Managing and Measuring Innovation Success: Key Challenges and Success Factors

This report discusses the concept of managing and measuring innovation success, including its aims, purpose, and expectations. It explains the focus of innovation management on varied components and analyzes key challenges in dealing with innovation success. The report also explains important success factors in measuring innovation success and analyzes approaches taken to measure it.

UGB 269 INNOVATION
MANAGEMENT ASSESSMENT

Table of Contents
INTRODUCTION ........................................................................................................................3
TASK ..............................................................................................................................................3
What is managing innovation success....................................................................................3
How is innovation success managed......................................................................................4
Defining aims, purpose & expectations of managing innovation success.............................4
Explaining innovation management focus on varied components.........................................5
Key challenges in dealing innovation success........................................................................8
Explaining important success factors in measuring innovation success................................8
Explaining term measuring innovation success.....................................................................9
Analyzing approaches taken to measure innovation success.................................................9
How is innovation success measured...................................................................................10
What are the major challenges in the context of measuring innovation success..................10
What are the success factors in managing innovation success.............................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Innovation management refer to procedure of effectively managing a company’s
creativity process, beginning at initial phase of idealization, to its last stage of successful
implementation. This term encompasses effective and strategic decisions, practices and
beneficial activities of devising and implementing a creative tactic. Innovation management play
vital role in growth and success of organizations. It supports to make innovation of new item or
service faster in manner. The current assignment will be based on specific theme and that is
managing & measuring innovation success. It will define the concept of managing invention
success, how their success managed, and aims, purpose as well as expectations of dealing
innovation success. The study will explain innovation management concentration related
elements, key challenges in the context of managing & measuring innovation success. It will
clarify key approaches to measure innovation success. Lastly, the report will justify success
forces in the context of these two terms.
TASK
What is managing innovation success
Innovation is defined as process of innovating new product, service and other thing that
individual prefers to purchase and expected to purchase from their favorite and trustworthy
brands. It is one of those successes, that a person, entrepreneur, organization or business effort to
manage in effective manner, which is quite important essential, and beneficial for them to do so.
The process of managing innovation success may drive the attention of individuals toward taking
right and most effective action, which in return provide them unpredictable benefits in bulk. It
can be said that innovation success management refer to set of effective administration practices
that may lead to increase productivity, profitability and enhance customers satisfaction that is
important for an entrepreneur to do successfully (Zacharias, Daldere and Winter, 2020). It may
make a company capable to handle each and every activity that are needed to introduce a new
item, service and something new in a form of product. This type of management is considered as
systematic approaches that may help to nurture the creative ability of candidates and create a
working environment that boost morale, and innovative ideas among people. By managing
innovation success, organizations like TESLA, Nano, etc. may take benefit of gaining

competitive advantages which is not that easy for these firms to grab so, because it requires a lot
of hard work, key resources, high investment, etc.
How is innovation success managed.
There are different types of approaches and tactics available in the world of business that
varied organizations has been utilized for purpose of managing innovation at global level in
effective manner. It is a huge responsibility for them to do so appropriately and fulfill in
beneficial way. For example, TESLA is one of those leading vehicle manufacturing companies
in the world, that effort to produce the best and most attractive design of cars, and other vehicles
that consumers prefer to buy according to their needs, interest and preferences.
Organization in order to manage innovation in systematic and effective manner, may take
approach to concentrate on transformation of auto industry as a whole. It may apply an effective
method to build its innovation capital so firm and its management may win the key resources and
support to execute on its vision (Lessons from Tesla’s Approach to Innovation, 2020). The
investors of TESLA may seeing potential of its venture further as enterprise market value now
exceeds combined market value of Ford, GM and Fiat Chrysler. By managing innovation
success, chose firm may introduce range of electric cars that defy target market expectations like
Model S, which falls under the category of safest and fasted car on road. It can be said that when
a company effort to manage innovation success, it takes approach to utilize the best and
appropriate form of model, tool and concept, such as funnel innovation.
Defining aims, purpose & expectations of managing innovation success
The procedure of managing innovation and success that a company may gain through this
concept is quite challenging. They may conduct this activity for specific reason, which give them
appropriate direction, clear vision and view of performance management.
Aim-
The goal of managing innovation success is to gain existing opportunities accessible in
the market where a company may run and manage their businesses activities in effective manner.
Purpose-

The main motive to manage innovation success is to increase the profit's margin of
brands and to gain competitive edges, for which organizations whether it is small or large work
hard and efforts a lot.
Expectations-
Expectation of human may drive their attention toward conducting those activities and
practices, which made them capable to fulfill it in satisfactory manner. Behind managing
innovation success, enterprises or ventures expect that may achieve specific goal, without facing
any challenge and deal with complication (Zacharias, Daldere and Winter, 2020). For example, a
company may expect to generate revenue more than their competitors who are running and
managing their businesses in similar market or sector. There are several companies in the
business world are operating and managing their operational activities, they all expect to gain
specific thing while conducting practice of managing innovation success which segregate into
different types. For example, some expect of enhance customers satisfaction via this process and
rest of the organizations expect to enter into new profitable market.
Explaining innovation management focus on varied components
The overall process of managing innovation may encompasses key elements that play
significant role in success and unpredictable growth of any company. These components are
following;
Corporate foresight and trends-
Before managing innovation, it is important for management to conduct practice of
foreseeing further needs of consumers as they expect to buy an innovative item. Furthermore,
they also tend to find out and collect information about current as well as in the future market
trend.
Innovation strategy-
Along with above, they may consider another element and that is current one. According
to this component, organizations who seek to adopt the concept of innovation may take action to
develop effective innovation tactic, which enable it to achieve set goals and objectives.
Brainstorming and scouting-

Innovation management is possible when individuals at workplace may effort to work
with method of brainstorming, which drive their attention toward generating creative idea and
sharing it with others to achieve specific aim that a company may expect to reach (Bonnardel
and Didier, 2020). It is also important for them to consider more element such as innovation
scouting, which means organizations may take action to open innovation approaches to expand
the method to internal & external procedures.
Innovation process, accountabilities and project management-
In order to define the innovation process in understanding manner, here innovation funnel
concept is utilized, which encompasses essential stages such as;
Idea generation-
According to this phase, innovation process being with idea generation, which enable
individuals to develop effective and creative ideas for purpose of producing new goods or
services according to current market needs.
Screening-
After developing varied ideas, it's time to select the best and most effective one.
According to second phase, management effort to choose the most beneficial concept of
innovation, which they implement into practical manner.

Evaluation-
By passing above two phases, they move to third one, where manager and leaders of a
company effort to determine the effectiveness of chosen innovative idea, which they implement
to produce a unique item.
Implementation-
After evaluating the key benefits and reliability of new product development as
innovation idea, management take approach to develop effective tactics and plans which may
drive the attention of candidates towards innovation concept implementation (Modranský,
Jakabová and Oláh, 2020).
Testing-
This stage is important to consider by any company whether it is large or small, because
it may drive their effort to make appropriate item or service that people as target market prefer to
purchase. For purpose of testing, management may select group of specific individuals whether
Illustration 1: Innovation Funnel
Source: (Open Innovation Funnel Model Showing Creative Process, 2021)

their employees or local people's, who are capable to give appropriate or accurate reviews about
new products such as drinks, etc.
Commercialization-
By passing all the stages, management may reach to last one and that is
commercialization, which they consider as product launch. It may make them capable to utilize
the best marketing tools.
Responsibilities-
Innovator or an organization who effort to innovate a new item and service is accountable
to conduct each practice in appropriate manner, which is their main responsibility. They may
take care of developing the best creative idea and chose individuals who may take action to make
it practically possible. From innovative idea development to launch, they may take care of
everything for which strategic decisions are needed.
Project management-
Project management is described as process of leading the work of an individual or group
of people to achieve all project or task aims within given time limitation. For purpose of
managing innovation project, manager may take action and strategic decision to utilize the best
approaches that exist and utilized in the corporate world by many companies. These are Lean
practices, Six sigma, Just in time, Kanban, etc. which enable them to manage any project in
effective manner in term of describing different ways to do so.
Key challenges in dealing innovation success
Lack of coordination and collaboration-
While conducting activity of managing innovation success, an organization may deal
with several challenges and that is current one (Bican and Brem, 2020). It may create issues for
them in term of decreasing effectiveness and efficiency to manage everything according to plan
and strategy. Without collaboration and effective coordination, they may do not work
appropriately and obtain desire outcomes, for which they tend to gain so.
Lack of resources-

In order to manage innovation success, it is essential for organizational management to
utilize specific and effective resources. Due to lack of available resource, it is not possible to
manage overall process. Just because of this reason, organizations faces challenge, which may
lead to decrease their operational effectiveness. Without having important and useful resources
they may do not reach at desire outcomes in effective manner.
Lack of strategic direction-
For purpose of managing innovation success set of strategic directions and suggestions
are hardly needed. Due to lack these elements, it is impossible to manage innovation and gain
success from it. Without right suggestion, individual are unable to conduct any practice, which
they tend to do so in effective manner, and successfully.
Explaining important success factors in measuring innovation success
There are multiple forces exist in the market that contribute to make process of managing
innovation success achievable. For example, technology advancement is the best and excellent
factor that may put positive impact on entire process in term of making management capable to
manage success and innovation by using effective and advance technologies, such as social
media, because it may utilize to promote and generate the awareness about a new product in the
market, which also consider as the important part of innovation success. Employees
performance and productivity is also included in list of factor, that may put direct impact on
action of measuring innovation success (Zhang and et.al., 2020). This internal force may drive
the attention of management toward dealing with major risk and making achievable
commitments, because they are capable to do so successfully as they may have skilled, talented
and knowledgeable candidates. It is important to have diverse and committed workplace at
workplace, among which each candidate is able to reach expect outcome and gain competitive
edge. Effective leadership as internal factor may support to measure innovation and success
which a company may gain via apply this concept practically that is quite beneficial.
Explaining term measuring innovation success
Along with managing innovation, successful companies like TESLA and other with
responsible management may also effort to measure the success that they may gain by
conducting practice of introducing innovative products or services (Wydra, 2020). It can be said
that by measuring innovation they may gauge their performance in term of combining two or

more effective metrics. With the help of certain strategic approaches, techniques and tools,
management may take pleasure of measuring innovation success, which is important for them to
do so as it may provide them benefit of gaining profits margin and generating revenue more than
other brands. In order to measure this process, an organization need to conduct varied practices,
among which each is appropriate and relevant to task or aim which they seek to achieve. It can
be stated that the most significant function or action of measuring innovation success is to assure
that management, employees and other stakeholders are going right things by following the
accurate directions. It is possible that they may achieve expect result, when they conduct activity
of taking right judgment about innovation success measurement. This term give companies key
benefits which they may utilize in the future.
Analyzing approaches taken to measure innovation success
For better and excellent success of businesses as they may utilize the concept of
innovation, appropriate and key methods in the context of measuring innovation success are
important to take into consideration.
Annual profitability-
The best technique to measure innovation success is current one, according to that,
management may effort to determine the gap between earlier and current year profits margin ,
which may enable them to measure the success of concept through which they may earn a lot of
money as net profit and generate revenue.
Number of sales-
Another approach that they may take into consideration is number of products sales,
which may affect success of innovation as well as organizations (Willett and et.al., 2020). When
the innovative products is successfully selling in the market and become trending, it may enable
management to examine the innovation success which people prefer to purchase and also refer to
others to do so.
Customers satisfaction-
The innovation success is easily measured, when management take approach to watch out
social media and other sources of information, through which they may get data about enhancing

consumer satisfaction. When people are satisfied, a company may take pleasure of increasing
sales and determine the key effectiveness of innovative products.
How is innovation success measured
The innovation success is effectively and successfully measure, when management may
take right action and chose the best approach. For example, innovation metrics include, annual
growth of companies, target market satisfaction, number of sales, and project that firm may
obtain after success of their innovative product or service. Along with this, there are more Key
performance indicators are existed that are useful and beneficial as well. It is important for
companies to select specific or all, as it depend on size and scope of ventures. The most common
or traditional manner of measuring innovation success is leadership. A manager may utilize the
specific management style, which enable them to measure overall success of innovation or
creation in the company by adopting and accepting key methods such as profits margin analysis.
It can be said that amount of leadership and a leader time that they spend to sponsor and oversee
innovation activities may also contribute to conduct particular discuss practice in systematic
manner. All these techniques are effective in varied terms, which utilize by the firms according
to requirements.
What are the major challenges in the context of measuring innovation success.
Lack of analytical tool-
This issue is quite common for a company and its management to face, which may lead
to decrease the change of innovation success. Without using analytical tools, it is not possible to
measure success and growth as well as key benefits of innovation that is important and expected
from companies and heir essential stakeholders.
Lack of planning-
Another challenge is current one, which may put negative impact on growth and success
of varied companies. Due to lack of strategic plan, individual candidate may do not have any
idea about innovating and introducing a new product that is not suitable for success of this
concept and a company as well.
Lack of consistent frameworks-
Without selecting and using effective and helpful models or concepts, management may
deal with challenge of measuring innovation success. It is quite essential for them to do so in

systematic and effective manner. The utilization of key frameworks may give them power to
achieve set goals and reach desire outcome.
What are the success factors in managing innovation success.
Team of skilled employees-
With the talented and knowledgeable candidates, management of innovation success is
quite easy as it may provide key benefits to companies in varied terms, which is beneficial in
term of gaining competitive edges. Management may take benefit of talented people who are
capable to conduct and support in the context of specific task such as current one.
Effective leadership and management style-
This success factor may make organizations able to reach desire result and also provide
chance to develop market expansion tactic, that grow ventures rapidly. With appropriate
management and leadership styles and utilization, a firm may take benefit of incredible growth,
which they tend to do so from longer time, but unable due to lack of resources such as effective
leaders.
Appropriate models-
By using the best concepts and theories management may take edge of managing
innovation success effectively and gain key benefit that are beyond stakeholders expectations. It
may give them advantages of increasing sales, profits and enhancing customer satisfaction that is
really important for a public, private or other types of brands or enterprises.
CONCLUSION
By summing up above discussion, it has been summarized that by following the overall
process of innovation management, considering innovation funnel stages, and fulfilling
responsibilities related to this process, organizations has gained competitive edges. It has
increased the profitability, productivity and enhanced consumer satisfaction by managing
innovation and success of this strategic decisions. Companies such as TESLA and other that
effort to innovation something new has utilized the key approaches that made them capable to
successfully overcome the key challenges regarding measuring and managing innovation
success. Furthermore, by using brainstorming and other types of techniques, management has

successful measured and managed innovation success and build wide as well as skilled teams of
players who are capable to conduct this action in the future.

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