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A revised process model with an integrated management control system in the front-end of radical innovation

Pijffers, M.L. (2014) A revised process model with an integrated management control system in the front-end of radical innovation.

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Abstract:This study considers how a management control system could be designed and used in the front-end of radical innovation to build an appropriate business case. The front-end of innovation provides relatively great and cheap iteration opportunities for organizations that have the need to build a total innovation process that is efficient and effective. Objective in the front-end is to find an affordable, appropriate, viable and worthwhile innovation (within the boundary of acceptable risk) based on useful information and strategic decisions. The triggers of proposing the revised model are the difficulty that managers perceive in managing the tension between empowerment and control in the front-end and shortcomings found in widely applied project management and Stage-Gate ®. The iterative process model, based on the required business case information aspects, with an integrated management control system aims to show and explain how to best shape, divide and control the front-end process to possibly lower the fuzziness and resolving identified shortcomings. Recognized in the model are the two different levels in a front-end process: the strategic and project actor. A management control system in this sense lets the two levels of control come and work together to control and direct front-end activities and decisions in the project towards the best interest of the organization and fulfill long-term strategic objectives. Simons’ LOC model gives substance to the management control system with a belief, boundary, diagnostic and interactive aspect. Basic principles of the model are customer-driven, strategic foresights as starting point, emphasis on iteration/learning and an appropriate business case including a risk analysis. The model has not been tested and has no predictive value for innovation processes, but should be seen as a suggestion for or assistance in practice to be in control of appropriate control in the front-end of radical innovation.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/65285
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