Future Growth through Radical Innovations: The Role of Senior Management
Large established firms are generally good at managing incremental innovations, yet they often fail when developing and deploying radical innovations (RIs). Senior management at large firms is becoming increasingly aware of the importance of RIs. However, most of the large firms have failed to establish a mechanism i.e. a well defined organisational structure, management processes and resource allocation system, to develop RIs successfully. Such firms can learn from leading companies like Shell, Nokia and IBM who have successfully established RI mechanism and finely balanced their resources between incremental and radical innovations. This paper presents three main implications for management. One, a firm needs a fine balance between incremental and radical innovations to ensure long-term survival and growth. Two, the senior management must establish a RI mechanism, which may include instruments such as an incubation unit, a validation unit and/or a venture capital arm among others, to incubate and develop radical innovations systematically and continually. This mechanism should be customised to individual firms needs. Three, the management must deploy adequate resources, funds and managerial time, for a longer term for a successful RI mechanism.
Large Established Firms Incremental Innovation Radical Innovation (RI) RI Mechanism Shell Nokia IBM
Chintan M. SHAH J. Roland ORTT Marc A. ZEGVELD Leo ROODHART
Delft University of Technology, The Netherlands Shell International BV, Rijswijk, the Netherlands
国际会议
The Fifth InternationalSymposium on Management of Technology(ISMOT07)(第五届技术与创新管理国际研讨会)
杭州
英文
359-363
2007-06-01（万方平台首次上网日期，不代表论文的发表时间）