Assignment Sample on BFA441 Creative Enterprise and Innovation
Introduction
Constant improvements are extremely necessary in order to become more efficient and productive in any field and in today’s highly competitive world, it has become crucial to create and innovate on a constant basis. Creative innovation empowers an organization to motivate the employee to perform better and efficiently. On the other hand, it may be added that creative innovation strategies and policies are also responsible for generating new opportunities that will definitely boost the growth and development of a company or an organization. Additionally, it may be stated that almost all of the reputed organizations are focusing on sustainable development plans where profit making is not the only concern of the companies.
Sustainable business models help in achieving organizational goals and targets without compromising on the environmental issues which are ultimately beneficial for people and the planet. However, it may be asserted that sustainable creative innovation requires a lot of expertise, skilled leaders and financial resources to drive the desired changes. The transformation of creative and innovative ideas into commercial success has become the prime concern of the modern enterprises which will bring revolution in the field of business. In this report, a detailed discussion will be made on the several aspects and importance of creative innovation strategies and the ways in which it benefits an enterprise or organization.
Theories related to sustainable innovation processes in order to gain competitive advantage
Innovation and creativity are one of the pillars on which the success or failure of a company depends to a great extent. It may be asserted that without creative innovation strategies an enterprise will face stagnation which is harmful for any organization as it leads to downfall sooner or later. The evolution of powerful digital technologies, digital platforms and digital infrastructures has brought significant changes in the field of business and entrepreneurship (Nambisan et al., 2019). It may be asserted that innovation may be divided into two parts namely open innovation and closed innovation. In case of closed innovation, the entire process of innovation takes place within a company or an organization where the members and employees of the company are involved and no external organization or authority is involved in the process. Creative as well as innovative ideas are shared within the company to develop sustainable innovations which will help the company in gaining competitive advantage. The innovation process, the development of a new product or service and its marketing is done by the employees and staff of the company. Along with this, it may be added that a closed innovation is carried out in a self-contained company environment. In close-ended innovation, companies usually allocate a good amount of financial resources in its internal research and development (R&D). Apart from this, it may be argued that closed innovations require highly qualified individuals and companies have to hire skilled individuals with high intellectual capability for carrying out closed innovations successfully.
On the other hand, it may be implied that open ended innovation is another process of creative innovation where external knowledge is widely used in the entire innovation management framework. Most of the on-going innovation processes are open-ended which has brought evolution in the technological sphere (Bedau et al., 2019). It may be mentioned that in the open innovation process, companies interact with other industry experts who includes several technical universities, research agencies, competitors, customers and suppliers. They all contribute in developing and framing sustainable innovative strategies for better performance and productivity. Moreover, it may be stated that open innovation processes often require a huge financial investment in order to buy certain licenses from other companies and universities in order to get relevant information. However, it needs to be mentioned that no company allows open access to all the organizational data and restrictions are imposed on other companies or agencies while working collaboratively on a particular project. Companies only allow collaborative networking and for example it may be mentioned that IBM has successfully implemented open innovation. IBM InnovationJam is a platform which works collaboratively on a network basis with other universities and countries which becomes a cost effective way to carry out innovations and implement them in improving the output of the company along with increasing its reputation (Ibm.com. 2021). This process also helps in achieving the desired goals without sharing unnecessary data of the company with external participants. On a contradictory note, it may be added that open innovations are becoming more and more popular due to some reasons such as the availability of venture capital is increasing, the availability of skilled and qualified employees are increasing and the number of competent customers and specialized suppliers are also increasing. It may be opined that the organizational environments are constantly evolving which supports development of innovative strategies. Digital innovation has introduced a new open-ended value landscape to everyone who is seeking to generate or capture new value (Henfridsson et al., 2018).
Open-ended innovations are significantly increasing in the field of business where sustainable innovation is becoming quite popular and widely practiced due to its several advantages. It may be mentioned that companies may continue close ended innovations along with open ended innovation processes which will definitely increase the productivity and performance of an enterprise in the long run. In addition to this, it needs to be argued that if technologies are closely interlinked, the open innovation process may give rise to some threats and issues which may harm the entire innovation process. Inclusion of inappropriate and unnecessary elements will definitely affect the innovation process negatively which will ultimately impact the quality of products negatively. It needs to be asserted that some major technological companies such as Apple always focus on a highly integrated and coordinated product range and thus rely on a closed innovation process (Apple. 2021). Furthermore, it may be stated that Apple does not want to share its fundamental technologies with its competitors in order to gain competitive advantage in the global market and adhere to a closed innovation process.
Figure 2: Sustainable innovation
(Source: Cillo et al., 2019)
Innovation and the concept of sustainability have become closely linked to each other for gaining competitive advantage in the global business market where customers have become aware of the environmental issues and prefer companies that offer sustainable products. In order to achieve sustainable development, sustainable innovation is extremely vital where companies focus on aligning their organizational goals with the goals associated with social and environmental development (Cillo et al., 2019). It may be asserted that in order to stand apart in the industry, every company or organization is aiming to adopt a sustainable approach in expanding the business activities. On a broader note, it may be mentioned that the use of alternate sources of energy is one of the most important aspects that needs to be implemented where use of wind energy or solar energy is to be adopted and taken into large scale use. Additionally, it needs to be argued that sustainable innovation helps in attaining sustainable development goals through reducing the use of plastics, synthetic raw material, reducing the amount of waste products, recycling the waste products and analysing the needs of the customer in order to produce eco-friendly products. The global economy is using natural resources extensively which has increased the levels of environmental pollution due to commercial activities which has made it inevitable to transform the existing business models and innovative strategies to restore the degrading conditions.
Essential leadership skills necessary for driving innovation into organizational culture
It may be stated that the role of leadership is extremely crucial in the development of a company where several innovative ideas are used for the growth of a company. Effective and efficient leaders act as catalysts in the process of innovation which impacts the organizational culture in a positive way. On the other hand, it may be mentioned that autocratic leaders do not accept the views and opinions of others which creates organizational conflict which is harmful for the entire innovation process of an enterprise. The role of good leadership has been becoming vital in order to survive in a highly competitive global business environment (Semuel et al., 2017). However, it may be asserted that transformational leaders as well as ethical leaders pay attention to the view of the others and respect the views and perspectives of the employees which is important for maintaining a healthy organizational culture. Moreover, it may be added that successful leaders lead with a vision of the future and they inspire others to become more productive in their actions during the time of creative innovation. In addition to this, creative leaders always encourage to think out of the box and generate positivity among the employees which impacts organizational culture in a positive way. Thinking out of the box encourages and inspires the employees and staff to express their views which helps in developing innovative strategies which are entirely new and full of possibilities.
Innovative leaders are often energetic, confident and possess extraordinary self-awareness which plays a significant role in the entire innovation process. Due to their positive and optimistic mindset, innovative leaders are able to handle pressure and stress easily which translates into organizational success. Apart from this, it needs to be pointed out that leaders who inspire innovation always ask relevant questions to the employees to get a clear idea whether they have understood the concept or subject concerned with the process of innovation. Innovative leaders avoid any sort of ambiguity before starting any project and analyse the various risk factors that are involved in the process of innovation which may have a negative impact on the organization. Adaptability is one of the most important aspects of an innovative leader which helps to accept situations and circumstances during the course of sustainable innovative projects. Furthermore, it needs to be asserted that innovative leaders are focused on achieving sustainable development and thus they align organizational goals with sustainable innovative strategies which brings a noticeable change in the organizational culture.
However, it may be undoubtedly stated that innovative leaders are required to be calm and patient as they have to deal with unfavourable situations and have to attempt the same tasks repetitively for achieving sustainable development goals in the future. Patience and perseverance are the two vital characteristics of an innovative leader which boosts the entire innovation process of a company or an organization. Leadership has been recommended as one of the most inspiring factors which influence an employee’s behaviour and performance (Bagheri, 2017). Additionally, it may be argued that managing the diversities of a group or a team is a challenging issue which a leader has to manage in order to maintain a healthy organizational culture.
A reflection of the characteristics essential for enhancing entrepreneurial creativity and innovative mindset
I have realized that with the help of an effective and efficient leadership a company may certainly attain its goals and targets within a specific period of time. I have felt that great leaders keep a check on their ego and they treat everyone equally where small attempts are appreciated and appraised. It may be asserted that appraisals and encouragements motivate employees to a great extent which has a positive impact on the overall organizational culture of a company. I strongly believe that the success or failure of a company to achieve sustainable innovation depends on the character, behaviour and skills of the leaders and the role of the leaders may not be overlooked or underestimated at any cost.
Transformational leadership enhances innovative capabilities of the employees through optimism and self-efficacy (Lei et al., 2020). On the other hand, I may assert that most of the organizations are focused on transforming their business models which will enable the companies to attain sustainable goals and the role of innovative leaders is truly essential in attaining this goal. However, it needs to be implied that the role of the innovative leaders is not limited to developing innovative technologies or products, they are also required to maintain a healthy organizational culture which will further boost the development and progress of an enterprise.
Accounts and findings of the organization
Amazon is an American multinational company which primarily focuses on e-commerce, cloud computing, artificial intelligence and artificial streaming and the company has its headquarters in Seattle, Washington, U.S.A. The company was founded by Jeff Bezos on July 5, 1994 in Bellevue, Washington, U.S.A. Jeff Bezos is the present Chief Executive Officer (CEO) and chairman of Amazon and the company has 1,298,000 employees throughout the world (Amazon.com. 2021). Amazon is the world largest online marketplace and the company is expanding at a rapid pace throughout the world. It may be asserted that Amazon aims at expanding its business globally and in order to meet this goal the company has taken several initiatives and it constantly improves its existing strategies. Innovation denotes a process where a company enhances its performance through constant improvements, inventions and discoveries (pozo et al., 2019). Amazon has some strong positive aspects which helps the company to carry out its innovative developments (Amazon.com. 2021). On a contradictory note, it may be implied that the company has some weaknesses that are required to be resolved so that Amazon may further improve its organizational activities and business operations globally.
However, it needs to be asserted that Amazon has a strong network management system which allows the company to function smoothly in all the parts of the world and it has also an extremely well organized supply chain system which ensures that products are delivered on time and without any type of damage. On the other hand, the company lacks in the number of strong and effective leaders which often creates unwanted issues related to innovation management. It may be opined that a company of global repute such as Amazon, is required to pay attention towards its leadership roles which is extremely vital in order to make and implement strategic innovative policies. Strategic innovative policies will definitely help Amazon to achieve sustainable development goals where the company will transform its business model and make policies according to the environmental laws and regulations imposed by governments of several countries and provinces. Furthermore, the company needs to pay attention in improving its supply chain system as the supply chain system faces certain issues during any festive season when the pressure of orders increases to a great extent. Transforming towards a sustainable green supply chain will definitely provide the company a competitive advantage in the global market. Apart from this, Amazon is required to focus on improving its waste management system which functions quite efficiently yet it may be developed further through implementing innovative strategies such as recycling the waste products in a more efficient way (Amazon.com. 2021).
Along with this, the company needs to pay attention towards leadership roles which will provide an added advantage to the company in maintaining innovative as well as creative approaches towards sustainable development. Apart from this, Amazon has a vast number of employees and effective communication is to be maintained where the flow of necessary information is to be ensured during any collaborative innovation process regarding improving the online transactions. Furthermore, it may be asserted that the company is also required to give attention towards its innovative marketing strategy so that the customers may get necessary information about the products and services that the company offers. Marketing plays a vital role in increasing the sales of a company and Amazon is no exception to it where the company needs to invest a good amount of financial sources for research and development of new innovative marketing strategies. Implementing an effective marketing strategy has become a truly challenging task in today’s highly competitive as well as dynamic business environment (Wang and Wang, 2021).
Conclusion
From the above discussion, it may be clearly concluded that in order to maintain a good brand image and brand worth in the market, any company or organization is required to invest time as well as financial resources to develop a strong and effective innovation strategy. Additionally it may be stated that due to lack of an effective innovation strategy, a company will find it difficult to survive in the global market where other companies are constantly improving themselves to gain a competitive advantage. Finally, it may be implied that sustainable innovative strategies and approaches will definitely help a company or an organization to achieve its desired goals and targets in the long run.
Recommendation
The following recommendations will be effective in the course of developing creative innovations for an enterprise:-
- A company should focus on developing an effective and efficient leadership style in order to maintain a healthy organizational culture and innovation strategy
- An organization should give emphasis on innovation processes which will enhance the productivity of an organization
- An enterprise should allocate good amount of financial resources to carry out all the research and development programs smoothly
- Any business firm should pay attention towards developing innovative strategies by aligning them with sustainable development goals
It may be asserted that in order to gain competitive advantage in the present business environment companies should rely on sustainable innovative strategies which will increase the productivity and quality of the products. On the other hand, companies should invest a good amount of financial resources so that the research and development works may be accomplished successfully. Along with this, enterprises should pay attention towards the leadership roles which is an extremely vital factor for attaining organizational goals and achieving sustainable innovative strategies along with maintaining a healthy organizational culture. In addition to this, it may be mentioned that attention to marketing strategies should be given in order to understand the present trend of the market and develop products according to the needs and requirements of the customers. The success of a company depends on an effective marketing strategy and companies should recognize this fact for their own benefit.
References
Amazon.com. 2021. [online] Available at: <https://www.amazon.com/> [Accessed 25 June 2021].
Apple. 2021. Apple. [online] Available at: <https://www.apple.com/> [Accessed 25 June 2021].
Bagheri, A., 2017. The impact of entrepreneurial leadership on innovation work behavior and opportunity recognition in high-technology SMEs. The Journal of High Technology Management Research, 28(2), pp.159-166.
Bedau, M.A., Gigliotti, N., Janssen, T., Kosik, A., Nambiar, A. and Packard, N., 2019. Open-ended technological innovation. Artificial Life, 25(1), pp.33-49.
Cillo, V., Petruzzelli, A.M., Ardito, L. and Del Giudice, M., 2019. Understanding sustainable innovation: A systematic literature review. Corporate Social Responsibility and Environmental Management, 26(5), pp.1012-1025.
Henfridsson, O., Nandhakumar, J., Scarbrough, H. and Panourgias, N., 2018. Recombination in the open-ended value landscape of digital innovation. Information and Organization, 28(2), pp.89-100.
Ibm.com. 2021. IBM – United States. [online] Available at: <https://www.ibm.com/us-en?ar=1> [Accessed 25 June 2021].
Lei, H., Leaungkhamma, L. and Le, P.B., 2020. How transformational leadership facilitates innovation capability: the mediating role of employees’ psychological capital. Leadership & Organization Development Journal.
Nambisan, S., Wright, M. and Feldman, M., 2019. The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), p.103773.
Pozo, H., Akabane, G.K. and Tachizava, T., 2019. Innovation and technology processes in micro and small business. Cogent Business & Management, 6(1), p.1588088.
Semuel, H., Siagian, H. and Octavia, S., 2017. The effect of leadership and innovation on differentiation strategy and company performance. Procedia-Social and Behavioral Sciences, 237, pp.1152-1159.
Wang, G. and Wang, Y., 2021. Innovative Marketing Framework for Enterprises Using Edge-Enabled Data Analysis. Mobile Information Systems, 2021.
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