CHAPTER 4

1. Introduction to Technological Innovation Management

1. How Could a Company Enhance Its Capacity for Innovation
2. What is the Management of Technological Innovation and Why Is It Important
4.1 Introduction to Technological Innovation Management
Management of innovation
- a highly interactive process
-result of an on-going transfer of knowledge
among various points-entities where the
participation of every team member could
influence the final outcome (Cooke et al. 1998)
Innovation seems successful short term but appears not successful on a long term basis

Non-realistic expectations in the future evolution of technologies and lack of insight in unexpected influences

Scientific or technological problems

Organizational, administrative, and institutional problems

4.1 Introduction to Technological Innovation Management

Innovation management is complex and risky!

THE CHALLENGE THEREFORE IS NOT ONLY THE CREATION

OF INNOVATION BUT OF ITS APPROPRIATE MANAGEMENT TO
GENERATE PROFIT IN THE COMPANY.

According to Roberts (1987), the management of technological

innovation refers to the organization and orientation of human and
financial resources in a performing way, geared towards:
Advanced knowledge acquisition

Emergence of technical ideas aimed at new or improved products

Procedures and services

The development of applicable standards

The transmission of these ideas in production, distribution and use

4.1.1 How Could a Company Enhance Its Capacity for Innovation

Creation
of new
A company needs sufficient resources, capable and
Ideas suitable personnel for correct management of innovation
in order to enhance its capacity for innovation.
Re-design
of
Any organization, of any size, could be divided in a series
Production of procedures. The first group of procedures refers to a
processes
business’s strategic activities (strategic procedures), while
the second group underlies all these activities involving
customers directly (basic procedures). The third group of
Knowledge
Management procedures, supporting the other two, takes into account
the suppliers (support procedures)

Products
development

Re-design
of market
processes
 4.2 What is the Management of Technological Innovation and Why Is It Important

Management of technological innovation is one of the most demanding ones!

If done correctly, the companies create value and profit, develop a

sustainable competitiveness, become lively, entertaining work places,
attracting and preserving the most productive and creative personnel.

If done in the wrong way, the companies may face serious and probably
determining problems by losing money, employees and reputation.

If companies do not innovate, their competitors will catch up and in

any case, the former will find them outside the labor market.

Successful management of technological innovation is

achieved when the broad range of innovative elements
and activities within an organization is being managed
properly and is effectively combined with an innovation
strategy.
Management of Technological Innovation is an activity of vital importance Generation
of profit

The management of technological innovation

involves all the aspects of companies Develop-

ment
where the development and use of technological
innovation enable companies to attain their targets
Delivery of
encompasses elements such as the better
quality and
management of strategic innovation, the teams and larger
variety
networks of innovation, the research and
development, the design and elaboration of new Larger
products and services market
share
required under circumstances with
increased vagueness, uncertainty and risk
Increasing
remuneration
of
Innovation is something much more than invention- employees

creation of a new idea and its application; it encompasses all

activities required for the commercialization of new
technologies (Freedman and Soete 1997). Innovation is the Safety
successful commercial exploitation of new ideas. It includes
scientific, technological, organizational, economic and business
activities that lead to the commercial launching of new (or Satisfaction

improved) product or service.

 4.2 What is the Management of Technological Innovation and Why Is It Important

Companies compete successfully when they offer new, better or/and more
cost-effective products and services that can be used by customers for
their benefit and that they cannot be offered by competitors.

The challenge for an enterprise is effective decision making

for each one of such sectors and this usually should take place
simultaneously. This display the complexity of technological
innovation and therefore the challenge for the management
thereof.

Technological innovation is something much more than the successful

application of new ideas in products and services. It often requires changes
in the organization and strategies supporting it. This management deals
with a raft of issues and activities that constitute a challenge as to its
management, they add to the risk and uncertainty and render
cumbersome the elaboration of general recipes for its success.

Many praiseworthy patents offered by their inventors to the

public totally free, have not been launched to the labor
market, primarily because ‘what is everyone’s business is no
one’s business’
 4.2 What is the Management of Technological Innovation and Why Is It Important

The Management of Research and Development (R&D) and

The Management of Design are also significant!

R & D – provides an organized source for the

production of an idea and improves the capacity Management of Design is a great help for the
of companies to absorb useful information from development of new products and services. It
outside. Through external information provided also entails selection of elegant and performing
by R & D, the Management of Technological options in order to find solutions. Also, it covers
Innovation encompasses issues ranging from the options made in relation to aesthetic appeal,
technology forecast and evaluation techniques impact, operation and reliability.
up to organizational issues

The management of innovation operations

and processes includes the way operations
and production complete existing activities
and offers options for new innovation
activities. It is interested in a broad range of
entrepreneurial and organizational issues.
The final objective of the Technological
Innovation Management is process of
commercialization-meaning revenue from
investments in innovation.
 4.2 What is the Management of Technological Innovation and Why Is It Important

Intellectual property rights

The appropriation of Granting of license

value from the
investments of
Creation of technological standard
companies in
technological
innovation involves Speed

Secrecy and ownership of additional advantages

The so called ‘regime of intellectual property expropriation’

(the possibility, the tendency of a private good being converted into a
public one) determines the extent in which companies can ensure
receiving sufficient revenue from their investment. Commercialization
may not be direct, companies may extend their options for the future,
through the process of innovation and this should be examined upon
evaluation of their commercial profits.
 The ways in which technological innovations are
developed and used keep on changing and the
Management of Technological Innovation is a dynamic
and evolving sector of practice. New challenges arise as
regards technology-based competition, the role of the
government, the contribution of basic research, the
evolving innovation process and the environmental
concerns. The importance of the Management of
Technological Innovation is being investigated under a
corporate, national, theoretical and individual
perspective.

Padayon,
GHAIL Z. MACUTONG
CHAPTER 4.2.1
Innovation Management
Techniques (IMTs)
 A Corporate Perspective
• The Management of Technological Innovation is
important for the growth, effectiveness and survival
of companies.
• History is teeming with examples of enterprises that
were not able to survive because they failed to abide
by innovation’s requirements.
• Each of the sectors of Technological Innovation
Management is significant but some are critical for
specific companies.
• It is Research and Development that offers the
opportunities to create separately new products and
markets.
• Boldness as regards the processes enables
companies, such as Toyota to produce better and
cheaper cars compared to their competitors and
allows companies of electronics, such as Acer in
Taiwan to effectively produce for important
customers in the USA, Europe and Japan.
• Enterprises usually fail to acquire value from
their technological innovations.
• The effectiveness and the quality of
commercialization process determine the
outcome of technological innovation.
• Out of all aspects of Technological Innovation
Management, the innovation strategy was the most
demanding. Very few enterprises are steadily in a
position to develop and apply innovation strategies.
The adoption of dominant positions in technology
could offer a significant competitive advantage.
• At the same time, leaders may fail to capitalize on
new ideas, allowing product innovation fans, such as
Dell to succeed. Companies in the same industry
follow different strategies, based on their resources,
abilities and ambitions.
• When these strategies are correct, the significant
benefits increase.
• For example, the Italian clothing company
Benetton and the Spanish company Zara have
been particularly effective in integrating
innovation in their products, processes, marketing
and sales, being thus able to achieve their
competitive targets, i.e. fast delivery of fashion
products being constantly changing to the
market.
 A National Perspective
• The possibility to manage innovation impacts at
national, regional and local level because it
affects the levels of employment
• The globalization of production and markets,
along with the increased use of digital
communications and services have driven to a
significant restructuring of entire economies
and of the ways innovation processes are
regulated at local and international scale.
 A Theoretical Perspective-Evolutionary
Economy
• The empirical conclusions on the effect of
technological innovation are enhanced by new
theoretical approaches that unveil the significance of
innovation, evolutionary economic and new or
inherent growth theory.
• Evolutionary economics view capitalism as a system
that constantly creates variety of ideas, companies
and technologies created by entrepreneurs and
innovative activities of large research groups (Nelson
and Winter 1982 ; Dosi 1988 ; Nelson 1995 ).
Decisions lead to choices out of this variety regarding
companies, consumers and governments.
• Economic development is a very complex process
involving many constituents, in open systems,
with unpredictable outcomes. Innovation yields
profit, but also brings about a structural change
(Schumpeter’ creative destruction), uncertainty
and ‘useless’ investments.
• The importance of evolutionary economics in the
Management of Technological Innovation lies in
the way it helps to explain the primary
importance of innovation
• Emphasis is placed on the central paradox of
innovation: it is substantial, however continuously
problematic.
 Significant Characteristics of the New
Growth Theory
• Technology is ‘endogenous’-a central part of the
economic system, a key factor of production along
with capital and work.
• Traditional neoclassical economic theories view
technology as an ‘exogenous’ factor in explaining
economic growth.
• On the contrary, the new growth theory supports
that technology is a signifi cant ‘endogenous’ factor
that explains the growth and the understanding of
the necessity of the way technology fl ows among
companies and industries
 An Individual Perspective
• The contribution to society by advanced and recent innovators,
such as Edison, Marconi, Steve Jobs in Apple and Bill Gates in
Microsoft, is well known. Innovations, however, do not simply
arise through the heroic efforts of some persons. They usually
arise from combined activities of human groups and
organizations that build on the other’s knowledge and
experience. The work undertaken may mostly result in ‘99 % of
Edison’s toil from 1 % of his inspiration’ and indeed, occasionally
it may be, as Nathan Rosenberg ( 1976) put it, ‘polluting and
uninspiring’.
• Innovation is though the result of the application of innate
human inventiveness and wit.
• Creativity is something that we are all capable of and the
application of innovation capacity constitutes a source of
enthusiasm, challenge, satisfaction and happiness.
CHAPTER 4.3 CHAPTER 4.4
Challenges in Case Study in Technological
Technological Innovation Innovation Management
Management
4.3 Challenges in technological innovation
management
The more innovation activity focus shifts from the simple
incremental improvement towards demanding changes and the
higher the number participating in it’s creation, the more
technological involves the effort to manage something complex and
hazardous. Complexity is a characteristics of system having multiple
contributors and unexpected outcome. The integral of the above
complex system is a key objective of technological innovation
management.
Some of these complex system have been described as a
particular form of industrial production requiring different
administrative approaches. Therefore, for complex product and
system there are special demand in the design, program
management, applied
engineering and integration system. (Brusoni et al. 2001)
 Risk level are determined by various
factors, including the degree in which
innovation results are unpredictable, costly and
non-assignable. With the high degree of risk
and uncertainty of investment in technological
innovation and very high investment levels
therein, huge pressure is placed on companies
worldwide to cut the expenses of technological
innovation or obtain higher revenue therefrom.
 There are challenges linked to all the method used
to ensure desired revenue from investment in innovation,
such as whether for example intellectual property
protection is subsidized and can be preserved, or
whether secret can be kept. An additional estimate is the
issue of speed: how fast can innovation be protected and
returns be incurred? New markets can develop very
quickly, based on the new technology. In such swiftly
evolving environments many challenges arise for many
companies and opportunities for others.
Whether it has to do with the development or with
the improvement of new products, processes and service,
the management of technological innovation requires the
organizational capacity to learn fast and move
quickly when issues of competition arise.
4.4 Case Study in Technological Innovation
Management
Some of the issues and the common
problem faced in the management of
technological innovation are briefly presented in
the following short case studies, being complex
descriptions of actual businesses and placing
emphasis on the opportunities and the issues
such are facing.
• 4.4.1 Biotechnology Company
Companies were initially expected to follow
the model of information technology industry and
reproduce the remarkable growth of companies such as
Apple, Intel and Microsoft.
Sidmuth Genes Technology (SGT) is an
example of an American biotechnology company that
seeks the optimal way to obtain value from it’s
intellectual property. SGT started from two scientists,
Elaine Wiessman and Peter Georgiou a capital investor,
Jenny Kupper, on the basis of a scientific discovery with
tow possible market application. Laboratory test proved
very contribute to overcoming
liver cancer, a disease of a multi-million dollar
market in USA.
 They include the management of regulatory process
required to first protect and then develop its discovery. The
company patented its discovery (being the basis of Jenny Kuper
initial investment) but there were various technical aspects
associated with the important discovery that were not fully
patented.
Second problem faced by SGT was the time span and the
money required to gain the approval for a new drug development.
SGT could not afford to proceed through the drug approval
regulatory process, nor attempt to develop the marketing and
distribution effort required to launch its product in the market.
 Following a long discussion and with some
reluctance, it forged a stragitic alliance with an
important American pharmaceutical industry, receiving
in exchange a high investment capital for all the right of
the developed product.
The two scientis instead of conducting a research,
spend their time in communication with the regulation-
related organizations; they work on patent right
infridement and woth the drug approval process of the
American Food and Drug Administration; they execute
stereotypical procedures to improve the company’s
financials and manage the cumbersome and
demanding relations with associated large
pharmacueticals.
 The enterprise has important decision to
make for its future. The enterprise needs to
decide whether it shall continue financing its
own expensive research to develop a series of
new product, or whether it shall become
ambitious and try to develop and
commercialize
its products, probably in cooperation
With other companies.
CHAPTER 4.5
Innovation Management
Techniques (IMTs)
 Innovation Management Techniques (IMTs)

Many people would reply to that question by

saying that ‘innovation is something new, an
invention, a new idea’. However, in reality
innovation is not just the generation of a fresh idea
for a new product or process, but also includes all
the stages from design and efficiency evaluation to
the idea’s implementation.
 Innovation Management Techniques (IMTs)

The implementation of an innovation is

basically carried out with the first transaction
regarding a new or improved part, product, process
or system. On the contrary, an invention is a
concept, a plan or a model of a new and improved
part, product, process or system.
 Innovation Management Techniques (IMTs)

• Information on what can be done;

• Information on how to do it;
• Help in ensuring the firm makes the right decision
on what to do and how to implement it;
 Innovation Management Techniques (IMTs)

• Assistance with planning and implementation;

• Some way of ensuring the firm does not get
unduly side—tracked by short term pressures and
emergencies;
 Innovation Management Techniques (IMTs)

• Specific expertise on technological, marketing,

management or organizational matters;
• Training and skills development at various levels.
 Innovation Management Techniques (IMTs)

The difficulty arises for several reasons,

among them access to information, short
timescales, a necessary aversion to risk, reluctance
to engage outside help, and financial constraints.
 Innovation Management Techniques (IMTs)

• Many methodologies and techniques have been

employed in managing innovation, which are
implemented at every stage of the innovation
process in order to make it smoother and more
efficient; they are called Innovation
Management Tools/Techniques (IMTs).
 Innovation Management Techniques (IMTs)

Innovation Management Tools/-Techniques

(IMTs) has its own characteristics, its own way of
implementation and, depending on its special
features, is applied at different stages of the
innovation process.
 Innovation Management Techniques (IMTs)

Structured IMTs facilitate a rapid, wide ranging

appraisal and encourage strategic thinking. They
allow the consultant to highlight and probe areas of
weakness and those where there is a difference in
perception among staff.
 Innovation Management Techniques (IMTs)

Structured IMTs help to alert the company to

strengths, weaknesses and opportunities, and
emphasize important human issues. Above all, they
stimulate the firm to action. They can start a process
in which early tangible benefits will build confidence
for achieving long term change.
 Innovation Management Techniques (IMTs)

The key to success lies in achieving a “best fit”

between the consultant, the technique used, and
the firm.
Some principles of good practice are listed
[next slide]:
 Innovation Management Techniques (IMTs)

• Simplicity and clarity in presentation & data

collection
• Founded on an open, objective model
• Seeks best fit to company situation, with clear
objectives
 Innovation Management Techniques (IMTs)

• Compares with best practice in & beyond

industry sector
• Flexible – complements and does not stifle
creativity
• Collects basic information / expectations
beforehand
 Innovation Management Techniques (IMTs)

• Includes time perspective

• Balances comprehensiveness + time (e.g. via
suitable software)
• Consults cross –section on firm
• Uses discrepancy information (differences in
perception among staff)
 Innovation Management Techniques (IMTs)

• Includes action planning step

• Linkages to other tools / steps
• Sets success criteria
• Facilitates learning by firm
• Provides for mandatory follow - up
 Innovation Management Techniques (IMTs)

The consultant adds value by ensuring that

management and staff take the assignment
seriously; forcing issues into the open; promoting
wide staff involvement; interpreting findings; and
moving the firm on to action planning and
implementation.
 Innovation Management Techniques (IMTs)

In order to select the most suitable IMT for a

specific task, it is necessary to know the areas it
focuses on. It is equally important, of course, to
know the needs of the enterprise in question in
order to make a proper match.
 Examples of IMTs: Technology Audit

The Technology Audit is a method for identifying

through a short interview-visit to a company, the
major company requirements, needs, weaknesses
and strengths on both human resources and
infrastructure.
 Examples of IMTs: Technology Audit

The Technology Audit is a technique that

enables the auditor to determine and identify in a
very short meeting session, the management’s view
of how the company performs as well as strong
indications of what the company really needs.
 Examples of IMTs: Technology Audit

The Technology Audit technique examines

concurrently the external and internal environment
of the company and identifies the human resources
relation to company’s performance.
 Examples of IMTs: Technology Audit

The objective of Technology Audit is to

provide the auditor with a clear identification of
company’s first priority needs as well as strengths
and opportunities that should be taken under
consideration. It also assists the auditor to identify
the more significant actions that the company
should adopt.
 Examples of IMTs: Technology Audit

The technology audit is equally applicable to

manufacturing and service firms. The firms should
be wishing to create new products, incorporate new
processes, diversify their activities and be with
growth potential. They should have capacity to
survive and innovate and an aptitude for
international cooperation.
 Examples of IMTs: Technology Audit

The main steps of a technology audit process are

shown in figure and are described below:
 Examples of IMTs: Technology Audit

The psychology of the interviewed person is

the main obstacle of technology audit. The
psychological factor that is of major importance in
the outcome of any interview.
CHAPTER 4.5
Innovation Management
Techniques (IMTs)
 SWOT ANALYSIS
• is another tool for auditing an organization and its
environment. It is the first stage of planning and
helps markets to focus on key issues.
• provides information that is helpful in matching
the firm’s resources and capabilities to the
competitive environment in which it operates.
 SWOT STANDS FOR…

S – STRENGTH
W – WEAKNESS
O – OPPORTUNITIES
T – THREATS
• SWOT analysis is a business tool by which, a firm
wishing to implement a strategic analysis,
analyses and recognizes its corporate Strengths
and Weaknesses as well as the existed or
forthcoming Opportunities and Threats from its
external environment.
• The role of SWOT analysis is to take the
information from the environmental analysis.

• REMEMBER!
• S and W are INTERNAL
• O and T are External.
• SWOT analysis is an extremely useful tool for
understanding and decision making for all
sorts of situations in business and
organizations.
• By creating a SWOT analysis, you can see all
the important factors affecting your
business together in one place. It’s easy to
create, easy to read, and easy to
communicate.
 A company can use the SWOT analysis:
• While developing a strategic plan or planning
a solution to a problem.
• In order to develop a plan that takes into
consideration many different internal and
external factors, and maximizes the potential
of the strengths and opportunities while
minimizing the impact of the weaknesses and
threats.
SWOT Analysis Framework
ACTION CHECKLIST
 Tips for successful SWOT analysis

• Never copy an existing SWOT analysis; it will

influence your thinking. Start with a fresh piece of
paper every time.
• Set aside enough time to complete it.
• The SWOT analysis itself is NOT the result. It’s
only a tool to help you analyze your business.
• A SWOT analysis is not a business school fad. It is
a proven technique used throughout the business
community.
• Keep your SWOT analysis simple, readable, short
and sharp.
• Make sure you create an action plan based on
your SWOT analysis.
• A SWOT analysis only gives you insight at a single
point in time.
• Don’t over-analyze. Try not to worry if it isn’t
perfect, just get the analysis done.
 SWOT Analysis Example

• Subject of SWOT analysis example: the achievement of

a health centre’s mission.
• The scenario is based on the SWOT analysis, which has
been performed by a health centre in order to
determine the forces that promoted or hindered the
achievements of its mission.
• Starting position of the health centre:
• The staff’s lack of motivation
• The building was really small
• The facilities was old
• There was a lot of paper work and
bureaucracy
The alternatives where:
– Training of the staff in interactive techniques of quality
improvement
– Coordination with other providers to cover all user
needs
– Remodelling of the facility with local government
funds and international help
– Cost recovery of drugs and lab supplies with user fees
– Payment of incentives to staff based on performance
– Review of procedures for decreasing costs and waiting
times and increasing perceived quality
 RESULTS
– 27 % increase of patients
– Reduction of waiting times to 15 min
– 20 % increase of staff performance
– Remodelling of the facility
CHAPTER 4.5
Innovation Management
Techniques (IMTs)
 Topics:

4.5.1.3 The Black Box Method

4.5.1.4 System and Process Analysis
 4.5.1.3 The Black Box Method
Two of the most important tools, which can be used to
define the innovation needs of a business problem, are
the Black Box Method and the System and Process
analysis. Black Box is a method of a process in which we
have no knowledge of the inner workings of the process
being tested. We might know what the input is and what
the expected outcome is, but not how the results are
achieved. The method aims at:
• Either a formal description of the transformation
rules linking inputs and outputs
• Or the construction of a model exhibiting a behavior
that approximates what is observable from the
outside of the “black box
The Black Box Approach to Problem Solving is a simple
but powerful and significant method of dealing with
complex problems. Its main advantage arises from the
fact that it makes us differentiate clearly between:
• The preconditions for solutions or success
• The inputs (or resources we need—and/or dispose)
• The desired goals (for instance Design Goals) and
• The processes needed to build a bridge between the
inputs and outputs
Having mastered this very simple technique we can:
• Start to define new possibilities, potentials and
systems, whereas we may have relatively little
information of what is or could be in the box
Using only plain logical thinking we can often:
• See a logical bridge between the input and the
output (or present state and goals) and thus realize
new possibilities whereas a completely overall
consideration of the box would confuse us and make
us focus too hard on not-as yet developed processes,
which could easily result (if overdone) in feelings of
impossibility.
The Black Box method is typically used by:
• Researchers/statistics
• Project management
• Manufacturing
• Change management
• Engineering
Black-Box Testing
• Other names for black box testing include:
specifications testing, behavioral testing, data -
driven testing, functional testing, and input/output-
driven testing. In general, every combination of input
and output would require an infinite number of test
cases. Consequently, exhaustive black-box testing is
usually either impossible or unreasonable. The art of
testing is to design a small, manageable set of test
cases so as to maximize the chances of detecting a
fault whilst minimizing the redundancy amongst the
other cases.
Equivalence Testing and Boundary Value
Analysis
The principle of the generation of equivalence classes is to
group all input data of a program into a finite number of
equivalence classes so it can be assumed that with any
representative of a class it is possible to detect the same
errors as with any other representative of this class.
The definition of test cases via equivalence classes is realized
by means of the following steps:
• Analysis of the input data requirements, the output data
requirements, and the conditions according to the
specifications
• Definition of the equivalence classes by setting up the
ranges for input and output data
• Definition of the test cases by means of selecting values
for each class
 Functional Testing

• 1.)Objective and Purpose An alternative form of

black-box testing is to base the test data on the
functionality of the module. It is the purpose of
the functional testing to identify test cases that
can be used to prove that the corresponding
function is available and can be executed as well.
In this connection the test case concentrates on
the normal behavior and the exceptional behavior
of the object to be assessed.
• 2.)Operational Sequence Based on the defined
requirements, the functions to be tested must be
identified. Then the test cases for the identified
functions can be defined.

• 3.) Recommendation With the help of a test case

matrix it is possible to check if functions are
covered by several test cases. In order to improve
the efficiency of the tests, redundant test cases
ought to be deleted.
 4.5.1.4 System and Process Analysis
• System and process analysis are the other tools
available to define the innovation needs of a business
problem. System analysis is a method that helps the
businesses pinpoint where changes need to be made
in the system, so that limited resources can be
focused on those areas. Process analysis, determines
what steps within a task are required to create a
measurable output. Process analysis provides an
opportunity to identify problem points in a workflow,
understand the factors that affect performance, and
question why certain actions are taken.
• The typical use of systems analysis is to guide
decisions on issues such as national or corporate
plans and programs, resource use and protection
policies, research and development in technology,
regional and urban development, educational
systems, and other social services. System
analysis is performed using a system analysis
diagram which is a tool that systematically
illustrates the process flow from the supply side
(or input of resources), to the transformation of
throughput of product or services, to the output
side for final quality verification and release to
the customer.
Typical application of the process analysis technique
• To review, analyze, and improve an existing
process
• To identify process improvement opportunities
• To fine-tune processes in an organizational
change project
Typical application of the system analysis diagram
• To overview the sequential production or service
processes, lines of communication, and quality
feedback loops
• To reach a common understanding using the
systems approach
• To clarify roles, task responsibilities, and system
requirements
The system and process analysis are typically used
by:
• Research/statistics
• Creativity/innovation
• Engineering
• Project management
• Manufacturing
• Marketing/sales
• Administration/documentation
• Servicing/support
• Customer quality metrics
• Change management
 Problem Solving Phase

The problem solving phase encompasses the below

steps:
1.) Select and define problem or opportunity
2.) Identify and analyze causes or potential change
4.5 Innovation Management Techniques (IMTs)
3.) Develop and plan possible solutions or change
4.) Implement and evaluate solution or change
5.) Measure and resort solution or change results
6.) Recognize and reward team efforts
Notes and key point for process analysis
• To construct a process flow, several tools are
available:
• Process flowchart
• Symbolic flowchart
• Process mapping
• Cycle time flowchart
• Activity analysis
• Notes and key point for system analysis
Below, in the boxes, we are presenting the major
steps of the diagram and outside them we give some
other headings or designations that can be
submitted for the generic system analysis diagram
headings:
• Step-by-step procedure of the process analysis by
using the tool of symbolic flowchart
1. As a prerequisite activity, a facilitated team
develops a process flowchart at the activity-level for
the process selected. In order to create a process
flowchart the below steps need to be followed:
• The team facilitator assembles a team whose
participants thoroughly understand all aspects of
the process.
• The overall scope of the process flowchart is
determined. A starting and stopping point is
identified.
• Next, participants identify all major process steps
and the sequence of completion. Symbols and
connecting flow lines are used to show process
activity and sequence.
• The facilitator uses a whiteboard to start drawing
the flowchart. The participants assist the
facilitator in drawing and connecting all process
steps in the correct sequence.
• Finally, the symbolic flowchart is verified for
accuracy and dated.
2. The facilitator displays a set of standard process
analysis questions. The team reviews the
questions, adds, deletes, or revises questions to
fully cover the process to be analyzed
3. Using the finalized list of questions, the team
discusses all activities in the process and provides
responses to the questions.
4. Finally, the facilitator asks participants to recheck
all responses, makes final revisions, and dates the
list.
5. The information serves as an input to a variance
process, a logical next step for the team.
• Step-by-step procedure of the system analysis
1. The team develops a system analysis
diagram consisting of five blocks,
interconnected, and with internal and
external feedback loops added.
2. The blocks are designated to contain
processing or requirements information.
3. Using the completed System Analysis
Diagram as a guide, the team explores
potential problem areas and process
improvement opportunities.
• Example of process analysis application
In the example below we will present the method of
process analysis in the facilitation of the process of a
student’s workshop that takes place in a university. The
first step was the assembly of a team that knew
everything about the process of the workshop. The
second step was the construction of the symbolic
flowchart that would portray the process (see the
flowchart below). After the flowchart the 4.5 Innovation
Management Techniques (IMTs) facilitators displayed a
set of questions that fully covered the process of the
workshop. In the table below you can see the questions
and the responses to them.
Standard symbols:
• A flowchart is drawn from top to bottom and reflects
left to right directionality. Avoid crossing flow lines
within the chart; use connectors within and from
page to page
• Example of system analysis application
The above diagram represents the production system of
a factory. By constructing this system with its major five
blocks and by finding the feedbacks that affect its
function the team of the factory can explore potential
problem areas, such as:
• Bad quality of resources have a negative impact on
the demand
• A market analysis is very important to decide what
resources should be used to answer the good quality
of the products that the customers want
• Not taking into consideration the internal feedback of
demand to production will result either in the
production of more products than are demanded, by
increasing the storage cost, or in the production of
less products, by increasing the deficiency cost.