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Innovation and excellence
Management methods for innovation transformation
Considerations and possible steps for establishing organisational units to support internal ventures
In addition to defining strategic goals, it is also necessary to transform the organisational culture in order to create successful intrapreneurs and spin-outs. A significant change in mindset is needed among employees and managers who have been socialised in a traditional corporate culture, because cumbersome administration discourages entrepreneurial behaviour and does not support proactivity and risk-taking. In the idea phase, radical innovation is primarily initiated by individuals. In order for radical innovations to emerge, employees must be given sufficient autonomy and empowerment. In order to increase innovation capabilities and risk-taking willingness, as well as to proactively seek new solutions, various corporate processes and incentives must be fundamentally changed.
The first possible step could be to develop an incentive system that supports the development of risky innovation ideas and projects that could generate significant revenue for the company, in addition to the efficiency gains and cost savings achieved through various Lean methods.
The next management task is to learn to tolerate mistakes made in the development process and to communicate the possibility of making mistakes. The majority of truly bold technological and innovation proposals will not work on a statistical basis and will prove to be a mistake, with all the associated costs and other consequences. This is the reality: successful small and large companies around the world manage innovation ideas according to a portfolio approach, of which only a few per cent will bring significant returns to the business. It is possible to introduce "Stakhanov methods" – a Soviet propaganda tool from the 1930s to promote ideals of hard work and productivity – and expect every project to be successful, but this will only work on paper.
The third and perhaps most crucial management task is to secure resources for development and to enable employees to use those resources autonomously. There are several corporate practices and models in place to allow development-type employees to devote a certain percentage of their working time to devising innovative initiatives and taking the first steps towards their implementation. The initial prototyping of innovation proposals and the testing of further working prototypes involve a more significant financial investment. The example of successful technology companies shows that the cost of manufacturing and testing dozens or even hundreds of prototypes cannot be avoided if a company really wants to introduce radically new products or services to the market.
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Figure 30. Key elements of internal entrepreneurial programmes
Source: based on Mes (2011).
If a company does not want to manage its innovation projects on an ad hoc basis, i.e. one way one time and another way another time, it is inevitable that an innovation organisation or unit will have to be set up within the company, whose dedicated task is to support internal innovation ideas and entrepreneurial initiatives. Of course, this only makes sense if the company manages such a large number of innovation projects that it requires the establishment of a dedicated unit, as we saw in the Robert Bosch and Audi Hungaria case studies in Chapter 4 of this volume.
Tartalomjegyzék
- Innovation and excellence
- Copyright Page
- Foreword
- Introduction
- Part I. Fundamentals of Business Economics
- Chapter 1: Excellence and success
- Chapter 2. Success factors for corporate innovation
- Chapter 3. Sources of innovation – users as innovators?
- Scientific research
- Needs and customer demands
- Users as innovators
- The user-dominated innovation process
- Open innovation – multi-actor innovation
- The role of users and customers in industry
- The absorption capacity model
- Types of user knowledge
- Identifying and involving leading users in the innovation process
- Scientific research
- Part II. Empirical research results: case studies
- Chapter 4. Possible innovation models for businesses open to change
- 1. MELECS: the innovative electronic component manufacturer
- The global development of the Melecs Group
- Clear mission and strategic goals
- Meeting customer needs and creating value
- Achieving corporate goals through innovation
- Possibility of an independent research and development department
- Management trust and encouragement
- Supportive management methods
- Encouraging user innovation
- Developer workshops
- The global development of the Melecs Group
- 2. A perfectly developed idea management system at AUDI HUNGARIA
- The importance of user innovations
- "Top innovators"
- The idea management process
- The impact of idea management on organisational culture
- Reward system
- Arousing curiosity in an ergonomic environment
- The role of customer interactions
- Support for adapting to uncertain situations
- Empowerment, encouraging proactivity
- Awards and recognitions
- Encouraging ideas and innovations
- Outlook: Audi Denkwerkstatt – Berlin
- Concept
- Process and topics
- Startup vs. silo mentality
- Challenges and strengths
- The importance of user innovations
- 3. "Invented for life" – Bosch's activities to encourage innovation
- Global automotive patents from Budapest
- Developing Bosch's innovation ecosystem
- Rules of the Budapest Development Centre's innovation program
- Application of management practices that encourage innovative behaviour
- Lessons from innovation management
- Possibilities for adapting good practices from large companies
- Corporate practices that encourage innovation
- Bosch's "grow platform", an international incubation programme
- Bosch Innovation Framework
- Bosch Startup Harbour / Berlin
- Global automotive patents from Budapest
- 4. On the way to an ambidextrous organisation – MouldTech Systems
- Introduction to MouldTech Systems Kft.
- Innovation strategy direction: independent product development and manufacturing
- The need for diversification
- Talent management and providing an inspiring environment
- The role and method of communication in talent management
- Conditions for product scalability
- Management methods for a "pack" of developers
- Introduction to MouldTech Systems Kft.
- 1. MELECS: the innovative electronic component manufacturer
- Chapter 4. Possible innovation models for businesses open to change
- Part III. Practical methods for introducing and developing corporate exploration processes
- Chapter 5. From traditional business to innovative organisation
- Exploitation and exploration
- Unattainable goals and contradictions
- The role of organisational culture in the success of innovation activities
- What can we learn from other companies?
- Innovation transformation model based on organisational and individual competencies
- Components of the maturity model of ambidextrous organisations
- Exploitation and exploration
- Chapter 6. Developing an innovation strategy – the need for change
- Chapter 7. Practices of ambitious leaders: management tools for innovation transformation initiatives
- Map of the current product and service portfolio
- Building an exploratory innovation project portfolio
- Management tasks related to exploratory projects
- Internal entrepreneurial ("corporate venturing") programmes
- Internal ventures, the process of developing a corporate venturing strategy
- Success factors for internal entrepreneurial programmes
- Considerations and possible steps for establishing organisational units to support internal ventures
- Map of the current product and service portfolio
- Chapter 8. Initial steps towards a more innovative organisation
- Chapter 5. From traditional business to innovative organisation
- References
Kiadó: Akadémiai Kiadó
Online megjelenés éve: 2026
ISBN: 978 963 664 182 5
The aim of the book "Innovation and Excellence" is to inspire and encourage company leaders, managers, and experts to initiate and implement innovation transformations with the help of professional literature and corporate case studies. Another important goal is to help develop the innovation capabilities of small and medium-sized enterprises in particular by sharing simple, proven management methods that can be tested in practice. The first part of the volume reviews the factors of corporate excellence and success, then highlights the possible sources of innovation, with a focus on the role of users and employees. The empirical section presents a detailed description of the supportive role of the workplace environment and creative working conditions based on corporate case studies (AUDI, BOSCH, MELECS). The volume concludes with a description of selected tested practical methods and management techniques that readers can try out in their own businesses.
Hivatkozás: https://mersz.hu/dory-innovation-and-excellence//
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