When you look at your cell phone do you ever ask yourself, how did they come up with this idea? There are companies that have systems specifically targeting innovation development; it allows employees to be in an environment that will help stimulate ideas for that will help enhance the company’s product(s). This type of system is called innovation architecture. According to ‘textbook’, “It’s a blueprint for strategic and industry transformation—an explicit and widely shared point of view about how the company will strive to differentiate itself now, and five to ten years into the future” (Dryer & Gregersen, 2009). This system is extremely beneficial to organizations because it increases their ability to enhance their product, that will fit …show more content…
How a company creates an innovation architecture is by taking a range of ideas, putting them into groups, and lastly sculpting the innovation architecture (Dryer & Gregersen, 2009). An innovation architecture should show organizations where they will be going and how are they going to get their (Dryer & Gregersen, 2009). Organization such as Nokia, Apple, and Nike have developed their own innovation architecture process that works for their organizations. Nokia is a well-known company in the technology industry, their goal like most companies is to find new opportunities of growth. In the 1990s, Nokia changed the process of the company to a new direction. They wanted to involve the entire company by creating an inclusive system that focuses on strategy innovation (Dryer & Gregersen, 2009) According to ‘textbook’, “As Chris Jackson, former head of strategy development at Nokia, put it, “By engaging more people, the ability to implement strategy becomes more viable.”” (Dryer & Gregersen, 2009, pg 155). It took team work, time, and strategy for Nokia to decide what type of company they wanted to become. Nokia created an …show more content…
Apple and Nokia, both value teamwork and having the company involved. Based of research, I have learned that innovation architecture can be very beneficial to companies and that not every company with have the same type of strategy. They all create one that they feel works best for the company. Innovation architecture, allows companies to take a lot idea, and narrow them down to what seems best for their targeted goals are for the future of the company. What process and system might actually stifle innovation and intrapreneurship are ones that are view as permanent, which does not allow the organization those companies to be open for change. They need to be opened for change within the innovation architecture because a new idea or direction may develop, that could benefit the companies’ enhancement and success. I also learned that innovation architecture takes time to create because it has to be a clear dialogue, that both the company can understand and has reachable goals. (Dryer & Gregersen, 2009). The type of structures or process I would use are the one similar to Nokia; which are created three themes that represent the foundation of the structure, to help narrow down ideas that are focus on the goals of the product(s). I would also want the culture to be diversified based off specialization, the environment
An innovative organizational structure is characterized by being flexible, adaptable, and open to experimenting with new ideas. Every aspect of their company can fit up under this organizational structure. Their lax in use of a formal hierarchy structure and excessive titles contribute to this reasoning. The emphasis they put on developing new ideas and using updated technologies also support this organizational structure.
Kelley,T. (2005, Oct.). The 10 faces of innovation. Fast Company, 74-77. Retrieved 6th March’ 2014 from http://web.ebscohost.com/ehost/detail?vid=9&sid=1d6a17b7-c5f7-4f00-bea4 db1d84cbef55%40sessionmgr10&hid=28&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=18386009
Innovation refers to changing, renewing or creating more effective processes or products. Unfortunately, innovation is conflated always with strategies, so understanding the differences between both concepts is necessary. While innovation is a messy business which creates novel solutions to important problems, strategy is a coherent and substantiated logic for making choices (Adegoke, 2006). In other words, strategy is achieving objectives and innovation is deal with discovery. Successful innovation in business should be an in-built part of business strategy and the strategic vision, where a person can create an environment and lead in innovative thinking and creative problem solving. For example, innovation in business would mean implementing new ideas, creating dynamic products or improving your existing services in order to be successful in marketplace. Moreover, innovation management refers to the management discipline of sufficient controlling the innovation process which occurs within the organization (Gray,2006). Normally, it’s applicable in developing product innovation. Therefore, it includes organized procedure that allows engineers, products, service designers and mangers to cooperate with each other with a common knowledge of the process involved and the goals to be achieved. Management of innovation focuses on how the firms will respond to an internal or external business opportunity and apply its creative efforts to introduce new processes products or novel ideas and it is related to development and research (Mariam and Fisher, 2008).
To compete in the global high-tech market, Mannerly envisages changing to a matrix organization structure, wherein managerial control will be shared by both product and functional managers (Jones, 2013, p. 426). In utilizing the matrix structure, the boundaries leading to subunit orientation are diminished, due to nominal differentiation, which allows for product teams to be agile in responding to customer demands (Jones, 2013, p. 427). Likewise, the matrix structure offers the opportunity for open communication, learning and development of all employees, which fosters innovation (Jones, 2013, p. 427). Additionally, the fluid structure of the matrix organization provides the ability to move employees with specialized skills and knowledge between product teams as needed (Jones, 2013, p. 427). Furthermore, the shared functional and product focus allows the product teams to invent quality products while the functional oversight keeps costs constrained (Jones, 2103, p. 427). However, the lack of a vertical bureaucratic structure can lead to role conflict and role ambiguity (Jones, 2013, p. 394 & 427). Similarly, financial resources are strained due to competition between the functions and product teams leading to infighting (Jones, 2013, p. 428). Moreover, the flexibility afforded in a matrix structure eventually results in stovepiping, as informal leaders build core competencies and resist knowledge transfer (Jones, 2013, p. 428). Also, the flexible structure becomes constricted and morphs to a mechanistic structure in order for management to gain greater oversight, as goal achievement diminishes (Jones, 2013, p. 428). The industry in which IBC operates requires continually creating new product. Therefore, Mannerly’s strategy in organizational change will allow IBC to use its core competency in innovation of high-tech products to gain a competitive advantage in the global market
On February 2011 Nokia, Inc., and Microsoft Corp. have announced plans for a “broad strategic partnership” under which Nokia will use Microsoft’s Windows Phone platform as a new operation system in it’s new smartphones. “Today, developers, operators and consumers want compelling mobile products, which include not only the device, but the software, services, applications and customer support that make a great experience,” Stephen Elop, Nokia President and CEO, said at a joint news conference in London. “Nokia and Microsoft will combine our strengths to deliver an ecosystem with unrivalled global reach and scale. It’s now a three-horse race.”
Nokia focused on building and sustaining its current competency in the early 1990s. NMP created valuable alliances across the industry and made key acquisitions to increase economies of scale, market share, and access to R&D resources. The management believed in the growing acceptance of digital technology as the uniform communication standard in the future. Nokia formed partnerships with AT&T, Alcatel, and AEG to further the development of a digital telephone and network.
And how does it affect the company’s overall performance? There are numerous types of innovation, with some to be outlined, while others discussed in the following paragraphs with various workplace scenarios. Process Innovation is something that most people are familiar with, in which
As NOKIA is a Finnish company so it has been regulated under Finnish laws as well as its Article of Association. Finland laws have been implemented on NOKIA with some exceptions that NOKIA’s restricted share plan does not include any criteria about performance but time based only. Granting of restricted shares plan is only applicable to retain investors for long term future and also the executive who are critical person for future success of NOKIA. This plan has been promoted to enhance the idea of employee- ownership. NOKIA’s Listing of shares in NYSE and in US Securities and exchange board law 1934.NOKIA complie...
closely with operators to lower the total cost of ownership and usage for consumers. Nokia had
This report is mainly based on the case study Emerging Nokia, using the frameworks and concepts we have learned to analyze the case. This report is divided into 5 parts, first is the summary of the case, the second part is about the competition Nokia faced, the third part is the factors that contributed to the success of Nokia, then the challenges Nokia may face in China and the recommendations to them and the last part is the conclusion of the report.
Basically transformation strategies are quite complicated because the process of innovation in any business environments will depends on it. We knows that in order to develop a business environment that supports the activities of innovation, most of the organizations will require an extensive changes in terms of the culture and systems of the organizational itself. The process can be difficult to achieve and also can caused disruptive, cost overflowing and time consuming. The innovation can give the potential of long term benefits but most of organizations more interested in short terms gains and cost reductions. The...
The innovation value chain is a concept that replicates the idea of transforming raw materials into finished goods except that it transforms innovative ideas into practice. This article introduces a new concept that we have not covered extensively, and seeks to answer the question of how firms effectively and efficiently implement these new ideas into their corporate strategy. The authors described the three steps of the innovation value chain as idea generation, idea conversion and idea diffusion. This article encourages managers to view the entire process of innovation from end-to-end and to improve the weakest parts of the process. Moreover, the authors’ state: "A company’s capacity to innovate is only as good as the weakest link in its innovation value chain". Hansen and Birkinshaw give excellent examples to fix the weakest links in the three step chain.
There are many reasons behind it but the foremost reason about this disruption is no innovations in the new products. Nokia have gained lot of success by sailing mobiles phones in earlier time period but later after 2007 to 2012 it stated falling down in the market due to its same products. Even after trying lot of innovations in their business models, all ruined because of lack of new ideas in their strategies. And by passing days all the rivals of Nokia passed and this gap of innovation get closed. The reasons behind this are described
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
1).Innovation Management:Innovation Management is the form of looking into future, of being creative, imaginative .It is used in the growth of product and also organizational innovation. It also includes tools which allows higher management & engineers to communicate with basic understanding of goals and its processes .Its main focus is to allow the organization to react quickly occurring within an organization, using its efforts to implement new ideas or its products. It also involves persons in contributing to the development of the companies manufacturing and also its marketing. Through development also innovation process can be done. There are two types of process involved in innovation management one is pulled and the other is pushed. Pushed process is the one in which the organization uses its technology to discover profitable applications. Pulled process is the one in which the focus is mainly in developing the efforts to find the solutions. There are two phases in innovation management .First phase includes design of the innovation and second phase includes the implementation. Internal bench marking can be established to measure the innovation. Managers should focus on ones attention on innovation cause to be necessary to infer something from information received on the complexity.