Managing Innovation and Change for Strategic Advantage

New Zealand Diploma in Business (Management and leadership)

Paper- managing innovation and change for strategic advantage (603)

Executive summary

This advisory report is based on the changing landscape of business organization and how different business level of innovation and organizational change affects the business internally and externally. Every business using business using different change components and different process model are related to the complexity of change and environmental determinism.

Introduction

This report is based on the innovation and change theories and models which affect the business culture and its planning. In the present scenario, how large business organization implements the continuous change process and how the evaluation of key approaches to developing the innovative capabilities of business do. I will recommend some change models which can be helpful for companies to build innovation and develop the strategies. Last but not least, the conclusion will also be identified with the key points of this report and what are the aspects of change affect the organization gradually.

Business issues- in present scenario companies face challenges which put bad impact on the outcome of the organization:

In terms of innovation and change, Cash borrowing and resources management is the biggest issue in New Zealand and company got a wide range of profit than it can look financial statements, as well as company income is going low then it would not be able to become a part of the business for a long time. Mostly small scale business owners are failing to more focus on the high amount of money in terms of money. Cash flow challenges come into the companies by some climate changes and small-scale business.                  (The Discipline of innovation , 2018)

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In terms of innovation and change, Raise the level of selection and competition is the second bigger issue in this global world which affect the business internally and stay in business is very hard for the businessman. To grasp expertise is too expensive because the Company has to pay them according to their experience level. However, if we see every product or service is competing in the market and how a company can put their focus on one item and spent a lot amount of money to become best in front of their competitors. (Forbes, 2018)

Industry trends

Collaboration- to do work in a group is very important because with this way we can easily grasp experience and understand each other emotions and feelings as well as get understanding about a particular task. It is fruitful for employees to get knowledge and practices about any particular task and they can show their inputs which will give appreciation to them. Last but not least, companies are more focusing on their consumer’s wants and requirement and also provide them loyalty. Therefore the company needs to more focus on the internal and external environment of business.

Renaissance of creativity- every business is trying to find some new elements for their company process so that can innovate their business. The company also want to get some creative work and update company procedure so that they can earn more profit and grow the level of their business. This is the best idea to incorporate frequent creative tasks to update the schedule and also incline the capability level. (DXC.technology)

Forms and levels of innovation

Incremental innovation- this level means to give support to the company to stay with the competitors to compete with them in terms of product and services as well as how they are using their capabilities and strategies or innovation models. During this stage, the company can exchange their old products into new products and bring some improvements to aware the customers towards new sort of items. For instance, coca-cola like now coca cola introduces coke with cheery, coke with lime and coke with life has enabled 130 years to stay old brand into the relevant but come into emerging and provide something new to the customers over the period.

Breakout innovation- as the name of innovation we can say that some sort of development in which company break out from the team and leading with the current classification. This sort of innovation requires some changes inside the company to redesign the product again. For example, last year californium university implemented the health heart study managers of the study want to staff members as a study approach which is occurred from old disease and they do cooperating with other business to make effective research which can empower to do work together with the individual patients. This study also findings some information which is relevant to improving the lives of patients.

Breakthrough innovation- this innovation brings the imperative change in the market and makes some solutions for a long period. This involves new ways of innovation and innovation models and to serve the customer in different industries with new methods. Breakthrough innovation is look likes social but it also creates real progress in the world. For example, dollar shave club gives a subscription on the based of company which deliver to the individuals during four weeks as a few guess per dollar a month. If we rethink about the surrounding of this model it proved to be profitable. As a survey now this club got $1 billion members (Constant contact)

Innovation Approaches

A contemporary approach to leadership- this theory is a current decent addition to the literature, the rest of the research has been conducted by contingency theories as combined. This theory is explaining the difference between transactional and transformational leaders. Therefore, staff members working for their transformation managers and they begin an emphasis on the company well being but best for them as an individual staff member. However, transactional leaders ensure that employees show their right type of behavior because leaders provide exchange resources to them in terms of improvement. (Nesta, 2018)

Leader-member exchange theory

This theory illustrates the sort of relationship behavior with their followers and key to understanding how leaders influence, as well as leaders, have different sort of relationship with their employees and leaders have more attention to access with the more resources. This theory also fails to explain some criticism like how this theory exchanges the particular high-quality exchanges. Apart from this, this theory also got strength due to its exceptional theory for leadership and more concentrate on the relationship between leader and their subordinates. For example, when any new person joins the company, the leader asses the talent and abilities of the person and also give some chances to show their hidden abilities. (Mindtools, 2018)

Change model 

Lewin’s change model- according to lewins opinion this theory refers to three stages of change and these all levels are more complicated. It was developed by 1947 by Kurt Lewin but it still relevant. He was saying that modern change models are based on these three stages. These stages are explained below: Unfreezing, change and refreezing.

Unfreezing- this is a most important stage of this model in which an organization needs to understand the actual concept of change in their company and why we need it. Therefore they will ready to come out from the current comfort zone and bring something new.

Change- this stage will occur when we make the reaction to a change and this step is very hard for the company because company employees are unsure about the change and way of work.

Refreezing- this step explains the stability of the process once the change has been identified and accepted by the company to do work with new norms. For example, people are thinking there is no time for this stage and it just like criticism model.

For example, the oil company got three offices in different locations in Los Angeles and San Francisco. After the decision made company consolidate in should be in San Francisco as well as during the stage of refreezing they transfer their 150 employees to eliminate the duplicity and introduce a new chain of command.

McKinsey 7-S model also explains the relation between different seven areas of the organization. McKinsey model was divided into the soft areas and hard areas. In hard areas strategy, structure and systems are there but in soft areas style, staff, skills and shared values are included.

Strategy: Strategy can be explained as a plan which is developed by the organization for achieving the competitive advantage so that the organization can compete in the market.

Structure: Structure can be explained as a design that an organization can arrange according to the plan so that they can compete in the market.

Systems: Systems can be explained as a series of techniques that can be used for daily activities in the organization.

Skills: Skills are the abilities or proficiency in a particular area of employees.

Staff: Staff is a group of people who work for an organization.

Style: Style refers to the manner or a way of doing something which represents the company.

Shared Values: Shared values are the strategy for doing management or in other words these are the authoritative qualities that are typically created by the association’s administration and after that adopted by other staff members of the association. In a nutshell, shared values are at the core of McKinsey 7s model.

Support for innovation- lewin’s model helpful for company to introduce the change problems and develop the vision for that particular organisation to simplify the decisions and motivate the employees so that they can go with the change. However, Mckinsey model supportive for the company in terms of relevant information in the 7 areas of business which identified in the model and monitor the performance according to the market value needs that can be changed in future. (Smart insights , 2018)

Conclusion

In present scenario, all companies want to bring the change in their field and also utilise some different aspect to get success but companies also using different approaches of innovation, change models and also change and innovation theories to complete their task within time and also critically analyse the organisation outcome. The models are also helpful for organisation to adopt the innovation with effective manner and establish the appropriate change to get success in business trends.

References

• Constant contact. (n.d.). Retrieved December Monday, 2018, from https://techblog.constantcontact.com/software-development/types-of-innovation/.
• DXC.technology. (n.d.). Retrieved December Saturday, 2018, from http://www.dxc.technology/innovation/insights/143625-6_technology_trends_for_2018_innovation_focused_on_your_digital_journey.
• Forbes. (2018, December Tuesday). Retrieved December Tuesday, 2018, from https://www.forbes.com/sites/rogertrapp/2017/04/10/why-business-leaders-continue-to-struggle-with-innovation/#3343e2d242de.
• Mindtools. (2018). Retrieved december 2018, from https://www.mindtools.com/pages/article/leader-member-exchange.htm.
• Nesta. (2018). Retrieved November Saturday, 2018, from https://www.nesta.org.uk/blog/landscape-of-innovation-approaches/.
• Smart insights . (2018). Retrieved December Tuesday, 2018, from https://www.smartinsights.com/marketing-planning/marketing-models/mckinsey-7s-model/.
• The Discipline of innovation . (2018). Retrieved November Monday , 2018, from http://timkastelle.org/blog/2013/01/four-key-issues-in-innovation-management/.