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Successfully Embedding Innovation
American Productivity & Quality Center (APQC), Aug 2007, Pages: 149


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In the current business climate, organizations are feeling increasing external pressure to show continued growth, and many CEOs are turning to innovation to drive that growth. The term innovation is ubiquitous—it’s in news headlines, on the covers of magazines, and written about in books. But what does innovation encompass? Our definition includes four key elements:

1. Product/Service innovation: This type of innovation results in products or services that can be priced and sold externally.
2. Operational innovation: This is internal innovation focused on making the business more effective and/or improving the customer experience.
3. Business model innovation: This is innovation that combines new strategy, processes, and organizational models to create entirely new ways of doing business. Such innovation typically relates to business relationships such as joint ventures; licensing agreements; and partnerships with universities, suppliers, customers, or competitors.
4. Innovation enablers: This category of innovation includes tools, structures, and cultural fundamentals that create an environment where innovation can thrive. It takes time and focused effort for enterprises to shift their paradigms and integrate innovation into their business strategies and cultures. What does an organization do when employees cling to the way things have always been done? How can leaders convince employees that innovation represents something other than more work?

This study seeks to answer these questions. The study team and participants set out to investigate how best-practice organizations achieve success in innovation, ingrain it into their organizational cultures, and make it part of each employee’s job. The research also examines technologies, applications, and other tools being used to support innovation, as well as methods of measuring innovation performance.



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