English

The Impact of Senior Management Involvment on Business Development

We often believe that innovation is limited to R & D teams, not leadership. But the interest shown by managers may have a significant impact on revolutionary products and innovative ideas. As an example, the race to reach the moon: where NASA estimated the vision of John F. Kennedy. While Kennedy did not direct the project himself, he talked about it and gave it enough attention to make the project work.

http_2f2fs3-eu-west-1-amazonaws-com2ffthtsi-assets-production2fez2fimages2f92f32f12f42f1164139-1-eng-gb2fmain_32bb6d8c-218c-4e0c-93f9-cc66e97d4ff7-e1516810170616.jpg

Getting companies to use knowledge rights requires management to maintain the level of attention along the same line.

It may be surprising to buy something without using it, but most people do it most of the time. Some people participate in a sports club in the hope of changing their lifestyle, but they never use it. Companies also do the same, hoping that the procurement process itself is enough to make a difference. When the rights to use knowledge are obtained, for example, management may believe that once they have acquired those rights, they will be used effectively. But as with a sports club that has not been used, buying knowledge from outside sources does not mean making the most of it, but merging it into the company to achieve the best results.

Knowledge-use rights are now an innovation factor. As more and more outsourcing companies seek new ideas by purchasing a full set of knowledge. There are two common types of rights to use the knowledge of ordinary licenses, where knowledge is acquired without the involvement of the party emanating from any kind of partnership, and the second type is partnership licenses, where the company establishes a relationship with the source of information.

In an article recently published in Research Policy entitled “Standard Licenses versus Partnership Licenses: Interest and the Relationship between Licenses and Product Innovation,” addressed the successful ways to use innovative foreign knowledge firms. Companies can enter into partnership licenses, invest in teams of the parties, or be licensed to use third-party knowledge. Success in bringing and using this knowledge effectively depends on the extent of management’s interest.

Partnership licenses are known to be costly and require more time, but have a significant impact on innovation. During the study, were surprised that regular licenses may have the same effect on innovation if managers give attention to the project in question.

We often believe that innovation is limited to R & D teams, not leadership. But the interest shown by managers may have a significant impact on revolutionary products and innovative ideas. As an example, the race to reach the moon: where NASA estimated the vision of John F. Kennedy. While Kennedy did not direct the project himself, he talked about it and gave it enough attention to make the project work.

The leadership approach affects innovation. Their attention is one of the most scarce in institutions. The agenda of the executive heads and managers includes several tasks and priorities. Of course, they will not be able to look at all things, but they should make conscious choices to prioritize them. The attention given by senior management affects all of the company’s activities – from its approach to innovation to their choice of different technologies.

In previous research on management’s approach to things, their impact on subsidiaries and isolated companies, the lack of interest of companies in ideas outside the company because they represent a challenge for them as their distance from their area of influence.
The concern is how to transform external information into innovative products. The study demonstrated that in the case of essential innovations, such as new drugs aimed at treating cancer radically, and not through gradual adjustments to the product.

4 comments

  1. The chief executive’s attention is the most lacking in the organization. The agenda of executive heads and managers includes a number of tasks and priorities.

    Liked by 1 person

  2. The right to use knowledge is now an innovation factor. More and more companies seek new ideas by buying a full set of knowledge, where knowledge is obtained with the participation of one party without any kind of partnership.

    Liked by 1 person

  3. Some types of expertise might only be needed from time to time and it may be better to outsource as required, e.g. using a financial consultant on a short-term basis during a capital expansion phase. Another option might be to use outside directors or non-executive directors, who can bring substantial commercial knowledge and experience on board.

    Liked by 1 person

  4. Top management involvement in projects of new product development can take different forms. Employees working in such projects see three ways in which top managers can support them. First, support can be offered by the direct influence of top managers: through multi-functional senior management

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s