M1: Analyze different sources of innovation and how organizations

can foster and develop an environment and culture of innovation.

INTRODUCTION:
SOURCES OF INNOVATION:
In 21 century the innovation has got so much importance in the organization, as many organization
has now realized that the survival in the competitive market without constant innovation is
impossible. Likewise many successful company like Google, Facebook, Apple, Tesla, and General
Electrics have got so much success just because of constant innovation, and the success of these
companies have proved the importance of innovation in the company. Innovation has a very deep
importance in the success of any organization as it changes the whole structure of firm, the effect
of innovation goes long lasting for an organization. The main question is that how innovation arise
in organization, so this question is answered by Peter Ducker in his book “The innovation and
entrepreneurship”. Following are some sources which he explained.

1. UNEXPECTED:
Sometime Innovations can take place unexpectedly. They can happen by chance. As some
time unexpectedly a unique innovative idea comes in one mind, and the application of that
idea give innovative product. The unexpected events and situations sometime proves
extremely beneficial in the world of business as these situation inspire the leaders and
innovators to look at different angle to the situation and to take useful advantage of the
opportunities that arise. For Example: one of the best example of the unexpected innovation
is X-Rays which evolved the medical sector and proved beneficial in the diagnosis of many
diseases. Actually the Wilhelm Roentgen was studying the properties of cathode rays by
using a Discharge tube. But he was surprises when he got an expected result, as observed
florescence in the part of cupboard. Later on studying the Roentgen confirmed that the,
fluoresces is due to the part of electromagnetic wave which he Named X-rays.

2. INCONGRUITY:
The incongruities and curiosities about something may also lead to the innovation. When
the need of the something happens and curiosity about its solution may lead to innovation.
It means different incongruities may give birth to different innovations. For example if the
product sales of accompany is low then the revenue margin will also be less. So there will
 be the existence of economic incongruities. These economic incongruities will be perfect
opportunity for the creation of innovation if provided that solution is clearly defined, all
the necessary requirements for the solution is present, and the solution of possible without
a deal of new knowledge.

3. PROCESS NEED:
Along with invention necessity is also the mother innovation. The need spots the weak
process in the organization and then the eradication of need leads to the birth of innovation.
For Example; alight microscope was developed for seeing small and minute unicellular
organism and also used for detection of germs, but a simple light microscope was unable
to detect the any kind of viruses, due to which the diagnosis of viral disease was impossible.
There felt a need of something that can detect the Virus as well. So in order to solve this
need simple light microscope was innovated in a new electron microscope. The electron
microscope is innovative machine which can detect any kind of virus and by this need
based innovation the diagnosis of viral diseases made possible.

4. NEW KNOWLEDGE:
New knowledge is considered as one of the main source of innovation. New knowledge in
any area, either it’s in medical science, nanotechnology, business, Artificial intelligence, is
regarded as source of innovation. Every years new areas of knowledge is discovered and
this new area of knowledge adds to the existing one of knowledge. And this paves the path
of innovation. These innovation may sometime prove life changing. For example in recent
few years an area of new knowledge is developed called artificial intelligence, this area
knowledge has given birth to some amazing new innovation like with driver car, auto pilot
of plans, GPS based sticks for Blind people and many more innovation.

5. CHANGE IN INDUSTRY AND MARKET STRUCTURE:

Change in the structure of the industrial sector, market structure and the perceptions may
also give birth to innovation. When the moods of market change then the innovation is
developed by the organizations. For example with the arrival of the internet facility in
Pakistan most of the service industry moved to online facility. Since keeping in view the
changing moods of the market most of the banks in Pakistan innovated their systems and
started online banking this changed.
HOW ORGANISATIONS CAN FOSTER AND DEVELOP A CULTURE OF
INNOVATION:
In order to foster and develop culture of innovation in an organization, the every employee of
organization should be aware of the importance of innovation, and their expectations and agenda
about innovation should be crystal clear. Therefore, a first and the important step in developing
culture of innovation is to communicate the innovation strategy to all the employees, all the
managers and the whole level of hierarchy. This communication of the innovation strategy creates
the awareness in the employees. Along with that the management must arrange workshops for the
employees in which the brainstorming of the employees is done which will then prove beneficial
in the development of the culture of innovation in organization. Even more important, however, is
the dialogue with employees and their involvement. Along with all of these the direct involvement
of the employees is also necessary for the development of the innovation in an organization. Hence
to involve the employees in the innovation the creativity workshops and pitching contest is
arranged. Fear of failure is something hazardous for the innovation, so in order to foster the
innovation organization the fear of failure must be eradicated, because fear of losing is something
that low down ones morale and didn’t allow him to do something innovative. Failure is
unavoidable when you are involved in fostering culture of innovation. So for making innovational
culture the enthusiasm level must be kept high and all the focus should be given to the target only.
In order to create culture of innovation in a real sense, you must take step fearlessly. Also, action
taking for innovation is also encouraged. The motivation and enthusiasm graph of all the levels
the levels of hierarchy should be on top regarding the fostering and creating culture of innovation.
Their organization should not be resistant to the adaptation of new modern technology.