User:Sebastian Encalada/managementinnovationone

Julian Birkinshaw, professor of strategic and international management at the London Business School , defines management innovation as the invention and implementation of a management practice, process, structure, or technique that is new to the state of the art and is intende3d to further organizational goals. Management innovation involves the introduction of innovation in an established organization, and as such it represents a particular form of organizational change.

To manage a company effectively with innovation and business development, it is necessary to structure and inform the analysis. It is important to mention that each innovation has different aspects, depending on the type of company and the type of market. Not always the best decision is to innovate the company.

Four Perspectives on Management Innovation
'''The institutional perspective. -'''  This perspective has indirect approach with the Human Resources department on a company. The institutional perspective measures innovation in terms of the discourse around particular ideologies.

'''The fashion perspective. -'''  This perspective is focused on how the managers use their management ideas depending on the type of manager he or she is. It is considered that this perspective provides a wealth of insight into how management fashions take shape.

'''Cultural perspective. –''' This perspective attempts to understand how management innovation shapes, and gets shaped by, the culture of the organization in which it is being implemented (BIirkinshaw, J). This perspective also involves external factors of the company such us the region where the company is located, the country, etc.

'''The rational perspective. –''' This perspective believes that management innovations are introduced by people with one specific goal; make their organizations work effectively, no matter what should they do in order to achieve the goal.

Processes of Management Innovation
It is always important to follow a process when a Company is taking a decision in order to control and follow each step the company is taking. Since this is a process, every step should be complete before take the next step. This process has 4 main points: From now on, the process of management innovation has concluded. It is important to take into consideration effective types of measures in order to control that the innovation plan is been working.
 * Motivation. – Employees should be motivated by the company in order to have better results. Also, concerned with the facilitating factors and precipitating circumstances that lead individuals to consider developing their own management innovation, without motivation, individuals in the company will not create nothing innovative;
 * Invention. – The objective of the invention is to create a new product, service, solution, based on the needs of the costumers. Normally, this step has an initial act of experimentation;
 * Implementation. – This is the technical process of establishing the value of the new management innovation and turning it into reality;
 * Theorization and labeling. – This is the final step. This is a social process where individuals or costumers make sense of and validate the management innovation.

Open Innovation
Henry Chesbrough, professor and faculty director of the Center for Open Innovation at the Haas School of Business at the University of California, mention that open Innovation implies the tendency that innovation processes increasingly require collaboration with several stakeholders, users, suppliers, experts, etc. The open innovation paradigm can be interpreted to go beyond just using external sources of innovation such as customers, rival companies, and academic institutions, and can be as much a change in the use, management, and employment of intellectual property as it is in the technical and research driven generation of intellectual property.

The Closed Innovation Paradigm
The closed innovation paradigm and its associated mind-set toward organizing R&D has led to many important achievements and many commercial successes (H. Chesbrought, 2003 ). It is the mental model that some companies have adopted. In fact, most major U.S. corporations to run their labs for most of the twentieth century.

How prevalent is Open Innovation?
This is not to argue that all industries have been (or will be) migrating to open innovation. At this point, different businesses can be located on a continuum, from essentially closed to completely open (H. Chesbrought, 2002 ). On the other hand, some industries have been innovators for some time now. Consider Hollywood, which for decades has innovated trough a network of partnerships and alliances between production studios, directors, talent agencies, actors,etc. It is important to take into account that the open innovation lies also in how companies screen their ideas.