UD4. The Context of Innovation

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Gandia Campus

Academic year: 2024


- 2025
INNOVATION MANAGEMENT AND ENTREPRENEURSHIP

Unit 4. The context of innovation

Ramona – Diana
Contents

1 General framework

2 Specific norms
1 General framework

ISO characteristics

ISO main topics

ISO 56000 series


General framework
What it is?
An independent, non-governmental
international organization that brings
global experts together to agree on the
best ways of doing things.

What it does?
It creates standards that establish
specifications, guidelines, or requirements
for processes, products, and services
across a range of industries.

Why does it do it?


To ensure that the products and services
provided worldwide are safe, reliable and
ISO: of high quality.
International Organization
for Standardization
4
cs
pi
to 1. Quality management
in
ISO 9001 series
Ma
O:

2. Environmental management
IS

ISO 14001 series

3. Occupational health and safety


ISO 45001 series

4. Innovation management
ISO 56000 series

5. Information security management


ISO 27001 series 5
Innovation
fundamentals

Performance Strategic
evaluation alignment

e & nt
l
g
ed eme ISO Leade
r
ow nag Organ ship &
n
K a
m 56000 izatio
cultur nal
IP e
series

Resource Opportunity
management identification
Tools,
processes &
methods

6
ISO 56000 series (I)

Innovation fundamentals:
• It clarifies key terms and concepts, ensuring a common understanding
across the organization, and it defines principles that guide innovation,
such as creating value, aligning innovation with strategic objectives, and
fostering a supportive culture.
• It emphasizes that innovation isn’t limited to products but includes
processes, services, business models, and organizational approaches.
• It emphasizes the need for creating sustainable value.

Strategic alignment:
• It stresses aligning innovation initiatives with the organization's overall
strategy.
• It highlights that innovation contributes to long-term goals, driving
competitiveness and addressing customer needs.

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ISO 56000 series (II)

Leadership & Organizational culture:


• It encourages leaders to support risk-taking, creativity, and collaboration.
• It underscores the need for a culture where people feel empowered to
contribute ideas without fear of failure.

Opportunity identification:
• It encourages systematic approaches to identify and prioritize the
challenges that could be addressed.
• It brings forward that recognizing and seizing opportunities is essential for
sustained innovation.

Tools, processes & methods:


• It outlines a process approach to managing innovation, from idea
generation through development and implementation.
• It encourages the development of structured methods for idea capture,
assessment, prototyping, and scaling.

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ISO 56000 series (III)
Resource management:
• It emphasizes the effective use of resources, including human, financial,
and technological.
• It stresses the need for organizations to invest in necessary skills, tools,
and infrastructure that support innovation.

Knowledge & IP management:


• It promotes creating systems to protect and leverage intellectual property.
• It brings forward that effective management of intellectual property and
knowledge sharing is essential to capture the full value of innovation.

Performance evaluation:
• It recommends measuring and evaluating innovation performance to
improve continuously.
• It claims that Key performance indicators (KPIs) should assess the
effectiveness, efficiency, and impact of innovation activities on
organizational goals.
9
2 Specific norms

ISO 56000 / UNE 166.000

ISO 56002 / UNE 166.001

ISO 56008 / UNE 166.008


ISO 56000 (I)
Purpose
It provides a foundational overview of
innovation management.

Content focus
It outlines fundamental concepts like types
of innovation, strategic alignment, and
principles for creating a supportive
environment for innovation.

Audience
Leaders, stakeholders, and anyone in the
organization who needs to understand the
basics of innovation management.

11
ISO 56000 (II)

Novelty
Innovation
Main Value
concepts Innovation
Context
Management
System
Leadership

Planning

Support

Operations
Performance evaluation
& Improvement
ISO 56000 (III)

Realization
of value Future-
Systems
focused
approach
y leaders
lit

Innovation
i

Strategic
ab

Management
pt

direction
a

Principles
Ad

M
un ana
ce gi
rta ng
in Culture
ty
Exploiting
insights

1
ISO 56000 (IV)
Realization of value:
• It is critical for ensuring company’s competitiveness and sustainable
development.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Investing in activities for understanding the context and identifying
opportunities and challenges.
• Establishing objectives, processes, systems and KPIs for value
capture and realization.
• Evaluating innovation initiatives based on a broad understanding of
value.
• Empowering people to undertake innovation initiatives to generate
new opportunities for value realization.
• Adapting organizational structures and innovation processes to
maximize value realization.
• Assessing how stakeholders perceive value from current innovation
activities and identifying opportunities for improvement.
14
ISO 56000 (V)

Future-focused leaders:
• It brings forward the need to balance the current focus and short-term
performance with anticipating future opportunities and challenges.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Encouraging and supporting leaders to explore with curiosity and to
execute with courage.
• Recognizing and rewarding leaders that challenge the status-quo.
• Encouraging leaders to share stories of successes and failures to
inspire others.
• Aligning and communicating company’s vision and purpose
throughout the organization.
• Encouraging and recognizing people who are contributing to
company’s vision.
• Fostering a culture supporting innovation activities.

15
ISO 56000 (VI)

Strategic direction:
• It helps prioritizing innovation activities while ensuring that the innovation
objectives and strategy are commonly shared and understood, and also
aligned with company’s strategy.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Ensuring and demonstrating that the innovation objectives are
contributing to the overall objectives and strategic direction of the
organization.
• Communicating the strategic direction by providing examples of
opportunity areas and types of innovations to focus on.
• Planning, developing, and implementing innovation initiatives,
processes and portfolios.
• Demonstrating how people are assigned and what resource are
allocated to implement the innovation strategy.
• Reviewing and updating the strategic direction to ensure
effectiveness and impact.
16
ISO 56000 (VII)

Culture:
• It should enable creativity and innovation by defining values and beliefs
that support openness to change, risk taking and collaboration.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Promoting diversity to encourage different perspectives, to develop
innovative behaviours and to maximize collective knowledge.
• Reducing hierarchy in organizational structures.
• Encouraging open networks for finding opportunities and solutions.
• Defining, recognizing and demonstrating different behaviours and
personalities needed in different stages of innovation processes.
• Using storytelling to promote desired behaviours.

17
ISO 56000 (VIII)
Exploiting insights:
• It emphasizes that a diverse range of internal and external sources
should be used in order to systematically build insightful knowledge,
exploiting stated and unstated needs.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Identifying relevant cross-disciplinary internal and external sources of
knowledge to develop a broad range of insights.
• Identifying and engaging with different categories of stakeholders to
develop unique and insightful knowledge.
• Ensuring that information and knowledge are relevant, reliable and
secure.
• Making the insights available to all relevant people and interested
parties.
• Developing, implementing, maintaining and improving suitable
processes for the identification of exploitable insights.
• Developing competence for analysing information and creating
organizational knowledge.
18
ISO 56000 (IX)
Managing uncertainty:
• It brings forward that balancing the exploitation of opportunities and
management of risks generates confidence and builds resilience to
manage uncertainties.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Developing frameworks and processes to manage uncertainty.
• Encouraging experimentation and risk taking to embrace change and
uncertainty.
• Systematically managing uncertainties and risks across the
innovation management system.
• Establishing a portfolio approach to innovation initiatives, balancing
risk and value potential.
• Using indicators to monitor, evaluate and reduce uncertainties and
risks.
• Ensuring that people know how to identify and handle uncertainties
and risks.

19
ISO 56000 (X)

Adaptability:
• It emphasizes the need to adapt company’s structure, processes and
competences to the changes that occur in the internal and external
environment.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Creating and analysing future scenarios and determining the
transformation they imply.
• Determining the required resources for acting on changes in context,
objectives or focus.
• Implementing and managing change across multiple time horizon in
parallel activities.
• Monitoring and making timely decisions on the implementation of
changes to ensure its effectiveness and fitness for purpose.

20
ISO 56000 (XI)
Systems approach:
• It reflects the need to take into account all the interrelated and interacting
elements that could influence the innovation performance of an
organization.
• According to ISO 56000, the following potential activities could be
conducted to ensure the realization of value:
• Embracing and promoting the understanding of innovation
management as a system.
• Explaining the scope, purpose and objectives of the system, including
relationships with interested parties.
• Ensuring that all relevant functions are represented to enable the
organization to operate an effective management system.
• Selecting innovation indicators that capture critical aspects of the
system.
• Mapping system elements and their relationships and monitoring the
effectiveness of system linkages.

21
ISO 56002 (I)
Purpose
It provides a step-by-step guide to
developing, implementing, and maintaining
an innovation management system.

Content focus
It follows a "Plan-Do-Check-Act" cycle,
offering a systematic approach for
continuously improving innovation processes.

Audience
Managers, innovation teams, executives,
and anyone responsible for creating or
overseeing innovation processes.

22
ISO 56002 (II)
Innovation Management System
Background

Scope

Pillars

23
ISO 56002 (III)
Background on Innovation Management System (IMS)
• It provides guidance for the establishment, implementation, maintenance,
and continual improvement of an IMS in all established organizations.
• Its development depends on the context of the organization or better said
on:
• Understanding the organization and its environment.
• Understanding the needs and expectations of interested parties.
• Promoting a culture that enables the coexistence of creative and
operations-oriented mindsets and behaviours.
• Managing internal and external collaboration.
• Demonstrating leadership and commitment.

Scope of Innovation Management System (IMS)


• It determines the innovation intent and the boundaries and applicability of
the IMS.
• The innovation intent can describe the scenarios of what could be
possible in areas of opportunity, when faced with uncertainty.
24
ISO 56002 (IV)
Pillars of Innovation Management System (IMS)
1. Plan:
• It concentrates on establishing the objectives and determining the actions
needed to address opportunities and risks.
• It brings forward:
• The actions to address the opportunities and risks, considering the
uncertainties associated with the opportunities and the degree and
type of risk that may or may not be accepted.
• How to integrate and implement the actions into the IMS processes
and how to evaluate the effectiveness of these actions.
• The innovation objectives that will be pursued at each level and how
will they be achieved.
• The relevant organizational structures that could help to achieve the
intended outcomes.
• The consistency between initiatives within, as well as outside of, the
innovation portfolio.

25
ISO 56002 (V)
Pillars of Innovation Management System (IMS)
2. Do:
• It implements what is planned in terms of support and operations.
• Regarding the support, the following resources are considered:
• People – including personnel characteristics, teams, (non)financial
incentives, terms and conditions for the ownership of ideas.
• Time – using an appropriate time management for the effective IMS
implementation.
• Knowledge – involving capturing, sharing and creating internal and
external knowledge.
• Finance – providing the funding for conducting innovative activities.
• Infrastructure – including building, facilities and associated utilities,
equipment, transportation resources, information and communication
technologies.
• Communication – involving the use of tools and techniques for
internal and external communication.
• Intellectual Property Management – including patent, copyrights,
trademark, trade secrets, creative commons licensing, and open
source licensing. 26
ISO 56002 (VI)
Pillars of Innovation Management System (IMS)
2. Do:
• Regarding the operations, the following aspects are considered when it
comes to innovation processes:
• Identifying opportunities – using basic research, environmental
scanning, prospective analyses, benchmarking, internal and external
searches, interviews, ethnography, crowdsourcing, focus groups,
foresight activities, user scenarios, risk analysis, etc.
• Creating concepts – generating new ideas, potential solutions, or
combinations of existing ones, from internal and external sources,
using creative problem solving, ideation, or other methods.
• Validating concepts – by testing, experimenting or conducting pilot
studies.
• Developing solutions – converting the concept into a working
solution, including the value realization model.
• Deploying solutions – making the solution available to users.

27
ISO 56002 (VII)
Pillars of Innovation Management System (IMS)
3. Check:
• It involves monitoring and measuring the results against the objectives
defined in the planning stage.
• Innovation performance indicators can be applied at system, portfolio, or
initiative level and can be evaluated and improved, as appropriate. A mix
of the following can be used:
• Input-related indicators: number of ideas, number of innovation
initiatives, value creation potential of ideas, new sources of
knowledge, new insights, quantity / quality of specific resources etc.
• Throughput / Process-related indicators: speed of experimentation,
number of employees, managers / users involved, effectiveness of
collaboration and relationships, new tools and methods adopted, time
to profit, time to market, engagement level, brand awareness, etc.
• Output-related indicators: number / ratio of ideas implemented, return
on innovation investment, revenue and profit growth, market share,
speed of adoption by users, user satisfaction, rate of innovation
diffusion, cost savings, rate of learning, intellectual property, etc.
28
ISO 56002 (VIII)

Pillars of Innovation Management System (IMS)


4. Act:
• It involves taking actions to continuously improve the performance of IMS.
• Within this framework, the organizations consider actions and changes
to:
• Maintain or enhance strengths.
• Address weaknesses and gaps.
• Correct, prevent, or reduce deviations and nonconformities. In this
case, it is necessary to:
 react to the deviation or nonconformity by taking action to
control / correct it and to deal with the consequences.
 evaluate the need for action to eliminate the causes of the
deviation or nonconformity so that it does not occur elsewhere.

29
ISO 56008 (I)
Purpose
It focuses on measuring and evaluating
the performance and outcomes of
innovation management processes.

Content focus
It includes tools and methods for tracking
the effectiveness of innovation efforts and
metrics for evaluating innovation inputs,
processes, outputs, and outcomes.

Audience
Innovation managers and analysts

30
ISO 56008 (II)

31
ISO 56008 (III)

• Innovation Process Measurements focus on optimizing how


innovation is executed, ensuring efficient workflows and process
effectiveness.
• Innovation Initiative Measurements focus on evaluating individual
innovation projects to assess their performance, success, and
alignment with business goals.
• Innovation Portfolio Measurements focus on managing the entire set
of innovation efforts, ensuring that resources are effectively distributed
across various initiatives and that the portfolio supports the organization’s
strategic priorities.

32
ISO 56008: Innovation
Process Measurements
Input metrics & methods
Metrics: Customer satisfaction, Net Promoter
Score, Innovation capacity, Patents.
Methods: Surveys, Trend Analysis, IP
analysis.

Process metrics & methods


Metrics: Delays, cycle time, skill gaps.
Methods: Process Bottleneck Analysis.

Output metrics & methods


Metrics: Opportunity score, market
acceptance rate.
Opportunity Methods: Opportunity scoring model.
identification
33
ISO 56008: Innovation
Process Measurements
Input metrics & methods
Metrics: Number of ideas generated, strategic
fit score, disruptive potential.
Methods: Observation, strategic alignment
matrix, Delphi method.

Process metrics & methods


Metrics: Idea diversity, iteration frequency,
team collaboration effectiveness.
Methods: Surveys, observation, 360-
degree feedback.

Output metrics & methods


Metrics: Scalability assessment, time to
implementation, lessons learned.
Concept Methods: Benchmarking, observation,
creation surveys.
34
ISO 56008: Innovation
Process Measurements
Input metrics & methods
Metrics: Resource availability, associated
risks.
Methods: Budget assessment, scenario
planning.

Process metrics & methods


Metrics: Development time, user engagement
in testing, iterations count.
Methods: Time-tracking, surveys, feedback.

Output metrics & methods


Metrics: Prototype testing success score,
development cost.
Concept Methods: Pilot testing, budget tracking, cost
validation analysis.
35
ISO 56008: Innovation
Process Measurements
Input metrics & methods
Metrics: Stakeholders alignment, technical
feasibility assessment, potential market
demand.
Methods: Survey, feasibility study.

Process metrics & methods


Metrics: Development timeline, team
collaboration effectiveness.
Methods: Gantt charts, surveys.

Output metrics & methods


Metrics: Implementation readiness score,
mitigation rate, cost, solution quality.
Solutions Methods: Readiness assessment, risk
development assessment, cost analysis, quality testing.
36
ISO 56008: Innovation
Process Measurements
Input metrics & methods
Metrics: Resource availability, stakeholder
commitment.
Methods: Budget analysis, survey.

Process metrics & methods


Metrics: Time to market, time to profitability,
system stability, adoption rate.
Methods: Critical path analysis, downtime
tracking, adoption curve analysis.

Output metrics & methods


Metrics: Customer satisfaction, return on
investment, innovation impact, market
Solutions acceptance rate.
deployment Methods: Survey, financial analysis, impact
analysis. 37
em on
ts
u r at i
en
as ov
Me Inn
1. Number of market research efforts
conducted.
ive 8:
at 600

2. Number of identified disruptive forces


In O 5

impacting innovation strategy.


IS
iti

3. Percentage of employees contributing to


innovation.

4. Percentage decrease in time-to-market compared to


the previous initiatives.

5. Payback period for innovation project.


38
em ion
ts
en
ur at
as ov
Me I n n
1. Competitive intelligence index.
:
ol 08
rtf 60
io
Po O 5

2. Innovation portfolio diversity index.


IS

3. Patent portfolio growth rate.

4. Percentage of completed innovation projects within


the organization's portfolio.

5. Percentage increase in ROI compared to the previous


year / quarter. 39
QUESTIONS?

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