Fundamentals of Integrated Management: Analysis of Innovation

Methodology

The methodological framework of the research the results of which are presented in this article is based on the following elements:

• 1.

  A conceptual approach to the integration of processes that make up the organization's innovation activity.

• 2.

  The conceptual foundations of business-specific kinds of management analysis used for the study of innovation.

• 3.

  The concept of the Balanced Scorecard (its innovation component)

Let us take a brief look at each of them.

Under the current conditions, innovation activity is seen as a process that ensures market success thanks to the transformation of the results of scientific and technical achievements and research into new or improved kinds of goods (works, services) and technologies. What is positive about this approach is that it implicitly reflects the process of the creation of innovations and implies that companies that generate innovations may use them. However, the idea that improved products and technologies can be considered an innovation is disputable.

Innovation is more effective if it is implemented as the main kind of activity by specialized organizations engaged in the development of new products for sale in the innovation market. However, in practice, a wide range of non-specialized organizations tend to develop new technologies for the production of standard goods using insourcing.

We define innovation is the process of finding and using scientific and technical achievements with the help of R&D efforts which make it possible to create and introduce innovations that result in certain effects inside the company and/or in the domestic and/or foreign market.