Study: The Puzzle of Innovation in China | Page 12

12
The transition from one stage to the next is determined by a
company’s level of innovation capabilities that can be distinguished
in seven dimensions (see fig. 08): Innovation Market
Performance, Innovation Attitude, Innovation Activity and
Localization, Innovation Organization and Culture, Innovation
Skills, Innovation in Industrie 4.0, Innovation Collaboration.
Depending on the expression of those seven dimensions, a
company transitions faster or slower from one development
stage to the other. ||
FIG. 08 І SEVEN DIMENSIONS OF INNOVATION CAPABILITIES
1
INNOVATION
MARKET
PERFORMANCE
Developing a pioneer position in introducing new products
and services, accelerating the speed-to-market, and
increasing the share of revenue generated by new products
are factors which enhance a company’s innovation
performance in terms of quantity, quality, and timing
2
INNOVATION
ATTITUDE
Making innovation a top-management priority; constantly
outlining and evaluating local innovation opportunities;
prioritizing and timing in a detailed innovation road map
SEVEN DIMENSIONS
3
4
INNOVATION
ACTIVITY AND
LOCALIZATION
INNOVATION
ORGANIZATION
AND CULTURE
Organizations conquering the Chinese market often
transform from a simple import-only approach to local
innovation of products, services and business models
from scratch
Organizational structures can differ in the degree of
autonomy granted by the headquarter to the Chinese
division; clear definition of responsibilities and decisionmaking
rights for defining products, services, and business
models as well as associated budgets approvals
5
INNOVATION
SKILLS
Recruit, develop, and retain key staff; foster creativity
as well as critical and innovative thinking through
dedicated ideation workshops; establish an appropriate
incentive system
6
INNOVATION
IN INDUSTRIE 4.0
Identification of innovative local products, services and
solutions and formulation of business model concepts
in the context of I4.0; definition of cross-border evaluation
teams and a company-wide strategy; outline of practical
development stages and cross-border task force for the
roll-out of elaborated I4.0 concepts
7
INNOVATION
COLLABORATION
Seeking out partnerships with local suppliers, think
tanks, research institutes, universities as well as with
selected competitors as an effective way to bring
novel perspectives; nurturing internal ideation through
cross-functional, cross-border project teams