Group and individual motivation are important. Rewardand recognition
for innovation helps to generate ideas and foster a collaborative atmos-
phere. Additionally, the role of the individual must not be neglected in the
discussion of innovation. While the organisation can facilitate and foster
innovation, individuals have to take ownership. People need to have the
courage, skill and motivation to make things better. Only this type of com-
mitment will see the process to completion.
■ Risk and the innovation dilemma
Inevitably, conflict between innovation and operational efficiency will
occur. All organisations need to develop new ideas and translate such
ideas into new products, if they are to remain competitive. Equally, organ-
isations require stable and efficient day-to-day operations in order to
accomplish basic tasks effectively. Indeed, many views of management,
and management techniques, tend to focus on eliminating waste, reducing
cost and optimising the use of assets. Figure 10.4 illustrates the principle.
Product development and innovation 223Illustrative Example 10.3
Dell computers: product recall
Product recalls can easily turn into a crisis which can damage an entire brand. However, with
careful handling and appropriate responses the effect of recalls can be minimised.
Dell faced a product recall in 2006, when it announced the voluntary recall of over 4 million
Dell branded batteries. The batteries were sold as part of/in support of the company’s note-
book computer range. Although very rare, the product posed a potential fire risk. This was
dramatically illustrated by media coverage of a notebook product busting into flames.
Consider, how an organisation can reduce the negative aspects of product recall, and what
role does the Internet play in product recall?Organisational resources
Effectiveness • Time Innovation- Skills
- Finance
Figure 10.4
The innovation
dilemma