively, in order to develop an increasingly strong ability to innovate.

In the end, this guarantees a better competitive positioning and a dynamic image among customers and employees, creating a virtuous circle in terms of employer brand and customer experience.

Management methods and tools exist to help businesses structure their innovation processes.

What are the different types of innovation?

In reality, it is difficult to determine exactly the number of types of innovations.

However, what concepts are the most credible in the eyes of businesses right now?

4 types of innovation stand out.

Businesses looking for the innovative idea, concept, or product use them. Examples include incremental innovation, adjacent innovation, breakthrough innovation, and radical innovation.

Incremental innovation

As the name suggests, incremental innovation, also called continuous improvement, consists in improving a product or service in its market.

Faster than other types of innovation, it is proving to be effective for many businesses. Especially when it comes to addressing transformation issues within the company or changing procedures.

Incremental innovation is also particularly participatory because it makes it possible to mobilize employees.

The adjacent innovation

The typical example of successful collaboration is adjacent innovation.

In fact, it is a product or service innovation that involves the integration of existing technology.

This gives it a competitive edge that makes it unique in the market. The takeover of innovative start-ups by large groups can illustrate the concept of adjacent innovation.

Their innovative products and services must be integrated into the initial offer.

Breakthrough innovation

Breakthrough innovation, or disruptive innovation, is not a technological innovation.

It is in fact a matter of reducing prices or simplifying the use of a product or service that is also available from a competitor.

As such, breakthrough innovation is a major challenge for competitors.

Radical innovation

The creation of a completely new product or service that no one expected and that tends to impose itself in the lives of users is known as radical innovation.

Two typical examples of radical innovations that have changed our daily lives are the TV and the mobile phone

How to manage innovation?

Innovation is the combination of the creativity of a team, not of a single individual. It is necessary to encourage creative initiatives by encouraging the engagement of the entire business ecosystem in order to stimulate the birth of a culture of innovation.

The human resources department can develop methods to raise awareness of innovation among employees. Every person and every department in the company has a role to play.

Managers need to be aware of the capacity of their teams and the importance of investing in tools and employee training.

Mobilizing the entire company around innovation issues

Practical methods have been identified and developed in order to mobilize the entire company around innovation issues.

The aim is to set up a participatory approach through concrete workshops to share innovative ideas.

It can be brainstorming or challenge storming, design thinking.

The main idea is to create new products taking into account processes and services, and to abolish the divisions between the various functions of the company.

Study the trends the market

The customer is the recipient of the sale of an innovative product or service.

If the company succeeds in anticipating a customer need, it is in an innovative process.

But in order to do this, it is necessary to study market trends.

When it comes to innovation, staying on top of technological advances is also crucial.

Mobilizing financial resources

Project management requires the mobilization of teams, tools, methods and financial resources.

The budget of innovative start-ups or small start-ups can be significantly affected by the financing of innovation.

That is why in France, the government has taken active measures to encourage technological innovation, especially in the field of small and medium-sized enterprises, by offering financing solutions.

The management of innovative projects is now considered in the short or medium term, in an agile and scalable way, taking into account the increasingly shorter lifespan of technical solutions and innovative products on the market.

Knowing how to manage the resources and the budget of several innovative projects is essential.

What are the two aspects of innovation management?

Innovation management involves two aspects: innovation and management.

Hence the need to quickly return to the basic concepts of these two key concepts.

Especially in a world where The challenges are changing rapidly.

Being supported by professional coaches can help companies launch a genuine culture of innovation through management. It can also be very useful to support family businesses in their adaptation to the world of the future.

VISCONTI Partners is specialized in coaching managers, you can contact our team at any time. Also find our items of experts.