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Creative and Innovation Management

Benefits & Limitations to Company and Stakeholders

Introduction To Innovation Management

In a World that changes every two seconds, it is imperative that companies have to constantly dazzle with new ideas that improves their identity frequently. As far as FMCG and personal goods are concerned, their upbringings and updations from time to time will help building customers' faith towards company's offerings. Companies always find themselves confuse between creativity and innovation, where the two aspects are distinct to each other(Martins and Terblanche, 2003). The main thread of difference is the focus. In this report significance of creative and innovative management is being discussed in context to renowned mobile phone companies Apple and Google Inc, and also their individual competitve advanatage over others is being covered. It is observed that in daily managment practice that organizations often chase creativity but what they really need to pursue is innovation indeed.

TASK 1

1.1 Evaluation of current creative and innovative management process in APPLE Inc:

Since inception Apple has transformed itself from a mere computer manufacturer to a succefful all-rounder brand operating its product range from Imac computers, lucrative Mac notebooks to Ipod and Iphones. Its innovation strategy has lead to positive attitude towards sustainability and growth. Year by year it is extending its market internationally and ploughing high returns (Adams, Bessant and Phelps, 2006). In 2001, it emerged with breathtaking product being ipod mp3 player featured with innvovative click wheel. Two years thereafter, in 2003, it brought itunes app successfully running in USA and eventually international. The biggest hit was when Iphones were introduced in 2007, which reduced the customer base of already established mobile phone company Nokia. Nokis's Symbian O/S was not supportive for touch screen phones whereas Iphone has been emerged only for touch screen users build with dazzling application stores being itunes, online shop, navigation and GPS features.

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Apple created history when in 2000 its share price of 12 dollars to more than 200 dollars in 2010.However such innovation was not a overnight effort (Arewa, 2014). One of the marketting director associated with Apple Plc betweeen 1987 and 1997 regarded Apple's culture as diseased and dysfunctional at that time. Though employees at Apple were skilled and bright, yet they resisted to share any knowledge and new ideas because of Apple's culture which inhibited effective collaboration. Employees at Apple were found most of the time indulged in daily infighting. Since then it endeavored efforts to overcome such situation.

1.2 Measures to lead others to positively embrace innovation and change:

According to the famous marketting analyst Luecke, organizations can enhance creativity and innovation by under mentioned methods which Apple Inc has successfully adopted to lead a better life of the organization:

1) Acceptance of Risk Taking: As a propounded fundamental assumption, in order to lead high returns, high risks have to be taken by business leaders. Apple Inc emerged as a pioneer in offering touch screen phones in 2007, which substantially devasted customer base of already established brand NOKIA. As there was no established market for touch screen phones, Apple took high risk in introducing lucrative touch screen phones builded with amazing apps.

2) Welcoming new ideas and ways of doing things: Welcoming ideas of executives in strategic planning serve as a motivational influence to them as they feel themselves important and not isolated.

3) Rewarding Innovators: Often said that rewarding executives for their efforts is better than awarding. Mere recognition in business ceremonies will not motivate them highly as organizations often encounter conflict of personal interest with that of organizational interest (Scott, 2006). Such personal interest occurs in form of expecting promotions, incentive payments might be performance linked or otherwise, share in profits etc.

1.3 Assessing influence of vision and mission on generation of creative and innovative management process in organization:

Numerous marketting researchers have analyzed that fostering creativity and innovation is the sole responsibility of organizational leadership and mark of successful leadership. Mere ability to have creative ideas is not the only path nor even a sufficient path to lead success. Creativity and innovation give rise to creative conflict (Mumford, 2000). There are two ways to solve such conflict, one is to forsake vision and forgo creativity or innovation while the second mehtod is to syncronize present organizational reality with vision through efforts to place concern on difficulties rather than problems.

Vision is centralized on conforming strategic planning with organizational goals. Strategic planning is based ion vision which begins with and place heavy reliance on intitution and visualization. Organization that do not articulate their vision functions assiduously and cannot effectively realize either vision, mission and eventually their strategy. A vision statement has to be realistic and credible, well shared and easily understood among those developing it. It must be responsive to change and not rigid in this dynamic environment (Kandampully, 2002). Unless it inspires the group to achieve its mission, it cannot lead to generation of creative ideas and innovation.

1.4 Analytical tools to identify potential creative and innovative manangement ideas:

There have been various established analytical tools to generate creative and management ideas described below:

Lateral Thinking: Lateral thinking aims to solve problems by illogical methods. Lateral thinking involves movement value of statements and ideas. Use of this approach will help person to create new ideas from one known ideas (Kratzer and et.al., 2004). It is a step by step method of creative thinking with prescribed techniques that can be used consciously. It is applied for changing concepts and perceptions.

SWOT analysis: SWOT analysis is conducted to gain an insight about the organization. When internal strength and weaknesses are identified, opportunities and threats associated with the organization can be known. As a matter of creative and innovative management, SWOT analysis will help the enterprise in supporting enterprise in making decisions relating to enter into a new product line or making modifications in the current product offerrings (Shen, Tan and Xie, 2000). When potential threats from competitiors are identified in form already established market by them in a particular product line, it will help them resisting from pursuing such activities on whcih competitors already has control. If company perceives its product differentiated from other brands, it may make plans to make constant updation in its attributes and design so as to create entry barriers for new establishments.

PEST analysis: Transforming creative and innovative ideas into real actions cannot be made done unless they are developed keeping in view the related aspects which may act as stringent to their development. PEST is the sum of four below mentioned factors which cannot be overlooked while developing strategies:

Politics: Operating locally or globally, will encounter government intervention and to such extent may be affected. As a matter of regulatory requirement, all related and governing tax laws are to be complied with so as to prevent organizations from making defaults and thereby pay fines and penalities (McAdam and McClelland, 2002.) Companies often choose locations for innovative operations in the countries where tax laws and related taxes are generally low.

Eonomics: Business ideas are developed considering economic environmental ifluences to the organization. Such influences occur in form of interest rates, exchange rates, inflation rates etc. If these are overlooked while developing ideas, results may not show positive signs of sustainability.

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Social: Societal influences varies from region to region. Local beliefs, cultural trends of people, purchasing power, etc have to be considered while shaping ideas (Bassett‐Jones, , 2005). Vodafone has been operating well in the European market since inception. However with the emergence of O2, it lost customers across three of its four main European markets – Germany, Italy and the UK – with its British operation seeing 159,000 defect. It now has 18.6 million UK customers, making it number two behind O2. UK customers prefer O2 as their operating system inn touch screen phones.

Technological concerns: Prospective business ideas especially in electronics industry, need a strong technological back up to shape their ideas into reality. A best example can be given that of Nokia-Microsoft Startegic Alliance which helped Nokia to discover new ways to make growth. Nokia's own operating system Symbian could not serve technological needs of touch screen and smart phone user. As a result in 2007, it lost most of its market to Apple Inc when Apple emerged with its lucaratively designed iphones built with amazing apps being online music stores, itunes, mobile banking and other utilities (Cormican and O’Sullivan, 2004).Hence as a technological upbringing, it made a strategic alliance with Microsoft and discovered Lumia series with windows as their new operating system.

1.5 Assessing risks and benefits of creative and innovative management ideas:

Not every risk has the same severity or the same probability of occurrence. Based on probability of occurrence risks have been identified as :

Low Probability- Low Impact Risks: Few risks in innovative and creativity management have a low likeliness to occur and have low potential impact. For such risks, concerns adapt corrective measures rather than taking corrective measures as spending time and money on such risks will not be cost effective.

Low Probability-High Impact: Business leaders identify risks which have relatively low probability and high potential impact while funding a proposed business idea. As a measure to avert them, companies take insurance cover to mitigate them (Hidalgo and Albors, 2008). As sometimes, business leaders have no control to prevent them from occuring, taking insurance cover will help them to rediscover themselves. Risks like occuring natural disasters being earthquake, flood, death of employee due to concern's fault when he is in operations are few examples of such risks.

High Probability -Low Impact: Business concerrns regard such risks as being inherent in pursuing business objectives. Hence they are controllable to the extent by effecttive planning. Risks of bad debts, employee facing health issues just before important deadline of jobs assigned. These risks are often referred as Murphy's law, which says that what can go wrong will go wrong (Perry, 2006). If forecasts and effective planning is done such risks can be reduced to minimum.

High Probability-High Impact: These risks have high probability of occurrence and can endeavour high potential impact. Overlooking such risks can even hit going concern assumption of the company. These risks are too costly to insure and cannot easily be averted. Such risks can be reduced by placing keen concern on competitiors strategies and based on them, developing one's own strategies.

1.6 Significance of change model to support implementation of creative and innoavtive management ideas:

Various models have been developed support implementation of innovatibe and creative ideas, however in this report two of them is being discussed below:

Kotter's 8 step change model: Kotter's 8 step model covers follwing aspects:

Creating urgency: Creatting urgency will require to develop a sense of change needed urgently. It will involve identifying potential threats through SWOT analysis and ascertain opportunities for what can be done in future.

Form a powerful condition: This step is focussed on convincing people that change is necessary. Identifying true leaders and stakeholders in the organization will help bringing a team who can generate innovative and creative ideas (Berthon and et.al., 2007). Unless a good mix of team members is assured work areas under implementation cannot be improved.

Creating a vision for change: When business ideas are being developed they are stated in vision and mission statements. Unless vision is not laid and articulated, strategic planning cannot be developed.

Communicating vision: To improve overall operational performance, it is necessary that executive staff are conscious about company's vision and mission so that they do not found decisions taken by top management being strange in nature.

Remove obstacles: Removing obstacles aims to release barriers in strategy implementation of organization(De Dreuand West, 2001).

Create short term wins: Organizations must be mindful about the fact that a little success everyday will add to big results someday. So placing concern on achieving short term objectives will develop means to achieve long run growth. Projects on which success can be easily attained are to be taken no matter the amount of profits they plough, as chossing early targets for completion may prove expensive whose costs may exceed its benefits and eventually erode funds.

Build on the change: When the change brought positive results, factors which contributed to its success must be consider in future planning of such projects.

Anchoring changes in the corporate culture: If change is adopted, it must be prevailing in every aspect of the organization. It is pertinent for the organization not to loose the staff and members which contributed to the success of change, otherwise company may end up reaching where it was started.

IDEAL Model

This model serve as a process improvement and defect reduction methodology. It covers below mentioned aspects:

Initiating: It involves establishing improvement infrastructure where the roles and responsibilities are defined and resources are allocated. Once the need of urgency is established, sponsorship sources are identified and resources are appropriately allocated.

Diagnosing: In this approach,current operational practices are being assessed and linked to potential improvement opportunities (Baregheh, Rowley and Sambrook,2009).

Establishing: This approach will involve establishing means to achieve what is planned and perceived. Critical activities are being prioritized and operational plans are laid based on such activities.

Acting: Once the plan is developed, actual actions are to be taken to implementation. Activities are pursued based on standards stated in plans.

Learning: It serves as a control mechanism to avoid mistakes in future. Mistakes in future will be reduced to minimum by learning from experiences and improving ability to perform in future.

TASK 2

2.1 Limitations and Benefits of Innovation to various stakeholders:

In order to maximize the wealth of stakeholders mainly the capial contributors associated with companies operating in mobile phone sector, developing innovative strategies will involve assessing responses of various stakeholders. Unless they are informed about future strategic operations of the concern, they will resist themselves in providing additional funds.

Limitations of innovation is being discussed below:

  1. Innovative ideas promoted to be developed must be feasible. Enterprise must not bring innovation for differentiating themselves from other brands, otherwise it may even loose sustainability signs.
  2. Raising debt finance for funding innoavtion projects may not prove cost effecive as such financing has to be repaid in certain period. Where the expected period of revenue from the project to be derived is not ascertainable, chosing debt finance may even reduce profits available for existing shareholders.

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Exisiting employee of the concern may not be skilled technically to implement the proposed innovative strategy and may not show keen interest in pursuing such objectives. Regulatory requirement may act as a bar in smooth functioning of the organization. It will involve registering copy right and patents for the proposed innovation (Bilton, 2007).

Benefits of innovative management to stakeholders:

For software companies like Google Inc, sustainability cannot be attained unless constant technological updations and upbringings are made in the current offerrings which can only be made possible when innoavtion is desired.

  1. Innovation also helps to gain competitive advantage which eventually leads to increase of firm's market capitalization.
  2. It creates a sense of excitment among employees at work place so that monotony is not created by performing repeated operations.

2.2 Communicating innovative ideas to stakeholders of Google Inc:

As a matter of keeping stakeholders faith in the concern, top management recognizes the need of keeping stakeholders conscious and aware about strategic plans of the organization. Such plans are made known to stakeholders by providing material information about them at company's website. Also as a matter of reporting requirement on the part of business leaders, board of directors in their director's report as an important content in the annual report, discloses strategic plans for future operations in order to inform the stakeholder group mainly the capital contributors about where their money would be invested and how adequate the returns will be available for distribution (Cooke, and Lazzeretti, 2008).

Shareholders and debt lenders funding for proposed business idea are also made aware about the ideas in general meetings of the company for passing resolution on such plan. As regards employee's awareness about the company's new mission and strategy, official announcements are made while addressing seminars for their recommendation or distributing brochures or manual of upcoming plans. On overall basis, stakeholders associated with the organization are made aware through statutory reporting requirement which is served in form of publishing annual reports.

2.3 Establishment of goals for implementing creative and innovative management idea in Google:

Stakeholders play a vital role in accomplishing organizational goal as they are the key players of the organization. This organisation involves in fulfilling all responsibilities towards its stakeholders so that to satisfy them in order to accomplish business goals. There are many stakeholders like customers who buy the products and services being produces by this company, suppliers, government, shareholders who are the owner of the company and the local communities etc. By taking the feedback from all this stakeholders this business organization can make effective business strategies that help to accomplish its business objectives. By taking feedbacks from customers’ manager of this company can get to know their choices and a preference that makes the business organisation able to produce the products accordingly (Drejer, 2002).

So that the corporation can increase its profitability and market share and by taking feedbacks from their employees the managers of this organisation can come to know their requirements so that they can work more effectively towards attaining corporate objectives. It helps the manager of this organisation to set its objectives and goals as per the desires and requirements of their stakeholders it helps them to make effective planning for their business. The ultimate aim of the business is to satisfy their customers by providing them quality services and to satisfy other stakeholders and to increase its profitability and market share of the organisation.

2.4 Assessing the barriers to the implementation of a creative and innovative and management idea in Google:

Barriers to transform proposed business idea into reality will need various aspects to be assessed for laying operational plans. Business idea to be implemented will involve mainly identifying resource requirement which basically evolve in form of financial side of idea proposed, man power requirement, and designing a prototype. It will evolve on part of business leaders to identify whether the proposed business idea will be funded by debt or equity capital. Cost of respective finance has to be identified and matched against benefits to be derived from the project. It may happen that debt finance matures before the project is disposed off, in that case procuring debt finance may not be feasible as withdrawing capital at early stage may not be possible. Innovatibe idea proposed may demand recruitment of additional technical staff which company may not have presently (Hemlin, Allwood, and Martin, , 2004). If the required technical staff is not available then idea is not worth implementing. Apart from above mentioned barriers, Google will also encounter statutory requirement to be abided for preventing government intervention. Company will need to be acquaint about the regulatory and goverrning laws which deals with obtaining required registration, certificate of operations and other statutory requirements.

2.5 Overcoming the barriers to effective innovation

There are instances when company faces changes due to innovation and change. This may variate from very small to big barrier and challenge. To workout with these roadblocks, Google initiates a plan for change implementation:

Planning: A step by step planning process need to be initiate for meeting out the change and challenge process. In order to reap more benefits, there is need to plan for assigning roles and responsibilities to everyone so that in downtime or difficulties regular work process can be managed.

Lack Of Consensus: When the changes implications are made, one should be prepared to get with the board with the corporate changes, in order to face the barriers. However, it is at the part of top management to meet out the changes. Thus, it is crucial that everyone should be present at the board meetin (Henry, 2001).

Communication: If there is no communication, then spreading of rumors will be supplied. It is at the part of Google that whenever the company plans such changes and innovation scheme, they uses a medium of communication with each and every employee of its organization.

Employee resistances: In Google, the specialty of manpower is that they resist change. They foster a comfort zone with their working in an organization. However, there is possibility when employee become unable to foster change because of personal consequences. In that case, it is at part of an organization to provide training with new responsibilities to the employees.

2.6 Surety of strategy plan for overcoming barriers that ensures achievement of innovative change

Strategy plan is made in the organisation to bring innovative changes in the business activities. It brings innovative feature in the products and services being provided by the company to its customers. It includes development of new innovative skills in their workforce so that they can provide quality services to their customers. The innovative changes are being made in the organisation can be known by getting more response from the customers by increasing their sales. Strategic plans are made in the organisation to run its business activities effectively in the market and to satisfy its customers (Shavinina, 2003). The surety of innovative changes are being made in the organisation can be seen through increasing sales and getting good reviews from their customers.

2.7 Strategy plan for overcoming barriers to stakeholders in Google

The tactical plan for overcoming barriers to stakeholders in Google can be seen as under:

Worksheet update using power interest grid- It helps the manager to find out the responsibility of each stakeholders in the organisation. And set the priority accordingly. As customers and suppliers are come on the first priority as it involves in the business activities on the regular basis (Castro D., 2011.).

Approach to stakeholder management- It manages the different stakeholders in the organisation as per their responsibility. So to build good relationship with their stakeholders as it helps them to increase business profitability and increases their market share.

Identifies actions and communications- It communicate properly with their stakeholders to make them satisfied.

CONCLUSION

Based on discussions held and analysis made, it can be concluded that growth cannot be attained in software companies unless they put consisistent efforts in making innovative and creative plans.All aspects relating to innovative management was being discussed in context to Apple and Google Plc. This Instant Assignment Help UAE report also addressed limitations and benefits of innovative management to various stakeholders. At last report dealt with identifying barriers covering identfying sources of funds available, to proposed funds, governent interventions to implement proposed innovative management strategy.

REFERENCES

  • Martins, E. C and Terblanche, F., 2003. Building organisational culture that stimulates creativity and innovation. European journal of innovation management.
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  • Shen, X. X., Tan, K. C and Xie, M., 2000. An integrated approach to innovative product development using Kano’s model and QFD. European journal of innovation management.
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  • Perry, J. E., 2006. Social yet creative: The role of social relationships in facilitating individual creativity. Academy of Management Journal.
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  • De Dreu, C. K and West, M. A., 2001. Minority dissent and team innovation: the importance of participation in decision making. Journal of applied Psychology.
 

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