Innovation management is the way to lead a network of internal and external actors to create and deliver new added value to customers, to it’s eco-system, to society and by creating WIN-WIN to the network itself.
Some of the challenges of Innovation Management can be derived from the strategic resource perspective of Prahalad and Hamel in their book “Competing for the Future” (1990).
Innovation and it’s issues is very organization and/or network specific. My experience is that most innovation issues can be linked to one or more of the purposes and activities in the Business Creation Model above. These activities may have conflicting purposes or require conditions (like culture). For example: “Maximizing efficiency and productivity” in the “Compete for Market Share” may conflict The real challenge of Innovation Management is to find the right priorities and translate these into a temporary balance and then already move the organisation to the next more or less stable state. This business creation model reads as a step-by-step approach, but in reality most innovative companies are doing a lot of these things at the same time.
A small example to show the dynamics (especially in the front-end innovation and not yet process/project driven stages)
With new network tools, like Gelphi, we are able to visualize the tentions in organisation due to these transformations. In the innovation network above, each dot is a person. One can see that some clusters are present and as manager knowing who should be co-creating with who, one knows that it is not OK. Certain clusters should be working together more than that is visualized here. Withn Gelphi, one is able to make these graphs dynamic, so show developments in the network structure over time.