Successful Innovation Management System or Serendipity?

by Edward J. Fern, Vladimir Liberzon

To be successful in innovation management, companies must establish a corporate culture that motivates project teams to maximize potential business benefits of project success and minimize potential negative impacts of project failure. Managing innovation is inherently risky. Many uncertainties about future events arise from both internal and external sources. Active risk management (ARM) recognizes that these uncertainties can be either threats or opportunities, and ARM endeavors to position the enterprise so that it enjoys most of the benefits of opportunity while avoiding most of the pain associated with threats.