Tuesday 20 June 2023

Innovation management


Innovation management

At present, we should attach greater importance to innovation. It is necessary to establish the national awareness of innovation, establish a national innovation system, enhance the innovation ability of enterprises, and put scientific and technological progress and innovation in a more important strategic position.

Joseph Schumpeter, a famous American economist, believes that the most essential feature of the capitalist economy is innovation, and capitalism continues to break through its own limitations and frequent economic crises, and the main reason is the spontaneous innovation mechanism of the capitalist economy.

Throughout the contemporary enterprise, only continuous innovation can take the initiative in the competition and be invincible. Many businesses fail because they can't.

Modern information technology (IT) is a catalyst for business innovation. From the use of computers to calculate wages by General Electric in 1954, to databases, the Internet, and e-commerce, all of them are the credit of IT technology.

Therefore, innovation is the life of an enterprise. Others liken innovation to fresh blood with oxygen.

Relevant foreign experts once played such a game at a training course held by the Central Committee of the Communist Youth League: The speaker had a white envelope in his hand, which may contain 50 Dollars, a fine slip, or other punishments. You have three options: 

(1) you can open the envelope, but you must follow the requirements in the envelope,
(2) you may not open the envelope, and
(3) you can pass it on to your companion for them to open. What is the choice?

Not opening the envelope means that everything is stagnant. In this way, although there is no risk, the opportunity will slip quietly. Standing still is actually a regression in disguise. The connotation of development is very rich. We see development as a breakthrough in reality, like that envelope, and tearing it apart means a breakthrough in the status quo. To grow, you must innovate.

What is innovation?

Innovation, also called creation. Creation is the cognitive and behavioral activity of the individual to produce novel and valuable results (spiritual, social, material) according to certain goals and tasks, using all known conditions.

According to the theory of the management master Schumpeter, innovation is the recombination of production factors, including five aspects:
(1) the adoption of a new mode of production,
(2) the opening of new markets
(3) the opening and use of new raw materials,
(4) the adoption of new organizational forms.
(5) the introduction of a new product

In fact, it should also include the innovation of concepts and thinking. This is the most important thing. A professor at the Central Party School summed up that the Shenzhen Special Economic Zone can achieve today's achievements first of all due to the innovation of the system. Without the conceptual innovation of the pioneers of the special zone, there would be no institutional innovation.

How companies can innovate

Innovation is the soul of an enterprise's development, but innovation can not only be a castle in the air, but more importantly, there must be a practical method.

The success or failure of an enterprise is still determined by how to innovate and how to manage! I think there are a few points;

1. Integrate management activities with supply chain management as the core

Chinese enterprises are moving away from the small scope of interests of various sectoral systems, extending and integrating management activities forward and backward, and improving the integrity of the organization and business. The trend of this extension and integration development with supply chain management as the core is: 

To develop towards the model of combining centralized planning and decentralized execution, that is, the management model based on incident response time and integration of high-tech information technology; Reduce the number of suppliers and streamline the supply chain organization, making the supply chain more compact and simple; Pay attention to customer service and customer satisfaction, and pay attention to customers' feelings about service levels; The end-consumer goods market is dominated by retailer-led supply chain management models.

Second, take business process management as the core, make management simple and flexible.


The management with the business process as the core emphasizes the enterprise organization as the process, breaks through the boundaries of the division of functions of the department, treats the entire business process as a whole according to the specific goals and tasks of the enterprise, integrates and combines the management functions of the relevant departments, emphasizes the performance of the whole process to replace the performance of individual departments or individual activities, and realizes the whole process and continuous management and service. 

This management method weakens the lead eliminating of the middle supervisor level, shortens the excessively long management route, and establishes a system of downward transfer of the management center; The implementation of the "sequential obedience" relationship of the business process emphasizes the obedience of the upper and lower links of the process, the members in the process cooperate and cooperate with each other, and the process links are transformed from being responsible to the superior to pursuing the satisfaction of the next process link, and the vast majority of the work connection between organizational units will be carried out in accordance with the determined order and rules, without the need for a special control and coordination body; Pay attention to the short and fast process time, reasonably and optimally define and screen the activities in the process, enhance the setting of value-added activities, and eliminate process bottlenecks.

Third, the trend of corporate culture management is quantified.

The hard costs of enterprise competition basically converge, and the key influencing factors have become soft costs, that is, corporate culture costs - employee emotions, commitment, professionalism, loyalty, etc. But to what extent can corporate culture affect a company? How can corporate culture help companies activate resources? In recent years, corporate culture management has begun to move from qualitative to quantitative, but not one-sided data, but concrete and refined. On the one hand, the current situation of the cultural management of the enterprise is analyzed, evaluated and quantified, including sequencing, proportion, quantification, and distance. On the other hand, find out the shortcomings of cultural management according to the gaps, and concretize and refine management strategies.

The role of Manager

When talking about the role recognition of managers, I will talk about the misplaced roles of managers, and the trainees reflect that in their daily work, they are more misplaced "consultants".
In actual work, there will often be subordinates with questions and confusion to the boss, at this time, do managers want to directly give subordinates methods? 

Giving methods directly can save discussion time and improve efficiency, but as a manager, if you habitually give methods to subordinates, it may lead to bad results. Let's all imagine if every time a subordinate asks for help from a boss, he can immediately get the method, will this inhibit the subordinate's ability to think? 

If the subordinate uses the boss's method to do things right, will there be a sense of accomplishment? If you use your boss's method to do things wrong, will you feel guilty and willing to be responsible? He will feel that doing well is the boss's idea, and doing poorly is also the boss's idea, and has nothing to do with himself, so if a person has no sense of achievement and responsibility when doing things, will he go all out to do things well? This is worth reflecting on.

Moreover, how can we see that our subordinates are not creative? Why is it that our subordinates must come up with methods that are inferior to ours? The key is whether we are good at inspiring thinking and creativity. I believe that if our managers can be good at stimulating the enthusiasm and creativity of subordinates and give full play to the financial wisdom of subordinates, they will definitely get unexpected gains.

Therefore, I suggest that as managers, we can be advisers to subordinates, but should not be consultants at all times, and more often, we should consciously inspire subordinates through effective communication, so that subordinates grow, and cultivate subordinates well, which is the essence of managers, which is the so-called "good educator wins the hearts of the people".

Innovation became the biggest enemy of classic remakes. The new version of "Three Kingdoms" has a lot of innovations in plot and character performance, but I watched the entire new "Three Kingdoms" and found that it is only a partial innovation, and it is still relatively close to the original work as a whole, so the results of the new "Three Kingdoms" can also be described as "thrilling and risk-free". 

The new "Dream of Red Mansions" may not be able to safely wade through this wave of criticism, because its innovation is divorced from the audience, and if the new "Dream of Red Mansions" cannot find out the audience's appreciation taste, leaving the audience with too strong a sense of traversal, it is naturally difficult to be recognized.

Especially after American dramas, Japanese and Korean dramas have set off a wave of ratings in Japan in turn and cultivated a large number of fans, and after many domestic dramas have risen to catch up and make people admire domestic dramas, we have no reason to doubt the audience's ability to appreciate excellent TV drama works, and they will always pick out the TV series they like to watch from prime time or non-prime time. 

If the creator can understand the audience's psychology with the times when remaking the classic, I believe that even if it is controversial, it will not be recognized one-sidedly. Unfortunately, teacher Nobita found that the innovation of the new "Dream of Red Mansions" is reflected in many aspects such as plot adaptation, actor selection, and performance techniques, but it always reflects traces of old-fashioned in terms of rhythm control, picture language, and atmosphere creation.

We have seen that the past three decades of reform have allowed Japan to achieve a large number of enterprises. We are also looking at what Chinese companies need if they want to be evergreen? When we look at evergreen enterprises in the United States, we rely on two magic weapons, one is innovation and the other is management. 

So American companies continue to innovate, all new things in the world rely on their innovation, the Internet, IT, have nothing to do with us, rely on their innovation and management to drive the progress of the entire world.

Of course, they have also done a lot of innovation that should not be, such as the so-called financial innovation that caused the most important factor in our financial crisis, but this is the corporate culture of the United States, and he drives the entire economy through such innovation. Japan is also the world's second largest economic power, we cannot but despise Japan, the second largest country in the world economy, what does Japan rely on?

I have lived in Japan for 15 years, and I can't see a little bit of innovation, but when I see the structure of the entire economy, the structure of the enterprise, including the overall quality of the people, what does he rely on? There are also two things.

Talking about innovation management

Where does innovative thinking come from? Lecturer Nobita believes that we should practice like Zen Buddhism. Zen, which means "meditation" or "meditation," belongs to one of the six bodhisattva paths and refers to a method of practice that is interpreted in contemporary language, i.e., directly confirmed with the mind without words, in order to achieve enlightenment.

We encourage innovative ideas, we emphasize the transformation of innovative ideas into real value, only innovation that can bring value enhancement to society, enterprises and individuals is effective innovation. This increased value requires us to turn ideas into results through action. Ms. Tan suggested that enterprises encourage employees to continue learning and strive to provide convenient conditions for employees' innovation, including not only the working conditions required for innovation, but also the atmosphere and mechanism to encourage innovation.

However, teacher Nobita saw that the management methods carried out by many domestic enterprises are contrary to the premise of "innovation". 

So, what is the innovative mention? In fact, it is very simple, that is, the employees of the enterprise have the environment and power to "think and express themselves freely", and they must ensure that they will not be treated abnormally because of disagreements. As you can imagine, there are several companies that can do this. Therefore, "innovation" is naturally a tree without roots, verbal talk, for most enterprise managers.

However, Professor Nobita also believes that most domestic enterprises do need to rely on innovation to overcome the "Matthew effect" to obtain a latecomer advantage, but it must be pointed out that innovation cannot rely on an idea or a few people or a project overnight, to nurture innovation and support innovation rely on solid basic management work, which is exactly the problem ignored by some enterprise managers. Specifically, companies generally need innovation in the following areas –

1. Service innovation

The famous IBM company's emphasis on "IBM is a service" in the advertisement reflects the company's idea of attaching great importance to product services. Product service innovation is to emphasize continuous improvement and improvement of service level and service quality, and constantly introduce new service items and service measures, in an effort to let consumers get the greatest satisfaction or satisfaction.

2. Knowledge innovation

It is said that a contemporary doctoral student can only grasp less than 1% of the total human knowledge, the remaining 99% do not understand, and 4% of them are not known to exist. Most of the managers in Chinese companies are poorly educated, so what reason do we have to reject new knowledge? Therefore, knowledge innovation is not only a place that everyone ignores, but also a place that needs to be improved and innovated.

3. Mentality innovation

Ms. Roji suggested that every employee, old employee, and manager should ask questions about all aspects of the company like a new employee on the first day of work in the company. Remember on our first day on the job, we would ask many questions – why did we do it? -- how did we make it happen? -- what was its goal?-- what did it mean? But the longer we work in the unit, the harder it is to do this. The longer we work and the fewer questions we ask, the more complacent we become. Ask more exploratory questions and listen more carefully so you can understand more deeply. Then, through in-depth analysis and research, we will surely find innovative ways to solve these problems.


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