...National Chiao Tung University GMBA Program Global Technology Strategy McKinsey Quartely Creating value through Innovation Team Lolo - 9988542 Alfonso – 9988 Date: May 31, 2011 Summary Innovation, according to the article, involves the development of new products or processes and the knowledge that produces them and those new products can either take the form of high-level building blocks, midlevel intermediate goods and ground-level final products. The underlying knowledge for new products includes high-level general principles, midlevel technologies, and ground-level, context-specific rules of thumb but technological innovations, especially high-level ones, usually have limited economic or commercial importance unless complemented by lower-level innovations. The world that we live in facilitate the quick dissemination of knowledge and breakthroughs travel easily, but their national origins are fundamentally unimportant and the debate as to whether innovations or innovators make the greatest contribution to economic prosperity, is deemed as ‘not helpful’, because they all play necessary and complementary roles. The enhancement of research in China and India, and their share of ‘cutting-edge work’, will improve living standards in the United States, implying that other countries can benefit from the advances without them actually affecting the country’s economy. Many cross-border flows are important to innovators, namely, the dissemination of knowledge including...
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...Innovation in Entrepreneurial Organizations The nature of entrepreneurial organizations is that they have the capabilities and competencies to create a culture of embedded behaviors that support the constant focus on identifying and subsequently taking advantage of profitable opportunities. In other words, they exist to find and take advantage of opportunities that have the highest potential return. Bateman (2010) states that, “…an entrepreneurial venture has growth and high profitability as primary objectives. Entrepreneurs manage aggressively and develop innovative strategies, practices, and products” (p. 238). Entrepreneurial organizations do this by being willing to try new things, challenge the status quo, and test out new processes. They encourage creativity, risk taking, and continuous learning and improvement. However creativity must then be harnessed and developed by innovation and it takes innovation to turn great ideas into something of value. Thus innovation should be considered fundamental to an entrepreneurial organization’s success. What then is innovation? Bruton (2012) says it well when he concludes that innovation is, “…a process of intentional change made to create value by meeting opportunity and seeking advantage.” (Innovation, para. 1). And although product innovation is a very important aspect of their business, it is only one area that entrepreneurs are interested and excited about. Rasmussen (2013) explains, “The very nature of innovation is changing...
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...Best Snacks Problem Solution Lashanna Dipiano MMPL/550 May 12, 2011 Phillip Norris Best Snacks Problem Solution Best Snacks, Inc is a 150 year old company that has been held publicly for more than 100 years. Although the company has enjoyed many years of success, it has recently failed sustain its success due to the lack of innovation and creativity over the last 5 years. In today’s business environment innovation is necessary to sustain success and is an integral part of the business model. The ability to learn faster, better, and more cheaply than the competitor can mean the difference between maintaining market leadership and barely surviving (Davila, Epstein& Shelton, 2006). To regain its long held standing as a leader in the snack industry Best Snack, Inc must implement a plan that focuses on creating a culture that cultivates innovation, developing management systems that are aligned with the new strategy, and creating a new product line that will bring the company back to the forefront in the snack industry. Describe the Situation Issue and Opportunity Identification Best Snacks, Inc has been a leader in the snack industry for many years. As the snack industry began to change to meet the demands of a consumer market that is more health conscious, Best Snacks has failed to meet the challenge. Best Snacks has been slow to adapt to change and stray away from its tried-and-true research, development, and marketing activities (University of Phoenix, 2006). The...
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...Sustainable Innovation as a Corporate Strategy M. Rashid Khan and Mohammed Al-Ansari Intellectual Assets Management, Saudi Aramco, Dhahran 31311, Saudi Arabia. 1. Introduction Something amazing happened in the corporate world. The idea to innovate has captured our imagination. As an example, in 1996, Lucent Technologies’ award winning “Creativity Center” was industries state-of-the art that provided leadership, passion, outstanding marketing, training and communication. Similarly, Enron was the industry “darling” for its innovation program; Enron’s major intranet program “eThink” was recognized with awards for excellence in communication. Yet four years later Enron went bankrupt, the programs of many companies were in ruins joining the ranks of Polaroid, DuPont, Reynolds, Ford and many others. What happened? We watched many companies failed while other organizations remained successful. What made the difference in the innovation process? While many companies failed, others were successful adding value fostering innovation and creativity. Many companies such as 3M, IBM, Disney, Microsoft, and Sony continued to innovate. This paper attempts to explain the reasons behind the failures and successes. 2. What is Innovation? Innovation is discovering new ways of creating value. Innovation serves as the lifeblood of many organizations whose survival and growth depend on developing new technology, products and services. A successful organization is a creative organization because creativity...
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...1. Knowledge is defined as justified true belief. Why knowledge created in organization is defined as justified true belief referring to the process of knowledge creation in organization. To answer why Knowledge is defined as justified true belief, we need to analyze how is the process of knowledge creation in organization at first. Based on the SECI model of knowledge creation, the process of knowledge creation in organization including four phases. The first phase is socialization which means Sharing and creating tacit knowledge through direct experience. It includes four parts. First, capturing tacit knowledge through direct experience (e.g. interaction with suppliers or customers). In the IDEO case, they kept clients involved and learned from their clients by assimilating the things clients did well into their own methodology. Second, by walking around inside the company, knowledge or the latest available information was collected or acquired. In the 7-11 case, through POS data and Tanpin Kanri, 7-11 obtained the latest information of inventory and sell order data, they make the reasonable decision on these valuable information and knowledge. Third, accumulating and systemizing tacit knowledge by and sharing between individuals. In IEDO and 7-11, they both create an environment for knowledge sharing. IEDO use brainstorming and 7-11 use “Box Lunch Corner” to encourage employees to show their ideas. Last, interpreting tacit knowledge by transferring one’s ideas or...
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...Ninth AIMS International Conference on Management January 1-4, 2012 Blue Ocean Strategy – A Critical Analysis of Application on Indian Companies Smita Shukla smitashukla_in@yahoo.com University of Mumbai, Mumbai Blue Ocean Strategy which is much discussed strategic approach that needs to be followed by such companies that wish to beat the market competition. The paper analyses the practical application of Blue Ocean strategy in case of Indian companies. This paper also discusses the risk factors/negatives associated with the emergence of application of Blue Ocean Strategy in India/worldwide. 1. Introduction According to the well-known authors and management thinkers, W. Chan Kim and Renee Mauborgne, ‘the only way to beat the competition is to stop trying to beat the competition’. According to them, the entire market universe can be divided into two oceans: Red Ocean and Blue Ocean. Red Ocean is representative of all such industries/products which already exist and are thus representative of the known market space. Blue Oceans denote the industries/products not in existence today. Blue Oceans thus represent the unknown market space. In the Red Ocean industry boundaries are defined and well accepted. This means the existing competition is well known in the market space and the players in the market try to outperform their rivals to get greater share of the existing market demand. As existing market space gets crowded prospects for good profit and growth in future are...
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...geography played a major role in some civilizations progressing faster than others, as the availability of stable land and nutritious crops enabled societies to fulfill their primary needs, allowing for specialization which led to technological advancement. This technological advancement in a sense then became the determining force for development of societal of cultural values. On another hand, Diamond's work also reveal that Europeans have also derived their innovation from other nations, suggesting that groups construct knowledge for each other, allowing for a...
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...KATHMANDU UNIVERSITY SCHOOL OF MANAGEMENT | Design Thinking and Innovation at Apple | Case Analysis | | Submitted By Aakriti Acharya Animesh KC Sirjana Shrestha Surendra Pandey | Synopsis Apple is the world’s most successful and leading brand. Due to unique vision, philosophy and dedication of Steve jobs and employees, Apple has been able to maintain its competitive position till date. The employees of Apple provide new values to customer through unique design and innovation. Apple has the ability to understand and deliver the customer’s needs in simple and sophisticated way. The major reason behind the success of apple is its strategy where it develops product that are completely differently than competitors i.e. it believes in being innovator rather than imitator. Case Issues The issues in this case can be listed as: * What are the key factors that have contributed to the innovation and creativity at Apple? * Is there any systematic approach to innovation at Apple? * Will Apple be able to keep up with customer’s expectation and continue to be a leading brand without its founder Steve Jobs? * Which is more important? Innovation or Brand image? Case Facts The facts mentioned in the case are listed below: * Apple went through a lot of turbulent phases and had many ups and down in the past but still, it struggled and never gave up. Due to its commitment towards product design and development it has...
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...PROJECT MANAGEMENT AND INNOVATION IN THE CONSTRUCTION INDUSTRY It has been asserted by researchers that the knowledge and skills possessed by a company`s employees, contribute substantially to the organization`s capacity to innovate. Stewart (1997) sustains this view affirming that: “human capital is the capabilities of individuals who are the source of innovation and renewal within companies”. Egbu (2004) explores the factors that lead to innovation in relation to the managerial understanding of developing the human capital and integrating those ideas in the organizational strategies. In the study of four innovative construction organizations, it was noted that these organizations have similar characteristics that contribute towards stimulating innovation and human capital such as: flexibility in response to change and new information, a climate where mistakes are accepted as being part of the learning process and people are not afraid to take risks, an environment that promotes respect and employees are valued, where they are encouraged to share information, establishing a relationship of interdependence between employees and organization and also and a climate of trust and job security. (Egbu, 2004) Byrne (2001) states a very pertinent question: “Are employees capital or commodity?” and asserts that if the employees feel insecure in their jobs and feel that they can be easily replaced their willingness to share knowledge decreases considerable. He observed that without...
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...Creating Shared Value MBA6008, Global Economic Environment June 6, 2014 The article “Creating Shared Value“ is a business concept created by the Harvard Business Review and written by Michael Porter and Mark Kramer on January 1, 2011. The article deals with the idea of innovating the purpose of a corporation and their relationship to the social environment in order to identify unknown customer needs and to expand the relationship with the communities in order to be mutually dependent. Porter and Kramer urge leaders to recognize that "shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success". They advocate that creating shared value will drive the next wave of innovation and growth in the global economy (Porter & Kramer, 2011). Several large corporations have already started implementing a shared value initiative – such as Google, IBM and Wal-Mart (Porter at el, 2011). Shared value creates economic value for the corporation through innovations that address society's needs and challenges. Companies create shared value in three ways: 1. By redefining products and markets 2. By redefining productivity in the value chain 3. By enabling local cluster development 1Arguably, products and markets are the greatest unmet needs in the global economy (Porter at el, 2011). Too many companies fail to reevaluate their strategy and ask themselves if their product is right for the customer. 2A company’s...
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...function as an inseparable part in the context of economic development since their close involvement in the processes of manufacture, trading and profit generation. However, it also appears that the term entrepreneurship is not easy to understand although this subject seems similar to the term of entrepreneur. Based on this background, this essay will first fully analyze the principal subject of entrepreneurship reflecting various economists’ perspectives, and secondly illustrate the relationship between entrepreneurship and innovation, before suggesting that in general, entrepreneurship is closely linked with innovation and they are both significant elements in the development of economy. Furthermore, this essay will also illustrate that creativity and problem solving are effective capabilities in entrepreneurial processes of business planning and decision making in the realization of innovation. To understand the relationship between entrepreneurship, innovation and economic development, it is crucial and necessary to analyze the keywords in this statement. First of all, what is entrepreneurship? In fact, despite the potential that every individual may take a mutual view directly on the term of entrepreneurship, there is no fixed definition of this term. As is noted by Baumol (1968: 64), the concept of entrepreneurship is in fact obscure and it is not often the case that, this term can be defined explicitly in the theoretical scope. Traced back to the early history in economic context...
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...It could be new products or services or new ways of producing them. There are no Google or Microsoft emerging out of India but this does not mean that no innovation is being done in India. If product for end users is the visible tip of innovation iceberg, India is well represented in the large submerged portion of the innovation iceberg. Invisible innovation can be categorized as below:- Innovation for Business customers:- In the last 2 decades, 750 R&D centres have been set up by the multinational corporations which have served as a major source of innovation. Outsourcing Innovation to Indian companies:- Many global companies are contracting Indian industries for innovations in their global products. In the Pharma Industry, many molecules are developed in US but the major part of the project is sent to India. Similarly HCL developed two of the major mission control systems of Boeing 787 in India. Process Innovations because of the injection of intelligence by the Indian Firms:- Many processes and products have been improved by organizations using predictive modelling. Management Innovation:- It is the new way of organizing work. Most major management innovation is the Global Delivery Model followed by Indian Offshore...
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...vision and image. During the 1990s, Apple suffered from its multiple changes in executive management and inconsistent strategies. Under Steve Jobs’s leadership, Apple’s vision was to be a continuous pioneer in the PC industry in order to become “an enduring company where people were motivated to make great products...a company that will stand for something a generation or two from now” (Katzenbach, 2012, para. 5). Unlike previous CEOs and much of the competition, Jobs continually strived to keep Apple innovative and exert cultural influence. However, this focus on innovation has forced Apple to continually adapt and offer new products to maintain a marginal advantage in an rigorously competitive industry. The 1990s In the early 1990s, Apple Computer was well received and uniquely valued by PC consumers. This enabled Apple to offer its products at premium prices. However, senior management realized that creating products valued as unique was not enough to sustain profitability. As IBM, its major competitor, dropped prices, Apple needed to alter its business strategy by offering “products and prices designed to regain market share” (Yoffie & Slind, 2008, p. 3). Apple Computer then went through numerous changes in corporate leadership, employed strategies to sustain profits including lowering operating and manufacturing costs, alterations in software platforms, and engaged in joint venture opportunities. During this time, Apple introduced new products that catered to the needs...
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...what it faces. Human resource and the many issues that it faces in the effort to obtaining better ways of communicating across a wide range and various aspects of today's society in many respect it assumes the role of strategy and planning for the most part put critical issues to the growth of HR and changes that come into play. Such changes and issues are: * The many changes of HR's function and demographics in respect to the complete and total of functions in areas such cultural and diversity. * HR innovations and planning. * Creating new innovations of new challenges. * Creating new innovations of different approaches to social networking. * Creating and having HR on a more global base to successful applicants. * Creating and improving a more knowledgeable work environment. * Creating ways of keeping up with the ongoing changes of regulations updates and keeping up with electronic security and new HIPPA standards and regulations. * Creating ways to stay within compliance of the ever-changing of HR department and regulations to its law’s. Due to the many changes in HR to the fact that critical issues do in many respects surface of old technology and ways of the all HR due diligence to and within strategy planning for the human resource department must go forward in the progression of moving into and traditional to a new change in communicating and of technology to better deal with and...
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...Introduction According form the sentence “ Creativity and innovation are essentially perceived as the building blocks toward the achievement and success of entrepreneurs”. The sentence is mention with regard to creativity and innovation in term of business. There are many confusion theories concerning creativity and innovation in term of firms and partnerships. Therefore, the writer is going to find out and explain the sentence. Then, this essay will give the definition of creativity and innovation, and determine the key word of the sentence. Why the creativity and innovation are important for successful for entrepreneurs as the building blocks of company and organizational firm. In addition, the writer will provide an example case study that support of how significant of those two words is. Many theories of Creativity and innovation in term of business can be cause of confusing in the sense of creativity and innovation. However, Creativity and innovation are two different terms and they technically have different sense. Fist of all, creativity in term of business is described, as “Mental characteristic that allows a person to think outside of the box, which results in innovative or different approaches to particular task” (BusinessDictionary.com, n.d.). Therefore, creativity is a result processing of knowledge including curious, experience, imagination, and evaluation. Base on the theory of Burrus (2013), “the creativity is divided into three steps: Discovery: the lower...
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