O'Connor et al. (2008) point out that the lack of consensous about the innovation concept itself tends to generate confusion between work teams. This problem is also associated to the slowness and failure to achieve an innovation capability by the organizations. Nelson e Winter (1982) defends that any modification in a product or process without previous experience can be understood as an innovation. For Bessant e Tidd (2009), the theory around innovation process (i.e. Cooper’s stage-gates) were developed based on technological innovations, particularly from the industrial sector. This article adopts the concept proposed by the Innovation Report (DTI, 2003) which define innovation as a successful exploration of new ideas, involving new technologies or applications and its importance to product and service generation, new production process, more efficient or cleaner business models.
Other authors classify innovations according to its intensity, as basic, intermediate incremental, advanced incremental, architectural or radical (FIGUEIREDO, 2009). This differentiation is useful for organizations as they can model its internal processes and allocate its resources depending on the innovation type (BAGNO, 2014). Bessant et al. (2005), for example, recognize that radical innovations demand different flows and organization elements when compared to
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Organizational competences and operation excellence factors are no longer sufficient to ensure companies’ survival as they were in the past (TEECE, 2007; GIBSON, 2010). Teece (2007) argues that the company success is strongly attached to opportunity discovering and development, combination of previous inventions generated inside or outside the company, technology transfer between companies, intellectual property protection, new business processes practices, impartial decision making and protection to rivals’
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.
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
Utterback, A. M. (1996). Mastering the dynamics of innovation. United States of American: Harvard Business Press
Schumpeter’s view of competition is that companies’ innovation is continuously destructive to processes and assets. In that respect, new technologies displace the older ones making way for greater growth than in the conservative and stable markets. The authors’ review of the failure by IBM and Microsoft provides a good description of that Schumpeterian competition and diseconomy of scope. In that analysis, the author’s address the question on the causes of creative destruction through which they challenge the view that failure in new technological areas by companies that have been successful in theindustry is explained by two scenarios. One being that the companies fear the cannibalization hence ends up under-investing in the new market. The other explanation challenged is that the companies tend to develop cognitive frameworks and organizational capabilities that slow their identification and response to new opportunit...
Hendersern and Stern 2000, ‘Untangling the origins of competitive advantage’,Strategic Management Journal, Vol. 21, pp. 1123-1145.
of a firm to attain new forms of competitive advantage (Müller, 2011). It is due to these
The core competence plays a key role in a business performance, and it also drives a business’s competitive
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
This definition has extended the power of the theory to explain different types of disruptive innovations across a wide range of industries (Schmidt and Druehl, 2008).
Barriers against current and potential competition should be strengthened through reinvestments and periodic reviewing for new sources (Bhardwaj et al, 1993). Firms should guard against confines like cognitive sunk costs, competency traps and cultural rigidity coming from the norms, beliefs, culture, politics and regulatory pressures in and around the organization that govern socially acceptable behaviour by ensuring that the institutional capital context surrounding resource capital is noted and managed (Oliver, 1997). Organisations should be cautious against going into extensive periods of strategy formulation by observing the length of competitive advantage cycles in light of transient advantage (McGrath, 2013) and also mind the existence of hypercompetition where advantages like innovation will be eroded away by newer firms (Wiggins & Ruefli,
This strategy emphasizes the use of an organization’s resources and capabilities to achieve a core competence that cannot be imitated by competitors. Furthermore, the resource based school argues that if an organization distinctively improves its internal capability; that is being able to have effective inside machinery to deliver products and services to customers, the organization will enjoy a massive advantage in the market. This school also argues that in order to have a competitive advantage, an organization must have resource and capabilities that are sophisticated to those of competitors (QuickMBA, 2010).
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.
As society grows and evolves, technological advancements and innovations continue to develop and consistently change different aspects of our society. For an organization, understanding how to manage these innovations is essential for their proper utilization and implementation. With technological advancements and innovations constantly emerging, it is important for an organization to stay aware of which new technological innovations can help them be successful. Organizations are always looking to set themselves apart from competition through innovation.
1997). By reviewing the literature on learning and innovation, we try to answer the following