...International Journal of Innovation Management Vol. 5, No. 3 (September 2001) pp. 377–400 © Imperial College Press DEVELOPING INNOVATION CAPABILITY IN ORGANISATIONS: A DYNAMIC CAPABILITIES APPROACH BENN LAWSON Department of Accounting, The University of Melbourne Victoria, 3010, Australia e-mail: blawson@unimelb.edu.au DANNY SAMSON Department of Management, The University of Melbourne Victoria, 3010, Australia e-mail: d.samson@unimelb.edu.au Received 1 February 2001 Revised 18 August 2001 Accepted 21 August 2001 This paper draws together knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an “innovation capability” construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational structures...
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...A RESEARCH AND DEVELOP AN INNOVATION SYSTEM GREAT INNOVATOR/INNOVATION Innovation is the process of putting an idea or invention into the service system which will create value to the consumers and will results to organisational profit. It is the process of creating something new that makes life better. Innovation is impossible without passion and innovators see the world differently. It is said to be crucial to the continuing process but yet beneficial for the community and profitable for the business organisation. In this modern history of computer age, the development and launching of GOOGLE search engine made a huge impact in every individual and to the community on all aspects of life. It was created to organise the world’s information and to make it universally and useful. Its goal is also to preserve history and making it available to everyone. Internet entrepreneur and computer scientist Larry Page teamed up with grad school buddy Sergey Brin to launch this search engine in 1998. Larry Page is the current CEO of Google and leading one of the most innovative and successful companies in the world, perhaps in history. Sergey Brin is the multi-billionaire co-founder of Google who has been involved with some of the company’s most innovative technologies including Google Glass, and Google’s self-driving cars. (www.startupguide.com , “Creating a Better World Through Entrepreneurship,”) (www.entrepreneur.com) As a research project at Stanford...
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...Managing Change in a Contemporary Organisation At the beginning of the 21st century the forms of change within organisations have been innovatory and a widespread conviction has arisen as to the revolutionary nature to such changes as a sign of the times, (Pettigrew & Massini, 2003). While Tushman & O’Reilly III (1996) argue that the industry level of studies has not been helpful in illustrating the path of organisation’s change, Greiner (1972) outlines a corporate growth model in order to provide a useful framework in understanding organisational change. Psychologists believe that learning as a human behaviour can be defined as the relatively permanent change in actions as a result of experience or practice, (Baars, 1986). Reflecting and highlighting this concept in relation to an organisation it is subsequently essential to look at organisational change from a historical perspective as organisations learn from their own experiences. Thus innovations in terms of evolutionary and revolutionary change occur at each organisational growth level as determined by Greiner (1972). To answer these fundamental questions about the nature of organisational change it is vital to distinguish between two levels of change. Similarly the factors that directly influence organisational behaviour and organisational features that determine these factors should be examined in turn need to be considered. In line with Greiner’s (1972) theory each of the organisational elements and processes are shaped...
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...INSTITUTE OF HOTEL MANAGEMENT, AURANGABAD Innovation and Change “Innovation, Change and B.A honours student” Raghav Pandya (H-18087) UNIVERSITY OF HUDDERSFIELD, UNITED KINGDOM December 2012 Declaration I declare that this essay is the result of my own hard work and I confirm this to the university, regarding cheating and plagiarism. No material contained within this project has been used in any other submission or by the authors, for an academic award. 11th December, 2012 Raghav Pandya (H-18087) List of Contents Part 1: INTRODUCTION….…...………………………………………………………... [3] 1.1Examples of ongoing innovations in hotels.……………………………….,………… [4] Part2: THEORY………………………………………………………………………… [5-6] Part 3: CRITIQUE AND ANALYSIS……………...……………………………………. [7] 3.1 Indian Context………….……………………………………………………………... [8] CONCLUSION…………………………………………………………………………... [10] BIBLIOGRAPHY………………………………………………………………………... [11] Part 1: Introduction Change is inevitable in the life of an organisation. In today’s business scenario, hospitality organisations exist in dynamic and changing business environments and they have to cope up with the changes for survival and growth as there lies no second alternative, a supportive example in the Indian context to this is Wall mart entering Indian market is expected to change the retail industry from head to toe, competing with established Indian medium-large scale retail companies, and eating away many smaller fishes...
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...entrepreneurship, innovation and economic development. Yasong Zhao Student ID: 6511938 Word Count:1994 1. Introduction Over the past decade or so, the term entrepreneurship has become a fashionable way to describing the attempts at large-scale change by individuals and organizations. During this procedure, Innovation as the most important component of entrepreneurship is at a leading place, whereas, the combination of the two is vital to economic growth and sustainability in today’s dynamic and changing business environment. As a result, exploring the synergy relationship (either conceptual or practical) between entrepreneurship, innovation and economic development is gaining significance. They are complementary and related to each other, not at an initial stage of a new venture; rather they are dynamic and holistic processes. This integrative interaction between the three has had a positive and comprehensive impact to the whole society. Therefore, the role of sustainability is highlighted as the guidance to entrepreneurial and innovative decision making in the organisations or by individuals. This paper will first look into the relationship of the three by discussing each two of them, and then focus on the importance of sustainability from ecology, economy and social levels. 2. Relationship between entrepreneurship, innovation and economic development 2.1 Entrepreneurship and innovation The integrative framework of the interaction between entrepreneurship and innovation is dynamic...
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...Why do organisations need change? Table of contents Introduction Why do organisations need change Environmental pressures for change The promotion of innovative change Innovation and change case examples Recommendations Conclusions Annex 1 - Defining the Four Antecedent Processors 3 4 6 10 11 14 16 17 2 Introduction This report sets out to explain why organisations need change. Faced with dynamic economies and increased competition, more and more companies are struggling to establish dominance, gain market share, and in some cases, ensure their survival. Management must understand that the key to competitive success is to change the way the organisation functions. To assist in the need to change proposition theoretical frameworks and tools will used with supporting case examples to better illustrate why organisations need change. 3 Why do organisations need change? Organisations need change for a wide range of reasons. Organisations are never perfect and should be constantly changing to make themselves into significantly better companies (Porter 2005 ; Thompson et al. 2010). For example working practices may need updating to gain efficiencies, staff skills may need improving, customer service response times could be shortened, customers demanding a product or service you do not currently provide, new technology may produce improvements in efficiency, costs could be reduced, innovative new products may be possible to increase revenues and profit. This is by no means an...
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...recession and as we exit, a strategic approach to business management is key to longevity and sustainability of an organisation. In the context of Read Construction Holdings Ltd (the writer’s organisation), there are significant changes currently underway – a new business plan targeting significant growth over 3 years, new directors and ownership and a marketing strategy targeting increasingly large complex projects of a Design and Build nature. To achieve this, some form of change is required and much of this change may come through innovation. This assignment will distinguish between product, process and organisational innovation and discuss which is likely to be the most important for the growth of Read Construction Holdings over the next three years. In order to distinguish between the different types of innovation, the essay will begin by setting out a clear definition of innovation. The main discussion will go on to discuss limitations, barriers and enablers of innovation and how that might impact on the organisation, summarising which type is likely to be the most important for the business in support of its goals, the essay will also evaluate the potential for consecutive innovative approaches and what limitations and barriers / enablers may be encountered. What is Innovation? In defining innovation, it is important to clearly differentiate between innovation and invention. Fagerberg (2004) suggests that invention is the first occurrence of an idea...
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...2002; Hambrick and Canella 1989). Every failure of implementation is a failure of formulation. The utility of any tool lies in its effective usage and so is the case with strategy. Strategy is the instrument through which a firm attempts to exploit opportunities available in the business environment. The performance of a firm is a function of how effective it is in converting a plan into action and executing it. Thus implementation is the key to performance, given an appropriate strategy. In literature, implementation has been defined as “the process by which strategies and policies are put into action through the development of programs, budgets and procedures” (Wheelan and Hunger pp15). This involves the design or adjustment of the organisation through which the administration of the enterprise occurs. This includes changes to existing roles of people, their reporting relationships, their evaluation and control mechanisms and the actual flow of data and information through the communication channels which support the enterprise (Chandler 1962; Hrebiniak and Joyce 2005). Evolution The field of Strategic management has grown in the last thirty five years developing into a discipline in its own right. Borrowing extensively from Economics and Social sciences, it is still fragmented by the presence of number of distinct schools of thought, diversity in underlying theoretical dimensions and lack of disciplined methodology. The fragmentation is due to...
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...Week 11 Online Learning – Lesson 1 Transcript Introductory video Hello, for those that do not know me I’m Ian Caddy the unit co-ordinator for Management Dynamics. Welcome to the first of two online lectures in Management Dynamics. Each lecture will be supported by an online tutorial using Pearson Australia’s MyManagementLab. So you will need to register for MyManagementLab using the instructions outlined in the document ‘Accessing Pearson’s MyManagementLab’ which is part of ‘Unit Information’ on the Management Dynamics vUWS site. For those of you that have purchased a textbook then the MyManagementLab access is on the inside front cover of the book. For those of you that have purchased an earlier edition of the textbook or purchased a VitalSource e-Book then you will need to purchase an access code. The structure of the online lecture is that there will be a delivery of some content using a range of different media (PowerPoints with voice over, videos, etc.) followed by some online activities which you should complete. That is, the learning will include both listening, watching and doing. It would probably be a good idea to arrange with your other group members to participate in the online lecture together; that will ensure that there is somebody else that you know completing the online exercises at the same time that you will be. Furthermore, what you will also find is that the lecture does use a lot of what is covered in the textbook; so it may be a good idea to have the textbook...
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...Unit 4003 INTRODUCING ORGANISATIONAL CULTURE, VALUES AND BEHAVIOUR 1.1. Determine a framework for analysing organisational culture. The contemporary definition of organizational culture includes what is valued, the dominant leadership style, the language and symbols, the procedures and routines, and the definitions of success that characterizes an organization. Organisational Culture represents the values, underlying assumptions, expectations, collective memories, and definitions present in an organization (Schein, 1992; Cameron & Quinn, 1999). Cameron and Quinn (1999) have developed an organizational culture framework built upon a theoretical model called the "Competing Values Framework." This framework refers to whether an organization has a predominant internal or external focus and whether it strives for flexibility and individuality or stability and control. The framework is also based on six organizational culture dimensions and four dominant culture types (i.e., clan, adhocracy, market, and hierarchy). In addition the framework authors generated an "Organizational Culture Assessment Instrument (OCAI)" which is used to identify the organizational culture profile based on the core values, assumptions, interpretations, and approaches that characterize organizations (Cameron & Quinn, 1999). The central issue associated with organizational culture is its linkage with organizational performance. Connections between OC and performance have been established....
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...interest and importance of knowledge in organisations has been increased remarkably in both theoretically and practically (Cheema, 2010; Knight and Howes, 2003; Rasmussen and Nielsen, 2011). The reason is revealed by Migdadi (2009) and Politis (2005), in the new economy, the intangible resource, knowledge has become the foundation of organisational competitiveness compared to tangible assets. In other words, the traditional driving factors of production, including, land, labour and capital have turned into the secondary resources as knowledge become the primary source of power in production within the contemporary economy. The work of Rasmussen and Nielsen (2011) reveal that intangible resource is regarded as a typical feature of knowledge, which can build capabilities for both organisations and individuals, consequently, in this new economy, also can be called knowledge-based economy made knowledge become strategically important to provide sustain competitive advantage for enterprises, especially in high technology and bioengineering sectors (Niu, 2010). Knowledge therefore has emerged as a main source of power as well as core competency in today’s emerging economies. However, new possibilities and threads are constantly taken place to challenge the power of knowledge when organisations are under pressure to operate their business globally. As the result, with rapid and constant changed environment, it is important to developing “dynamic capabilities” (Teece et al., 1997),...
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...Service Alliance Assistant Professor, ESADE Business School How complex service providers use business model innovation to deliver sustainable growth Andy Neely Director, Cambridge Service Alliance Founder members: Judge Business School The Cambridge Service Alliance The Cambridge Service Alliance is a unique global partnership between businesses and universities. It brings together the world’s leading firms and academics, all of whom are devoted to delivering today the tools, education and insights needed for the complex service solutions of tomorrow. About the Cambridge Service Alliance Founded in 2010 by BAE Systems, IBM and the University of Cambridge’s Institute for Manufacturing and Judge Business School, the Cambridge Service Alliance brings together world-leading organisations with an interest in complex service systems to: • Conduct insightful, yet practical research to improve the design and deployment of high-performance complex service systems. • Create and develop industrially applicable tools and techniques that deliver competitive advantage. • Provide an unparalleled network of academics and industrialists that share experience, knowledge and insight in how better to design and deploy high performance complex service systems. • Develop and deliver public and member-only education programmes to raise the skill levels of organisations. Joining the Cambridge Service Alliance Industrial members The founding industrial members are BAE Systems...
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...Foreword Introduction About the articles Article 1 Improving the Quality of Working Life: positive steps for senior management teams Article 2 Failure, Survival or Success in a Turbulent Environment: the dynamic capabilities lifecycle Article 3 A New Role Emerges in Downsizing: special envoys Article 4 Only a Click Away? – What makes virtual meetings, emails and outsourcing successful Article 5 Closing the Needs-to-Offer Gap: customer relationship management in retail SMEs Acknowledgements 3 4 6 7 13 20 25 31 38 Copyright Chartered Management Institute © First published 2013 Chartered Management Institute 2 Savoy Court, Strand, London WC2R 0EZ All rights reserved. Except for the quotation of short passages for the purposes of criticism and review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of the publisher. British Library Cataloguing in Publication Data A CIP catalogue record for this report is available from the British Library ISBN 0-85946-458-x Foreword The way that people in positions of authority exercise leadership and management has a decisive influence on the performance of their own organisations and therefore of the wider economy. It has been estimated that raising aggregate employee engagement from the bottom to the top quartile of performance could add over £20 billion to the UK’s Gross...
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...Sony Corporation is a multination conglomerate corporation headquartered in Tokyo, Japan , and one of the world's largest media conglomerates with revenue of US$88.7 billion (as of 2008) based in Minato, Tokyo . Sony is one of the leading manufacturers of electronics, video communications, video game consoles and information technology products for the consumer and professional markets. Its name is derived from Sonus, the Greek goddess of sound. Sony, as an organisation, must deal with the dynamic industry they operate within. They established themselves by developing a stable work environment where engineers had profound appreciation of technology and could work as freely as they pleased, focussing on developing dynamic technologies and creating products that people longed for (Mintzberg et al, 2003). Two new managers have been appointed at Sony in the last 15 years due to a number of developing problems, including the innovation ‘cogs’ within Sony slowing down, being forced into an aggressive pricing strategy, increased competition, losing the battle of VHS and Betamax, profit and sales remaining flat and the ongoing poor performance of Sony films (Mintzberg et al, 2003). Both managers initiated major strategic changes with varying degrees of success; firstly Nobuyuki Idei was appointed and initiated a major shift from analogue to digital technology, as there was a belief that Sony was falling behind the market in this respect. Idei also targeted the top position...
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...staffing and leading have been stated as the basic function of managers (Daft, 2012). However, these functions are not enough. Today, the business world is filled with many uncertainties and dynamics. There are increasing challenges that a manager might confront. The new business world requires managers have more qualities to support their management work (Lepsinger, 2004). This essay will present the key traits and qualities that a successful manager should have in modern business world, with some examples from real business world. Planning There are many competitors in any industry today and the external environment is changing fast due to technology development, media influence or economic change (Daft, 2012). In such a background, it brings many difficulties to managers. An effective and capable manager should have strategic thinking and planning ability. McKenzie et al (2011) states agile and sound decision making is one of the core strategic capabilities of companies. A successful manager would effectively predict the development and changes in the business environment, and make active response to the future change. Take Liu Chuanzhi, the CEO of Lenovo for instance. Since Lenovo was founded in 1984, he has decided that quality and innovation are the orientation of the organisation, while many Chinese manufacturing companies were still focused on mass production at that time. In the beginning of the 21st century, when many Chinese manufacturing companies have done original...
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