CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
Companies of all sizes seek to be innovative and creative in order to gain competitive advantages, to increase growth and performances which in turn creates economic flows and dynamics that support labor and also the creation of new opportunities. Freel (2000) stated that innovators are more likely to experience business growth than non-innovators. According to (Harrison and Watson 1998), innovation and creativity may be one of the core competencies necessary for SMEs to survive and grow. In today’s globalized business environment, SMEs exert a strong influence on the economic growth and technological development of a country through their ability to innovate and create new products and processes
…show more content…
Innovation in products or services: Product/service innovation is oriented toward improving the features and functionality of existing products and services. Service innovation is about making changes to products that cannot be touched or seen and they are often associated with work and recreation (Rubalcaba, 2013). If Product life cycles become shorter business survival will depend on new product development and increasingly on the speed of innovation in order to develop and bring new products to market faster than the competitors (Jonash and Sommerlatte 1999). From a commercial perspective, the attraction of product innovations is that the novelty of a new product persuades consumers to make a purchase and these leads to an increase in effective demand which leads to an increase in profits..
iii. Innovation in management and work organization: Management innovation involves the introduction of novelty in an established organization, and as such it represents a particular form of organizational change (Freel, 2000). This type of innovation can also be referred to as the exploitation of human resources such as knowledge and skills, together with the capacity to foresee techniques.
2.6 Implications of innovation and creativity on business
…show more content…
The major tenet of this theory is that humans have six basic needs. These needs need to be met before one can thrive. Once these needs are met we can reach self-actualization and freedom to express in a creative manner. This theory argues that environment is not a factor in creativity. It implies that if the person is able to meet the six basic needs they can then choose to be creative. Creativity is central to our growth and learning processes and as such help us to advance ourselves within society. Believers of this theory believe self-actualization allows us to live a meaningful life and break out of social and cultural
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Tidd, J., & Bessant, J. (2011). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.
products, can go a long way to influencing businesses to initiate a change in their operation
creating a very different product line or service so that the business becomes a class leader in the
Innovation is connected to the three strategies described above but it often involves more important changes to the product or service. As a strategy, it can imply the replacement of existing products with ones which are actually new, as opposite to correction and which imply a new product
With the fast development of technology and globalization, the market becomes more competitive, and customers demand increase. As a result, companies such as Walmart, Target, Amazon, Costco, and Kroger were forced to implement new strategies and invest billions of dollars in technology to face competitiveness, increase market share, ensure leadership positioning, attract and retain its customers. Walmart innovation strategy relies on disruptive innovation. Consumer demand is changing all the time, and Walmart responsibility is to connect its products with customers whenever and wherever they are, so they can save money and live better (Walmart, 2016).
Today, advances in technology and design are providing many opportunities for new and existing businesses to re-invent themselves and their marketing strategies.
It is about having creative ideas, but to apply them to improve the quality of life, and defend them against the powerful force of social habits. This leads us to make a distinction between creating and innovating. A person can have an original thought but not put into practice we will never know if it can work or not.
“The quick pace of developing technologies and increasing competition can make it difficult to gain strategic competitive advantage through physical product alone. Customers are becoming more demanding. They not only expect excellent high quality goods; they also expect high levels of service along with them” (Lee & Carter, 2005:253).
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
The main objective of writing this paper is in practice, the management of innovative process takes into account the most important criteria that reflect the substance of innovation and arising directly from the definition of "disruptive innovation". Such criteria include the degree of novelty and substantive content.
Innovation is a new idea, device or process and can be view as the application for a better solution to meet new requirements, existing markets or needs that have not been articulated (Merriam Webster, 2016). Disruptive innovation is a process whereby a simple application of a product or service that starts at the bottom of a market, moves up in the market and displaces and established competitor (Christensen,
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.
Innovation is very important to the long term success of an organization. Therefore, it is essential to understand what innovation is. The Business Dictionary defines innovation as “The process
Innovation may be defined as exploiting new ideas leading to the creation of a new product, process or service. It is not just the invention of a new idea that is important, but it is actually