1.
Managing and Organizing
Innovation in Emerging New
Knowledge Economy
Prof Parameshwar P. Iyer
CSIC Management Studies
Indian Institute of Science
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 1

2.
Agenda
Introduction
Objectives
Methodology
Results
Model for Managing Organizing Innovation
Management Characteristics
Organizational Characteristics
Conclusions
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 2

3.
Introduction
Increased turbulence and complexity
Focus attention on Innovation
Knowledge as principal source of competitive
advantage
Western approach – Hard, quantifiable,
objective procedures, efficiency based
Contrast with tacit, subjective, intuitive,
insight based
Get it from the “horses’ mouth”
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 3

4.
Objectives
Learn from wisdom of world class
performers
Generic model for managing and
organizing innovation
Links between innovation and
performance at management level
Links between innovation and process
parameters at organizational level
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 4

5.
Methodology
Synthesis of model for managing and
organizing innovation (literature)
Informal semi structured interviews with 32
top managers in innovation led corporates
How do executives look at productivity and
innovation
How do they achieve and maintain status
What best practices would they recommend
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 5

6.
Results: Model for Managing
and Organizing Innovation
At the management level, innovation
linked to:
1. Focus
2. Mastery
3. Intensity
4. Integrity
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 6

7.
Results: Model for Managing
and Organizing Innovation
At the organizational level, innovation is
strongly correlated to:
1. Processes
2. Relationships
3. Commitment
4. Belonging
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 7

8.
Model of Managing Innovation
Enable people to become effective and
efficient in innovative actions processes
Which management characteristics are
necessary to manage innovation?
Which organizing characteristics are
necessary to manage innovation?
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 8

9.
Model of Managing Innovation
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 9

10.
Management characteristics
Focus
1. Proactive approach
2. Willingness to take risks
3. Forming personal goals
“must want to do something badly …..”
“difference between competitive aggressiveness and proactive
approach ……. Have to seize the opportunity “
“without risk there is no progress”
“having a clear concise goal is important …….. It has to really
matter to you….. Otherwise you will not be able to make the
sacrifices ..”
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 10

11.
Management characteristics
Mastery
1. Creating Commitment
2. Initiating Change
3. Managing Time
“the great leader thinks, feels direction, and movement……
and then follows it up with the desired transformation”
Innovation of the first degree… second degree…. third degree
Innovations of second and third degrees reinforce and sustain
creative processes initiating change
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 11

12.
Management characteristics:
Mastery ……
Managing Time
1. Reducing waiting time
2. Eliminating unnecessary work
3. Delegating tasks
“If you cannot get your week’s work done in 50 hours, you
probably cannot do it in 150!”
“If we are unable to do what we believe is most important …
that is also a type of waiting”
“Delegation implies trust in people, but it does not mean
abdication”.
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 12

13.
Management Characteristics
Intensity
1. Confidence in mission
2. Discipline
3. Detachment
“You cannot be truly outstanding at something unless you are
committed to that pursuit emotionally .”
“It is impossible to succeed at anything doing it part-time ….
If you spend 100 percent time to make 100 dollars… you
cannot say that I will spend 90 percent time & make 90 dollars
“To make total commitment, you have to cut out all escape
routes and excuses”
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 13

14.
Management characteristics
Intensity …
Confidence in mission
“It is hard to be a winner if you really do not think of yourself
as being a winner. You find a way to lose… your goal has to
be important enough for you to make the sacrifices to get
there”
“Discipline means having the character to develop and stick to
the mission or vision”
“People who have control over their work are more likely to be
productive and successful”
“Intensity is the key to a market driven competitive business
… but it is also important to show detachment….. Living a
balanced life seems to be very important to world-class
performers”
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 14

15.
Managament characteristics
Integrity
“Top notch leaders have integrity …. Derived from ability to
create trust, personal values, and guiding ethical rules”
“People do not follow those whom they do not trust”
“Integrity means ….. Commitment to constantly raise and
refine levels of competence…… ability to honestly assess the
performance of other people and themselves”
“All humans are influenced by beliefs and values …. Important
amongst them are achievement, patience to wait for results,
courage to seize opportunities, intellectual curiosity, and
imagination”
“appreciate the ethical values of honesty, integrity …. More
than action oriented values … it makes it possible to trust
others in the organization”
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 15

16.
Organizational characteristics
Processes
Relationships between central
mission and vision, and local
initiatives and processes
Relationships
Establishment of relationships
where mutual trust and supportive
attitudes prevail
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 16

17.
Organizational characteristics
Commitment
Active committal participation to
root missions and visions
Belonging
Become part of a purpose,
extending beyond the daily work
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 17

18.
Organizational characteristics
Processes
“a process team is a unit that naturally falls together to complete a
whole piece of work …. A process”
“the purpose of the vision is to generate the necessary change in the
organization to achieve the desired goals”
“a vision is …. A network of ideas in close relation to one another, ….
Can be visualized to generate synergetic effects”
“ascertain what behavior generated by the new environment created
by the vision is desirable”
“identify persons …. Exponents of the desired behavior”
“For the innovation process to be implemented, less
control, less centralized planning, and less concentration
of power must be introduced in the organizational
system”
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 18

19.
Conclusions
Creating an innovation led organization is a
viable solution for coping with turbulences and
complexities of knowledge economy
Need to focus at both the management level
and the organization level
At the management level, focus, mastery,
intensity, and integrity are essential for
managing innovation
Need to be proactive, willing to take risks, and
set personal goals
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 19

20.
Conclusions
Mastery requires creating commitment,
initiating changes, and managing time
Confidence in mission, discipline, and
detachment are important ingredients
Integrity is created from the ability to
generate trust, personal values, ethical rules
Processes, relationships, commitment, and
belongingness are necessary for linking
innovation to operational units of organization
(C) Prof Parameshwar P Iyer
ICITM2006 03-02-06 Indian Institute of Science 20