Seven sources of innovation opportunities unexpected external event. Program "innovation management"

Drucker P. identifies seven sources of innovative ideas:

An unexpected event for an organization or industry - unexpected success, unexpected failure, unexpected external event

Incongruence is a discrepancy between reality (as it actually is) and our ideas about it (as it should be)

Innovations based on the needs of the process (by the needs of the process one should mean those of its shortcomings and weaknesses that can and should be eliminated)

Sudden changes in industry or market structure

Demographic changes

Changes in perceptions, moods and values

New knowledge (both scientific and non-scientific).

He classifies the first 4 sources of innovative ideas (areas of change) as internal, since they are located within the organization, within an industry or service sector (such sources are available to those working in a given organization or in a given industry). The last three sources are external because they have their origins outside the given organization or industry. However, there are no clear boundaries between all sources, and they can overlap each other.

When choosing an innovative idea and making a decision to introduce any innovation, you need to find out some points:

If we are talking about product innovation, does this or that product have a good chance in the market.

If we are talking about any innovative project - obtaining a real profit (the profit from the project should be significantly higher than the costs of its implementation) and assessing the real risk (the risk associated with the project should be in the maximum acceptable ratio with the profit from its implementation).

Thus, in order to achieve the intended goals and receive monopoly excess profits from innovative activities, the organization must comply with certain conditions and meet certain requirements:

It is necessary to clearly understand the volume of demand of potential consumers for innovation, its economically expressed advantages over existing methods of satisfying this need.

It is necessary to identify resource constraints that arise during the creation, production and marketing of innovations, i.e. it is important to correctly draw up a comprehensive forecast of the economic potential of an innovation

For the successful development of an innovative organization, a prerequisite is that the organization’s personnel meet certain requirements.

With limited material and financial resources and market uncertainty, the quality of organization and management plays a significant role in the success of innovative organizations.

In connection with the above, it is small innovative organizations that are most effective, since they are characterized by the absence of strictly formalized management structures, which ensures speed and flexibility in decision making.

Question 4. Essence, content and classification of innovations.

The term “innovation” translated from English means “innovation”.

In accordance with the classification of J. Schumpeter, the concept "innovations" is considered as:

1) making a new one, i.e., a good that is still unknown to consumers or the creation of a new quality of a particular good;

2) introduction of new, i.e., a given industry of a still practically unknown method (method) of production, which is based on a new scientific discovery and which may also consist in a new method of commercial use of the corresponding product;

H) development of a new sales market, that is, a market in which a given branch of industry of this country has not yet been represented, regardless of whether this market existed before or not;

4) obtaining a new source of raw materials or semi-finished products, regardless of whether this source existed before, or was considered inaccessible, or had yet to be created

5) carrying out appropriate reorganization for example, securing a monopoly position or undermining the monopoly position of another enterprise.

Innovation – this is the final result of introducing an innovation with the aim of changing the control object and obtaining an economic, social, environmental, scientific, technical or other type of effect.

Innovation- this is the formalized result of fundamental, applied research, development or experimental work in any field of activity to improve its efficiency.

Innovations and inventions become innovations after their commercialization (implementation).

The time between the emergence of an innovation and its implementation into innovation is called innovation lag.

Innovations can take the form of:

Discoveries;

Inventions;

Patents;

Trademarks;

Rationalization proposals;

Documentation for a new or improved product, technology, management or production process;

Organizational, production or other structure;

Know-how;

Concepts;

Scientific approaches or principles;

Results of marketing research, etc.

table 2

Types and purposes of innovation

There are a number of classifications of innovations in the literature. The most complete typology of innovations is offered by A. I. Prigozhin:

1) by type of innovation:

Logistics (equipment, technology, materials);

Social;

Economic;

Organizational and managerial;

Legal;

Pedagogical;

2) on innovative potential:

Radical (basic);

Combinatorial (use of various combinations);

Modifying (improving, complementing);

3) according to the principle of relation to its predecessor:

Replacement (instead of obsolete);

Canceling (excludes the execution of operations);

Returnable (to the predecessor);

Opening (new, no analogues);

4) by volume of application:

Spot;

Systemic (technological, organizational, etc.);

Strategic (principles of management, production);

5) by efficiency (goals):

Production efficiency;

Management efficiency;

Improving working conditions, etc.;

6) on social consequences:

Causing social costs;

New types of monotonous labor;

Harmful conditions, etc.;

7) according to the features of the mechanism for its implementation:

Single (for one object);

Diffuse (for many objects);

Completed and unfinished;

Successful and unsuccessful;

8) according to the features of the innovation process:

Intra-organizational;

Interorganizational;

9) by source of initiative:

Direct social order;

As a result of the invention.

Each innovation is implemented according to a scheme called innovation cycle, including various stages - from idea to commercialization of innovation.

Generalized diagram of the innovation cycle

In management practice, many recommendations have been developed regarding the search for sources of new opportunities for the organization. The need for innovation arises for various reasons. However, a problem-driven approach to finding new ideas hinders the development of an organization. Therefore, managers must be able to find opportunities that lie in combining the new state of the external environment and the organization’s potential, i.e. work ahead.

Competitive advantages - characteristics of an enterprise, its products or services that provide it with certain advantages over competitors.

These advantages are due to various factors. The American specialist in the field of strategic management M. Porter considers the main ones among them:

New technologies;

New customer requests;

The emergence of a new market segment;

Changes in the cost or availability of production components.

Considering its significance for the organization, its competitive advantages are divided into two types:

Low-ranking advantages associated with the availability of sources of raw materials, the presence of cheap labor, obtaining temporary tax breaks, etc. They are unstable because they can be copied by competitors.

The advantages of a high rank associated with the presence of qualified personnel at the enterprise, capable of using modern technologies in all areas of activity, conducting innovative searches and creating new products, obtaining patents, developing and improving the material and technical base of the enterprise, ensuring high standards of its activities and creating a positive image. Such benefits are long-lasting and provide the opportunity to achieve higher business efficiency.

The famous management specialist Peter Drucker highlighted seven main sources of innovation:

1. Unexpected event (success, failure, event in the external environment).

2. Discrepancy or discrepancy between reality and its reflection in our opinions and assessments.

3. The needs of the production process.

4. A change in industry and market structure that “took everyone by surprise.”

5. Demographic changes.

6. Changes in consumer perception and sentiment.

7. New knowledge (scientific and non-scientific).

Although these sources of innovation are only symptoms, they should nevertheless be considered reliable indicators of impending changes, which managers and specialists must notice in a timely manner.

1. Unexpected event

The richest opportunities for effective innovation come from unexpected success (Table 1). At the same time, innovative opportunities are associated with a lower risk of obtaining a negative result, and the implementation of innovations is less labor-intensive.

Table 1

Use of drugs intended for humans to treat animals

Unexpected success must be noticed, and it must be reflected in the information that the manager receives.

Unlike unexpected success failure rarely goes unnoticed, but it is perceived even less frequently as a symptom of new opportunities. Most failures are the result of mistakes, incompetence in planning or execution. If a project is carefully prepared and conscientiously executed, but turns out to be unsuccessful, you should find out why this happened: perhaps the premises of the project did not correspond to reality.

It should be borne in mind that favorable innovation opportunities are not created by any unexpected events, but only by those that make it possible to use the knowledge and experience available in the company in a slightly different environment. This is not about diversification, but about expanding its field of activity.

2. Discrepancy between what is and what should be

Discrepancies between reality and perception typically do not appear in reports provided to managers. This phenomenon is more qualitative than quantitative, and can be expressed in the following situations.

· Inconsistency between economic indicators. An increase in demand for products and an increase in production volumes should also correspond to an increase in profits. The discrepancy between the dynamics of these indicators across the industry or its large sector indicates a crisis situation. An innovator who notices this discrepancy and finds a new solution to the problem can expect a long period of success. As a rule, large enterprises do not quickly realize that they have a new and serious competitor.

· Discrepancy between reality and the idea of it. This discrepancy occurs when industry leaders rely on faulty assumptions and misunderstand the real situation. Efforts are concentrated in areas where positive results do not exist. For example, the emergence of private clinics, document processing centers, private schools and kindergartens.

· Discrepancy between the buyer's values and managers' perceptions of them. Leaders think they know everything, but in reality something else is happening - this is a widespread phenomenon in the world, often due to the manifestation of intellectual arrogance. Japanese radio manufacturers at one time were sure that the poor could not afford such a luxury as a television, and computer manufacturers did not imagine its use as a personal device.

Conditions for the emergence of innovations are constantly being formed in society, but for many reasons they often go unnoticed. Most people - business managers, businessmen, financiers - do not notice or remain indifferent to various “symptoms” of impending changes in industry, trade, consumer interests, etc. Discovering innovative opportunities, understanding their significance and timely implementation ensure success in economic activity.

Discovering innovative opportunities, understanding their significance and timely implementation ensure success in economic activity.

The famous management specialist Peter Drucker highlighted seven main sources of innovation:

Unexpected event (success, failure, event in the external environment).
A discrepancy or discrepancy between reality and its reflection in our opinions and assessments.
Needs of the production process.
A change in industry and market structure that "took everyone by surprise."
Demographic changes.
Changes in consumer perception and sentiment.
New knowledge (scientific and non-scientific).

It should be noted that this classification is very conditional. Thus, unexpected success, which is identified as an independent factor, can be considered in other classes (for example, as new knowledge). All of these innovation opportunities are interconnected and overlapping.

Although these sources of innovation are only symptoms, they should nevertheless be considered reliable indicators of impending changes, which managers and specialists must notice in a timely manner.

1. Unexpected event

Table 1. Use of drugs intended for humans to treat animals

Unexpected success	Veterinarians have discovered that drugs for humans are great for treating animals.
Actions of leading pharmaceutical companies (Switzerland)	The current situation is assessed as an obstacle to basic activities. Firms refused to fulfill orders from veterinarians
Actions of companies supplying medicines to veterinarians	Cheaply purchased licenses from leading companies for the production of new veterinary drugs and organized their production
Result	The production of veterinary drugs has become the most profitable sector of the pharmaceutical industry. But the profits were not made by the companies that first developed the drugs.

Unexpected success must be noticed, and it must be reflected in the information that the manager receives.

Unlike unexpected success failure rarely goes unnoticed, but it is perceived even less frequently as a symptom of new opportunities. Most failures are the result of mistakes, incompetence in planning or execution. If a project is carefully prepared and conscientiously executed, but turns out to be unsuccessful, you should find out why this happened: perhaps the premises of the project did not correspond to reality.

2. Discrepancy between what is and what should be

Inconsistency between economic indicators. An increase in demand for products and an increase in production volumes should also correspond to an increase in profits. The discrepancy between the dynamics of these indicators across the industry or its large sector indicates a crisis situation. An innovator who notices this discrepancy and finds a new solution to the problem can expect a long period of success. As a rule, large enterprises do not quickly realize that they have a new and serious competitor.
Discrepancy between reality and the idea of it. This discrepancy occurs when industry leaders rely on faulty assumptions and misunderstand the real situation. Efforts are concentrated in areas where positive results do not exist.
Discrepancy between the buyer's values and managers' perceptions of them. Leaders think they know everything, but in reality something else is happening - this is a widespread phenomenon in the world, often due to the manifestation of intellectual arrogance. Japanese radio industrialists at one time were sure that the poor could not afford such a luxury as a television.

3. Production process needs

In production activities, situations often arise when technological process bottlenecks hinder business development. In this case, there is a need to replace a weak link or rebuild an existing process in accordance with the new level of knowledge.

In the 80s XIX century There was a weak link in photography - heavy glass photographic plates. Focusing on this bottleneck of the process and accumulating knowledge accordingly allowed George Eastman, the founder of Kodak, to replace these plates with cellulose film and design a lightweight camera for it. Ten years later, Eastman Kodak became the world leader in photography.

Needs for improvement of production processes may arise due to demographic constraints that do not allow for increased demand for services at the existing level of the process.

4. Changes in industry and market structures

Crisis situations that arise from time to time in industry or market structures also provide opportunities for innovation. The following indicators of future changes are known:

Rapid growth of the industry. If the output of an industry is growing faster than the population or the economy as a whole, then the structure of the industry must change. The latest change will occur when output doubles. Nevertheless, the existing activity still brings an effect, and therefore no one is inclined to give it up. When production volume doubles, industry enterprises, as a rule, cease to understand the needs of the buyer and effectively serve the market.
The rapprochement (convergence) of technologies. The combination of several technologies into one causes major changes in the structure of production. For example, the revolutionary microwave oven does more than just cook: you can use it to access the Internet to check your bank account, watch TV, or send email to friends.
The industry is maturing for its major structural transformation. When the nature of production operations changes, the conditions are created for structural changes in the industry. When a crisis situation occurs, businesses must act urgently: sticking to the same strategy is dangerous. Innovations that take advantage of changes in industry and market structures are especially effective when the market is dominated by one or a few companies producing goods and services. They are accustomed to many years of success and are infected with arrogance and therefore neglect the innovations of firms entering the industry. When newcomers redistribute the market, large corporations and firms cannot quickly and effectively mobilize forces to fight.

5. Demographic changes

Demographic changes - the size of the population, its gender and age structure, employment, level of education and income, etc. - greatly influence the volume of demand for goods and services, which opens up new opportunities for innovation.

6. Changes in the perception and mood of the population

Changing moods in society, changing people's attitudes to reality, and creating new values represent serious opportunities for innovation. Methods for analyzing demographic changes are well known, and a qualified statistician can provide the necessary information. The main thing is the correct formulation of the task by the manager.

From the point of view of business development prospects, it is important to know the age distribution of the population, and within it - the largest and fastest growing cohort of people. It is this that will cause a sharp change in the prevailing needs and values in society. Changes in the distribution of groups with certain levels of education, professional qualifications, etc. should also be assessed.

The present tense is characterized mobility of social priorities and public views, which change lifestyles, creating new business opportunities. For example, the concern of part of the population with high consumption of salt, sugar, preservatives, etc. has led to a transformation of food preparation methods, changes in their composition and taste. The increased interest of people in physical perfection contributed to the emergence of the “health industry”: the production of exercise equipment, appropriate clothing and footwear, dietary supplements, the construction of gyms, as well as scientifically based nutrition programs, etc. However, it should be remembered that in this situation it is important to distinguish between genuine changes in people's mood from following fashion.

7. Features of innovations based on new knowledge

Uncertainty is often perceived as a negative characteristic, but in R&D management it is synonymous with high-impact opportunity.

For example, Gillette's expertise has played a leading role in the discovery of "a better way to shave." Gillette's accumulated knowledge of the science of shaving allows it to continually innovate and successfully bring new products to market. Over the past decade, the company entered the market first with the Atra Plus razor, which has a moving head and lubricating strip, then with the Sensor blade, which adapts to the shape of the face. The next step is the launch of the new generation of Mach 3 razors in 70 countries. Each subsequent product was better than the previous one and was more expensive.

The implementation of innovations based on new knowledge is characterized by the greatest expenditure of time compared to other innovative opportunities. In addition, they require a combination of knowledge obtained in different fields, so innovations based on new knowledge require special conditions.

A thorough analysis of the knowledge itself is necessary to create an innovation., as well as the social, economic and psychological characteristics associated with it. Social and economic analysis is more important than technical analysis. It is important to find out what conditions are not sufficient for the successful implementation of an idea. If all conditions cannot be met, then innovation should be postponed. Managers must be prepared to accept that unpromising projects should be abandoned without regret and that when great opportunities are being sought, a high percentage of unsuccessful projects is normal.
A clear focus on strategic market dominance is important. A promising innovation immediately attracts competitors, and therefore leadership must be achieved quickly, and the introduction of innovations is aimed at the following goals: a comprehensive system of servicing consumers of the new product; clear market orientation; strategic behavior that allows you to quickly adapt to rapid changes in the market.
Implementation of knowledge-based innovations(primarily scientific and technical) requires entrepreneurial management, i.e., focusing on specific market requirements and financial foresight: forecasting cash flows and future capital requirements.

Keywords: forms, features, entrepreneurial, activities, sources, innovative, changes

Status entrepreneur is acquired only through state registration of the enterprise. In cases where business activity is carried out without the use of hired labor, it is registered as individual labor activity, and with the involvement of hired labor - how company.

It follows that entrepreneurial activity is carried out in two forms:

the owner of the means of production at your own peril and risk and under your own property responsibility (individual labor activity);

head of the enterprise on behalf of the owner.

The limits of disposal of such property are regulated contract (agreement), defining the mutual obligations of the parties. This agreement specifies restrictions on the rights to use property and conduct certain types of activities, the procedure and conditions for financial relationships and material liability of the parties, grounds and conditions for termination of the agreement.

The owner of the property has no right to interfere with the activities of the entrepreneur after concluding an agreement with the manager (entrepreneur), except for cases provided for by the agreement, the charter of the enterprise and the law.

An entrepreneur (manager) has the right:

Attract on a contractual basis and use financial resources, intellectual property, property and certain property rights of citizens and legal entities;

Independently formulate a production program, select suppliers and consumers of your products, set prices for them within the limits determined by the legislation of the Russian Federation and contracts;

Carry out foreign economic activities;

Carry out administrative and administrative activities to manage the enterprise;

Hire and fire workers on behalf of the owner of the enterprise.

On all counts the entrepreneur is obliged to organize activities in accordance with the legislation of the Russian Federation and the contracts concluded by him and bear responsibility under the law for improper execution of concluded contracts, violation of property rights of other entities, environmental pollution, violation of antimonopoly legislation, failure to comply with safe working conditions, and the sale to consumers of products that cause harm to health.

The entrepreneurship formula is simple: obtaining maximum profit with minimal risk. However, its implementation is carried out in conditions of a high level of uncertainty in the success of the business. This uncertainty, on the one hand, is determined by market relations (whether the businessman’s proposals will be recognized in the market), and on the other hand, by the dynamics of changes in supply and demand.

Hence, the most important features of entrepreneurship are risk, mobility, dynamism of entrepreneurial actions(not to be late, to catch the changing demand in time). An entrepreneur, as they say, does not sit still, he is constantly looking for something new. In order to withstand competition, it continuously improves its production technology, adjusts the price of the product and its quality in accordance with the changes occurring in its sphere of action.

French economist J.B. This back in 1800, he observed that the entrepreneur moves economic resources from an area of low productivity and low income to an area of higher productivity and profitability.

At the same time, entrepreneurship, like any type of activity, must have a theoretical foundation that explains its essence. Based on the purpose of entrepreneurial activity, namely constant search for new, constant improvement of the enterprise's position, then it is obvious that it cannot rely only on classical economic theory, which provides ways to optimize what already exists, i.e. it focuses on the issues of extracting maximum profit from available resources and achieving balance.

And in this regard, we share the point of view of the American scientist Peter Drucker that The theoretical basis of entrepreneurial activity is the economic theory of dynamic disequilibrium.

The founder of this theory was J. Schumpeter, who in his book The Theory of Economic Dynamics (1911) abandoned traditional economic theory and argued that the “norm” of a healthy economy is not equilibrium or optimization, but dynamic disequilibrium, caused by activity innovative entrepreneur, which is aimed at creating new consumer demand, at obtaining something different from the previous one, providing a qualitatively more complete satisfaction of needs.

True, the latter does not always mean something completely new. It is, as a rule, based on an already known use value (product or service), but by introducing new technology and increasing the return on investment, the entrepreneur creates a new market and a new consumer.

Example this is McDonald's restaurant chain, whose activities are pure entrepreneurship. What we have here is a situation in which the demand for these products has grown to such an extent that a special “market niche” has emerged.

An entrepreneur can achieve all this with the help of an existing “resource”, into which he must “breathe” new life or find a new resource that will help create new consumer values, ultimately leading to the so-called creative destruction.

The fact is that any resource becomes useful only when a person finds it in nature and gives it economic value, i.e. can obtain from it or create new goods or services with its help.

It follows that the basic principle of the theory of dynamic disequilibrium is innovativeness approach, which results in the creation of new resource, violating the accepted balance.

This innovative approach should be viewed as an innovative process that occurs continuously and purposefully in search of changes to existing practices as a source of social and economic benefits.

At the same time, these innovations are extremely diverse, and each of them has its own specific reasons and incentives. This circumstance makes it necessary to classify changes that occur for one reason or another.

In this regard, in our opinion, the most complete of all available classifications American economist suggests changes Peter F. Drucker.

He suggests highlighting seven sources of innovative change:

Unexpected event (for an enterprise or industry) - success, failure, external event;

Incongruence is a discrepancy between reality as it actually is and our ideas about it;

Innovations based on process needs;

Sudden changes in industry or market structure;

Demographic changes;

Changes in perceptions, moods and values;

New knowledge (both scientific and non-scientific).

All of the above types are close, sometimes it is even difficult to distinguish them. And at the same time, the analysis of situations that arise when considering one or another type of change allows establish the nature of innovative solutions.

In any case, you can always get answers to questions such as: "What will happen, if we take advantage of the current change? Where can this lead? company? What should be done, to turn change into a source of development?

However, of the seven types of changes, the third and seventh are the most important, since they are the most radical in nature.

The change brought about by life is much more important than the first two. The old proverb says: "Necessity is the mother of invention." In this case, the change is based on the needs of practice, life. (Replacement of manual typing in book printing, preservation of food freshness, etc.)

However, the implementation of this type of change requires the need to understand that:

1. Not enough feel the need it is important to know it, to understand it in its essence, otherwise it is impossible to find its solution.

2. Not always it is possible to satisfy the need, in which case all that remains is solution to some part of it.

In any case, when solving a problem of this type, it is necessary to answer questions such as: “Do we understand what changes the process needs? Do we have the necessary knowledge or do we still need to obtain it? Are our decisions consistent with habits, traditions and target orientations of potential consumers?"

The most significant changes, one might say radical, occur on the basis "new knowledge". Innovations, based on new knowledge (discoveries), as a rule, are difficult to manage. This is due to a number of circumstances.

First of all, there is usually a large gap between the emergence of new knowledge and its technological use, and secondly, a lot of time passes before the new technology materializes in a new product, process or service.

In this regard, innovations based on new knowledge require:

1. Careful analysis of all necessary factors.

2. A clear understanding of the goal being pursued, i.e. a clear strategic orientation is required.

3. Entrepreneurial management organizations, since financial and managerial flexibility and market focus are required here.

An innovation based on new knowledge must “ripe” and be accepted by society. Only in this case will it bring success.

But there is innovations that are based sometimes not on new knowledge, but on ideas. This type of innovation in quantitative terms and in its consequences overlaps all other types of innovations. It can be considered eighth in addition to the above classification.

Example This is the appearance of zippers, ballpoint pens, aerosol cans, ring openers on cans of beer or soft drinks, and much more. Entrepreneurs should always be focused on using ingenious ideas.

But when using them there is a high degree of risk.

In general, speaking about changes based on new And brilliant ideas, it should be emphasized that their implementation must be guided by a number of principles. These include:

all innovations must be purposeful;
they all must begin with an analysis of opportunities, and first of all, the sources of innovative opportunities are analyzed;
establishing the market's receptivity to the innovations being implemented.

Innovations should be simple and targeted . They should be aimed at solving only one problem. Simplicity and accessibility are the key to success.

By following these principles in his practical activities, an entrepreneur can achieve good results in his work.

But in this case, the question arises: how do relatively stable forms of economic activity differ from entrepreneurship in their content (this, as a rule, refers to the organization of work of enterprises with large production and material assets), which in market conditions also strive to make a profit as economic foundations of development?

This difference lies in the fact that their activities (forms and methods) are based on long-term development goals of the enterprise, and the goals include not only making a profit, but also increasing or maintaining market share for selling their goods or providing services, creating new types of products and services , radical improvement in the quality of products, constant updating of the range, etc.

The need to take into account long-term development goals of the enterprise is determined by the fact that their implementation - carrying out R&D, production time, establishing cooperation, etc. - requires a long time.

In addition, it is necessary to increase the efficiency of using expensive equipment, which is only possible on a long-term basis. But this, of course, does not mean that the usual form of economic activity does not include certain elements of entrepreneurial activity.

On the contrary, such features of entrepreneurship as mobility and dynamism, the desire to sensitively grasp market conditions etc., are always considered in terms of implementation current tactical actions aimed at successful implementation strategic goals taking into account the changing conditions of the environment in which enterprises operate.

At the same time, the entrepreneur in his actions proceeds from a long-term forecast and even, perhaps, from the establishment long term goals(in this case, profit is usually taken as a long-term goal) of its development, but this is not decisive for the results of its activities.

1. Research stage

2. Production stage

3. Consumption stage

1. the birth of an innovation

2. mastering the innovation

3. diffusion of innovation

4. routinization of innovation

Generation

Checking technical feasibility

Creation of a prototype

Comprehensive testing and improvement of technical characteristics

Market Probing

Organization of large-scale production

Market expansion

Market needs analysis

Large scale marketing

First stage

Second phase

Third stage

Fourth stage

Fifth stage

Sixth stage

Organization of the innovation process

Figure: Dynamics of costs and profits during implementation

T0 t1 t2 t3 t

Gross income

Net income

- profit

- current costs associated with production and sales of products

Obviously, the early stages of this process are obviously expensive, and costs increase sharply as the innovation approaches the market (time t1). The segment t0-t1 corresponds to the first four stages of the innovation process. With the onset of the fifth stage, the organization begins to receive income from sales, which further grows with the expansion of the scale of production and sales (curve W on the segment t1-t3). Naturally, this happens only with the successful development of the innovation process. Curve V on the same segment characterizes the receipt of net income, starting from time t1. It is formed by subtracting from gross income W current costs Q associated with the production and sale of marketable products. From a certain point in time t2>t1, net income compensates for the costs in the early stages of the innovation process and the organization begins to receive net profit (curve P on the segment t2-t3).

Figure: Mechanism for phased financing of innovations

1. 2. 3. 4. 5. 6. time

1. – pre-seed financing

2. – start-up financing

3. – stage of initial expansion

4. – rapid expansion stage

5. – preparatory stage

6. – stage of ensuring liquidity of risky investments

1. Pre-seed financing involves financial support for work on the theoretical and practical substantiation of the commercial significance of your idea. At this stage, preliminary research and development is carried out, the potential market for new products is assessed, and an activity plan for the future organization is prepared. The stage can last from several months to one year and on average requires investors in the new organization to invest up to $300 thousand. This is the most risky investment, since there is virtually no reliable information to determine the viability of the proposed project. Typically, about 70% of new ideas are discarded at the end of this stage. At the same time, accepted ideas bring the highest profits to investors who entered the business at this stage.

2. At this stage, the work on organizing a new enterprise and selecting key employees is almost completed, the development and testing of a prototype of the innovation, as well as the study of market needs, are nearing completion. The organization's leaders already have a formal business plan that serves as the basis for negotiations with venture capital investors. The new organization needs financing in order to begin producing and selling its products. In some cases, additional research and development costs are necessary. The stage takes about a year and usually costs investors up to $1 million. Due to the high degree of risk, joint investments by several venture investors are often practiced.

3. The initial expansion stage involves the transition of an innovative organization to practical activities for the commercial development of a new type of product or service. At this time, the organization needs advertising, strengthening its reputation with consumers, overcoming competition, creating a sales network for commercial products, organizing and improving production management. Profits from product sales do not yet provide financial opportunities at this stage for further growth, payment of current expenses and creation of working capital. At the same time, the organization's existing assets do not serve as a reliable guarantee for obtaining loans from banks. Thus, entrepreneurs are again resorting to the services of risk capital investors. This stage can take several years and requires several million dollars for the new organization to operate normally. Therefore, several venture funds usually take part in financing innovations.

4. If the previous stage is completed successfully, it is followed by a stage of rapid expansion, in which the organization needs significant funds to increase production capacity, working capital, improve the sales system, and also to improve its products.

5. Once an organization has reached the stage of rapid expansion and begins to make a profit, the likelihood of bankruptcy decreases significantly. Now it can take advantage of borrowed funds from traditional sources of financing. Attracting new risk capital investors, as a rule, ceases. Conditions are being prepared for the release of shares of the new organization on the securities market. This work takes at least three months and can cost about $300,000 or more.

6. At this stage, shares are issued and sold on the securities market.

The bulk of risk capital (approximately 2/3) usually occurs in the first three stages of financing. The duration of a full cycle of risky investments in one organization varies widely. However, in most cases this period is 5-10 years.

Thus, an indispensable condition for risky investments is the provision of financial resources without paying interest or repaying debt for a sufficiently long period of time. Therefore, risk funds prefer to take the path of joint investments, which significantly reduces the risk of individual investors.

Topic 4. Innovative design and organization of R&D

Sources of innovative ideas

Drucker P. identifies seven sources of innovative ideas:

§ unexpected event for an organization or industry - unexpected success, unexpected failure, unexpected external event

§ incongruence - a discrepancy between reality (as it actually is) and our ideas about it (as it should be)

§ innovations based on the needs of the process (by the needs of the process one should mean those of its shortcomings and weaknesses that can and should be eliminated)

§ sudden changes in industry or market structure

§ demographic changes

§ changes in perceptions, moods and values

§ new knowledge (both scientific and non-scientific).

According to Drucker P., a systematic innovation process consists of a targeted and organized search for changes and a systematic analysis of these changes as a source of social and economic innovation. He classifies the first 4 sources of innovative ideas (areas of change) as internal, since they are located within the organization, within an industry or service sector (such sources are available to those working in a given organization or in a given industry). The last three sources are external because they have their origins outside the given organization or industry. However, there are no clear boundaries between all sources, and they can overlap each other.

When choosing an innovative idea and making a decision to introduce any innovation, you need to find out some points:

§ if we are talking about product innovation - does this or that product have a good chance in the market?

§ if we are talking about any innovative project - obtaining a real profit (the profit from the project should be significantly higher than the costs of its implementation) and assessing the real risk (the risk associated with the project should be in the maximum acceptable ratio with the profit from its implementation).

Thus, in order to achieve the intended goals and receive monopoly excess profits from innovative activities, the organization must comply with certain conditions and meet certain requirements:

§ it is necessary to clearly understand the volume of demand of potential consumers for innovation, its economically expressed advantages over existing methods of satisfying this need

§ it is necessary to identify resource limitations that arise during the creation, production and marketing of innovations, i.e. it is important to correctly draw up a comprehensive forecast of the economic potential of an innovation

§ for the successful development of an innovative organization, a prerequisite is that the organization’s personnel meet certain requirements

§ with limited material and financial resources and market uncertainty, the quality of organization and management plays a significant role in the success of innovative organizations.

Innovation process

The formation of a plan, preparation and gradual implementation of innovative changes is called the innovation process. The innovation process is a broader concept than innovation activity. It can be viewed from different perspectives and with varying degrees of detail:

· firstly, it can be considered as a parallel-sequential implementation of research, scientific and technical, production activities and innovations;

· secondly, it can be considered as temporary stages of the life cycle of an innovation from the emergence of an idea to its development and implementation.

In general, the innovation process is a sequential chain of events during which an innovation is implemented from an idea to a specific product, technology or service and spreads into business practice. Moreover, the innovation process does not end with the so-called implementation, i.e. the first appearance on the market of a new product, service or bringing a new technology to its design capacity. The process is not interrupted, because As it spreads throughout the economy, an innovation is improved, made more efficient, and acquires new consumer properties, which opens up new areas of application, new markets, and therefore new consumers.

An important direction in the study of innovation processes is the identification of real factors that promote or hinder their implementation.

Table: Factors influencing the development of innovation processes

Group of factors	Factors hindering innovation activities	Factors promoting innovation
Economic, technological	·lack of funds to finance innovative projects ·weak material, scientific and technical base and outdated technology, lack of reserve capacity ·dominance of interests of current production	·availability of a reserve of financial, material and technical resources, advanced technologies ·availability of the necessary economic, scientific and technical infrastructure ·material incentives for innovative activities
Political, legal	· restrictions from antimonopoly, tax, depreciation, patent and licensing legislation	·legislative measures (especially benefits) that encourage innovation ·government support for innovation
Organizational and managerial	· established organizational structure, excessive centralization, authoritarian management style, predominance of vertical information flows · departmental isolation, difficulty of intersectoral and inter-organizational interactions · rigidity in planning · focus on established markets · focus on short-term payback · difficulty in coordinating the interests of participants in innovation processes	· flexibility of the organizational structure, democratic management style, predominance of horizontal information flows, self-planning, allowance for adjustments · decentralization, autonomy, formation of target problem groups
Socio-psychological, cultural	· resistance to changes that can cause such consequences as a change in status, the need to look for a new job, restructuring of established ways of activity, violation of behavioral stereotypes, established traditions · fear of uncertainty, fear of punishment for failure · resistance to everything new that comes from the outside	moral encouragement, public recognition providing opportunities for self-realization, liberation of creative work normal psychological climate in the work team

The innovation creation process includes (innovation life cycle):

1. Research stage

§ fundamental research and development of a theoretical approach to solving a problem (fundamental research is theoretical or experimental activity aimed at obtaining new knowledge about the basic patterns and properties of social and natural phenomena, about cause-and-effect relationships in relation to their specific application. There are theoretical and exploratory fundamental research. Theoretical research includes research - the task of which is new discoveries, the creation of new theories and the substantiation of new concepts and ideas. Exploratory research includes fundamental research - the task of which is the discovery of new principles for creating products and technologies, new, previously unknown, properties of materials and their compounds, methods of analysis and synthesis. In exploratory research, the purpose of the intended work is usually known, the theoretical foundations are more or less clear, but the directions are not specified. In the course of such research, theoretical proposals and ideas are confirmed, rejected or revised. The positive output of fundamental research in world science is 5%.);

§ applied research and experimental models (applied/original research is aimed, first of all, at achieving a specific goal or task, at identifying ways of practical application of previously discovered phenomena and processes; applied research work aims to solve a technical problem, clarify unclear theoretical questions, obtaining specific scientific results that will later be used in experimental developments);

§ experimental development, determination of technical parameters, product design, manufacturing, testing, fine-tuning (product development is the final stage of scientific research, characterized by the transition from laboratory conditions and experimental production to industrial production. The purpose of product development is the creation/modernization of samples of new equipment that can be transferred after appropriate tests to mass production or directly to the consumer. At this stage, the final verification of the results of theoretical research is carried out, the corresponding technical documentation is developed, a technical prototype or an experimental technological process is manufactured and tested. A technical prototype is a real working sample of a product, system or process, demonstrating suitability and compliance of performance characteristics with specifications and manufacturing requirements);

2. Production stage

§ primary development and preparation of production (at this stage, a description of possible production methods is made, indicating the main materials and technological processes, conditions of operational and environmental safety. The stage of determining industrial applicability and preparation for production is the period during which the product must be prepared for release to the market. The result is a prototype - a full-scale operating model, designed and built to determine the requirements for the production of a new product. The prototype fully complies with the industrial design standards of the final product being mastered in mass production. Data from technical analysis and information collection are the basis of the feasibility study , containing a detailed assessment of the costs of creating and operating the production complex and the profit from selling the product on the market at competitive prices);

§ launch and management of mastered production (full-scale production is the period during which a new product is mastered in industrial production and the production process is optimized in accordance with market requirements);

3. Consumption stage

§ supply of products to the market and its consumption (at this stage, the strategy for promoting a new product to the market is specified, the direct consumption of new knowledge embodied in the new product occurs. At the same time, the actual effectiveness of innovation activity is revealed.);

§ obsolescence of the product and the necessary liquidation of obsolete production (this stage occurs when there is not only physical, but primarily obsolescence of equipment caused by the rapid pace of development of new highly efficient models).

In relation to innovation, as the process of transferring innovation into the field of application, the content of the life cycle is somewhat different and includes the following stages:

1. the birth of an innovation- awareness of the need and the possibility of change, search and development of innovations;

2. mastering the innovation- implementation on site, experiment, implementation of production changes;

3. diffusion of innovation- dissemination, replication and repeated repetition at other objects (the dissemination of an innovation is an information process, the form and speed of which depend on the power of communication channels, the characteristics of the perception of information by business entities, their ability to practically use this information, etc. According to Schumpeter’s theory diffusion of innovation is the process of a cumulative increase in the number of imitators/followers introducing an innovation after the innovator in anticipation of higher profits);

4. routinization of innovation- innovation is implemented in stable, constantly functioning elements of the relevant objects.

Thus, both life cycles are interconnected, interdependent and impossible without one another. Both life cycles are covered by the general concept of the innovation process, and the main difference between them is that in one case the process of forming a new product occurs, in the other - the process of its commercialization.

Figure: Innovation process

Generation

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