Department of Management Studies

Jagannath University, Dhaka

Assignment on:
01. Green Human Resource Management
02. Innovation Management

Course Title: Contemporary Issues in HRM

Course Code: HRM-5102
Program: Master of Business Administration (MBA)

Submitted to:
Md. Shawfiqul Islam
Assistant Professor
Department of Management Studies
Jagannath University, Dhaka–1100

Submission Date: 01/02/2024

 List of Contributors

MBA 1st Semester 14th Batch Section: B Session:2018-2019

S/N Name ID Image

01 Apu Roy B180202126

02 Shuvo Dey B180202130

03 MD. Saidul Islam Babu B170202135

04 Iram Sultana B180202150

05 Navila Jafrin Purba B170202056

06 Shanta Khatun B180202108

 Assignment-01: Green Human Resource Management

Question-01: Define Green Human Resource Management with Citation and

Examples.

Answer to the question-01:

Here are some definitions of green human resource management with citations:

Definition Citation
“ A new approach to the realization of the HR function, the nature Bombiak and
of which is to include ecological objectives in all HRM sub-areas, Marciniuk- Kluska
from employment planning, through recruitment, selection, 2018, p. 5 [43]
employeemotivation and development, to their evaluation and
influence on working conditions.”
“Systemic,planned alignment of typical human resource Jabbour,2013,pp.147-
management practices with the organizational goals”. 148[67]
“Links between HRM and environmental management”. Jackshon, Renwick,
Jabbour and Muller
Camen, 2011, p.101
[68]
“The involvement of HR policies and procedures towards the Jain and D’lima, 2018,
broader corporate ecological agenda of protection and conservation p.201 [59]
of natural assets”.
“Green HR refers to using every employee touch point/interface to Mandip, 2012, p. 244
promote sustainable practices and increase employee awareness and [69]
commitments on the issues of sustainability. It involves undertaking
environment friendly HR initiatives resulting in greater efficiencies,
lower costs and better employee engagement and retention which in
turn, help organizations to reduce employee carbon footprints by the
likes of electronic filing, car-sharing, teleconferencing and virtual
interviews, recycling, telecommuting, online training, energy-
efficient office spaces etc.
“Concerned with planet-related matters such as green roles of Opatha (2019)
employee, green HRM functions, green attitude and behavior, and
green performance of job”.
 “Green human resource management refers to a set of HRM Shen,Dumont and
practices that organizations adopt to improve employee workplace Deng,2018,p1[44]
Green performance”.
“Green HRM can be defined as the portion of the sustainable HRM Yusoff,Nejati,kee and
that engages with the requirements associated with environmental Armn,2018,p.3[75]
sustainability”.
“The use of HR policies ,philosophies and practices to promote Zoogah,2011,p.118[65]
sustainable use of resources and prevent harm arising from
environmental concern within business organizations”.

Examples
• Having employees use public transportation
• Encouraging remote working
• Conducting energy audits
• Going paperless
• Using recycled materials
• Incorporating sustainability considerations into employee training programs etc.

Question-02: What Are the Characteristics of Green HRM?

Answer to the question-02:

Here are some key Characteristics of Green HRM:

➢ GHRM is a domain of HRM.
➢ It is the result of integration of environmental management into HRM.
➢ It includes greening of HRM functions.
➢ It is a system of transforming normal employees in an organization into green employees.
➢ It is for the benefit of the individual, society, natural environment, and the business.
➢ It has policies, procedures, and practices which influence greening of employees.
➢ It focuses on protection and enhancement of the natural environment through managing
people at work.
➢ It applies policies to support ecology.
➢ It applies policies to promote sustainable use of organizational resources.
➢ Its concern is with planet-related matters such as green roles of employee, green HRM
functions, green attitude and behavior, and green performance of job.
Question-03: What are the Objectives/ Necessities/ Importance of
Implementing Green HRM?

Answer to the question-03:

The objectives of implementing Green Human Resource Management (HRM) revolve around
integrating environmental sustainability principles into HR practices. This aims to the following
aspects:

1. Environmental Compliance: Ensure adherence to environmental laws and regulations in HR

policies and procedures.
2. Reducing Carbon Footprint: Implement practices that contribute to the organization's efforts
in reducing its overall carbon footprint.
3. Employee Awareness: Foster awareness among employees about environmentally friendly
practices and encourage their participation in sustainability initiatives.
4. Resource Conservation: Optimize the use of resources, such as energy and water, through
efficient HR practices and policies.
5. Green Training and Development: Incorporate environmental education and training
programs to enhance employees' knowledge about sustainable practices.
6. Green Supply Chain: Collaborate with suppliers and vendors who follow environmentally
responsible practices, contributing to a sustainable supply chain.
7. Innovation for Sustainability: Encourage innovation in HR processes to find and implement
environmentally friendly solutions within the organization.
8. Corporate Social Responsibility (CSR): Align HR practices with the organization's CSR
goals, emphasizing environmental responsibility.
9. Cost Savings: Implement green initiatives that lead to cost savings in areas like energy
consumption, waste management, and resource utilization.
10. Enhancing Corporate Reputation: Contribute to building a positive corporate image by
showcasing the organization's commitment to environmental sustainability through HR
practices.

These objectives collectively contribute to creating an eco-friendly workplace, aligning business

operations with environmental goals, and promoting a culture of responsibility toward the planet.
Question-04: Differences between Human Resource Management and Green
Human Resource Management.
Answer to the question-04:
Human Resource Management (HRM) and Green Human Resource Management (Green HRM)
are both crucial aspects of managing the workforce in any organization, but they have different
focuses and objectives. Here's a comparison of the two:

Dimensions HRM Green HRM

Meaning HRM refers to the strategic approach Green Human Resources Management
to the effective and efficient (GHRM) refers a set of policies, practices,
management of people in an and systems that stimulate the green behavior
organization. of a company’s employees in order to create
an environmentally sensitive, resource-
efficient, and socially responsible
organization.
Focus and It aims to help the business gain a It aims to develop policies and practices that
objective competitive advantage and involves a promote sustainable use of resources within
range of activities related to the the organization and reduce its
workforce. environmental impact.
Scope of The scope of HRM practices is The scope of Green HRM extends beyond
Practices primarily centered around the effective traditional practices to include
management of human resources to environmentally-friendly initiatives.
enhance organizational performance,
employee satisfaction, and legal
compliance.
Organizational The impact of HRM is predominantly Green HRM impacts not only the internal
impact on organizational performance, organizational environment but also
employee engagement, and contributes to the broader external goal of
compliance with labor laws. environmental sustainability.
Strategic Traditional HRM is seen as a key Green HRM is increasingly gaining strategic
Importance strategic function for managing people importance as businesses recognize the need
and is integral to achieving business to be environmentally responsible.
success.
Goal The main goal of HRM is to maximize The main goal of Green HRM is to contribute
the productivity of an organization by to the sustainability of the business while
optimizing the effectiveness of its reducing its environmental footprint,
employees. alongside achieving traditional HR
objectives.
Question-05: What Are the Challenges of Implementing Green HRM in
Bangladesh and Worldwide?

Answer to the question-05:

Implementing Green Human Resource Management (Green HRM) presents several challenges,
both in specific contexts like Bangladesh and worldwide. These challenges stem from various
factors. Here's an overview of some of the key challenges:

1. Initial Investment
Implementing Green HRM in Bangladesh or Worldwide often requires initial investment, such as
in training, green technologies, and sustainable facilities. Some organizations may see this as a
financial burden.

2. Technological Challenges
Access to and adoption of green technologies can be a challenge, especially for smaller
organizations. There might be limited access to advanced green technologies, and the cost of such
technologies can be prohibitive.

3. Lack of Knowledge Regarding Green HRM

There is often a gap in skills and knowledge regarding sustainable practices and how to implement
them effectively in the workplace. The skills gap can be more pronounced, with a need for
extensive training and education in environmental management and sustainable practices.

4. Short-term Focus vs. Long-term Sustainability

Many organizations tend to focus on short-term financial performance rather than long-term
sustainability goals.

5. Resistance to Change
Resistance from employees and management may occur due to a traditional mindset and reluctance
to embrace new practices. Changes cannot be accepted eassily between human being.

6. Policy and Regulatory Challenges

Weak environmental regulations or lack of enforcement may discourage organizations from
adopting Green HRM practices.
7. Resource Constrains
Limited resources, both financial and technical, may pose challenges in implementing
environmentally friendly initiatives in Bangladesh.

8. Lack of Government Policies and Incentives

In many countries, including Bangladesh, there might be a lack of supportive government policies,
regulations, and incentives to encourage organizations to adopt Green HRM practices.

Overcoming these challenges requires a multifaceted approach, including leadership commitment,

employee engagement, government support, and a culture that values sustainability. Additionally,
highlighting the long-term benefits of Green HRM, such as cost savings, improved brand image,
and compliance with regulations, can help in garnering support for these initiatives.
 Assignment-02: Innovation Management

Question-01: Define Innovation Management with Example.

Answer to the question-01:

Innovation Management
Innovation Management involves the systematic process of generating, implementing, and
overseeing creative ideas to drive organizational growth and success. It encompasses activities
such as idea generation, product development, and the establishment of a culture that fosters
continuous improvement and adaptation.

Realistic Example:
Company X, a technology firm, implements innovation management to stay competitive in the
rapidly evolving market.

[Link] Generation: Company X establishes platforms and forums for employees to share
innovative ideas.

2. Screening and Evaluation: The innovation management team evaluates the feasibility and
potential impact of each idea.

3. Prototype Development: Once a promising idea is identified, the company develops a prototype
or proof of concept. For instance, if the idea is for a new software feature, the development team
creates a prototype

4. Testing and Iteration: The prototype undergoes testing to gather user feedback and identify areas
for improvement.

5. Implementation: Upon successful testing and iteration, the innovation is integrated into the
company's product or service offerings. This could involve updating existing products, launching
new features, or introducing entirely new solutions to the market.

6. Employee Recognition: Company X acknowledges and rewards employees who contribute

innovative ideas.
7. Continuous Improvement Culture: Innovation management becomes ingrained in the company
culture. Employees are encouraged to embrace change, adapt to new technologies, and actively
participate in the innovation process.

8. Monitoring and Adaptation: Company X continually monitors market trends, customer

feedback, and technological advancements.

In this example, innovation management enables Company X to consistently introduce new and
improved products, respond to changing market demands, and foster a culture of creativity and
adaptability among its employees.

Question-02: Differentiate between Invention and Innovation.

Answer to the question-02:

Invention Versus Innovation.
Invention and Innovation are related concepts but differ in their nature and impact on the market
or society. Here's a breakdown of the key differences between invention and innovation:

Basis for Comparison Invention Innovation

Invention refers to the Innovation implies the

Meaning occurrence of an idea for a implementation of idea for
product or process that has product or process for the very
never been made before. first time.

What is it? Creation of a new product. Adding value to something

already existing.

Concept An original idea and its Practical implementation of

working in theory. new idea.

Scientific skills. Set of marketing, technical

Skills required
and strategic skills.
 New idea strikes a scientist. A need is felt for a product or
Occurs when improvement in existing
product.

Single product or process. Combination of various

Concerned with
products and process.

Limited to R & D department Spread across the

Activities
organization.

Question-03: What are the Benefits of Innovation and Barriers to Innovation?

Answer to the question-03:

Benefits of Innovation
Innovation provides a multitude of benefits that contribute to the growth, competitiveness, and
sustainability of a business. Here are several key benefits of innovation for organizations:

1. Solving problems: Most ideas are actually derived from attempts to solve existing problems.
As such, when you encourage innovation, you are opening doors for solutions to problems
both within and outside your company. If your business provides services, you might realize
that your customer does not have an avenue to share their opinions, complaints, and
compliments. The only avenue available could be the physical office. So, to solve the problem,
you could decide to operate a virtual office where customers’ needs can be attended to within
a short time. The customers will be happy and as a result, your sales will go higher.

2. Adapting to change: This is especially evident in the technological world where there are
rapid changes defining the business. Change is inevitable and innovation is the method to not
only keep your business afloat, but also ensure that it remains relevant and profitable. With the
rise in mobile phones, traditional telephone had to find ways to remain relevant. Same case
with your business, when you develop an innovation culture, you remain relevant at all times.

3. Maximizing on globalization: With markets all over the world becoming more interlinked,
greater opportunities are emerging in these new markets and with that, new needs and
challenges. For instance, China and India are estimated to be the leading markets, and Africa
is predicted to be the next “hot spot”. Therefore, if your company hopes to tap into this market
share, innovation is a must to enable you to capitalize on the opportunities opening up.
4. Facing up the competition: The corporate world is always very competitive, and with many
new companies coming up, the top position in the industry is no longer a reserve of a few. To
retain or establish your company’s cutting edge, you can compete strategically by having a
dynamic business that is able to make strategic and innovative moves and thus cut above the
rest.

5. Evolving workplace dynamics: The demographics in the work place are constantly changing.
With the new generation that has entered the market place; new trends are also coming up.
Innovation is therefore critical to ensure the smooth running of the company.

6. Customers’ changing tastes and preferences: The current customer has a great variety of
products and services available to him and is well informed of his choices than before. The
company must therefore keep itself abreast with these evolving tastes and also forge new ways
of satisfying the customer.

Barriers to Innovation
Certainly, while innovation brings numerous benefits, organizations often face
various barriers that can impede the process. These barriers can vary based on
industry, organizational culture, and external factors. Here are some common
barriers to innovation:
1. Lack of a shared vision, purpose and/or strategy
2. Short-term thinking/focus
3. Lack of time, resources or staff
4. Lack of “spec time” to develop new ideas and opportunities
5. Innovation not articulated as a company-wide commitment
6. Lack of ownership by senior leaders
7. Leadership expects payoff sooner than is realistic
8. Lack of a systematic innovation process
9. Management incentives are not structured to reward innovation
10. No reward and recognition programs
11. Constantly shifting priorities
12. Belief that innovation is inherently risky
13. Internal process focus rather than external customer focus
14. Inadequate understanding of customers
15. Focus on successes of the past rather than the challenges of the future
16. Unwillingness to change in the absence of a burning platform
17. Unwillingness to acknowledge and learn from past “failures”
18. Politics – efforts to sustain the status quo to support entrenched interests
19. Rewarding crisis management rather than crisis prevention
20. Hierarchy – over-management and review of new ideas
21. Micromanagement
22. Under-funding of new ideas in the name of sustaining current efforts
23. Fear that criticizing current practices and commitments is a high-risk activity
24. Risk aversion
25. Addiction to left-brained, analytical thinking
26. Absence of user-friendly idea management processes
27. Innovation not part of the performance review process
28. Lack of skillful brainstorm facilitation
29. No creative thinking training
Question-04: What Are the Types of Innovation and Process of Innovation?
Answer to the question-04:

Types of Innovation
Innovation can take various forms, and different types of innovation serve different purposes and
bring different benefits. Here are the key types of innovation:
[Link] Innovation.
[Link] Innovation.
[Link] Model Innovation.
[Link] Innovation.
[Link] Innovation.
[Link] Innovation.
[Link] Innovation.
[Link] Innovation.
[Link] Innovation.
[Link] Innovation.
[Link] Innovation.
[Link] Innovation.

Now the details are given as follows:

01. Product Innovation: Product innovation involves developing new or improved products or
services. It can include innovations in functionality, features, design, performance, or
packaging. It aims to create value for customers by addressing their needs, solving problems
or introducing novel and desirable offerings.
02. Process Innovation: Process innovation focuses on improving the efficiency, effectiveness or
quality of internal processes within an organisation. It involves rethinking and redesigning
workflows, technologies and systems to streamline operations, reduce costs, enhance
productivity or improve the delivery of products or services. Process innovation often leads to
increased operational efficiency and competitive advantage.
03. Business Model Innovation: Business model innovation involves rethinking and redesigning
the fundamental ways in which an organization creates, delivers and captures value. It explores
new approaches to revenue generation, cost structure, distribution channels, partnerships,
customer engagement or value proposition. Business model innovation can disrupt industries,
create new markets or enable organizations to differentiate themselves from competitors.
04. Service Innovation: Service innovation involves developing new or improved services,
delivery methods or customer experience. It focuses on enhancing the value and satisfaction
customers derive from service [Link] innovation can include innovations in
service design, customization, accessibility, convenience or personalization. It aims to meet
evolving customer expectations and create a competitive edge.
05. Incremental Innovation: Incremental innovation refers to small, gradual improvements made
to existing products, services or processes. It involves making iterative changes, optimizations
or enhancements to existing offerings. Incremental innovation is often characterized by a focus
on continuous improvement, efficiency gains or evolutionary advancements. It can help
organization stay competitive, maintain market relevance and refine their offerings over time.
06. Disruptive Innovation: Disruptive innovation refers to the creation of new products, services
or business models that disrupt existing markets or industries. It introduces novel solutions that
fundamentally change the way value is created, delivered or consumed. Disruptive innovations
often start in niche markets or with underserved customers and they gradually gain traction
and displace established players.
07. Open Innovation: Open innovation involves collaborating with external partners, such as
customers, suppliers, research institutions, or startups, to generate new ideas, share knowledge,
or co-operate innovative solutions. Open innovation recognizes that valuable ideas and
expertise exist beyond an organizations boundary and seeks to leverage external resources and
insights to drive innovation.
08. Sustainable Innovation: Sustainable innovation is the process of developing and
implementing new products, services, Technologies or business models that have a positive
environmental, social and economic impact. It involves finding creative and efficient solutions
to address pressing challenges, such as climate change, resource depletion, pollution,
inequality and poverty.
09. Social Innovation: Social innovation is the development and implementation of novel
solutions to address social, cultural, economic or environmental challenges. It involves the
creation and adoption of new ideas, products, services or approaches that result in positive
societal impact and sustainable change.
10. Digital Innovation: Digital innovation refers to the application of digital technologies and
advancements to create new or improved products, services, proceeses or business models. It
involves leveraging digital tools, platforms, data and connectivity to drive innovation and
transform traditional practices.
11. Technology Innovation: Technology innovation refers to the creation, adoption and
utilization of new or improved technologies to drive progress and improve outcomes in various
domains. It encompasses advancements across a wide range of technological fields, including
 but not limited to information technology, biotechnology, renewable energy, nanotechnology,
robotics, materials science and telecommunications.
12. Computing Innovation: Computing innovation pertains to advancements and breakthroughs in
the field of computing and information technology. It involves the development and
application of new hardware, software, algorithms and computational approaches to solve
complex problems, enable new capabilities or improve existing systems.

Furthermore, any of the above types of innovation can be approached through continuous
innovation or discontinuous innovation:

1. Continuous Innovation: Continuius innovation refers to incremental imprisonments or

enhancements made to existing products, services, processes or business models. It involves
making small, gradual changes over time to refine and optimize existing offerings. Continuous
innovation aims to improve efficiency, quality or user experience without fundamentally
altering the underlying concept or value proposition. It is often driven by feedback from
customers, market insights and the organizations desire to stay competitive. Continuous
innovation helps organizations maintain their market position, meet evolving customer
expectations and sustain long-term growth.

2. Discontinuous Innovation: Discontinuous innovation, also known as radical or disruptive

innovation, involves introducing significant and transformative changes that disrupt existing
markets, business models or ways of doing things. It represents a departure from the existing
norms and practices and often involves the introduction of entirely new products, services,
technologies or business models. Discontinuous innovation can create new market segments,
open up new possibilities and challenge established players. It is characterized by a higher
level of risk, uncertainty and potential rewards. Discontinuous innovation is driven by
identifying and capitalizing on emerging trends, technological advancements or changing
customer needs.

These types of innovation and the two approaches are not necessarily mutually exclusive and
organizations often engage in multiple types simultaneously to create a comprehensive innovation
strategy. The choice of which type and approach to pursue depends on the organizations goals,
industry dynamics, customer needs and the potential for value creation and differentiation.
The Process of Innovation

The innovation process

topically involves a series of
key steps that organizations
follow to foster and implement
innovation. While specific
approaches may vary, here are
the common steps involved in
the innovation process:

Step 1: Identify Opportunities

The first step is to identify opportunities for innovation. This can be done through market
research, customer insights, trend analysis or internal assessments. The goal is to uncover
unmet needs, emerging trends or areas for improvement that can be addressed through
innovation.

Step 2: Generate Ideas

Once opportunities are identified, the next step is to generate ideas. This can be done
through brainstorming sessions, idea competitions, customer feedback or cross functional
collaboration. The aim is to generate a wide range of creative and innovative ideas that
have the potential to address the identified opportunities.

Step 3. Evaluate and Select Ideas

After ideation, the next step is to evaluate and select the most promising ones. This involves
assessing the feasibility, viability and desirability of each [Link] factors such as
market potential, technical feasibility, resource requirements, alignment with strategic
goals and potential impact. The goal is to identify the ideas that are worth pursuing further.

Step 4. Develop and Prototype

Once ideas are selected, they can be further developed and prototyped. This involves
translating the selected ideas into tangible prototypes, mock-ups, or minimum viable
products (MVPs). The aim is to test and validate the concepts, gather feedback, and refine
the ideas based on customer insights and technical feasibility.
Step 5. Test and Iterate
In this step, the prototypes or MVPs are tested with users or in real-world scenarios.
Customer feedback is collected, and the concepts are iterated and refined based on the
insights gained. This iterative process helps to validate assumptions, uncover potential
issues, and improve the innovation before moving to the next stage.

Step 6. Implement and Scale

Once the innovation has been tested and refined, it can be implemented and scaled up. This
involves developing a detailed implementation plan, allocating resources, and executing
the necessary actions to bring the innovation to market or implement it within the
organization. The goal is to ensure a smooth transition from the development phase to full-
scale implementation.

Step 7. Monitor and Evaluate

After implementation, it is important to monitor and evaluate the performance and impact
of the innovation. This involves tracking key metrics and performance indicators to assess
the success of the innovation. Regular evaluation helps identify areas for improvement,
make necessary adjustments, and capture learnings for future innovation initiatives.

Innovation is an ongoing process, and organizations should foster a culture of innovation. This
involves capturing feedback, promoting learning from both successes and failures and
continuously seeking new opportunities for innovation. Regularly revisiting and refining the
innovation process itself is also essential to optimize the organization’s ability to innovate
effectively.
Question-05: What are the Challenges in implementing Innovation
management in Human Resource Management in Bangladesh and World
Wide?
Answer to the question-05:

Challenges in implementing Innovation management in Human Resource

Management in Bangladesh.

Bangladesh faces some challenges in implementing innovation management in Human Resource

Management, those are as follows:
1. Lack of resources: Innovation is expensive in terms of money, time and energy. Business
firms in Bangladesh do not have sufficient money to fund innovation program. The BCSIR
makes an investment of US$5,00,000(4crores BDT) only for making R & [Link] investment
in knowledge creation is a critical factor inhabiting innovation.

2. Organizational politics: Organizational politics is a reality. It can't be avoided. But too much
politics hinders innovation. Many managers and employees in Bangladesh have a tendency to
maintain status quo and they try hard to resist change for own interests.

3. Managers are not receptive to new ideas: Many managers are not open to new ideas.
Employees are less interested in generating new ideas because of manager's negligence and
apathy.

4. Risk aversion is the norm: We penalize mistakes. Without failure, there is no innovation.
Employees are adhering to rules and regulations. They are reluctant to make changes due to
fear of losing jobs and punishment.

5. Unfavorable Corporate Culture: Culture of innovation is the drive to the formal and
established rules of doing business. The main cultural reasons for innovation failure identified
by respondents are a) absence of formal management framework and system, b) nonexistence
of cross disciplinary resources, c) absence of intelligence driven options, d) lack of proper
measurement criteria (Feldman,1988).

6. Defective Education System: The quality of education has tremendous effect on the degree
of innovation. Our ability to innovate is at risk due to the country’s lackluster education system.
The breakdown of education system kills creative ability of students.

7. Too much bureaucracy: Most of our country's organisation specially in public sector
organisation if found to be very rigid and bureaucratic. Managers, especially HR managers and
 HR professionals need to be empowered to do things differently if they are going to be relevant
in driving innovation and to have an impact on the war for top talent from recruiting to
developing.

8. Role of HR managers in innovation: In many organisations of Bangladesh, the role of HR

manager is often undermined and neglected. Decision making power is highly centralized. Top
management does not have trust in potentiality of employees. Top management does not have
tolerance for mistakes.

Worldwide Challenges in implementing Innovation management in Human

Resource Management.

Implementing innovation management in Human Resource Management (HRM) globally can be

challenging due to various factors. Here are some worldwide challenges that organizations may
face in this context:

1. Innovation culture: Innovation culture represents an organization's mindset and practices that
foster innovative thinking, fueling creativity and openness to new methods. This enhances the
development and quality of new products and services. However, fostering such a culture is
challenging, requiring a shift in operations to empower employee collaboration, idea-sharing,
and risk-taking, alongside a commitment to invest in innovation and view failures as learning
opportunities.

2. Sustainable innovation: Sustainable innovation is pivotal for addressing environmental,

social, and governance (ESG) issues. It involves innovating in ways that not only benefit the
business but also positively impact people and the planet. However, aligning innovation with
sustainability goals can be complex, given the breadth of aspects like greenhouse gas reduction,
energy efficiency, and social equality.

3. Intrapreneurship: Intrapreneurship, fostering entrepreneurial skills and mindsets within an

existing organization, is vital for driving innovation from within. It encourages employees to
develop and pursue new ideas, contributing to the company's growth and adaptability. But
often, due to potential conflicts with the company’s existing culture, structure, and risk
tolerance, significant organizational shifts are needed to nurture and sustain intrapreneurial
efforts.

4. Digital transformation: Digital transformation is a persistent challenge that goes beyond the
demand for a well-informed technology strategy (more on that in no. 9). It involves a fundamental
shift in business processes and models, affecting both internal operations and customer
engagement. This transformation demands a holistic approach, integrating systematic planning and
ongoing adaptability, to effectively leverage digital advancements for business growth and
customer satisfaction.

5. Future scenarios: Future scenarios are essential in innovation for visualizing potential
futures, enabling organizations to foresee changes, spot emerging opportunities, and minimize
risks. This foresight is key to proactive innovation and staying ahead of market trends. However,
the unpredictable nature of the future makes scenario planning and strategic foresight
challenging, requiring a blend of creativity, analytical thinking, and, increasingly, the power of
artificial intelligence (AI).

6. Business model innovation: Over the last half-century, the lifespan of the average business
model has declined from 15 years to under five. Business model innovation—redefining how
companies create and deliver value to customers—has come into the focus as a way to drive
transformation, growth, and resilience. However, fundamentally changing value propositions or
operating models for the better without jeopardizing core business represents a major challenge
for many companies.

7. Open innovation: Despite gaining popularity in the 2000s and being well-recognized as an
effective method for enhancing the diversity, number, and success of innovations, open
innovation is still cited as a significant challenge in many companies. Indeed, the challenge is
less because of buy-in or understanding the benefits of open innovation and more about the
execution. Adopting open innovation increases complexity and, when not managed
systematically, securely, and with clear goals, can increase risk and waste resources.

8. Customer centricity: It’s obvious: put your customer at the core of your innovation activities.
And yet, when innovations fail—and indeed, a vast majority do—it is often due to a lack of
market research and consumer insights. Essentially, many companies launch new products or
services for which there is no market, no customer demand.

9. Emerging technologies: The challenge of managing emerging technologies lies in swiftly

identifying, investing in, and integrating new technological advancements into existing business
models and processes. This challenge is exemplified by the concept of Martec’s Law. It describes
a conundrum where technology changes exponentially while organizations change
logarithmically. Essentially, the world is changing faster than most companies are equipped to
keep up with.

10. AI integration: Finally, the most buzz-worthy challenge on this list: integrating AI into
business operations and innovation processes. The emergence of the AI application layer and
meteoric rise of GenAI are rapidly transforming all industries. But for many companies, jumping
on the proverbial bandwagon when it comes to hyped-up technologies can lead to poorly
executed projects and minimal returns on investment. Gartner predicts that by 2025, growth in
90% of GenAI deployments at the enterprise level will slow as the costs of implementation
exceed value creation.