Current Innovative Management Processes In Organization Business Essay

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Innovation means to make something better in the form of a product. Innovation is very different from Invention. Invention is to create a new product or idea whereas innovation is to build on that idea. West (1994) Innovation is displayed at every stage or an organizations growth. Eg, research, design, marketing and manufacturing. It is seen that successful businesses have the best innovators. Innovation is imbibed in their culture. Fullan (2001) a leader should not take upon a huge amount of Innovations as there would be no time for performing them. Innovation is about all about commitment. Axel (1999) if an organization does not keep up with innovation there is a risk of it being overtaken by rivals.

Executive summary

Jack Welch has been the chairman for GE over two decades. Within 19 years of staying in business GE made a turnover of $467billion. Jack Welch started as a junior engineer in GE but wanted to quit soon after because of the beauracracy. However Reuben Gutoff convinced Jack to stay back and assured him he would not get into the red tape. Welch felt he was creative and this made GE rise to the position it is today. Management say that Welch was a good communicator, strategist and highly competitive.

2.0 Current innovative management processes in organization

Singh (2011) Innovation involves the entire process from invention to development, sales etc.

Innovation is brought through by change; it can be a triumphant application in technology or a change in behaviour or process. Koch (1998) people think innovation is difficult but with the use of 80/20 principle innovating is effortless and enjoyable. Eg 80% of the benefit of the product can come from 20% of the cost. Therefore, if innovation is brought upon there is reduction in variation and increase turnover. West (1994) Creativity in any department can make difference for an organization to be victorious or fruitless.

According to Axel (1999) organizations have three types of innovation that is product innovation, process innovation and market innovation.

Product innovation deals with constant innovation of the product to generate revenues.

Process innovation deals with improving quality and reducing cost.

Market innovation deals with developing target markets and choosing the finest way they should be served. Market segmentation is a very important part of market innovation it is all about dividing the market into smaller components to increase profits.


An example of a simple business model by Marc Sniukas.

1. Setting the Stage

The first step in the business model innovation process is clearly defined goals and vision. In the planning stage everyone's acceptance is required. Esablishing a common view is very important as well. Management thinks that everyone is on par with agreement of the current business model but rarely it is true

2. Discovery

The second step in business model innovation consists of findings of the current situation, customer's needs and challenges. It also pays to look at what the rivals are upto and what trends would have an impact on the organizations business. Keeping an eye on competitors Business models may help as learning to tool to strategize and it may have an impact. Looking internally in the organization's assets and resources can put light on the control the organization has.

3. Development and Design

The development and design stage is all about describing the business model in terms

Of customer profiles and buying strategy. Once ideas are put in place there is an

evaluation and this would guide the way to a business portfolio.

4. Conversion

The fourth step is about setting ideas into practice and transforming them into innovations in the marketplace. The objective of this is to test the ideas within a limited scope to check what the customer's preferences are and if they are willing to spend. This helps for products that won't work as they can be removed out of the market

5. Commercialization

the fifth step is where the business model innovations that is victorious is tested and tweaked to make them perform, and scale them up. These innovations are put into practice across the whole organization using an appropriate change strategy. Sometimes new business models can be put into operation in the existing organization; sometimes there is a necessity to launch a new venture.

Business Model Innovation is imperative to a business organization. Bringing any organization change a business model can facilitate in bringing success.

3.0 Leading others to embrace innovation and change

According to Deming's (1986) a climate should be created for innovation. Singh (2011) Innovation is every business focal point. There are sources of innovation that occur inside the organization both internal and external.

Within the company

Unexpected occurrences


Process needs

Industry and market changes

Outside the company

Demographic changes

Changes in perception

New knowledge

Singh (2011) The innovation management process involves

Searching for opportunities and threats, looking for technical opportunities etc

Selecting how the business could develop and analyzing the risk.

Implementing a change or product in the business

Acquiring solutions to problems.

Executing the idea into the market.

Launching to start the primary implementation.

Sustaining for long term use.

There are several models that a leader could use in the organization to bring about the change. They can bring on their own ideas. According to Covey (2008) Organizational change starts with one person. What has to be taken into consideration is the magnitude of change, the rate which the change takes place, the challenge, implications etc. There will be resistance with change, and the leader has to ensure that this does not affect and go against his goals. Fullan (2001) Models such as

Kotters leading change

This model speaks about developing a vision and strategy, creating an urgency, communication a vision, generating short term wins etc.


Hamels model talks about creating a coalition, picking up targets, win small, neutralizing situations.

Using Kaizens process for change. Goncalves (2007)

This process strives towards perfection by elimination of waste. It uses tools and a methodology for making change. It speaks about analyzing the problem and then generating the solutions for them.

Singh (2011) The main skills involved in innovation are association, questioning and minute observation of details.

4.0 Relevance of leadership within the organization

Clark (1996) a leader is someone who has the power to keep his staff calm during crisis. The leader is required at every level of the process because every product has to imbibed with quality. Once alterations are made a climate has to be set and the leader has to make sure the there is proper detailing and maintenance of the work flow ensuring proper delivery of quality after the plan has been put into action leaders are required to multiply the effort.

According to Clark (1996)The leader has two roles that are facing inward the organization and outward the organization.

Internal organization to glance into the workplace monitoring their staff having a look how external demands would influence their staff.

External organization is conversing with stakeholders, suppliers, customers, public etc. Speaking about the quality strategy getting customers involved in product design etc. Also known as (VOC) voice of customer.

5.0 Showing stakeholders of an organization the benefits of creative and innovative ideas

Goncalves (2007) There should be some kind of training be given to stakeholders to improve dealings between people, maintenance and operations.

TPM- Total Productive Manufacturing. Goncalves(2007)

TPM is a manufacturing led program that endorses a joint approach among stakeholders inside the organization amid operations and maintenance, the pillars of TPM include maintenance of three soughts such as quality, autonomous and planned training and kaizen.

WCM- World class manufacturing. Goncalves(2007)

WCM is a cross functional application that takes meets customer's requirements. Organisations that implement the WCM will achieve better results and success.

K Singh (2011) There are four dimensions of innovation they are known as the '4Ps' it takes into account Product, process, position and paradigm innovation.

Product innovation is the changes that are brought about in the products which businesses offer.

Process innovation alters the way they are produced and delivered.

Position innovation changes the situation in which the service is introduced.

Paradigm innovation alters the mental styles which frame what an organization does.

Singh (2011) the elements that jeopardize innovation are

Poor leadership

Poor goal setting

Poor knowledge

Poor monitoring

Poor communication etc.