Processes for Managing Innovation

Processes for Managing Innovation

Stage Gate Model

The stage gate process of innovation is one of the famous processes of innovation that many firms use. This innovation model is divided into six stages that are separated by gates. At each gate, a decision is supposed to be made whether the process continues or not. The decision to continue is based on the success of the previous stage. Thus, the following choices are supposed to be made: go, kill, or recycle/repeat (DelVecchio, White, Phelan, 2013). Go means that the previous stage was successful, and the gat will allow the process to proceed to the next stage. Kill means that the project is not viable enough to develop further and shut down. Recycling means that the project is good enough to develop further if a few adjustments are made (Toolshero, 2021). The stage-gate innovation process model is suitable for continuous innovation.

Agile Model

The agile innovation process model is about agility, speed to take to the market, and faster decision-making. The agile innovation model involves dividing the tasks into short phases of work coupled with continuous reassessment and adaptation plans. The agile innovation model thrives on the fact that innovation is no longer a choice but is a necessary evil for any company to stay ahead of the competition (Lead, 2020). Thus, focused companies employ an agile model of innovation to cultivate their innovative culture. As mentioned, the main characteristics of the agile model are fast decision-making and speed to market. Apple Company is an excellent example of employing an agile innovation process. Apple is known for its innovative culture, meaning that it makes fast decisions and comes up with unique products for the theme market.

Lean Model

The lean innovation model fosters efficiency in operations and minimizes costs so production is as possible. The lean innovation model mainly utilizes customer feedback to rectify where necessary, focusing on cutting costs. One major characteristic of the Lean model of innovation is that it prioritizes the experimentation of things rather than elaborating on specific plans (Laundry, 2017). The lean innovation model embraces continuous innovation.

Discover-Iterate-Pivot

The Discover-iterate-pivot model of innovation is simply innovation using minimum viable products. When developing products, it is possible that customers would love some products while others will not att5aract theme hence failing. However, the failure of a particular product on the market should not be the end. The producer can decide to modify the product according to the customer’s preferences and, later, the demand for such products (DelVecchio, White, Phelan, 2013). In other words, the dico0ver-iterate and pivot is an innovation model that creates a new effect that takes the market to gauge the customers’ response before modification and mass production.

Recommendation and Rationale For Recommendation

I recommend the stage-gate model because it is a comprehensive process of innovation. When the process is leading to the right end goal, the models show that it cannot continue. One of the advantages of the stage-gate innovation model is that it breaks down big goals into manageable stages. It allows the completion of each stage before additional resources are allocated for the next stage, hence considering the external environment. In other words, stage-gate models allow time to focus clearly on meeting short-term goals, thus preventing time wastage.

Explain Recommendations

One can measure team success at each stage by observing whether the gates are allowing for continuation to the next stage. In this stage, it is easier to review and implement the changes because each gate suggests the changes that should be made. In knowing whether the project is done, one should just check whether the process was through from stage 0 to stage 5.

Plan For Addressing the Concerns

The key stakeholders who would use the report are the top company management, such as the CEO, the chief financial officer, and the creditors. The top management may have concerns concerning the Stage gate innovation process; first, they will be concerned with the amount of resources that would be needed to complete the project. The second concern would be whether they have enough experts to steer the process.

References

DelVecchio, J., White, F., Phelan, S. (2013). Tools for Innovation Management: A Comparison of Lean Startup and the Stage Gate System. SSRN Electronic Journal

Laundry, L.(2017). Lean Innovation: What It Is and How It Can Impact Your Business. Retrieved from  https://www.northeastern.edu/graduate/blog/what-is-lean-innovation-and-why-use-it

Lead. (2020). The basic rules for agile innovation management. Retrieved from  https://www.lead-innovation.com/english-blog/agile-innovation-management

Toolshero. (2021). Stage Gate Process (Cooper). Retrieved from  https://www.toolshero.com/innovation/stage-gate-process/

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Processes for Managing Innovation

Overview
As a middle manager, you have already recommended an innovation option (incremental or discontinuous) to the organization from the course scenario. However, one of the organization’s key luxury-market competitors in passenger vehicles recently launched a prototype of a fully autonomous luxury sedan. It has announced that it plans to bring the model to market within the next two years. The organization wants to prepare for the challenge.

You have been tasked with creating a report recommending the most suitable process for managing innovation in a changing external environment (for example, a key competitor coming up with a new product). You will also recommend how cross-functional teams can work effectively within the process. Lastly, you will address the concerns of the key stakeholders about introducing innovation management processes in a changing environment.

Prompt
Based on this scenario, create a process recommendation report. Remember to tailor the information for the target audience and your stakeholders. Your report should include the following points:

Identify the most suitable process for managing innovation in a changing external environment. You must consider the following processes and briefly describe all four processes before you offer your recommendation:
Stage-gate
Agile
Lean
Discover-iterate-pivot
Explain your rationale for your recommendation.
Describe the advantage of your chosen process over others.
Explain how it can address the changing external environment.
Explain recommendations for ensuring cross-functional team effectiveness in the chosen process.
How would you measure team success at each stage of a project?
How would you review and implement changes coming out of success measurements?
How do you know when you are done with the project?
Describe your plan for addressing the concerns of your key stakeholders. Select two of the following departments whose directors will be your audience: research and development (R&D), finance, human resources (HR), or marketing.
Identify key stakeholders in your organization who will use the report.
List at least two concerns they may have about processes for managing innovation.
Explain your response to their concerns.
Guidelines for Submission
Submit a 2- to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. If references are included, they should be cited in APA format. Consult the Shapiro Library APA Style Guide for more information on citations.