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Newsletter Sept 2008

Innovation in Finland, Rules for IP, Innovation roles for SMEs

   
Technology from Finland
 
Biochar

 

 

Newsletter: September 2008

Roles for innovation

The innovation process requires organisations to commit considerable time and resources to the achievement of long-term objectives. Innovation will inevitably carry risks, two of the biggest being the backing of ideas which lack commercial viability and not having sufficient resources to see the project through to completion.
These risks can be mitigated by assigning roles within the organisation to manage different aspects of the innovation process. Roberts and Fusfield(1) came up with five roles required for innovation in technology based organisations and these are covered below, together with some suggestions as to how these roles may be handled in small organisations.


1. Idea generators
This category includes both inventors who come up with original ideas, and innovators, who develop the idea into something more tangible. Remember innovation can come from marketing departments as well as research labs.

Characteristics Inventors tend to be mavericks, often not fitting easily into a corporate environment. They will be imaginative and practical, ruled by intrinsic rather than extrinsic motivation.
Contributions High quality, original ideas
Rewards Status and peer recognition, the opportunity to write papers and give presentations at conferences.

2. Gatekeepers
The gatekeeper’s role is to determine which ideas are both commercially viable and also fit in with the company’s long term objectives. They will play a key role in determining where the organisations resources are to be invested.

Characteristics Gatekeepers will identify strongly with the organisation’s goals. Good gatekeepers will understand their crucial role in picking winners, bad ones will tend to become blockers.They will be excellent communicators.
Contributions Strong technical and market knowledge.
Rewards Acknowledgement of role, increased independence.

3. Entrepreneurs/champions
Innovation projects will need backing from senior management to provide human, capital and financial resources, in order to turn innovative ideas into marketable products or services. Entrepreneurs will need a combination of bravery to swim against the tide, vision and realism.

Characteristics Entrepreneurs will be achievement oriented, opportunistic and used to handling high levels of risk.
Contributions Making new things happen, drive, financial resources
Rewards Making new funds available, high financial returns

4. Sponsors/coaches
To ensure that the process works as effectively as possible, the sponsor/coach will be responsible for helping the team to overcome problems.

Characteristics Independent, high levels of experience which implies a respect for his/her views.She/he will need excellent communication skills, both to challenge the innovators deeply held visions and also to represent the ideas to senior management.
Contributions: Seeing that the project is carried through
Rewards: Seeing that the project is properly resourced.

5. Project leaders
These will be the people who actually make the thing happen. More down to earth than other members of the innovation team, the project leader will focus on delivery.

Characteristics Good man-management skills and the capabilities required to see the project through. Good team players
Contributions Meet deadlines
Rewards Peer recognition, increased status,roles in future projects.


Innovation roles in SMEs

Whilst large corporates will have specific individuals assigned to each of the above roles, a 10 person SME is unlikely to be able to find enough individuals with the right capabilities to fill all these roles. The following are a few suggestions for facilitating innovation roles in small organisations

  • Often the project leaders will be part of the management team – the inventor, entrepreneur and project leader may well be the same person. Here, the role of an independently-minded gatekeeper is even more crucial. He/she may require the position of chairman or non-executive director to balance that of the founder/inventor/CEO.
  • Use of processes - however informal. For example, the gatekeeper role could be undertaken by a periodical team meetings which follow pre-agreed guidelines to determine which projects the company will take forward.
  • Mentors may play the role of coach, providing experience otherwise unavailable to start-ups. These are usually available through the regional development agencies' Enterprise Hub Networks.
  • Use of innovation techniques. For example, the 'Disney Strategy', whereby individuals take on the roles of dreamer, critic and realist to approach issues from a variety of angles.
  • Partnering. The team may come to the conclusion that there are going to be elements of the process beyond the orgsanisations capabilties and thus partnering could be a useful alternative. This could mean assigning part of the R&D process to a university, contracting aspects of develoment to specialist companies, or even licensing the technology to an established player.

 

For further information, including over a hundred techniques for creativity and innovation, please contact Chris Budleigh at Chris@psi-ense.co.uk

(1) Roberts, E.B., & Fusfield, A.R. (1981). Staffing the innovative technology-based organization. Sloan Management Review, 22: 19-34