These business notes examine how the innovation management process is used in a given company from generation to commercialization. The notes provide an outline on the process of identification, development, implementation, and improvement of processes meant to improve the quality of products. The notes also provide a holistic approach to business management that addresses technical issues through strategic orientation.
The notes will help the students learn about the principles of sustainability and how to apply them to the management of innovation. They will learn the importance of integrating sustainability into the innovation process, and how to identify the potential opportunities and risks that come with this type of management. They will also learn the benefits of a sustainable approach to innovation and how to develop a strategy to implement it. Finally, they will learn how to measure the impact of sustainability and innovation management on the organization’s success.
Individual report on sustainability and innovation management
Introduction
In economics, Innovation is defined as the realization of a novel, advanced solution to a specific problem, especially the introduction of a new product or the application of a new process (Lendel et al., 2015, 861). Term in economics for the (complex) innovations associated with technical, social and economic change.” It is also recognized there that no generally accepted definition of the term exists.
Innovation Process management involves the identification, development, implementation, and improvement of processes to improve the quality of products. Innovation is a holistic approach to business management that addresses technical issues through strategic orientation. The innovation process is closely linked to the organization, management other factors involved in the process. A business process describes a sequence of discrete activities that are performed incrementally to achieve a business or operational goal. In contrast to the project, a process is run through more often. This report examines how the innovation management process is used in a given company from generation to commercialization.
Organizational
The management has the role of shaping Innovation and digitization successfully. Innovation management brings together these organizational aspects, including climate, leadership style, capabilities, Intellectual Properties, and technological factors. An organization must be able to use Innovation in its internal management approaches, with its innovation management and Innovation consulting as well as advice on the digitization of its processes, business models and sales (Rothaermel, 2016, 2). For technological companies, Innovation management organizational goals are set to ensure Innovation through product development to the introduction and marketing of a new product or a new business idea (Eveleens, 2010, 900). Successful innovation management includes the evaluation of trends and technologies, the analysis of hidden customer needs to increase customer orientation, systematic development of ideas and innovative concepts, management of innovation projects using agile project management, and Innovation controlling.
In view of these challenges, innovation management is subject to change: Away from rigid innovation processes to methods such as crowdsourcing, co-creation, and open Innovation (Benner and Tushman, 2002, 676). Management approaches such as knowledge management, process management, and risk management are also increasingly important influencing factors. An important focus is also on the development of the culture of Innovation and increasing the ability to innovate.
Commercial
The aspects that define the commercial process include value proposition, target marketing, and Intellectual property management. An organization must be able to manage its intellectual properties and make its products unique in the market. The innovation process is founded on the uniqueness of products with creative-innovative processes that may, at first glance, indicate a contradiction between processes and creativity and Innovation (Eveleens, 2010). However, if you take into account that projects are also subject to a project management process, it is not far to define processes for creative-innovative processes. The advantage of this structured approach is that creativity and Innovation are suddenly given space under two aspects.
On the one hand, this space is created by defined processes in the form of standards in the provision of services, in the support and management of the same because the wheel does not have to be reinvented every time in the processes, and those involved can direct their creativity to the creation of new things and necessary improvements. On the other hand, an innovation process promotes the targeted use of creativity and prevents innovations from being lost in everyday business life. This creates opportunities in the company suggestion system and in the continuous improvement process that avoids waste through the unused potential of the employees. The fact that usable results should also result from this is simply healthy entrepreneurial thinking.
Technological
When we think about Innovation, the first thing that crosses our mind is technological advancement. Under this aspect, Innovation involves the introduction of technological approaches that help improve the production/business process. The understanding of technological innovation management is changing: Away from an approach that focuses primarily on the innovation process to a holistic understanding. The understanding of technological processes has also changed significantly in recent years (Žižlavský, 2013, 47). The management of these two types of Innovation is different. Different orientations of the innovation culture and continuous development of innovative ability are also required in order to optimally promote the implementation of product and process innovations.
SECOND ASSIGNMENT: STRUCTURE OF REP
Innovation management at Volkswagen Company.
Volkswagen is a multinational automobile based in Germany (Poulin, 2020, 2). The automotive industry is in a state of upheaval; innovative strength is more important than ever. According to a study, the Volkswagen Group excels in this respect, even more so than Daimler, Tesla, or BMW. The robot shuttle that Volkswagen wanted to provide for the soccer World Cup in Qatar will not work out after all, but overall the car manufacturer from Wolfsburg is bringing up the most technological innovations in an international comparison of manufacturers. This is the result of the annual innovation ranking of the Center of Automotive Management (CAM).
For the ranking, the car experts analyzed the technological innovations of 30 global car manufacturers with a total of around 80 car brands. A total of 654 technological innovations were individually recorded and evaluated according to criteria such as originality and customer benefit. With a total of 67 innovations, including 24 world firsts, Volkswagen achieved an index value of 149 and thus came first ahead of Daimler with an index value of 133. The Wolfsburg team had already led the ranking last year. Tesla took third place with an index value of 93 (Hampel, 2021, 1).
Innovation management process at Volkswagen
The innovative strength of the global automotive industry is better than the image occasionally perceived by the public. The German automobile manufacturers have a high level of Innovation in many fields of technology and vehicle segments. However, new players from California and China are increasingly putting the established players from Germany under pressure. There is an urgent need to catch up, especially in core areas such as electro-mobility or software networking.
In an international comparison of automobile manufacturers, Volkswagen comes up with the most technological innovations. This is the result of the annual innovation ranking of the Center of Automotive Management (Jamalludin Helmi, 2019, 7). The German automobile manufacturers have been doing very well from an innovation perspective. For the first time, three Chinese automotive groups made it into the top ten in the innovation ranking.
For the ranking, the car experts analyzed the technological innovations of 30 global car manufacturers with a total of around 80 car brands (Hampel, 2021, 1). A total of 654 technological innovations were individually recorded and evaluated according to criteria such as originality and customer benefit.
Volkswagen’s technological and commercial constraints
In the ranking of volume brands, Volkswagen occupies the top spot in 2020 after third place in the previous year. One of the world’s newest innovations is the improved emergency stop assistant in the Passat, which for the first time in the segment, can also steer the vehicle onto the hard shoulder. In the new Golf, for the first time, the emergency brake assistant can also recognize the end of a traffic jam and react accordingly (Hampel, 2021, 1). According to the CAM, Volkswagen appears to have “hardly any competition in the volume segment” and could win further technology categories: v Vehicle concepts and body, interface and networking, and autonomous driving and safety.
Among the premium brands, Mercedes-Benz can claim the top position just ahead of BMW, Audi, Tesla, and Porsche, making it into the top 5. With 36 innovations, Mercedes has a third more world firsts than BMW. According to the CAM, the plug-in hybrid version of the GLE with low consumption and high electric range, the active emergency brake assistant in the GLC, which can also react to the end of a traffic jam, and the active lane change assistant are particularly noteworthy.
According to the IPM award, Volkswagen will be the world’s most innovative car company in 2020. The Volkswagen Group reclaimed the prize, replacing Daimler as the world’s most innovative automotive group. Electric car manufacturer Tesla was able to assert itself among the premium brands in the autonomous driving and safety category.
The use of Standard Operating Procedures at Volkswagen
Standardized operating procedures define the certain work process that is described in detail in an organization. This is interesting, above all, for the training of new employees, or in sectors where the legislation is very strict. An example of this type of sector is aviation, in which planes must undergo the same extensive checks before they can take off (Goya, 2014, 12). The standardized operating procedure is never the goal in itself but is part of a grand strategy for (electronic) quality management.
Volkswagen uses standard operating procedures developed for specific actions that take place in the workplace and are therefore closely related to business process optimization (Polisetty and Madhuri, 2018, 521). In this way, they can be found and managed in different types of business software.
To what extent do such SOPs constrain and/or enable the innovation process?
Volkswagen uses fixed work methods in their assembly and ca production lines, including part manufacturing, part assembly, and quality management. A standard operating procedure is important for the general maintenance or improvement of a product or service, but it can also have more specific goals (Uerz and Rudzinski, 2012, 1). Many companies use established procedures and instructions to carry out certain standards, such as obtaining an ISO certificate. Especially in terms of quality and safety standards, it is very interesting for companies to be able to present in detail what steps employees follow in carrying out their work. Also, environmental certificates are becoming more and more popular and require very strict procedures. Therefore, a POE oriented towards a recycling policy is good support for a company that wishes to obtain an environmental certificate.
Digital technologies used at Volkswagen
Part assembly Technology is used at Volkswagen throughout the entire production process. In terms of technology, the strongest growth in the CAM ranking can be seen in the field of e-mobility, with 184 innovations (+82%). All in all, innovations in the drive area make up 29 percent of all innovations and have increased correspondingly strongly compared to the previous year (+20 %). After the drive, driver assistance and collision protection systems are the second most important field of Innovation, with 17 percent of all innovations. In the “Autonomous Driving and Safety” category, e-car pioneer Tesla replaces last year’s winner Mercedes-Benz among the premium brands (Hampel, 2021, 1). New assistance systems in the Model 3 and Model Y series ensure victory.
Out of a total of 250 production vehicles, the electric Porsche came out on top with 56 index points as the “most innovative model” of the year, ahead of the new BMW 3 Series (33 index points) and the facelifted Mercedes-Benz GLC (30 index points). The Porsche has 27 innovations, of which almost 50 percent (13) are world firsts – including a fast-charging system with 800-volt technology and the first 2-speed transmission in an electric car, which ensures greater efficiency. The assistance systems that are already ensuring greater road safety today are the basis for the fully automated vehicle that will soon follow. Although this is now the responsibility of development, the basic research came and continues to come from Volkswagen Group Innovation.
Volkswagen Intellectual Property Rights (IPRs) strategy
All innovative ideas at Volkswagen are well patented and cannot be used by other automobile companies. Volkswagen secures the Intellectual Property Rights of the innovative automobile manufacturer in the world with 272 innovations, including 74 world firsts. Innovativeness-of-the-car-manufacturers-at-group-level-3. The crisis is reshuffling the cards. Those who are now questioning established processes, rethinking principles, and expanding innovation activities for new technologies can place themselves at the front when the economic trend picks up speed again (Hampel, 2021, 1). Covid-19 has redefined mobility behavior and revealed that the industry still has little flexibility for quick solutions.
Conclusion
For Volkswagen, the innovation strategy flows logically, as outlined in the argument. Technological innovation strategy works for automobile solutions. The innovation strategy revolves around technological improvement, and it clearly fits with the resources and capabilities of Volkswagen company. Successful innovation management includes the evaluation of trends and technologies, the analysis of hidden customer needs to increase customer orientation, systematic development of ideas and innovative concepts, management of innovation projects using agile project management, and Innovation controlling. Customers are now open to new technologies and Innovation as well as individual concepts. If the industry understands this openness and translates it across sectors, it can bring about a powerful push toward transformation despite the crisis.
References
Lendel, V., Hittmár, Š. and Siantová, E., 2015. Management of innovation processes in the company. Procedia Economics and Finance, 23, pp.861-866.
Eveleens, C. 2010. Innovation management; a literature review of innovation process models and their implications. Science, 800(2010), 900-916.
Žižlavský, O. 2013. Past, present, and future of the innovation process. International Journal of Engineering Business Management, 5, 47.
Benner, M.J. and Tushman, M., 2002. Process management and technological innovation: A longitudinal study of the photography and paint industries. Administrative science quarterly, 47(4), pp.676-707.
Uerz, G. and Rudzinski, C., 2012. Foresight & Open Innovation at Volkswagen: Creating strategic value by combining the Scenario & Information Market approach. In ISPIM Conference Proceedings (p. 1). The International Society for Professional Innovation Management (ISPIM).
Goya Hernandorena, M., 2014. Suggestion System in Volkswagen Navarra and the systematization of Innovation.
Poulin, J., 2020. Volkswagen blues: roman. Carl Hanser Verlag GmbH Co KG.
Hampel, C., 2021.Volkswagen tops CAM innovation rankings. https://www.electrive.com/2021/08/25/volkswagen-tops-cam-innovation-rankings/#:~:text=Volkswagen%20is%20the%20most%20innovative,innovative%20corporations%20and%20premium%20brands.
Rothaermel, F. T. 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Polisetty, A., and Madhuri, J. 2018. Value added statement: Analysis on Volkswagen. IOSR Journal of Business and Management, 20(2), 48-52.
Jamalludin Helmi, F. F. 2019. Volkswagen Company’s Corporate Governance and Liquidity Risk.
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