is vital, as successful innovation requires a combination of skills and func-
tional activity (e.g. marketing, research and design, etc.). Innovation tends
to flourish where frequent contact and good working relationships exist
among groups. The exchange of informationand ideas should be encour-
aged, as this not only facilitates innovation but also enhances teamwork.
Information flow and effective communication contribute greatly to cre-
ativity. However, it is important to recognise that more information is not
necessarily better – information overload should be avoided. There is a
need to be focused on the external environment. External inputsrelating to
market trends, customer perception, technological development and com-
petitor activities are vital inputs into the overall process. The organisation
must be receptive to new ideas/change and have the capacity to evaluate
such concepts. Clearly, senior managementhas a role to play in the process.
They need to develop appropriate strategies and act as facilitators to the
process. This normally involves taking calculated risks and allocating
required resources (see section on Risk and the innovation dilemma).
Consequently, senior managers need to be committed to long-term growth
as opposed to short-term profit. If it is to work properly, innovation
requires the correct systems and support. Frequently, this relates to organ-
isational culture. Creating the right organisational climate is important, as
the wish is to challenge existing practice and generate creativity. Systems,
such as communications networks, computer-aided design and project
management structures need to be in place. The organisation must foster
and exploit innovation.222 Strategic Marketing: Planning and ControlTeamwork Exchange ofinformationInnovationExternal
inputsmanagementSenior Support andsystems Reward
Figure 10.3
Generating
innovation