With the development of industrial progress, the word “innovation” has become a very popular term. In everyday life, innovation has become a symbol of progress and moving forward. They captured almost every area of our lives. Innovative activity in education allows you to get more professional specialists, in medicine - lower mortality, in defense - better protection.
Definition
A similar type of activity can be defined as the introduction of a new into a specific structure of any sphere of human activity. Innovations in the economic sense denote activities that are aimed at improving products and production technologies, as well as searching for new market sectors and expanding the product line.
Among the points of organization of innovation, three main ones can be distinguished: the search for weaknesses of the company, the implementation of the process, and the organization of introducing innovations themselves into production.
Without innovations, the production sphere cannot exist, due to the fact that any production wears out, and technology becomes obsolete. Each large enterprise has its own scientific complex, which allows the company to carry out the development of innovative activities. This is necessary in order to avoid inhibition of the technical process.
In addition to its production, it is necessary to pay attention to the market sector and monitor competitors. It is also necessary to timely analyze your production process at the time of possible improvements and new forms of innovation. If a company is presented on the market with a meager assortment or outdated product that has not been in demand for a long time, then it will immediately lose competition.
The need for innovation may appear due to various factors, it may be some success of the company, for example, winning a tender auction or expanding a branch network. An important impetus to innovation occurs when a serious change in the structure of the market, such as the emergence of a powerful competitor or an increase in demand for other goods.
Types of innovation
Innovation is ubiquitous in all activities. They are given special attention not only in the business environment, but also in education, housing and communal services, and even in the defense sector. This is due to the large state support for innovation. It is worth considering that among the forms of activity, many different types can be distinguished, but scientists distinguish only three main ones.
Sequential
Based on the name, all activities are carried out in stages in all divisions. After conducting innovative research and introducing them into production, the results are transferred to senior management, which evaluates and decides on the feasibility of introducing the technology. Among the advantages of such a scheme, one can distinguish the repeatability of the analysis of new products at each stage of implementation, risk reduction and simplification of control.
Among the disadvantages of this method, one can single out the complexity of correcting the shortcomings of innovations, when development has already gone to the next stage. This implies an increase in the cost of correcting deficiencies and, as a consequence, an increase in the complexity of the process and an increase in the timing of its implementation.
Parallel
With this scheme, innovative activity is carried out in all departments at once, which allows timely adjustment of the process at all its stages. Among the minuses, one can note the complexity of control over the process, since it takes place simultaneously in several departments, therefore this scheme is most often used in small and medium enterprises.
Integral
The previous two implementation schemes imply a complete reorientation of all departments to innovative activities. Moreover, the current production and the economy of the enterprise as a whole are seriously affected. In order to avoid losses, many enterprises create, on the basis of units, the so-called focus groups that are engaged in the implementation of innovations, while the main unit is engaged in its usual business. Such a system is called a matrix system.
Many large companies create on their basis special research groups led by the best specialists, who are often invited from outside. Such a system is recognized as the best in the field of innovation, since it reduces the time for implementation, quality improvement, maintaining current production, simplifying control. This system is suitable for large companies in which the introduction of innovation is becoming an ongoing task and innovation activity is ongoing.
Venture capital funds
A special category is the creation of venture capital enterprises. This is one of the most popular forms of financing innovation in American corporations. They create on their basis special enterprises, the main purpose of which is research activities for the financing organization.
Typically, such firms are organized for risky innovations, which have a high payback period, sometimes up to 10 years. The first venture capital organizations began to be created in the USA in the 70s and reached a peak of popularity in the 90s. They allow you to finance almost all areas of innovation.
Very often, venture funds are given almost unlimited freedom and financing, since the parent company has exclusive rights to any new product, and often the one who pays great attention to innovations wins in the market.
Development trends
Currently, among the main points in the development of innovation can be identified:
- Reduction of regulatory bodies that slow down the functioning of innovative units.
- Creation of additional management structures and units that are aimed at strategic innovation.
- The combination of research and development units with marketing and production units in multifunctional, versatile structures that are aimed at testing and implementing innovations.
- Establishment of the target course and motivation system focused on obtaining the final product in the shortest possible time.
Process
- Study. Any introduction of a new product begins with the stage of market research, the needs and opportunities for improving the product as a whole. This stage is carried out in special research centers or research groups within the enterprise. Depending on this, sponsorship comes from the state budget or the budget of the funding organization. Also at this stage there is a theoretical testing of a new product for survivability in market conditions.
- Development. At this stage, the creation of the product itself is carried out directly, and experimental design work is being carried out that can reduce the risk of investing in research work, which is a high-risk asset.
- Implementation. At this stage, the most interesting moment for investors occurs, namely, the commercialization of the project. The goal of any innovative activity at the enterprise is to further introduce these innovations into production, capture a new market segment and, as a result, increase profits. This stage is the most costly, as it requires retraining of staff, a powerful advertising company to promote a new product, and sometimes re-equipment of the entire production. Often, the costs of the last stage exceed the costs of the first steps by tens of times.
It is worth considering that research activities affect not only the manufacturing sector. Very often, research is carried out in the marketing and economic field. Very often, consulting firms that have the necessary experience and knowledge are attracted to innovate in these areas.
Innovation analysis
A very important element is the innovation management system - this is a management system for all activities, units that are involved in this and are connected by economic relations arising in the process of any action. This type of management is part of functional management and an integral part of the whole process, without which the functionality of the activity would be greatly reduced. It is here that they analyze the ongoing changes, their quality and necessity. Analysis of the overall activity is carried out by studying the performance of the unit that is engaged in innovation, the performance of a new product and the effect of innovation.
Performance indicators
The indicators of units usually include the volume of scientific activity, the volume of projects developed as part of this activity. The indicators of a new product include indicators of its competitiveness, volumes of new products, the number of new products, as well as economic indicators such as profit and profitability.
The indicators of the effect of innovation include:
- Financial effect. This indicator is calculated as the difference between the profitability of a new product and the cost of its invention.
- Budget indicator. Reflects the economic consequences for the budget from which the financing of innovative activities was carried out.
- General economic indicators - calculate such indicators as revenue from product sales, revenue from the sale of licenses, various loans and borrowings for carrying out activities.
Economic analysis
In connection with all these indicators, it becomes necessary to conduct an economic analysis of innovative activity at the enterprise, which occurs in the following sequence:
- The first step is to assess the innovative potential of the enterprise itself, its scientific and technical capabilities and on-farm reserves. An analysis of investments in innovative activity is also carried out, indicators of financial leverage are investigated.
- The second step is to evaluate the ratio of costs to the value of new innovations and projects under development. Also, this ratio is compared between the reporting and the past period, to identify dynamics. After this step, additional reserves can be identified to improve the quality of innovation.
- At the third stage, an analysis of the final product is carried out, conclusions are drawn for the reporting period, and plans for the next year are adjusted.