How to make a company or organization innovate
Innovation can be defined as the successful production, exploitation of then novelty, and full assimilation in the economic and social spheres.Innovation can also be described as the establishment of new methods of production, distribution, and supply of products that are being produced by the company. The introduction of changes in a given management, work organization, skills of the workforce and the general working conditions can also be termed as innovations.Through innovations, an organization is able to come up with new products of processes that they can use to make profits. The process of innovation involves opportunity identification, invention to development, production, marketing and prototyping to achieve the new product.Most of the innovations focus on how a firm delivers value and make profits as per the company mission and vision. Innovation is of high importance to Canada Server Company, if alliances are needed, what is to be done about research and development and how innovation affects the economy among others.
Importance of innovation
Innovation is very important to the organization as it helps in several ways. Innovation is needed in opening new markets for the organization that they will use to supply their products to their customers. In the case of Canada Server and Computer Manufacturing Company, more jobs are created through the constant innovative ways of the company. The company competitiveness depends on its own capacity to innovate and upgrade its own status to a better level and will be required to change its business environment and shortening of products life cycle and services will be controlled. The company needs to be innovative to be best in shifting its emphasis from a decaying industrial economy to a knowledge based entrepreneurial economy that is driven by innovative technology (Tidd&Bessant,2014).Due to many innovations in the company, it will be able to face the changing market place, be productive, be innovative, be knowledge based workforce and face the global environment with great consistency.
Innovations would be important to the company by enabling it to come up with efficient and effective ways to make their products. The company will gain high reputation due to improved quality in thecomputer products they manufacture; thus, they stand to benefit from improved costs of their PCs. Due to improved innovations that will lead to quality PC productions, competition will be reduced due to enhanced brand image of the company. This implies that the companies that were competing with the Canadian Server will find it tougher to beat them.Due to mass production of PCs that will be experienced, there will be less differentiation of productsthat will comprise of a more formal structure in the production unit of the company. Innovations will facilitate standardization of products leading to improved sales to the company up to 10 times higher on their former sales.Due to clear balancing, the innovation approach the company will find it smooth to succeed in its endeavours. Through the combination of the integration process and supportive culture, Canada Server Company will be in a better position to have a reputable competitive advantage. Use of the latest technology will help the company to unleash its creative energy and increase its productivity levels. The company’s infrastructure will be changed, human resource will work effectively and the procurement services will as well be well facilitated.
Implementation of an innovation strategy for the firm
Implementing innovation in a company is very critical to the success of the company. In the implementation of an innovation in the firm, the management should be sensitive tothe people they deal with. The people working in the company have to becreative to bring many innovations and be sensitive to changes in their surroundings as this is very crucial in implementing the innovations.They have to be optimistic, be entrepreneurial minded people who can focus on the future and the past failures. The management should advocate for the right culture, be an incentive to innovations, and have the right leaders to implement the innovation strategy. The resources to make the implementation to take placetogether with the right technology should be well advocated for.
Innovation and intellectual property rights
Since innovation is related with the discoveries of new ideas and concepts, the intellectual property rights can be used successfully to facilitate innovation. If the intellectually property rights are used successfully, the innovative property technologies stand a better chance of being commercialised without being misused by unscrupulous dealers. Intellectual property provides an access to financing and technical facilities that are needed by companies in addition to providing a strong negotiation position in entering and maintaining partnerships.
Effects of innovation in the economy
Innovation has a positive impact to the company and to the overall economy of a place. Through innovation, more goods and services are created and this increases the overall economic output. Innovation also affects the economy in that the government will be able to effect tax rates on the goods produced. Innovations come as a result of hard work that is well planned and clearly executed and this is the reason as to why the economy will definitely be improved from the hard of the employees.Innovation comes as a result of work that is impacted in the company resulting in high sales,improved economy of the country and the improved living standards to employees.
Importance of innovations on R&D (Research and Development)
New ways have resulted from the great research and developmentworks that are now going on in the company. There is a need to look for commercial use of the new impulses that will result from research and development matters. New markets will be developed for conceptually different computer products in the company.
Alliance formation or Buy Technology
Canada server will need to form alliance with other similar companies operating under the same field. Buying technology will be very expensive and it may affect the financial performance of the company. Apart from financial considerations, alliance will help them to reduce competition and even beat their competitors through pooling of their resources towards achieving a common set of objectives. This will enable the company to meet its critical needs while remaining independent entity(Tidd&Bessant, 2014). There will be sharing of products, procedures, services and processes once an alliance is formed.Some developments will be bound to take place and they will involve the study of the alliance feasibility, rationale and objectives while focussing on any major issues of concern, challenges and how the alliance will be developed. The company will have to analyse the potentiality of its partner, strengths and weakness and make conclusions on how to accommodate partner management styles.The company needs to form an alliance to easily address the senior management in finding the required resources to better the company performance through innovations.
Formation of the alliance will lead to increased innovation that will come from both parties and once the objectives of alliance formation have been met, both the companies will stand to benefit. It’s better to form an alliance than to buy technology because; the process of buying technology is very expensive but formation of an alliance involves two companies merging and having a chance to concentrate on activities that best matches their capabilities.They will therefore be able to learn from their partners and develop competencies that might be exploited in other places.The formation of alliances will ensure an adequate availability of the company’s resources for its survival and this will boost its performance. The risk of investment will now be shared between the two companies and this will increase chances of survival of the newly formed alliance.Formation of an alliancewill be very advantageous whereby; serving of national customers will now be cheaper.The alliance will ensure that national customers are well served because information sharing will be improved as well as sales accounts and raw materials supply. This will ensure that there is a consistency in customer satisfaction and retaining and acquiring of new customers will be increased.The alliances have a global scope and this entails a high level of trust between the two companies in management in order to overcome obstacles in the industry together(Tidd&Bessant, 2014). Alliances are useful in stopping of new competitors to mean that an agreement is made between two main competitors to stop another competitor from entering into the industry or from its new strategy.An alliancewill guarantee the right people to be involved in attending a workshop and help in saving time and money to unnecessary people. Risks will be reduced, leading to a doubling of sales made by the company and increased profitability. Both alliances will benefit whereby, one company will have a good distribution of its products while the other will produce products that do not compete with the existing products.Another type of benefits that the company will obtain from an alliance formation will be reduced inventory investment, improved profit margins, reduction of purchasing staff, reduction in out of stock, improved service level, and a well reduced vendor base.
Consideration of an open innovation
Canada Server Company should consider open innovation because it contributes to alow risk growth strategy while focusing on selling of existing goods in then existing markets. Open innovations will focus on products and markets that the company is familiar with, thusenabling the market research to be localized.The reaction time for all competitors will be made quickly as brand development;merchandising and packaging activities will have taken place.Open innovations will guarantee a safer market penetration and give a room for recoveries to be made, spam/virus filtration and archiving to be conducted for the benefit of their customers. Open innovations will reduce the risks involved and increase the sale of the product in the existing markets. Open innovations help the products that have reached their useful life’s to be revived again. Open innovation will lead to market development through the use of the newly existing channel prices that will be changed and this will come with great appeal. Open innovations ought to be highly impressed because the success of that product inone country doesn’t guarantee its success in the other country. Open innovations will mean that the risk will be spread over several products and the company will familiarize itself with the success of its product in different markets across the globe.Open innovations will help in differentiating their brand from their competitorsand ensure that the associations provided an add value to the company. Moreover, open innovations will give quality products that will influence how people perceive them; hence,ultimately its value.Open innovations will reduce risks to customers, simplify their choices, save search time and improve efficiency in their transactions.The company will experience less costly service, less costly sell off services and be willing to pay higher prices(Tidd&Bessant,2014). Open innovations will lead to improved awareness, identity of the product will be increased, relationship with customers will be on the rise because; they will like the products produced.In addition, open innovation will increase the financial pressure to reduce costs, increase efficiency, competition, and the customer expectations regarding services and products quality from the company.
In conclusion, innovation is the creation of something new, which is valuable to the company, is termed as innovation and this is the reason as to why entrepreneurship needs to incorporate commercialization process and the capacity to involve the right capacity of people. It’s also the establishment of new methods of production, distribution and supply of products that are being produced in the company. Innovations help to bring renewal measures in the organization through the much experimentation carried out. The Canada Server Company should consider open innovation because;they will enjoy a low risk growth strategy while on the other side focus on selling of existing goods in then existing markets. The formation of alliances will ensure an adequate availability of the company’s resources for its survival and this will boost its performance.Innovations would be important whereby; products and services being delivered by then company will be improved through newly improved ones.The advantage of forming an alliance is that the two companies merging will have a chance to concentrate on activities that best match their capabilities.
Tidd, J &Bessant, J. (2014).Strategic Innovation Management.Wiley; 1 edition