Applied Innovation Methodology: A Proposal for a Dynamic Sustainable Environment for the Generation of Innovation and Knowledge Management Practices in SMEs

In our current competitive environment, new elements should be introduced to increase the balance in three different areas: the commercial and economic dimension, the demographic movements, and the new technological scenarios. Innovation is not implemented in isolation, depending on the analysis, understanding, and satisfaction of specific needs of each client according to the environment, sector, products, and knowledge management. A good concept related to innovation is the one which fulfills the mentioned needs in order to achieve an optimized final result. In this order of alignments, the process of conceptualization and the conception of an idea into a concept or prototype and then into a product or service with the required specifications are defined by the whole development process. It is important to outline that the knowledge life cycle in any organization has a specific expiry date, and thus it is important through knowledge to develop adaptation strategies and methodologies in the company as a response to change in its environment. Therefore, the company should pursue the ultimate goal of innovation in order to transform itself into a more competitive entity. In this paper the authors describe how an SME (small and medium enterprise) could complement the knowledge and dynamic capability management of the client with a strategic point of view and the ability to overcome any inconvenient challenge or problem. To perform this task, a new model called Applied Innovation Methodology was proposed, in order to create dynamic and sustainable new opportunities and to enhance the best practices of innovation and knowledge management within these kinds of organizations.