Innovation in an Organization
Established businesses have everything;from a comprehensive structure to personnel, and proven techniques that control the functions of the company. However, the stability can lead to an enterprise with a rigid monotony. Creativity or innovation comes in to change the daily activities by introducing new ideas. In an economy that is proving to be vibrant, the aspect of innovation presents one of the surest ways that an organization can achieve and maintain success. This is the recipe I intend to give to Canada Server and Computer Manufacturing Company as they strive to expand their facilities through innovation. This paper will demonstrate the essence of creativity in a company and the ways to achieve it.
According to Geun-Hye (2014), innovation is the procedure of creating something differently or realizing a new outcome. The new aspect must have value, and involves a series of ideation, opportunity identification, production, prototyping, and invention to enhance entrepreneurship. The innovator can create a new process, product, supply source, market, or business organization. Creativity will assist the Computer Companyinrealizingcompetitive edge in highly contested and turbulent environments. For an organizationseeking to broaden its horizon, innovation will help penetrate the international market.
The enterprise needs to understand that national progress is created, and it is not gotten from an inheritance or good luck. The prosperity does not occur due to a firm’s human resource, natural endowments, the economy’s currency value or the theories of classical economists. It develops based on the capacity of the organization to upgrade and innovate. Traditionally, creativity was attributed to the production of new processes or products, but today the concept has broadened to incorporate business models that dictate how the industry secures profits and delivers value.
The phenomenon comes about because of various reasons. One is the current shortening of products and services life cycles. The corporate environment is also rapidly changing in such a way that size does not matter; only those who develop their firms get the biggest share of the market. Businesses are no longer bent on increasing their sizes but on enhancing their technologies to keep up with changing trends. Another procedure of viewing the importance of innovation includes the key drivers that encourage the use of the concept. Companies are faced with the pressure to increase their efficiency, handle a lot of issues with little resources, and reduce their prices, amongst others (Geun-Hye, 2014).
The market is flooding with numerous competitors; hence, a company must strive to create a unique brand for itself. Various industries have the desire to migrate from their home countries to widen their customer base. Strict regulations also motivate a firm to seek innovative measures. Creativity will benefit Canada Computer Company in all the above ways. There are four key ways that the industry can establish the concept of innovation. One is through the use of products or services in a manner they can improve their goods in terms of their use and features. The computer firm can also implement new and distinguished processes to assist in efficient distribution, logistics, and manufacturing.
According to Geun-Hye, (2014), innovation in a company can also occur through different organizational methods that control the external relations and the business’s practices. Finally, the organization can implement new marketing techniques that establish significant enhancements in the design of products, prices, packaging, promotion, and distribution. The process of innovation according to Abernathy Utterback undergoes the fluid, transitional and specific phase. The fluid period is characterized by radical changes, customization, no specific competition, new technological entrants, and an inefficient and flexible process. The transitional phase covers massive process changes, formal structure, and rigid changes that happen in broad steps.
In the specific phase, the company starts making improvements in the quality of their services and products, intense standardization of designs, new technologies and capital efficient procedures. Innovation introduces new creations and makes improvements on the current ones used by a company. The new items or products are known as intellectual property. Once Canada Computer Company identifies the innovations they would like to pursue, it is essential to safeguard the products from illegal use or theft. There are various types of intellectual properties the company can create such as patents that show a level of ingenuity and are not obvious to any layman (Geun-Hye, 2014).
A patent can exist in the form of an apparatus, a product, process or composition. Trademarks represent another form of intellectual property andare regarded as designs or words that make goods and services of the company distinct from all the rest in a market segment. An example of a trademark is a brand use by the firm such as the Toyota mark or name written in automobiles made by the corporation. The Canadian Company needs to brand itself; an important aspect of business. Once the firm decides to register its trademark, they will prove their ownership, prevent infringement, prohibit other companies from adopting it, and license the services and products easily.
According to Geun-Hye, (2014), another example of intellectual property is copyright. It consists of the rights given to a corporation for their originality in artistic, dramatic, literary, and musical work from its inception. A copyright is presumed automatic after an individual, or a company makes an item; however, it is appropriate to make the work or product dated and witnessed. After that, the person or firm should register the object or work, create an articulate mark, and document the details. Other forms of trademarks are industrial designs and integrated circuit topographies used in the current technologies.
The Computer Company should comprehend that not every organization survives the challenges it faces. They should use creativity to maintain flexibility, specialization, and immobility. Some of the best performing firmsaroundthe globe such as Google and Apple are what they are today due to continuous innovation. It is the best weapon to use during harsh times and severe competition. The successful implementation of the aspect requires innovation management. Through a process called open innovation, the firm will adopt a new idea that lacks viability and develop it into a robust strategy. They can commercialize it using joint ventures, spin-offs, and licenses. An exemplary example can be derived from P&G, who developed the Glad Brand and Tidal Care through open innovation. Therefore, the organization can benefit fromopen innovation.
Another example of open innovation management is when Apple and Nike collaborated and produced a shoe that transmits information to an athlete’s phone.Cooperating with various companies to establish a unique idea can boost the Canadian Company’s survival chances. The firm has to develop three paths that are competitor-driven, technology-driven, and customer-driven. Through this, they will be able to meet the unsatisfied wants of the buyers, develop competitive strategies, and create substantial research and development (R&D) methods. R&D is associated with the innovation forces and combines with the market pull. The R&D push identifies the commercial use of new services and products and generates markets for various goods (Geun-Hye, 2014).
Market pull, on the other hand, displays the need for the incremental and continuous innovation of the new impulses. It also looks for the appropriate ways to satisfy the requirements of the consumers and improve the current assets. The present economy demands that a company exercises operational innovation. The company should, therefore, reduce their prices to penetrate new markets. For instance, the Chinese market requires numerous, low-cost goods and services. The company should also converge the products to serve multiple purposes to increase their life cycles. For example, they can create a laptop that can serve as a mobile phone as well.
An effective strategy to implement operational innovation in the server firm is the Lean Six Sigma. It ensures that a company learns the best operational practices that can enhance efficiency and quality. The theory focuses on the innovation of the business model, collaboration, and continuity. The firm should change their organizational culture to provide room for the innovation to take place. The example of Google indicates a corporation that gives its employees a suitable culture that motivates them toembrace innovation. The company should develop a business’s formalitythat contains the values, ideologies, and symbols that the firm shares as they strive to achieve their goals (Geun-Hye, 2014).
A culture is a social power that drives or destroys an organization. After correctly understanding the innovation process, intellectual properties, and the importance of the R&D push, the company can now focus on market penetration. The process requires the firm to develop a strategy with minimal risks and to sell the existing goods in their current markets. The business should also focus on the items and processes that are familiar to them. At this stage, the research decreases and the response towards competition increases. The strategies that will assist the Canadian Company to successfully penetratethe markets include developing a brand, packaging, merchandizing, and additional innovation.
According to Geun-Hye, (2014), one area that most companies focus their innovation on is developing and acquiring new products. Numerous new goods suffer from high levels of failure because of trying to reach out to an unrelated market. For example, a drug company that decides to create a beverage. The area is not is not in any specific way related to medicine. Another reason for the failure is controlling the needs of the customers by forcefully introducing a new product to them and banning the previous one. Industries should understand that not everyone may enjoy using the new item since some may prefer sticking to the product they know. The government can also prohibit the utilization of a new product if they believe it would be harmful to the people.
However, sometimes people enjoy buying goods that are forbidden due to the publicity. Hence, the leadership cannot entirely prevent a product from reaching the public. The attractiveness of an item can also lead to a flop. For instance, if the Canadian Company was to manufacture a laptop that had a poor design, buyers will naturally not purchase it. Therefore, for the organization to successfully introduce a new item, they must investigate carefully to ensure that it has no weaknesses. It is also advisable for them to simulate the expectations of the market. Predicting outcomes will help the Canadian firm reduce risks associated with capital, cannibalism, and market dollars.
Simulation increases the efficiency of the company’s operations, maintains safety, and saves the industry’s time. The Computer Company should use model inputs to evaluate the size of the markets, customer promotion, and outcomes. Alliances are also important to minimize the losses of product failure. Such partnerships involve collaborating with other partners as highlighted earlier in this essay. The company should access their probable partners to identify their strong points and weaknesses. Alliances are formed through contract negotiations and are classified as global, non-equity, and equity collaborations. The Canadian firm will benefit from agreements in ways such as resources, risk, and information sharing (Geun-Hye, 2014).
Conclusively, the company should realize that innovation is an important factor that will boost its expansion goals. They should strategize on methods to attract buyers in the emerging markets to ensure that they attain a competitive advantage over other firms in the computer industry. If the battle gets tough, they can decide to form an alliance with some of the best companies to stabilize their operations. They need to find out where they lie and the direction they are going to point out the best strategy to adopt. The server organization must protect their ideas and develop them with all the information stated in this paper.
Madame Park Geun-Hye. (2014). Entrepreneurship. (PowerPoint Slides). Retrieved August 16, 2015 from http://www.weforum.org/sessions/summary/reshaping-world-through- entrepreneurship-education-and-employment.