Total Innovation Management

A New Paradigm in
Innovation Management

Zaipul Anwar Bin Zainudin
Lecturer in Institute of Product Design &
Manufacturing, (IPROM) Universiti Kuala Lumpur
Tel: 03-27154715, 019-3262427
Email: zaipul@gmail.com
Website: http://www.zaipul.com
Blog: http://zaipul.com/category/blogs
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You may download softcopies of all my materials in this session from this
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URL, go to Download link at my website Zaipul.com


About the speaker
1 - 2
OBJECTIVES
To introduce a new management
paradigm: Total Innovation
Management (TIM).
To increase the awareness about
the importance of creativity and
innovation in organisation.
1 - 3
What is TIM?
The term Total Innovation Management
(TIM) is define as the innovation
synergy among technology,
organization and culture and oriented
to building up innovation competence
for an organisation.

Chen., Gang., Zhangshu., Zheng., Jin., Jingjiang., Liu., Qingrui., Wang., Xie., Xu., & Yong. (2007). Total
Innovation Management: a novel paradigm of innovation management in the 21st century. The
J ournal of Technology Transfer, 32(1-2), 9-25.

What are the other Total
available?
TQM Total Quality Management

TPM Total Productive Maintenance

TCS Total ? ?

TNAW Total ? ?

TIM Total Innovation Management

Creativity is the generation of
new ideas

Innovation is the process of
transformation of creative
ideas into desired outputs.

What is Creativity & Innovation?
Who started to develop TIM?
This paradigm was developed
and popularized by Institute
of Management Science &
Strategy of Zhejiang
University and a group of
scholars in American
advisory company of
Stanford University (SDG).

1 - 6
From Where did the ideas
to develop TIM came from?
The ideas to develop TIM was
inspired by the thoughts of
system and biology, the
complex and changeable
internet environment, and the
observations of some leading
Chinese firms and famous
transnational companies
innovation practices, like Haier,
Legend, Baosteel, 3M and HP.
1 - 7
1 - 8
These videos
showcase some of the
products from these
companies.
Before we begin lets look at some of the
videos from these innovative companies
Why we need TIM?
More and more enterprises find that innovation is
becoming the critical source and driver for
enterprises survival and development.

The paradigm of TIM provides a basis for an
upgraded, a more unified and better view of
innovation management.

Its not enough to focus on technological context of
innovation, some non-technological factors, such as
the organizational structure, cultural characteristics,
market, innovation strategy, and management style
may also have an important influence on innovation
performance.
1 - 9
EVOLUTION of INNOVATION
MANAGEMENT
Practice of innovation management has gone
through two stages:

1. Technology & Innovation Centered Management:
At this stage, the center task of enterprises innovation
management is to pay too much attention to product
innovation or process innovation separately
It concentrates on products innovation first, then pays
more attention to process innovation, and finally reaches
the steady balance between product innovation and
process innovation
What's more, the innovation activities only depend on the
R&D function and R&D people, other sources of
innovation are generally ignored
1 - 10
EVOLUTION of INNOVATION
MANAGEMENT
Practice of innovation management has gone
through two stages:

2. Portfolio innovation management.
At present, it is the dominant paradigm for innovation
management both home and abroad.
It concentrates on products innovation first, then pays
more attention to process innovation, and finally reaches
the steady balance between product innovation and
process innovation
1 - 11
1 - 12
Different types of innovation
Major
Minor
Enhances
Destroys
Incremental
Innovation
Strategic
Innovation
Major
Innovation
Radical
Innovation
Costas Markides, Paul A. Geroski, Racing to be 2nd: Conquering the Industries of the future,
Business Strategy Review, Vol 15, Issue 4, Winter 2004, p25-31, Blackwell Publishing Ltd

Crafting & Executing Strategy, Thompson, Strickland & Gamble, McGraw Hill

Effect of
innovations
on
consumer
habits and
behaviors
Effect of innovations on established firms
competences and complimentary assets
Forces of Innovation:
Market Pull - R&D Push
Market pull
looking for the best way of satisfying a newly emerging
customer demand
improvement of the existing products, extension of the
existing offer or decrease of price
impulses for continuous, incremental innovations or for
process innovations

Research and development push
looking for commercial use of new impulses resulting
from the R&D results
generating of new markets for conceptually different
products
TIM FRAMEWORK &
CHARATERISTICS
There are three layers on total innovation:

1) Involves innovation in all functional area,
including organizational, cultural, institutional,
process, etc.

2) It covers the whole space-time dimension and
continuous innovation in every department by,
everybody (all as innovators), at anytime to
innovate, including the whole value chain
innovation.

3) The innovation synergy among innovative
elements.
TIM FRAMEWORK &
CHARATERISTICS
The remarkable difference
between the traditional
management of innovation
and total innovation is that it
breaks through the past
framework of innovation
confined only in R&D
department.

TIM FRAMEWORK &
CHARATERISTICS
TIM promotes tag lines such as:
NOW EVERYONE CAN INNOVATE

EVERYONE IS INNOVATOR

INNOVATE BY EVERYONE AT
EVERYWHERE, ON EVERYTHING
AND AT ANYTIME


TIM FRAMEWORK &
CHARATERISTICS
TIM ELEMENTS:

1) Strategy: Organizational strategy should be
develop timely and kept in dynamic balance.

2) Technology: Technology innovation is the key
source for enterprises to accumulate core
competence and accordingly to obtain the
competitive sustainable advantage.

3) Management: This refers to the innovation of
managerial theory, thought, paradigm,
mechanism, and tools, et al. For example 6 Sigma
management mode of GE is one of typical
management innovation.
TIM FRAMEWORK &
CHARATERISTICS
TIM ELEMENTS:

4) Organization: Organizational structure must be
adjusted correspondingly according to the
demand of innovation.

5) Culture: Changes in mind set and culture is the
prerequisites to carry out all innovation. In 3M for
instance there is a strong innovative culture to
encourage innovation and tolerating failures.

6) System: System innovation means the
innovation of rules and regulations about
enterprises routine, performance evaluating, staff
rewards and punishments, salary system, training
and promotion and so on.
TIM FRAMEWORK &
CHARATERISTICS
TIM ELEMENTS:

7) Market: Market innovation
means the innovation of
marketing channel, the
operational ways et al., by which
to create new market, new
channel and new ways, such as
using Blue Ocean Strategy.
(Show video of BOS)



TIM FRAMEWORK &
CHARATERISTICS

It is necessary to
synergize all of this
elements systemically.
Synergy of all the
innovation agents has
becoming the dominant
paradigm of innovation
management both
native and abroad
since 1980s, and its
the basic approach to
realize TIM.


TIM FRAMEWORK &
CHARATERISTICS
TIM SCOPE/DIMENSION:

1) Time: Enterprises must make every effort to realize 24/7
innovation (namely innovates throughout 7 days of
every week, 24 hours of every day) (Stephen M.
Shapiro, 2002). Innovative enterprises should
encourage immediate innovation (like writers or
musicians improvisation).

2) Places: Traditional organizational processes are based
on function and specialization, which often lead to
processes separate from each other. As a result, no
one is responsible for the whole processes, and no one
is really responsible for customers.

3) People: For implementing innovation at anytime and
everywhere, it is necessary to have all the people
inside and outside firms to participate the innovation.
Life taught us that everyone possesses the capability to
deal ,with complexity and interconnection. Their
creativity and commitment are the greatest resources
for innovation.
TIM FRAMEWORK &
CHARATERISTICS
Lets try to sketch the previous TIM model


Whats the different between TQM & TIM model?

Internal sources for TIM
Own R&D
Technical divisions design, technology
Production divisions (production, provision of
services)
Marketing and sales
Logistics (purchase and supplies)
Guarantee and post-guarantee service
Owners
QCC and QIT

External sources for TIM
Customers
Suppliers
Competitors
Consultants, R&D
institutions
Schools, universities
Professional
publications, Internet
Exhibitions, fairs,
specialized seminars
and conferences

Advertising agencies
Investors
Media
Authorized testing
laboratories,
certification agencies
State institutions,
public sector
Legislation
Globalization

CHARACTERISTICS OF SUCCESSFUL TIM COMPANIES:
Systematic collection of all impulses that could lead to
innovation
Creativity of employees
Ability to evaluate the possibility of the innovation idea
Good team work
Project-based approach and ability to manage projects
Cooperation with external experts (universities, research
laboratories)
Proper rate of risk-taking
Employees motivation (the employees are willing to improve the
product and the operation of the whole company)
Continued education of employees
Ability to finance the innovation activities

TIM FRAMEWORK &
CHARATERISTICS
DISCUSSION: Can you give other
examples of successful innovative
companies? How do they do it?
TIM FRAMEWORK &
CHARATERISTICS
The context of TIM formation
1) Environmental impetus - The
requirement of the complex and
changeable Internet
environments.

2) The practice needs - The
requirement of
total innovation practice in firm.


3) Cultural foundation - agree with
innovative culture.
Some of TIM formation tools
1 - 29
Different types of innovation
Can you suggest the type of innovation for TIM now?
Major
Minor
Enhances
Destroys
Incremental
Innovation
Strategic
Innovation
Major
Innovation
Radical
Innovation Effect of
innovations
on
consumer
habits and
behaviors
Effect of innovations on established firms
competences and complimentary assets
TIM Policy Implications
& Future Research Directions
1) TIM is a journey to heighten
competence of company, not a
destination of company. It isnt an
annual, quick fix, slogan-based
strategy, but a long-term,
competence-based strategy for
achieving the sustainable competitive
advantage involving all people at
every level of organization.

2) TIM is about corporate survival and
growth, therefore, involvement from
the top management is important for
the success of TIM implementation.

3) TIM is a long-term process of
organizational learning. In conclusion,
TIM is a very significant path to
reinvent and revitalize the company
competing at the 21st century.
Summary of TIM in Mind Map
1 - 32
Reference
Garud, R, and K Munir. "From transaction to transformation
costs: The case of Polaroid's SX-70 camera." Research Policy 37,
no. 4 (2008): 690-705.
Carr, Kathleen. Polaroid Manipulations: A Complete Visual Guide
to Creating SX-70, Transfer, and Digital Prints (Photography for
All Levels: Intermediate). london: Amphoto Books, 2002.
Coupland, Douglas. Polaroids from the Dead. New York: Harper
Perennial, 1997.
Iizuka, Naomi. Polaroid Stories. Woodstock: Dramatic Pub Co,
1999.
Nicholson, Brian. "Transaction Costs and Control of Outsourced
Accounting: Case Evidence from Britain and India." Social
Science Research Network Working Paper Series 37 (2006): 16.

Other online references used: http://www.wikipedia.com,
http://www.jbs.cam.ac.uk/interactive/expert_comment/,
http://www.polaroid.com