BU7030 Managing Innovation Assignment Sample 2023
1. Innovation theory
Characteristics of innovation
According to innovation theory, there are mainly five characteristics of innovation-
Associative advantages: There are different advantages of innovation such as multiple functions that can be done by one system, better services, decreasing requirements for supplies and equipment, improved interface, longevity, increased customizability, environmental impact, increased productivity and time, money, storage and space-saving.
Compatibility: Compatibility is the relationship harmony that innovations create with individuals through comprehensiveness in their lives (Igartua & Markuerkiaga, 2018). The users of innovation are required to understand that the innovation is going to be compatible with their lives. Innovation meets the greatest success if the potential people can seamlessly adopt them.
Simplicity vs. complexity: Simplicity or complexity is the level of difficulty that the adopters face learning the innovation utilization (Frankort & Hagedoorn, 2019). It has been identified that the high complexity level of innovation increases its learning difficulties.
Observability: It refers that the benefits or outputs of the innovation are visible so that everyone can adopt the innovation quickly.
Trialability: Trialability of the innovation refers to how easily the potential users can examine and observe the serviceability of the innovation before committing to it.
Critical analysis of Tidd and Bessant innovation process
In the advanced and digitalized era, innovation becomes crucial for businesses for achieving economic and social success in the competitive business market. Different researchers have developed the innovations models in order to define innovation properly. Tidd and Bessant have displayed the innovation management process with the five constructive ideas such as networking, organization, learning, strategy and process.
Tidd and Bessant have offered a new innovation model although there are no studies or discussions of this model. The authors have stated that the innovation has the ability to cover all the non-technologies or all types of innovation that do not significantly pertain to the introduction of the new technology (Björklund & Forslund, 2018).
The perspective of innovation offers measurement and analysis, strategic consideration, the focus of the things, methodology and models and the exclusive concepts. The research has identified different factors that have contributed to the innovation. According to the innovation model of Tidd and Bessant, the capability of innovation measurement mainly depends on the strategy, networks, processes, organization and learning.
Different authors identified the strategic innovation management process while the scholars have determined that innovations are mainly market-oriented and time-specific (Tidd & Bessant, 2020). They have stated that inspiration for innovation mainly comes from the strategy of innovation. Different studies have considered that innovation is mainly the sum of several innovative events that are developed in multiple and mutual stages with consecutive processes.
The systematic vision of innovation states that the innovation can connect the resources and capacities with its systematic vision. Tidd and Bessant have determined that the regeneration or renewal of the organization can be done with the revival in products and services or by the product and distribution efficiency.
According to Tidd and Bessant, Innovation is completely new ideas that are invention or novelty. This innovation management process needs to be done through the commercialization activities and the marketing optimization. Additionally, the form of Tidd and Bessant model the innovation process as a regeneration or reformation of staff.
It includes novelty in services and good that offers something that no one else can. It includes the novelty in process that will be different from the others with faster deliver, lower cost or most customized features. The complexity will also be involved that offers some features that are difficult to match or copy.
It will also include intellectual property rights or legal protection through the license or payment to the potential government in order to mitigate the policy oriented issues. Moreover, the innovative factors will ad competitive value to the products and service process that will improve the product quality and affordability and the preferences. Moreover, the innovation process must also be time-effective that will lower the production and delivery time to enhance the efficiency of the business operation through the innovation process.
The innovation in an enterprise determines the implementation of newly developed technologies or management of internal and external relationships of business (Lin, 2018). The innovation process mainly includes redistribution of roles and responsibilities, new technology adoption and decision making with the restructuring of the environment.
The developments of new ideas, methodologies, workflows, products or services in an organizational setting are the main features of innovation. Innovation enables a business organization to achieve its potential objectives by the enhancement of its existing resources, products or services or capabilities. The innovation process helps an SME to explore a bigger and developed marketplace.
Teamwork
Teamwork reinforces productivity, growth, future betterment and organizational performance through understanding and collaborative performance of the individuals. Teamwork helps in the consideration and selection of the innovation with collaborative thinking and association. It enables the potential stakeholders to enhance their skills and learning through the enhancement of the innovation process.
The potential stakeholders can acquire creativity and productivity with the help of innovation strategy in the organizational setting (López-Bazo & Motellón, 2018). Innovation requires proper team building and teamwork with sharing of information and mitigating the challenges for successfully implementing the innovation process. Thus teamwork in the innovation process helps in the speedy and appropriate implantation of the innovation process.
Project planning
Project planning is the essential aspect of the innovation process that helps the innovation process in enhancing the business capabilities. It combines the efforts of individuals for enhancing the process of innovation and for constructing connections among the opportunities and business objectives for future development.
Proper project planning helps an organization to achieve the desired objectives that can enhance the receiving of the competitive advantages in the potential business marketplace (Fitriani et al., 2021). Project planning in the innovation process is crucial as it helps to define goals, decrease the risk factors and develop unique innovation strategies for enhancing the business process.
Influence of the market on the innovation process
Acquirement of competitive advantages: The innovation process helps an organization to acquire the competitive advantages in the global business market with constructive and sustainable ideas and solution that helps the business to think out of the box (Distanont & Khongmalai, 2020). It enables the business to enhance its process and operations with innovation objectives.
Cost reduction: In most cases, innovation generally involves a single time investment for a better cost-effective future. The innovation reduces cost in inventory and labour resources that helps the organization to extract a huge profitability rate.
Differentiation of market growth: Different business organizations face challenges by the equivalent business in the same industry (Singh, Akbani & Dhir, 2020). Innovation helps these businesses to differentiate themselves from their competitors with innovative products or processes.
Development of new market and new segmentation: Innovation helps to identify the new customer segmentation and helps the business organization to reach a new marketplace with innovative features and also rectify the market penetration that has an impact on the transfer of technologies.
2. Innovation practice
2.1 Company context
Background of the company
Copepod Coffee Co is famous in London for its independent craft coffee business. The company was established in 2011 by two entrepreneurs Peter Grainger and Brent Hadfield (Cafepod.com. 2021). The company is well known in the region for selling quality coffee to coffee lovers so that they can enjoy it at home.
Copepod sells a different range of coffee and it is available in the online retail store of the company as well as in the major supermarkets. The most famous blends include Decaf Espresso, SW18 Daily Grind, Intense Roast, Supercharger Espresso, Ristretto and Brunch Blend.
Analysis of the industry
The coffee industry in the UK generates around 2.1 billion British pounds, according to the report of 2019. The coffee industry added a gross value of 690 million British pounds to the GDP of the country. The number of cafes increased since the year 2012 and in 2019 the industry reached a drastic level.
According to the market-leading report of Allegra World Coffee Portal (2020), the UK café industry is currently trading at existing sites (Poortinga, Nash, & Hoeijmakers, 2019). There is market turbulence and a more cautious approach is needed for the growth of cafés. 40% of café industry leaders chained regarding more than 5% trading uplift during 2019.
The report also claims that the coffee shop brand in the UK segment will exceed. It is expected to have 9,400 outlets by the end of 2024. There can be a growth of 2.7% CAGR in the upcoming five years. The industry focuses on sub-segments and this includes market leaders like Caffè Nero, Starbucks and Costa Coffee (Poortinga, Nash, & Hoeijmakers, 2019). Here is the leader’s expertise to increase 6,000 outlets at the end of 2024 and this displays 2.4% CAGR growth in the UK.
Challenges the company faces
The poor delivery process and last of financial capital
The impact of Brexit, labour and cost of property are the key challenges faced by Cafepod. Brexit is affecting Cafepod as there is a need for extra paperwork as well as administrative cost to trade with the EU. Brexit is leading to a shortage of labour that is needed for transporting.
This situation has slowed down the delivery process and the Cafepod is facing issues regarding a shortage of baristas. The company is facing issues in the supply chain as well and the greater chain has recurred. Also, the outlet growth of the rivals is becoming a challenge for the company (Bashiri et al, 2012).
Due to the financial issue, Cafepod is facing problems with higher labourers and due to the high cost of the property, the company is not able to run the shops properly.
Environmental sustainability
On the other hand, the environmental concern increased by the leaders of the industry and Cafepod is not able to meet all these criteria. There are issues in packaging the items and delivering them to international clients. The packaging needs to be modified as the company is still using practice and not recyclable components.
Lack of investment in R&D
The competitors are increasing vegan items whereas Cafepod is facing challenges to enhance and modify their items.
2.2 Innovation in action
Description of the innovation process
IoT technology can be implemented in the Cafepod Cafe Co organization as an innovation system that will mitigate the potential challenges that the organization was struggling with. It can enhance the supply chain network and operation of this organization as this technology has the ability to authenticate the location of the materials through GPS satellites.
It can also track the traffic flow of goods and speed of the movement of the products that help in the prediction in the supply chain management (Saad, Bahadori & Jafarnejad, 2021). The development of IoT will not only monitor the storage conditions like humidity, temperature, atmospheric exposure and light intensity but also locate the storage of goods in the distribution centres.
The effective technological system has greater energy efficiency as it provides real-time data about off-hour consumption, optimizing production recommendation and management if scheduled in the organizational setting.
Moreover, improvement of the quality of the products and services are boosted by the IoT technology through the movement of sensors in the production department by controlling the temperature if the sensor detects any temperature change in the kitchen. Thus the labour cost can be reduced through this technology in the production department.
On the other hand, R&D is the essential aspect of IoT technology as it can easily exchange information from the marketplace to the organization via a network system. It will help the organization to gather knowledge about the market demands and innovative products (Priyashan & Thilakarathne, 2020).
Moreover, it will help the organization to take innovative steps through the identification of the eco-friendly packaging requirements by the customers.
Importance of leadership concerning the proposed innovation
Without proper leadership planning and management, the implementation and management of the new IoT technology can fail and thus it is crucial to implement new technology with innovation and leadership. An innovation leader plays a very important role in creating adaptability for the potential users through motivation and encouragement.
While innovation occurs in an organizational setting, most of the employees show negligence and avoidance towards the adaptability of the newly developed system as they become habituated with the existing technology. In this situation, the users show their avoidance of the changing scenario of the organizational setting (Trott, 2017).
There are ranges of leadership and change management models available that the potential innovation leaders generally employ for managing the innovation process by the management of the users. In this regard, the innovation leader will implement Kotter’s model that involves eight stages. The employment of Kotter’s model in the organizational setting will make the implementation of IoT software in the organizational setting.
Step-1 Urgency creation: This is the very initial stage where the innovation leader of the Cafepod organization will try to establish a sense of urgency through the displaying of the poor organizational performance through the financial statements and reports of the organization of the past few years. The huge market competition level and the lacking points of Cafepid will be discussed with the potential stakeholders in order to convince them to adopt the change.
Step-2 Coalition formation: in this stage, the leaders of Cafepod will identify the efficient and emotionally attached employees with the organization and they will be asked to provide a commitment (Brix, 2018). In this regard, team building will be performed for creating a coalition. In this stage, the employees from different departments will be involved to increase the collaborative atmosphere.
Step-3 Innovation vision creation: The potential leaders will create an organizational vision in order to generate a goal. In this regard, the goal creation will boost up the energy level of the employees and they will be asked to share their thoughts about the proposed technology.
Through this strategy, every employee will feel their value and will engage themselves in the provision of their thoughts (Hyland & Karlsson, 2021). The thoughts of the employees must be aligned with the proposed innovation and organizational vision that will be ensured by the innovation leaders.
Step-4 Communication in action: To implement the IoT system in the Cafepod organization, the innovation leader will arrange frequent meetings and conferences in order to formally communicate the vision and mission of the changing organizational setting through the proposed change (Rajan & Ganesan, 2017).
Communication building among the stakeholders will reinforce collaborative attitudes which are an essential part of innovation management.
Step-5 Obstacles removal: In order to mitigate the issue of avoidance towards proposed change in the organization, the innovation leader will identify the necessity of the employees and will employ a reward system to convince the employees (Boff & Cardwell, 2020). Through this strategy, the fundamental obstacle of avoidance towards the change can be mitigated.
Step-6 Short-term goal setting: the overall project of innovation management will be divided by the innovation leaders into several stages. The simple and easily adaptive stages will be performed earlier in order to encourage and motivate the employees.
Step-7 Innovation introduction: The successes in the achievement of the short-term goals will bring long-term success and in this regard, the continuance in the improvement process will be imposed through training and development programs to the employees.
Step-8 Alignment of innovation with the organizational setting: After the installation of the IoT system in the Cafepod organization, the innovation leader will arrange meetings to show the success rate in comparison with the previous challenges for motivating the stakeholders for further improvement. It is very crucial to make the innovation process and system align with the organizational setting in order to enhance the adoptability and flexibility for future development.
SMEs internal resources necessary to ensure success
There should be several internal capabilities of the organization to successfully implement the innovation system in the organization.
Human Resources: The human resources of the Cafepod organization are the key aspect of the entire innovation management process. The innovation leaders and the potential management executives of this organization will ensure a flexible workforce that can efficiently adapt the innovation process and system utilization.
Without the effective collaboration of the existing human resources in the organization, the system-wide organizational setting cannot be successful (Grego-Planer & Kus, 2020). In this context, technologically experienced and skilled employees are needed to be involved if there is a shortage of technologically skilled personnel in the organization.
Financial capability: The financial analyst will evaluate the ability of the organization to install the IoT system across the organization. The expenditure in the innovation project will include the purchase cost, installation cost, training and development cost and servicing cost. The average IoT development cost in the UK is $50,000 excluding the training and development program, servicing and upgrading cost (Chaopaisarn & Woschank, 2019).
However, depending on the monitoring area and bandwidth along with features the cost will vary. As the company is struggling with its financial performance the company can generate the cost from the government investment in the UK.
Organizational structure: The organizational structure and culture have a major impact on the implementation process of innovative technology. The organizational policies and standards in the innovation process need to be developed in complying with the government policies and regulations. In 2018, the UK government published the Code of Practice for Consumer IoT security report (Pisar & Bilkova, 2019).
For the implementation of the IoT based system across the organization, this organization needs to ensure strong cyber security across the organization for the safety of the employees and the customers.
Other internal objectives: This organization needs to have several existing objectives for the successful implementation and running of the IoT system in the organization. The efficient marketing department, flexible workforce, and intellectual property rights need to be developed prior to the implementation process. The efficient innovative leader will identify the potential gaps of the organizational surrounding and can prepare the workforce accordingly to mitigate the gaps (Akhmetshin et al., 2019).
Brexit is leading to a shortage of labour that is needed for innovation management. This situation can slow down the innovation process process in the Cafepod. The company is facing issues in the supply chain as well and the greater chain has recurred. Moreover, the efficient marketing team will monitor the requirements and improve features of the IoT system through market analysis.
Moreover, the effective technician will examine the compatibility of the IoT system with the other technological features of the organization in order to mitigate any technological risk factor.
Critical evaluation of potential external challenges
There is a range of external factors that can create obstacles in the innovation management process of the IoT system in the Cafepod organization. These external factors include political, economic, market situation, state of suppliers, social situation and technological aspects.
Economic condition: In recent years the UK government is providing $8million to SMEs for adopting digital advancement or cutting-edge features of technology. But the economic condition of a country can create obstacles in the adoption of this new technological feature as due to poor economic conditions the government can withdraw such schemes.
As it has been stated earlier, the Cafepod organization is already facing challenges with financial issues (Kuratko, Goldsby & Hornsby, 2018). Thus, it will be a major obstacle if the economic support from the government gets affected due to poor GDP or unemployment rate.
Political condition: The changes in the policies due to the Bretix issue can create obstacles in the technological feature implementation in the organization in the UK. The implementation of the IoT system required proper licensing and intellectual property policy. Thus the lack of a settled political system, bureaucratic processes in licence generation can create obstacles in the installation of the IoT system in Cafepod.
It will also include intellectual property rights or legal protection through the license or payment to the potential government in order to mitigate the policy oriented issues. Thus, this organization needs to understand and follow the newly imposed policies regarding technological adoption with the help of expert opinion to mitigate this political issue.
Availability of suppliers: The availability of IoT system suppliers is the most crucial factor. Without an accessible supplier, the organization can face challenges in extracting components and updating necessities (Nechaev, Zakharov & Troshina, 2017). Moreover, the lack of experienced and skilled individuals in the labour market can create issues in the involvement of new employees required for the innovation process management.
Market evaluation: Without proper evaluation of market objectives can create further issues in the implementation process of this innovation system. It will be the responsibility of the marketing executives of the Cafepod Cafe Co organization to conduct a market survey in order to observe the benefits of the IoT system through the analysis of those SMEs that have developed this system already.
Social context: It involves the responsive behaviour of the customers towards the innovation system IoT technology. In this regard, the marketing department needs to employ a survey among the potential customers in order to understand the through and views of the customers regarding this technology adoption (Yu, Zhang & Shen, 2017).
Moreover, it will help the organization to understand the current needs of an eco-friendly packaging system that will also be adopted by the organization to ensure environmental safety and social preferences.
Digitized behaviour of the country: It is the most important aspect as, without a technologically advanced country environment, the Cafepod organization cannot access the IoT system in the organization. However, according to recent reports, the UK is the most emerging country in technological aspects.
Analysis of the potential influence of the organizational culture on managing the innovation process
The organizational culture that has the agility and potentiality to provide response towards the innovation management process can effectively provide safety to the employees. Moreover, the organizational culture should be motivated towards the creative thinking capability of the employees. For the implantation of the innovation system in the organization, it is very important to have a collaborative and better understanding among the employees as it is the main factor of boosting up the innovation management process (Bhatti, Basu, Barron & Ventresca, 2018).
Moreover, it is very crucial to develop necessary attributes and skills among the employees so that they can adopt and utilize the technology efficiently. The innovation leader will ensure a powerful organizational culture with the compliance of the government policies in order to get government support. The organizational structure and culture have a major impact on the implementation process of innovative technology.
After the installation of the IoT system in the Cafepod organization, the innovation leader will arrange meetings to show the success rate in comparison with the previous challenges for motivating the stakeholders for further improvement.
The efficient marketing department, flexible workforce, and intellectual property rights need to be developed prior to the implementation process. The efficient innovative leader will identify the potential gaps of the organizational surrounding and can prepare the workforce accordingly to mitigate the gaps
The organizational policies and standards in the innovation process need to be developed in complying with the government policies and regulations. Moreover, the utilization of the eco-friendly packaging of the products will move the organization towards the sustainable development process that is also going to enhance the ethical practices and better brand value of the organization (Haddad, Williams, Hammoud & Dwyer, 2019).
Thus, the adoption of the ethical organizational culture and practices will foster the organizational innovation management process.
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