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Concept of Management of Innovation

University: ITCM College London

  • Unit No: 12
  • Level: Undergraduate/College
  • Pages 10 / Words 2500
  • Paper Type: Business Plan
  • Course Code: MGT603
  • Downloads: 0

INTRODUCTION

Innovation is known as the process in which enterprise add new features in its existing products in order to make it more useful. This increase attractiveness of product and influence large number of customers to buy the same (Franks and Vanclay, 2013). Today, to sustain in market for long run and to get competitive benefit it is very important for firm to implement innovation. Concept of management of innovation contain set of methods and tools that help managers to cooperate with common understanding of goals. Centlec, an electric utility company based in Bloemfontein, South Africa is taken in this report for study. Different barriers that come during implement innovation and alignment of innovation strategy with corporate strategy is all given in this.

Analysis of global and industry trends

Anywhere in industrialised world, sector of utilities and electric power find a one which is influence towards innovation and pulled to conserve. Both these goals seem to difficult, conflict but there is a harmony between these. Second one is come from, downturn in revenues of consumer energy on both sides of Atlantic. Mainly innovate and economise are the two trends in electric industry. Growth of revenue is continuous slowing and as per the EIA, this will remain same for the next coming years (Mehrabani and Shajari, 2012). All this reflect macro level trends, various reason are given by EIA for this downturn such as replacement of old equipments with new one, more efficient stock, implementation of efficiency standards, changes that place in technology, modifications in various appliances and lighting. Economic and demographic elements drive this trend consists slowing population growth and shift of economy toward less energy intensive sectors. Innovations that take place in power sector such as smartphone based apps, new storage battery options all are surprising adopters and developers as these are advancing at a high speed. Today, customers are asking for these type of products. In this situation, industry leaders integrate innovation with infrastructure and business operations on a fast speed. In this situation, a major challenge before Centlec is to close the demand gap and offer value to customers for generate more profits. With this firm can retain customers for a long time period. We also provide dissertation help services online to UK students

Factors that impact innovation strategy

Various elements are there that affect process of innovation and its strategy choose by firm. Management practices, resources available and organisational motivation all these are the elements that affect the innovation either positive or negative way (Lin, Che and Ting, 2012). These factors can be better understood by the following points:

Management practices: Practices and particular actions of company's management affect innovation that consists freedom in work practice, strategic goals, offer challenge, develop work teams that consists various type of skills and knowledge.

Freedom: This consists determine what to do and how to do, control and monitor on activities of an individual.

Challenging work: Sense of doing hard work on important projects and challenging tasks largely affect the implementation of innovation at workplace.

Managerial encouragement: When top management of firm serve a good and effective model of work, provide his support to employees, value contribution of individuals, show confidence then all this enhance creativity of employees and also increase its success chances.

Support of work group: A group of skilled and knowledgable workers help in develop a creative and unique idea and provide various other benefits.

Organisational motivation: This consists the following:

Organisational encouragement: An organisation culture that motivate employees to improve their creativity by provide healthy work environment and also provide recognition to them (Bon and Mustafa, 2013). All this boost up the process of growth and innovation.

Resources: It is very essential for employees to have the resources require to develop and implement innovation idea.

Sufficient resources: When staff members have easy access to appropriate resources such as materials, funds, information and facilities then this help in implement innovation in effective way and also support to get all benefits related with it.

All these are the major factors that largely affect the innovation and its implementation at workplace. In order to develop and effective innovative idea and to implement the same in enterprise in better manner, it is very essential for manager of Centlec to examine all these factors as this help identify right manner and right time to implement innovation.

Alignment of innovation strategy with corporate strategy

Company is creating innovation with the corporate strategy. Centlec performs innovation keeping the corporate strategy. It create innovation strategies and plans so that company can easily accomplish the objectives and strategies (Madhoushi and et. al., 2011). For example company's manager is creating a innovative idea and suggestion and this helps the company in achieving the goals and objectives. Thus as a result it can easily enhance the activities and thus it can easily maintain unique position in the market.

If company's objective is to provide electricity to all persons in less time then it has to create strategies according to this objective. Thus company can create a innovative plan to create such a technology so that it can provide electricity at a cheaper rate. Thus as a result they can deliver electricity to all people. Thus they can save the time and in less time electricity can reach to all users. Through this it can create various plans and policies and thus they cab easily accomplish theory objectives. Hence innovation is directly related to the corporate strategy.

It is very crucial that company is using various tools and techniques and thus it can easily enhance reputation. Through using of innovative tools it can achieve the objective that is to maintain good image in market (Donate and Guadamillas, 2011). Company can also use latest technology and tools as a innovative tool so that it can easily deliver electricity to all people living in all parts of world. Through these reasons they can easily accomplish all goals and objectives. Hence they can maintain positive image in the industry. 

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Innovations barriers and propose to overcome the same

Innovation barriers that require to be remove to enable staff members of Centlec to take the firm into growth. Following are the main barriers of innovation:

  • Traditions: Results of past should not be use by enterprise in order to forecast future success. Low barriers of entry and new technology have developed a cluttered playing field. It is essential for company to keep its traditions but those require to be align with the vision that a firm develop for respond to the changes take place in market.
  • Money: Huge funds are require by enterprise to implement innovation. Different type of research are carry out by research and development department of entity in order to identify the concept which firm wants to explore. It is very important for manager to examine the risk related with concept of innovation so manager can choose a better and effective idea. For implement innovation, it is very essential for Centlec firm to have adequate amount of resources.

Ways to overcome with innovation barriers

It is clear that enterprise face various issues while implement the concept of innovation and it is very important for company to deal with all in an effective manner for get all benefits related with concepts of innovation (Noruzy and et. al., 2013). For this, it is very essential for manager to create and provide healthy work environment to employees as this will enhance their creativity and help in develop a innovative organisational culture.

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Innovation enables:

  • Vision: This is known as one of the most powerful enabler of innovation. To create and maintain a competitive position, it is very essential that vision of firm should provide a competitive solution to help in deal with the issue of customers.
  • People: Innovation cannot take place without unique mind of individuals. Workers work in an enterprise are the one that develop creative ideas which support in provide featured and quality good to customers.
  • Resources: Funds are known as one of the most significant and important resource for implement innovation at workplace. Other than this, experience, time and equipment are also refer as effective source to implement innovation.

Model to illustrate the strategy

It is very important for manager of develop an effective plan and follow a strategy to implement innovation at workplace. Following are the key principles that should be consider by manager of Centlec to implement innovation:

  • Develop the customer in design of program: It entity wants to innovate something new then it is very essential for company to analyse it from customer's point of view as this increase the success chances of product (Keupp, Palmié and Gassmann, 2012). This help in attract and retain customers for a long time period.
  • Have an innovation strategy: it is very essential for firm to known why it is implementing innovation, is company wants to achieve growth or wants to enter in new markets. This provide direction to manager and also help in utilise all resources at and optimum level.
  • Utilise a combination of innovation models: So many models of innovation are there which can be utilise by manager to innovate successfully and generate more number of profits. With this, company can explore or develop more and at the same time can generate more number of profits.

Innovation is positioned

In today's business environment where needs and wants of customers change on a fast speed and everyday a new technology or software is development, implement the concept of innovation is an essential task for a business firm. No matter which is the sector in which company deal or what is the size of enterprise, innovation is become a essential part of every business firm. This is the only activity that help firm in attract more and more customers towards its products (Foray, David and Hall, 2015). Further, this make the entity different form its rivals and support in get a competitive position in market. In addition to this, number of other benefits are there which can be get a company after implement the concept of innovation. In this case, it is very essential for to manager to formulate policies and strategies that help in position the process of innovation as a business process. Innovation cannot be implemented at workplace without support of top management so top manager require to support the concept of innovation and also require to allocate proper funds so it can be implemented in an effective manner. Further, innovation is not a one time process, it should be implemented at workplace on continuous basis so company can utilise all resources and at the same time can attract customers towards its product.

Action plan to develop innovation culture

As innovation provide large number of benefits to company, it is very essential for manager of Centlec to develop and maintain a innovation culture at workplace. For this there are five steps that can be follow by the manager of firm:

  • Do experiment to generate idea: It is very important for manager to let the employees feel that they are open for innovation. This can be done by develop a designated place where staff members can be creative.
  • Give enough time to staff to work on ideas: Concept of innovation is something that require time and this the main reason why large companies are giving enough time to staff members to work on their projects (Johnston and Marshall, 2016).
  • Invest funds in idea generation: With the aim of truly innovate, Centlec require to develop and provide a culture that support new ideas and different ways to complete business activities.
  • Incentivise innovation: All the employees that perform well and do hard work to make the innovation a successful one should get a reward. This encourage them to think creatively.
  • Never fail to fail: Not every innovation idea get success and it is very important for Centlec to be ready for this.

Description of application process

Financial impact

While innovation there is need of funds which are raised fro internal as well external sources. In initial stage of innovation managers of Centlec has to deliver idea to people which are competent to market. This is effective to know what can be done through which change can be implemented effectively. When innovation is about some product which is not existing in market. So it is essential to deliver it in market. There are many sources through which managers of Centlec can raise funds, but this is necessary to analyse market and then select source. Some interest or commission is charged which are charged by bank or financial institution, so it is essential to use financial resources optimally.

There must be proper planning through which they can use funds for exact time. While making planning workers must also be aware of activities through which they can work according to nee of society (Noruzy and et. al., 2013). In innovation, there is requirement of some angel investors which help to know what can be through which changes are significant. Bank loans, share capital, debentures, angel investors, funds from relatives, peer members, ploughing back of funds, etc. are sources through which managers of Centlec can raise funds. Financial assistance is most important concept in company, so it is essential to work according to need and proper analysis. There must be research so source which has less interest rate can be raised.

Team performance impact

In association, there is need of various approaches which are effective for making changes in roles and responsibilities. It is important to know what can be done through which changes can be done and this helps to make innovation in effective and efficient way. As there is innovation in electricity supply, so it is essential to work in team so managers can achieve targets. This is essential to know what can be done through which changes are frequent and helps to alter plans and policies. Sometimes while implementing changes there is need of policies which could be significant for approaching changes. There is use of polices which are effective to know what can be done to get positive outcomes (Donate and Guadamillas, 2011). There is need of motivation to workers so positive results can be generated and this helps to make changes inn roles and responsibilities of workers.

While framing team there is need to analyse skills and qualities of workers so this helps to perform innovation operations effectively. In team operations must be delivered to every person, so there will involvement of everyone. In case of delivering information then it must be deliver to every person, so this helps to make proper chain which helps to delivering actions. Team leader must provide appropriate guidance and directions in case of need so this helps to get positive results. If results are positive then this must be reward and recognition to team mates, this boost their morale and the work with full efficiency. While in case of negative result, proper analysis must be done and find area of flaws and corrective actions must be taken.

CONCLUSION

From the given project report, it can be summarised that various factors are there which affect the concept of innovation and its implementation at workplace. Manager is the one who remain responsible to encourage employees to think creatively so company can firm can manufacture and offer featured products to its customers. Enterprise should have all the resources require to develop and implement innovation so it can get a competitive position in market.

REFERENCES

  • Bon, A.T. and Mustafa, E.M., 2013. Impact of total quality management on innovation in service organizations: Literature review and new conceptual framework. Procedia Engineering. 53. pp.516-529.
  • Donate, M.J. and Guadamillas, F., 2011. Organizational factors to support knowledge management and innovation. Journal of knowledge management. 15(6). pp.890-914.
  • Foray, D., David, P.A. and Hall, B.H., 2015. Smart specialisation. Routledge.
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