Tibor Dőry

Innovation and excellence

Management methods for innovation transformation

Chapter 6. Developing an innovation strategy – the need for change

Businesses of different types, sizes, sectors and life cycle stages should use different innovation techniques and methods. There is a wide range of tools available, and each method must be adapted to the strategy and organisational culture of the company, taking into account the level of innovation maturity of the business. The latter is a particularly important consideration, even if managers and owners can see their organisation's position years ahead.

There are many reasons for change and raising the level of innovation, but perhaps the most convincing argument for managers is that if they do not transform their organisations to be more innovative, their competitors will introduce more successful products and services, and may even lure away their employees by offering them more attractive tasks and working conditions. Another argument is provided by the annual CEO surveys conducted by major international consulting firms,1 according to which less than 10% of senior executives are satisfied with the innovation performance of the companies they lead. At the same time, the majority of executives, over 80%, expect innovation to drive their company's growth. These two statements suggest that something must be done, that an innovation transformation must be initiated and implemented in order to maintain or even increase competitiveness.

However, it is important to note that any organisational change, not to mention significant transformations, is always very difficult to implement successfully. For effective change, it is first necessary to examine why the transformation is needed. Based on my empirical research and discussions with company executives, it is not enough for a company to make only minor changes or hire an innovation specialist or a small development team. You cannot expect immediate and significant results from such steps, because innovation is not something that can simply be imported, but must be adapted and integrated into the organisation. Change can only bring results if the continuous pursuit of innovation becomes an integral part of the company's operations. There are two main reasons for this:

Traditional, large-budget, multi-year research and development projects no longer work, even for large companies.
Innovation activities that are not integrated into the core business of the company simply do not produce results.

1	See, for example, the results of the McKinsey survey: https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/how-we-help-clients/growth-and-innovation (Date of access: 10 October 2022).

Tartalomjegyzék

Kiadó: Akadémiai Kiadó

Online megjelenés éve: 2026

ISBN: 978 963 664 182 5

Menedzsment

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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