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DevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platforms
A role of innovative idea management in hrm
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME: http://www.iaeme.com/IJM.asp Journal Impact Factor (2014): 7.2230 (Calculated by GISI) www.jifactor.com IJM © I A E M E A ROLE OF INNOVATIVE IDEA MANAGEMENT IN HRM Dr. A. Ramaraju Assistant Professor, Department of Management Studies, Annai College of Arts Science, Kovilachery, Kumbakonam-612 503, Tamilnadu, India 92 ABSTRACT Innovative Idea management systems are increasingly widespread in organizations. With their deployment, firms get aware that existing systems have various shortcomings. By analyzing innovative idea management systems can able reach our goal in better way. The interactive innovation management system that supports multidisciplinary and team collaboration which includes different social software applications of the IS (information systems) academe, and the world beyond. Innovation is rapidly becoming a strategic priority, but there is a large gap between the perceived importance of innovation and the effectiveness and appropriateness of approaches and methods used to systematically support and accelerate innovation. This Idea Management concept is based on a life-cycle perspective on innovation, where the aim is to support all phases from insight to post-implementation learning and feedback. The overall concept is described, and the role of innovation and idea management in human resource management. Keywords: Idea Management, Collaborative Innovation, Effectiveness and Feedback. INTRODUCTION Many organizations are facing an urgent need to exploit new ideas and opportunities to meet increasing competitive pressure and changing customer demands. The recent economic recession has further accelerated the urgency of innovation across industries and globally. But from where do you get those much needed breakthrough ideas to drive growth, productivity and value creation? When innovation is more important than ever, collaborative idea management can help organizations to surface new ideas, improve them and make sure they reach the right people. It is also a way to empower and recognize innovative employees, to measure and stimulate creative activity and to promote a more open and collaborative innovation culture in the organization. Idea management is a
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME structured process for the collection, handling, selection and distribution of ideas. It may include support for gathering, storing, improving, evaluating and prioritizing ideas by providing methods and tools, such as templates and guidelines. Idea management is an integrated part of the innovation process. Idea management is relevant for all types of ideas, from incremental improvements to new and disruptive business opportunities. 93 IDEA MANAGEMENT All businesses are created first by ideas. Then once you're in business you need ideas for design, engineering, manufacturing, marketing, advertising, creative problem solving, customer retention, etc. The difference between success or failure in business could be just one idea. Idea management systems and process can help the organization to make innovation a discipline. They can help make the hunt for new possibilities each and every department's business, as well as involve broader and more enthusiastic participation among managers and employees. PURPOSE OF INNOVATIVE IDEA MANAGEMENT You can • Submit ideas This can be carried out by regular employees • Create idea buckets This can be carried out by innovation managers or innovation experts • Refine and enhance ideas This can be carried out by an innovation expert • Initiate an evaluation The innovation manager role is responsible for this deliverable • Initiate approval process The innovation manager role is responsible for this deliverable • Approve or reject ideas The key benefits of this process are as follows Good ideas are not lost, but can be identified and made available to the appropriate people Bad ideas are quickly eliminated Idea generation workflows are structured and made more transparent
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME Dispatch Idea Discuss Idea/Idea Containe Relating Ideas and Concepts Attach Document Figure 1: Innovative Idea Flow Process INTEGRATES INNOVATIVE IDEA MANAGEMENT SYSTEM Management system integrates with other systems deployed at their companies. I’m always interested in hearing with what exactly they want to integrate. Sometimes I hear really smart, creative integration schemes. Sometimes asking for the ability to integrate is part of a check off list 94 Submit idea Export Idea Create Targeted Ideation Search for Ideas/Idea Containers Create Idea Container Initiate Appraisal Review Specify Classification Changing Status Initiate Approval Process Generating print summary for idea
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME 95 Need for Integrate First of all I’ve been helping companies deploy enterprise wide systems for a long time. These are “enterprise systems” because they are either used by the lion’s share of team members or because they impact everyone at the company. These systems beg the question of integration. CRM systems need to integrate with accounting systems because customer data should not be in silos. On line real time video needs to be integrated with other communications systems. So I understand that deploying a system that sits by itself off in a corner is not a good idea. Downstream Tools There are logical integration points for idea management systems. By definition, an idea management system addresses requirements at the Front End of Innovation. Therefore the data generated will likely be used “downstream”. Messaging Most (good) idea management systems have a messaging component. Users can be alerted when an idea is commented on or worked on. And these systems also have a service to invite other users, which usually kicks off a message to another user. These and other messages can be integrated with emails. And a messaging system internal to the idea management software will likely have pop ups or other indicators that a message exists. Single Sign On Enterprise IT departments are in the business of providing technology to make their end users’ life easier. Single sign on with Active Directory (AD) or Lightweight Directory Access Protocol Users can log onto the idea management system just by pulling it up in their browser instead of keying in a user name and password (again), thereby saving valuable time. (LDAP) is a standard request for any enterprise software. Financial system A bit downstream, but still during the front end of innovation, the collaborative group need to justify cost effectiveness and collect other financial attributes. Being able to draw on financial data without too much searching in order to flush out an idea is a big step toward productivity. Knowledge Management Another fine attribute to an idea management system is to take advantage of the collaborative tool’s ability to act as a knowledge management system. But if a knowledge management system already exists in the enterprise. How to do it The very best way to address integration is to allow your idea management vendor to participate in two steps. First you should conduct a discovery session where the enterprise organization discusses all the possible places where integration can occur. Second you orchestrate a meeting or conference call with all the various software vendors. IDEA MANAGEMENT AND NEW PRODUCT DEVELOPMENT New Product Development suggests 7 stages of development of a new product in idea Management as shown in figure 2.
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME Idea screening Figure 2: New Product Development Stages Idea generation According to Wikipedia, New Product Development process follows as 96 1. Opportunity Identification 2. Opportunity Analysis 3. Idea Genesis 4. Idea Selection 5. Concept and Technology Development IDEA MAN IS FRONT END OF INNOVATION Idea management and innovative processes are part of the new fundaments in all organization. The process is unique and highly appreciated. In all parts of the Idea Management and innovative process;” Needs definition”, “Idea Generation” and “Screening”. Figure 3: Idea Management Typical features of idea management systems Campaign focused Customizable forms for capturing ideas Customizable evaluation criteria Powerful evaluation workflow processes Collaboration and idea sharing Concept and development testing Business analysis Beta testing marketing testing Commercializa tion Technical information Needs definition Idea Generation Screening
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME Innovation Dimension 1. Experience innovation 2. Design innovation 3. Brand innovation 4. Network innovation 97 INNOVATION DIMENSION Internal Innovation External Innovation Delivery Innovation Dimension Dimension Dimension 1. Customer innovation 2. Differentiating innovation 3. Pricing Innovation 4. Sales Model Innovation 5. Launch Innovation Figure 4: Dimensions of Innovation 1. Core technology innovation 2. Product Innovation 3. Service Innovation 4. Marketing Innovation 5. Business Model Innovation 6. Value Proposition Innovation 7. Operational Efficiency Innovation 8. Resource/Asset 9. Utilization Innovation DIMENSION FOR INNOVATIVE IDEA MANAGEMENT Dimension 1 – Innovation idea for Optimization The product or service that the company develops will stay the same, and innovation will focus on new idea to manufacture and deliver the offering to the market. Dimension 2 – Innovation idea for Improvement The goal is to improve the existing idea offerings themselves. It may be that the product becomes easier to use, or new technologies will enable enhanced functionality.
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME 98 Dimension 3 – Innovation idea for Invention The goal is to develop new products and services that will provide the same benefits as existing options, but in new and better ways. In this, a Success criterion for the specific product attributes does not exist, and consumers may not be able to articulate the potential solutions. Dimension 4- Innovation idea for Disruption: The result of this type of innovation is that it fundamentally changes the competitive landscape. Very often - but not always, this type of innovation focuses more on changing existing business models than on changing the products themselves. This type of innovation playing out in the publishing and other media industries, as existing business models are becoming irrelevant TWO MODEL OF INNOVATIVE IDEA MANAGEMENT Two Models Suggestion schemes Idea Campaigns Innovation challenge Motivation Suggestion overflow Duplicate idea submission Many irrelevant ideas Opacity Promotion Reward Collaborative idea development Evaluation Implementation Figure 5: Models of Innovative Idea Management COMMON PROBLEMS EXPERIENCED IN IMPLEMENTING AN INNOVATIVE IDEA MANAGEMENT • There may be too many ideas generated to manage effectively. • The ideas generated may not be linked tightly enough with corporate strategic objectives. • The ideas management process may not be streamlined and ideas assessed to deliver corporate value in general and new growth platforms in particular.
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME Implementing a successful and effective Innovative Idea Management System • Cultivating a culture of sharing and collaboration supportive of innovation in general and an 99 Idea Management System in particular. • Establishing the right kind of incentive system to encourage ongoing flow of freely given ideas from employees and customers. • Establishing appropriate processes for submitting and assessing ideas. • Resourcing the Idea Management System appropriately to enable review of all ideas and acting on accepted ideas. • Gaining visible executive support for the importance of the program and confirming that suggestions will be followed through. INTERNATIONAL IDEA International IDEA acts as a catalyst for democracy building by providing knowledge resources, expertise and a platform for debate on democracy issues. It works together with policymakers, donor governments, UN organizations and agencies, regional organizations and others engaged in democracy building. What does International IDEA do? Democracy building is complex and touches on many areas including elections, constitution building, political parties, and women’s political empowerment and democracy self-assessments. International IDEA is engaged with all of these issues and undertakes its work through three activity areas: • Providing Comparative Knowledge derived from practical experience on democracy building processes from diverse contexts around the world in the form of handbooks, databases, websites and expert networks; • Assisting Political Actors in reforming democratic institutions and processes, and engaging in these processes when invited to do so; • Influencing Democracy Building Policies through the provision of comparative knowledge resources and assistance to political actors. International IDEA Gender Policy The objective of achieving gender equality is indivisible from the International IDEA goal of sustainable democracy worldwide, hence International Idea’s commitment to making gender equality a reality. International IDEA will leverage for the transformation of power relations between men and women in such a manner that gender equality is promoted in terms of inclusiveness, participation, representative ness and accountability of democratic processes to both women and men. As equality between women and men is a key feature of democracy, gender, as a cross-cutting issue must be addressed in all our internal systems and practices and areas of work, especially in programmes whose primary focus is not on gender.
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME 100 Glossary of terms Gender Analysis Gender equality Gender equity Gender mainstreaming Equality of Outcome Practical Gender and Strategic Gender Interests/Needs BENEFITS OF E-MAIL IDEA MANAGEMENT • Ease of Use - Everyone knows e-mail, and users are comfortable with programs such as Microsoft Outlook and Lotus Notes Mail that can handle interactive forms in an e-mail message. • Low Cost - E-mail programs can be deployed at practically zero cost, although systems based on web forms can cost around half the cost of an advanced Idea Management application like Idea Central. • Wide Audience - E-mail is accessible to most employees, a near universal tool, so all e-mail users can participate freely. DISADVANTAGES OF E-MAIL IDEA MANAGEMENT E-mail idea management has some real attractions, particularly in reducing the cost of the technology investment. However there are several disadvantages that rapidly overshadow the initial perceived benefits: • Unstructured - E-mails can be submitted in almost any format, and individuals often ignore the structured forms and revert to plain text mails. • Unfocused - It is nearly impossible to focus people on important, timely business topics. • Disorganized - E-mailed ideas become chain letters within an organization. • Crushing Volume - E-mail communications multiply rapidly, causing stress and overwork for the people involved. • No Idea Sharing - It is almost impossible to share ideas effectively with an e-mail system. • Security Risk - It is all too easy to for people to forward ideas and related content to inappropriate readers, causing the company to lose control of intellectual property, and potentially lose rights to protect inventions through patents and trade secrets.
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International Journal of
Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 5, Issue 7, July (2014), pp. 92-101 © IAEME 101 CONCLUSION This paper has discussed the importance of idea management systems and it’s role in innovation and improvement projects within organizations. Suggestion programs hold great potential in their ability to harness the creative capacity of employees to address critical business problems. As one of the oldest management tools for innovation, there is evidence of great success but this is tempered by the poor experience from the traditional suggestion box concept that suffers from several major drawbacks. However, careful attention to the main steps in the idea management process, namely generating, capturing, sharing, exploiting, and measuring ideas, greatly increases the likelihood of success. The idea management is an important source of potentially unlimited competitive advantage. Idea management systems are an idea whose time has come. Because they are Web-based, they enable organizations to gather, share and evaluate ideas with a speed and flexibility never before possible. This, in turn, can help corporations to compete at a new, higher level and surprise and delight customers in exciting new ways. Best of all, idea management systems enable managers to measure the bottom-line impact of ideas collected and implemented, making it easier than ever before to determine the return on ideas that these idea management systems provide. REFERENCES 1. www.ideachampions.com/ibank.shtml 2. www.brightidea.com 3. www.ideavibes.com 4. Barsh, Capozzi, Davidson. Leadership and Innovation. McKinsey Quarterly, Number 1, 2008 5. Curtis R. Carlson, William W. Wilmot, Innovation: The Five Disciplines for Creating What Customers Want.
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