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Contemporary vibrant and contracting world demands using a wider approach to Innovation and Innovation Management.
The customary approach’s reduced efficacy is due to the uncomplicated accessibility to exceptional knowledge necessary to Innovate. Accessing and utilizing such knowledge effectually warrants a revitalized approach.
Globalization of Innovation can be accomplished in numerous ways. Four of the common ones are:
- Center for Global
- Local for Local
- Local for Global
- Global for Global
Of the 4 approaches, Local for Global is the most recognized model in the area of Global Innovation. Although implementing such an approach has its challenges, its pursuit allows adoption of Innovation as a source of Competitive Advantage in the future.
Lately, significance of Innovation in emerging countries is growing. An overview of the associated concepts brings to light 3 types of Innovation.
- Metanational Innovation. This comprises of seeking, obtaining, and using effective knowledge, information, and knowhow that is possibly present in different locations across the world.
- Frugal Innovation. This kind of Innovation ascends the distinctive constraining environment of a locality. It is not essential to scale Frugal Innovation to Local for Global Innovation every time.
- Reverse Innovation. This type of Innovation is employed to uncover developed country requirement of minimal functionality/ minimal priced products which were originally created for emerging countries.
While the variances are slight, these can be taken as the emerging country’s form of Local for Global Innovation.
Fundamental in tackling the challenges to Local for Global approach is Metanational Management. Dynamic Resource Situation can be addressed with the help of Metanational Management approach. The Metanational Management approach entails:
- Perceiving globally dispersed knowledge-information, capturing it, distributing it company-wide, and ensuring its utilization.
- Metanational Management moves past local scope, targeting value creation on a global scale.
- Management of the company aims to utilize home-country benefits in the routine but does not cease there, rather tries to capture advantages throughout the world.
- This is achieved via International Innovation Relay; connected to this are the concepts and roles of External Knowledge-Information Brokers and Internal Knowledge-Information Brokers.
- External knowledge-information broker is a delicately adjusted observation system that collects indications from all over the world.
- Placement of the observation system over a wide range and in riskier locations e.g., emerging countries, may help companies obtain comparative and Competitive Advantage.
Role of the Internal Knowledge-Information Broker is:
- To suitably capture knowledge, information, and expertise garnered by the External knowledge-information broker.
- Creating a viable business by using information, specifications, Innovation, and technology.
Metanational Innovation Cycle comprises of a company management’s ability to equally place monitoring systems as well as use the information acquired. Metanational Innovation Cycle requires effectively relating monitoring systems and information acquired. Even though this is an easily understandable concept, handling it presents a significant challenge.
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To be competitive and sustain growth, we need to constantly develop new products, services, processes, technologies, and business models. In other words, we need to constantly innovate.
Ironically, the more we grow, the harder it becomes to innovate. Large organizations tend to be far better executors than they are innovators. To effectively manage the Innovation process, we need to master both the art and science of Innovation. Only then can we leverage Innovation as a Competitive Advantage, instead of viewing Innovation as a potential disruptive threat.
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