MANAGEMENT OF PROCESS AND PRODUCT INNOVATION

Authors

  • Srdjan Milićević Faculty of Management, University Metropolitan in Belgrade, Serbia

Keywords:

innovation, innovation process, innovation management

Abstract

The promotion of innovation occupies one of the central places in almost every review of the priorities of modern business management. However, managing innovation processes in a company is not a simple activity, even when incremental product and process improvements are taken into account, not to mention innovations that could bring the company a lasting competitive advantage in the market over time. Although the innovation process may at first glance seem like a spontaneous activity with no expressed need for management, there are many contexts within which they take place, and in which effective innovation management is of utmost importance for the quality of business performance. First of all, there are numerous uncertainties and risks as inevitable companions of all innovation processes. Also, there is the complexity and potential unusability of innovation solutions. Precisely due to the influence of these factors on innovation activities in companies, the number of companies that have managed to create continuous innovation superiority over others is not large.
The management of innovation processes and innovations starts from the long-term business goals of the company. The goals are based on a strategic analysis of the environment, primarily market and technical environmen, so that the resulting value is an adequate response to the requirements of the environment. Based on the strategy, a plan is defined for the development and mobilization of resources and capabilities required for the implementation of the innovation process aimed at achieving the desired goals. Assessment of resources and capabilities refers to the necessary resources and competencies, time and budget necessary to achieve the goals.
Innovation is a highly uncertain activity. Some innovations have some uncertainty about the applicability of new solutions. For others, uncertainties related to consumer reactions to new products and services come to the fore. In most cases, there are uncertainties generated by the size of the resources required or the time required to valorize the innovation commercially.
The innovation process is multifactorial in nature. It implies a high degree of integration of activities within the company, and very often between different companies. In modern conditions, the innovation process is supported by increasingly powerful information and communication technologies. The functions in the company that are basic for the innovation process and innovation management are: production, marketing, research and development. Innovation is successful if its use enables the company to constantly grow. Innovation management in the company includes planning, organizing, coordinating and controlling innovation processes and innovations.

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Published

2022-03-30

How to Cite

Milićević, S. (2022). MANAGEMENT OF PROCESS AND PRODUCT INNOVATION. KNOWLEDGE - International Journal, 51(1), 139–144. Retrieved from https://ikm.mk/ojs/index.php/kij/article/view/5126