BU7030 Managing Innovation Assignment Sample

Introduction

• The presentation is based on LG
• LG has undertaken the development of Eco-conscious Home Entertainment:
• The presentation reflects upon the innovation and steps taken by the company for successful implementation

The following presentation would reflect upon LG and its latest range of eco-conscious home environment systems which includes its latest OLED televisions and sound systems.
Based on this aspect and the presentation would affect the area of innovation upon which the company is working and further shed light upon each of the innovative elements upon which the company is working to achieve sustainability.

Area of innovation

• Eco-conscious Home Entertainment (LG, 2022)
• Focus on sustainability
• Aims to improve living standards
• Sustainable product development (LG, 2022)

LG has identified that consumer goods and electronics have a substantial amount of carbon footprint linked with their production and use. In this regard, the organisation has formulated an innovative way to counteract these emissions and unsustainable operations that are linked with the use of electronics.

As a part of its eco-conscious home entertainment innovation, the organisation has focused on various areas to achieve sustainability and improve the standards of living. Not only that, but the organisation has also identified waste through which sustainable product development can be achieved.

Green product design

• Products developed using recycled plastic
• Eco product design certification from Société Générale de Surveillance SA (SGS) LG, 2022)
• LG OLED Evo C2 uses 60% fewer plastics than its predecessors (LG, 2022)
• The use of composite fibre material reduces overall product weight (LG, 2022)

The innovation extensively focuses upon a green product design where recycled plastic is used for manufacturing civil components of LG soundbars. Adding to that, certification from Société Générale de Surveillance SA (SGS) has been received by the company for its eco-product design.

The products are designed and manufactured using 60% less plastic which makes them more recyclable and lightweight due to the use of composite fibre material.

Waste recovery and recycling

• Products can be recycled at the end of their lifecycle
• LG OLED Evo C2 is made of fewer components which increases its recyclability (LG, 2022)
• Single colour printed packaging to minimise waste (LG, 2022)

Waste recovery is an essential aspect to achieve sustainability and in this regard, the organisation has ensured that all the products can be recycled once disposed of. Furthermore, the OLED TV is designed in manufactured by the company are made of fuel electronic components which enhances its sustainability even further.

Adding to that the colours used for packaging have been limited to one colour so that waste due to paint toxicity can be avoided.

Eco packaging

• Sustainable package for shipping
• Total elimination of styrofoam
• Only recyclable materials are used for packaging (LG, 2022)

Sustainable packaging and shipping have also been by the organisation as a part of its eco-packaging strategy.

As a result of this style of home has been totally eliminated from the packaging process and only recyclable materials are used for packaging which can be later recovered for recycling again.

Carbon emission reduction

• Energy-star certified (LG, 2022)
• The products would bear a carbon footprint label indicating fewer emissions
• Self-emissive displays less electricity thus less electricity consumption (LG, 2022)

Carbon emission reduction is another aim of this innovation based on which the products manufactured by LG are Energy Star certified which ensures that they consume less electricity while also being energy efficient.

That the products also bear a carbon footprint label which indicates that the carbon emissions of these products are fewer than their counterparts present in the market. Furthermore, the self EMIT displays on the OLED TVs of LG consume less electricity which again increases its sustainable output.

Target customers

• Environment conscious consumers (White et al. 2019)
• Customers focused on leading a sustainable lifestyle
• Customers living in urban areas

The target customers of the organisation are individuals who do not compromise on quality and are also conscious of environmental and climate changes. Apart from that, customers who are focused on a sustainable lifestyle would also be the key target customers of the organisation as a part of this new innovative strategy.

Role of management

• To ensure the development of the innovation process expands further and over other products of LG (Guo et al. 2019)
• To involve the workforce and increase collaboration to identify more ways to make the products eco-friendly
• Encouraging practices that foster positive and innovative working culture (El-Kassar et al. 2019)
• To continuously encourage and develop an environment that thrives on innovation and problem-solving attributes (Nurulin et al. 2019)

The role of management plays an important role in helping the organisation to achieve innovation in the development and in this regard the management play a major role in fostering an environment very innovation creativity and problem-solving are valued. Apart from that, the management of the organisation is also responsible for involving the existing workforce so that better ideas can be generated

External market analysis Political

• The political factors are growing extensively important in 21st century
• Political aspects are directly connected with business profitability
• Political relationship such as trade and pacts are essential for international business operation (Hong and Lee, 2018)

The entire context of business is entirely dependent upon political aspects of the nations. The more the government will be lenient with taxes and laws, the accessibility to the market increases.

In contrast, small political disruption can take away all the business opportunities for the existing companies. For justifying the statement, Brexit can be taken as an example which has entirely hindered the UK and EU relations and business laws.

Economical

• Fluctuation in economy can influence the international business operation
• Economic slowdown can severely impact on the customer spending
• The recent covid-19 pandemic has slightly shaken all nation’s economies (Batool et al. 2021)

The economic condition of a nation reflects the condition of the consumer residing there. Currently after the emergence of Covid-19, the economy has shaken up a little bit which might have resulted in economic slowdown. This reflected that the consumer purchasing pattern might have disrupted a little, which will influence the business operation of LG extensively. Furthermore, it is evident that the economic condition will impact on the profitability and production of the organisation.

Social

• Changing demands of the consumer can influence profitability
• Recent trends are inducing towards tech savvy products
• Marketing is the core area of influence in terms of successful business operation (de Sousa Oliveira and Luce, 2020)

Socio-cultural factors can highly influence entire organisational performance in the marketplace. In this relation, consumer behaviours are changing rapidly, thus with changing preferences, it can influence LG’s profitability along with new launches. With the emergence of Industry 4.0, consumers are being extremely tech savvy which has raised the adoption of technological products. Furthermore, marketing is playing the key role in making the brand successful and efficient.

Technological

• Technology is growing in serving customer according to their requirements
• Emergence of new technology can be highly efficient for LG and its innovations
• Technological adaptation is a means of competitive advantage (Yu and Zhang, 2019)

In the 21st century, technology is one of the aspects which is currently the latest buzz in the business marketplace. From marketing to consumer services, technology has taken over the entire business procedure which can undoubtedly usher great advantage to LG.

Technology has the ability to increase the sense of innovation and creativity in an organisation which also helps in business success with huge competitive advantage.

Performance improvement measures

• Utilisation of 360 degree feedback can be helpful in measuring performance improvement
• Adoption of quality and quantity metrics can be advantageous
• Gathering information about the current trends (Nisar, 2019)

In context to LG, utilisation of 360 degree feedback will be helpful as it will allow the organisation to collect a wide range of feedback which will be acquired by colleagues, direct reports, managers, employees and even customers. Apart from that, quality and quantity metrics will work for connecting the salesperson to the organisation by analysing number of sales, company visits, sales call and even effective gauge of quality with net promoter score (NPS).

Contd

• Adoption of Key performance indicators (KPI)
• Management by objective (MBO) process (Haseeb et al. 2019)
• Balanced scorecard as a tool for performance measurement

For having a continuous performance improvement, it is essential to measure the activities so that the innovation and productivity can sustain effectively. Through performance management, the organisation will be able to stay successful along with getting ahead in the competition.

KPI and balanced scorecard are those tools which effectively indicate the area of improvement along with identifying the potential strengths. Furthermore, with MBO it is entirely focused on the objectives which are required to be mitigated. The home entertainment solution of LG could become beneficial while following these aspects for measuring improvements.

Conclusion

• The following assessment is focused on the eco-conscious home entertainment by LG
• The growing demands of technological and sustainable products will surely allow LG with great success
• Various performance measurement tools are being incorporated

As per the above analysis and understanding, it can be stated that the approach of LG for eco-conscious home entertainment is a very unique idea which will help in reducing wastage along with prompting awareness. Apart from this, the customer perspective along with management aspects has been taken into consideration while being focused towards the external market. KPI, quality and quantity metrics, MBO and many more have been identified for performance measurement.

References

de Sousa Oliveira, D.M. and Luce, F.B., (2020). Is marketing department important for companies?. Revista Pensamento Contemporâneo em Administração, 14(3), pp.120-131.

Yu, X. and Zhang, B., (2019). Obtaining advantages from technology revolution: A patent roadmap for competition analysis and strategy planning. Technological Forecasting and Social Change, 145, pp.273-283.

Nisar, T.M., Prabhakar, G. and Strakova, L., (2019). Social media information benefits, knowledge management and smart organizations. Journal of Business Research, 94, pp.264-272.

Haseeb, M., Hussain, H.I., Kot, S., Androniceanu, A. and Jermsittiparsert, K., (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability, 11(14), p.3811.

Hong, S. and Lee, S., (2018). Adaptive governance, status quo bias, and political competition: Why the sharing economy is welcome in some cities but not in others. Government Information Quarterly, 35(2), pp.283-290.

Batool, M., Ghulam, H., Hayat, M.A., Naeem, M.Z., Ejaz, A., Imran, Z.A., Spulbar, C., Birau, R. and Gorun, T.H., (2021). How COVID-19 has shaken the sharing economy? An analysis using Google trends data. Economic Research-Ekonomska Istraživanja, 34(1), pp.2374-2386.

LG, (2022). Eco-conscious Home Entertainment: LG’s Latest OLED TVs and Soundbars Showcase Commitment to A Better Life for All. [Online]. Available at: https://www.lgnewsroom.com/2022/05/eco-conscious-home-entertainment-lgs-latest-oled-tvs-and-soundbars-showcase-commitment-to-a-better-life-for-all/ [Accessed 4 May 2022]

El-Kassar, A.N. and Singh, S.K., (2019). Green innovation and organizational performance: the influence of big data and the moderating role of management commitment and HR practices. Technological Forecasting and Social Change, 144, pp.483-498.

Guo, B., Paraskevopoulou, E. and Santamaria Sanchez, L., (2019). Disentangling the role of management control systems for product and process innovation in different contexts. European Accounting Review, 28(4), pp.681-712.

Nurulin, Y., Skvortsova, I., Tukkel, I. and Torkkeli, M., (2019). Role of knowledge in management of innovation. Resources, 8(2), p.87.

White, K., Hardisty, D.J. and Habib, R., 2019. The elusive green consumer. Harvard Business Review, 11, pp.124-133.

LG, (2022).  LG Electronics Honored by U.S. EPA as 2022 ENERGY STAR Partner of the Year. [Online]. Available at: https://www.lgnewsroom.com/2022/05/lg-electronics-honored-by-u-s-epa-as-2022-energy-star-partner-of-the-year/ [Accessed 6 May 2022]