The modern development of economics and science presupposes the continuity and cyclical nature of the innovation process. Its detailed design allows in the future to make the optimal adjustment of the output and analyze the compliance of the innovation with consumer expectations. The innovation cycle includes several large phases, stages and their stages, which are interconnected. Building a strategy according to which production moves from innovation to product quality, and then to costs, provides significant competitive advantages.
Definition
An innovation cycle is understood as a model that describes the process of introducing an innovation from the initial stage (mastering of information) to the final stage - consumption of the finished innovative product. In modern literature there is no universally accepted concept for this process. There are 2 main approaches to this problem: general economic (description of the institutional structure for introducing future technologies) and within the framework of the development of a separate organization.
In innovation management, several types of models are used:
- Linear It is one of the first (proposed in the middle of the 20th century) and is a linear sequence that describes a step-by-step innovative process from formulating an idea to selling products. Its disadvantages are the lack of consideration of market demand for innovations, and the focus mainly on basic research, which does not correspond to the current stage of development of science and technology.
- Non-linear. According to this model, there is a constant interaction between all stages and institutions: the exchange of information flows, investments, human and material resources. In modern organizations, there is no determinism of innovation, the functions of various institutions often overlap and complement each other.
- Grocery. It is based on the product life cycle and is a description of a number of works, the final result of which is embodied in the form of a new or improved product introduced on the market.
- Process. Among the subspecies distinguish organizational, managerial and technological models of the innovation cycle.
Using the above models allows analysis, planning systematic work on the release of innovations and management of innovative activities of enterprises. In a narrower sense, the life cycle of an innovation is the period of time during which it brings any benefit to the manufacturer or seller.
Phases of the innovation cycle
In general, there are 5 major phases of the innovation life cycle:
- The study of the basic laws (basic research).
- Search for a practical solution to problems (applied research).
- Design process.
- Mastering and production.
- Consumption.
Detailed features of the structure of the innovation cycle depend on the type of innovation. This process may be accompanied by various types of activities and financial components.
Stages
The main stages of the product innovation cycle include the following:
- Development (marketing research, R&D, testing, design, technological and organizational preparation of production and other stages). This period is characterized by an active investment of capital.
- Start of sales. At this stage, the product begins to make a profit (benefit). The most important factors are advertising policy, inflation rate.
- Expansion of sales areas. Sales growth until market saturation.
- Stabilization of sales. Demand in the market is still active, but its decline is already planned.
- Decrease in sales. With the expansion of the assortment and reorientation of the market, the last 2 stages may be absent.
To describe an innovative operation (technology), 4 stages are distinguished:
- development;
- implementation;
- market stabilization;
- decrease in sales (its natural decline).
The duration and number of stages, their influence on the development of the cycle is determined by the features of a particular innovation.
Stages
At each stage, several stages can be distinguished that characterize a certain type of work being carried out. For the product model, the stages of the innovation cycle are:
- Development work, marketing research (forecast of demand and commercial success). Investments in the latest types of work can be commensurate with those for research and technical development, since the final result of the activity depends on this.
- Pilot production (manufacturing a sample of a new solution).
- If necessary, refinement, correction of initial ideas based on the results of the previous stage.
- Mass production of new products.
- Registration of a trademark.
The following similar stages are distinguished for the organizational, managerial and technological model:
- development of management decisions (OCD for technology);
- approbation / trial operation;
- implementation in the organizational / general technological process;
- execution of documentation, security patents, innovation licenses.
The final stage for all models is the implementation of innovation and its improvement in the process of use by consumers.
Basic research
Basic research is the most important in managing the technology of the future. Features of their implementation are:
- the end result and resource costs for its receipt are not known in advance;
- search research at the initial stage is carried out without their correlation with practical application;
- individual character of work;
- discovery of general laws or categories, substantiation of theories and principles;
- presentation of results in scientific publications and reports, production of prototypes.
Fundamental and applied research may not be carried out if the available amount of knowledge allows the formation of innovative ideas.
Applied Surveys
Applied research is based on fundamental. The selection of results that may be suitable for practical implementation and to derive certain benefits is carried out. A technical and economic rationale for the use of new products and technologies is being carried out. The result of activities at this stage may be:
- technological regulations;
- standards and methodologies, standard standards;
- outline designs;
- preliminary plans, including drawings, calculations, layouts;
- technical specifications, requirements and other scientific and technical recommendations.
At this stage, as part of the innovation cycle, laboratory and pilot production tests are carried out that determine long-term development trends, and generalization and evaluation of scientific research are carried out.
Design
Based on the results obtained, in the process of applied research, the production of documentation (technical and economic calculations, diagrams, explanatory notes, estimates and estimates, schedules and others) for the production of new products or technologies begins. Developments at this stage are distinguished by their types: design, technological, organizational, design and survey, manufacturing of the first samples of products for testing.
These works are preparatory before the mass launch into production. This stage is often combined with the previous one in the framework of R&D and it can be defined as a process whose main goal is to realize the expectations and requirements of consumers in innovative products. Here, such parameters of the innovation cycle as:
- product quality and competitiveness;
- terms of designing, manufacturing and entering the market;
- the ability to modify the product;
- project budget.
Production
At this stage, 2 steps can be distinguished:
- Production of an experimental batch or single copies. (industrial designs), start-up (commissioning) of technical facilities.
- Economic development of production. At this stage, the full design capacity of manufacturing (material and energy intensity, labor productivity, cost, return on assets) and the use of innovation are achieved.
This step may include the following activities:
- development of a technological project;
- approval of technical conditions, factory standards;
- production of serial equipment and tools;
- retraining or advanced training of personnel for the introduction of innovations;
- construction and installation works;
- change in pay or organization structure.
Control
Management of innovation cycles is carried out in two main directions:
- at the state level;
- at the micro level within the organization.
State regulation is carried out using the following tools:
- Institutions whose activities are related to innovation processes (ministries of economic development, finance, education, the Center for Strategic Research, organizations for the protection of intellectual property rights and others).
- Legislation, federal and industry regulations.
- Educational institutions and research organizations funded from the federal budget.
- Infrastructure facilities (technoparks and technopolises, information technology centers, science cities, business incubators, and others).
- Market institutions of commercialization (venture capital funds and companies, leasing and insurance companies).
Management at the organization level is carried out at all stages of the life cycle by innovation and consists of such elements as:
- forecasting, determining the most promising development paths and needs for innovations;
- planning of stages and their provision with resources;
- analysis of existing problems and the effectiveness of innovation;
- development of alternative technical solutions and selection of the best of them;
- development of management decisions;
- control of results.