BU7030 Managing Innovation Assignment Sample 2023
1. Innovation theory
Characteristics of innovation
The five characteristics of innovation are :
Relative advantage
It estimates how modified an innovation is over the last generation of services and products. Possible users or customers require to observe how innovation can improve their present situation. These innovations can be in several areas. These are better services, improved interface, increased productivity, users’ empowerment, decreased requirement for equipment supplies, increased customizability, reduced impact on the environment and many more.
Compatibility
Compatibility is the level of an innovation’s compatibility with people as they have comprehended it in their lives. Possible adopters are required to understand if the innovation is compatible with the individual’s lifestyle and life.
Simplicity vs Complexity
Simplicity or complexity is how tough it is for its adopters in order to learn in using an innovation. Complexity decelerates the progression’s gears. The more complicated an innovation, the tougher it can be for the probable adopters in incorporating it into their lives.
Trialability
Trialability refers to the description of how easily possible adopters have the ability to explore their innovation. It is critical in order to facilitate an innovation’s adoption. Possible users desire to observe what their innovation can give and do an examination prior to committing.
Observability
It is the extension according to which the benefits or outcomes of utilising an innovation are clear to the possible adopters. It expands beyond possessing previous adopters of every type and must evidently observe the advantage of an innovation’s adopting and utilising it.
Critical analysis of Tidd and Bessant innovation process
According to Ferreira et al (2009) innovation is essential in order to achieve social and economic success in the globalised business world presently. Furthermore, scholars also have to visibly define and completely develop and understand innovation (Björklund & Forslund, 2018).
Tidd and Bessant have contributed to the management of innovation by displaying an innovation model of five-construct to comprise organisation, networking, strategy, learning and process. Tidd and Bessant have offered a notable procedure of the innovation model. No studies have discussed this model’s application (Tidd, & Bessant, 2020).
This study has thus empirically tested the Tidd and Bessant’s managing model of innovation and has evaluated the level to which the model has adjusted to the sectors of business.
The author has stated that the innovation covers of the non-technologies have all types of innovation that involves those who do not exclusively pertain to the new technologies’ introduction, made important changes in services and goods and used new procedures (Hyland & Karlsson, 2021).
The innovation’s perspective differs as per the analysis and measurement, the focus of object, strategic considerations, the models and methodology and the inherent concepts. Research focus of the recent years has identified and characterised factors and firms to drive innovation. As per the Tidd and Bessant innovation model, measurement of the innovative capacities of the firms depend on the networks, strategy, processes, learning and organisation.
Many authors have studied strategic innovation. While learning strategic innovation the scholars have considered innovation like at the same time strategic and market-oriented. Scholars have posited strategy as the innovation’s inspiration (Igartua & Markuerkiaga, 2018).
The different studies have considered innovation to be the functional sum of innovative events practiced in the mutual stages of interrelation and consecutive procedures in their more innovation’s systemic vision, explaining innovation as a procedure that connects many different capacities and resources.
Tidd and Bessant Model has described innovation as a procedure inherent in the renewal of organisations, revival of services and products and the means of distribution and production. All businesses have tried to manage and organise processes related to innovation in order to generate and identify optimal solutions.
The innovation of organisation has involved the introduction of new technologies in managing the external and internal business relationships (Lin, 2018). Innovation in the environments of organisations importantly includes the decision-making, new technologies and redistribution of responsibilities that concerns the structuring and labor division of new activities.
The theories of management have emphasised the important connection between the learning and innovation in maintaining and attaining the competitive advantage. Researchers have defended this level report that the domination of learning all based on the innovative activities and the flexibility of the firms increases the process of innovation (Frankort & Hagedoorn, 2019). Performance, learning and innovation all interrelated positively.
The broadest and original approach to describe why the businesses cooperate is the view that is resource-based. As per the author, Wernerfelt has claimed that the collaboration of inter-firm is important in order to utilise the complementary resources. From this point of view, business represents the sets of resources and the most usual motive for the cooperative connections is the interdependence of resources.
Businesses collaborate through the other resources’ access, cooperation and reduction of uncertainty by firms. Especially, the resources of technologies describe the cooperation of firms considering the industry and market conditions.
Teamwork
Teamwork is the most essential for the business organization that helps to influence the employees’ growth, innovation, and productivity for future betterment (Yusliza, et al. 2020). Teamwork also helps to develop new innovations for business purposes.
It allows the employees to broaden their knowledge and skills to enhance the innovation process. Employees can gain productivity and creativity through the proper teamwork process that helps to build an effective innovation strategy for the business organization. Innovation is a process that requires proper teamwork to build effectiveness in business strategies. Teamwork is helping to share information and challenges among employees to complete the innovation process.
Project planning
The project planning for the innovation process is the most important aspect that helps to increase the proper way to increase business. The most important aspects of the project planning are to combine individual efforts of employees to enhance the innovation process and build connections among business objectives and opportunities for future betterment (Brix, 2018).
The proper evaluation of the project planning can enhance the business and also helps to achieve their desired goals from the targeted business market. The project planning for the innovation process can enhance the competitive advantages in the business market for the business organization.
The innovation process needs feasibility to enhance the business strategies and get the proper valuation from the targeted business markets. This project planning can help to enhance the criterias or requirements of the business organization to achieve desired goals from the targeted business markets. The innovation process is important for the business organization in which they can increase their competitive advantages in the business markets.
In that case, project planning helps to define goals, identify the risks, evaluate the unique and innovative strategies to enhance the business process of the business organization. Therefore, the organization can use project planning for the betterment of the innovation process.
Influence of the market on the innovation process
Securing competitive advantage
The innovation process helps to secure the competitive advantages for the business organizations in the international business market (Akhmetshin, et al. 2019). It also helps to build sustainable new ideas for the business organization that are out of the box and helps to enhance innovations and strategically oriented innovation management.
Market growth differentiation
Most business organizations have a threat to the new participants in a similar business market. The innovation process can help the organization differentiate itself from other organizations in a similar business market. Small product innovation can change the business style of a particular business organization.
Cost reduction
Most of the time innovation can add value to the products that affect the organization in a negative way. Innovation can introduce innovative products that can help to operate a whole business from home and help to reduce the cost of other resource consumption for business organizations.
Develop new markets and target consumer groups.
Innovation helps a business organization in the new market and target new consumer groups to run their business easily. Market innovation can help to rectify the new market penetration that affects positively through transferring technologies.
2. Innovation practice
2.1 Company context
Background of the company
Marshfield Bakery is a small- medium-sized business located in the United kingdom. This bakery business manufactures quality snack bars, seasonal goods, biscuits and handmade cakes that are distributed all over Europe and the United Kingdom. Marshfield Bakery has approached SWMAS for support.
This is because it will help the business to obtain an innovation strategy to penetrate the marketplace. This bakery business has around 45 employees and the estimated turnover rate is 2 million euros. Compared to the last year, this bakery business reported a Turnover minimization of -33.76% which is considered to be equivalent to 3.4 million
(Seubert, Stein, Taigel & Winkelmann, 2020). On the other hand, the Gross profit of Marshfield Bakery went down by -37.11% (664791). Marshfield bakery is an innovative bakery firm with a team committed to growing the company and looking for ways continually to enhance its operations. The main aim of this barkery company is to develop and identify several ways to fulfil the organizational potential to acquire new markets.
Analysis of the industry
The beverages and food industry all over the world is made up of several segments. Among those, a bakery business is also a part of it. The forecast showcases that the anticipated growth rate of the food and grocery market is expected to grow more than any other sector of the market. The export of food all over the world from the United Kingdom plays an important role in the economy.
It is exceeding 23 billion euro and is distributed to over 220 nations and territories all over the world. The market is expected to develop at a Compound Annual Growth Rate (CAGR) of 6.1% from 2019 and in 2023 it will reach around $7525 billion(Fitriani et al 2021). The food and drink industry is driven by the customer demand for better packaging and more nutritious food. It spurs technological advances in this platform.
Due to the growth of the beverage and food industry, it is propelled by the United kingdom. Thus, the economies of this country have developed and a large number of people have been lifted into the middle class.
Challenges the company faces
Marshfield Bakery is one of the best bakery hubs, because of the quality of ingredients used in their products. This bakery business ensures to provide a perfect treat to keep everybody happy by serving their food. On the contrary, this bakery business also faces several challenges in running the company. Likewise, Marshfield bakery serves very limited items to their customer which surely disappoints the customer.
Also, due to lack of innovation in their product menu, it impacts on capturing a wider customer base (Akakpo, 2019). On the other hand, due to the current economic loss that the company faced last year, this business has inadequate access to credit and finance.
Marshfield bakery also faces challenges due to its undeveloped sales channels. This bakery business can access its sales by using an eCommerce website which will help the company to gain a wider customer base.
2.2 Innovation in action
Description of innovation process
Innovative practices in the Marshfield Bakery can enhance its customer base as well as its sales volume. This organization can utilize Software as a Service or SaaS technology as an e-commerce platform in order to enhance its performance. As this company is facing financial losses for a few years, this software installation will give advantages to the organization with its cost-efficient features.
SaaS is a system that resides in a multi-talent environment or shared environment (Kuratko, Goldsby, & Hornsby, 2018). In this installation of SaaS software in the organizational setting, the software and hardware license cost are comparatively low. Moreover, with the installation of this innovative system, Marshfield Bakery can rapidly grow its customer base as this software allows the small to medium sized organization to utilize the benefits of an e-commerce platform rather than higher cost licensing and system installation process (Fallatah & Ikram, 2021).
Moreover, the maintenance cost of this software is also very low and this software provider itself splits among the customers to increase efficiency.
Basically, a SaaS solution that resides in the cloud environment has integrative and scalability with different futures. As compared to the other e-commerce site, the Marshfield Bakery does not have to purchase additional software or servers. The SaaS environment provides capacity planning features, flexible work environment and the user can also scale the system according to the business requirement.
Moreover, the SaaS provider upgrades the system and makes it available to the potential upsets and the cost of the modifications and upgrade features are also very low than the traditional ones. The main objective of using SaaS software is its easy-to-use features that will enhance the innovation practice and implantation in the organizational setting (Mwaniki & Ondiek, 2018).
However, this company can also include several innovative food products in their menu for gaining competitive advantages like Savory and Salty Muffins. Nowadays, different bakery organizations are manufacturing this food item as the consumers, especially the youngsters, like to purchase mealtime snacks.
Importance of leadership concerning the proposed innovation
Without the innovation leadership the efforts of implementation of the new software will face obstacles and may also fail. The innovation leadership is very vital in the organization as it supports, inspires and influences the innovative efforts and implantation process. The innovation leader fosters the adaptability of the employees in the changed environment through encouragement and motivation as it is the basic features of the workforce to show avoidance towards changes in the organizational setting (Haddad, Williams, Hammoud & Dwyer, 2019).
There are several leadership models that can be implemented with the innovation process installation in the organizational setting for managing the changes such as Lewin’s change management model or Kotter’s 8 step model.
In the change management process of the Marshfield Bakery, Kotter’s 8 step model can be utilized as the installation of the cloud based SaaS software is going to transform the traditional business environment into a system-wide setting. There are mainly eight steps of this model such as-
Creation of urgency: In this stage, the potential leaders and the manager of Marshfield Bakery will create a sense of urgency of the changes through showing the poor statistics of the financial performance of the organization and talking about the enhanced market competition in the bakery business of the UK (Boff & Cardwell, 2020).
In this stage, convincing, honest and open communication can create a sense of urgency in the organization.
Formation of coalition: In this stage, the leader will identify the true stakeholders of the organization and ask them to provide an emotional commitment. Moreover, team building activities will be taken into account to form a coalition through the evaluation of the different departments.
Creation of vision for innovation: The leaders will encourage the people to provide great ideas and solutions in order to make them involved in the change management process. In this stage, the leader will provide a description of the future of the company and the employees will think about the solution.
Communication in action: For the successful implementation of the innovative system in the organization, the leader will call up meetings to communicate the mission and vision of the proposed change (Pisar & Bilkova, 2019). Communication among the departments and the employees can foster the understanding and thus it can foster the innovation process in the organizational setting of Marshfield Bakery Limited.
Removal of obstacles: In this stage, the leader will identify the requirements of the employees and set a reward system for making the employees convinced with the organizational changes. Through the removal of the obstacles, the stakeholders will be empowered with the execution of the strategic innovation system installation.
Short-term win: The implantation of SaaS software is a sure-fire project and the installation process is so simple that the potential management executive can install it without the role of strong critics. After that, the leader will create short-term goals for motivating the people.
Innovation implementation: The achievement of short term goals will encourage people to achieve the long-term success of the organization and thus, the continuous improvement will be employed through skill development.
Anchor the innovation with organizational culture: After the installation of the SaaS software the managers will call up meetings to talk about the success story by showing organizational improvement (Rajan & Ganesan, 2017). It will encourage the key people towards the adoption of the innovation practice of the organization.
SMEs internal resource necessity to ensure success
Financial capability: The Financial experts of the organization will ensure the enough financial resources for the innovation management project. It will include the cost of the system, up gradation cost, training and development program cost and other associated costs. According to recent data, the average cost of having cloud based SaaS software in the organization will cost around $5000 per month including the up-gradate process (López-Bazo & Motellón, 2018).
However, depending on the bandwidth the cost may vary. As previously stated that the Marshfield bakery has a turnover rate of $2 million, it can afford the training and installation cost of this innovation system in the organizational setting.
Human Resources: The existing human resources of the Marshfield Bakery are considered as the key resource of the innovation implementation process. The flexible work environment that can adopt the organizational changing environment quickly is essential for the innovation process. Without the cooperation of the human resources, an organization cannot put the transformation into practice.
Thus, the potential management executive will ensure there is availability of the skilled and experienced employees that can take initiative in the change management process among the other employees (Singh, Akbani & Dhir, 2020). In this regard, skilled innovation leaders can be employed to foster the innovation process in the organization as shortage of qualified and skilled personnel can create hindrance in the cloud based organizational setting process.
Organizational structure: The organizational structure of Marshfield Bakery represents the mutual relations of the organizational components. Through the organizational norms and codes of conduct, the roles and responsibilities will be allocated among the employees.
Moreover, the cooperative organizational structure and flexibility of the workforce can reinforce the innovation practice and management. In addition to that the organizational norms that are influenced by the government policies and regulations can ensure a better place for innovation implementation on the Marshfield Bakery Limited.
The organizational structure of the Marshfield Bakery needs to be more focused towards its futuristic purposes for successful implementation of the process.
Other internal objectives: Other internal objectives that are necessary for the innovation process implementation in the organizational setting are effective research and development team, effective marketing department, knowledge regarding technology based processes and intellectual property rights.
With the effective Research and Development team Marshfield organization can understand the potential gaps in the business operation and the strategies to mitigate the gaps. Moreover, the efficient marketing department can monitor how the innovation process can meet the organization requirements by attracting more customer base.
It will also ensure the potentiality of the innovation project in the internationalization of the business process (Grego-Planer & Kus, 2020). Moreover, the organization needs to have technological surroundings so that the software can be implemented. In this regard, the compatibility of the software with the other existing technologies is tested by the technician.
Critical evaluation of potential external challenges
There are many challenges in the macro-environmental setting that can create challenges in the organizational innovation installation with SaaS software. The external factors that can create obstacles are follows:
Political condition: In general, the policies and regulations imposed by the government create challenges in the innovation implementation process. However, the installation of SaaS software requires very limited licensing objectives and thus this risk is lower. In addition to that, the lack of a properly settled national system in the UK and bureaucratic procedures can create obstacles in the innovation process of Marshfield Bakery business. Thus, this organization needs to adopt the associated policies and regulations with the involvement of a range of skilled personnel to reduce this external challenge. Another most important factor that can create a challenge
Economic condition: The economic condition of any country includes ranges of things such as GDP rate, unemployment rate, interest rate and so on. It can create challenges in the adoption of innovation for a SME like Marshfield Bakery Limited. It is essential to study the financial condition of the country before coming into the decision of the implantation of SaaS software as in the critical condition or if there is a poor economic condition of the UK, the potential government cannot provide support in the installation of the innovation project (Nechaev, Zakharov & Troshina, 2017).
Moreover, the imposed interest rate on the businesses in the tough times can create obstacles in the implementation process of the SaaS software as the company cannot bear the external cost along with the innovation cost at the same time.
Market analysis: The survey of the market competition and those organizational performances is necessary that are already utilizing the innovation software, SaaS in the organizational setting (Distanont & Khongmalai, 2020). The lack of knowledge about the market performance along with the innovation can create obstacles in the innovation implantation and running process.
State of Suppliers: The other major attribute the company should consider is the availability of the SaaS software provider or the components that are necessary for the integration of this software in the organization. Moreover, the lack of skilled and experienced human resources in the labor market can create obstacles in the implementation of the new system in the organization.
Technological advancement: It is very important to observe the UK has the potential for digitalization of business. According to the recent report, the UK is the most advanced country in technological perspective (Yu, Zhang & Shen, 2017). Thus, Marshfield organizations can easily adopt the technological advancement of the SaaS software with the compilation of related technological laws and policies.
Social context: Social context involves the responsiveness of the potential consumers towards the innovation of the organization. In order to mitigate this obstacle, Marshfield Bakery should conduct surveys in order to understand the requirement of the SaaS software implantation and public view. Moreover, the comfort-ability of the customers with the Innovative software is another key aspect of innovation management and implementation. In addition to that the requirements for the additional innovative food product that is Salty and Savory Muffins needs to be investigated by the potential activity of the marketing department through surveys and monitoring process.
Analysis of potential influence of the organizational culture on managing the innovation process
An organizational culture that has the potentiality and agility to respond towards the innovation process provides the employees a psychological safety and creative thinking capability that are required for the innovation management in the organization (Trott, 2017).
For a successful innovation management and implantation process, it is very essential to have a strong understanding among the potential stakeholders of the organization as it can foster the change management process. This type of understanding shows the employees and the other organizational bodies provide values to the customers and their expectations.
It is also very crucial to build innovation skills and attributes in the employees so that they can easily adopt the features of the innovation system (Adenuga, Kekwaletswe & Adenuga, 2018). Moreover, the communication and collaborative organizational culture can foster the innovation management process in the organization. However, the monitoring of the performance of the employees and the effectiveness of the software is also crucial to develop the innovation process successfully.
References
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