Managing Innovation

Innovation can be referred to as the â€Å"incorporation of new ideas or new methods used in business with the intention of winning customer loyalty† (Klein). Innovation is an important process in any company since it helps in evaluating the performance the firm (Ettlie 74). For any company to survive in a competitive market, it must have effective strategic management policies. This can be achieved by focusing on innovation within the firm.Advertising We will write a custom essay sample on Managing Innovation specifically for you for only $16.05 $11/page Learn More Managing innovation enables managers to gain the knowledge that will enable them to manage their businesses in a given business environment. The knowledge gained through effective management of innovation facilitates the development of products that meet the expectations of the clients. The level of competition in the modern market is very high (Adam 73). Thus firms should be in a posi tion to identify and take advantage of the weaknesses of their competitors. One of the most important factors to consider when analyzing the level of competition in the market is the level of innovation. All firms need to incorporate new ideas in their operations in order to survive in the competitive market. This is because the level of technology changes everyday and new products are brought into the market on a daily basis. Companies that intend to have the best reputation in the market must upgrade their level of innovation (Adam 82). Innovation is a process of â€Å"thought change since its main intention is to come up with new ideas† (Adam 87) that can be implemented in the market. There are several types of innovation. However, they all focus on the development of the organization through new ideas and strategies (Adam 91). Innovation can be disruptive or sustaining (Adam 97). When analyzing the types of innovation, much emphasis is usually put on disruptive innovation since it is the most important as far as business is concerned. Innovation is a long process that occurs in stages or phases within the organization. For example, the development of a new product begins with the thought process. This is followed by the manufacture of the product and ends with the marketing of the product. The process of innovation thus begins with the thought process. This involves developing a vision of what is to be achieved. Innovation is therefore considered to be â€Å"the incremental or radical changes that take place in an organization† (Bessant 67). The changes relate to the manner in which decisions are made, the production of goods and services and the distribution process. The advancement in technology focuses on improving all aspects of a business in the modern economy through innovation (Klein 101). According to Pixar seminars, managing innovation is a very important process since it facilitates growth and resilience. The second stage of managin g innovation is more advanced and involves the implementation of the new ideas (Harvey 65). Thus at this stage the new ideas are â€Å"transformed into actions that are important for the survival of a firm in the competitive market† (Ranchhod 87). At the implementation stage, the management must provide the necessary resources. This is because lack of adequate resources can undermine the firm’s ability to realize its innovation objectives (Ettlie 89).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Apart from the financial resources, the firm must invest in appropriate technology that will help in the implementation of the innovation plan (Ettlie 90). This can be achieved through an assessment program that aims at identifying the technical weaknesses in the organization. Outdated technologies should therefore be replaced with new ones. Besides, there should be on-the-job train ing programs that aim at improving the competence of the employees. Entrepreneurs who focus on innovation in their businesses are able to increase their rate of production in their respective industries. The increase in production is attributed to the high level of efficiency, cost saving and creativity that is associated with innovation within an organization (Bessant 103). Managing innovation might only be possible if the managers in a given firm have the skills and knowledge that enables them to inspire their employees to be initiative. This means that the process of managing innovation is not only the responsibility of the management team. The process must bring together all members of the organization and the potential clients (Harvey 78). The perspectives of all the concerned parties should be considered. Due to the large number of employees within an organization, the suggestions concerning the expected changes will definitely vary or even contradict each other. Thus the orga nization must develop an evaluation mechanism that will be used to vet the ideas presented by all individuals who are involved in the innovation process. Only the best ideas should be chosen and implemented by the organization (Bessant 114). It is not possible to implement all ideas due to lack of sufficient resources. A company is considered to be the pioneer of innovation if it succeeds in overhauling its production and distribution processes ahead of other firms in the industry. This will enable the firm to improve its competitiveness in the industry (Ranchhod 99). Consequently, the firm’s revenue will increase as it increases its productivity and market share. However, with time other firms in the industry will begin to restructure their operations in order to remain competitive. As firms reposition themselves in the industry, the competition in the market becomes more intense. Thus, firms will begin to focus on product differentiation with the aim of positioning themselv es as the best in the market. The most important tool in managing innovation is research and development. The decisions made at each and every stage of managing innovation must be supported by adequate and relevant research. Engaging in research at every stage of managing innovation will help in making the right decisions that will help the organization to achieve its objectives (Ettlie 100).Advertising We will write a custom essay sample on Managing Innovation specifically for you for only $16.05 $11/page Learn More Reviewing research findings on particular issues concerning innovation can help in solving a dilemma. Decisions that are based on facts are likely to be more effective and will help the organization to achieve its objectives. Works Cited Adam, Jolly. Innovation: harnessing creativity for business growth. New York: Kogan Page, 2003. Print. Bessant, John. Innovation and Entrepreneurship. New York: John Wiley and Sons, 2007. Print. Ettlie, Joh n. Managing Innovation: new technology, new products, and new services in a global economy. New York: John Wiley and Sons, 2007.Print. Harvey, Dershin. â€Å"A framework for managing innovation.† International Journal of Business Innovation and Research 4 (2010): 598-613. Klein, Stefan. Managing dynamic networks: organizational perspectives of technology enabled inter-firm. Frankfourt: Birkhauser Publication, 2006. Print. Ranchhod, Ashok. Marketing Strategies: A Contemporary Approach. New York: Prince Hall, 2007.Print.Advertising Looking for essay on business economics? Let's see if we can help you! 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