Understanding Innovation: Concepts, Types, and Importance in Business

[Music] good day student you are welcome to the ENT 211 class uh today I shall be taking

you on the topic Innovation concept and dimensions my name is Dr of the Department of Business

Administration so in Innovation is the process of creating and

implementing new ideas okay not only ideas Innovation is about creating and also implementing

processes product services that enhances organization performance their growth and improve competitive Advantage so

Innovation can also uh be critical for business which means that business should be adapting to changes in Market

uh technology advancement and consumer expectation and taste so Innovation is about creativity is about

newness Innovation is about doing something new uh in the business that I mean you it's not really about

Reinventing the whe uh but know adding to to the value that a business uh model already has so innovation in business is

multi-dimensional and it encompasses various types approaches and outcomes so we'll be looking at the concept of

innovation and its Dimension so let's now look at the types of innovation that we

have uh Innovation could be one product Innovation that is this is creating new product or improving organ existing ones

for example if you have uh smartphones you can create a new set of smartphone that can know do some other

things scanning for perhaps uh detecting material bacteria for health and hygiene purposes so you can create

new products or improve on the existing product that is if a your smartphone for example has a particular pixel in this

camera uh you can increase it by adding to the existing uh product so any creation of new product or Improvement

in an existing product is called Product Innovation the second one is process Innovation this is a way in which uh

process is a way in which a product is made or delivered or how internal operations of the company is managed so

we can also introduce new ways uh in in in process uh we can adopt new technology in the supply chain we can

also adopt artificial intelligence in the workflow of the organization and the reason why we do that is to increase

efficiency to reduce cost and also improve our quality control and enhance uh speedy delivery of of service so any

form of change or Improvement in the process of making Goods or delivering service is called process innovation

the third one is what is called business model Innovation business model Innovation that is this is changes that

occur in the way a company generates value deliver it product or monetize is offering know for example I mean you may

have a general section you know you go to some hospitals some clinics uh they will divide their customers according to

uh know General Session and special sessions those special sessions will pay more and they will get their services

quicker why the General Session they pay less and at times may have DeLay So introduce a kind of Market

segmentation you know into your business model uh that is a business model uh Innovation uh even in some uh service

you know you have some premium service you have some that uh basic service you know and you pay I mean depending on the

speed and the quality of service being delivered to you uh in terms of the premium that you pay we have what is

called number four service Innovation uh this is enhancing the customer's experience by improving Service delivery

and adding value to the existing uh Services you may you may like if you open by 8 and then you close by four you

may want to start offering a 247 24 hours Service as an innovation it can also personalize uh Service delivery

through eCommerce that is using the internet to provide uh service and this will bring brand loyalty increased

customer satisfaction increased engagement with customers and uh all other Advantage

into service Innovation another type of innovation is what is called organizational Innovation it is changes

in the business structure uh management techniques or the workplace uh culture that Foster growth

and creativity uh for example if you have a flat or a tall structure the organogram is tall you can decide to

know change and innovate and make it flat you know flat in the sense that you know a thought structure is you know

where the CEO the chief executive officer officer is at the top and the line of communication Authority power

and the even responsibility uh will pass down down down down down to the last person at the bottom maybe the gates man

know and at times before the gatan can even reach the CEO if there's a security breach it will take time because the

gatan will go and meet the chief security officer the chief security officer we M another Superior another

Superior before it gets to the C o and at times this create a lot of know bottleneck delay in decision making or

red TI as the case may be so you may decide to use you know internet of things iot that is you know create

WhatsApp groups you know create you know some Clos group whereby we can have access directly uh to information from

the security making the structure flat or making it hybrid I mean combining both tall and flat structure when you

start doing that it is called organizational Innovation another set of innovation is marketing Innovation that

is this is finding ways to market products Services by using new distribution Channel don't forget that

in marketing we have what is called four piece of marketing though it has been extended in

other uh uh books so we have product that's the first pay price the second P place the third p and promotion which is

the fourth P product Price Place promotion so when you talk about the place the place is the channel of

distribution that is the wholesaler and the retailer who are the middle men between the producer and the consumer so

you may want to innovate that instead of you going through those wholesaler and retailer you can just make sure you go

directly to them or offer or align those channels together to bring better and good customer satisfaction to final

consumers so these are the types of Innovations uh that we have uh in business so let us now look at the

dimensions of Innovations Innovation can also be examined through its Dimension which provides a kind of framework to

understanding the scope and the impact of innovation in business don't forget that it is innovation that creates value

into business it is when you keep making things new Noel being entrepreneur in bringing Innovation that creat value

into business value is majorly created uh when you when you innovate and being Innovative means that you must

be thinking critically you must be capable of critical thinking and you must avoid all this bureaucratic

bottleneck in fact at times we need to create some group of smallart thinking employees who can be know giving you

Solutions uh that are Innovative as the case may be so what are the dimensions of

innovation we have uh incremental Innovation and radical Innovation so incremental Innovation is a small

continuous Improvement um in an existing product that is incremental okay and we have it in smartphone battery life of a

product and radical uh Innovation on the other hand is a major breakthrough that fundamentally change a

product or IND what is called uh

Shaner uh shanis I mean call it destructive Innovation destructive Innovation

Innovation that is radical that can completely change an industry for example H in the olden days I mean

people used to you know watch black black colored television uh in the old days you remember there's a there's a

phone a box phone that you dial and it come back you dial again know that's at times you lock by putting a pad lock on

but with the emergence of mobile phone those box phone disappeared completely because the smartphone and

mobile phone industry is a radical Innovation another type of innovation or

dimension of innovation rather is sustaining Innovation and disruptive innovation so so sustaining Innovation

is where you improve upon existing products in ways that align with existing existing customers expectations

and their Market needs so is sustaining Innovation while disruptive innovation is similar with radical Innovation that

is innovation that initially Target a niche market a niche market is like a segment in the market you may Target

only female you may Target only youth you may Target only students you may Target all other types of segmented

markets that are under served know but eventually displaced established Market leaders we have also open Innovation and

closed innovation no a closed Innovation is in an is is a dimension of innovation that is done internally within the

confin of the company R&D Department that is the research and development department and the strategy team of the

company that is these are Innovation done internally when staff or employees of

the organization brings something new it is a closed Innovation okay on the other hand when

Innovation is H done maybe in collaboration or by an external partner know when you Outsource know your

Innovation to people that are outside the company it is open innovation another dimension of innovation is what

is called technological and non-technological Innovation so from the name Technology Innovation these are

Innovation that leverage on new technology to develop products and improve processes so when you when you

leverage on new technology um to improve the process and the product that's is technological

innovation why non technological innovation these are innovation that are uh not Reliant or on new technology such

as changes in business model customer relationships organizational culture you know the kind of culture in the

organization all this are non technological uh organ Innovation then we have social

Innovation and yeah this Innovation aim at you know addressing Social Challenges improving societal wellbe you know for

example H micro Finance system uh Cooperative uh systems all these are part of social uh

Innovation another type of innovation is the design thinking and user Centric Innovation so a a design thinking and

user Centric Innovation is a process that emphasizes empathy ideation and prototyping and iterative testing to

create solutions that meet the needs of the end uh users so these are the dimensions of innovation that we need to

take note of the next thing we are going to look at is to look at the Innovation

ecosystem The Innovation ecosystem Echo e then system uh and an ecosystem is just the environment in

which a business operates both internal environment or those factors that influences uh the operations of a

business is the ecosystem so let us look at Innovation ecosystem because at times some some environments don't encourage

innovative ideas which is not too good you must encourage uh Innovative thinking innovative ideas new ways of

doing things even if you test those new ways and you experience drawbacks or failur

you should not you know let that make you not go for Innovation you keep trying until you get it so and

organization's ability to innovate is often influenced by its Innovation ecosystem which includes the internal

and the external environment that Foster creativity and invention you know in big organization

large organizations you know is difficult for innovation to really take place you hardly see Innovation coming

in big organiz except for big organizations that have a special unit because Innovation requires you to

think outside the box it it requires you to even think without a box it requires you to be able to uh bring something new

an idea ideation generation that can know bring a kind of novelty in the way people uh render value or create value

to customers and in that in that kind of environment you don't need a a an an autocratic uh person or somebody who is

always stickling to rules and regulations all the time uh for Innovation and creativity to fly you

need less of rules and less of Regulation to come with idea so what are the let's look at the

internal ecosystem of um Innovation so that number one is innovation culture no a culture that

encourages experimentation that let's let's experiment maybe it will work okay uh R

taking a culture that encourages risk taking you know let's take you know calculated risk you know reasonable risk

and also reward creativity that if you can be able to give us something new we are going to reward you with promotion

okay this is part of the internal ecosystem of innovation the second one is leadership and vision that is leaders

in organization or if you the CEO or you set up your business you must prioritize and drive Innovation within your

organization what we called closed Innovation earlier okay you must know as a leader also be

seen to be uh driving the vision uh to encourage and uh innovation in your organization so number three is R&D

investment research and development investment in this case you must be able to create an R R&D unit that is the

research and development unit and fund it and for them to continuously explore new ideas new technology

okay this is part of the internal ecosystem of uh Innovation the fourth one that is also very important is

employee engagement Employee Engagement that is involving employees at all levels whether they at the operational

level the Tactical level or the Strategic level every employees at all levels must be engaged in The Innovation

process that help tap into the diverse ideas and Insight that's the

internal ecosystem of innovation let's now look at the external ecosystem of innovation uh in that we have number one

industry collaboration that is you know the an industry is a collective of FS or similar F offering similar products or

attending to the same set of customers so for those other industry player you can find a way to partner them

partnership with other companies uh other universities research institutions can foster idea exchange and

co-innovation So Co Innovation is a type of innovation done uh by two or more institutions uh collaborating together

so that you find it in the external ecosystem the second one is customer invol involvement customer involvement

is engaging the customer early in the Innovation process uh to provide valuable insight into the needs and

their preferences into their needs and their preferences so it's important then we have the regulatory environment

government and Regulatory bodies can either enable or hinder Innovation through policies standards and

regulations so if government uh is bringing laws or rules laws that

are prohibiting creativity and Innovation know Innovation will not Thrive but if government is bringing

rules and regulation know even bringing tax uh break for those who are able to innovate then this will Foster

Innovation then last one there to is uh under external ecosystem is the funding and the Venture Capital um money and

access to Capital or external funding that can support the development and the scaling up of innovative ideas is very

very important for startups and growth uh companies so the next one we want to now look at uh

having look at the Innovation ecosystem is to look at the key enablers uh of innovation in business

that is what are those things that must be present in your business that can actually assist you to be an Innovative

F don't forget whatever C you are studying there is always an entrepreneurship and innovative

aspect of it everything has a new way uh of doing it it's just for you to sit down and be able to get the idea for so

what are these key and blast things that can assist that can influence the success of innovation in business number

one is leadership support leadership support that whether is the CEO or the boss in the company or

in the F must be able to support uh Innovation number two two is talent and skills that is you must hire and nurture

Talent with the skills required for creativity and execution of new ideas so you must be able to sport those who have

this skills who have this Talent okay so that they can work with you and you can be able to tap into their skills number

three is technology and tools that is you must in invest in uh Cutting Edge technology and two that can be pivot uh

to staying in front of innovation you must be technology serving in the sense that you look for

what are the new technology being used to deliver the product or service in your

industry and number four is agility and adaptability that is that is the organization's ability to Pivot quickly

that is to change and adjust quickly to response to Market changes emerging Technologies customer

demands uh because you see that's the point I make earlier that it's easier for small fans small business to adapt

to changes than for large company because the large companies will go through a lot of process memo and small

companies it's just like comparing a big ship okay and a small boat a big ship like the Titanic you know if a big ship

like the Titanic is to move move and turn 360° it will take a longer time than a small Keno a small Keno will just

turn within a very few minutes so it is important to understand that Innovation is better done in small groups of teams

and Company even if you have a very big company you must set up a unit maybe a subunit of your R&D Department research

and development department to be doing the Innovation thinking and ideation and creativity for you so agility

and adaptability is very important the next one which is number five uh in terms of

the key enablers of innovation is cultural experimentation you must be able to

encourage experimentation and have tolerance for failure okay so that you can foster an environment that drives

new idea so that is one of the important thing that drives and enable uh innovation in a business we now look at

the challenges to Innovations what are the challenges to Innovation number one challenge is

resistance to change people employers managers they always fearful of know new

failure especially know when there is this disruption of an established process people will resist change okay

that of the challenge to Innovation number two is resources or resource constraints no you can you can have good

and Brilliant ideas fantastic ideas but if you know you are constrainted by fund for example know it may stifle know the

talent that that you have number three challenge is shortterm focus most companies focus on shortterm results are

not prioritizing long-term uh result of uh investment in Innovation it's also a very big barrier then we have what is

called Market uncertainty because predicting Market acceptance of radical Innovation how are you sure that okay if

we create something new or we add something something um know creative to an existing product we we the public or

the customer accept it that is why we said earlier that you must involve customers uh in the early beginning of

an innovation uh process so by and large all these are the uh Dimensions uh and the concept and challenges and the

enablers of uh Innovation so the next one that is very important that we should look at is the concept of change

and Innovation change and Innovation know change and Innovation are very

synonymous but they are different okay so change and Innovation are closely related Concept in business World okay

uh though they are used uh differently too so let us look at what is change what is a change okay so a

change refers to the process of transitioning from one state or condition to another so when now use it

in business a change can occur in for example strategy so if a strategy is not working use another strategy okay A

Change can occur in process if a process is giving us issues we change to another process then the change can also occur

in structure know the structure if it's too know slow the structure is too tight the structure does not encourage

communication free flow of communication then we can change the structure from tall per to flat or to Matrix or to

hybrid uh there can also be a change in technology if you have been using a particular technology and it's not

delivering I mean recently you getar the banks uh upgrading their uh technology platforms okay which has resulted in

some of some disruptions okay so if a technology is not working well for you in terms of maybe for example the

security is being breached by internet fra Stars so you have to to upgrade and change the technology even in culture if

there's a culture in terms of the ways the values in the organization that is slowing you back you have to change

those values okay so change is often driven by the need to solve problems okay and address inefficiency and be

able to also adapt to external pressure that is change okay so we can have organizational

restructuring you want to downside the right size is change or process re-engineering you know if the process

of making your product is becoming expensive or wasteful you change or you can adopt new

technology adoption of new technology or you alter or you change your marketing strategy maybe in terms of price product

place or promotion that is change so Innovation on the other hand let's now take Innovation now Innovation is the

process of creating and implementing new ideas okay new products new Services New methods that add

value by adding value we mean that you you by adding value we mean that customers are willing to pay extra okay

for as premium for the additional added value that you have you have done

so if customers are not willing to pay for the extra you know extra Innovation you have done that means it's not adding

value that means it is not Innovation so why change may involve incremental Improvement or adjustment Innovation

often implies introducing something new and uh transformative okay something new and

transformative is innovation so change can happen without Innovation so when you commercialize change it becomes

Innovation what I mean by commercializing is that when customer starts paying for that change then it

becomes Innovation if customers are not paying for that change it remains a change okay it remains a change what you

can call an invention so there's a difference between invention and Innovation okay A

change that is not commercialized is invention but a change that is commercialized is inov

ation and we have several relationships between change and Innovation Innovation often also drives change why change can

serve as a catalyst or Precor for Innovation so we can say that number one Innovation is a driver of change okay we

can also say that uh change is a is a catalyst for our Innovation you can remember that when covid-19 pandemic was

around you know this led to wide a lot of change people were working remotely we working from home

technology uh like online meeting apps Zoom uh Google meet uh teams know they become popular because we are we are now

used to Virtual uh engagement now virtual customer engagement just like you are doing now currently know

watching me uh virtually okay uh that is the relationship we can have between change and uh Innovation so

let's look at the types of change driven by Innovation know change this that are change that are driven by Innovation

number one uh is technological change so technological change is the adoption of new technology that alter

how businesses operate how they interact with customers and how they manage uh the FM so technological

innovation often requires a major shift in infrastructure process employee skill set so a very good example of that is

the coming of artificial intelligence AI that we have know is is and a lot of automation going on uh in the business

World which is which has driven change in the industry like manufacturing okay like Health Care like

customer service where machines machines and robots are fast taking over repetitive task okay

any task or any uh profession that is always repetitive you can see that AI artian

intelligence is coming to take a lot of those uh task after technology change technological change we have processed

change so process change is innovation in processes that leads that lead to more efficient or effective ways of

doing things so this could be uh the involvement of automation or

re-engineering workflows or introducing new methodology like a lan or agile in uh project management

these are models know that has been introduced in the process of delivering uh project examp for example want to

build fly flyover Bridge you want to construct maybe Health Centers to construct even a

university hostels any building construction even organizing a wedding party birthday

parties know using the lane technology or a technology will be able to tell you those things you have to do from

beginning to the end of of the project so uh we have even using robotic automation you find it in uh process

change the third one is cultural change okay Innovation can also Drive cultural change within an

organization know as companies adopt new business models Technologies strategies they may need to

shift their organizational culture to be more flexible okay open to risk taking or focus on creativity and collaboration

so the culture must uh encourage these things to be uh able to measure up in the current

business world so for example startups know startups are new businesses that are just starting from scratch okay

majorly in health sector and Tech sector and even engineering sector uh often have a culture of Rapid Innovation and

risk taking and constant iteration in repetitive work which may require larger more traditional companies to shift

their cultures towards agility and adaptability another set of uh change driven Innovation is uh number four

structural uh change I mean which has to do with changes in the organizational structure to facilitate more

collaboration among various departments and units within the organization within your business like cross functional

teamwork know you get somebody from one unit another person another unit they are in a committee and they work

together know decentralized decision making instead of central centralizing all decision at the top okay you

decentralize and bring some decision making uh to the operational and the TA the Tactical and the

level of management so as business innovate they often need to restructure to support new business models and

processes so um having said this what is very important we discuss now is uh uh resistance to change and uh Innovation

so why do people resist change no one of those adage says that the only constant thing in life is

change change is the only it's not is one of the constant thing in life is change okay so why do people resist

change even a person like me too I everybody de change know the the president of this country will de change

everybody re change because people love their comfort zone they love the status quo know and an established process

should be like know let's protect it but know if you want to question the status quo is is going to uh come with a lot of

resistance know for example in the days of typewriter okay people who are using typewriter and they used to it you now

tell them that no let us now using computer even though the computer will be beneficial today they will

resist uh the computer and that is why I think it is very important you carry them along you let them go for

training they go for training and so that you assure them that will not lose their job as a result of any change or

innovation in the business process so uh despite the critical uh importance of change and innovation in organization

most organization if not all often face resistance to change due to several factors which may include number one

fear of the unknown fear of the unknown okay so people love job security and uh they

always anxious when something new is coming that they are not starting off that may make them or render them

redundant okay number two is intial uh and comfort initial is a state of motionless as when you are not moving

you just like to sit down just sit down and be enjoying your comfort your comfort zone when you're not active okay

you are in a state of of inertial so established processes and routines may become entrenched in the organization uh

such that you know it will create resistance to change that will disrupt the status quo so that's number two

initial uh and um comfort your comfort zone number three is lack of resources okay people resist change and

Innovation because there's lack of resources because Innovation at times requires time it requires money it

requires energy it requires Talent an organization May resist change if they feel they lack all

these uh resources so they will be able to support Innovation number four is um cultural barriers know some

organizations know may have cultures that discourage discourages risk taking or if

an organization for example prioritize short-term uh gains over long-term Innovation you know that is a very

uh bad culture for uh Innovation okay so we have mentioned the barriers now so how do we overcome it I

mean we should be able to discuss how to overcome our resistance to change and Innovation uh number one is to

communicate the vision clearly so you call your employees and you talk to them in clear terms you you reassure

them that nobody's going to lose his job or a job uh guarantee them their job security and uh and communicate

effectively with them the vision uh that it's going to benefit them in the long R number two involve employees in

Innovation process so at times you may even want to ask your employees to suggest and bring and you reward them if

they do so you know new ways of doing things that will I mean bring their job into efficiency more efficiency

number three is to provide necessary training and resources so you send them for training sections development

sessions and then provide them the with the resources they will need uh to be able to IDE the new

innovation number four is to foster a culture that rewards our experimentation and tolerate F so if somebody brings you

an idea and you try it and it fails in as much as they bring of the the person that brings the idea is after value for

the organization uh that you fail there does not mean you should punish the employee you should in fact even reward

such employee for coming with that idea so that when another idea comes you'll be able to come forth uh with

it so the next thing we look at is uh change management process Innovation uh there are key steps to like managing

change okay number one you should establish a sense of urgency number two build a

vision and strategy number three Engage The stakeholders by stakeholders we mean

those whose your activities will affect directly indirectly positively or negatively so you're talking about your

customers your employees the government the tax people uh the media the legal people people in the leg legal

you know the community in which your business is situated uh all these are the Press yes

the media all these are stakeholders to your to your business your your shareholders they are part of your

stakeholders okay so stakeholders engagement you if you want your Innovation to be successful you must

engage them then number four is training and education we have mentioned it earlier you must keep

training uh your employees and educating them and uh you must measure excuse me you must measure

progress okay continuous assessment of how change is being adopted must be done so having said that uh importantly is to

see how to balance Innovation with stability now we have said earlier some people like stability status quo and we

are saying Innovation is important so how do you balance stability and uh Innovation okay so what

we are trying to say here is that while Innovation drives growth and competitive Advantage too much change can lead to

instability all right a very good example is the Nigerian economy you know we are we've removed subsidy we are

floating the we are doing a lot of change you know too much change at the same time

will create instability and Chaos know not even in the country even also within an organization within a family so you

must be able to Pace Innovation or Pace change it has to be gradual okay so effective leaders must balance the need

for Innovation with the need for stability and consistency as effective leaders so doing that means that number

one you must Pace change pacing change that is Implement Innovation and change in faces you know in faces rather than

all at once okay so you must be able to ensure that the organization manage the transition more effectively and reduce

uh disruption if you pay change if you do it if you stagger it one by by one if you do your change at a grad gradual

Pace know a very good example is the subsidy removal so just remove at once okay it should have been done

incrementally and gradually uh for it to be successful the second thing there is sustaining core operations okay those

core product core services in your organization you should sustain them uh those product that give you competitive

advantage for the Innovation you must maintain excellence in them then the third one is managing risk so Innovation

particularly disruptive innovation come with risk so what of if the customers will not take it from you is a risk

after spending so much money to make a new product a new service and the customer now say we are not interested

in your product so you must be able to manage risk have strategies uh to ensure that you don't have customer backlash

technological or competitive responses from your rival if you do this you be able to balance

stability and uh Innovation uh very close to that is to look at uh organizational agility we've been

talking about adaptability and Agility you know so let's look at organizational agility this time around

that is organizational agility the the the ability to to withstand changes in the environment is uh the agility uh we

are saying here that is the key to successful change and Innovation organizational agility okay

so uh organizational agility are better uh positioned to navigate the constant cycle of change and Innovation

so what is organizational agility organizational agility refers to the ability to

rapidly adapt to changes in the external environment and capitalize on emerging opportunities as a result of what those

changes in the environment so we we now have a concept know called

agile organization so agile organization are organizations that have organizational agility that is to know

rapidly adapt and adjust to changes in the environment and able to take opportunities from the environment so we

have a lot of changes in the environment political change economic change social change technological change uh we have

um ecological change you know from your pel de okay demographic change ecological change legal change so the

environment keep changing the political thing keep changing you know elections is coming up in some states and it will

affect your business know if you're in the business of making uh printing printing press for example now election

period are periods where you make a lot of money because politicians will come and do posters even if you are in radio

station I mean television station media stations they will come over and do advertisement for their political

parties no election come in Cycles so there are always changes in the environment and you must have

organizational agility to be able to adapt and adjust to those things in the environment so you have to become an

agile F or an agile company or agile organization and in doing that must have the F number one Embrace continuous

learning okay you can't know everything an agile organization must Embrace continuous learning uh culture where

employees you know experiment and continuously improve uh in what they have known before uh secondly apart from

that is to have decentralized decision making decentralized decision making then thirdly is Foster collaboration

okay you should foster collaboration then you should stay customer focused you know your C the customer is the king

it is ensuring that you appe peace or you satisfy the customer that is your

goal so you have to study your customers what do they like how do they like it where do they like it when do they like

it you know you must be you must take customer focused you must make your employees also be customer focused okay

that will make you an agile organization that can adapt so in in all what we are saying in essence is that uh change and

Innovation are interconnected process and they are essential for a business growth and the survival of businesses

and that Innovation spark change ping pushing the organization to evolve why change itself can set the stage for new

innovation so when you successfully navigate uh these changes and Innovation by carefully planning uh you can be able

to uh effectively manage change with good culture in your organization and become

somebody a company that we can call or we can tell agile that is you have organizational uh agility so business

you also try to balance uh both Innovation and U and stability so the uh other thing we look

at now is to look at knowledge and innovation in business so what is knowledge and

innovation in business so just like change is related to Innovation knowledge is also

related to Innovation so let's look at knowledge and innovation in business so they also deeply the two terms or

concepts are also related that is knowledge and Innovation okay because knowledge serves

as the foundation for Innovation knowledge because when you know new things it become the foundation

for Innovation while Innovation is often the process of transforming the knowledge into new products new service

new process new business model to create value so when it creates value it is innovation so let's define knowledge and

also let's Define innovation in that context so knowledge refers to the understanding

skills insights and expertise that individuals or organizations process that is

knowledge skills Insight expertise the understanding that is within the organization as a whole and embedded in

each individual in organization it is knowledge okay so in business knowledge is both

explicit and taxit okay knowledge in business could be explicit and taxit explicit means

codified information like data documents and procedures okay

you know then tax it means personal experiences Insight intution by individuals because you see as you as

you grow in a particular business over time you acquire experiences you acquire knowledge those

kind of experiences that you have acquired over time are tax it knowledge whereby explicit knowledge are

those that are already in the organiz in the organization that has been codified written down in document documented and

procedures that if you want to do this this is what you do if you want to have this this is what you should do those

ones are explicit but taxes are the one that you have from your experience so explicit

knowledge can be easily communicated it can be easily stored it can be easily transferred for example the company's

report the annual uh report of comp that has the profit and loss income statement

statement of Affairs uh the statement fiveyear Financial summary uh all those kind of things can

be uh transmitted you know uh the codified communicated and transferred you know but taxes knowledge are add to

very hard to formalize very hard to formalize tax knowledge and it's of tax knowledge on

the other hand is often gained through experience know your personal know how your problem solving skills and your

customer uh relationship you know so Innovation uh now is the process of using

knowledge when you now apply that knowledge whether tax it or explicit to create new

ideas processes products or services that provide value to an

organization know I explained earlier it's it's only creating value to the organization if the customers are

willing to pay for it okay so to create value for the organization and its stakeholders that is

innovation that is innovation so knowledge particularly when shared and applied drives Innovation

okay and the relationship between knowledge and Innovation is also uh very close

because you see knowledge is a source of innovation okay that's one of the

relationship between the two then also Innovation is a generator of knowledge okay uh

innovator uh will generate knowledge so let's look at the types of knowledge critical for Innovation number one

technical knowledge that is the technical KN how uh of how to develop product uh number two is organizational

knowledge number three is market knowledge uh number four is social knowledge number five is relational

relational knowledge okay so again let me take it again as we rank up this class number one is technical knowledge

number two is market knowledge number three is is organizational knowledge number four is social knowledge and

number five is relational knowledge uh social and relational knowledge has to do with you know how you network the

knowledge of networking and connecting with others uh external Partners such as your suppliers which who are also your

stakeholders customers institutions all this kind of knowledge are important in innovation

so uh let's quickly lastly look at Knowledge Management so Knowledge Management can be defined as a

systematic process of creating sharing and applying knowledge uh within an organization in order to enhance

performance and we have ke concept of Knowledge Management such as knowledge creation okay knowledge

sharing knowledge storage and access knowledge storage and knowledge assess we have knowledge

application uh these are the uh few of the key components of uh Knowledge Management that we have so what is the

role of learning in uh Innovation so learning is very critical in the process of turning knowledge into Innovation you

have to keep learning go for courses referential courses and for example we have what is called continuous learning

uh can help us uh with the learning process we have learning from failures when you try something it

doesn't work you learn from it okay all these are the ways we can uh encourage learning uh in our organization then we

have knowledge uh the one we also look at here uh to round up is uh knowledge based Innovation models so we have open

Innovation okay we have crowd sourcing uh as another model uh we have knowledge intensive Business Service which is kibs

okay and many others as part of uh the knowledge based Innovation models that we have uh open Innovation crowd

sourcing and we have the kib which is knowledge intensive business services so what are the challenges in leveraging

knowledge for Innovation you know there are a lot of challenges uh which could be number one silos and knowledge

fragmentation uh tax knowledge transfer uh also be a problem uh challenge we have knowledge obsolet

sense when the knowledge you have is no longer useful then we have H some cultural

barriers okay the next one is to look at building a knowledge driven Innovative uh culture you want to build knowledge

driven Innovation culture uh one of those you can do is to encourage collaboration don't let people do and

finish a task on their own let them collaborate then you invest number two you invest in research and development

then you leverage on external knowledge you can also leverage on AI Aral intelligence you can also promote

lifelong learning as a way to be able to build knowledge driven Innovation culture so these are the things we need

to understand uh in knowledge the concept of innovation and the dimension of innovation so in this class uh we

have looked at Innovation excuse me in this class we have looked at Innovation uh its types

its Dimension we have looked at uh the types of innovation dimensions of innovation we've also examined the uh

the relationship relationship between uh change and Innovation we have looked at uh change based Innovation uh

resistance to change and how we can ensure that uh we solve the problem of resistance to change we have also look

at knowledge and Innovation and look at uh also examined the uh knowledge based Innovation that that we have uh thank

you very much for listening uh to this ENT 211 class on entrepreneurship and Innovation uh we have looked at

Innovation the concept of innovation and the dimension of innovation and don't also forget that we look also at

organizational agility as part of those key items that organization need to do to adapt

to uh changes uh in the external environment and be able to uh take advantage of the opportunities uh thank

you much it it's been a very uh fantastic session with you uh till I meet you next time once again my name is

do from the Department of Business Administration thank you and God bless [Music]